Document:

EX-4.1

Exhibit 4.1

SECTION 382 RIGHTS AGREEMENT

between

D.R. HORTON, INC.

and

AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC,

as Rights Agent

Dated as of August 19, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Section 1 Certain Definitions
	 	 	1	 
	Section 2 Appointment of the Rights Agent
	 	 	5	 
	Section 3 Issuance of Rights Certificates
	 	 	6	 
	Section 4 Form of Rights Certificates
	 	 	8	 
	Section 5 Countersignature and Registration
	 	 	8	 
	Section 6 Transfer, Split-Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost

or Stolen Rights Certificates
	9	 
	Section 7 Exercise of Rights; Purchase Price; Expiration Date of Rights
	 	 	9	 
	Section 8 Cancellation and Destruction of Rights Certificates
	 	 	11	 
	Section 9 Company Covenants Concerning Securities and Rights
	 	 	11	 
	Section 10 Record Date
	 	 	13	 
	Section 11 Adjustment of Purchase Price, Number and Kind of Securities or Number
of Rights
	 	 	13	 
	Section 12 Certificate of Adjusted Purchase Price or Number of Shares
	 	 	20	 
	Section 13 Fractional Rights and Fractional Shares
	 	 	21	 
	Section 14 Rights of Action
	 	 	22	 
	Section 15 Agreement of Rights Holders
	 	 	23	 
	Section 16 Rights Certificate Holder Not Deemed a Stockholder
	 	 	23	 
	Section 17 Concerning the Rights Agent
	 	 	23	 
	Section 18 Merger, Consolidation or Change of Name of the Rights Agent
	 	 	24	 
	Section 19 Duties of the Rights Agent
	 	 	25	 
	Section 20 Change of the Rights Agent
	 	 	27	 
	Section 21 Issuance of New Rights Certificates
	 	 	28	 
	Section 22 Redemption
	 	 	28	 
	Section 23 Exchange
	 	 	29	 
	Section 24 Notice of Certain Events
	 	 	30	 
	Section 25 Notices
	 	 	30	 
	Section 26 Supplements and Amendments
	 	 	31	 
	Section 27 Successors
	 	 	32	 
	Section 28 Determinations and Actions by the Board
	 	 	32	 
	Section 29 Benefits of this Agreement
	 	 	32	 
	Section 30 Severability
	 	 	32	 
	Section 31 Governing Law
	 	 	33	 
	Section 32 Counterparts; Facsimiles and PDFs
	 	 	33	 
	Section 33 Descriptive Headings
	 	 	33	 

EXHIBITS

	 	 	 
	Exhibit A:

	 	Form of Certificate of Designation, Preferences and Rights of
Series A Junior Participating Preferred Stock
	Exhibit B:

	 	Form of Rights Certificate
	Exhibit C:

	 	Summary of Rights

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SECTION 382 RIGHTS AGREEMENT

     SECTION 382 RIGHTS AGREEMENT, dated as of August 19, 2009 (the “Agreement”), between
D.R. Horton, Inc., a Delaware corporation (the “Company”), and American Stock Transfer &
Trust Company, LLC (the “Rights Agent”).

W I
T N E S S E T H

     WHEREAS, on August 19, 2009 (the “Rights Dividend Declaration Date”), the Board (as
hereinafter defined) authorized and declared a dividend distribution of one right (a
“Right”) for each share of common stock, par value $0.01 per share, of the Company (the
“Common Stock”) outstanding at the Close of Business (as hereinafter defined) on August 31,
2009 (the “Record Date”), each Right initially representing the right to purchase one
ten-thousandth of a share of Preferred Stock (as hereinafter defined) of the Company, upon the
terms and subject to the conditions hereinafter set forth, and further authorized and directed the
issuance of one Right (subject to adjustment as provided herein) with respect to each share of
Common Stock issued or delivered by the Company after the Record Date but prior to the earlier of
the Distribution Date (as hereinafter defined) and the Expiration Date (as hereinafter defined) or
as provided in Section 21 hereof.

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

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

          (a) “4.9% Stockholder” shall mean a Person (other than the Company, any Related Person
or any Exempt Person) who beneficially owns 4.9% or more of the Company’s then-outstanding Common
Stock.

          (b) “Acquiring Person” shall mean any Person (other than the Company, any Related
Person or any Exempt Person) that is or has become a 4.9% Stockholder, provided,
however, that any Person who would otherwise qualify as an Acquiring Person upon the
execution of this Agreement or any Person who has ceased to be an Exempt Person as of a particular
date by determination of the Board will not be deemed to be an “Acquiring Person” for any purpose
of this Agreement on and after such date unless and until such Person acquires Beneficial Ownership
of one additional share of Common Stock while the Beneficial Owner of 4.9% of more of the Company’s
then-outstanding Common Stock, and provided, also, that a Person will not be deemed
to have become an Acquiring Person solely as a result of (i) a reduction in the number of shares of
Common Stock outstanding, (ii) the exercise of any options, warrants, rights or similar interests
(including restricted stock) granted by the Company to its directors, officers and employees,
(iii) any unilateral grant of any security by the Company, or (iv) an Exempt Transaction, unless
and until such Person acquires Beneficial Ownership of one additional share of Common Stock while
the Beneficial Owner of 4.9% of more of the Company’s then-outstanding Common Stock. The Board
shall not be required to make any determination with respect to a potential Acquiring Person,
including whether the potential Acquiring Person is an Exempt Person or whether the change of
Beneficial Ownership of the

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potential Acquiring Person has resulted from an Exempt Transaction, until five Business Days
after the date on which all Board members first received actual notice of the change of Beneficial
Ownership at issue. Notwithstanding the foregoing, the Board may, in its sole discretion,
determine that any Person shall not be deemed to be an “Acquiring Person” for any purposes of this
Agreement.

          (c) “Affiliate” and “Associate” shall have the respective meanings ascribed to
such terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act as in effect
on the date of this Agreement, and to the extent not included within the foregoing clause of this
Section 1(c), shall also include, with respect to any Person, any other Person (other than a
Related Person or an Exempt Person) whose shares of Common Stock would be deemed constructively
owned by such first Person, owned by a single “entity” (as defined in Section 1.382-3(a)(1) of the
Treasury Regulations) or otherwise aggregated with shares owned by such first Person pursuant to
the provisions of Section 382 of the Code, or any successor provision or replacement provision, and
the Treasury Regulations thereunder, provided, however, that a Person shall not be
deemed to be the Affiliate or Associate of another Person solely because either or both Persons are
or were directors of the Company.

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

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

          (f) A Person shall be deemed the “Beneficial Owner” of, shall be deemed to have
“Beneficial Ownership” of and shall be deemed to “beneficially own” any securities
which such Person directly owns, or would be deemed to constructively own, pursuant to Section 382
of the Code, or any successor provision or replacement provision, and the Treasury Regulations
promulgated thereunder.

          (g) “Board” shall mean the Board of Directors of the Company.

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

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

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

          (k) “Code” shall mean the Internal Revenue Code of 1986, as amended.

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

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

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

          (o) “Distribution Date” shall mean the earliest of (i) the Close of Business on the
tenth Business Day after the Stock Acquisition Date and (ii) the Close of Business on the tenth
Business Day (or, such later date as may be specified by the Board prior to such time as any Person
becomes an Acquiring Person) after the commencement of a tender or exchange offer by or on behalf
of any Person (other than the Company, any Related Person or any Exempt Person), if upon the
consummation thereof such Person would become an Acquiring Person; provided,
however, that if a tender or exchange offer is terminated prior to the occurrence of a
Distribution Date, then no Distribution Date shall occur as a result of such tender or exchange
offer.

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

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

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

          (s) “Exempt Person” shall mean any Person (together with its Affiliates and
Associates) whose status as a 4.9% Stockholder would not, as determined by the Board in its sole
discretion, jeopardize or endanger in any material respect the availability to the Company of its
Tax Benefits, provided, however, that, such a Person shall cease to be an Exempt
Person if the Board, in its sole discretion, makes a contrary determination based on the potential
effect of such Person’s status as a 4.9% Stockholder (together with all Affiliates and Associates
of such Person) with respect to the availability to the Company of its Tax Benefits.

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

          (u) “Expiration Date” shall mean the earliest of (i) the Final Expiration Date,
(ii) the time at which the Rights are redeemed as provided in Section 22 hereof, (iii) the time at
which the Rights are exchanged in full as provided in Section 23 hereof, (iv) the effective date of
the repeal of Section 382 of the Code, or any successor provision or replacement provision, if the
Board determines that this Agreement is no longer necessary for the preservation of Tax Benefits,
(v) the beginning of a taxable year of the Company for which the Board determines that the Company
has or will have no Tax Benefits and (vi) August 19, 2010 if Stockholder Approval has not been
obtained.

          (v) “Final Expiration Date” shall be August 19, 2019.

          (w) “Ownership Statement” shall have the meaning set forth in Section 3(a) hereof.

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          (x) “Person” shall mean any individual, firm, corporation, partnership, limited
liability company, limited liability partnership, trust or other legal entity, or any group of
persons making a “coordinated acquisition” of shares or otherwise treated as an entity within the
meaning of Section 1.382-3(a)(1) of the Treasury Regulations or otherwise for purposes of
Section 382 of the Code, or any successor provision or replacement provision, and includes any
successor (by merger or otherwise) of such individual or entity.

          (y) “Preferred Stock” shall mean shares of Series A Junior Participating Preferred
Stock, par value $0.10 per share, of the Company having the rights and preferences set forth in the
form of Certificate of Designation, Preferences and Rights of Series A Junior Participating
Preferred Stock attached hereto as Exhibit A.

          (z) “Purchase Price” shall mean initially $80.00 per one ten-thousandth of a share of
Preferred Stock, subject to adjustment from time to time as provided in this Agreement.

          (aa) “Record Date” shall have the meaning set forth in the recitals to this Agreement.

          (bb) “Redemption Price” shall mean $0.00001 per Right, subject to adjustment of the
Company to reflect any stock split, stock dividend or similar transaction occurring after the date
hereof.

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

          (dd) “Rights” shall have the meaning set forth in the recitals to this Agreement.

          (ee) “Rights Agent” shall have the meaning set forth in the preamble of this Agreement
except as otherwise provided in Section 18 and Section 20 hereof.

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

          (gg) “Rights Dividend Declaration Date” shall have the meaning set forth in the
recitals to this Agreement.

          (hh) “Section 11(a)(ii) Event” shall have the meaning set forth in Section 11(a)(ii)
hereof.

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

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

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

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

          (mm) “Stockholder Approval” shall mean the approval of this Agreement by the
affirmative vote of a majority of all the votes cast at a duly called meeting of stockholders of
the Company (or any adjournment or postponement thereof) at which a quorum is present.

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

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

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

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

          (rr) “Trading Day” shall mean a day on which the principal national securities
exchange on which the shares of Common Stock are listed or admitted to trading is open for the
transaction of business or if the shares of Common Stock are not listed or admitted to trading on
any national securities exchange, a Business Day.

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

          (tt) “Trust” shall have the meaning set forth in Section 23(a) hereof.

          (uu) “Trust Agreement” shall have the meaning set forth in Section 23(a) hereof.

     Section 2 Appointment of the Rights Agent. The Company hereby appoints the Rights Agent to
act as agent for the Company and the registered holders of the Rights in accordance with the terms
and conditions hereof, and the Rights Agent hereby accepts such appointment and hereby certifies
that it complies with the requirements of the New York Stock Exchange governing transfer agents and
registrars. The Company may from time to time appoint such co-rights agents as it may deem
necessary or desirable. The Rights Agent shall have no duty to supervise, and shall in no event be
liable for, the acts or omission of any such co-rights agent. Prior to the appointment of a
co-rights agent, the specific duties and obligations of each such co-rights agents shall be set
forth in writing and delivered to the Rights Agent and the proposed co-rights agent. Any actions
which may be taken by the Rights Agent pursuant to the

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terms of this Agreement may be taken by any such co-rights agent. To the extent that any
co-rights agent takes any action pursuant to this Agreement, such co-rights agent shall be entitled
to all of the rights and protections of, and subject to all of the applicable duties and
obligations imposed upon, the Rights Agent pursuant to the terms of this Agreement. The Rights
Agent will have no duty to supervise, and in no event will be liable for, the acts or omissions of
any co-rights agent.

     Section 3 Issuance of Rights Certificates.

          (a) Until the Distribution Date, (i) the Rights shall be evidenced (subject to Section 3(b)
and Section 3(c) hereof) by the certificates representing the shares of Common Stock in the names
of the record holders thereof (which certificates representing such shares of Common Stock shall
also be deemed to be certificates for Rights) or by the current ownership statements issued with
respect to uncertificated shares of Common Stock in lieu of such certificates (“Ownership
Statements”) (which Ownership Statements shall be deemed also to be certificates for Rights)
and (ii) the Rights shall be transferable only in connection with the transfer of the underlying
shares of Common Stock.

          (b) On or as promptly as practicable after the Record Date, the Company shall send, in
accordance with Section 25 hereof, to each record holder of shares of Common Stock as of the Close
of Business on the Record Date, a copy of a Summary of Rights. With respect to shares of Common
Stock outstanding as of the Record Date, until the Distribution Date, the Rights associated with
such shares of Common Stock will be evidenced by the certificate or Ownership Statement for such
shares of Common Stock registered in the names of the holders thereof, in each case together with
the Summary of Rights. Until the Distribution Date, the surrender for transfer of any certificate
or Ownership Statement for shares of Common Stock outstanding on the Record Date, with or without a
copy of the Summary of Rights, shall also constitute the transfer of the Rights associated with the
shares of Common Stock represented by such certificate or Ownership Statement.

          (c) Rights shall be issued by the Company in respect of all shares of Common Stock (other than
any shares of Common Stock that may be issued upon the exercise or exchange of any Right) issued or
delivered by the Company after the Record Date but prior to the earlier of the Distribution Date
and the Expiration Date, and, to the extent provided in Section 21 hereof, after the Distribution
Date. Certificates and Ownership Statements representing such shares of Common Stock shall have
stamped on, impressed on, printed on, written on, or otherwise affixed to them a legend in
substantially the following form or such similar legend as the Company may deem appropriate and is
not inconsistent with the provisions of this Agreement and as do not affect the rights, duties or
responsibilities of the Rights Agent, or as may be required to comply with any applicable law or
with any rule or regulation made pursuant thereto or with any rule or regulation of any stock
exchange or transaction reporting system on which the shares of Common Stock may from time to time
be listed or quoted:

This [certificate/statement] also evidences and entitles the holder
hereof to certain Rights as set forth in the Section 382 Rights
Agreement between D.R. Horton, Inc. and American Stock Transfer &
Trust Company, LLC, dated as of August 19, 2009 and

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as amended from time to time (the “Rights Agreement”), the
terms of which are hereby incorporated herein by reference and a
copy of which is on file at the principal executive offices of D.R.
Horton, Inc. The Rights are not exercisable prior to the occurrence
of certain events specified in the Rights Agreement. Under certain
circumstances, as set forth in the Rights Agreement, such Rights may
be redeemed, may be exchanged, may expire, may be amended, or may be
evidenced by separate certificates and no longer be evidenced by
this [certificate/statement]. D.R. Horton, Inc. shall mail to the
holder of this [certificate/statement] 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 as set forth in the Rights Agreement, Rights
that are or were beneficially owned by an Acquiring Person or any
Affiliate or Associate of an Acquiring Person (as such terms are
defined in the Rights Agreement) may become null and void.

With respect to such certificates or Ownership Statements containing the foregoing legend, until
the Distribution Date, the Rights associated with the shares of Common Stock represented by such
certificates or Ownership Statements shall be represented by such certificates or Ownership
Statements alone and the surrender for transfer of any certificate or Ownership Statement for
shares of Common Stock shall also constitute the transfer of the Rights associated with the shares
of Common Stock represented by such certificate or Ownership Statement.

          (d) As promptly as practicable after the Distribution Date, the Company shall prepare and
execute, the Rights Agent shall countersign and the Company shall send or cause to be sent (and the
Rights Agent will, if requested, and if provided with all necessary information, send), in
accordance with Section 25 hereof, to each record holder of shares of Common Stock, as of the Close
of Business on the Distribution Date (other than an Acquiring Person or any Associate or Affiliate
of an Acquiring Person), a Rights Certificate representing one Right for each share of Common Stock
so held, subject to adjustment as provided herein. In the event that an adjustment in the number
of Rights per share of Common Stock has been made pursuant to Section 11(i) or Section 11(p)
hereof, at the time of distribution of the Rights Certificates, the Company shall not be required
to issue Rights Certificates evidencing fractional Rights but may, in lieu thereof, make the
necessary and appropriate rounding adjustments (in accordance with Section 13(a) hereof) so that
Rights Certificates evidencing only whole numbers of Rights are distributed and cash is paid in
lieu of any fractional Rights. As of and after the Distribution Date, the Rights shall be
represented solely by such Rights Certificates. The Company shall promptly notify the Rights Agent
in writing upon the occurrence of the Distribution Date and, if such notification is given orally,
the Company shall confirm same in writing on or prior to the next Business Day. Until such notice
is received by the Rights Agent, the Rights Agent may presume conclusively that the Distribution
Date has not occurred.

          (e) In the event that the Company purchases or otherwise acquires any shares of Common Stock
after the Record Date but prior to the Distribution Date, any Rights associated with such shares of
Common Stock shall be deemed cancelled and retired so that the Company

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shall not be entitled to exercise any Rights associated with the shares of Common Stock so
purchased or acquired.

     Section 4 Form of Rights Certificates. The Rights Certificates (and the form of election to
purchase and the form of assignment and the certificates contained therein to be printed on the
reverse thereof) shall each be substantially in the form attached hereto as Exhibit B with
such changes and marks of identification or designation, and such legends, summaries or
endorsements printed thereon as the Company may deem appropriate and as are not inconsistent with
the provisions of this Agreement, or as may be required to comply with any applicable law or with
any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange
or transaction reporting system on which the Rights may from time to time be listed or quoted, or
to conform to usage. Subject to the provisions of Section 21 hereof, the Rights Certificates,
whenever distributed shall entitle the holders thereof to purchase such number of one
ten-thousandths of a share of Preferred Stock as is set forth therein at the Purchase Price;
provided, however, that the Purchase Price, the number and kind of securities
issuable upon exercise of each Right and the number of Rights outstanding shall be subject to
adjustment as provided in this Agreement.

     Section 5 Countersignature and Registration.

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

          (b) Following the Distribution Date, upon receipt by the Rights Agent of written notice of the
occurrence of the Distribution Date pursuant to Section 3(d) hereof, the Rights Agent shall keep or
cause to be kept, at its office or offices designated for such purposes and at such other offices
as may be required to comply with any applicable law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange or any transaction reporting system on
which the rights may from time to time be listed or quoted, books for registration and transfer of
the Rights Certificates issued hereunder. Such books shall show the names and addresses of the
respective holders of the Rights Certificates, the number of Rights evidenced on its face by each
of the Rights Certificates and the date of each of the Rights Certificates.

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

          (a) Subject to the provisions of Section 11(a)(ii) and Section 13 hereof, at any time after
the Close of Business on the Distribution Date, and prior to the Expiration Date, any Rights
Certificate(s) (other than Rights Certificates representing Rights that have been redeemed or
exchanged pursuant to Section 22 or Section 23 hereof) representing exercisable Rights may be
transferred, split-up, combined or exchanged for another Rights Certificate(s), entitling the
registered holder to purchase a like number of one ten-thousandths of a share of Preferred Stock
(or other securities, cash or other assets, as the case may be) as the Rights Certificate(s)
surrendered then entitled such holder (or former holder in the case of a transfer) to purchase.
Any registered holder desiring to transfer, split-up, combine or exchange any such Rights
Certificate(s) must make such request in writing delivered to the Rights Agent, and must surrender
the Rights Certificate(s) to be transferred, split-up, combined or exchanged, with the forms of
assignment and certificate contained therein duly executed, at the office or offices of the Rights
Agent designated for such purpose. The Rights Certificates are transferable only on the registry
books of the Rights Agent. Neither the Rights Agent nor the Company shall be obligated to take any
action whatsoever with respect to the transfer of any such surrendered Rights Certificate until the
registered holder shall have (i) completed and signed the certificate contained in the form of
assignment on the reverse side of such Rights Certificate, (ii) provided such additional evidence
of the identity of the Beneficial Owner (or former Beneficial Owner and the Affiliates and
Associates of such Beneficial Owner (or former Beneficial Owner) as the Company or the Rights Agent
shall reasonably request and (iii) paid a sum sufficient to cover any tax or charge that may be
imposed in connection with any transfer, split-up, combination or exchange or Rights Certificates
as required by Section 9(d) hereof. Thereupon the Rights Agent shall, subject to Section
11(a)(ii), Section 13 and Section 23 hereof, countersign and deliver to the Person entitled thereto
a Rights Certificate or Rights Certificates, as the case may be, as so requested registered in such
name or names as may be designated by the surrendering registered holder. The Rights Agent shall
promptly forward any such sum collected by it to the Company or to such Person or Persons as the
Company shall specify by written notice. The Rights Agent shall have no duty or obligation unless
and until it is satisfied that all such taxes and charges have been paid.

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

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

          (a) Subject to Section 11(a)(ii) hereof, at any time after the Distribution Date and prior to
the Expiration Date, the registered holder of any Rights Certificate may exercise the Rights
evidenced thereby (except as otherwise provided herein, including, without limitation, the

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restrictions on exercisability as set forth in Section 9(e), Section 11(a)(iii), Section 22(a)
and Section 23(a) hereof) in whole or in part upon surrender of the Rights Certificate, with the
form of election to purchase and the certificate contained therein on the reverse side thereof duly
executed, to the Rights Agent at the office or agency of the Rights Agent designated for such
purpose, together with payment of the Purchase Price (including any applicable tax or charge
required to be paid by the holder of such Rights Certificate in accordance with the provisions of
Section 9(d) hereof) for each one ten-thousandth of a share of Preferred Stock (or other
securities, cash or other assets, as the case may be) as to which the Rights are exercised.

          (b) Upon receipt of a Rights Certificate representing exercisable Rights with the form of
election to purchase and the certificate contained therein properly completed and duly executed,
accompanied by payment of the Purchase Price for each one ten-thousandth of a share of Preferred
Stock (or other securities, cash or other assets, as the case may be) to be purchased and an amount
equal to any applicable tax or charge required to be paid under Section 9(d) hereof by certified
check, cashier’s check, bank draft or money order payable to the order of the Company, the Rights
Agent shall, subject to Section 19(j) hereof, thereupon promptly (i) (A) requisition from any
transfer agent of the shares of Preferred Stock (or make available, if the Rights Agent is the
transfer agent for such shares) certificates representing the total number of one ten-thousandths
of a share of Preferred Stock to be purchased (and the Company hereby irrevocably authorizes and
directs its transfer agent to comply with all such requests) or (B) if the Company shall have
elected to deposit any shares of Preferred Stock issuable upon exercise of the Rights hereunder
with a depositary agent, requisition from the depositary agent depositary receipts representing
such number of one ten-thousandths of a share of Preferred Stock as are to be purchased (and the
Company hereby irrevocably authorizes and directs such depositary agent to comply with all such
requests), (ii) after receipt of such certificates (or depositary receipts, as the case may be)
cause the same to be delivered to or upon the order of the registered holder of such Rights
Certificate, registered in such name or names as may be designated by such holder, (iii) when
appropriate, requisition from the Company or any transfer agent therefor of certificates
representing the number of equivalent shares to be issued in lieu of the issuance of shares of
Common Stock in accordance with the provisions of Section 11(a)(iii) hereof, (iv) when appropriate,
after receipt of such certificates, cause the same to be delivered to or upon the order of the
registered holder of such Rights Certificate, registered in such name or names as may be designated
by such holder, (v) when appropriate, requisition from the Company of the amount of cash to be paid
in lieu of the issuance of fractional shares in accordance with the provisions of Section 13
hereof, and (vi) when appropriate, after receipt, deliver such cash to the registered holder of
such Rights Certificate.

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

          (d) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor
the Company shall be obligated to undertake any action with respect to any purported transfer,
split-up, combination or exchange of any Rights Certificate pursuant to Section 6 hereof or
exercise or assignment of a Rights Certificate as set forth in this Section 7

10

 

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

     Section 8 Cancellation and Destruction of Rights Certificates. All Rights Certificates
surrendered for the purpose of exercise, transfer, split-up, combination or exchange shall, if
surrendered to the Company or any of its agents, be delivered to the Rights Agent for cancellation
or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no
Rights Certificates shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation and
retirement, and the Rights Agent shall so cancel and retire, any other Rights Certificate purchased
or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall
deliver all cancelled Rights Certificates to the Company, or shall, at the written request of the
Company, destroy such cancelled Rights Certificates, and in such case shall deliver a certificate
of destruction thereof to the Company.

     Section 9 Company Covenants Concerning Securities and Rights.

          (a) The Company covenants and agrees that it shall cause to be reserved, authorized for
issuance and kept available out of its authorized and unissued shares of Preferred Stock, a number
of shares of Preferred Stock that shall be sufficient to permit the exercise in full of all
outstanding Rights in accordance with Section 7 hereof.

          (b) The Company covenants and agrees so long as the shares of Preferred Stock (and, following
the occurrence of a Section 11(a)(ii) Event, shares of Common Stock or other securities, as the
case may be) issuable upon the exercise of the Rights may be listed on any national securities
exchange, or quoted on a quotation system, it shall endeavor to cause, from and after such time as
the Rights become exercisable, all securities reserved for issuance upon the exercise of Rights to
be listed on such exchange, or quoted on such quotation system, upon official notice of issuance
upon such exercise.

          (c) The Company covenants and agrees it will take all such actions as may be necessary to
ensure that all shares of Preferred Stock (and, following the occurrence of a Section 11(a)(ii)
Event, shares of Common Stock or other securities, as the case may be) delivered upon exercise of
Rights, at the time of delivery of the certificates for such securities, shall be (subject to
payment of the Purchase Price) duly authorized, validly issued, fully paid and nonassessable
securities.

          (d) The Company covenants and agrees it will pay when due and payable any and all federal and
state taxes and charges that may be payable in respect of the issuance or delivery of the Rights
Certificates and of any certificates representing securities issued upon the exercise of Rights;
provided, however, that the Company shall not be required to pay any tax or charge
which may be payable in respect of any transfer or delivery of Rights Certificates to a

11

 

person other than, or the issuance or delivery of certificates or depositary receipts
representing securities issued upon the exercise of Rights in a name other than that of, the
registered holder of the Rights Certificate evidencing Rights surrendered for exercise, or to issue
or deliver any certificates or depositary receipts representing securities issued upon the exercise
of any Rights until any such tax or charge has been paid (any such tax or charge being payable by
the holder of such Rights Certificate at the time of surrender) or until it has been established to
the Company’s reasonable satisfaction that no such tax or charge is due.

          (e) If the Company determines that registration under the Securities Act is required, then the
Company shall use commercially reasonable efforts (i) to file, as soon as practicable after the
Distribution Date, on an appropriate form, a registration statement under the Securities Act with
respect to the securities issuable upon exercise of the Rights, (ii) to cause such registration
statement to become effective as soon as practicable after such filing and (iii) to cause such
registration statement to remain effective (with a prospectus at all times meeting the requirements
of the Securities Act) until the earlier of (A) the date as of which the Rights are no longer
exercisable for such securities and (B) the Expiration Date. The Company shall also take such
action as may be appropriate under, or to ensure compliance with, the securities or “blue sky” laws
of the various states in connection with the exercisability of the Rights. The Company may
temporarily suspend, for a period of time not to exceed 90 calendar days after the date the Company
determines that registration is required, the exercisability of the Rights in order to prepare and
file such registration statement and to permit it to become effective or to qualify the rights, the
exercise thereof or the issuance of shares of Preferred Stock, Common Stock, or other securities
upon the exercise thereof under state securities or “blue sky” laws. 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. The Company shall notify the Rights Agent in writing whenever it makes a public
announcement pursuant to this Section 9(e) and give the Rights Agent a copy of such announcement.
In addition, if the Company determines that a registration statement or other document should be
filed under the Securities Act or any state securities laws following the Distribution Date, the
Company may temporarily suspend the exercisability of the Rights, for a period of time not to
exceed 90 calendar days after the date the Company makes such determination, in each relevant
jurisdiction, until such time as a registration statement has been declared effective or any such
other document filed and, if required, approved, 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 anything in this Agreement to the contrary, the Rights shall not be exercisable in
any jurisdiction if the requisite registration or qualification in such jurisdiction has not been
effected or the exercise of the Rights is not permitted under applicable law.

          (f) Notwithstanding anything in this Agreement to the contrary, after the later of the Stock
Acquisition Date and the Distribution Date, the Company shall not, except as permitted by Section
22 or Section 26 hereof, take (or permit any Subsidiary to take) any action if at the time such
action is taken it is reasonably foreseeable that such action shall eliminate or otherwise diminish
the benefits intended to be afforded by the Rights.

12

 

          (g) In the event that the Company is obligated to issue other securities of the Company, pay
cash or distribute other assets pursuant to Section 7, Section 11, Section 13, Section 22 or
Section 23 hereof, it shall make all arrangements necessary so that such other securities, cash or
other assets are available for distribution by the Rights Agent, if and when necessary to comply
with this Agreement.

     Section 10 Record Date. Each Person in whose name any certificate for a number of one
ten-thousandths of a share of Preferred Stock (or Common Stock or other securities, as the case may
be) is issued upon the exercise of Rights shall for all purposes be deemed to have become the
holder of record of such shares of Preferred Stock (or Common Stock or other securities, as the
case may be) represented thereby on, and such certificate shall be dated, the date upon which the
Rights Certificate representing such Rights was duly surrendered and payment of the Purchase Price
(and all applicable taxes and charges) was made; provided, however, that if the
date of such surrender and payment is a date upon which the transfer books of the Company for
shares of Preferred Stock (or Common Stock or other securities, as the case may be) are closed,
such Person shall be deemed to have become the record holder of such securities on, and such
certificate shall be dated, the next succeeding Business Day on which the transfer books of the
Company are open. Prior to the exercise of the Rights evidenced thereby, the holder of a Rights
Certificate shall not be entitled to any rights of a holder of any security of the Company with
respect to shares for which the Rights are or may be exercisable, including, without limitation,
the right to vote, to receive dividends or other distributions or to exercise any preemptive
rights, and shall not be entitled to receive any notice of any proceedings of the Company, except
as provided herein.

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

          (a) (i) In the event the Company shall at any time after the Record Date (A) declare a
dividend on the shares of Preferred Stock payable in shares of Preferred Stock, (B) subdivide the
outstanding shares of Preferred Stock, (C) combine the outstanding shares of Preferred Stock into a
smaller number of shares of Preferred Stock or (D) issue any shares of its capital stock in a
reclassification of the shares of Preferred Stock (including any such reclassification in
connection with a consolidation or merger in which the Company is the continuing or surviving
corporation), except as otherwise provided in this Section 11(a), the Purchase Price in effect at
the time of the record date for such dividend or of the effective date of such subdivision,
combination or reclassification, as the case may be, and the number and kind of shares of capital
stock issuable on such date, shall be proportionately adjusted so that the holder of any Right
exercised after such time shall be entitled to receive, upon payment of the Purchase Price then in
effect, the aggregate number and kind of shares of capital stock which, if such Right had been
exercised immediately prior to such date (whether or not such Right was then exercisable) and at a
time when the transfer books of the Company for the shares of Preferred Stock (or other capital
stock, as the case may be) were open, the holder would have owned upon such exercise and been
entitled to receive by virtue of such dividend, subdivision, combination or reclassification;
provided, however, that in no event shall the consideration to be

13

 

paid upon the exercise of one Right be less than the aggregate par value of the shares of
capital stock of the Company issuable upon exercise of one Right.

               (ii) Subject to Section 22 and Section 23 of this Agreement and except as otherwise provided
in this Section 11(a)(ii) and Section 11(a)(iii) hereof, in the event that any Person becomes an
Acquiring Person (a “Section 11(a)(ii) Event”), each holder of a Right shall thereafter
have the right to receive, upon exercise thereof at a price equal to the then-current Purchase
Price, in accordance with the terms of this Agreement and in lieu of shares of Preferred Stock,
such number of shares of Common Stock (or at the option of the Company, such number of one
ten-thousandths of a share of Preferred Stock) as shall equal the result obtained by
(x) multiplying the then-current Purchase Price by the number of one ten-thousandths of a share of
Preferred Stock for which a Right was exercisable immediately prior to the first occurrence of a
Section 11(a)(ii) Event and dividing that product (which, following such first occurrence, shall
thereafter be referred to as the “Purchase Price” for each Right and for all purposes of
this Agreement) by (y) 50% of the Current Per Share Market Price of the Company’s Common Stock
(determined pursuant to Section 11(d) hereof) on the date of such first occurrence;
provided, however, that the Purchase Price (as so adjusted) and the number of
shares of Common Stock so receivable upon exercise of a Right shall thereafter be subject to
further adjustment as appropriate in accordance with Section 11(f) hereof.

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

               (iii) The Company may at its option substitute for a share of Common Stock issuable upon the
exercise of Rights in accordance with the foregoing Section 11(a)(ii) such number or fractions of
shares of Preferred Stock having an aggregate current market value

14

 

equal to the Current Per Share Market Price of a share of Common Stock. In the event that
there shall be an insufficient number of shares of Common Stock authorized but unissued (and
unreserved) to permit the exercise in full of the Rights in accordance with the foregoing
Section 11(a)(ii), the Board shall, with respect to such deficiency, to the extent not prohibited
by applicable law or any material agreements then in effect to which the Company is a party
(A) determine the excess of (1) the value of the shares of Common Stock issuable upon the exercise
of a Right in accordance with the foregoing Section 11(a)(ii) (the “Current Value”) over
(2) the then-current Purchase Price (such excess, the “Spread”), and (B) with respect to
each Right (other than Rights which have become void pursuant to Section 11(a)(ii)), make adequate
provision to substitute for the shares of Common Stock issuable in accordance with
Section 11(a)(ii) upon exercise of the Right and payment of the applicable Purchase Price,
(1) cash, (2) a reduction in the Purchase Price, (3) shares of Preferred Stock or other equity
securities of the Company (including, without limitation, shares or fractions of shares of
preferred stock which, by virtue of having dividend, voting and liquidation rights substantially
comparable to those of the shares of Common Stock, are deemed in good faith by the Board to have
substantially the same value as the shares of Common Stock, (4) debt securities of the Company,
(5) other assets or (6) any combination of the foregoing, having a value which, when added to the
value of the shares of Common Stock actually issued upon exercise of such Right, shall have an
aggregate value equal to the Current Value, where such aggregate value has been determined by the
Board (upon the advice of a nationally recognized investment banking firm selected by the Board in
good faith); provided, however, if the Company shall not make adequate provision to
deliver value pursuant to clause (B) above within 30 calendar days following the later of (x) the
first occurrence of a Section 11(a)(ii) Event and (y) the date on which the Company’s right of
redemption pursuant to Section 22(a) expires (the later of (x) and (y) being referred to herein as
the “Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to deliver, to
the extent not prohibited by applicable law or any material agreements then in effect to which the
Company is a party, upon the surrender for exercise of a Right and without requiring payment of the
Purchase Price, shares of Common Stock (to the extent available), and then, if necessary, such
number or fractions of shares of Preferred Stock (to the extent available) and then, if necessary,
cash, which shares and cash have an aggregate value equal to the Spread. If within the 30-day
period referred to above the Board shall determine in good faith that it is likely that sufficient
additional shares of Common Stock could be authorized for issuance upon exercise in full of the
Rights, then, if the Board so elects, such 30-day period may be extended to the extent necessary,
but not more than 90 calendar days after the Section 11(a)(ii) Trigger Date, in order that the
Company may seek stockholder approval for the authorization of such additional shares (such 30-day
period, as it may be extended, is hereinafter called the “Substitution Period”). To the
extent that the Company determines that some action need be taken pursuant to the second or third
sentence of this Section 11(a)(iii), the Company (I) shall provide, subject to Section 11(a)(ii),
that such action shall apply uniformly to all outstanding Rights and (II) may suspend the
exercisability of the Rights until the expiration of the Substitution Period in order to seek any
authorization of additional shares or to decide the appropriate form of distribution to be made
pursuant to such second sentence and to determine the value thereof. In the event of any such
suspension, the Company shall issue a public announcement stating that the exercisability of the
Rights has been temporarily suspended, as well as a public announcement at such time as the
suspension is no longer in effect.

15

 

          (b) If the Company fixes a record date for the issuance of rights, options or warrants to all
holders of shares of Preferred Stock entitling them (for a period expiring within 45 calendar days
after such record date) to subscribe for or purchase shares of Preferred Stock (or securities
having equivalent rights, privileges and preferences as the shares of Preferred Stock (for purposes
of this Section 11(b), “Equivalent Preferred Stock”)) or securities convertible into shares
of Preferred Stock or Equivalent Preferred Stock at a price per share of Preferred Stock or
Equivalent Preferred Stock (or having a conversion price per share, if a security convertible into
shares of Preferred Stock or Equivalent Preferred Stock) less than the Current Per Share Market
Price of the shares of Preferred Stock (determined pursuant to Section 11(d) hereof) on such record
date, the Purchase Price to be in effect after such record date shall be determined by multiplying
the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of
which is the number of shares of Preferred Stock outstanding on such record date plus the number of
shares of Preferred Stock which the aggregate offering price of the total number of shares of
Preferred Stock and Equivalent Preferred Stock so to be offered (or the aggregate initial
conversion price of the convertible securities so to be offered) would purchase at such Current Per
Share Market Price and the denominator of which is the number of shares of Preferred Stock
outstanding on such record date plus the number of additional shares of Preferred Stock and
Equivalent Preferred Shares to be offered for subscription or purchase (or into which the
convertible securities so to be offered are initially convertible); provided,
however, that in no event shall the consideration to be paid upon the exercise of one Right
be less than the aggregate par value of the shares of capital stock issuable upon exercise of one
Right. In case such subscription price may be paid in a consideration part or all of which is in a
form other than cash, the value of such consideration shall be as determined in good faith by the
Board, whose determination shall be described in a written statement filed with the Rights Agent.
Shares of Preferred Stock owned by or held for the account of the Company shall not be deemed
outstanding for the purpose of any such computation. Such adjustments shall be made successively
whenever such a record date is fixed, and in the event that such rights, options or warrants are
not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in
effect if such record date had not been fixed.

          (c) If the Company fixes a record date for the making of a distribution to all holders of
shares of Preferred Stock (including any such distribution made in connection with a consolidation
or merger in which the Company is the continuing or surviving corporation) of evidences of
indebtedness, cash (other than a regular periodic cash dividend), assets, stock (other than a
dividend payable in shares of Preferred Stock) or subscription rights, options or warrants
(excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect after
such record date shall be determined by multiplying the Purchase Price in effect immediately prior
to such record date by a fraction, the numerator of which is the Current Per Share Market Price of
the shares of Preferred Stock (as determined pursuant to Section 11(d) hereof) on such record date
or, if earlier, the date on which shares of Preferred Stock begin to trade on an ex-dividend or
when issued basis for such distribution, less the fair market value (as determined in good faith by
the Board, whose determination shall be described in a written statement filed with the Rights
Agent) of the portion of the evidences of indebtedness, cash, assets or stock so to be distributed
or of such subscription rights, options or warrants applicable to one share of Preferred Stock, and
the denominator of which is such Current Per Share Market Price of the shares of Preferred Stock;
provided, however, that in no event shall the consideration to be paid upon the
exercise of one Right but less than the aggregate par value of the shares of capital stock issuable
upon

16

 

exercise of one Right. Such adjustments shall be made successively whenever such a record
date is fixed; and in the event that such distribution is not so made, the Purchase Price shall
again be adjusted to be the Purchase Price which would then be in effect if such record date had
not been fixed.

          (d) (i) For the purpose of any computation hereunder, the “Current Per Share Market
Price” of a share of Common Stock on any date shall be deemed to be the average of the daily
closing prices per share of a share of Common Stock for the 30 consecutive Trading Days immediately
prior to, but not including, such date; provided, however, that in the event that
the Current Per Share Market Price of Common Stock is determined during a period following the
announcement by the Company of (A) a dividend or distribution on such shares of Common Stock
payable in shares of Common Stock or securities convertible into such shares (other than the
Rights) or (B) any subdivision, combination or reclassification of such shares of Common Stock, and
prior to the expiration of 30 Trading Days after, but not including, the ex-dividend date for such
dividend or distribution, or the record date for such subdivision, combination or reclassification,
then, and in each such case, the Current Per Share Market Price shall be appropriately adjusted to
take into account ex-dividend trading or to reflect the current per share market price per share
equivalent of such shares of Common Stock. 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 Common Stock is not listed or admitted to trading on the New York
Stock Exchange, as reported in the principal consolidated transaction reporting system with respect
to securities listed on the principal national securities exchange on which the Common Stock is
listed or admitted to trading or, if the Common Stock is not listed or admitted to trading on any
national securities exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported on a quotation system then in
use, or, if on any such date the Common Stock is not quoted by any such organization, the average
of the closing bid and asked prices as furnished by a professional market maker making a market in
the Common Stock selected by the Board. If the Common Stock is not publicly held or not so listed
or traded, or is not the subject of available bid and asked quotes, the Current Per Share Market
Price of such Common Stock shall mean the fair value per share as determined in good faith by the
Board, whose determination shall be described in a statement filed with the Rights Agent.

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

17

 

this Agreement, the current per share market price of one ten-thousandth of a Preferred Share
will be equal to the current per share market price of one Preferred Share divided by ten thousand.

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

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

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

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

          (i) The Company may elect, on or after the date of any adjustment of the Purchase Price, to
adjust the number of Rights in substitution for any adjustment in the number of one ten-thousandths
of a share of Preferred Stock issuable upon the exercise of a Right. Each of the Rights
outstanding after such adjustment of the number of Rights shall be exercisable for

18

 

the number of one ten-thousandths of a share of Preferred Stock for which a Right was
exercisable immediately prior to such adjustment. Each Right held of record prior to such
adjustment of the number of Rights shall become that number of Rights (calculated to the nearest
one hundred-thousandth) obtained by dividing the Purchase Price in effect immediately prior to
adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of
the Purchase Price. The Company shall make a public announcement of its election to adjust the
number of Rights, indicating the record date for the adjustment, and, if known at the time, the
amount of the adjustment to be made. The Company shall also, as promptly as practicable, notify
the Rights Agent in writing of same pursuant to Section 9(e) hereof and give the Rights Agent a
copy of such announcement. Such record date may be the date on which the Purchase Price is
adjusted or any day thereafter, but if the Rights Certificates have been issued, such record date
shall be at least ten calendar days later than the date of the public announcement. If Rights
Certificates have been issued, upon each adjustment of the number of Rights pursuant to this
Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of
record of Rights Certificates on such record date Rights Certificates evidencing, subject to the
provision of Section 13 hereof, the additional Rights to which such holders are entitled as a
result of such adjustment, or, at the option of the Company, shall cause to be distributed to such
holders of record in substitution and replacement for the Rights Certificates held by such holders
prior to the date of adjustment, and upon surrender thereof if required by the Company, new Rights
Certificates evidencing all the Rights to which such holders are entitled after such adjustment.
Rights Certificates so to be distributed shall be issued, executed, and countersigned in the manner
provided for herein (and may bear, at the option of the Company, the adjusted Purchase Price) and
shall be registered in the names of the holders of record of Rights Certificates on the record date
specified in the public announcement.

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

          (k) Before taking any action that would cause an adjustment reducing the Purchase Price below
one ten-thousandth of the then par value, if any, of the shares of Preferred Stock or below the
then par value, if any, of any other securities of the Company issuable upon exercise of the
Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be
necessary in order that the Company may validly and legally issue fully paid and nonassessable
shares of Preferred Stock or such other securities, as the case may be, at such adjusted Purchase
Price.

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

19

 

appropriate instrument evidencing such holder’s right to receive such additional shares of
Preferred Stock or other securities upon the occurrence of the event requiring such adjustment.

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

          (n) Notwithstanding anything in this Agreement to the contrary, in the event that the Company
at any time after the Record Date and prior to the Distribution Date (i) pays a dividend on the
outstanding shares of Common Stock payable in shares of Common Stock, (ii) subdivides the
outstanding shares of Common Stock, (iii) combines the outstanding shares of Common Stock into a
smaller number of shares or (iv) issues any shares of its capital stock in a reclassification of
the outstanding shares of Common Stock (including any such reclassification in connection with a
consolidation or merger in which the Company is the continuing or surviving corporation), the
number of Rights associated with each share of Common Stock then outstanding, or issued or
delivered thereafter but prior to the Distribution Date (or issued or delivered on or after the
Distribution Date pursuant to Section 21 hereof), shall be proportionately adjusted so that the
number of Rights thereafter associated with each share of Common Stock following any such event
equals the result obtained by multiplying the number of Rights associated with each share of Common
Stock immediately prior to such event by a fraction the numerator of which is the total number of
shares of Common Stock outstanding immediately prior to the occurrence of the event and the
denominator of which is the total number of shares of Common Stock outstanding immediately
following the occurrence of such event. The adjustments provided for in this Section 11(n) shall
be made successively whenever such a dividend is paid or such a subdivision, combination or
reclassification is effected.

     Section 12 Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment
is made or any event affecting the Rights or their exercisability (including, without limitation,
an event which causes Rights to become null and void) occurs as provided in Section 11 thereof, the
Company shall promptly (a) prepare a certificate setting forth such adjustment and a brief
statement of the facts and calculations accounting for such adjustment or describing such event,
(b) file with the Rights Agent, and with each transfer agent for the shares of Preferred Stock and
the shares of Common Stock, a copy of such certificate, and (c) if a Distribution Date has
occurred, give a brief summary thereof to each holder of a Rights Certificate in accordance with
Section 25 hereof. The Rights Agent shall be fully protected in relying on any such certificate
and on any adjustment therein contained and shall not be deemed to have knowledge of any such
adjustment unless and until it shall have received such certificate, provided,
however, that the Rights Agent will not be entitled to such protection in cases of bad
faith or willful misconduct.

20

 

     Section 13 Fractional Rights and Fractional Shares.

          (a) The Company shall not be required to issue fractions of Rights, except prior to the
Distribution Date as provided in Section 11(n) hereof, or to distribute Rights Certificates which
evidence fractional Rights. In lieu of such fractional Rights, the Company shall pay to the
registered holders of the Rights Certificates with regard to which such fractional Rights would
otherwise be issuable, an amount in cash equal to the same fraction of the current market value of
one Right. For purposes of this Section 13(a), the current market value of one Right is the
closing price of the Rights for the Trading Day immediately prior to the date on which such
fractional Rights would have been otherwise issuable. The closing price for any Trading Day shall
be the last sale price, regular way, or, in case no such sale takes place on such day, the average
of the closing bid and asked prices, regular way, in either case as reported in the principal
consolidated transaction reporting system with respect to securities listed or admitted to trading
on the New York Stock Exchange or, if the Rights are not listed or admitted to trading on the New
York Stock Exchange, as reported in the principal consolidated transaction reporting system with
respect to securities listed on the principal national securities exchange on which the Rights are
listed or admitted to trading or, if the Rights are not listed or admitted to trading on any
national securities exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported on a quotation system then in
use or, if on any such date the Rights are not quoted, the average of the closing bid and asked
prices as furnished by a professional market maker making a market in the Rights, such market maker
to be selected by the Board. If the Rights are not publicly held or are not so listed or traded,
or are not the subject of available bid and asked quotes, the current market value of one Right
shall mean the fair value thereof as determined in good faith by the Board, whose determination
shall be described in a statement filed with the Rights Agent.

          (b) The Company shall not be required to issue fractions of shares of Preferred Stock (other
than fractions which are integral multiples of 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 ten-thousandth of a share
of Preferred Stock). Fractions of Preferred Stock in integral multiples of one ten-thousandth of
such Preferred Stock may, in the sole discretion of the Company, be evidenced by depositary
receipts pursuant to an appropriate agreement between the Company and a depositary selected by it,
provided that such agreement provides that the holders of such depositary receipts have all the
rights, privileges and preferences to which they are entitled as Beneficial Owners of the Preferred
Stock represented by such depositary receipts. In lieu of fractional shares of Preferred Stock
that are not integral multiples of one ten-thousandth of a share of Preferred Stock, the Company
may pay to the registered holders of Rights Certificates at the time such Rights are exercised as
herein provided an amount in cash equal to the same fraction of the current market value of one
ten-thousandth of a share of Preferred Stock. For purposes of this Section 13(b), the current
market value of one ten-thousandth of a share of Preferred Stock shall be one ten-thousandth of the
closing price of a share of Preferred Stock (as determined pursuant to Section 11(d)(ii) hereof)
for the Trading Day immediately prior to the date of such exercise; provided,
however, that if the closing price of the shares of the Preferred Stock cannot be so
determined, the closing price of the shares of the Preferred Stock for such Trading Day shall be
conclusively deemed to be an amount equal to the closing price of the shares of Common Stock for
such Trading Day multiplied by ten thousand (as such number may

21

 

be appropriately adjusted to reflect events such as stock splits, stock dividends,
recapitalizations or similar transactions relating to the Common Stock shares occurring after the
date of this Agreement).

          (c) Following the occurrence of a Section 11(a)(ii) Event, the Company shall not be required
to issue fractions of shares of Common Stock upon exercise or exchange of the Rights or to
distribute certificates or Ownership Statements which evidence fractional shares of Common Stock.
In lieu of issuing any such fractional shares of Common Stock, the Company may pay to any Person to
whom or 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 one such share of Common Stock. For
purposes of this Section 13(c), the current market value of one share of Common Stock shall be the
closing price thereof (as determined pursuant to Section 11(d)(i) hereof) on the Trading Day
immediately prior to the date of such exercise or exchange.

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

     Section 14 Rights of Action.

          (a) All rights of action in respect of this Agreement, excepting the rights of action given to
the Rights Agent hereunder, are vested in the respective registered holders of the Rights
Certificates (or, prior to the Distribution Date, the registered holders of shares of Common
Stock); and any registered holder of any Rights Certificate (or, prior to the Distribution Date, of
the shares of Common Stock), without the consent of the Rights Agent or of the holder of any other
Rights Certificate (or, prior to the Distribution Date, of the shares of Common Stock), may, on
such first holder’s behalf and for such first 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 first holder’s right to exercise the Rights evidenced by such Rights Certificate in the
manner provided in such Rights Certificate and in this Agreement. Without limiting the foregoing
or any remedies available to the holders of Rights, it is specifically acknowledged that the
holders of Rights would not have an adequate remedy at law for any breach of this Agreement and
shall be entitled to specific performance of the obligations hereunder and injunctive relief
against actual or threatened violations of the obligations hereunder of any Person subject to this
Agreement.

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

22

 

     Section 15 Agreement of Rights 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 shall be transferable only in connection with
the transfer of shares of Common Stock;

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

          (c) subject to Section 6(a) and Section 7(d) hereof, the Company and the Rights Agent may deem
and treat the Person in whose name a Rights Certificate (or, prior to the Distribution Date, the
associated Common Stock share certificate or Ownership Statement) is registered as the absolute
owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or
writing on the Rights Certificates or the associated Common Stock share certificate or Ownership
Statement made by anyone other than the Company or the Rights Agent) for all purposes whatsoever,
and neither the Company nor the Rights Agent, subject to the penultimate sentence of Section
11(a)(ii) hereof, shall be affected by any notice to the contrary; and

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

     Section 16 Rights Certificate Holder Not Deemed a Stockholder. No holder, of any Rights
Certificate, by means of such possession, shall be entitled to vote, receive dividends or be deemed
for any purpose the holder of the number of one ten-thousandths of a share of Preferred 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 Rights Certificate be construed
to confer upon the holder of any Rights Certificate, by means of such possession, any of the rights
of a stockholder of the Company including any right to vote on any matter submitted to stockholders
at any meeting thereof, including the election of directors, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting stockholders (except
as provided in Section 24 hereof), or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by such Rights Certificate have been exercised in accordance
with the provisions of this Agreement.

     Section 17 Concerning the Rights Agent.

          (a) The Company agrees to pay to the Rights Agent reasonable compensation for all services
rendered by it hereunder, and, from time to time, on demand of the Rights Agent, its reasonable
expenses and counsel fees and other disbursements incurred in the preparation, administration and
execution of this Agreement and the exercise and performance of its duties hereunder. The Company
also agrees to indemnify the Rights Agent for, and to hold it harmless

23

 

against, any loss, liability, damage, judgment, fine, penalty, claim, demand, cost or expense
incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent,
for anything done or omitted by the Rights Agent in connection with the acceptance and
administration of this Agreement and the performance of its duties and responsibilities and the
exercise of its rights hereunder, including the costs and expenses of defending against any claim
of liability arising therefrom, directly or indirectly. The costs and expenses of enforcing this
right of indemnification will also be paid by the Company. The provisions of this Section 17 shall
survive the exercise, exchange, redemption or expiration of the Rights, the resignation,
replacement or removal of the Rights Agent and the termination of this Agreement.

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

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

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

          (a) Any Person into which the Rights Agent or any successor Rights Agent may be merged or with
which it may be consolidated, or any Person resulting from any merger or consolidation to which the
Rights Agent or any successor Rights Agent is a party, or any Person succeeding to the corporate
trust, stock transfer or other shareholder services business of the Rights Agent or any successor
Rights Agent will be the successor to the Rights Agent under this Agreement without the execution
or filing of any paper or any further act on the part of any of the parties hereto; provided that
such Person would be eligible for appointment as a successor Rights Agent under the provisions of
Section 20 hereof. If at the time such successor Rights Agent shall succeed to the agency created
by this Agreement any of the Rights Certificates shall have been countersigned but not delivered,
any such successor Rights Agent may adopt the countersignature of a predecessor Rights Agent and
deliver such Rights Certificates so countersigned; and if at that time any of the Rights
Certificates shall not have been countersigned, any successor Rights Agent may countersign such
Rights Certificates either in the name of the predecessor or in the name of the successor Rights
Agent; and in all such cases such Rights Certificates shall have the full force provided in the
Rights Certificates and in this Agreement.

          (b) If at any time the name of the Rights Agent changes and at such time any of the Rights
Certificates have been countersigned but not delivered, the Rights Agent may adopt

24

 

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

     Section 19 Duties of the Rights Agent. The Rights Agent undertakes to perform the duties and
obligations expressly imposed by this Agreement (and no implied duties) upon the following terms
and conditions, by all of which the Company and the holders of Rights Certificates, by their
acceptance thereof, shall be bound:

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

          (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem
it necessary or desirable that any fact or matter (including, without limitation, the identity of
any Acquiring Person and the determination of the Current Per Share Market Price) be proved or
established by the Company prior to taking, suffering or omitting to take any action hereunder,
such fact or matter (unless other evidence in respect thereof be herein specifically prescribed)
may be deemed to be conclusively proved and established by a certificate signed by any Authorized
Officer and delivered to the Rights Agent; and such certificate, pursuant to its terms, shall be
full and complete authorization and protection to the Rights Agent for any action taken or suffered
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 Rights Certificates (except its countersignature
thereof) and it shall not be required to verify the same, but all such statements and recitals are
and shall be deemed to have been made by the Company only.

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

25

 

Agreement or any Rights Certificate or as to whether any shares of Common Stock or Preferred
Stock shall, when so issued, be validly authorized and issued, fully paid and nonassessable.

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

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

          (h) The Rights Agent and any stockholder, director, officer or employee of the Rights Agent
may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily
interested in any transaction in which the Company may be interested, or contract with or lend
money to the Company or otherwise act as fully and freely as though it were not 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 (through its directors, officers or employees) or by or
through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for
any act, omission, default, neglect or misconduct of any such attorneys or agents or for any loss
to the Company or any other Person resulting from any such act, default, neglect or misconduct,
provided reasonable care was exercised in the selection and continued employment thereof.

          (j) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or
transfer, the certificate contained in the form of assignment or the form of election to purchase
set forth on the reverse thereof, as the case may be, has not been completed or indicates an
affirmative response to clause 1 or 2 thereof, the Rights Agent shall not take any further action
with respect to such requested exercise or transfer without first consulting with the Company.

26

 

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

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

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

     Section 20 Change of the Rights Agent. The Rights Agent or any successor Rights Agent may
resign and be discharged from its duties under this Agreement upon 30 calendar days’ written notice
given to the Company in accordance with Section 25 hereof, and to each transfer agent of the shares
of Common Stock and Preferred Stock known to the Rights Agent, respectively, by registered or
certified mail, and, if such resignation occurs after the Distribution Date, to the registered
holders of the Rights Certificates in accordance with Section 25 hereof. The Company may remove
the Rights Agent or any successor Rights Agent upon 30 calendar days’ written notice, given to the
Rights Agent or successor Rights Agent, as the case may be, in accordance with Section 25 hereof,
and to each transfer agent of the shares of Common Stock and the Preferred Stock, by registered or
certified mail, and, if such removal occurs after the Distribution Date, to the holders of the
Rights Certificates in accordance with Section 25 hereof. If the Rights Agent shall resign or be
removed or shall otherwise become incapable of acting, the Company shall, in its sole discretion,
appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within
a period of 30 calendar days after giving notice of such removal or after it has been notified in
writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the
holder of a Rights Certificate (who shall, with such notice, submit such holder’s Rights
Certificate for inspection by the Company), then any registered holder of any Rights Certificate
may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any
successor Rights Agent, whether appointed by the Company or by such a court, shall be (a) a legal
business entity organized and doing business under the laws of the United States or of the State of
New York or of any other state of the United States, in good standing, which is authorized under
such laws to exercise corporate trust, stock transfer or shareholder services powers and which has
at the time of its appointment as Rights Agent a combined capital and surplus of at least
$100,000,000 or (b) an affiliate of a legal business entity described in clause (a) of this
sentence. After appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor
Rights Agent any property at the time held by it hereunder, and execute and deliver any further
assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of
any such appointment, the Company shall file notice thereof in writing with the predecessor Rights
Agent and each transfer agent of the shares

27

 

of Common Stock and the Preferred Stock, and, if such appointment occurs after the
Distribution Date, give a notice thereof in writing to the registered holders of the Rights
Certificates in accordance with Section 25 hereof. Failure to give any notice provided for in this
Section 20, however, or any defect therein, shall not affect the legality or validity of the
resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the
case may be.

     Section 21 Issuance of New Rights Certificates. Notwithstanding any of the provisions of this
Agreement or of the Rights to the contrary, the Company may, at its option, issue new Rights
Certificates evidencing Rights in such form as may be approved by the Board to reflect any
adjustment or change in the Purchase Price and the number or kind or class of shares or other
securities or property purchasable under the Rights Certificates made in accordance with the
provisions of this Agreement. In addition, in connection with the issuance or sale by the Company
of shares of Common Stock following the Distribution Date and prior to the Expiration Date, the
Company (a) shall, with respect to shares of Common Stock so issued or sold pursuant to the
exercise of stock options or under any employee plan or arrangement, granted or awarded as of the
Distribution Date, or upon the exercise, exchange or conversion of securities hereinafter issued by
the Company and (b) may, in any other case, if deemed necessary or appropriate by the Board, issue
Rights Certificates representing the appropriate number of Rights in connection with such issuance
or sale; provided, however, that (i) no such Rights Certificate shall be issued if,
and to the extent that, in its good faith judgment the Board determines that the issuance of such
Rights Certificate could have a material adverse tax consequence to the Company or to the Person to
whom or which such Rights Certificate otherwise would be issued, and (ii) no such Rights
Certificate shall be issued if, and to the extent that, appropriate adjustment shall otherwise have
been made in lieu of the issuance thereof.

     Section 22 Redemption.

          (a) The Board may, at any time prior to the Close of Business on the tenth calendar day
following the Stock Acquisition Date, redeem all but not less than all of the then-outstanding
Rights at the Redemption Price. Notwithstanding anything contained in this Agreement to the
contrary, the Rights shall not be exercisable after the first occurrence of a Section 11(a)(ii)
Event until such time as the right of redemption has expired. The redemption of the Rights may be
made effective at such time, on such basis and with such conditions as the Board in its sole
discretion may establish. The Company may, at its option, pay the Redemption Price in cash,
securities or any other form of consideration deemed appropriate by the Board.

          (b) Immediately upon the effectiveness of the action of the Board ordering the redemption of
the Rights, and without any further action and without any notice, the right to exercise the Rights
shall terminate and the only right thereafter of the holders of Rights shall be to receive the
Redemption Price for each Right so held without interest thereon. Promptly after the effectiveness
of the redemption of the Rights, the Company shall give notice of such redemption to the Rights
Agent and the holders of the then outstanding Rights in accordance with Section 25 hereof;
provided, however, that the failure to give, or any defect in, any such notice will
not affect the validity of the redemption of the Rights. Any notice given in accordance with
Section 25 hereof shall be deemed given, whether or not the holder receives the

28

 

notice. Each such notice of redemption shall state the method by which the payment of the
Redemption Price shall be made.

     Section 23 Exchange.

          (a) The Board may, at its option, at any time after a Section 11(a)(ii) Event, exchange all or
part of the then-outstanding and exercisable Rights (which shall not include Rights that have
become void pursuant to the provisions of Section 11(a)(ii) hereof) for shares of Common Stock at
an exchange ratio of one share of Common Stock per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date hereof (such amount per
Right being hereinafter referred to as the “Exchange Ratio”). The exchange of the Rights
by the Board may be made effective at such time, on such basis and with such conditions as the
Board in its sole discretion may establish.

          (b) Immediately upon the effectiveness of the action of the Board ordering the exchange of any
Rights 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 give a notice of any such
exchange to all of the holders of the Rights so exchanged in accordance with Section 25 hereof.
Any notice given in accordance with Section 25 hereof shall be deemed given, whether or not the
holder receives the notice. Each such notice of exchange will state the method by which the
exchange of the shares of Common Stock, for Rights shall be effected and, in the event of any
partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be
effected pro rata based on the number of Rights (other than Rights which have become void pursuant
to the provisions of Section 11(a)(ii) hereof) held by each holder of Rights.

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

          (d) Prior to effecting an exchange pursuant to this Section 23, the Board may direct the
Company to enter into a trust agreement in such form and with such terms as the Board shall then
approve (the “Trust Agreement”). If the Board so directs, the Company shall enter into the
Trust Agreement and shall issue to the trust created by such agreement (the “Trust”) all of
the shares of Common Stock, Preferred Stock or other securities, if any, issuable pursuant to the
exchange, 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

29

 

are deposited in the Trust) shall be entitled to receive such only from the Trust and solely
upon compliance with the relevant terms and provisions of the Trust Agreement.

     Section 24 Notice of Certain Events.

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

          (b) If a Section 11(a)(ii) Event occurs, then (i) the Company shall as soon as practicable
thereafter give to the Rights Agent and each holder of a Rights Certificate, to the extent feasible
and in accordance with Section 25 hereof, a notice of the occurrence of such event, which shall
specify the event and the consequences of the event to holders of Rights and (ii) all references in
Section 24(a) hereof to shares of Preferred Stock shall be deemed thereafter to refer to shares of
Common Stock or, if appropriate, other securities.

     Section 25 Notices.

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

30

 

D.R. Horton, Inc.

301 Commerce Street, Suite 500

Fort Worth, Texas 76102

Attention: Chief Legal Officer

Telephone: (817) 390-8200

Facsimile: (817) 928-6120

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

American Stock Transfer & Trust Company, LLC

59 Maiden Lane

New York, New York

Attention: Client Administrator

Telephone: (718) 921-8521

Facsimile: (718) 765-8741

          (c) Notices or demands authorized by this Agreement to be given or made by the Company or the
Rights Agent to the holder of any Rights Certificate (or, if prior to the Distribution Date, to the
holder of certificates representing shares of Common Stock or an Ownership Statement) 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 Rights Agent (or, if prior to
the Distribution Date, of the transfer agent for the shares of Common Stock).

     Section 26 Supplements and Amendments. Except as otherwise provided in this Section 26, for
so long as the Rights are redeemable pursuant to Section 22 hereof, the Company may in its sole and
absolute discretion, and the Rights Agent shall, if the Company so directs, supplement or amend any
provision of this Agreement in any respect without the approval of any holders of Rights. From and
after the time at which the Rights cease to be redeemable pursuant to Section 22 hereof, the
Company may and the Rights Agent shall, if the Company so directs, supplement or amend this
Agreement without the approval of any holders of Rights in order (i) to cure any ambiguity, (ii) to
correct or supplement any provision contained herein which may be defective or inconsistent with
any other provisions herein, (iii) to shorten or lengthen any time period hereunder or (iv) to
amend or supplement the provisions hereunder in any manner which the Company may deem necessary or
desirable; provided, however, that no such supplement or amendment shall adversely
affect the interests of the holders of Rights (other than an Acquiring Person or any Affiliate or
Associate of an Acquiring Person or certain of their transferees), and no such amendment may cause
the Rights again to become redeemable or cause this Agreement again to become amendable other than
in accordance with this sentence. Upon the delivery of a certificate from an appropriate officer
of the Company which states that the proposed supplement

31

 

or amendment is in compliance with the terms of this Section 26, the Rights Agent shall
execute such supplement or amendment; provided, that any supplement or amendment that does
not amend Section 17, Section 18, Section 19 or Section 20 hereof in a manner adverse to the Rights
Agent shall become effective immediately upon execution by the Company, whether or not also
executed by the Rights Agent. Notwithstanding anything herein to the contrary, the Rights Agent
shall not be obligated to enter into any supplement or amendment that affects the Rights Agent’s
own right, duties, obligations or immunities under this Agreement.

     Section 27 Successors. All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective
successors and assigns hereunder.

     Section 28 Determinations and Actions by the Board.

          (a) For all purposes of this Agreement, any calculation of the number of shares of Common
Stock or any other class of capital stock outstanding at any particular time, including for
purposes of determining the particular percentage of such outstanding shares of Common Stock of
which any Person is the Beneficial Owner, shall be made in accordance with the provisions of
Section 382 of the Code, or any successor provision or replacement provision.

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

          (c) All such actions, calculations, interpretations and determinations which are done or made
by the Board in good faith shall be final, conclusive and binding on the Company, the Rights Agent,
the holders of the Rights and all other parties. Unless otherwise notified, the Rights Agent shall
always be entitled to assume that the Board acted in good faith and the Rights Agent shall be fully
protected and shall incur no liability in reliance thereon.

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

     Section 30 Severability. If any term, provision, covenant or restriction of this Agreement is held
by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated; provided,
however, that notwithstanding anything in this Agreement to the contrary,

32

 

if any such term, provision, covenant or restriction is held by such court or authority to be
invalid, void, or unenforceable and the Board determines in its good faith judgment that severing
the invalid language from this Agreement would adversely affect the purpose or effect of this
Agreement, the right of redemption set forth in Section 22 hereof shall be reinstated and shall not
expire until the Close of Business on the tenth Business Day following the date of such
determination by the Board.

     Section 31 Governing Law. This Agreement, each Right and each Rights Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of Delaware and for all
purposes shall be governed by and construed in accordance with the laws of such State applicable to
contracts made and to be performed entirely within such State.

     Section 32 Counterparts; Facsimiles and PDFs. 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 facsimile or
        .pdf signature delivered electronically shall constitute an original signature for all purposes.

     Section 33 Descriptive Headings. Descriptive headings of the several sections of this
Agreement are inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

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.

	 	 	 	 	 
	 	 	D.R. HORTON, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Bill W. Wheat
	 

	 	 	 	 
	 

	 	 	 	Bill W. Wheat
	 

	 	 	 	Executive Vice President and
	 

	 	 	 	Chief Financial Officer
	 
	 	 	 	 
	 	 	AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Herbert J. Lemmer
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Herbert J. Lemmer
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 

Signature Page to Section 382 Rights Agreement

 

Exhibit A

FORM OF

CERTIFICATE OF DESIGNATION, PREFERENCES, AND

RIGHTS OF SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

of

D.R. HORTON, INC.

     Pursuant to Section 151 of the General Corporation Law of the State of Delaware:

     D.R. Horton, Inc., a corporation organized and existing under the General Corporation Law of
the State of Delaware (the “Corporation”), in accordance with the provisions of Section 103
thereof, DOES HEREBY CERTIFY:

     That pursuant to the authority conferred upon the Board of Directors by the Amended and
Restated Certificate of Incorporation of the Corporation, as amended (the “Certificate of
Incorporation”), the said Board of Directors on August 19, 2009, adopted the following
resolution creating a series of Preferred Stock designated as Series A Junior Participating
Preferred Stock (as hereinafter defined):

     RESOLVED, that pursuant to the authority vested in the Board of Directors of the Corporation
in accordance with the provisions of its Certificate of Incorporation, a series of Preferred Stock
of the Corporation be and it hereby is created, and that the designation and amount thereof and the
voting powers, preferences and relative, participating, optional and other special rights of the
shares of such series, and the qualifications, limitations, and restrictions thereof are as
follows:

     Section 1. Designation and Amount. The shares of such series shall be designated as
“Series A Junior Participating Preferred Stock” and the number of shares constituting such series
shall be 50,000.

     Section 2. Dividends and Distributions.

          (A) Subject to the prior and superior rights of the holders of any shares of any series of
Preferred Stock ranking prior and superior to the shares of Series A Junior Participating Preferred
Stock with respect to dividends, the holders of shares of Series A Junior Participating Preferred
Stock, in preference to the holders of shares of Common Stock, par value $0.01 per share, of the
Corporation (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 the last day of March, June, September, and
December in each year (each such date being referred to herein as a “Quarterly Dividend Payment
Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a
share or fraction of a share of Series A Junior Participating Preferred Stock, in an amount per
share (rounded to the nearest cent) equal to the greater of (a) $1.00 or (b) subject to the
provision for adjustment hereinafter set forth, 10,000 times the aggregate per share amount of all
cash dividends, and 10,000 times the aggregate per share amount (payable in kind) of all non-

A-1

 

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 share of Series A Junior Participating Preferred Stock. In the event the Corporation
shall at any time after August 19, 2009 (the “Rights Dividend Declaration Date”) (i) pay
any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding
Common Stock, (iii) combine the outstanding Common Stock into a smaller number of shares or
(iv) issue any shares of its capital stock in a reclassification of the outstanding shares of
Common Stock (including any such reclassification in connection with a consolidation or merger in
which the Corporation is the continuing or surviving corporation), then in each such case the
amount to which holders of shares of Series A Junior Participating 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 Corporation shall declare a dividend or distribution on the Series A Junior
Participating Preferred Stock as provided in Paragraph (A) above immediately after it declares a
dividend or distribution on the Common Stock (other than a dividend payable in shares of Common
Stock); provided that, in the event no dividend or distribution shall have been declared on
the Common Stock during the period between any Quarterly Dividend Payment Date and the next
subsequent Quarterly Dividend Payment Date, a dividend of $1.00 per share on the Series A Junior
Participating Preferred Stock shall nevertheless be payable on such subsequent Quarterly Dividend
Payment Date.

          (C) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Junior
Participating Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of
issue of such shares of Series A Junior Participating Preferred Stock, unless the date of issue of
such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which
case dividends on such shares shall begin to accrue from the date of issue of such shares, or
unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date
for the determination of holders of shares of Series A Junior Participating Preferred Stock
entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either
of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend
Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares
of Series A Junior Participating Preferred Stock in an amount less than the total amount of such
dividends at the time accrued and payable on such shares shall be allocated pro rata on a
share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix
a record date for the determination of holders of shares of Series A Junior Participating Preferred
Stock entitled to receive payment of a dividend or distribution declared thereon, which record date
shall be no more than 30 days prior to the date fixed for the payment thereof.

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

A-2

 

          (A) Subject to the provision for adjustment hereinafter set forth, each share of Series A
Junior Participating Preferred Stock shall entitle the holder thereof to 10,000 votes on all
matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation
shall at any time after the Rights Dividend Declaration Date (i) declare any dividend on Common
Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or
(iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case
the number of votes per share to which holders of shares of Series A Junior Participating Preferred
Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by
a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately
after such event and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

          (B) Except as otherwise provided herein or by law, the holders of shares of Series A Junior
Participating Preferred Stock and the holders of shares of Common Stock shall vote together as one
class on all matters submitted to a vote of stockholders of the Corporation.

     (C) (i) If at any time dividends on any Series A Junior Participating Preferred Stock
shall be in arrears in an amount equal to six quarterly dividends thereon, the occurrence of
such contingency shall mark the beginning of a period (herein called a “default
period”) that shall extend until such time when all accrued and unpaid dividends for all
previous quarterly dividend periods and for the current quarterly dividend period on all
shares of Series A Junior Participating Preferred Stock then outstanding shall have been
declared and paid or set apart for payment. During each default period, all holders of
Preferred Stock (including holders of the Series A Junior Participating Preferred Stock)
with dividends in arrears in an amount equal to six quarterly dividends thereon, voting as a
class, irrespective of series, shall have the right to elect two directors.

     (ii) During any default period, such voting right of the holders of Series A Junior
Participating Preferred Stock may be exercised initially at a special meeting called
pursuant to subparagraph (iii) of this Section 3(C) or at any annual meeting of
stockholders, and thereafter at annual meetings of stockholders, provided that such
voting right shall not be exercised unless the holders of 10% in number of shares of
Preferred Stock outstanding shall be present in person or by proxy. The absence of a quorum
of the holders of Common Stock shall not affect the exercise by the holders of Preferred
Stock of such voting right. At any meeting at which the holders of Preferred Stock shall
exercise such voting right initially during an existing default period, they shall have the
right, voting as a class, to elect directors to fill such vacancies, if any, in the Board of
Directors as may then exist up to two directors or, if such right is exercised at an annual
meeting, to elect two directors. If the number that may be so elected at any special
meeting does not amount to the required number, the holders of Preferred Stock shall have
the right to make such increase in the number of directors as shall be necessary to permit
the election by them of the required number. After the holders of Preferred Stock shall
have exercised their right to elect directors in any default period and during the
continuance of such period, the number of directors shall not be increased or decreased
except by vote of the holders of Preferred Stock as herein provided or pursuant to the
rights of any equity securities ranking senior to or pari passu with the
Series A Junior Participating Preferred Stock.

A-3

 

     (iii) Unless the holders of Preferred Stock shall, during an existing default period,
have previously exercised their right to elect directors, the Board of Directors may order,
or any stockholder or stockholders owning in the aggregate not less than 10% of the total
number of shares of Preferred Stock outstanding, irrespective of series, may request, the
calling of a special meeting of the holders of Preferred Stock, which meeting shall
thereupon be called by the Board of Directors. Notice of such meeting and of any annual
meeting at which holders of Preferred Stock are entitled to vote pursuant to this
Paragraph (C)(iii) shall be given to each holder of record of Preferred Stock by mailing a
copy of such notice to such holder at such holder’s last address as the same appears on the
books of the Corporation. Such meeting shall be called for a time not earlier than 20 days
and not later than 60 days after such order or request or in default of the calling of such
meeting within 60 days after such order or request, such meeting may be called on similar
notice by any stockholder or stockholders owning in the aggregate not less than 10% of the
total number of shares of Preferred Stock outstanding. Notwithstanding the provisions of
this Paragraph (C)(iii), no such special meeting shall be called during the period within
60 days immediately preceding the date fixed for the next annual meeting of the
stockholders.

     (iv) In any default period, the holders of Common Stock, and other classes of stock of
the Corporation if applicable, shall continue to be entitled to elect the whole number of
directors until the holders of Preferred Stock shall have exercised their right to elect two
directors voting as a class, after the exercise of which right (x) the directors so elected
by the holders of Preferred Stock shall continue in office until their successors shall have
been elected by such holders or until the expiration of the default period, and (y) any
vacancy in the Board of Directors may (except as provided in Paragraph (C)(ii) of this
Section 3) be filled by vote of a majority of the remaining directors theretofore elected by
the holders of the class of stock that elected the director whose office shall have become
vacant. References in this Paragraph (C) to directors elected by the holders of a
particular class of stock shall include directors elected by such directors to fill
vacancies as provided in clause (y) of the foregoing sentence.

     (v) Immediately upon the expiration of a default period, (x) the right of the holders
of Preferred Stock as a class to elect directors shall cease, (y) the term of any directors
elected by the holders of Preferred Stock as a class shall terminate, and (z) the number of
directors shall be such number as may be provided for in the Certificate of Incorporation or
Bylaws irrespective of any increase made pursuant to the provisions of Paragraph (C)(ii) of
this Section 3 (such number being subject, however, to change thereafter in any manner
provided by law or in the Certificate of Incorporation or Bylaws). Any vacancies in the
Board of Directors effected by the provisions of clauses (y) and (z) in the preceding
sentence may be filled by a majority of the remaining directors.

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

A-4

 

     Section 4. Certain Restrictions.

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

     (i) declare or pay dividends on, or make any other distributions on, any shares of
stock ranking junior (either as to dividends or upon liquidation, dissolution, or winding
up) to the Series A Junior Participating Preferred Stock;

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

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

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

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

     Section 5. Reacquired Shares. Any shares of Series A Junior Participating Preferred
Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired
and cancelled promptly after the acquisition thereof. All such shares shall upon their
cancellation become authorized but unissued shares of Preferred Stock and may be reissued as part
of a new series of Preferred Stock to be created by resolution or resolutions of the Board of
Directors, subject to the conditions and restrictions on issuance set forth herein, in the
Certificate

A-5

 

of Incorporation, or in any other Certificate of Designation creating a series of Preferred
Stock or any similar stock, or as otherwise required by law.

     Section 6. Liquidation, Dissolution, or Winding Up.

          (A) Upon any liquidation (voluntary or otherwise), dissolution, or winding up of the
Corporation, no distribution shall be made to the holders of shares of stock ranking junior (either
as to dividends or upon liquidation, dissolution, or winding up) to the Series A Junior
Participating Preferred Stock unless, prior thereto, the holders of shares of Series A Junior
Participating Preferred Stock shall have received an amount equal to $10,000 per share of Series A
Participating Preferred Stock, plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such payment (the “Series A
Liquidation Preference”). Following the payment of the full amount of the Series A Liquidation
Preference, no additional distributions shall be made to the holders of shares of Series A Junior
Participating 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 A Liquidation Preference by (ii) 10,000 (as appropriately adjusted as
set forth in subparagraph (C) below to reflect such events as stock splits, stock dividends, and
recapitalizations with respect to the Common Stock) (such number in clause (ii), the
“Adjustment Number”). Following the payment of the full amount of the Series A Liquidation
Preference and the Common Adjustment in respect of all outstanding shares of Series A Junior
Participating Preferred Stock and Common Stock, respectively, holders of Series A Junior
Participating 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 one with respect to such Preferred Stock and Common Stock, on a per share basis, respectively.

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

          (C) In the event the Corporation shall at any time after the Rights Dividend Declaration Date
(i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the
outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of
shares, then in each such case the Adjustment Number in effect immediately prior to such event
shall be adjusted by multiplying such Adjustment Number by a fraction, the numerator of which is
the number of shares of Common Stock outstanding immediately after such event and the denominator
of which is the number of shares of Common Stock that were outstanding immediately prior to such
event.

     Section 7. Consolidation, Merger, etc. In case the Corporation shall enter into any
consolidation, merger, combination, or other transaction in which the shares of Common Stock are
exchanged for or changed into other stock or securities, cash, or any other property, then in any
such case the shares of Series A Junior Participating Preferred Stock shall at the same time be
similarly exchanged or changed in an amount per share (subject to the provision for

A-6

 

adjustment hereinafter set forth) equal to 10,000 times the aggregate amount of stock,
securities, cash, or any other property (payable in kind), as the case may be, into which or for
which each share of Common Stock is changed or exchanged. In the event the Corporation shall at
any time after the Rights Dividend Declaration Date (i) declare any dividend on Common Stock
payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine
the outstanding Common Stock into a smaller number of shares, then in each such case the amount set
forth in the preceding sentence with respect to the exchange or change of shares of Series A Junior
Participating Preferred Stock shall be adjusted by multiplying such amount by a fraction, the
numerator of which is the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were outstanding
immediately prior to such event.

     Section 8. No Redemption. The shares of Series A Junior Participating Preferred Stock
shall not be redeemable.

     Section 9. Ranking. The Series A Junior Participating Preferred Stock shall rank
junior to all other series of the Corporation’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. Amendment. At any time when any shares of Series A Junior Participating
Preferred Stock are outstanding, neither the Certificate of Incorporation of the Corporation nor
this Certificate of Designation shall be amended in any manner that would materially alter or
change the powers, preferences, or special rights of the Series A Junior Participating Preferred
Stock so as to affect them adversely without the affirmative vote of the holders of two-thirds or
more of the outstanding shares of Series A Junior Participating Preferred Stock, voting separately
as a class.

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

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

A-7

 

     IN WITNESS WHEREOF, D.R. Horton, Inc. has caused this Certificate of Designation to be signed
by the undersigned this ___ day of August, 2009.

	 	 	 	 	 	 	 
	 	 	D.R. HORTON, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

A-8

 

Exhibit B

FORM OF RIGHTS CERTIFICATE

			
	 	 	 
	Certificate No. R-
	 	                     Rights

     NOT EXERCISABLE AFTER AUGUST 19, 2019 OR EARLIER IF REDEEMED OR EXCHANGED BY THE COMPANY. THE
RIGHTS ARE SUBJECT TO REDEMPTION AND EXCHANGE AT THE OPTION OF THE COMPANY, ON THE TERMS SET FORTH
IN THE SECTION 382 RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES AS SET FORTH IN THE SECTION 382
RIGHTS AGREEMENT, RIGHTS THAT ARE OR WERE BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR ANY
AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE SECTION 382 RIGHTS
AGREEMENT) MAY BECOME NULL AND VOID.

RIGHTS CERTIFICATE

D.R. HORTON, 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 Section 382 Rights Agreement, dated as of August 19, 2009
(the “Rights Agreement”), between D.R. Horton, Inc., a Delaware corporation (the
“Company”), and American Stock Transfer & Trust Company, LLC (the “Rights Agent”),
to purchase from the Company at any time after the Distribution Date (as such term is defined in
the Rights Agreement) and prior to 5:00 p.m. (New York City time) on the Expiration Date (as such
term is defined in the Rights Agreement) at the office or offices of the Rights Agent designated
for such purpose, or its successor as Rights Agent, one ten-thousandth of a fully paid
nonassessable share of Series A Junior Participating Preferred Stock, par value $0.10 per share
(the “Preferred Stock”), of the Company, at a purchase price of $80.00 per one
ten-thousandth of a share of Preferred Stock (the “Purchase Price”), upon presentation and
surrender of this Rights Certificate with the Form of Election to Purchase and related Certificate
duly executed. If this Rights Certificate is exercised in part, the holder will be entitled to
receive upon surrender hereof another Rights Certificate or Rights Certificates for the number of
whole Rights not exercised. The number of Rights evidenced by this Rights Certificate (and the
number of one ten-thousandths of a share of Preferred Stock which may be purchased upon exercise
thereof) set forth above, and the Purchase Price set forth above, are the number and Purchase Price
as of the date of the Rights Agreement, based on the shares of Preferred Stock as constituted at
such date. All capitalized terms used herein but not defined herein shall have the meanings
ascribed to such terms in the Rights Agreement.

     As provided in the Rights Agreement, the Purchase Price, the number or kind of shares of
Preferred Stock (or other securities, as the case may be) which may be purchased upon the exercise
of the Rights evidenced by this Rights Certificate and the number of Rights outstanding are subject
to adjustment upon the occurrence of certain events.

     This Rights Certificate is subject to all of the terms, provisions and conditions of the
Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by

B-1

 

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

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

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

     Subject to the provisions of the Rights Agreement, the Rights evidenced by this Rights
Certificate may be redeemed by the Company at its option at a redemption price of $0.00001 per
Right at any time prior to ten days after the Stock Acquisition Date. In addition, following the
time any person becomes an Acquiring Person, the Company may at its option exchange the Rights, in
whole or in part, for shares of common stock, Preferred Stock or other preferred stock having
equivalent rights, privileges and preferences as the Preferred Stock. The Rights Agreement may be
supplemented and amended by the Company, as provided therein.

     The Company is not required to issue fractional shares of Preferred Stock (other than
fractions which are integral multiples of one ten-thousandth of a share of Preferred Stock, which
may, at the option of the Company, be evidenced by depositary receipts) or other securities

B-2

 

issuable, as the case may be, upon the exercise of any Right or Rights evidenced hereby. In
lieu of issuing fractional shares of Preferred Stock or other securities, the Company may make a
cash payment, as provided in the Rights Agreement.

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

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

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

B-3

 

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

Dated as of                     .

	 	 	 	 	 	 	 
	 	 	D.R. HORTON, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Countersigned:

AMERICAN STOCK TRANSFER & TRUST

COMPANY, LLC

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signature
	 	 

B-4

 

[Form of Reverse Side of Rights Certificate]

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder desires to transfer the Rights Certificate.)

     FOR VALUE RECEIVED                                                              hereby sells, assigns
and transfers unto
            
                       
              

      

(Please print name and address of transferee)

      

      

(Please spell out and include in numerals the

number of Rights being transferred by this Assignment)

of the Rights evidenced by this Rights Certificate, together with all right, title and interest
therein, and does hereby irrevocably constitute and appoint                                          Attorney, to
transfer the number of Rights indicated above on the books of the within named Company, with full
power of substitution.

Dated:                                         , ______

	 	 	 	 	 
	 

	 	 

Signature
	 	 

Signature Guaranteed:

B-5

 

Certificate

     The undersigned hereby certifies by checking the appropriate boxes that:

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

          (2) after due inquiry and to the best knowledge of the undersigned, he, she, or it
[     ] did [     ] did not acquire the Rights evidenced by this Rights Certificate from any Person who
is, was, or subsequently became an Acquiring Person or an Affiliate or Associate of an Acquiring
Person.

	 	 	 	 	 
	Dated:                                         , ___
	 	 	 	 
	 

	 	 

Signature
	 	 

Signature Guaranteed:

NOTICE

     The signature to the foregoing Assignment and Certificate must correspond to the name as
written upon the face of this Rights Certificate in every particular, without alteration or
enlargement or any change whatsoever.

B-6

 

[Form of Reverse Side of Rights Certificate — continued]

FORM OF ELECTION TO PURCHASE

(To be executed by the registered holder if such holder desires to

exercise any or all Rights evidenced by the Rights Certificate.)

To: D.R. Horton, Inc.:

     The undersigned hereby irrevocably elects to exercise                                         
(                    ) Rights evidenced by this Rights Certificate to purchase the Preferred Shares
issuable upon the exercise of the Rights (or such other securities of the Company or of any other
person that may be issuable upon the exercise of the Rights) and requests that certificates for
such shares be issued in the name of and delivered to or that such shares be credited to the
book-entry account of:

      

(Please print social security or other identifying number)

      

      

(Please print name and address)

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

      

(Please print social security or other identifying number)

      

      

(Please print name and address)

Dated:                                         , _____

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 

Signature
	 	 

Signature Guaranteed:

B-7

 

Certificate

     The undersigned hereby certifies by checking the appropriate boxes that:

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

          (2) after due inquiry and to the best knowledge of the undersigned, he, she, or it
[ ] did [ ] did not acquire the Rights evidenced by this Rights Certificate from any Person who
is, was or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person.

	 	 	 	 	 
	Dated:                                         , ___
	 	 	 	 
	 

	 	 

Signature
	 	 

Signature Guaranteed:

NOTICE

     The signature to the foregoing Election to Purchase and Certificate must correspond to the
name as written upon the face of this Rights Certificate in every particular, without alteration or
enlargement or any change whatsoever.

B-8

 

Exhibit C

UNDER CERTAIN CIRCUMSTANCES AS SET FORTH IN THE SECTION 382 RIGHTS
AGREEMENT, RIGHTS THAT ARE OR WERE BENEFICIALLY OWNED BY AN
ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE OF AN ACQUIRING
PERSON (AS SUCH TERMS ARE DEFINED IN THE SECTION 382 RIGHTS
AGREEMENT) MAY BECOME NULL AND VOID.

SUMMARY OF RIGHTS

     On August 19, 2009, the Board of Directors (the “Board”) of D.R. Horton, Inc., a
Delaware corporation (the “Company”), declared a dividend of one preferred share purchase
right (each, a “Right”) for each outstanding share of common stock, par value $0.01, of the
Company. The dividend is payable on August 31, 2009 to our stockholders of record as of the close
of business on August 31, 2009.

     This summary of rights provides only a general description and should be read together with
the Section 382 Rights Agreement, dated as of August 19, 2009, between the Company and American
Stock Transfer & Trust Company, LLC, as Rights Agent (the “Rights Agreement”). All
capitalized terms used herein but not defined herein shall have the meanings ascribed to such terms
in the Rights Agreement. Upon written request, the Company will provide a copy of the Rights
Agreement free of charge to any of its stockholders.

     Our Board adopted the Rights Agreement in an effort to protect stockholder value by attempting
to diminish the risk that our ability to use our net operating losses and unrealized losses
(collectively, the “NOLs”) to reduce potential future federal income tax obligations may
become substantially limited. We have experienced and continue to experience substantial operating
losses, including realized losses for tax purposes from sales of inventory and land previously
written down for financial statement purposes, which would produce NOLs. Under the Internal
Revenue Code and regulations promulgated by the U.S. Treasury Department, we may “carry forward”
these NOLs in certain circumstances to offset any current and future taxable income and thus reduce
our federal income tax liability, subject to certain requirements and restrictions. To the extent
that the NOLs do not otherwise become limited, we believe that we will be able to carry forward a
significant amount of NOLs, and therefore these NOLs could be a substantial asset to us. However,
if we experience an “ownership change,” as defined in Section 382 of the Internal Revenue Code, our
ability to use the NOLs, including NOLs later arising from sales of land and inventory previously
written down, may be substantially limited, and the timing of the usage of the NOLs could be
substantially delayed, which could therefore significantly impair the value of that asset. A
company experiences an “ownership change” for tax purposes if the percentage of stock owned by its
5% stockholders (as defined for tax purposes) increases by more than 50 percentage points over a
rolling three-year period.

     The Rights Agreement is intended to act as a deterrent to any person acquiring beneficial
ownership of 4.9% or more of our outstanding common stock within the meaning of the Internal
Revenue Code and the regulations promulgated thereunder without the approval of our Board.

C-1

 

Stockholders who beneficially own 4.9% or more of our outstanding common stock as of the close
of business on August 19, 2009 will not trigger the Rights Agreement so long as they do not acquire
any additional shares of our common stock at a time when they still beneficially own 4.9% or more
of our outstanding common stock. Our Board may, in its sole discretion, also exempt any person
from triggering the Rights Agreement.

     The Rights. Our Board authorized the issuance of one Right per each outstanding share of our
common stock payable to our stockholders of record as of the close of business on August 31, 2009.
One Right will also be issued together with each share of our common stock issued after August 31,
2009 but before the Distribution Date (as defined below) and, in certain circumstances, after the
Distribution Date. Subject to the terms, provisions and conditions of the Rights Agreement, if the
Rights become exercisable, each Right would initially represent the right to purchase from us one
ten-thousandth of a share of our Series A Junior Participating Preferred Stock, par value $0.10 per
share (the “Series A Preferred Stock”) for a purchase price of $80.00 (the “Purchase
Price”). If issued, each fractional share of Series A Preferred Stock would give the
stockholder approximately the same dividend, voting and liquidation rights as does one share of our
common stock. However, prior to exercise, a Right does not give its holder any rights as a
stockholder of the Company, including, without limitation, any dividend, voting or liquidation
rights.

     Initial Exercisability. The Rights will not be exercisable until the earlier of (i) ten
business days after a public announcement that a person has become an “Acquiring Person” by
acquiring beneficial ownership of 4.9% or more of our outstanding common stock (or, in the case of
a person that had beneficial ownership of 4.9% or more of our outstanding common stock as of the
close of business on August 19, 2009, by obtaining beneficial ownership of any additional shares of
our common stock) and (ii) ten business days (or such later date as may be specified by the Board
prior to such time as any person becomes an Acquiring Person) after the commencement of a tender or
exchange offer by or on behalf of a person that, if completed, would result in such person becoming
an Acquiring Person.

     We refer to the date that the Rights become exercisable as the “Distribution Date.”
Until the Distribution Date, our common stock certificates or the ownership statements issued with
respect to uncertificated shares of common stock will evidence the Rights. Any transfer of shares
of common stock prior to the Distribution Date will also constitute a transfer of the associated
Rights. After the Distribution Date, separate rights certificates will be issued and the Rights
may be transferred other than in connection with the transfer of the underlying shares of common
stock unless and until our Board has determined to effect an exchange pursuant to the Rights
Agreement (as described below).

     Flip-In Event. In the event that a person becomes an Acquiring Person, each holder of a
Right, other than Rights that are or, under certain circumstances, were beneficially owned by the
Acquiring Person (which will thereupon become void), will thereafter have the right to receive upon
exercise of a Right and payment of the Purchase Price, a number of shares of our common stock
having a market value of two times the Purchase Price. However, Rights are not exercisable
following the occurrence of a person becoming an Acquiring Person until such time as the Rights are
no longer redeemable by the Company (as described below).

C-2

 

     Redemption. At any time until ten calendar days following the Stock Acquisition Date, the
Board may redeem the Rights in whole, but not in part, at a price of $0.00001 per Right (the
“Redemption Price”). The redemption of the Rights may be made effective at such time, on
such basis and with such conditions as the Board 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.

     Exchange. At any time after a person becomes an Acquiring Person, the Board may exchange the
Rights (other than Rights that have become void), in whole or in part, at an exchange ratio of one
share of common stock, or a fractional share of Series A Preferred Stock (or of a share of a
similar class or series of the Company’s preferred stock having similar rights, preferences and
privileges) of equivalent value, per Right (subject to adjustment). Immediately upon an exchange
of any Rights, the right to exercise such Rights will terminate and the only right of the holders
of Rights will be to receive the number of shares of common stock (or fractional share of Series A
Preferred Stock or of a share of a similar class or series of the Company’s preferred stock having
similar rights, preferences and privileges) equal to the number of such Rights held by such holder
multiplied by the exchange ratio.

     Stockholder Approval. The Company intends to submit the Rights Agreement for stockholder
approval at a meeting of stockholders of the Company.

     Expiration. The Rights and the Rights Agreement will expire on the earliest of (i) August 19,
2019, (ii) the time at which the Rights are redeemed pursuant to the Rights Agreement, (iii) the
time at which the Rights are exchanged in full pursuant to the Rights Agreement, (iv) the effective
date of the repeal of Section 382 of the Internal Revenue Code, or any successor provision or
replacement provision, if the Board determines that the Rights Agreement is no longer necessary for
the preservation of Tax Benefits, (v) the beginning of a taxable year of the Company for which the
Board determines that the Company has or will have no Tax Benefits and (vi) August 19, 2010 if
stockholder approval of the Rights Agreement has not been obtained.

     Anti-Dilution Provisions. Our Board may adjust the Purchase Price, the number of shares of
Series A Preferred Stock or other securities or assets issuable and the number of outstanding
Rights to prevent dilution that may occur as a result of certain events, including among others, a
stock dividend, a stock split or a reclassification of the Series A Preferred Stock or our common
stock. With certain exceptions, no adjustments to the Purchase Price will be required until
cumulative adjustments amount to at least 1% of the Purchase Price.

     Amendments. For so long as the Rights are redeemable, our Board may supplement or amend any
provision of the Rights Agreement in any respect without the approval of the holders of the Rights.
From and after the time the Rights are no longer redeemable, our Board may supplement or amend the
Rights Agreement only to cure an ambiguity, to alter time period provisions, to correct
inconsistent provisions, or to make any additional changes to the Rights Agreement which the
Company may deem necessary or desirable, but only to the extent that those changes do not impair or
adversely affect any Rights holder (other than an Acquiring Person or any Affiliate or Associate of
an Acquiring Person or certain of their transferees) and do

C-3

 

not result in the Rights again becoming redeemable or the Rights Agreement again becoming
amendable other than in accordance with this sentence.

     The Company has filed a copy of the Rights Agreement with the Securities and Exchange
Commission as an exhibit to a Form 8-A filed on August 20, 2009. In addition, 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.

C-4exv4w6

EXHIBIT 4.6

Form of Indenture

MAJESCO ENTERTAINMENT COMPANY

ISSUER

and

 

INDENTURE TRUSTEE

INDENTURE

Dated as of                     ,           

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Other Definitions
	 	 	4	 
	Section 1.03 Incorporation by Reference of Trust Indenture Act
	 	 	4	 
	Section 1.04 Rules of Construction
	 	 	4	 
	 
	 	 	 	 
	ARTICLE II THE SECURITIES
	 	 	5	 
	 
	 	 	 	 
	Section 2.01 Issuable in Series
	 	 	5	 
	Section 2.02 Establishment of Terms of Series of Securities
	 	 	5	 
	Section 2.03 Execution and Authentication
	 	 	6	 
	Section 2.04 Registrar and Paying Agent
	 	 	7	 
	Section 2.05 Paying Agent to Hold Money in Trust
	 	 	7	 
	Section 2.06 Holder Lists
	 	 	8	 
	Section 2.07 Transfer and Exchange
	 	 	8	 
	Section 2.08 Mutilated, Destroyed, Lost and Stolen Securities
	 	 	8	 
	Section 2.09 Outstanding Securities
	 	 	8	 
	Section 2.10 Treasury Securities
	 	 	9	 
	Section 2.11 Temporary Securities
	 	 	9	 
	Section 2.12 Cancellation
	 	 	9	 
	Section 2.13 Defaulted Interest
	 	 	9	 
	Section 2.14 Global Securities
	 	 	9	 
	Section 2.15 CUSIP Numbers
	 	 	10	 
	 
	 	 	 	 
	ARTICLE III REDEMPTION
	 	 	11	 
	 
	 	 	 	 
	Section 3.01 Notice to Trustee
	 	 	11	 
	Section 3.02 Selection of Securities to be Redeemed
	 	 	11	 
	Section 3.03 Notice of Redemption
	 	 	11	 
	Section 3.04 Effect of Notice of Redemption
	 	 	12	 
	Section 3.05 Deposit of Redemption Price
	 	 	12	 
	Section 3.06 Securities Redeemed in Part
	 	 	12	 
	 
	 	 	 	 
	ARTICLE IV COVENANTS
	 	 	12	 

 

 

	 	 	 	 	 
	 	 	Page
	Section 4.01 Payment of Principal and Interest
	 	 	12	 
	Section 4.02 SEC Reports
	 	 	12	 
	Section 4.03 Compliance Certificate
	 	 	12	 
	Section 4.04 Stay, Extension and Usury Laws
	 	 	12	 
	 
	 	 	 	 
	ARTICLE V SUCCESSORS
	 	 	13	 
	 
	 	 	 	 
	Section 5.01 When Company May Merge, Etc
	 	 	13	 
	Section 5.02 Successor Corporation Substituted
	 	 	13	 
	 
	 	 	 	 
	ARTICLE VI DEFAULTS AND REMEDIES
	 	 	13	 
	 
	 	 	 	 
	Section 6.01 Events of Default
	 	 	13	 
	Section 6.02 Acceleration of Maturity; Rescission and Annulment
	 	 	14	 
	Section 6.03 Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	14	 
	Section 6.04 Trustee May File Proofs of Claim
	 	 	15	 
	Section 6.05 Trustee May Enforce Claims Without Possession of Securities
	 	 	15	 
	Section 6.06 Application of Money Collected
	 	 	15	 
	Section 6.07 Limitation on Suits
	 	 	15	 
	Section 6.08 Unconditional Right of Holders to Receive Principal and Interest
	 	 	16	 
	Section 6.09 Restoration of Rights and Remedies
	 	 	16	 
	Section 6.10 Rights and Remedies Cumulative
	 	 	16	 
	Section 6.11 Delay or Omission Not Waiver
	 	 	16	 
	Section 6.12 Control by Holders
	 	 	16	 
	Section 6.13 Waiver of Past Defaults
	 	 	17	 
	Section 6.14 Undertaking for Costs
	 	 	17	 
	 
	 	 	 	 
	ARTICLE VII TRUSTEE
	 	 	17	 
	 
	 	 	 	 
	Section 7.01 Duties of Trustee
	 	 	17	 
	Section 7.02 Rights of Trustee
	 	 	18	 
	Section 7.03 Individual Rights of Trustee
	 	 	19	 
	Section 7.04 Trustee’s Disclaimer
	 	 	19	 
	Section 7.05 Notice of Defaults
	 	 	19	 
	Section 7.06 Reports by Trustee to Holders
	 	 	19	 
	Section 7.07 Compensation and Indemnity
	 	 	19	 
	Section 7.08 Replacement of Trustee
	 	 	20	 
	Section 7.09 Successor Trustee by Merger, etc
	 	 	20	 
	Section 7.10 Eligibility; Disqualification
	 	 	20	 
	Section 7.11 Preferential Collection of Claims Against Company
	 	 	20	 
	 
	 	 	 	 
	ARTICLE VIII SATISFACTION AND DISCHARGE; DEFEASANCE
	 	 	20	 
	 
	 	 	 	 
	Section 8.01 Satisfaction and Discharge of Indenture
	 	 	20	 
	Section 8.02 Application of Trust Funds; Indemnification
	 	 	21	 
	Section 8.03 Legal Defeasance of Securities of any Series
	 	 	21	 
	Section 8.04 Covenant Defeasance
	 	 	23	 

 

 

TABLE OF CONTENTS

continued

	 	 	 	 	 
	 	 	Page
	Section 8.05 Repayment to Company
	 	 	23	 
	Section 8.06 Reinstatement
	 	 	23	 
	 
	 	 	 	 
	ARTICLE IX AMENDMENTS AND WAIVERS
	 	 	24	 
	 
	 	 	 	 
	Section 9.01 Without Consent of Holders
	 	 	24	 
	Section 9.02 With Consent of Holders
	 	 	25	 
	Section 9.03 Limitations
	 	 	25	 
	Section 9.04 Compliance with Trust Indenture Act
	 	 	25	 
	Section 9.05 Revocation and Effect of Consents
	 	 	25	 
	Section 9.06 Notation on or Exchange of Securities
	 	 	26	 
	Section 9.07 Trustee Protected
	 	 	26	 
	 
	 	 	 	 
	ARTICLE X MISCELLANEOUS
	 	 	26	 
	 
	 	 	 	 
	Section 10.01 Trust Indenture Act Controls
	 	 	26	 
	Section 10.02 Notices
	 	 	26	 
	Section 10.03 Communication by Holders with Other Holders
	 	 	27	 
	Section 10.04 Certificate and Opinion as to Conditions Precedent
	 	 	27	 
	Section 10.05 Statements Required in Certificate or Opinion
	 	 	27	 
	Section 10.06 Rules by Trustee and Agents
	 	 	27	 
	Section 10.07 Legal Holidays
	 	 	27	 
	Section 10.08 No Recourse Against Others
	 	 	27	 
	Section 10.09 Counterparts
	 	 	27	 
	Section 10.10 Governing Laws
	 	 	27	 
	Section 10.11 No Adverse Interpretation of Other Agreements
	 	 	28	 
	Section 10.12 Successors
	 	 	28	 
	Section 10.13 Severability
	 	 	28	 
	Section 10.14 Table of Contents, Headings, Etc
	 	 	28	 
	Section 10.15 Securities in a Foreign Currency
	 	 	28	 
	Section 10.16 Judgment Currency
	 	 	28	 
	 
	 	 	 	 
	ARTICLE XI SINKING FUNDS
	 	 	29	 
	 
	 	 	 	 
	Section 11.01 Applicability of Article
	 	 	29	 
	Section 11.02 Satisfaction of Sinking Fund Payments with Securities
	 	 	29	 
	Section 11.03 Redemption of Securities for Sinking Fund
	 	 	29	 

 

 

MAJESCO ENTERTAINMENT COMPANY

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of                    ,      

	 	 	 	 	 	 	 	 	 	 	 
	Section 310
	 	(a)(1)	 	 	 	 	 	 	 7.10
	 
	 	(a)(2)	 	 	 	 	 	 	 7.10
	 
	 	(a)(3)	 	 	 	 	 	NOT APPLICABLE
	 
	 	(a)(4)	 	 	 	 	 	NOT APPLICABLE
	 
	 	(a)(5)	 	 	 	 	 	 	 7.10
	 
	 	(b)	 	 	 	 	 	 	 7.10
	Section 311
	 	(a)	 	 	 	 	 	 	 7.11
	 
	 	(b)	 	 	 	 	 	 	 7.11
	 
	 	(c)	 	 	 	 	 	NOT APPLICABLE
	Section 312
	 	(a)	 	 	 	 	 	 	2.06
	 
	 	(b)	 	 	 	 	 	 	10.03
	 
	 	(c)	 	 	 	 	 	 	10.03
	Section 313
	 	(a)	 	 	 	 	 	 	7.06
	 
	 	(b)(1)	 	 	 	 	 	 	7.06
	 
	 	(b)(2)	 	 	 	 	 	 	7.06
	 
	 	(c)(1)	 	 	 	 	 	 	7.06
	 
	 	(d)	 	 	 	 	 	 	7.06
	Section 314
	 	(a)	 	 	 	 	 	 	4.02, 10.05
	 
	 	(b)	 	 	 	 	 	NOT APPLICABLE
	 
	 	(c)(1)	 	 	 	 	 	 	10.04
	 
	 	(c)(2)	 	 	 	 	 	 	10.04
	 
	 	(c)(3)	 	 	 	 	 	NOT APPLICABLE
	 
	 	(d)	 	 	 	 	 	NOT APPLICABLE
	 
	 	(e)	 	 	 	 	 	 	10.05
	 
	 	(f)	 	 	 	 	 	NOT APPLICABLE
	Section 315
	 	(a)	 	 	 	 	 	 	7.01
	 
	 	(b)	 	 	 	 	 	 	7.05
	 
	 	(c)	 	 	 	 	 	 	7.
	 
	 	(d)	 	 	 	 	 	 	7.01
	 
	 	(e)	 	 	 	 	 	 	6.14
	Section 316
	 	(a)	 	 	 	 	 	 	2.09
	 
	 	(a)(1)(a)	 	 	 	 	 	 	6.12
	 
	 	(a)(1)(b)	 	 	 	 	 	 	6.13
	 
	 	(b)	 	 	 	 	 	 	6.08
	Section 317
	 	(a)(1)	 	 	 	 	 	 	6.03
	 
	 	(a)(2)	 	 	 	 	 	 	6.04
	 
	 	(b)	 	 	 	 	 	 	2.05
	Section 318
	 	(a)	 	 	 	 	 	 	10.01

 

 

     Indenture dated as of                      , ___between Majesco Entertainment Company, a Delaware
corporation (“Company”), and                      , a ___corporation, as trustee (“Trustee”).

     Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Securities issued under this Indenture.

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01 Definitions.

     “Additional Amounts” means any additional amounts which are required hereby or by any
Security, under circumstances specified herein or therein, to be paid by the Company in respect of
certain taxes imposed on Holders specified herein or therein and which are owing to such Holders.

     “Affiliate” of any specified person means any other person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified person. For the
purposes of this definition, “control” (including, with correlative meanings, the terms “controlled
by” and “under common control with”), as used with respect to any person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of such person, whether through the ownership of voting securities or by agreement or
otherwise.

     “Agent” means any Registrar, Paying Agent or Service Agent.

     “Applicable Procedures” means, with respect to any transfer or transaction involving a Global
Security or beneficial interest therein, the rules and procedures of DTC or any successor
Depositary, in each case to the extent applicable to such transaction and as in effect from time to
time.

     “Authorized Newspaper” means a newspaper in an official language of the country of publication
customarily published at least once a day for at least five days in each calendar week and of
general circulation in the place in connection with which the term is used. If it shall be
impractical in the opinion of the Trustee to make any publication of any notice required hereby in
an Authorized Newspaper, any publication or other notice in lieu thereof that is made or given by
the Trustee shall constitute a sufficient publication of such notice.

     “Bearer” means anyone in possession from time to time of a Bearer Security.

     “Bearer Security” means any Security, including any interest coupon appertaining thereto, that
does not provide for the identification of the Holder thereof.

     “Board of Directors” means the Board of Directors of the Company or any duly authorized
committee thereof.

     “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been adopted by the Board of Directors or pursuant to
authorization by the Board of Directors and to be in full force and effect on the date of the
certificate and delivered to the Trustee.

     “Business Day” means, unless otherwise provided by Board Resolution, Officers’ Certificate or
supplemental indenture hereto for a particular Series, any day except a Saturday, Sunday or a legal
holiday in The City of New York on which banking institutions are authorized or required by law,
regulation or executive order to close.

     “Capital Interests” means any and all shares, interests, participations, rights or other
equivalents (however designated) of capital stock, including, without limitation, with respect to
partnerships, partnership interests (whether general or limited) and any other interest or
participation that confers on a person the right to receive a share of the profits and losses of,
or distributions of assets of, such partnership.

 

 

     “Company” means the party named as such above until a successor replaces it and thereafter
means the successor.

     “Company Order” means a written order signed in the name of the Company by two Officers, one
of whom must be the Company’s principal executive officer, principal financial officer or principal
accounting officer.

     “Company Request” means a written request signed in the name of the Company by its Chief
Executive Officer, Chief Financial Officer or a Vice President, and by its Treasurer, an Assistant
Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.

     “Corporate Trust Office” means the office of the Trustee at which at any particular time its
corporate trust business shall be principally administered.

     “Default” means any event which is, or after notice or passage of time or both would be, an
Event of Default.

     “Depository” means, with respect to the Securities of any Series issuable or issued in whole
or part in the form of one or more Global Securities, the person designated as Depositary for such
Series by the Company, which Depository shall be a clearing agency registered under the Exchange
Act; and if at any time there is more than one such person, “Depository” as used with respect to
the Securities of any Series shall mean the Depository with respect to the Securities of such
Series.

     “Discount Security” means any Security that provides for an amount less than the stated
principal amount thereof to be due and payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.02.

     “Dollars” and “$” means the currency of The United States of America.

     “DTC” means the Depository Trust Company, a New York corporation.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     “Foreign Currency” means any currency or currency unit issued by a government other than the
government of The United States of America.

     “Foreign Government Obligations” means, with respect to Securities of any Series that are
denominated in a Foreign Currency, (i) direct obligations of the government that issued or caused
to be issued such currency for the payment of which obligations its full faith and credit is
pledged or (ii) obligations of a person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is unconditionally guaranteed as a
full faith and credit obligation by such government, which, in either case under clauses (i) or
(ii), are not callable or redeemable at the option of the issuer thereof.

     “GAAP” means generally accepted accounting principles promulgated by the Financial Accounting
Standards Board or by such other entity as the SEC may designate for that purpose.

     “Global Security” or “Global Securities” means a Security or Securities, as the case may be,
in the form established pursuant to Section 2.02 evidencing all or part of a Series of Securities,
issued to the Depository for such Series or its nominee, and registered in the name of such
Depository or nominee.

     “Holder” means a person in whose name a Security is registered or the holder of a Bearer
Security.

     “Indenture” means this Indenture as amended or supplemented from time to time and shall
include the form and terms of particular Series of Securities established as contemplated
hereunder.

2

 

     “interest” with respect to any Discount Security which by its terms bears interest only after
Maturity means interest payable after Maturity.

     “Maturity” when used with respect to any Security or installment of principal thereof, means
the date on which the principal of such Security or such installment of principal becomes due and
payable as therein or herein provided, whether at the Stated Maturity or by declaration of
acceleration, call for redemption or otherwise.

     “Officer” means the Chief Executive Officer, Chief Financial Officer, any Vice-President, the
Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.

     “Officers’ Certificate” means a certificate signed by two Officers, one of whom must be the
Company’s principal executive officer, principal financial officer or principal accounting officer.

     “Opinion of Counsel” means a written opinion of legal counsel who is reasonably acceptable to
the Trustee. The counsel may be an employee of or counsel to the Company.

     “person” means any individual, corporation, partnership, joint venture, association, limited
liability company, joint-stock company, trust, unincorporated organization or government or any
agency or political subdivision thereof.

     “principal” of a Security means the principal of the Security plus, when appropriate, the
premium, if any, on, and any Additional Amounts in respect of, the Security.

     “Responsible Officer” means any officer of the Trustee in its Corporate Trust Office with
direct responsibility for the administration of this Indenture and also means, with respect to a
particular corporate trust matter, any other officer to whom any corporate trust matter is referred
because of his or her knowledge of and familiarity with a particular subject.

     “SEC” means the Securities and Exchange Commission.

     “Securities” means the debentures, notes or other debt instruments of the Company of any
Series authenticated and delivered under this Indenture.

     “Series” or “Series of Securities” means each series of debentures, notes or other debt
instruments of the Company created pursuant to Sections 2.01 and 2.02 hereof.

     “Stated Maturity” means when used with respect to any Security or any installment of principal
thereof or interest thereon, the date specified in such Security as the fixed date on which the
principal of such Security or such installment of principal or interest is due and payable.

     “Subsidiary” means, with respect to any person, any corporation, association or other business
entity of which more than 50% of the total voting power of shares of Capital Interests entitled
(without regard to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof or, in the case of a partnership, more than 50% of the partners’
Capital Interests (considering all partners’ Capital Interests as a single class), is at the time
owned or controlled, directly or indirectly, by such person or one or more of the other
Subsidiaries of such person or combination thereof.

     “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect
on the date of this Indenture and the rules and regulations promulgated thereunder; provided,
however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means,
to the extent required by any such amendment, the Trust Indenture Act as so amended.

     “Trustee” means the person named as the “Trustee” in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean each person who is then a Trustee hereunder, and if
at any time there is more than one such person, “Trustee” as used with respect to the Securities of
any Series shall mean the Trustee with respect to Securities of that Series.

3

 

     “U.S. Government Obligations” means securities which are (i) direct obligations of The United
States of America for the payment of which its full faith and credit is pledged or (ii) obligations
of a person controlled or supervised by and acting as an agency or instrumentality of The United
States of America the payment of which is unconditionally guaranteed as a full faith and credit
obligation by The United States of America, and which are not callable or redeemable at the option
of the issuer thereof, and shall also include a depository receipt issued by a bank or trust
company as custodian with respect to any such U.S. Government Obligation or a specific payment of
interest on or principal of any such U.S. Government Obligation held by such custodian for the
account of the holder of a depository receipt, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the holder of such
depository receipt from any amount received by the custodian in respect of the U.S. Government
Obligation evidenced by such depository receipt.

     Section 1.02 Other Definitions.

	 	 	 	 	 
	 	 	DEFINED IN
	TERM	 	SECTION
	“Bankruptcy Law”
	 	 	6.01	 
	“Custodian”
	 	 	6.01	 
	“Event of Default”
	 	 	6.01	 
	“Judgment Currency”
	 	 	10.16	 
	“Legal Holiday”
	 	 	10.07	 
	“mandatory sinking fund payment”
	 	 	11.01	 
	“Market Exchange Rate”
	 	 	10.15	 
	“New York Banking Day”
	 	 	10.16	 
	“optional sinking fund payment”
	 	 	11.01	 
	“Paying Agent”
	 	 	2.04	 
	“Registrar”
	 	 	2.04	 
	“Required Currency”
	 	 	10.16	 
	“Service Agent”
	 	 	2.04	 
	“successor person”
	 	 	5.01	 

     Section 1.03 Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture. The following TIA terms used in this Indenture have
the following meanings:

     “Commission” means the SEC.

     “indenture securities” means the Securities.

     “indenture security holder” means a Holder.

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Trustee.

     “obligor” on the indenture securities means the Company and any successor obligor upon the
Securities.

     All other terms used in this Indenture that are defined by the TIA, defined by TIA reference
to another statute or defined by SEC rule under the TIA and not otherwise defined herein are used
herein as so defined.

     Section 1.04 Rules of Construction.

     Unless the context otherwise requires:

4

 

     (a) a term has the meaning assigned to it;

     (b) an accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles;

     (c) references to “generally accepted accounting principles” and “GAAP” shall mean
generally accepted accounting principles in effect as of the time when and for the period as to
which such accounting principles are to be applied;

     (d) “or” is not exclusive;

     (e) words in the singular include the plural, and in the plural include the singular;
and

     (f) provisions apply to successive events and transactions.

ARTICLE II

THE SECURITIES

     Section 2.01 Issuable in Series. The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one
or more Series. All Securities of a Series shall be identical except as may be set forth or
determined in the manner provided in a Board Resolution, supplemental indenture or Officers’
Certificate detailing the adoption of the terms thereof pursuant to authority granted under a Board
Resolution. In the case of Securities of a Series to be issued from time to time, the Board
Resolution, Officers’ Certificate or supplemental indenture detailing the adoption of the terms
thereof pursuant to authority granted under a Board Resolution may provide for the method by which
specified terms (such as interest rate, maturity date, record date or date from which interest
shall accrue) are to be determined. Securities may differ between Series in respect of any matters,
provided that all Series of Securities shall be equally and ratably entitled to the benefits of the
Indenture.

     Section 2.02 Establishment of Terms of Series of Securities. At or prior to the issuance of
any Securities within a Series, the following shall be established (as to the Series generally, in
the case of Subsection 2.02(a) and either as to such Securities within the Series or as to the
Series generally in the case of Subsections 2.02(b) through 2.02(s) by or pursuant to a Board
Resolution, and set forth or determined in the manner provided in a Board Resolution, supplemental
indenture or an Officers’ Certificate:

     (a) the form and title of the Series (which shall distinguish the Securities of that
particular Series from the Securities of any other Series);

     (b) the price or prices (expressed as a percentage of the principal amount thereof) at
which the Securities of the Series will be issued;

     (c) any limit upon the aggregate principal amount of the Securities of the Series which
may be authenticated and delivered under this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of
the Series pursuant to Section 2.07, 2.08, 2.11, 3.06 or 9.06);

     (d) the date or dates on which the principal of the Securities of the Series is
payable;

     (e) the rate or rates (which may be fixed or variable) per annum or, if applicable, the
method used to determine such rate or rates (including, but not limited to, any commodity,
commodity index, stock exchange index or financial index) at which the Securities of the Series
shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the
date or dates on which such interest, if any, shall commence and be payable and any regular record
date for the interest payable on any interest payment date;

     (f) the place or places where the principal of and interest, if any, on the Securities
of the Series shall be payable, where the Securities of such Series may be surrendered for
registration of transfer or exchange

5

 

and where notices and demands to or upon the Company in
respect of the Securities of such Series and this Indenture may be served, and the method of such
payment, if by wire transfer, mail or other means;

     (g) if applicable, the period or periods within which, the price or prices at which and
the terms and conditions upon which the Securities of the Series may be redeemed, in whole or in
part, at the option of the Company;

     (h) the obligation, if any, of the Company to redeem or purchase the Securities of the
Series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof
and the period or periods within which, the price or prices at which and the terms and conditions
upon which Securities of the Series shall be redeemed or purchased, in whole or in part, pursuant
to such obligation;

     (i) the dates, if any, on which and the price or prices at which the Securities of the
Series will be repurchased by the Company at the option of the Holders thereof and other detailed
terms and provisions of such repurchase obligations;

     (j) if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which the Securities of the Series shall be issuable;

     (k) if other than the principal amount thereof, the portion of the principal amount of
the Securities of the Series that shall be payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.02;

     (l) the currency of denomination of the Securities of the Series, which may be Dollars
or any Foreign Currency, and the agency or organization, if any, responsible for overseeing such
composite currency;

     (m) the provisions, if any, relating to any security provided for the Securities of the
Series;

     (n) any addition to or change in the Events of Default which applies to any Securities
of the Series and any change in the right of the Trustee or the requisite Holders of such
Securities to declare the principal amount thereof due and payable pursuant to Section 6.02;

     (o) any addition to or change in the covenants set forth in Articles IV or V which
applies to Securities of the Series;

     (p) the provisions, if any, relating to conversion of any Securities of such Series,
including, if applicable, the securities into which the Securities are convertible, the conversion
price, the conversion period, provisions as to whether conversion will be mandatory, at the option
of the Holders or at the option of the Company, the events requiring an adjustment of the
conversion price and provisions affecting conversion if such Series of Securities are redeemed;

     (q) whether the Securities of such Series will be senior debt securities or
subordinated debt securities and, if applicable, a description of the subordination terms thereof;

     (r) any depositaries, interest rate calculation agents, exchange rate calculation
agents or other agents with respect to Securities of such Series if other than those appointed
herein; and

     (s) any other terms of the Securities of the Series (which may modify or delete any
provision of this Indenture insofar as it applies to such Series).

     All Securities of any one Series need not be issued at the same time and may be issued from
time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the
Board Resolution, supplemental indenture hereto or Officers’ Certificate referred to above, and,
unless otherwise provided in such Board Resolution, a Series may be reopened, without the consent
of the Holders, for increases in the aggregate principal amount of such Series and issuances of
additional Securities of such Series.

     Section 2.03 Execution and Authentication. Two Officers shall sign the Securities for the
Company by manual or facsimile signature. If an Officer whose signature is on a Security no longer
holds that office

6

 

at the time the Security is authenticated, the Security shall nevertheless be
valid. A Security shall not be valid until authenticated by the manual signature of the Trustee or
an authenticating agent. The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture. The Trustee shall at any time, and from time to time,
authenticate Securities for original issue in the principal amount provided in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate, upon receipt by the Trustee of
a Company Order. Such Company Order may authorize authentication and delivery pursuant to oral or
electronic instructions from the Company or its duly authorized agent or agents, which oral
instructions shall be promptly confirmed in writing. Each Security shall be dated the date of its
authentication unless otherwise provided by a Board Resolution, a supplemental indenture hereto or
an Officers’ Certificate. The aggregate principal amount of Securities of any Series outstanding at
any time may not exceed any limit upon the maximum principal amount for such Series set forth in
the Board Resolution, supplemental indenture hereto or Officers’ Certificate delivered pursuant to
Section 2.02, except as provided in Section 2.02 or 2.08. Prior to the issuance of Securities of
any Series, the Trustee shall have received and (subject to Section 7.02) shall be fully protected
in relying on: (a) the Board Resolution, supplemental indenture hereto or Officers’Certificate
establishing the form of the Securities of that Series or of Securities within that Series and the
terms of the Securities of that Series or of Securities within that Series, (b) an Officers’
Certificate complying with Section 10.04 and (c) an Opinion of Counsel complying with Section
10.04. The Trustee shall have the right to decline to authenticate and deliver any Securities of
such Series: (a) if the Trustee, being advised by counsel, determines that such action may not be
taken lawfully; or (b) if the Trustee’s board of directors or trustees, executive committee or a
trust committee of directors and/or vice-presidents shall determine in good faith that such action
would expose the Trustee to personal liability to Holders of any then outstanding Series of
Securities. The Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Securities. An authenticating agent may authenticate Securities whenever the Trustee
may do so. Each reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent has the same rights as an Agent to deal with
the Company or an Affiliate of the Company.

     Section 2.04 Registrar and Paying Agent. The Company shall maintain, with respect to each
Series of Securities, at the place or places specified with respect to such Series pursuant to
Section 2.02, an office or agency where Securities of such Series may be presented or surrendered
for payment (“Paying Agent”), where Securities of such Series may be surrendered for registration
of transfer or exchange (“Registrar”) and where notices and demands to or upon the Company in
respect of the Securities of such Series and this Indenture may be served (“Service Agent”). The
Registrar shall keep a register with respect to each Series of Securities and to their transfer and
exchange. The Company will give prompt written notice to the Trustee of the name and address, and
any change in the name or address, of each Registrar, Paying Agent or Service Agent. If at any time
the Company shall fail to maintain any such required Registrar, Paying Agent or Service Agent or
shall fail to furnish the Trustee with the name and address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee,
and the Company hereby appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands. The Company may also from time to time designate one or more
co-registrars, additional paying agents or additional service agents and may from time to time
rescind such designations; provided, however, that no such designation or rescission shall in any
manner relieve the Company of its obligations to maintain a Registrar, Paying Agent and Service
Agent in each place so specified pursuant to Section 2.02 for Securities of any Series for such
purposes. The Company will give prompt written notice to the Trustee of any such designation or
rescission and of any change in the name or address of any such co-registrar, additional paying
agent or additional service agent. The term “Registrar” includes any co-registrar; the term “Paying
Agent” includes any additional paying agent; and the term “Service Agent” includes any additional
service agent. The Company hereby appoints the Trustee the initial Registrar, Paying Agent and
Service Agent for each Series unless another Registrar, Paying Agent or Service Agent, as the case
may be, is appointed prior to the time Securities of that Series are first issued.

     Section 2.05 Paying Agent to Hold Money in Trust. The Company shall require each Paying Agent
other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the
benefit of Holders of any Series of Securities, or the Trustee, all money held by the Paying Agent
for the payment of principal
of or interest on the Series of Securities, and will notify the Trustee of any default by the
Company in making any such payment. While any such default continues, the Trustee may require a
Paying Agent to

7

 

pay all money held by it to the Trustee. The Company at any time may require a
Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the
Paying Agent (if other than the Company or a Subsidiary of the Company) shall have no further
liability for the money. If the Company or a Subsidiary of the Company acts as Paying Agent, it
shall segregate and hold in a separate trust fund for the benefit of Holders of any Series of
Securities all money held by it as Paying Agent.

     Section 2.06 Holder Lists. The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of Holders of each
Series of Securities and shall otherwise comply with TIA Section 312(a). If the Trustee is not the
Registrar, the Company shall furnish to the Trustee at least ten (10) days before each interest
payment date and at such other times as the Trustee may request in writing a list, in such form and
as of such date as the Trustee may reasonably require, of the names and addresses of Holders of
each Series of Securities.

     Section 2.07 Transfer and Exchange. Where Securities of a Series are presented to the
Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal
principal amount of Securities of the same Series, the Registrar shall register the transfer or
make the exchange if its requirements for such transactions are met. To permit registrations of
transfers and exchanges, the Trustee shall authenticate Securities at the Registrar’s request. No
service charge shall be made for any registration of transfer or exchange (except as otherwise
expressly permitted herein), but the Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith (other than any such
transfer tax or similar governmental charge payable upon exchanges pursuant to Sections 2.11, 3.06
or 9.06). Neither the Company nor the Registrar shall be required (a) to issue, register the
transfer of, or exchange Securities of any Series for the period beginning at the opening of
business fifteen days immediately preceding the mailing of a notice of redemption of Securities of
that Series selected for redemption and ending at the close of business on the day of such mailing,
or (b) to register the transfer of or exchange Securities of any Series selected, called or being
called for redemption as a whole or the portion being redeemed of any such Securities selected,
called or being called for redemption in part.

     Section 2.08 Mutilated, Destroyed, Lost and Stolen Securities.

     (a) If any mutilated Security is surrendered to the Trustee, the Company shall execute
and the Trustee shall authenticate and make available for delivery in exchange therefor a new
Security of the same Series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding. If there shall be delivered to the Company and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such
security or indemnity as may be required by them to save each of them and any agent of either of
them harmless, then, in the absence of notice to the Company or the Trustee that such Security has
been acquired by a protected purchaser, the Company shall execute and upon its request the Trustee
shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same Series and of like tenor and principal amount and bearing a
number not contemporaneously outstanding. In case any such mutilated, destroyed, lost or stolen
Security has become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security.

     (b) Upon the issuance of any new Security under this Section, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith. Every new Security of any Series issued pursuant to this Section in lieu of
any destroyed, lost or stolen Security shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that Series duly issued hereunder. The
provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights
and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen
Securities.

     Section 2.09 Outstanding Securities. The Securities outstanding at any time are all the
Securities authenticated by the Trustee except for those canceled by it, those delivered to it for
cancellation, those

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reductions in the interest on a Global Security effected by the Trustee in
accordance with the provisions hereof and those described in this Section as not outstanding. If a
Security is replaced pursuant to Section 2.08, it ceases to be outstanding until the Trustee
receives proof satisfactory to it that the replaced Security is held by a protected purchaser. If
the Paying Agent (other than the Company, a Subsidiary of the Company or an Affiliate of the
Company) holds on the Maturity of Securities of a Series money sufficient to pay such Securities
payable on that date, then on and after that date such Securities of the Series cease to be
outstanding and interest on them ceases to accrue. A Security does not cease to be outstanding
because the Company or an Affiliate of the Company holds the Security. In determining whether the
Holders of the requisite principal amount of outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal amount of a Discount
Security that shall be deemed to be outstanding for such purposes shall be the amount of the
principal thereof that would be due and payable as of the date of such determination upon a
declaration of acceleration of the Maturity thereof pursuant to Section 6.02.

     Section 2.10 Treasury Securities. In determining whether the Holders of the required principal
amount of Securities of a Series have concurred in any request, demand, authorization, direction,
notice, consent or waiver, Securities of a Series owned by the Company shall be disregarded, except
that for the purposes of determining whether the Trustee shall be protected in relying on any such
request, demand, authorization, direction, notice, consent or waiver, only Securities of a Series
that the Trustee knows are so owned shall be so disregarded.

     Section 2.11 Temporary Securities. Until definitive Securities are ready for delivery, the
Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order.
Temporary Securities shall be substantially in the form of definitive Securities but may have
variations that the Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee upon request shall authenticate definitive
Securities of the same Series and date of maturity in exchange for temporary Securities. Until so
exchanged, temporary securities shall have the same rights under this Indenture as the definitive
Securities.

     Section 2.12 Cancellation. The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for registration of transfer, exchange or payment. The Trustee shall cancel all
Securities surrendered for registration of transfer, exchange, payment, replacement or cancellation
in accordance with its customary procedures and deliver such canceled Securities to the Company,
unless the Company otherwise directs; provided that the Trustee shall not be required to destroy
Securities. The Company may not issue new Securities to replace Securities that it has paid or
delivered to the Trustee for cancellation.

     Section 2.13 Defaulted Interest. If the Company defaults in a payment of interest on a Series
of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law, any
interest payable on the defaulted interest, to the persons who are Holders of the Series on a
subsequent special record date. The Company shall fix the record date and payment date. At least
ten (10) days before the record date, the Company shall mail to the Trustee and to each Holder of
the Series a notice that states the record date, the payment date and the amount of interest to be
paid. The Company may pay defaulted interest in any other lawful manner.

     Section 2.14 Global Securities.

     (a) Terms of Securities. A Board Resolution, a supplemental indenture hereto or an
Officers’ Certificate shall establish whether the Securities of a Series shall be issued in whole
or in part in the form of one or more Global Securities and the Depository for such Global Security
or Securities.

     (b) Transfer and Exchange. Notwithstanding any provisions to the contrary contained in
Section 2.07 of the Indenture and in addition thereto, any Global Security shall be exchangeable
pursuant to Section 2.07 of the Indenture for Securities registered in the names of Holders other
than the Depository for such Security or its nominee only if (i) such Depository notifies the
Company that it is unwilling or unable to
continue as Depository for such Global Security or if at any time such Depository ceases to be a
clearing agency registered under the Exchange Act, and, in either case, the Company fails to
appoint a successor

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Depository registered as a clearing agency under the Exchange Act within 90 days of such event,
(ii) the Company executes and delivers to the Trustee an Officers’ Certificate to the effect that
such Global Security shall be so exchangeable or (iii) an Event of Default with respect to the
Securities represented by such Global Security shall have happened and be continuing. Any Global
Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for
Securities registered in such names as the Depository shall direct in writing in an aggregate
principal amount equal to the principal amount of the Global Security with like tenor and terms.

     (c) Except as provided in this Section 2.14(c), a Global Security may not be
transferred except as a whole by the Depository with respect to such Global Security to a nominee
of such Depository, by a nominee of such Depository to such Depository or another nominee of such
Depository or by the Depository or any such nominee to a successor Depository or a nominee of such
a successor Depository.

     (d) Legend. Any Global Security issued hereunder shall bear a legend in
substantially the following form:

     (e) “This Security is a Global Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of the Depository or a nominee of the
Depository. This Security is exchangeable for Securities registered in the name of a person other
than the Depository or its nominee only in the limited circumstances described in the Indenture,
and may not be transferred except as a whole by the Depository to a nominee of the Depository, by a
nominee of the Depository to the Depository or another nominee of the Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such a successor
Depository.”

     (f) Acts of Holders. The Depository, as a Holder, may appoint agents and otherwise
authorize participants to give or take any request, demand, authorization, direction, notice,
consent, waiver or other action which a Holder is entitled to give or take under the Indenture.

     (g) Payments. Notwithstanding the other provisions of this Indenture, unless
otherwise specified as contemplated by Section 2.02, payment of the principal of and interest, if
any, on any Global Security shall be made to the Holder thereof.

     (h) Consents, Declaration and Directions. Except as provided in Section 2.14(g),
the Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount
of outstanding Securities of such Series represented by a Global Security as shall be specified in
a written statement of the Depository with respect to such Global Security, for purposes of
obtaining any consents, declarations, waivers or directions required to be given by the Holders
pursuant to this Indenture.

     (i) The Depository or its nominee, as registered owner of a Global Security, shall
be the Holder of such Global Security for all purposes under the Indenture and the Securities, and
owners of beneficial interests in a Global Security shall hold such interests pursuant to the
Applicable Procedures. Accordingly, any such owner’s beneficial interest in a Global Security will
be shown only on, and the transfer of such interest shall be effected only through, records
maintained by the Depositary or its nominee and such owners of beneficial interests in a Global
Security will not be considered the owners or holders thereof.

          Section 2.15 CUSIP Numbers. The Company in issuing the Securities may use “CUSIP”
numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Securities or
as contained in any notice of a redemption and that reliance may be placed only on the other
elements of identification printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers. The Company shall promptly notify the Trustee of any
change in “CUSIP” numbers of which the Company becomes aware.

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ARTICLE III

REDEMPTION

          Section 3.01 Notice to Trustee. The Company may, with respect to any Series of
Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem
and pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such
time and on such terms as provided for in such Securities. If a Series of Securities is redeemable
and the Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of
the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee of
the redemption date and the principal amount of Series of Securities to be redeemed.

          Section 3.02 Selection of Securities to be Redeemed. Unless otherwise indicated for a
particular Series by a Board Resolution, a supplemental indenture or an Officers’ Certificate, if
less than all the Securities of a Series are to be redeemed, the Trustee shall select the
Securities of the Series to be redeemed in any manner that the Trustee deems fair and appropriate.
The Trustee shall make the selection from Securities of the Series outstanding not previously
called for redemption. The Trustee may select for redemption portions of the principal of
Securities of the Series that have denominations larger than $1,000. Securities of the Series and
portions of them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or, with
respect to Securities of any Series issuable in other denominations pursuant to Section 2.02(j),
the minimum principal denomination for each Series and integral multiples thereof. Provisions of
this Indenture that apply to Securities of a Series called for redemption also apply to portions of
Securities of that Series called for redemption.

          Section 3.03 Notice of Redemption. Unless otherwise indicated for a particular Series
by Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, at least 30 days
but not more than 60 days before a redemption date, the Company shall mail a notice of redemption
by first-class mail to each Holder whose Securities are to be redeemed and, if any Bearer
Securities are outstanding, publish on one occasion a notice in an Authorized Newspaper. The notice
shall identify the Securities of the Series to be redeemed and shall state:

     (i) the redemption date;

     (ii) the redemption price;

     (iii) the name and address of the Paying Agent;

     (iv) that Securities of the Series called for redemption must be
surrendered to the Paying Agent to collect the redemption price;

     (v) that interest on Securities of the Series called for redemption
ceases to accrue on and after the redemption date;

     (vi) the CUSIP number, if any; and

     (vii) any other information as may be required by the terms of the
particular Series or the Securities of a Series being redeemed.

               At the Company’s request, the Trustee shall give the notice of redemption in the
Company’s name and at its expense.

11

 

          Section 3.04 Effect of Notice of Redemption. Once notice of redemption is mailed or
published as provided in Section 3.03, Securities of a Series called for redemption become due and
payable on the redemption date and at the redemption price. A notice of redemption may not be
conditional. Upon surrender to the Paying Agent, such Securities shall be paid at the redemption
price plus accrued interest to the redemption date; provided that installments of interest whose
Stated Maturity is on or prior to the redemption date shall be payable to the Holders of such
Securities (or one or more predecessor Securities) registered at the close of business on the
relevant record date therefor according to their terms and the terms of this Indenture.

          Section 3.05 Deposit of Redemption Price. On or before 10:00 a.m., New York City time,
on the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the
redemption price of and accrued interest, if any, on all Securities to be redeemed on that date.

          Section 3.06 Securities Redeemed in Part. Upon surrender of a Security that is
redeemed in part, the Trustee shall authenticate for the Holder a new Security of the same Series
and the same maturity equal in principal amount to the unredeemed portion of the Security
surrendered.

ARTICLE IV

COVENANTS

          Section 4.01 Payment of Principal and Interest. The Company covenants and agrees for
the benefit of the Holders of each Series of Securities that it will duly and punctually pay the
principal of and interest, if any, on the Securities of that Series in accordance with the terms of
such Securities and this Indenture.

          Section 4.02 SEC Reports. The Company shall, so long as any of the Securities are
outstanding, electronically file with the Commission the annual, quarterly and other periodic
reports that the Company is required to file with the Commission pursuant to Sections 13 and 15(d)
of the Exchange Act. The Company also shall comply with the other provisions of TIA Section 314(a).
Delivery of any reports, information and documents to the Trustee is for informational purposes
only and the Trustee’s receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on an Officers’ Certificate).

          Section 4.03 Compliance Certificate. The Company shall, so long as any of the
Securities are outstanding, deliver to the Trustee, within 120 days after the end of each fiscal
year of the Company, an Officers’ Certificate stating whether or not to the knowledge of the
signers thereof the Company is in default in the performance and observance of any of the terms,
provisions and conditions hereof (without regard to any period of grace or requirement of notice
provided hereunder), and if a Default or Event of Default shall have occurred, specifying all such
Defaults or Events of Default and the nature and status thereof of which they may have knowledge.
The Company shall, so long as any of the Securities are outstanding, deliver to the Trustee, within
thirty (30) days after becoming aware of any Default or Event of Default, an Officers’ Certificate
specifying such Default or Event of Default and what action the Company is taking or proposes to
take with respect thereto.

          Section 4.04 Stay, Extension and Usury Laws. The Company covenants (to the extent that
it may lawfully do so) that it will not at any time insist upon, plead or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the performance of this
Indenture or the Securities and the Company (to the extent it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law and covenants that it will not, by resort to any
such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law has been enacted.

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ARTICLE V

SUCCESSORS

          Section 5.01 When Company May Merge, Etc. The Company shall not consolidate with or
merge with or into, or convey, transfer or lease all or substantially all of its properties and
assets to, any person (a “successor person”) unless:

     (a) the Company is the surviving corporation or the successor person (if other than
the Company) is organized and validly existing under the laws of any U.S. domestic jurisdiction and
expressly assumes the Company’s obligations on the Securities and under this Indenture; and

     (b) immediately after giving effect to the transaction, no Default or Event of
Default shall have occurred and be continuing.

          The Company shall deliver to the Trustee prior to the consummation of the proposed
transaction an Officers’ Certificate to the foregoing effect and an Opinion of Counsel stating that
the proposed transaction and any supplemental indenture comply with this Indenture.

          Section 5.02 Successor Corporation Substituted. Upon any consolidation or merger, or
any sale, lease, conveyance or other disposition of all or substantially all of the assets of the
Company in accordance with Section 5.01, the successor corporation formed by such consolidation or
into or with which the Company is merged or to which such sale, lease, conveyance or other
disposition is made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such successor person has
been named as the Company herein; provided, however, that the predecessor Company in the case of a
sale, conveyance or other disposition (other than a lease) shall be released from all obligations
and covenants under this Indenture and the Securities.

ARTICLE VI

DEFAULTS AND REMEDIES

          Section 6.01 Events of Default.

          “Event of Default,” wherever used herein with respect to Securities of any Series,
means any one of the following events, unless in the establishing Board Resolution, supplemental
indenture or Officers’ Certificate, it is provided that such Series shall not have the benefit of
said Event of Default:

               (a) default in the payment of any interest on any Security of that Series when it becomes due
and payable, and continuance of such default for a period of 30 days (unless the entire amount of
such payment is deposited by the Company with the Trustee or with a Paying Agent prior to the
expiration of such period of 30 days); or

               (b) default in the payment of principal of any Security of that Series at its Maturity; or

               (c) default in the performance or breach of any covenant or warranty of the Company in this
Indenture (other than a covenant or warranty for which the consequences of nonperformance or breach
are addressed elsewhere in this Section 6.01 and other than a covenant or warranty that has been
included in this Indenture solely for the benefit of Series of Securities other than that Series),
which default continues uncured for a period of 90 days after there has been given, by registered
or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders
of not less than a majority in principal amount of the outstanding Securities of that Series a
written notice specifying such default or breach and requiring it to be remedied and stating that
such notice is a “Notice of Default” hereunder; or

               (d) the Company pursuant to or within the meaning of any Bankruptcy Law: (i) commences a
voluntary case or proceeding; (ii) consents to the entry of an order for relief against it in an
involuntary case, (iii) consents to the appointment of a Custodian of it or for all or
substantially all of its property, (iv) makes a general assignment for the benefit of its
creditors, or (v) makes an admission by writing that it is generally unable to pay its debts as the
same become due; or

               (e) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:
(i) is for relief against the Company in an involuntary case, (ii) appoints a Custodian of the
Company or for all

13

 

or substantially all of its property, or (iii) orders the liquidation of the Company, and the
order or decree remains unstayed and in effect for 90 days; or

               (f) any other Event of Default provided with respect to Securities of that Series, which is
specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, in
accordance with Section 2.02(n).

          The term “Bankruptcy Law” means Title 11 of the U.S. Code or any similar federal or
state law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee,
liquidator or similar official under any Bankruptcy Law.

          Section 6.02 Acceleration of Maturity; Rescission and Annulment. If an Event of
Default with respect to Securities of any Series at the time outstanding occurs and is continuing
(other than an Event of Default referred to in Section 6.1(d) or (e)), then in every such case the
Trustee or the Holders of not less than a majority in principal amount of the outstanding
Securities of that Series may declare the principal amount (or, if any Securities of that Series
are Discount Securities, such portion of the principal amount as may be specified in the terms of
such Securities) of and accrued and unpaid interest, if any, on all of the Securities of that
Series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee
if given by Holders), and upon any such declaration such principal amount (or specified amount) and
accrued and unpaid interest, if any, shall become immediately due and payable. If an Event of
Default specified in Section 6.1(d) or (e) shall occur, the principal amount (or specified amount)
of and accrued and unpaid interest, if any, on all outstanding Securities shall ipso facto become
and be immediately due and payable without any declaration or other act on the part of the Trustee
or any Holder. At any time after such a declaration of acceleration with respect to any Series has
been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the outstanding Securities of that Series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if all Events of Default with respect to
Securities of that Series, other than the non-payment of the principal and interest, if any, of
Securities of that Series which have become due solely by such declaration of acceleration, have
been cured or waived as provided in Section 6.13. No such rescission shall affect any subsequent
Default or impair any right consequent thereon.

          Section 6.03 Collection of Indebtedness and Suits for Enforcement by Trustee.

          The Company covenants that if:

     (a) default is made in the payment of any interest on any Security when such
interest becomes due and payable and such default continues for a period of 30 days, or

     (b) default is made in the payment of principal of any Security at the Maturity
thereof, then the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such Securities for principal
and interest and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal and any overdue interest at the rate or rates prescribed therefor
in such Securities and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

          If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in
its own name and as trustee of an express trust, may institute a judicial proceeding for the
collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree
and may enforce the same against the Company or any other obligor upon such Securities and collect
the moneys adjudged or deemed to be payable in the manner provided by law out of the property of
the Company or any other obligor upon such Securities, wherever situated.

          If an Event of Default with respect to any Securities of any Series occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the
rights of the Holders of Securities of such Series by such appropriate judicial proceedings as the
Trustee shall deem most effectual

14

 

to protect and enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy.

          Section 6.04 Trustee May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their creditors, the Trustee
(irrespective of whether the principal of the Securities shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made
any demand on the Company for the payment of overdue principal or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise, (a) to file and prove a claim for the
whole amount of principal and interest owing and unpaid in respect of the Securities and to file
such other papers or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and
(b) to collect and receive any moneys or other property payable or deliverable on any such claims
and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, and any other amounts due the Trustee under Section 7.07. Nothing herein contained shall
be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of
any Holder in any such proceeding.

          Section 6.05 Trustee May Enforce Claims Without Possession of Securities. All rights
of action and claims under this Indenture or the Securities may be prosecuted and enforced by the
Trustee without the possession of any of the Securities or the production thereof in any proceeding
relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which
such judgment has been recovered.

          Section 6.06 Application of Money Collected.

          Any money collected by the Trustee pursuant to this Article shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal or interest, upon presentation of the Securities and the notation
thereon of the payment if only partially paid and upon surrender thereof if fully paid:

          First: To the payment of all amounts due the Trustee under Section 7.07; and

          Second: To the payment of the amounts then due and unpaid for principal of and
interest on the Securities in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the amounts due and
payable on such Securities for principal and interest, respectively; and

          Third: To the Company.

          Section 6.07 Limitation on Suits. No Holder of any Security of any Series shall have
any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or
for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

     (a) such Holder has previously given written notice to the Trustee of a continuing
Event of Default with respect to the Securities of that Series;

15

 

     (b) the Holders of at least a majority in principal amount of the outstanding
Securities of that Series shall have made written request to the Trustee to institute proceedings
in respect of such Event of Default in its own name as Trustee hereunder;

     (c) such Holder or Holders have offered to the Trustee reasonable indemnity against
the costs, expenses and liabilities to be incurred in compliance with such request;

     (d) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

     (e) no direction inconsistent with such written request has been given to the
Trustee during such 60-day period by the Holders of a majority in principal amount of the
outstanding Securities of that Series; it being understood and intended that no one or more of such
Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to
obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any
right under this Indenture, except in the manner herein provided and for the equal and ratable
benefit of all such Holders.

          Section 6.08 Unconditional Right of Holders to Receive Principal and Interest.
Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the
right, which is absolute and unconditional, to receive payment of the principal of and interest, if
any, on such Security on the Stated Maturity or Stated Maturities expressed in such Security (or,
in the case of redemption, on the redemption date) and to institute suit for the enforcement of any
such payment, and such rights shall not be impaired without the consent of such Holder.

          Section 6.09 Restoration of Rights and Remedies. If the Trustee or any Holder has
instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding
has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee
or to such Holder, then and in every such case, subject to any determination in such proceeding,
the Company, the Trustee and the Holders shall be restored severally and respectively to their
former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders
shall continue as though no such proceeding had been instituted.

          Section 6.10 Rights and Remedies Cumulative. Except as otherwise provided with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.08,
no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended
to be exclusive of any other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not, to the extent permitted by law, prevent the
concurrent assertion or employment of any other appropriate right or remedy.

          Section 6.11 Delay or Omission Not Waiver. No delay or omission of the Trustee or of
any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to
the Holders may be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

          Section 6.12 Control by Holders. The Holders of a majority in principal amount of the
outstanding Securities of any Series shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred on the Trustee, with respect to the Securities of such Series, provided that:

     (a) such direction shall not be in conflict with any rule of law or with this
Indenture,

     (b) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction, and

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     (c) subject to the provisions of Section 6.01, the Trustee shall have the right to
decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer
of the Trustee, determine that the proceeding so directed would involve the Trustee in personal
liability.

          Section 6.13 Waiver of Past Defaults. The Holders of not less than a majority in
principal amount of the outstanding Securities of any Series may on behalf of the Holders of all
the Securities of such Series waive any past Default hereunder with respect to such Series and its
consequences, except a Default (i) in the payment of the principal of or interest on any Security
of such Series (provided, however, that the Holders of a majority in principal amount of the
outstanding Securities of any Series may rescind an acceleration and its consequences, including
any related payment default that resulted from such acceleration) or (ii) in respect of a covenant
or provision hereof which cannot be modified or amended without the consent of the Holder of each
outstanding Security of such Series affected. Upon any such waiver, such Default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or
impair any right consequent thereon.

          Section 6.14 Undertaking for Costs. All parties to this Indenture agree, and each
Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may
in its discretion require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such
suit, and that such court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good
faith of the claims or defenses made by such party litigant; but the provisions of this Section
shall not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to
any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in
principal amount of the outstanding Securities of any Series, or to any suit instituted by any
Holder for the enforcement of the payment of the principal of or interest on any Security on or
after the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of
redemption, on the redemption date).

ARTICLE VII

TRUSTEE

          Section 7.01 Duties of Trustee.

     (a) If an Event of Default has occurred and is continuing, the Trustee shall
exercise the rights and powers vested in it by this Indenture and use the same degree of care and
skill in their exercise as a prudent person would exercise or use under the circumstances in the
conduct of such person’s own affairs.

     (b) Except during the continuance of an Event of Default:

     (i) The Trustee need perform only those duties that are specifically
set forth in this Indenture and no others.

     (ii) In the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon Officers’ Certificates or Opinions of Counsel
furnished to the Trustee and conforming to the requirements of this Indenture;
however, in the case of any such Officers’ Certificates or Opinions of Counsel
which by any provisions hereof are specifically required to be furnished to the
Trustee, the Trustee shall examine such Officers’ Certificates and Opinions of
Counsel to determine whether or not they conform to the requirements of this
Indenture.

     (c) The Trustee may not be relieved from liability for its own negligent action,
its own negligent failure to act or its own willful misconduct, except that:

	 	(i)	 	This paragraph does not limit the effect of paragraph (b) of this Section,
	 
	 	(ii)	 	the Trustee shall not be liable for any error of judgment made in good faith by a Responsible

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	 	 	 	Officer, unless it is proved that the Trustee was negligent in ascertaining
the pertinent facts, and

	 	(iii)	 	the Trustee shall not be liable with respect to any action taken, suffered or omitted to
be taken by it with respect to Securities of any Series in good faith in accordance with
the direction of the Holders of a majority in principal amount of the outstanding
Securities of such Series relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Indenture with respect to the Securities of such
Series.

     (d) Every provision of this Indenture that in any way relates to the Trustee is
subject to paragraph (a), (b) and (c) of this Section.

     (e) The Trustee may refuse to perform any duty or exercise any right or power at
the request or direction of any Holder unless it receives indemnity satisfactory to it against any
loss, liability or expense.

     (f) The Trustee shall not be liable for interest on any money received by it except
as the Trustee may agree in writing with the Company. Money held in trust by the Trustee need not
be segregated from other funds except to the extent required by law.

     (g) No provision of this Indenture shall require the Trustee to risk its own funds
or otherwise incur any financial liability in the performance of any of its duties, or in the
exercise of any of its rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk is not reasonably assured to it.

     (h) The Paying Agent, the Registrar and any Service Agent or authenticating agent
shall be entitled to the protections, immunities and standard of care as are set forth in
paragraphs (a), (b) and (c) of this Section with respect to the Trustee.

          Section 7.02 Rights of Trustee.

     (a) The Trustee may rely on and shall be protected in acting or refraining from
acting upon any document believed by it to be genuine and to have been signed or presented by the
proper person. The Trustee need not investigate any fact or matter stated in the document.

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’
Certificate. The Trustee shall not be liable for any action it takes or omits to take in good faith
in reliance on such Officers’ Certificate.

     (c) The Trustee may act through agents and shall not be responsible for the
misconduct or negligence of any agent appointed with due care. No Depository shall be deemed an
agent of the Trustee, and the Trustee shall not be responsible for any act or omission by any
Depository.

     (d) The Trustee shall not be liable for any action it takes or omits to take in
good faith which it believes to be authorized or within its rights or powers, provided that the
Trustee’s conduct does not constitute negligence or bad faith.

     (e) The Trustee may consult with counsel, and the advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection in respect of any action
taken, suffered or omitted by it hereunder without negligence and in good faith and in reliance
thereon.

     (f) The Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Indenture at the request or direction of any of the Holders of
Securities unless such Holders shall have offered to the Trustee reasonable security or indemnity
against the costs, expenses and liabilities which might be incurred by it in compliance with such
request or direction.

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     (g) The Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit.

     (h) The Trustee shall not be deemed to have notice of any Default or Event of
Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written
notice of any event which is in fact such a default is received by the Trustee at the Corporate
Trust Office of the Trustee, and such notice references the Securities generally or the Securities
of a particular Series and this Indenture.

     (i) The permissive rights of the Trustee enumerated herein shall not be construed
as duties.

          Section 7.03 Individual Rights of Trustee. The Trustee in its individual or any other
capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or
an Affiliate of the Company with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights. The Trustee is also subject to Sections 7.10 and 7.11.

          Section 7.04 Trustee’s Disclaimer. The Trustee makes no representation as to the
validity or adequacy of this Indenture or the Securities, it shall not be accountable for the
Company’s use of the proceeds from the Securities, and it shall not be responsible for any
statement in the Securities other than its authentication.

          Section 7.05 Notice of Defaults. If a Default or Event of Default occurs and is
continuing with respect to the Securities of any Series and if it is known to a Responsible Officer
of the Trustee, the Trustee shall mail to each Holder of the Securities of that Series and, if any
Bearer Securities are outstanding, publish on one occasion in an Authorized Newspaper, notice of a
Default or Event of Default within 90 days after it occurs or, if later, after a Responsible
Officer of the Trustee has knowledge of such Default or Event of Default. Except in the case of a
Default or Event of Default in payment of principal of or interest on any Security of any Series,
the Trustee may withhold the notice if and so long as its corporate trust committee or a committee
of its Responsible Officers in good faith determines that withholding the notice is in the
interests of Holders of that Series.

          Section 7.06 Reports by Trustee to Holders. Within 60 days after May 15 in each year,
the Trustee shall transmit by mail to all Holders, as their names and addresses appear on the
register kept by the Registrar and, if any Bearer Securities are outstanding, publish in an
Authorized Newspaper, a brief report dated as of such May 15, in accordance with, and to the extent
required under, TIA Section 313. A copy of each report at the time of its mailing to Holders of any
Series shall be filed with the SEC and each stock exchange on which the Securities of that Series
are listed. The Company shall promptly notify the Trustee when Securities of any Series are listed
on any stock exchange.

          Section 7.07 Compensation and Indemnity. The Company shall pay to the Trustee from
time to time compensation for its services as the Company and the Trustee shall from time to time
agree upon in writing. The Trustee’s compensation shall not be limited by any law on compensation
of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all
reasonable out-of-pocket expenses incurred by it. Such expenses shall include the reasonable
compensation and expenses of the Trustee’s agents and counsel. The Company shall indemnify each of
the Trustee and any predecessor Trustee against any loss, liability or expense (including the cost
of defending itself), including taxes (other than taxes based upon, measured by or determined by
the income of the Trustee) incurred by it except as set forth in this Section 7.07 in the
performance of its duties under this Indenture as Trustee or Agent. The Trustee shall notify the
Company promptly of any claim for which it may seek indemnity. The Company shall defend the claim
and the Trustee shall cooperate in the defense. The Trustee may have one separate counsel and the
Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay for
any settlement made without its consent, which consent shall not be unreasonably withheld. This
indemnification shall apply to officers, directors, employees, shareholders and agents of the
Trustee. The Company need not reimburse any expense or indemnify against any loss or liability
incurred by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee
through the negligence or bad faith of any such persons. To secure the Company’s payment
obligations in this Section, the Trustee

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shall have a lien prior to the Securities of any Series on all money or property held or collected
by the Trustee, except that held in trust to pay principal of and interest on particular Securities
of that Series. When the Trustee incurs expenses or renders services after an Event of Default
specified in Section 6.01(d) or (e) occurs, the expenses and the compensation for the services are
intended to constitute expenses of administration under any Bankruptcy Law. The provisions of this
Section shall survive the resignation or removal of the Trustee and the termination of this
Indenture.

          Section 7.08 Replacement of Trustee. A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective only upon the successor Trustee’s
acceptance of appointment as provided in this Section. The Trustee may resign with respect to the
Securities of one or more Series by so notifying the Company at least 30 days prior to the date of
the proposed resignation. The Holders of a majority in principal amount of the Securities of any
Series may remove the Trustee with respect to that Series by so notifying the Trustee and the
Company. The Company may remove the Trustee with respect to Securities of one or more Series if:

     (a) the Trustee fails to comply with Section 7.10;

     (b) the Trustee is adjudged bankrupt or insolvent or an order for relief is entered
with respect to the Trustee under any Bankruptcy Law;

     (c) a Custodian or public officer takes charge of the Trustee or its property; or

     (d) the Trustee becomes incapable of acting.

          If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee
for any reason, the Company shall promptly appoint a successor Trustee.

          If a successor Trustee with respect to the Securities of any one or more Series does
not take office within 60 days after the retiring Trustee resigns or is removed, the retiring
Trustee, the Company or the Holders of at least a majority in principal amount of the Securities of
the applicable Series may petition any court of competent jurisdiction for the appointment of a
successor Trustee.

          A successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer
all property held by it as Trustee to the successor Trustee subject to the lien provided for in
Section 7.07, the resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee with respect to each
Series of Securities for which it is acting as Trustee under this Indenture. A successor Trustee
shall mail a notice of its succession to each Holder of each such Series and, if any Bearer
Securities are outstanding, publish such notice on one occasion in an Authorized Newspaper.
Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s obligations
under Section 7.07 hereof shall continue for the benefit of the retiring Trustee with respect to
expenses and liabilities incurred by it prior to the date of such replacement.

          Section 7.09 Successor Trustee by Merger, etc. If the Trustee consolidates with,
merges or converts into, or transfers all or substantially all of its corporate trust business to,
another corporation, the successor corporation without any further act shall be the successor
Trustee.

          Section 7.10 Eligibility; Disqualification. This Indenture shall always have a Trustee
who satisfies the requirements of TIA Section 310(a)(1), (2) and (5). The Trustee shall comply with
TIA Section 310(b).

          Section 7.11 Preferential Collection of Claims Against Company. The Trustee is subject
to TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee
who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated.

ARTICLE VIII

SATISFACTION AND DISCHARGE; DEFEASANCE

          Section 8.01 Satisfaction and Discharge of Indenture.

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          This Indenture shall upon Company Order cease to be of further effect (except as
hereinafter provided in this Section 8.01), and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

     (a) any of the following shall have occurred: (i) no Securities have been issued hereunder;
(ii) all Securities theretofore authenticated and delivered (other than Securities that have been
destroyed, lost or stolen and that have been replaced or paid) have been delivered to the Trustee
for cancellation; or (iii) all such Securities not theretofore delivered to the Trustee for
cancellation (1) have become due and payable, or (2) will become due and payable at their Stated
Maturity within one year, or (3) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and
at the expense, of the Company; and the Company has irrevocably deposited or caused to be deposited
with the Trustee as trust funds in trust an amount sufficient for the purpose of paying and
discharging the entire indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal and interest to the date of such deposit (in the case of Securities
which have become due and payable on or prior to the date of such deposit) or to the Stated
Maturity or redemption date, as the case may be;

     (b) the Company has paid or caused to be paid all other sums payable hereunder by
the Company; and

     (c) the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

          Notwithstanding the satisfaction and discharge of this Indenture, the obligations of
the Company to the Trustee under Section 7.07 and, if money shall have been deposited with the
Trustee pursuant to clause (a) of this Section, the provisions of Sections 2.04 , 2.05 , 2.07,
2.08, 8.01, 8.02 and 8.05 shall survive.

          Section 8.02 Application of Trust Funds; Indemnification.

     (a) Subject to the provisions of Section 8.05, all money deposited with the Trustee
pursuant to Section 8.01, all money and U.S. Government Obligations or Foreign Government
Obligations deposited with the Trustee pursuant to Section 8.03 or 8.04 and all money received by
the Trustee in respect of U.S. Government Obligations or Foreign Government Obligations deposited
with the Trustee pursuant to Section 8.03 or 8.04, shall be held in trust and applied by it, in
accordance with the provisions of the Securities and this Indenture, to the payment, either
directly or through any Paying Agent (other than the Company acting as its own Paying Agent) as the
Trustee may determine, to the persons entitled thereto, of the principal and interest for whose
payment such money has been deposited with or received by the Trustee or analogous payments as
contemplated by Sections 8.03 or 8.04.

     (b) The Company shall pay and shall indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against U.S. Government Obligations or Foreign Government
Obligations deposited pursuant to Sections 8.03 or 8.04 or the interest and principal received in
respect of such obligations other than any payable by or on behalf of Holders.

     (c) The Trustee shall deliver or pay to the Company from time to time upon Company
Request any U.S. Government Obligations or Foreign Government Obligations or money held by it as
provided in Sections 8.03 or 8.04 which, in the opinion of a nationally recognized firm of
independent certified public accountants expressed in a written certification thereof delivered to
the Trustee, are then in excess of the amount thereof which then would have been required to be
deposited for the purpose for which such U.S. Government Obligations or Foreign Government
Obligations or money were deposited or received. This provision shall not authorize the sale by the
Trustee of any U.S. Government Obligations or Foreign Government Obligations held under this
Indenture.

          Section 8.03 Legal Defeasance of Securities of any Series. Unless this Section 8.03 is
otherwise specified, pursuant to Section 2.02(s), to be inapplicable to Securities of any Series,
the Company shall be deemed to have paid and discharged the entire indebtedness on all the
outstanding Securities of any Series

21

 

on the 91st day after the date of the deposit referred to in subparagraph (d) hereof, and the
provisions of this Indenture, as it relates to such outstanding Securities of such Series, shall no
longer be in effect (and the Trustee, at the expense of the Company, shall, at Company Request,
execute proper instruments acknowledging the same), except as to:

     (a) the rights of Holders of Securities of such Series to receive, from the trust
funds described in subparagraph (d) hereof, (i) payment of the principal of and each installment of
principal of and interest on the outstanding Securities of such Series on the Stated Maturity of
such principal or installment of principal or interest, and (ii) the benefit of any mandatory
sinking fund payments applicable to the Securities of such Series on the day on which such payments
are due and payable in accordance with the terms of this Indenture and the Securities of such
Series; and

     (b) the provisions of Sections 2.04, 2.05, 2.07, 2.08, 8.02, 8.03 and 8.05; and

     (c) the rights, powers, trust and immunities of the Trustee hereunder;

     provided that, the following conditions shall have been satisfied:

     (d) with reference to this Section 8.03, the Company shall have deposited or caused
to be irrevocably deposited (except as provided in Section 8.02(c)) with the Trustee as trust funds
in trust for the purpose of making the following payments, specifically pledged as security for and
dedicated solely to the benefit of the Holders of such Securities (i) in the case of Securities of
such Series denominated in Dollars, cash in Dollars and/or U.S. Government Obligations, or (ii) in
the case of Securities of such Series denominated in a Foreign Currency (other than a composite
currency), money and/or Foreign Government Obligations, which through the payment of interest and
principal in respect thereof in accordance with their terms, will provide (without reinvestment and
assuming no tax liability will be imposed on such Trustee), not later than one day before the due
date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge each installment of principal of and interest, if
any, on and any mandatory sinking fund payments in respect of all the Securities of such Series on
the dates such installments of interest or principal and such sinking fund payments are due;

     (e) such deposit will not result in a breach or violation of, or constitute a
default under, this Indenture or any other agreement or instrument to which the Company is a party
or by which it is bound;

     (f) no Default or Event of Default with respect to the Securities of such Series
shall have occurred and be continuing on the date of such deposit or during the period ending on
the 91st day after such date;

     (g) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel to the effect that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this
Indenture, there has been a change in the applicable Federal income tax law, in either case to the
effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the
Securities of such Series will not recognize income, gain or loss for Federal income tax purposes
as a result of such deposit, defeasance and discharge and will be subject to Federal income tax on
the same amounts and in the same manner and at the same times as would have been the case if such
deposit, defeasance and discharge had not occurred;

     (h) the Company shall have delivered to the Trustee an Officers’ Certificate
stating that the deposit was not made by the Company with the intent of preferring the Holders of
the Securities of such Series over any other creditors of the Company or with the intent of
defeating, hindering, delaying or defrauding any other creditors of the Company;

     (i) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for relating to the
defeasance contemplated by this Section have been complied with; and

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     (j) such defeasance shall not result in the trust arising from such deposit
constituting an investment company within the meaning of the Investment Company Act of 1940, as
amended, unless such trust shall be registered under such Act or exempt from registration
thereunder.

          Section 8.04 Covenant Defeasance. Unless this Section 8.04 is otherwise specified,
pursuant to Section 2.02(s), to be inapplicable to Securities of any Series, on and after the 91st
day after the date of the deposit referred to in subparagraph (a) hereof, the Company may omit to
comply with respect to the Securities of any Series with any term, provision or condition set forth
under Sections 4.02, 4.03, and 5.01 as well as any additional covenants specified in a supplemental
indenture for such Series of Securities or a Board Resolution or an Officers’ Certificate delivered
pursuant to Section 2.02 (and the failure to comply with any such covenants shall not constitute a
Default or Event of Default with respect to such Series under Section 6.01) and the occurrence of
any event specified in a supplemental indenture for such Series of Securities or a Board Resolution
or an Officers’ Certificate delivered pursuant to Section 2.02 and designated as an Event of
Default shall not constitute a Default or Event of Default hereunder, with respect to the
Securities of such Series, provided that the following conditions shall have been satisfied:

     (a) with reference to this Section 8.04, the Company has deposited or caused to be
irrevocably deposited (except as provided in Section 8.02(c)) with the Trustee as trust funds in
trust for the purpose of making the following payments specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of such Securities (i) in the case of Securities of
such Series denominated in Dollars, cash in Dollars and/or U.S. Government Obligations, or (ii) in
the case of Securities of such Series denominated in a Foreign Currency (other than a composite
currency), money and/or Foreign Government Obligations, which through the payment of interest and
principal in respect thereof in accordance with their terms, will provide (and without reinvestment
and assuming no tax liability will be imposed on such Trustee), not later than one day before the
due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally
recognized firm of independent certified public accountants expressed in a written certification
thereof delivered to the Trustee, to pay and discharge each installment of principal of and
interest, if any, on and any mandatory sinking fund payments in respect of the Securities of such
Series on the dates such installments of interest or principal and such sinking fund payments are
due;

     (b) such deposit will not result in a breach or violation of, or constitute a
default under, this Indenture or any other agreement or instrument to which the Company is a party
or by which it is bound;

     (c) no Default or Event of Default with respect to the Securities of such Series
shall have occurred and be continuing on the date of such deposit or during the period ending on
the 91st day after such date;

     (d) the Company shall have delivered to the Trustee an Opinion of Counsel to the
effect that Holders of the Securities of such Series will not recognize income, gain or loss for
federal income tax purposes as a result of such deposit and covenant defeasance and will be subject
to federal income tax on the same amounts, in the same manner and at the same times as would have
been the case if such deposit and covenant defeasance had not occurred;

     (e) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the
covenant defeasance contemplated by this Section have been complied with; and

     (f) Such defeasance shall not result in the trust arising from such deposit
constituting an investment company within the meaning of the Investment Company Act of 1940, as
amended, unless such trust shall be registered under such Act or exempt from registration
thereunder.

          Section 8.05 Repayment to Company. The Trustee and the Paying Agent shall pay to the
Company upon written request any money held by them for the payment of principal and interest that
remains unclaimed for two years, and after such time, Holders entitled to the money must look to
the Company for payment as general creditors unless an applicable abandoned property law designates
another person.

          Section 8.06 Reinstatement. If the Trustee or the Paying Agent is unable to apply any
money deposited with respect to Securities of any series in accordance with Section 8.01 by reason
of any legal

23

 

proceeding or by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the obligations of the Company under this
Indenture with respect to the Securities of such series and under the Securities of such series
shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01 until
such time as the Trustee or the Paying Agent is permitted to apply all such money in accordance
with Section 8.01; provided, however, that if the Company has made any payment of principal of,
premium (if any) or interest on any Additional Amounts with respect to any Securities because of
the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders
of such Securities to receive such payment from the money held by the Trustee or the Paying Agent.

ARTICLE IX

AMENDMENTS AND WAIVERS

          Section 9.01 Without Consent of Holders. The Company and the Trustee may amend or
supplement this Indenture or the Securities of one or more Series without the consent of any
Holder:

     (a) to evidence the succession of another person to the Company under this
Indenture and the Securities and the assumption by any such successor person of the obligations of
the Company hereunder and under the Securities;

     (b) to add or remove covenants of the Company for the benefit of the Holders of all
or any series of Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are expressly being included for the benefit of
such series) or to surrender any right or power herein conferred upon the Company provided such
action does not adversely affect the interests of the Company;

     (c) to add any additional Events of Default;

     (d) to add to or change any of the provisions of this Indenture to such extent as
shall be necessary to permit or facilitate the issuance of Securities in bearer form, registrable
or not registrable as to principal, and with or without interest coupons, or to permit or
facilitate the issuance of Securities in uncertificated form;

     (e) to add to, change or eliminate any of the provisions of this Indenture in
respect of one or more series of Securities, provided that any such addition, change or elimination
(A) shall neither (i) apply to any Security of any series created prior to the execution of such
supplemental indenture and entitled to the benefit of such provision nor (ii) modify the rights of
the Holder of any such Security with respect to such provision or (B) shall become effective only
when there is no such Security Outstanding;

     (f) to establish the forms or terms of the Securities of any series issued pursuant
to the terms hereof;

     (g) to cure any ambiguity or correct any inconsistency in this Indenture;

     (h) to evidence and provide for the acceptance of appointment hereunder by a
successor Trustee with respect to the Securities of one or more series and to add to or change any
of the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee;

     (i) to qualify this Indenture under the Trust Indenture Act;

     (j) to provide for uncertificated securities in addition to certificated
securities;

     (k) to supplement any provisions of this Indenture necessary to permit or
facilitate the defeasance and discharge of any series of Securities, provided that such action does
not adversely affect the interests of the Holders of Securities of such series or any other series;
and

     (l) to comply with the rules or regulations of any securities exchange or automated
quotation system on which any of the Securities may be listed or traded.

24

 

          Section 9.02 With Consent of Holders. The Company and the Trustee may enter into a
supplemental indenture with the written consent of the Holders of at least a majority in principal
amount of the outstanding Securities of each Series affected by such supplemental indenture
(including consents obtained in connection with a tender offer or exchange offer for the Securities
of such Series), for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Holders of each such Series. Except as provided in
Section 6.13, the Holders of at least a majority in principal amount of the outstanding Securities
of any Series by notice to the Trustee (including consents obtained in connection with a tender
offer or exchange offer for the Securities of such Series) may waive compliance by the Company with
any provision of this Indenture or the Securities with respect to such Series. It shall not be
necessary for the consent of the Holders of Securities under this Section 9.02 to approve the
particular form of any proposed supplemental indenture or waiver, but it shall be sufficient if
such consent approves the substance thereof. After a supplemental indenture or waiver under this
section becomes effective, the Company shall mail to the Holders of Securities affected thereby
and, if any Bearer Securities affected thereby are outstanding, publish on one occasion in an
Authorized Newspaper, a notice briefly describing the supplemental indenture or waiver. Any failure
by the Company to mail or publish such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental indenture or waiver.

          Section 9.03 Limitations. Without the consent of each Holder affected, an amendment or
waiver may not:

     (a) reduce the amount of Securities whose Holders must consent to an amendment,
supplement or waiver;

     (b) reduce the rate of or extend the time for payment of interest (including
default interest) on any Security;

     (c) reduce the principal or change the Stated Maturity of any Security or reduce
the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous
obligation;

     (d) reduce the principal amount of Discount Securities payable upon acceleration of
the maturity thereof;

     (e) waive a Default or Event of Default in the payment of the principal of or
interest, if any, on any Security (except a rescission of acceleration of the Securities of any
Series by the Holders of at least a majority in principal amount of the outstanding Securities of
such Series and a waiver of the payment default that resulted from such acceleration);

     (f) make the principal of or interest, if any, on any Security payable in any
currency other than that stated in the Security;

     (g) make any change in Sections 6.08, 6.13, or 9.03; or

     (h) waive a redemption payment with respect to any Security.

          Section 9.04 Compliance with Trust Indenture Act. Every amendment to this Indenture or
the Securities of one or more Series shall be set forth in a supplemental indenture hereto that
complies with the TIA as then in effect.

          Section 9.05 Revocation and Effect of Consents. Until an amendment is set forth in a
supplemental indenture or a waiver becomes effective, a consent to it by a Holder of a Security is
a continuing consent by the Holder and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder’s Security, even if notation of the
consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the
consent as to his Security or portion of a Security if the Trustee receives the notice of
revocation before the date of the supplemental indenture or the date the waiver becomes effective.
Any amendment or waiver once effective shall bind every Holder of each Series

25

 

affected by such amendment or waiver unless it is of the type described in any of clauses
(a) through (h) of Section 9.03. In that case, the amendment or waiver shall bind each Holder of a
Security who has consented to it and every subsequent Holder of a Security or portion of a Security
that evidences the same debt as the consenting Holder’s Security.

          Section 9.06 Notation on or Exchange of Securities. The Trustee may place an
appropriate notation about an amendment or waiver on any Security of any Series thereafter
authenticated. The Company in exchange for Securities of that Series may issue and the Trustee
shall authenticate upon request new Securities of that Series that reflect the amendment or waiver.

          Section 9.07 Trustee Protected. In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive, in addition to the
documents required by Section 10.04, and (subject to Section 7.01) shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee shall sign all supplemental indentures,
except that the Trustee need not sign any supplemental indenture that adversely affects its rights.

ARTICLE X

MISCELLANEOUS

          Section 10.01 Trust Indenture Act Controls. If any provision of this Indenture limits,
qualifies or conflicts with another provision which is required or deemed to be included in this
Indenture by the TIA, such required or deemed provision shall control.

          Section 10.02 Notices.

     (a) Any notice or communication by the Company or the Trustee to the other, or by a
Holder to the Company or the Trustee, is duly given if in writing and delivered in person or mailed
by first-class mail or sent by telecopier transmission addressed as follows:

if to the Company:

Majesco Entertainment Company

160 Raritan Center Parkway

Edison, New Jersey 08837

Attention: Chief Counsel

Telephone: (732) 225-8910

Facsimile: (732) 225-5451

if to the Trustee:

[          ]

     (b) The Company or the Trustee by notice to the other may designate additional or
different addresses for subsequent notices or communications. Any notice or communication to a
Holder shall be mailed by first-class mail to his address shown on the register kept by the
Registrar and, if any Bearer Securities are outstanding, published in an Authorized Newspaper.
Failure to mail a notice or communication to a Holder of any Series or any defect in it shall not
affect its sufficiency with respect to other Holders of that or any other Series. If a notice or
communication is mailed or published in the manner provided above, within the time prescribed, it
is duly given, whether or not the Holder receives it. If the Company mails a notice or
communication to Holders, it shall mail a copy to the Trustee and each Agent at the same time.

     (c) Any notice or demand that by any provision of this Indenture is required or
permitted to be given or served by the Company may, at the Company’s written request received by
the Trustee not fewer than five (5) Business Days prior (or such shorter period of time as may be
acceptable to the Trustee) to the date on which such notice must be given or served, be given or
served by the Trustee in the name of and at the expense of the Company.

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          Section 10.03 Communication by Holders with Other Holders. Holders of any Series may
communicate pursuant to TIA Section 312(b) with other Holders of that Series or any other Series
with respect to their rights under this Indenture or the Securities of that Series or all Series.
The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA Section
312(c).

          Section 10.04 Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee:

     (a) an Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the proposed action have
been complied with; and

     (b) an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with.

          Section 10.05 Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a condition or covenant provided for in this Indenture
(other than a certificate provided pursuant to TIA Section 314(a)(4)) shall comply with the
provisions of TIA Section 314(e) and shall include:

     (a) a statement that the person making such certificate or opinion has read such
covenant or condition;

     (b) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (c) a statement that, in the opinion of such person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with; and

     (d) a statement as to whether or not, in the opinion of such person, such condition
or covenant has been complied with.

          Section 10.06 Rules by Trustee and Agents. The Trustee may make reasonable rules for
action by or a meeting of Holders of one or more Series. Any Agent may make reasonable rules and
set reasonable requirements for its functions.

          Section 10.07 Legal Holidays. Unless otherwise provided by Board Resolution, Officers’
Certificate or supplemental indenture hereto for a particular Series, a “Legal Holiday” is any day
that is not a Business Day. If a payment date is a Legal Holiday at a place of payment, payment may
be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall
accrue for the intervening period.

          Section 10.08 No Recourse Against Others. A director, officer, employee or
stockholder, as such, of the Company shall not have any liability for any obligations of the
Company under the Securities or the Indenture or for any claim based on, in respect of or by reason
of such obligations or their creation. Each Holder by accepting a Security waives and releases all
such liability. The waiver and release are part of the consideration for the issue of the
Securities.

          Section 10.09 Counterparts. This Indenture may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement.

          Section 10.10 Governing Laws. This Indenture and the Securities will be governed by,
and construed in accordance with, the internal laws of the State of New York, without regard to
conflict of law principles that would result in the application of any law other than the laws of
the State of New York.

27

 

          Section 10.11 No Adverse Interpretation of Other Agreements. This Indenture may not be
used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the
Company. Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

          Section 10.12 Successors. All agreements of the Company in this Indenture and the
Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind its
successor.

          Section 10.13 Severability. In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

          Section 10.14 Table of Contents, Headings, Etc. The Table of Contents, Cross-Reference
Table, and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part hereof, and shall in no way modify
or restrict any of the terms or provisions hereof.

          Section 10.15 Securities in a Foreign Currency. Unless otherwise specified in a Board
Resolution, a supplemental indenture hereto or an Officers’ Certificate delivered pursuant to
Section 2.02 of this Indenture with respect to a particular Series of Securities, whenever for
purposes of this Indenture any action may be taken by the Holders of a specified percentage in
aggregate principal amount of Securities of all Series or all Series affected by a particular
action at the time outstanding and, at such time, there are outstanding Securities of any Series
which are denominated in a coin or currency other than Dollars, then the principal amount of
Securities of such Series which shall be deemed to be outstanding for the purpose of taking such
action shall be that amount of Dollars that could be obtained for such amount at the Market
Exchange Rate at such time. For purposes of this Section 10.15, “Market Exchange Rate” shall mean
the noon Dollar buying rate in New York City for cable transfers of that currency as published by
the Federal Reserve Bank of New York. If such Market Exchange Rate is not available for any reason
with respect to such currency, the Trustee shall use, in its sole discretion and without liability
on its part, such quotation of the Federal Reserve Bank of New York as of the most recent available
date, or quotations from one or more major banks in The City of New York or in the country of issue
of the currency in question or such other quotations as the Trustee, upon consultation with the
Company, shall deem appropriate. The provisions of this paragraph shall apply in determining the
equivalent principal amount in respect of Securities of a Series denominated in currency other than
Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this
Indenture. All decisions and determinations of the Trustee regarding the Market Exchange Rate or
any alternative determination provided for in the preceding paragraph shall be in its sole
discretion and shall, in the absence of manifest error, to the extent permitted by law, be
conclusive for all purposes and irrevocably binding upon the Company and all Holders.

          Section 10.16 Judgment Currency. The Company agrees, to the fullest extent that it may
effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any
court it is necessary to convert the sum due in respect of the principal of or interest or other
amount on the Securities of any Series (the “Required Currency”) into a currency in which a
judgment will be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at
which in accordance with normal banking procedures the Trustee could purchase in The City of New
York the Required Currency with the Judgment Currency on the day on which final unappealable
judgment is entered, unless such day is not a New York Banking Day, then the rate of exchange used
shall be the rate at which in accordance with normal banking procedures the Trustee could purchase
in The City of New York the Required Currency with the Judgment Currency on the New York Banking
Day preceding the day on which final unappealable judgment is entered and (b) its obligations under
this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied
by any tender, any recovery pursuant to any judgment (whether or not entered in accordance with
subsection (a)), in any currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the full amount of the
Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as
an alternative or additional cause of action for the purpose of recovering in the Required Currency
the amount, if any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture. For purposes of the foregoing, “New York
Banking Day” means any day except a Saturday,

28

 

Sunday or a legal holiday in The City of New York on which banking institutions are authorized or
required by law, regulation or executive order to close.

ARTICLE XI

SINKING FUNDS

          Section 11.01 Applicability of Article. The provisions of this Article shall be
applicable to any sinking fund for the retirement of the Securities of a Series, except as
otherwise permitted or required by any form of Security of such Series issued pursuant to this
Indenture. The minimum amount of any sinking fund payment provided for by the terms of the
Securities of any Series is herein referred to as a “ mandatory sinking fund payment “ and any
other amount provided for by the terms of Securities of such Series is herein referred to as an “
optional sinking fund payment .” If provided for by the terms of Securities of any Series, the cash
amount of any sinking fund payment may be subject to reduction as provided in Section 11.02. Each
sinking fund payment shall be applied to the redemption of Securities of any Series as provided for
by the terms of the Securities of such Series.

          Section 11.02 Satisfaction of Sinking Fund Payments with Securities. The Company may,
in satisfaction of all or any part of any sinking fund payment with respect to the Securities of
any Series to be made pursuant to the terms of such Securities (1) deliver outstanding Securities
of such Series to which such sinking fund payment is applicable (other than any of such Securities
previously called for mandatory sinking fund redemption) and (2) apply as credit Securities of such
Series to which such sinking fund payment is applicable and which have been repurchased by the
Company or redeemed either at the election of the Company pursuant to the terms of such Series of
Securities (except pursuant to any mandatory sinking fund) or through the application of permitted
optional sinking fund payments or other optional redemptions pursuant to the terms of such
Securities, provided that such Securities have not been previously so credited. Such Securities
shall be received by the Trustee, together with an Officers’ Certificate with respect thereto, not
later than 15 days prior to the date on which the Trustee begins the process of selecting
Securities for redemption, and shall be credited for such purpose by the Trustee at the price
specified in such Securities for redemption through operation of the sinking fund and the amount of
such sinking fund payment shall be reduced accordingly. If as a result of the delivery or credit of
Securities in lieu of cash payments pursuant to this Section 11.02, the principal amount of
Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be
less than $100,000, the Trustee need not call Securities of such Series for redemption, except upon
receipt of a Company Order that such action be taken, and such cash payment shall be held by the
Trustee or a Paying Agent and applied to the next succeeding sinking fund payment, provided,
however, that the Trustee or such Paying Agent shall from time to time upon receipt of a Company
Order pay over and deliver to the Company any cash payment so being held by the Trustee or such
Paying Agent upon delivery by the Company to the Trustee of Securities of that Series purchased by
the Company having an unpaid principal amount equal to the cash payment required to be released to
the Company.

          Section 11.03 Redemption of Securities for Sinking Fund. Not less than 45 days (unless
otherwise indicated in the Board Resolution, supplemental indenture or Officers’ Certificate in
respect of a particular Series of Securities) prior to each sinking fund payment date for any
Series of Securities, the Company will deliver to the Trustee an Officers’ Certificate specifying
the amount of the next ensuing mandatory sinking fund payment for that Series pursuant to the terms
of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the
portion thereof, if any, which is to be satisfied by delivering and crediting of Securities of that
Series pursuant to Section 11.02, and the optional amount, if any, to be added in cash to the next
ensuing mandatory sinking fund payment, and the Company shall thereupon be obligated to pay the
amount therein specified. Not less than 30 days (unless otherwise indicated in the Board
Resolution, Officers’ Certificate or supplemental indenture in respect of a particular Series of
Securities) before each such sinking fund payment date the Trustee shall select the Securities to
be redeemed upon such sinking fund payment date in the manner specified in Section 3.02 and cause
notice of the redemption thereof to be given in the name of and at the expense of the Company in
the manner provided in Section 3.03. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Sections 3.04, 3.05 and 3.06.

29

 

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

MAJESCO ENTERTAINMENT COMPANY

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 
	 
	 	 	 	 
	[          ],	 	 
	as Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 

30

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