Document:

Exhibit 4.1 (8-K 2012.02.27)

Exhibit 4.1
EXECUTION COPY

RIGHTS AGREEMENT
Dated as of February 27, 2012

between
PRESTIGE BRANDS HOLDINGS, INC.
and
COMPUTERSHARE TRUST COMPANY, N.A.

as Rights Agent

	
				
	 
	Table of Contents
	Page

	Section 1.
	Definitions
	1
	

	Section 2.
	Appointment of Rights Agent
	6
	

	Section 3.
	Issue of Right Certificates
	6
	

	Section 4.
	Form of Right Certificates
	7
	

	Section 5.
	Countersignature and Registration
	7
	

	Section 6.
	Transfer, Split-up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates
	8
	

	Section 7.
	Exercise of Rights; Purchase Price; Expiration Date of Rights
	8
	

	Section 8.
	Cancellation and Destruction of Right Certificates
	10
	

	Section 9.
	Status and Availability of Preferred Shares
	10
	

	Section 10.
	Preferred Shares Record Date
	10
	

	Section 11.
	Adjustment of Purchase Price, Number of Shares or Number of Rights
	11
	

	Section 12.
	Certificate of Adjustment
	17
	

	Section 13.
	Consolidation, Merger, Sale or Transfer of Assets or Earning Power
	17
	

	Section 14.
	Fractional Rights and Fractional Shares
	18
	

	Section 15.
	Rights of Action
	19
	

	Section 16.
	Agreement of Right Holders
	19
	

	Section 17.
	Right Certificate Holder Not Deemed a Stockholder
	20
	

	Section 18.
	Concerning the Rights Agent
	20
	

	Section 19.
	Merger or Consolidation or Change of Name of Rights Agent
	20
	

	Section 20.
	Duties of Rights Agent
	21
	

	Section 21.
	Change of Rights Agent
	23
	

	Section 22.
	Issuance of New Right Certificates
	24
	

	Section 23.
	Redemption
	24
	

	Section 24.
	Exchange
	25
	

	Section 25.
	Notice of Certain Events
	26
	

	Section 26.
	Notices
	27
	

	Section 27.
	Supplements and Amendments
	28
	

	Section 28.
	Successors
	28
	

	Section 29.
	Benefits of this Agreement
	28
	

	Section 30.
	Severability
	28
	

	Section 31.
	Governing Law
	28
	

	Section 32.
	Counterparts
	29
	

	Section 33.
	Descriptive Headings
	29
	

	Section 34.
	Administration
	29
	

	Section 35.
	Force Majeure
	29
	

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

RIGHTS AGREEMENT
This Rights Agreement (this “Agreement”), dated as of February 27, 2012, is between Prestige Brands Holdings, Inc., a Delaware corporation (the “Company”), and Computershare Trust Company, N.A., a federally chartered trust company (the “Rights Agent”).
The Board of Directors of the Company has authorized and declared a dividend of one preferred share purchase right (a “Right”) for each share of Common Stock, par value $0.01 per share, of the Company outstanding on the Close of Business (as defined below) on March 8, 2012 (the “Record Date”) and has authorized the issuance of one Right with respect to each additional Common Share issued by the Company between the Record Date and the earliest of (i) the Close of Business on the Distribution Date, (ii) the Redemption Date or (iii) the Close of Business on the Final Expiration Date (as all are defined below), and additional Common Shares that shall become outstanding after the Distribution Date as provided in Section 22 of this Agreement, each Right initially representing the right to purchase one one-thousandth of a Preferred Share (as defined below), subject to adjustment, upon the terms and subject to the conditions below.
Accordingly, in consideration of the premises and the mutual agreements herein set forth, the parties agree as follows:
		
	1.
	Definitions. For purposes of this Agreement, the following terms have the meanings indicated:

1.1    “Acquiring Person” means any Person (other than an Exempt Person) who or which, together with all Affiliates and Associates of such Person, shall be the Beneficial Owner of 10% or more of the Common Shares of the Company then outstanding, but shall not include (i) the Company, (ii) any Subsidiary of the Company, (iii) any employee benefit plan of the Company or of any Subsidiary of the Company, (iv) any entity holding Common Shares for or pursuant to the terms of any such employee benefit plan or (v) any Person who or which, on the date of this Agreement, is a Beneficial Owner of 10% or more of the Common Shares of the Company then outstanding, other than a Person who or which is not an Affiliate or Associate of the Beneficial Owner on the date of this Agreement and who or which subsequently becomes an Affiliate or Associate of such Beneficial Owner without the prior written approval of the Board of Directors (a “Grandfathered Stockholder”); provided, however, that if (a) a Grandfathered Stockholder who or which constituted a Grandfathered Stockholder on the thirtieth day prior to the date of this Agreement becomes, after the date of this Agreement, the Beneficial Owner of additional Common Shares representing 1% or more of the Common Shares of the Company then outstanding (other than Common Shares acquired solely as a result of corporate action of the Company not caused, directly or indirectly, by such Person) at any time such that the Grandfathered Stockholder is or thereby becomes the Beneficial Owner of 10% or more of the Common Shares then outstanding, or (b) any Grandfathered Stockholder not described in clause (a) becomes, after the date of this Agreement, the Beneficial Owner of additional Common Shares (other than Common Shares acquired solely as a result of corporate action of the Company not caused, directly or indirectly, by such Person) at any time such that the 

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Grandfathered Stockholder is or thereby becomes the Beneficial Owner of 10% or more of the Common Shares then outstanding, then, in either such case, such Grandfathered Stockholder shall be deemed an Acquiring Person; provided, further, that upon the first decrease of a Grandfathered Stockholder's Beneficial Ownership below 10%, such Grandfathered Stockholder shall no longer be considered a Grandfathered Stockholder and this clause (v) shall have no further force or effect with respect to such Grandfathered Stockholder.

Notwithstanding the foregoing, no Person shall become an Acquiring Person as the result of an acquisition of Common Shares by the Company which, by reducing the number of shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 10% (or such other percentage as would otherwise result in such Person becoming an Acquiring Person) or more of the Common Shares of the Company then outstanding; provided, however, that if a Person would, but for the provisions of this paragraph, become an Acquiring Person by reason of an acquisition of Common Shares by the Company and shall, after such share purchases by the Company, become the Beneficial Owner of any additional Common Shares of the Company at any time such that the Person is or thereby becomes the Beneficial Owner of 10% or more of the Common Shares of the Company then outstanding (other than Common Shares acquired solely as a result of corporate action of the Company not caused, directly or indirectly, by such Person), then such Person shall be deemed to be an Acquiring Person.
Notwithstanding the foregoing paragraphs of this Section 1, if the Board of Directors of the Company determines in good faith that a Person who would otherwise be an Acquiring Person has become such inadvertently, and such Person divests as promptly as practicable a sufficient number of Common Shares so that such Person would no longer be an Acquiring Person, then such Person shall not be deemed to have become an Acquiring Person for any purposes of this Agreement.  Notwithstanding the foregoing, if a bona fide swaps dealer who would otherwise be an “Acquiring Person” has become so as a result of its actions in the ordinary course of its business that the Board of Directors of the Company determines, in its sole discretion, were taken without the intent or effect of evading or assisting any other Person to evade the purposes and intent of this Agreement, or otherwise seeking to control or influence the management or policies of the Company, then, and unless and until the Board of Directors shall otherwise determine, such Person shall not be deemed to be an “Acquiring Person” for any purposes of this Agreement. 
1.2    “Affiliate” and “Associate” shall have the respective meanings ascribed to such
 terms in Rule 12b-2 promulgated under the Exchange Act, as in effect on the date of this Agreement.

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

1.3.1    which such Person or any of such Person's Affiliates or Associates beneficially owns, directly or indirectly, within the meaning of Rule 13d-3 promulgated under the Exchange Act, as in effect on the date of this Agreement;

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

1.3.3    which are beneficially owned, directly or indirectly, by any other Person with which such Person or any of such Person's Affiliates or Associates has (i) any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), written or otherwise, for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to Section 1.3.2(ii)) or disposing of any securities of the Company or (ii) any agreement, arrangement or understanding, whether or not in writing, to cooperate in obtaining, changing or influencing the control of the Company (except to the extent contemplated by the proviso to Section 1.3.2(ii)); or

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

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

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1.4     “Business Day” means any day other than a Saturday, a 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.

1.5    “Close of Business” on any given date means 5:00 p.m., New York time, on such date; provided, however, that if such date is not a Business Day, it means 5:00 p.m., New York time, on the next succeeding Business Day.

1.6    “Common Shares,” when used with reference to the Company, means the shares of Common Stock, par value $0.01 per share, of the Company. “Common Shares,” when used with reference to any Person other than the Company, means the capital stock (or equity interest) with the greatest voting power of such other Person or, if such other Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person.

1.7    “Common Stock Equivalents” has the meaning set forth in Section 11.1.3(ii)(C).

1.8    “Current Per Share Market Price” has the meaning set forth in Section 11.4.1.

1.9    “Current Value” has the meaning set forth in Section 11.1.3(i)(A).

1.10    “Derivative Interest” means any derivative securities (as defined under Rule 16a-1 under the Exchange Act) that increase in value as the value of the underlying equity increases, including, but not limited to, a long convertible security, a long call option and a short put option position, in each case, regardless of whether (i) such interest conveys any voting rights in such security, (ii) such interest is required to be, or is capable of being, settled through delivery of such security or (iii) transactions hedge the economic effect of such interest.

1.11    “Distribution Date” has the meaning set forth in Section 3.1.

1.12    “Earning Power” has the meaning set forth in Section 13.3.

1.13    “Equivalent Preferred Shares” has the meaning set forth in Section 11.2.

1.14    “Exchange Act” means the Securities Exchange Act of 1934, as amended.

1.15    “Exchange Property” has the meaning set forth in Section 24.6.

1.16    “Exchange Ratio” has the meaning set forth in Section 24.1.

1.17    “Exchange Recipients” has the meaning set forth in Section 24.6.

1.18    “Exempt Person” shall mean any Person that the Board of Directors determines is exempt from this Agreement, which determination shall be made in the sole and absolute discretion of the Board of Directors; provided, that such determination is made, and no Person shall qualify as an Exempt Person unless such determination is made, prior to such time as any 

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Person becomes an Acquiring Person; provided, further, that any Person will cease to be an Exempt Person if the Board of Directors makes a contrary determination with respect to such Person regardless of the reason therefor. 

1.19    “Final Expiration Date” means the earlier of (i) the Close of Business on the day following the certification of the voting results of the Company's 2013 annual meeting of stockholders, if at such meeting a proposal to approve this Agreement has not been passed by the requisite vote of the Company's stockholders, or (ii) February 27, 2022.  In the event that this Agreement expires pursuant to clause (i) of the preceding sentence, the Company shall promptly notify the Rights Agent of such expiration.  

1.20    “NYSE” means the New York Stock Exchange.

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

1.22    “Preferred Shares” means shares of Series A Preferred Stock, par value $0.01 per share, of the Company having such rights and preferences as are set forth in the form of Certificate of Designations set forth as Exhibit A hereto, as the same may be amended from time to time.

1.23    “Purchase Price” has the meaning set forth in Section 7.2.

1.24    “Redemption Date” has the meaning set forth in Section 23.2.

1.25    “Redemption Price” has the meaning set forth in Section 23.1.

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

1.27    “Spread” has the meaning set forth in Section 11.1.3(i).

1.28    “Stock Acquisition Date” means the earlier of the date of (i) the public announcement by the Company or an Acquiring Person that an Acquiring Person has become such or (ii) the public disclosure of facts by the Company or an Acquiring Person indicating that an Acquiring Person has become such.

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

1.30    “Substitution Period” has the meaning set forth in Section 11.1.3.

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

1.32    “Trading Day” means a day on which the principal national securities exchange on which a security is listed or admitted to trading is open for the transaction of business or, if a security is not listed or admitted to trading on any national securities exchange, a Business Day.

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

3.    Issue of Right Certificates.

3.1    Until the earlier of (i) the tenth day after the Stock Acquisition Date (or, in the event the Board of Directors determines on or before such tenth day to effect an exchange in accordance with Section 24 and determines in accordance with Section 24.6 that a later date is advisable, such later date that is not more than twenty days after the Stock Acquisition Date) or (ii) the tenth Business Day (or such later date as may be determined by action of the Board of Directors prior to such time as any Person becomes an Acquiring Person) after the date of the commencement by any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or of any Subsidiary of the Company, or any entity holding Common Shares for or pursuant to the terms of any such benefit plan) of, or of the first public announcement of the intention of any Person (other than any of the Persons referred to in the preceding parenthetical) to commence, a tender or exchange offer the consummation of which would result in any Person becoming an Acquiring Person (such date being herein referred to as the “Distribution Date”), (x) the Rights will be evidenced (subject to the provisions of Section 3.2) by the certificates for Common Shares registered in the names of the holders thereof (which certificates shall also be deemed to be Right Certificates) and not by separate Right Certificates, and (y) the right to receive Right Certificates will be transferable only in connection with the transfer of Common Shares. As soon as practicable after the Distribution Date, the Company will prepare and execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested, at the expense of the Company, send) by first-class, insured, postage-prepaid mail, to each record holder of Common Shares as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the Company, a Right Certificate, substantially in the form of Exhibit B hereto, evidencing one Right for each Common Share so held, subject to adjustment as provided herein. As of the Distribution Date, the Rights will be evidenced solely by such Right Certificates.

3.2    As soon as practicable after the Record Date, the Company will make available a copy of the Summary of Rights to any holder of Rights who may request it prior to the Final Expiration Date.

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3.3    Certificates for Common Shares which become outstanding (including, without limitation, reacquired Common Shares referred to in the last sentence of this Section 3.3) after the Record Date but prior to the earliest of (i) the Close of Business on the Distribution Date, (ii) the Redemption Date or (iii) the Close of Business on the Final Expiration Date shall have impressed on, printed on, written on or otherwise affixed to them the following legend:

This certificate also evidences and entitles the holder hereof to certain Rights as set forth in a Rights Agreement between Prestige Brands Holdings, Inc. and Computershare Trust Company, N.A., as Rights Agent, dated as of February 27, 2012, as it may from time to time be amended or supplemented pursuant to its terms (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of Prestige Brands Holdings, Inc. Under certain circumstances, as set forth in the Rights Agreement, such Rights will be evidenced by separate certificates and will no longer be evidenced by this certificate. Prestige Brands Holdings, Inc. will mail to the holder of this certificate a copy of the Rights Agreement without charge after receipt of a written request therefor. Under certain circumstances, Rights that are or were acquired or beneficially owned by Acquiring Persons (as defined in the Rights Agreement) may become null and void.
If the Company purchases or acquires any Common Shares after the Record Date but prior to the Close of Business on the Distribution Date, any Rights associated with such Common Shares shall be deemed canceled and retired so that the Company shall not be entitled to exercise any Rights associated with the Common Shares which are no longer outstanding.
4.    Form of Right Certificates. The Right Certificates (and the forms of election to purchase Preferred Shares and of assignment to be printed on the reverse thereof) shall be substantially the same as Exhibit B hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which the Rights may from time to time be listed, or to conform to usage. Subject to the other provisions of this Agreement, the Right Certificates shall entitle the holders thereof to purchase such number of one one-thousandths of a Preferred Share as shall be set forth therein at the Purchase Price, but the amount and type of securities purchasable upon exercise and the Purchase Price shall be subject to adjustment as provided herein.

5.    Countersignature and Registration. The Right Certificates shall be executed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its President or any of its Vice Presidents, either manually or by facsimile signature and shall be attested by the Secretary, any Assistant Secretary, the Treasurer or any Assistant Treasurer of the Company, either manually or by facsimile signature. The Right Certificates shall be countersigned by the Rights Agent and shall not be valid for any purpose unless so countersigned, either manually or by facsimile. If any officer of the Company who shall have signed any of the Right Certificates 

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shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Right Certificates nevertheless may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the Person who signed such Right Certificates had not ceased to be such officer of the Company. Any Right Certificate may be signed on behalf of the Company by any Person who, at the actual date of the execution of such Right Certificate, is a proper officer of the Company to sign such Right Certificate, even if at the date of the execution of this Agreement such Person was not such an officer.

Following the Distribution Date, the Rights Agent will keep or cause to be kept, at its principal office, books for registration of the transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Right Certificates, the number of Rights evidenced on its face by each of the Right Certificates, and the date of each of the Right Certificates.
6.    Transfer, Split-up, Combination and Exchange of Right Certificates; Mutilated,
 Destroyed, Lost or Stolen Right Certificates.

6.1    Subject to the provisions of Section 14, at any time after the Close of Business on the Distribution Date, and prior to the earlier of the Redemption Date or the Close of Business on the Final Expiration Date, any Right Certificate (other than a Right Certificate representing Rights that have become void pursuant to Section 11.1.2 or that have been exchanged pursuant to Section 24) may be transferred, split up, combined or exchanged for another Right Certificate, entitling the registered holder to purchase a like number of Preferred Shares as the Right Certificate surrendered then entitled such holder to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Right Certificate shall make such request in writing delivered to the Rights Agent, and shall surrender the Right Certificate to be transferred, split up, combined or exchanged at the principal office of the Rights Agent. Thereupon the Rights Agent shall countersign and deliver to the Person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested. The Company may require payment of a sum sufficient for any tax or governmental charge that may be imposed in connection with any transfer, split-up, combination or exchange of Right Certificates.

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

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

7.1    The registered holder of any Right Certificate (other than a holder whose Rights 

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have become void pursuant to Section 11.1.2 or have been exchanged pursuant to Section 24) may exercise the Rights evidenced thereby in whole or in part at any time after the Distribution Date upon surrender of the Right Certificate, with the form of election to purchase on the reverse side thereof duly executed, to the Rights Agent at its principal office, together with payment of the Purchase Price for each one one-thousandth of a Preferred Share represented by a Right that is exercised and an amount equal to any applicable transfer tax required to be paid pursuant to Section 9, prior to the earliest of (i) the Close of Business on the Final Expiration Date, (ii) the time at which the Rights are redeemed pursuant to Section 23, or (iii) the time at which the Rights are exchanged pursuant to Section 24.

7.2    The purchase price to be paid upon the exercise of each Right to purchase one one-thousandth of a Preferred Share represented by a Right shall initially be $65.00 (the “Purchase Price”) and shall be payable in lawful money of the United States of America in accordance with Section 7.3. Each Right shall initially entitle the holder to acquire one one-thousandth of a Preferred Share upon exercise of the Right. The Purchase Price and the number of Preferred Shares or other securities for which a Right is exercisable shall be subject to adjustment from time to time as provided in Sections 11 and 13.

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

7.4    If the registered holder of any Right Certificate shall exercise less than all the Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent to the registered holder of such Right Certificate or to such holder's duly authorized assigns, subject to the provisions of Section 14.

7.5    Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action with respect to a registered holder upon the occurrence of any purported exercise as set forth in this Section 7 unless such 

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registered holder shall have (i) properly completed and signed the certificate contained in the form of election to purchase set forth on the reverse side of the Right Certificate surrendered for such exercise and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company and the Rights Agent shall reasonably request.

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

9.    Status and Availability of Preferred Shares.

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

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

9.3    The Company further covenants and agrees that it will pay when due and payable any and all federal and state transfer taxes and charges which may be payable in respect of the issuance or delivery of the Right Certificates or of any Preferred Shares upon the exercise of Rights. The Company shall not, however, be required to pay any transfer tax which may be payable in respect of any transfer or delivery of Right Certificates to a Person other than, or the issuance or delivery of certificates or depositary receipts for the Preferred Shares in a name other than that of, the registered holder of the Right Certificate evidencing Rights surrendered for exercise, and shall not be required to issue or deliver any certificates or depositary receipts for Preferred Shares upon the exercise of any Rights until any such tax shall have been paid (any such tax being payable by the holder of such Right Certificate at the time of surrender) or until it has been established to the Company's reasonable satisfaction that no such tax is due.

10.    Preferred Shares Record Date. Each Person in whose name any certificate for Preferred Shares is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Preferred Shares represented thereby on, and such certificate shall be 

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dated, the date upon which the Right Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and any applicable transfer taxes) was made; provided, however, that, if the date of such surrender and payment is a date upon which the Preferred Shares transfer books of the Company are closed, such Person shall be deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the Preferred Shares transfer books of the Company are open.  Prior to the exercise of the Rights evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a holder of Preferred Shares for which the Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends or other distributions, or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein.

11.    Adjustment of Purchase Price, Number of Shares or Number of Rights.

11.1    General.

11.1    In the event the Company shall at any time after the date of this Agreement (i) declare a dividend on the Preferred Shares payable in Preferred Shares, (ii) subdivide the outstanding Preferred Shares, (iii) combine the outstanding Preferred Shares into a smaller number of Preferred Shares or (iv) issue any shares of its capital stock in a reclassification of the Preferred Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided in this Section 11.1, the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification, and the number and kind of shares of capital stock issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of capital stock which, if such Right had been exercised immediately prior to such date, the holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right.

11.1.2    Subject to the second paragraph of this Section 11.1.2 and to Section 24, on the Stock Acquisition Date, each holder of a Right shall thereafter have a right to receive, upon exercise of each Right to purchase one one-thousandth of a Preferred Share at a price equal to the then current Purchase Price, in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares of the Company as shall equal the result obtained by dividing the current Purchase Price by 50% of the then Current Per Share Market Price of the Company's Common Shares (determined pursuant to Section 11.4) on the Stock Acquisition Date. 

From and after the Stock Acquisition Date, any Rights that are or were acquired or beneficially owned by such Acquiring Person (or any Associate or Affiliate of such Acquiring Person) on or after the earlier of (i) the Stock Acquisition Date or (ii) the Distribution Date shall 

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be void, and any holder of such Rights shall thereafter have no right to exercise such Rights under any provision of this Agreement. No Right Certificate shall be issued pursuant to Section 3 that represents Rights beneficially owned by an Acquiring Person whose Rights would be void pursuant to the preceding sentence or by any Associate or Affiliate thereof. No Right Certificate shall be issued at any time upon the transfer of any Rights to an Acquiring Person whose Rights would be void pursuant to this Section 11.1.2 or to any Associate or Affiliate thereof or to any nominee of such Acquiring Person, Associate or Affiliate. Any Right Certificate delivered to the Rights Agent for transfer to an Acquiring Person whose Rights would be void pursuant to the preceding sentence, or to any Associate or Affiliate thereof, shall be canceled.
11.1.3    If there are not sufficient authorized but unissued Common Shares to
 permit the exercise in full of the Rights in accordance with Section 11.1.2, or should the Board of Directors so elect, the Company shall with respect to such deficiency, to the extent permitted by applicable law and any material agreements to which the Company is a party, (i) determine the excess (the “Spread”) of (A) the value of the Common Shares issuable upon the exercise of a Right as provided in Section 11.1.2 (the “Current Value”) over (B) the Purchase Price, and (ii) with respect to each Right, make adequate provision to substitute for such Common Shares, upon payment of the applicable Purchase Price, any one or more of the following having an aggregate value determined by the Board of Directors to be equal to the Current Value: (A) cash, (B) a reduction in the Purchase Price, (C) Common Shares or other equity securities of the Company (including, without limitation, shares, or units of shares, of preferred stock which the Board of Directors of the Company has determined to have the same value as Common Shares (“Common Stock Equivalents”)), (D) debt securities of the Company or (E) other assets; provided, however, that if the Company shall not have made adequate provision to deliver value pursuant to clause (ii) above within thirty days following the Stock Acquisition Date, then the Company shall be obligated to deliver, upon the surrender for exercise of a Right and without requiring payment of the Purchase Price, Common Shares (to the extent available) and then, if necessary, cash, which shares and cash shall have an aggregate value equal to the Spread.

If the Board of Directors of the Company shall determine in good faith that it is likely that sufficient additional Common Shares could be authorized for issuance upon exercise in full of the Rights, the thirty-day period set forth above may be extended to the extent necessary, but not more than ninety days after the Stock Acquisition Date, in order that the Company may seek stockholder approval for the authorization of such additional shares (such period, as it may be extended, the “Substitution Period”). If the Company determines that action need be taken pursuant to this Section 11.1.3, the Company (x) shall provide, subject to Section 7.5 and the last paragraph of Section 11.1.2, that such action shall apply uniformly to all outstanding Rights, and (y) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek any authorization of additional shares, decide the appropriate form of distribution to be made and determine the value thereof. If the exercisability of the Rights is suspended pursuant to this Section 11.1.3, the Company shall make a public announcement, and shall deliver to the Rights Agent a statement, stating that the exercisability of the Rights has been temporarily suspended. When the suspension is no longer in effect, the Company shall make another public announcement, and deliver to the Rights Agent a statement, so stating. For purposes of this Section 11.1.3, the value of the Common Shares shall be the Current Per Share 

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Market Price (as determined pursuant to Section 11.4.1) of the Common Shares as of the Stock Acquisition Date, and the value of any Common Stock Equivalent shall be deemed to have the same value as the Common Shares on such date.
11.2    If the Company fixes a record date for the issuance of rights, options or
 warrants to all holders of Preferred Shares entitling them (for a period expiring within forty-five calendar days after such record date) to subscribe for or purchase Preferred Shares (or shares having the same rights, privileges and preferences as the Preferred Shares (“Equivalent Preferred Shares”)) or securities convertible into Preferred Shares or Equivalent Preferred Shares at a price per Preferred Share or Equivalent Preferred Share (or having a conversion price per share, if a security convertible into Preferred Shares or Equivalent Preferred Shares) less than the then Current Per Share Market Price of the Preferred Shares (as defined in Section 11.4.2) on such record date, the Purchase Price to be in effect after such record date shall be adjusted by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, (i) the numerator of which shall be (A) the number of Preferred Shares outstanding on such record date plus (B) the number of Preferred Shares which the aggregate offering price of the total number of Preferred Shares or Equivalent Preferred Shares to be offered (or the aggregate initial conversion price of the convertible securities to be offered) would purchase at such Current Per Share Market Price and (ii) the denominator of which shall be (A) the number of Preferred Shares outstanding on such record date plus (B) the number of additional Preferred Shares or Equivalent Preferred Shares to be offered for subscription or purchase (or into which the convertible securities 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 Preferred Shares issuable upon exercise of one Right. If such subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent. Preferred Shares owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed. If such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price that would then be in effect if such record date had not been fixed.

11.3    If the Company fixes a record date for the making of a distribution to all holders of the Preferred Shares (including any distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend payable in Preferred Shares) or subscription rights or warrants (excluding those referred to in Section 11.2), 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, (i) the numerator of which shall be the then Current Per Share Market Price of the Preferred Shares on such record date, less the fair market value (as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent) of the portion of the assets or evidences of indebtedness to be distributed or of such subscription rights or warrants applicable to one Preferred Share and (ii) the denominator of which shall be 

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the then Current Per Share Market Price of the Preferred Shares; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the Preferred Shares to be issued upon exercise of one Right. Such adjustments shall be made successively whenever such a record date is fixed. If such distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price that would then be in effect if such record date had not been fixed.

11.4    Current Per Share Market Price.

11.4.1    For the purpose of any computation hereunder, the “Current Per Share Market Price” of any security on any date shall be deemed to be the average of the daily closing prices per share of such security for the thirty consecutive Trading Days immediately prior to such date; provided, however, that if the Current Per Share Market Price of the security is determined during a period (i) following the announcement by the issuer of such security of (A) a dividend or distribution on such security payable in shares of such security or other securities convertible into such shares, or (B) any subdivision, combination or reclassification of such security, and (ii) prior to the expiration of thirty Trading Days after the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case, the Current Per Share Market Price shall be appropriately adjusted to reflect the current market price per share equivalent of such security. The closing price for each day shall be the last sale price or, if no such sale takes place on such day, the average of the closing bid and asked prices, in either case as reported by the NYSE, or, if on any such date the security is not listed on the NYSE, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the security selected by the Board of Directors of the Company. 

11.4.2    For the purpose of any computation hereunder, the “Current Per Share Market Price” of the Preferred Shares shall be determined in accordance with the method set forth in Section 11.4.1. If the Preferred Shares are not publicly traded, the “Current Per Share Market Price” of the Preferred Shares shall be conclusively deemed to be the Current Per Share Market Price of the Common Shares as determined pursuant to Section 11.4.1 (appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof) multiplied by one thousand. If neither the Common Shares nor the Preferred Shares are publicly held or so listed or traded, “Current Per Share Market Price” means the fair value per share as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent.

11.5    No adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least 1% in the Purchase Price; provided, however, that any adjustments which by reason of this Section 11.5 are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest one ten-millionth of a Preferred Share or one ten-thousandth of any other share or security as the case may be. Notwithstanding the first sentence of this Section 11.5, any adjustment required by this Section 11 shall be made no later than three years from the date of the transaction which requires such adjustment.

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11.6    If, as a result of an adjustment made pursuant to Section 11.1, the holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than Preferred Shares, the number of such other shares so receivable upon exercise of any Right shall thereafter be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained in Sections 11.1 through 11.3, inclusive, and the provisions of Sections 7, 9, 10 and 13 with respect to the Preferred Shares shall apply on like terms to any such other shares.

11.7    All Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the number of Preferred Shares purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein.

11.8    Unless the Company exercises its election as provided in Section 11.9, upon each adjustment of the Purchase Price as a result of the calculations made in Sections 11.2 and 11.3, each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one one-thousandth of a Preferred Share (calculated to the nearest one ten-millionth of a Preferred Share) obtained by (i) multiplying the number of one one-thousandth of a Preferred Share covered by a Right immediately prior to this adjustment by the Purchase Price in effect immediately prior to such adjustment of the Purchase Price and (ii) dividing the product by the Purchase Price in effect immediately after such adjustment of the Purchase Price.

11.9    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 Preferred Shares purchasable upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number of Rights shall be exercisable for the number of Preferred Shares 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 record date may be the date on which the Purchase Price is adjusted or any day thereafter but, if the Right Certificates have been distributed, shall be at least 10 days after the date of the public announcement. If Right Certificates have been distributed, upon each adjustment of the number of Rights pursuant to this Section 11.9, the Company shall, as promptly as practicable, cause to be distributed to holders of record of Right Certificates on such record date Right Certificates evidencing, subject to Section 14, the additional Rights to which such holders shall be entitled as a result of such adjustment or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Right Certificates held by such holders prior to the date of adjustment, and upon surrender thereof if required by the Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled after such 

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adjustment. Right Certificates to be so distributed shall be issued, executed and countersigned in the manner provided for herein and shall be registered in the names of the holders of record of Right Certificates on the record date specified in the public announcement.

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

11.11    Before taking any action that would cause an adjustment reducing the Purchase Price below the then par value of the Preferred Shares issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully paid and non-assessable Preferred Shares at such adjusted Purchase Price.

11.12    If this Section 11 requires that an adjustment in the Purchase Price be made effective as of a record date for a specified event, the Company may defer, until the occurrence of such event, issuing to the holder of any Right exercised after such record date Preferred Shares and other capital stock or securities of the Company, if any, issuable upon such exercise over and above the Preferred Shares and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing such holder's right to receive such additional shares upon the occurrence of the event requiring adjustment.

11.13    Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that it in its sole discretion shall determine to be advisable in order that any (i) combination or subdivision of the Preferred Shares, (ii) issuance wholly for cash of any Preferred Shares at less than the Current Per Share Market Price, (iii) issuance wholly for cash of Preferred Shares or securities which by their terms are convertible into or exchangeable for Preferred Shares, (iv) dividends on Preferred Shares payable in Preferred Shares, or (v) issuance of any rights, options or warrants referred to in Section 11.2 made by the Company after the date of this Agreement to holders of its Preferred Shares shall not be taxable to such stockholders.

11.14    If, at any time after the date of this Agreement and prior to the Distribution Date, the Company (i) declares or pays any dividend on the Common Shares payable in Common Shares or (ii) effects a subdivision, combination or consolidation of the Common Shares (by reclassification or otherwise other than by payment of dividends in Common Shares) into a greater or lesser number of Common Shares, then in any such case (a) the number of one one-thousandths of a Preferred Share purchasable after such event upon exercise of each Right shall be determined by multiplying the number of one one-thousandths of a Preferred Share so purchasable immediately prior to such event by a fraction, the numerator of which is the number of Common Shares outstanding immediately before such event and the denominator of which is 

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the number of Common Shares outstanding immediately after such event, and (b) each Common Share outstanding immediately after such event shall have issued with respect to it that number of Rights which each Common Share outstanding immediately prior to such event had issued with respect to it. The adjustments provided for in this Section 11.14 shall be made successively whenever such a dividend is declared or paid or such a subdivision, combination or consolidation is affected.

12.    Certificate of Adjustment. Whenever an adjustment is made as provided in Sections 11 and 13, the Company shall promptly (i) prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for such adjustment, (ii) file with the Rights Agent and with each transfer agent for the Common Shares or the Preferred Shares a copy of such certificate, and (iii) if such adjustment occurs following a Distribution Date, mail a brief summary thereof to each holder of a Right Certificate in accordance with Section 25. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment therein contained and shall not be obligated or responsible for calculating any adjustment, nor shall the Rights Agent be deemed to have knowledge of such an adjustment, unless and until it shall have received such certificate.

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

13.1    If, at any time after a Stock Acquisition Date, (i) the Company consolidates with, or merges with and into, any other Person; (ii) any Person consolidates with the Company, or merges with and into the Company, and the Company is the continuing or surviving corporation of such merger and, in connection with such merger, all or part of the Common Shares are or will be changed into or exchanged for stock or other securities of any other Person (or the Company) or cash or any other property; or (iii) the Company sells or otherwise transfers (or one or more of its Subsidiaries sell or otherwise transfer), in one or more transactions, assets or Earning Power aggregating 50% or more of the assets or Earning Power of the Company and its Subsidiaries (taken as a whole) to any other Person other than the Company or one or more of its wholly owned Subsidiaries, then proper provision shall be made so that (A) each holder of a Right (except as otherwise provided herein) shall thereafter have the right to receive, upon the exercise of each Right to purchase one one-thousandths of a Preferred Share represented by a Right at a price equal to the then current Purchase Price, in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares of such other Person (including the Company as successor thereto or as the surviving corporation) equal to the result obtained by dividing the then current Purchase Price by 50% of the then Current Per Share Market Price of the Common Shares of such other Person (determined pursuant to Section 11.4 hereof) on the date of consummation of such consolidation, merger, sale or transfer; (B) the issuer of such Common Shares shall thereafter be liable for, and shall assume, by virtue of such consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to this Agreement; (C) the term “Company” shall thereafter be deemed to refer to such issuer; and (D) such issuer shall take steps (including, but not limited to, the reservation of a sufficient number of shares of its common stock in accordance with Section 9) in connection with such consummation as may be necessary to ensure that the provisions hereof shall thereafter be applicable in relation to the common stock thereafter deliverable upon the exercise of the Rights.

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13.2    The Company shall not consummate any such consolidation, merger, sale or transfer unless prior thereto the Company and such issuer shall have executed and delivered to the Rights Agent a supplemental agreement providing for such issuer's compliance with this Section 13. The Company shall not enter into any transaction of the kind referred to in this Section 13 if, at the time of such transaction, there are any rights, warrants, instruments or securities outstanding or any agreements or arrangements which, as a result of the consummation of such transaction, would eliminate or substantially diminish the benefits intended to be afforded by the Rights. The provisions of this Section 13 shall apply to successive mergers or consolidations or sales or other transfers.

13.3    For purposes hereof, the “Earning Power” of the Company and its Subsidiaries shall be determined in good faith by the Company's Board of Directors on the basis of the operating earnings of each business operated by the Company and its Subsidiaries during the three fiscal years preceding the date of such determination (or, in the case of any business not operated by the Company or any Subsidiary during three full fiscal years preceding such date, during the period such business was operated by the Company or any Subsidiary).

14.    Fractional Rights and Fractional Shares.

14.1    The Company shall not be required to issue fractions of Rights or to distribute Right Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the registered holders of the Right Certificates with regard to which such fractional Rights would otherwise be issuable an amount in cash equal to the same fraction of the current market value of a whole Right. For the purposes of this Section 14.1, the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable. 

14.2    The Company shall not be required to issue fractions of Preferred Shares (other than fractions which are integral multiples of one one-thousandth of a Preferred Share) upon exercise of the Rights or to distribute certificates which evidence fractional Preferred Shares (other than fractions which are integral multiples of one one-thousandth of a Preferred Share). Fractions of Preferred Shares in integral multiples of one one-thousandth of a Preferred Share may, at the election of the Company, be evidenced by depositary receipts, pursuant to an agreement between the Company and a depositary selected by the Company; provided, that such agreement shall provide that the holders of such depositary receipts shall have all the rights, privileges and preferences to which they are entitled as Beneficial Owners of the Preferred Shares represented by such depositary receipts. In lieu of fractional Preferred Shares that are not integral multiples of one one-thousandth of a Preferred Share, the Company shall pay to each registered holder of Right Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one Preferred Share as the fraction of one Preferred Share that such holder would otherwise receive upon the exercise of the aggregate number of rights exercised by such holder. For the purposes of this Section 14.2, the current market value of a Preferred Share shall be the closing price of a Preferred Share (pursuant to Section 11.4.1) for the Trading Day immediately prior to the date of such exercise.

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14.3    The closing price for any day shall be the last quoted price or, if not so quoted, the average of the high bid and low asked prices as reported by the NYSE, or if on any such date the Rights or Preferred Shares, as applicable, are not listed on the NYSE, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights or Preferred Shares, as applicable, selected by the Board of Directors of the Company. If on any such date no such market maker is making a market in the Rights or Preferred Shares, as applicable, the fair value of the Rights or Preferred Shares, as applicable, on such date as determined in good faith by the Board of Directors of the Company shall be used.

14.4    The holder of a Right by the acceptance of the Right expressly waives any right to receive fractional Rights or fractional shares upon exercise of a Right (except as provided in this Section 14).

15.    Rights of Action. All rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent under Section 18, are vested in the respective registered holders of the Right Certificates and, prior to the Distribution Date, the registered holders of the Common Shares. Any registered holder of any Right Certificate or, prior to the Distribution Date, of Common Shares may, without the consent of the Rights Agent or of the holder of any other Right Certificate or, prior to the Distribution Date, of Common Shares, on such holder's own behalf and for such holder's own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, such holder's right to exercise the Rights evidenced by such Right Certificate in the manner provided in such Right Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened violations of the obligations of any Person subject to, this Agreement.

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

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

16.2    after the Distribution Date, the Right Certificates are transferable only on the registry books maintained by the Rights Agent if surrendered at the principal office of the Rights Agent, duly endorsed or accompanied by a proper instrument of transfer with a completed form of certification; and

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

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

17.    Right Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Right Certificate shall be entitled to vote or receive dividends, or be deemed for any purpose the holder of the Preferred Shares or any other securities of the Company that may at any time be issuable on the exercise of the Rights represented thereby, nor shall anything contained herein or in any Right Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, to give or withhold consent to any corporate action, to receive notice of meetings or other actions affecting stockholders (except as provided in Section 25), or to receive dividends or subscription rights, or otherwise, until the Rights evidenced by such Right Certificate shall have been exercised in accordance with the provisions hereof.

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

The Rights Agent shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in connection with its administration of this Agreement in reliance upon any Right Certificate or certificate for Preferred Shares or for other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged by the proper Person or Persons, or otherwise upon the advice of counsel as set forth in Section 20.
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.
19.    Merger or Consolidation or Change of Name of Rights Agent. Any corporation into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any corporation resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any corporation succeeding to the corporate trust powers of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any 

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further act on the part of any of the parties hereto; provided that such corporation would be eligible for appointment as a successor Rights Agent under the provisions of Section 21. If, at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Right Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right Certificates so countersigned. If, at that time, any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent. In all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement.

If, at any time, the name of the Rights Agent changes and any of the Right Certificates have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned. If, at that time, any of the Right Certificates have not been countersigned, the Rights Agent may countersign such Right Certificates either in its prior name or in its changed name. In all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement.
20.    Duties of Rights Agent. The Rights Agent undertakes the duties and obligations set forth in this Agreement. The Rights Agent shall perform those duties and obligations upon the following terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, shall be bound:

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

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

20.3    The Rights Agent shall be liable to the Company and any other Person hereunder only for its own gross negligence, bad faith or willful misconduct.

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

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20.5    The Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be responsible for any adjustment required under the provisions of Sections 11 or 13 or for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of Rights evidenced by Right Certificates after receipt of a certificate furnished pursuant to Section 12 describing such adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Preferred Shares to be issued pursuant to this Agreement or any Right Certificate or as to whether any Preferred Shares will, when so issued, be validly authorized and issued, fully paid, and non-assessable.

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

20.7    The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any one of the Chief Executive Officer, the Chairman of the Board, the Chief Executive Officer, the President, a Vice President, the Treasurer or the Secretary of the Company, and to apply to such officers for advice or instructions in connection with its duties. The Rights Agent shall not be liable for any action taken or suffered to be taken by it in good faith in accordance with instructions of any such officer. 

20.8    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 legal entity.

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

20.10    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 

22

repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it.

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

21.    Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this Agreement upon thirty days notice in writing mailed to the Company and, in the event that the Rights Agent or one of its Affiliates is not also the transfer agent for the Company, to each transfer agent of the Common Shares and the Preferred Shares by registered or certified mail. In the event the transfer agency relationship in effect between the Company and the Rights Agent terminates, the Rights Agent will be deemed to have resigned automatically and be discharged from its duties under this Agreement as of the effective date of such termination, and the Company shall be responsible for sending any required notice. The Company may remove the Rights Agent or any successor Rights Agent upon thirty days notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Common Shares and the Preferred Shares by registered or certified mail, and, after the Distribution Date, to the holders of the Right Certificates by first class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of thirty days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with such notice, submit such Right Certificate for inspection by the Company), then the registered holder of any Right Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be a corporation or trust company organized and doing business under the laws of the United States or of any state of the United States, in good standing, which is authorized under such laws to exercise corporate trust powers, is subject to supervision or examination by federal or state authority, and has, along with its Affiliates, at the time of its appointment as Rights Agent a combined capital and surplus of at least $50 million. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed, and the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and shall execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Common Shares and the Preferred Shares, and, after the Distribution Date, mail a notice in writing to the registered holders of the Right Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be.

23

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

23.    Redemption.

23.1    The Board of Directors of the Company may, at its option, at any time prior to such time as any Person becomes an Acquiring Person, redeem all, but not less than all, of the then outstanding Rights at a redemption price of $0.01 per one one-thousandths of a Preferred Share represented by a Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (the “Redemption Price”). The redemption of the Rights by the Board of Directors may be made effective at such time, on such basis and subject to such conditions as the Board of Directors in its sole discretion may establish.

23.2    Immediately upon the time of the effectiveness of the redemption of the Rights or such earlier time as may be determined by the Board of Directors of the Company in the action ordering such redemption (although not earlier than the time of such action) (the “Redemption Date”), and without any further action and without any notice, the right to exercise the Rights shall terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. The Company shall promptly give public notice of any such redemption; provided, however, that the failure to give, or any defect in, any such notice shall not affect the validity of such redemption. Within ten days after action of the Board of Directors ordering the redemption of the Rights, the Company shall mail a notice of redemption to all the holders of the then outstanding Rights at their last addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Shares. Any notice mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. If the payment of the Redemption Price is not included with such notice, each such notice shall state the method by which the payment of the Redemption Price will be made. Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in any manner other than that specifically set forth in this Section 23 or in Section 24, other than in connection with the purchase of Common Shares prior to the Distribution Date.

24

24.    Exchange.

24.1    The Board of Directors of the Company may, at its option, at any time after a Stock Acquisition Date, exchange all or part of the then outstanding and exercisable Rights (which excludes Rights that have become void pursuant to Section 11.1.2) for Common Shares at an exchange ratio of one Common Share per one one-thousandths of a Preferred Share represented by a Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (the “Exchange Ratio”). Notwithstanding the foregoing, the Board of Directors shall not be empowered to effect such exchange at any time after an Acquiring Person becomes the Beneficial Owner of a majority of the Common Shares then outstanding. From and after the occurrence of an event specified in Section 13.1, any rights that theretofore have not been exchanged pursuant to this Section 24 shall thereafter be exercisable only in accordance with Section 13 and may not be exchanged pursuant to this Section 24. The exchange of the Rights by the Board of Directors of the Company may be made effective at such time, on such basis and with such conditions as the Board of Directors of the Company in its sole discretion may establish.

24.2    Immediately upon effectiveness of the action of the Board of Directors of the Company ordering the exchange of any Rights pursuant to Section 24.1, and without any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that number of Common Shares equal to the number of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange; provided, however, that the failure to give, or any defect in, such notice shall not affect the validity of such exchange. The Company promptly shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the Common Shares for Rights will be effected and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become void pursuant to the provisions of Section 11.1.2) held by each holder of Rights.

24.3    In any exchange pursuant to this Section 24, the Company, at its option, may substitute Preferred Shares or Common Stock Equivalents for Common Shares exchangeable for Rights, at the initial rate of one one-thousandth of a Preferred Share (or an appropriate number of Common Stock Equivalents) for each Common Share, as appropriately adjusted to reflect adjustments in the voting rights of the Preferred Shares pursuant to the terms thereof, so that the fraction of a Preferred Share delivered in lieu of each Common Share shall have the same voting rights as one Common Share.

24.4    If there shall not be sufficient Common Shares, Preferred Shares or Common Stock Equivalents authorized but unissued to permit any exchange of Rights as contemplated in accordance with this Section 24, the Company shall take all such action as may be necessary to 

25

authorize additional Common Shares, Preferred Shares or Common Stock Equivalents for issuance upon exchange of the Rights.

24.5    The Company shall not be required to issue fractions of Common Shares or to distribute certificates which evidence fractional Common Shares. In lieu of issuing fractional Common Shares, the Company may instead pay to the registered holders of the Right Certificates with regard to which such fractional Common Shares would otherwise be issuable an amount in cash equal to the same fraction of the current per share market value of a whole Common Share. For the purposes of this Section 24.5, the current per share market value of a whole Common Share shall be the closing price of a Common Share (as determined pursuant to the second sentence of Section 11.4.1) for the Trading Day immediately prior to the date of exchange pursuant to this Section 24.

24.6    Notwithstanding anything in this Section 24 to the contrary, the exchange of the Rights may be made effective at such time, on such basis and with such conditions as the Board of Directors in its sole discretion may establish. Without limiting the preceding sentence, the Board of Directors may (i) in lieu of issuing Common Shares or any other securities contemplated by this Section 24 to the Persons entitled thereto in connection with the exchange (such Persons, the “Exchange Recipients,” and such shares and other securities, together with any dividends or distributions made on such shares or other securities, the “Exchange Property”) issue, transfer or deposit the Exchange Property to or into a trust or other entity that may hold such Exchange Property for the benefit of the Exchange Recipients (provided that such trust or other entity may not be controlled by the Company or any of its Affiliates or Associates and provided further that the trustee or similar fiduciary of the trust or other entity will attempt to distribute the Exchange Property to the Exchange Recipients as promptly as practicable), (ii) permit such trust or other entity to exercise all of the rights that a stockholder of record would possess with respect to any shares deposited in such trust or entity and (iii) impose such procedures as are necessary to verify that the Exchange Recipients are not Acquiring Persons or Affiliates or Associates of Acquiring Persons as of any time periods established by the Board of Directors or such trust or entity. In the event the Board of Directors determines, before the Distribution Date, to effect an exchange, such Board may delay the occurrence of the Distribution Date to such time as such Board deems advisable; provided, that the Distribution Date must occur no later than twenty days after the Stock Acquisition Date.

25.    Notice of Certain Events.

25.1    If the Company shall after the Distribution Date propose (i) to pay any dividend payable in stock of any class to the holders of its Preferred Shares or to make any other distribution to the holders of its Preferred Shares (other than a regular quarterly cash dividend); (ii) to offer to the holders of its Preferred Shares rights or warrants to subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any other securities, rights or options; (iii) to effect any reclassification of its Preferred Shares (other than a reclassification involving only the subdivision of outstanding Preferred Shares); (iv) to effect any consolidation or merger into or with any other Person, or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one or more transactions, of 50% 

26

or more of the assets or Earning Power of the Company and its Subsidiaries (taken as a whole) to any other Person; (v) to effect the liquidation, dissolution or winding-up of the Company; or (vi) to declare or pay any dividend on the Common Shares payable in Common Shares, or to effect a subdivision, combination or consolidation of the Common Shares (by reclassification or otherwise than by payment of dividends in Common Shares), then, in each such case, the Company shall give to each holder of a Right Certificate, in accordance with Section 26, a notice of such proposed action, which shall specify the record date for the purposes of such stock dividend, or distribution of rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution or winding-up is to take place and the date of participation therein by the holders of the Common Shares or Preferred Shares or both, 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 days prior to the record date for determining holders of the Preferred Shares for purposes of such action, and in the case of any such other action, at least 10 days prior to the date of the taking of such proposed action or the date of participation therein by the holders of the Common Shares or Preferred Shares or both, whichever shall be the earlier.

25.2    The Company shall, as soon as practicable after a Stock Acquisition Date, give to each holder of a Right Certificate, in accordance with Section 26, a notice that describes the transaction in which the a Person became an Acquiring Person and the consequences of the transaction to holders of Rights under Section 11.1.2.

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

Prestige Brands Holdings, Inc.
90 North Broadway
Irvington, New York 10533
Attention:     Eric Klee

with a copy (which shall not constitute notice) to:
Kirkland & Ellis LLP
601 Lexington Avenue
New York, New York 10022
Attention:     David Fox
                 Daniel Wolf
       
Subject to the provisions of Section 21, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Right Certificate to or on the Rights Agent shall be deemed given upon receipt and shall be sufficiently given or made if sent by overnight delivery service or registered or certified mail addressed (until another address is filed in writing with the Company) as follows:

27

Computershare Trust Company, N.A.
250 Royall Street
Canton, MA 02021
Attention:     Client Services

Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Right Certificate shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company.
27.    Supplements and Amendments. The Company may from time to time, and the Rights Agent shall if the Company so directs, supplement or amend this Agreement without the approval of any holders of Right Certificates in order to cure any ambiguity, to correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, or to make any change to or delete any provision hereof or to adopt any other provisions with respect to the Rights which the Company may deem necessary or desirable; provided, however, that, from and after such time as any Person becomes an Acquiring Person, this Agreement shall not be amended or supplemented in any manner which would adversely affect the interests of the holders of Rights (other than an Acquiring Person and its Affiliates and Associates).  Any supplement or amendment authorized by this Section 27 will be evidenced by a writing signed by the Company and the Rights Agent. Notwithstanding anything in this Agreement to the contrary, no supplement or amendment that changes the rights and duties of the Rights Agent under this Agreement will be effective against the Rights Agent without the execution of such supplement or amendment by the Rights Agent.

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

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

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.

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

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32.    Counterparts. This Agreement may be executed in any number of counterparts, and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.  A signature to this Agreement transmitted electronically shall have the same authority, effect and enforceability as an original signature.

33.    Descriptive Headings. Descriptive headings of the 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.

34.    Administration. The Board of Directors of the Company shall have the exclusive power and authority to administer and interpret the provisions of this Agreement and to exercise all rights and powers specifically granted to the Board of Directors or the Company or as may be necessary or advisable in the administration of this Agreement. All such actions, calculations, determinations and interpretations which are done or made by the Board of Directors in good faith shall be final, conclusive and binding on the Company, the Rights Agent, holders of the Rights and all other parties and shall not subject the Board of Directors to any liability to the holders of the Rights.

35.    Force Majeure.  Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be liable for any delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest.

29

The parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

Prestige Brands Holdings, Inc.
By: /s/ Ron Lombardi                    
Name:    Ron Lombardi
Title:    CFO
                        

Computershare Trust Company, N.A.

By: /s/ Dennis Moccia                    
Name:    Dennis Moccia
Title:    Manager, Contract Administration

        

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EXHIBIT A

FORM
of
CERTIFICATE OF DESIGNATIONS
of
SERIES A PREFERRED STOCK
of
PRESTIGE BRANDS HOLDINGS, INC.
                                                    
(Pursuant to Section 151 of the Delaware General Corporation Law)
                                                    

Prestige Brands Holdings, Inc., a corporation organized and existing under the General Corporation Law of the State of Delaware (the “Corporation”), hereby certifies that the following resolution was adopted by the Board of Directors of the Corporation (the “Board of Directors”) as required by Section 151 of the General Corporation Law on February 26, 2012:
RESOLVED, that pursuant to the authority vested in the Board of Directors in accordance with the provisions of the Amended and Restated Certificate of Incorporation of the Corporation (the “Certificate of Incorporation”), a series of Preferred Stock, par value $0.01 

A-1

per share, be and it hereby is created, and that the designation and amount thereof and the powers, preferences and relative, participating, optional and other special rights of the shares of such series, and the qualifications, limitations or restrictions thereof are as follows:
Section 1.    Designation and Amount. The shares of this series shall be designated as Series A Preferred Stock (the “Series A Preferred Stock”), and the number of shares constituting the Series A Preferred Stock shall be 250,000.  Such number of shares may be increased or decreased by resolution of the Board of Directors; provided, that no decrease shall reduce the number of shares of Series A Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by the Corporation convertible into Series A Preferred Stock.
Section 2.    Dividends and Distributions.
(A)    Subject to the rights of the holders of any shares of any series of Preferred Stock (or any other stock) ranking prior and superior to the Series A Preferred Stock with respect to dividends, the holders of shares of Series A Preferred Stock shall be entitled to receive, when, as and if declared by the Board of Directors out of funds legally available for the purpose, quarterly dividends payable in cash on the last day of March, June, September and December in each year (each such date a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Preferred Stock, in an amount (if any) per share (rounded to the nearest cent), subject to the provision for adjustment hereinafter set forth, equal to 1,000 multiplied by the aggregate per share amount of all cash dividends, and 1,000 multiplied the aggregate per share amount (payable in kind) of all non-cash dividends or other distributions, other than a dividend payable in shares of Common Stock, par value $0.01 per share (the “Common Stock”), of the Corporation or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise) declared on the Common Stock since the immediately preceding Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A Preferred Stock.  In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under the preceding sentence shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.
(B)    The Corporation shall declare a dividend or distribution on the Series A Preferred Stock as provided in paragraph (A) of this Section 2 immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock).

A-2

(C)    Dividends due pursuant to paragraph (A) of this Section 2 shall begin to accrue and be cumulative on outstanding shares of Series A Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series A Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Series A Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be not more than 60 days prior to the date fixed for the payment thereof.
Section 3.    Voting Rights. The holders of shares of Series A Preferred Stock shall have the following voting rights:
(A)    Subject to the provision for adjustment hereinafter set forth, each share of Series A Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the number of votes per share to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.
(B)    Except as otherwise provided in the Certificate of Incorporation, including any other Certificate of Designations creating a series of Preferred Stock or any similar stock, or by law, the holders of shares of Series A Preferred Stock and the holders of shares of Common Stock and any other capital stock of the Corporation having general voting rights shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation.
(C)    Except as set forth herein, or as otherwise required by law, holders of Series A 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-3

Section 4.    Certain Restrictions.
(A)    Whenever quarterly dividends or other dividends or distributions payable on the Series A Preferred Stock as provided in Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Preferred Stock outstanding shall have been paid in full, the Corporation shall not:
(i)    declare or pay dividends, 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 Preferred Stock;
(ii)    declare or pay dividends, or make any other distributions, on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding‐up) with the Series A Preferred Stock, except dividends paid ratably on the Series A Preferred Stock and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are then entitled; or
(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 Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such junior stock in exchange for shares of any stock of the Corporation ranking junior (as to dividends and upon dissolution, liquidation or winding‐up) to the Series A Preferred Stock.
(B)    The Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any shares of stock of the Corporation unless the Corporation could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner.
Section 5.    Reacquired Shares. Any shares of Series A Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired and canceled promptly after the acquisition thereof. The Corporation shall take all such actions as are necessary to cause all such shares to become authorized but unissued shares of Preferred Stock that may be reissued as part of a new series of Preferred Stock subject to the conditions and restrictions on issuance set forth herein or in the Certificate of Incorporation, including any Certificate of Designations creating a series of Preferred Stock or any similar stock, or as otherwise required by law.
Section 6.    Liquidation, Dissolution or Winding-Up. 
(A)    Upon any liquidation, dissolution or winding-up of the Corporation, voluntary or otherwise, no distribution shall be made to the holders of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding-up) to the Series A Preferred Stock unless, prior thereto, the holders of Series A Preferred Stock shall have received an amount per share (the “Series A Liquidation Preference”) equal to an amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1,000 multiplied by the aggregate amount 

A-4

to be distributed per share to holders of shares of Common Stock plus an amount equal to any accrued and unpaid dividends. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the aggregate amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under the preceding sentence shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.
(B)    If there are not sufficient assets available to permit payment in full of the Series A Liquidation Preference and the liquidation preferences of all other classes and series of stock of the Corporation, if any, that rank on a parity with the Series A Preferred Stock in respect thereof, then the assets available for such distribution shall be distributed ratably to the holders of the Series A Preferred Stock and the holders of such parity shares in proportion to their respective liquidation preferences.
(C)    Neither the merger or consolidation of the Corporation into or with another entity nor the merger or consolidation of any other entity into or with the Corporation shall be deemed to be a liquidation, dissolution or winding‐up of the Corporation within the meaning of this Section 6.
Section 7.    Consolidation, Merger, Etc. If the Corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any such case each share of Series A Preferred Stock shall at the same time be similarly exchanged or changed into an amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1,000 multiplied by the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series A Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.
Section 8.    Amendment. The Certificate of Incorporation shall not be amended in any manner, including in a merger or consolidation, which would alter, change or repeal the powers, preferences or special rights of the Series A Preferred Stock so as to affect them 

A-5

adversely without the affirmative vote of the holders of at least two-thirds of the outstanding shares of Series A Preferred Stock, voting together as a single class.
Section 9.    Rank. The Series A Preferred Stock shall rank, with respect to the payment of dividends and upon liquidation, dissolution and winding-up, junior to all other series of Preferred Stock, unless the terms of any such series shall provide otherwise, and shall rank senior to the Common Stock as to such matters.

A-6

IN WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the Corporation by its duly authorized officer this 27th day of February 2012.

Prestige Brands Holdings, Inc.

By:    _______________________________
Name:
         Title:  

A-7

EXHIBIT B

Form of Right Certificate

Certificate No. R-_______    _____ Rights

NOT EXERCISABLE AFTER FEBRUARY 27, 2022 OR EARLIER IF REDEMPTION, EXCHANGE OR TERMINATION OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.01 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS THAT ARE OR WERE ACQUIRED OR BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR ANY ASSOCIATES OR AFFILIATES THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID.

Right Certificate
PRESTIGE BRANDS HOLDINGS, INC.

This certifies that ___________________________, or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement (the “Rights Agreement”), dated as of February 27, 2012, between Prestige Brands Holdings, Inc., a Delaware corporation (the “Company”), and Computershare Trust Company, N.A., a federally chartered trust company (the “Rights Agent”), as may be amended from time to time, 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 time, on February 27, 2022 (or earlier under certain circumstances set forth in the Agreement), at the principal office of the Rights Agent, or at the office of its successor as Rights Agent, one one-thousandth of a fully paid non-

B-1

assessable share of Series A Preferred Stock, par value $0.01 per share (the “Preferred Shares”), of the Company, at a purchase price of $65.00 per one one-thousandth of a Preferred Share (the “Purchase Price”), upon presentation and surrender of this Right Certificate with the Form of Election to Purchase duly executed. The number of Rights evidenced by this Right Certificate (and the number of one one-thousandths of a Preferred Share which may be purchased upon exercise hereof) set forth above, and the Purchase Price set forth above, are the number and Purchase Price as of February 27, 2012, based on the Preferred Shares as constituted at such date.  As provided in the Rights Agreement, the Purchase Price and the number of one one-thousandths of a Preferred Share which may be purchased upon the exercise of the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the happening of certain events.
From and after the occurrence of a Stock Acquisition Date (as defined in the Rights Agreement) of the Rights Agreement, if the Rights evidenced by this Right Certificate are or were at any time on or after the earlier of (x) the date of such event or (y) the Distribution Date acquired or beneficially owned by an Acquiring Person or an Associate or Affiliate of an Acquiring Person, such Rights shall become void, and any holder of such Rights shall thereafter have no right to exercise such Rights.
This Right Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are incorporated herein by this reference and made a part hereof, and to which Rights Agreement reference is made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Right Certificates. Copies of the Rights Agreement are on file at the principal executive offices of the Company and the offices of the Rights Agent.
This Right Certificate, with or without other Right Certificates, upon surrender at the principal office of the Rights Agent, may be exchanged for another Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number of Preferred Shares as the Rights evidenced by the Right Certificate or Right Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Right Certificate or Right Certificates for the number of whole Rights not exercised.
Subject to the provisions of the Rights Agreement, at the Company's option, the Rights evidenced by this Certificate (i) may be redeemed by the Company at a redemption price of $0.01 per Right or (ii) may be exchanged in whole or in part for shares of the Company's Common Stock, par value $0.01 per share, or Preferred Shares.
No fractional Preferred Shares will be issued upon the exercise of any Right or Rights evidenced hereby (other than fractions which are integral multiples of one one-thousandth of a Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts), but in lieu thereof a cash payment will be made, as provided in the Rights Agreement.

B-2

No holder of this Right Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred Shares or of any other securities of the Company which may at any time be issuable on the exercise or exchange hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised or exchanged as provided in the Rights Agreement.
This Right Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent.

B-3

WITNESS the facsimile signature of the proper officers of the Company and its corporate seal.  Dated as of ____________.
		
	Attest:
	Prestige Brands Holdings, Inc.

_____________________________            By:    _____________________________

Countersigned:

_____________________________
Rights Agent

By:    __________________________
Authorized Signature

B-4

Form of Reverse Side of Right Certificate
FORM OF ASSIGNMENT
(To be executed by the registered holder if such holder desires to transfer the Right Certificate.)
FOR VALUE RECEIVED, ___________________________________ hereby sells, assigns and transfers unto                                                                         
(Please print name and address of transferee)
this Right Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint _______________________________, Attorney, to transfer the within Right Certificate on the books of the within-named Company, with full power of substitution.

Date:    ______________             __________________________________
Signature

Signature Guaranteed:
Signatures must be guaranteed by an eligible guarantor institution (bank, stock broker or savings and loan association with membership in an approved signature medallion program).
----------------------------------------------------------------
The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially owned by and were not acquired by the undersigned from an Acquiring Person or an Affiliate or Associate thereof and are not issued with respect to notional Common Shares related to a Derivative Interest described in Section 1.3.4 of the definition of Beneficial Owner (as such terms are defined in the Rights Agreement).

__________________________________
Signature

----------------------------------------------------------------

B-5

Form of Reverse Side of Right Certificate -- continued
FORM OF ELECTION TO PURCHASE
(To be executed if holder desires to exercise the Right Certificate.)
TO PRESTIGE BRANDS HOLDINGS, INC.:
The undersigned hereby irrevocably elects to exercise _______________ Rights represented by this Right Certificate to purchase the Preferred Shares issuable upon the exercise of such Rights and requests that certificates for such Preferred Shares be issued in the name of:

Please insert Social Security or other identifying number: _________________________      
________________________________________________________________________    
(Please print name and address)

______________________________________________________________________________________                                                                                                    
If such number of Rights shall not be all the Rights evidenced by this Right Certificate, a new Right Certificate for the balance remaining of such Rights shall be registered in the name of and delivered to:
Please insert Social Security or other identifying number: _________________________                         
_______________________________________________________________________                                                                                
(Please print name and address)
                                                
Dated: _____________ __, ______        __________________________________
Signature

(Signature must conform to the holder specified on the Right Certificate)

Signature Guaranteed:

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

B-6

Form of Reverse Side of Right Certificate -- continued
----------------------------------------------------------------
The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially owned by, were not acquired by the undersigned from and are not being assigned to an Acquiring Person or an Affiliate or Associate thereof and are not issued with respect to notional Common Shares related to a Derivative Interest described in Section 1.3.4 of the definition of Beneficial Owner (as such terms are defined in the Rights Agreement).

__________________________________
Signature

----------------------------------------------------------------

NOTICE

The signature in the foregoing Forms of Assignment and Election to Purchase must conform to the name as written upon the face of this Right Certificate in every particular, without alteration or enlargement or any change whatsoever.
In the event the certification set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, such assignment or election to purchase will not be honored.

B-7

EXHIBIT C

SUMMARY OF RIGHTS TO PURCHASE
PREFERRED SHARES
On February 26, 2012, the Board of Directors of Prestige Brands Holdings, Inc. (the “Company”) declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of Common Stock, par value $0.01 per share (the “Common Shares”), outstanding on March 8, 2012 (the “Record Date”) to the stockholders of record on that date.  Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Preferred Stock, par value $0.01 per share (the “Preferred Shares”), of the Company, at a price of $65.00 per one one-thousandth of a Preferred Share represented by a Right (the “Purchase Price”), subject to adjustment.  The description and terms of the Rights are set forth in a Rights Agreement (the “Rights Agreement”), dated as of February 27, 2012, between the Company and Computershare Trust Company, N.A., a federally chartered trust company, as Rights Agent. 
Until the earlier to occur of (i) 10 days following a public announcement that a Person or group of affiliated or associated Persons has acquired beneficial ownership of 10% or more of the outstanding Common Shares (an “Acquiring Person”) (or, in the event an exchange is effected in accordance with Section 24 of the Rights Agreement and the Board determines that a later date is advisable, then such later date that is not more than 20 days after such public announcement) or (ii) 10 business days (or such later date as may be determined by action of the Board of Directors prior to such time as any Person or group of affiliated or associated Persons becomes an Acquiring Person) following the commencement of, or announcement of an intention to make, a tender offer or exchange offer the consummation of which would result in the beneficial ownership by a Person or group of 10% or more of the outstanding Common Shares (the earlier of such dates, the “Distribution Date”), the Rights will be evidenced, with respect to any of the Common Share certificates outstanding as of the Record Date, by such Common Share certificate with a copy of this Summary of Rights attached thereto. 
A Person shall not be deemed to be an “Acquiring Person” if such Person, on the date of the Rights Agreement, is a Beneficial Owner of 10% or more of the Common Shares of the Company then outstanding (a “Grandfathered Stockholder”); provided, however, that if (i) a Grandfathered Stockholder who or which constituted a Grandfathered Stockholder on the thirtieth day prior to the date of the Rights Agreement becomes, after the date of the Rights Agreement, the Beneficial Owner of additional Common Shares representing 1% or more of the Common Shares of the Company then outstanding (other than Common Shares acquired solely as a result of corporate action of the Company not caused, directly or indirectly, by such Person) at any time such that the Grandfathered Stockholder is or thereby becomes the Beneficial Owner of 10% or more of the Common Shares then outstanding, or (ii) any Grandfathered Stockholder not described in clause (i) becomes, after the date of the Rights Agreement, the Beneficial Owner 

C-1

of additional Common Shares (other than Common Shares acquired solely as a result of corporate action of the Company not caused, directly or indirectly, by such Person) at any time such that the Grandfathered Stockholder is or thereby becomes the Beneficial Owner of 10% or more of the Common Shares then outstanding, then, in either such case, such Grandfathered Stockholder shall be deemed an Acquiring Person; provided, further, that upon the first decrease of a Grandfathered Stockholder's Beneficial Ownership below 10%, such Grandfathered Stockholder shall no longer be considered a Grandfathered Stockholder. “Beneficial Ownership” shall include any securities such Person or any of such Person's Affiliates or Associates (i) beneficially owns, directly or indirectly, within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (ii) has the right to acquire, (iii) except under limited circumstances, has the right to vote pursuant to any agreement, arrangement or understanding, and (iv) which are the subject of, or the reference securities for, or that underlie, any derivative securities (as defined under Rule 16a-1 under the Exchange Act) of such Person or any of such Person's Affiliates or Associates that increase in value as the value of the underlying equity increases, with the number of Common Shares deemed Beneficially Owned being the notional or other number of Common Shares specified in the documentation evidencing the derivative interest as being subject to be acquired upon the exercise or settlement of the derivative interest or as the basis upon which the value or settlement amount of such derivative interest is to be calculated in whole or in part or, if no such number of Common Shares is specified in such documentation, as determined by the Board of Directors in it sole discretion to be the number of Common Shares to which the derivative interest relates.
The Rights Agreement provides that, until the Distribution Date, the Rights will be transferred with and only with the Common Shares.  Until the Distribution Date (or earlier redemption or expiration of the Rights), new Common Share certificates issued after the Record Date or upon transfer or new issuance of Common Shares will contain a notation incorporating the Rights Agreement by reference. Until the Distribution Date (or earlier redemption or expiration of the Rights), the surrender for transfer of any certificates for Common Shares outstanding as of the Record Date, even without such notation or a copy of this Summary of Rights being attached thereto, will also constitute the transfer of the Rights associated with the Common Shares represented by such certificate.  As soon as practicable following the Distribution Date, separate certificates evidencing the Rights (“Right Certificates”) will be mailed to holders of record of the Common Shares as of the close of business on the Distribution Date, and such separate Right Certificates alone will evidence the Rights.
The Rights are not exercisable until the Distribution Date. The Rights will expire on the earlier of (i) the Close of Business on the day following the certification of the voting results of the Company's 2013 annual meeting of stockholders, if at such meeting a proposal to approve this Agreement has not been passed by the requisite vote of the Company's stockholders, or (ii) February 27, 2022 (the earlier of such dates, the “Final Expiration Date”), unless the Final Expiration Date is extended or unless the Rights are earlier redeemed by the Company.
The Purchase Price payable, and the number of Preferred Shares or other securities or property issuable, upon exercise of the Rights is subject to adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or 

C-2

reclassification of, the Preferred Shares; (ii) upon the grant to holders of the Preferred Shares of certain rights or warrants to subscribe for or purchase Preferred Shares at a price, or securities convertible into Preferred Shares with a conversion price, less than the then current market price of the Preferred Shares; or (iii) upon the distribution to holders of the Preferred Shares of evidences of indebtedness or assets (excluding regular periodic cash dividends paid out of earnings or retained earnings or dividends payable in Preferred Shares) or of subscription rights or warrants (other than those referred to above).
The number of outstanding Rights and the number of Preferred Shares issuable upon exercise of each Right are also subject to adjustment in the event of a stock split of the Common Shares or a stock dividend on the Common Shares payable in Common Shares or subdivisions, consolidations or combinations of the Common Shares occurring, in any such case, prior to the Distribution Date.
Preferred Shares purchasable upon exercise of the Rights will not be redeemable. Each Preferred Share will be entitled to a quarterly dividend payment of 1,000 multiplied by the dividend declared per Common Share. In the event of liquidation, the holders of the Preferred Shares will be entitled to a payment per share equal to 1,000 multiplied by the aggregate payment made per Common Share. Each Preferred Share will have 1,000 votes, voting together with the Common Shares. In the event of any merger, consolidation or other transaction in which Common Shares are exchanged, each Preferred Share will be entitled to receive 1,000 multiplied by the amount received per Common Share. 
Because of the nature of the dividend, liquidation and voting rights of the Preferred Shares, the value of the one one-thousandth of a Preferred Share purchasable upon exercise of each Right should approximate the value of one Common Share.
From and after the time any Person becomes an Acquiring Person, if the Rights evidenced by this Right Certificate are or were at any time on or after the earlier of (i) the date of such event or (ii) the Distribution Date acquired or beneficially owned by an Acquiring Person or an Associate or Affiliate of an Acquiring Person (as such terms are defined in the Rights Agreement), such Rights shall become void, and any holder of such Rights shall thereafter have no right to exercise such Rights.
If any Person becomes an Acquiring Person, proper provision shall be made so that each holder of a Right, other than Rights beneficially owned by the Acquiring Person and its Affiliates and Associates (which will thereafter be void), will thereafter have the right to receive upon exercise that number of Common Shares having a market value of two times the exercise price of the Right.  If the Board of Directors so elects, the Company shall deliver upon payment of the exercise price of a Right an amount of cash or securities equivalent in value to the Common Shares issuable upon exercise of a Right; provided that, if the Company fails to meet such obligation within 30 days following the date a Person becomes an Acquiring Person, the Company must deliver, upon exercise of a Right but without requiring payment of the exercise price then in effect, Common Shares (to the extent available) and cash equal in value to the difference between the value of the Common Shares otherwise issuable upon the exercise of a Right and the exercise price then in effect. The Board of Directors may extend the 30-day period 

C-3

described above for up to an additional 60 days to permit the taking of action that may be necessary to authorize sufficient additional Common Shares to permit the issuance of Common Shares upon the exercise in full of the Rights.
If, at any time after a Person becomes an Acquiring Person, the Company is acquired in a merger or other business combination transaction or 50% or more of its consolidated assets or Earning Power (as defined in the Rights Agreement) are sold, proper provision will be made so that each holder of a Right will thereafter have the right to receive, upon the exercise thereof at the then current exercise price of the Right, that number of shares of common stock of the acquiring company which at the time of such transaction will have a market value of two times the exercise price of the Right.  
At any time after any Person becomes an Acquiring Person and prior to the acquisition by any Person or group of a majority of the outstanding Common Shares, the Board of Directors of the Company may exchange the Rights (other than Rights owned by such Person or group which have become void), in whole or in part, at an exchange ratio of one Common Share per Right (subject to adjustment).
With certain exceptions, no adjustment in the Purchase Price will be required until cumulative adjustments require an adjustment of at least 1% in such Purchase Price. No fractional Preferred Shares will be issued (other than fractions which are integral multiples of one one-thousandth of a Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts), and in lieu thereof, an adjustment in cash will be made based on the market price of the Preferred Shares on the last trading day prior to the date of exercise.
At any time prior to the time any Person becomes an Acquiring Person, the Board of Directors of the Company may redeem the Rights in whole, but not in part, at a price of $0.01 per Right (the “Redemption Price”). The redemption of the Rights may be made effective at such time, on such basis and with such conditions as the Board of Directors in its sole discretion may establish. Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price.
The terms of the Rights may be amended by the Board of Directors of the Company without the consent of the holders of the Rights.  However, the Board may not amend the Rights Agreement to lower the threshold at which a Person or group becomes an Acquiring Person to below 10% of the outstanding Common Shares.  In addition, the Board may not cause a Person or group to become an Acquiring Person by lowering this threshold below the percentage interest that such Person or group already owns from and after such time as any Person becomes an Acquiring Person no such amendment may adversely affect the interests of the holders of the Rights (other than the Acquiring Person and its Affiliates and Associates).
Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends.
A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement on Form 8-A.  A copy of the Rights 

C-4

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, which is hereby incorporated herein by reference.

C-5EX-4.1

VOCUS, INC.

CERTIFICATE OF DESIGNATION

OF

SERIES A CONVERTIBLE PREFERRED STOCK

Pursuant to Section 151 of the

General Corporation Law of the State of Delaware

Vocus, Inc., a Delaware corporation (the “Company”), hereby certifies that:

A. The Fifth Amended and Restated Certificate of Incorporation of the Company (the
“Certificate of Incorporation”) fixes the total number of shares of capital stock that the Company
shall have the authority to issue at 90,000,000 shares of common stock, par value $0.01 per share,
and 10,000,000 shares of preferred stock, par value $0.01 per share (“Preferred Stock”).

B. The Certificate of Incorporation expressly vests the Board of Directors of the Company (the
“Board of Directors”) with authority from time to time to provide by resolution or resolutions for
the issuance of shares of the undesignated Preferred Stock in one or more series, to establish the
number of shares to be included in each such series, and to fix the voting powers thereof, and such
of the designations, powers, preferences and relative, participating, optional or other rights of
the shares of each such series, and any qualifications, limitations or restrictions thereof.

C. Pursuant to the authority vested in the Board of Directors by the Certificate of
Incorporation, the Board of Directors, by action duly taken on February 23, 2012, adopted
resolutions establishing a series of undesignated Preferred Stock and fixing the designation,
powers, preferences and rights of the shares of this series of Preferred Stock and the
qualifications, limitations or restrictions thereof as follows:

Section 1. Designation; Number of Shares.

The designation of the series of Preferred Stock shall be “Series A Convertible Preferred
Stock” (the “Series A Convertible Preferred Stock”). The number of authorized shares of Series A
Convertible Preferred Stock shall be one million (1,000,000). Unless otherwise indicated,
references to “Sections” or “Subsections” in this Certificate of Designation refer to sections and
subsections of this Certificate of Designation.

Section 2. Definitions.

Unless the context otherwise requires, each of the terms defined in this Section 2 shall have,
for all purposes of this Certificate of Designation, the meaning herein specified (with terms
defined in the singular having comparable meanings when used in the plural):

“Available Cash” means the cash, cash equivalents and short-term investments of the Company
and its subsidiaries in excess of $5,000,000.

“Board of Directors” means the Board of Directors of the Company.

“Business Day” means a day other than a Saturday, Sunday or other day on which commercial
banks in New York, New York are required by law to close.

“By-Laws” means the Company’s Amended and Restated By-Laws, as in effect on the date of this
Certificate of Designation and as subsequently duly amended or restated.

“Capital Stock” means any and all shares, interests, participations or other equivalents
(however designated) of capital stock in the Company and any rights, warrants or options to acquire
an equity interest in the Company.

“Certificate of Incorporation” means the Company’s Fifth Amended and Restated Certificate of
Incorporation, as in effect on the date of this Certificate of Designation and as subsequently duly
amended or restated.

“Common Share Equivalents” means securities, options, warrants, derivatives, debt instruments
or other rights convertible into, or exercisable or exchangeable for, or entitling the holder
thereof to receive directly or indirectly, shares of Common Stock.

“Common Stock” means the common stock, $0.01 par value per share, of the Company or any other
Capital Stock into which such shares of common stock shall be reclassified or changed.

“Common Stock Transfer Agent” has the meaning set forth in Section 6(c) hereof.

“Company” means Vocus, Inc., a Delaware corporation, and its successors and assigns. 

“Company’s Organizational Documents” means the Certificate of Incorporation, this Certificate
of Designation, any other certificate of designations that becomes part of the Certificate of
Incorporation after the date of this Certificate of Designation, and the By-Laws.

“Conversion Number” has the meaning set forth in Section 6(a) hereof.

“Conversion Shares” means the shares of Common Stock issuable upon conversion of Series A
Convertible Preferred Stock.

“Conversion Value” means, in the case of any Liquidation Event, for each share of Series A
Convertible Preferred Stock outstanding, the amount that would be payable to the holder thereof
upon the consummation of such Liquidation Event if such shares of Series A Convertible Preferred
Stock were converted into the number of Conversion Shares into which such share of Series A
Convertible Preferred Stock may be converted immediately prior to the consummation of such
Liquidation Event.

“Converted Shares” has the meaning set forth in Section 6(b).

“Converting Shares” has the meaning set forth in Section 6(b).

“Covered Persons” has the meaning set forth in Section 13.

“Director Cessation Date” means the first date following the Issue Date on which the aggregate
number of shares of Common Stock into which the then outstanding shares of Series A Convertible
Preferred Stock are then convertible represent less than five percent (5%) of the sum of (i) the
aggregate number of shares of Common Stock then outstanding plus (ii) the aggregate number of
shares of Common Stock into which the then outstanding shares of Series A Convertible Preferred
Stock are then convertible.

“Escrow Agent” has the meaning set forth in Section 3(c) hereof.

“Excluded Opportunity” has the meaning set forth in Section 13.

“Holders” means the record holders of the shares of Series A Convertible Preferred Stock, as
shown on the books and records of the Company.

“Issue Date” means the date on which the Company issues the first share of Series A
Convertible Preferred Stock.

“Liquidation Event” means each of the following events, unless the holders of a majority of
the then outstanding shares of Series A Convertible Preferred Stock elect otherwise by written
notice sent to the Company at least ten (10) days prior to the effective date of any such event:

(i) any merger or consolidation in which (A) the Company is a constituent party or (B) a
subsidiary of the Company is a constituent party and the Company issues shares of its capital stock
pursuant to such merger or consolidation, in each case except any such merger or consolidation
involving the Company or a subsidiary in which the shares of capital stock of the Company
outstanding immediately prior to such merger or consolidation continue to represent, or are
converted into or exchanged for shares of capital stock that represent, immediately following such
merger or consolidation, a majority, by voting power or value, of the capital stock of (1) the
surviving or resulting entity or (2) if the surviving or resulting entity is a wholly-owned
subsidiary of another entity immediately following such merger or consolidation, the ultimate
parent entity of such surviving or resulting entity;

(ii) the sale, lease, transfer, exclusive license or other disposition, in a single
transaction or series of related transactions, by the Company or any subsidiary of the Company of
all or substantially all the assets of the Company and its subsidiaries taken as a whole, or the
sale or disposition (whether by merger or otherwise) of one or more subsidiaries of the Company if
substantially all of the assets of the Company and its subsidiaries taken as a whole are held by
such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or
other disposition is to a subsidiary of the Company in which the Company owns, directly or
indirectly, at least 80% of the outstanding capital stock, membership interests or other equity
interests;

(iii) any acquisition of shares representing a majority of the voting power or value of the
Company’s Capital Stock by a single Person or group (within the meaning of Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended); or

(iv) the liquidation, dissolution or winding up of the Company.

“Liquidation Preference” has the meaning set forth in Section 5(a) hereof.

“Market Price” means (i) if traded on a securities exchange, the average of the closing prices
of the Common Stock on such securities exchange over the 30-day period ending three days prior to
the date of determination; (ii) if actively traded over-the-counter, the average of the closing bid
prices of the Common Stock over the 30-day period ending three days prior to the date of
determination; or (iii) if there is no active public market, the fair market value of a share of
Common Stock, as determined in good faith by the Board of Directors.

“Maximum Number” has the meaning set forth in Section 3(a) hereof.

“Person” includes all natural persons, corporations, business trusts, limited liability
companies, associations, companies, partnerships, joint ventures and other entities, as well as
governments and their respective agencies and political subdivisions.

“Redemption Date” has the meaning set forth in Section 3(a) hereof.

“Redemption Notice” has the meaning set forth in Section 3(a) hereof.

“Series A Convertible Preferred Stock” has the meaning set forth in Section 1 hereof.

“Series A Director” means each individual elected by the Holders to serve as a member of the
Board of Directors pursuant to the terms and subject to the conditions of Section 8 hereof.

“Stated Value” means for each share of Series A Convertible Preferred Stock, $77.30 (subject
to appropriate adjustment in the event of any stock dividend, stock split, combination or other
similar recapitalizations affecting the Series A Convertible Preferred Stock), reduced by the
aggregate amount of cash dividends or other cash distributions previously paid with respect to such
share of Series A Convertible Preferred Stock pursuant to Section 4 of this Certificate of
Designation.

“Transfer Agent” means the entity designated from time to time by the Company to act as the
registrar and transfer agent for the Series A Convertible Preferred Stock or, if no entity has been
so designated to act in such capacity, the Company.

Section 3. Redemption

(a) On the fifth anniversary of the Issue Date (such date, the “Redemption Date”), the Company
shall redeem, out of the assets of the Company legally available for distribution (including all
Available Cash), each issued and outstanding share of Series A Convertible Preferred Stock for the
Stated Value per share as of the actual date of redemption pursuant to the procedures set forth in
Section 3(b) hereof. If on the Redemption Date the Company’s Available Cash is insufficient to
redeem, or applicable Delaware corporate law prevents the Company from redeeming, all shares of
Series A Convertible Preferred Stock for the aggregate amount of the redemption price set forth in
the preceding sentence, the Company shall redeem from the holders of Series A Convertible Preferred
Stock the maximum number of shares that it may redeem from its Available Cash or consistent with
such law, as applicable (the “Maximum Number”), ratably in proportion to the respective number of
shares that otherwise would have been redeemed from such holders if all outstanding shares of
Series A Convertible Preferred Stock had been redeemed in full. At any time thereafter when
additional Available Cash becomes available to redeem any remaining shares of Series A Convertible
Preferred Stock, the Company shall immediately use such funds to redeem additional shares of Series
A Convertible Preferred Stock that the Company was obligated to redeem on the Redemption Date (but
that it has not yet redeemed) at the then Stated Value per share.

(b) Redemption Notice. The Company shall send written notice of the redemption (the
“Redemption Notice”) to each Holder of record of Series A Convertible Preferred Stock not less than
40 days prior to the Redemption Date. Each Redemption Notice shall state:

(i) the number of shares of Series A Convertible Preferred Stock held by the Holder that the
Company shall redeem on the Redemption Date specified in the Redemption Notice;

(ii) the Redemption Date and the Stated Value;

(iii) the date upon which the Holder’s right to convert such shares terminates;

(iv) whether the Company will use the procedures set forth in Section 3(c) to redeem such
shares; and

(v) that the Holder is to surrender to the Company or the Escrow Agent in accordance with
Section 3(c), as applicable, in the manner and at the place designated, such Holder’s certificate
or certificates representing the shares of Series A Convertible Preferred Stock to be redeemed.

(c) If on or before the Redemption Date the Company (i) deposits with American Stock Transfer
& Trust Company or another independent payment agent (the “Escrow Agent”) by wire transfer of
immediately available funds an amount equal to the product of (1) the lesser of (A) the number of
shares of Series A Convertible Preferred Stock then outstanding or (B) the Maximum Number, times
(2) the then Stated Value per share, and (ii) delivers to the Escrow Agent the irrevocable
instructions described in this Section 3(c), then the Company is authorized (upon compliance with
any applicable provisions of the laws of Delaware) to permanently retire or cancel the lesser of
(A) all of the shares of Series A Convertible Preferred Stock that are outstanding as of the
Redemption Date or (B) the Maximum Number, such that all rights of the Holders with respect to such
shares to be so redeemed shall immediately terminate, except the right to receive the Stated Value
per share. The irrevocable instructions to be provided to Escrow Agent shall irrevocably instruct
the Escrow Agent to pay the Stated Value per share to each Holder that transfers and surrenders to
the Escrow Agent the certificate(s) representing shares of Series A Convertible Preferred Stock to
be redeemed on the Redemption Date in accordance with the Redemption Notice (or, if such registered
holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate
affidavit and agreement reasonably acceptable to the Company to indemnify the Company against any
claim that may be made against the Company on account of the alleged loss, theft or destruction of
such certificate) and to deliver to such Holder a stock certificate representing any shares of
Series A Convertible Preferred Stock represented by such certificate(s) not so redeemed, which
shall remain outstanding until redeemed in accordance with Section 3(a) (or earlier converted into
shares of Common Stock), with such transfer procedures as the Escrow Agent shall reasonably
establish. Nothing in this Section 3 shall limit the right of a Holder to convert, prior to the
Redemption Date, all or any of its shares of Series A Convertible Preferred Stock into shares of
Common Stock pursuant to the provisions of Section 6 or to receive the Liquidation Preference if
any Liquidation Event occurs prior to the Redemption Date.

Section 4. Dividends.

The Company shall not declare, pay or set aside any dividends on shares of Common Stock (other
than dividends on shares of Common Stock payable solely in additional shares of Common Stock)
unless (in addition to the obtaining of any consents required elsewhere in this Certificate of
Designation) the Holders simultaneously receive a dividend on each outstanding share of Series A
Convertible Preferred Stock in the same form as that payable to the holders of shares of Common
Stock and in an amount equal to that dividend per share of Series A Convertible Preferred Stock as
would equal the product of the dividend payable on each share of Common Stock multiplied by the
number of shares of Common Stock issuable upon conversion of one share of Series A Convertible
Preferred Stock, in each case calculated on the record date for determination of holders entitled
to receive such dividend.

Section 5. Liquidation Events.

(a) Preferential Payments to Holders of Series A Convertible Preferred Stock. Upon any
Liquidation Event, each Holder shall be entitled to be paid out of the assets of the Company
legally available for distribution to its stockholders, on account of each share of Series A
Convertible Preferred Stock held by such Holder, prior to the holders of any class or series of
Common Stock or any other Capital Stock by reason of their ownership thereof, an amount per share
equal to the greater of (i) the Stated Value at that time or (ii) the Conversion Value (the amount
payable pursuant to this sentence is hereinafter referred to as the “Liquidation Preference”). If
upon any such Liquidation Event, the assets of the Company available for distribution to its
stockholders shall be insufficient to pay the holders of shares of Series A Convertible Preferred
Stock the full amount to which they shall be entitled under this Section 5(a), the holders of
shares of Series A Convertible Preferred Stock shall share ratably in any distribution of the
assets available for distribution in proportion to the respective amounts which would otherwise be
payable in respect of the shares held by them upon such distribution if all amounts payable on or
with respect to such shares were paid in full.

(b) Liquidation Event.

(i) The Company shall not have the power to effect a Liquidation Event referred to in clause
(i)(A) of the definition of Liquidation Event unless the agreement or plan of merger or
consolidation for such transaction provides that the consideration payable to the stockholders of
the Company shall be allocated among the holders of capital stock of the Company in accordance with
the Certificate of Incorporation (including Section 5(a) of this Certificate of Designation).

(ii) In the event of a Liquidation Event referred to in clauses (i)(B), (ii), (iii) or (iv) of
the definition of Liquidation Event, if the Company does not effect a dissolution of the Company
under the Delaware General Corporation Law within 90 days after such Liquidation Event, then (A)
the Company shall send a written notice to each holder of Series A Convertible Preferred Stock no
later than the 90th day after the Liquidation Event advising such holders of their rights (and the
requirements to be met to secure such rights) pursuant to the terms of the following clause (B) to
require the redemption of such shares of Series A Convertible Preferred Stock, and (b) if the
holders of a majority of the then outstanding shares of Series A Convertible Preferred Stock so
request in a written instrument delivered to the Company not later than 120 days after such
Liquidation Event or, if later, 30 days after receipt of the notice required by clause (A) of this
sentence, the Company shall use the consideration received by the Company for such Liquidation
Event (net of any retained liabilities associated with the assets sold or technology licensed, as
determined in good faith by the Board of Directors), together with any other assets of the Company
(the “Available Proceeds”), on the 150th day after such Liquidation Event, to redeem all
outstanding shares of Series A Convertible Preferred Stock at a price per share equal to the
Liquidation Preference. Notwithstanding the foregoing, in the event of a redemption pursuant to
the preceding sentence, if the Available Proceeds are not sufficient to redeem all outstanding
shares of Series A Convertible Preferred Stock, the Company shall ratably redeem each holder’s
shares of Series A Convertible Preferred Stock to the fullest extent of such Available Proceeds,
and shall redeem the remaining shares as soon as it may lawfully do so under Delaware law governing
distributions to stockholders. The provisions of Section 3 shall apply, with such necessary
changes in the details thereof as are necessitated by the context, to the redemption of the Series
A Convertible Preferred Stock pursuant to this Section 5(b)(ii). After the Liquidation Event but
prior to the distribution or redemption provided for in this Section 5(b)(ii), the Company shall
not expend or dissipate the consideration received for such Liquidation Event or any of its other
assets, except to discharge expenses incurred in connection with such Liquidation Event.

(c) Amount Deemed Paid or Distributed. The amount deemed paid or distributed to the holders
of capital stock of the Company upon any such merger, consolidation, sale, transfer, exclusive
license, other disposition or redemption shall be the cash or the value of the property, rights or
securities paid or distributed to such holders by the Company or the acquiring person, firm or
other entity.

(d) Allocation of Escrow. In the event of a Liquidation Event, if any portion of the
consideration payable to the stockholders of the Company is placed into escrow and/or is payable to
the stockholders of the Company subject to contingencies, the definitive transaction agreement
shall provide that (i) the portion of such consideration that is not placed in escrow and not
subject to any contingencies (the “Initial Consideration”) shall be allocated among the holders of
capital stock of the Company in accordance with the Certificate of Incorporation (including Section
5(a) of this Certificate of Designation) as if the Initial Consideration were the only
consideration payable in connection with such Liquidation Event and (ii) any additional
consideration which becomes payable to the stockholders of the Company upon release from escrow or
satisfaction of contingencies shall be allocated among the holders of capital stock of the Company
in accordance with the Certificate of Incorporation (including Section 5(a) of this Certificate of
Designation) after taking into account the previous payment of the Initial Consideration as part of
the same transaction.

Section 6. Conversion.

(a) Right to Convert. Each Holder shall have the right, at any time and from time to time,
and without the payment of additional consideration therefor, upon the delivery of a written notice
to the Company, to convert any share of Series A Convertible Preferred Stock held by it into that
number of fully paid and nonassessable shares of Common Stock equal to the Conversion Number at the
time in effect. Any Holder may convert all or less than all of the shares of Series A Convertible
Preferred Stock held by it at any time. Any Holder’s conversion of shares of Series A Convertible
Preferred Stock under this Section 6(a) shall not be effective unless such Holder has also complied
with the provisions set forth in Section 6(b) hereof at the time of delivery of its aforesaid
written notice to the Company. The “Conversion Number” per share of Series A Convertible Preferred
Stock shall initially be 3.0256 with respect to conversions occurring on or prior to the Redemption
Date, and 3.3282 with respect to conversions occurring after the Redemption Date; provided,
however, that the Conversion Number in effect from time to time shall be subject to all adjustments
and limitations as provided herein.

(b) Conversion Procedures. Each conversion of shares of Series A Convertible Preferred Stock
into shares of Common Stock shall be effected by the surrender of the certificate(s) evidencing the
shares of Series A Convertible Preferred Stock to be converted (the “Converting Shares”) at the
principal office of the Company (or such other office or agency of the Company as the Company may
designate by notice in writing to the Holders of the Series A Convertible Preferred Stock) at any
time during its usual business hours, together with written notice by the holder of such Converting
Shares, (i) stating that the Holder desires to convert the Converting Shares, or a specified number
of such Converting Shares, evidenced by such certificate(s) into shares of Common Stock (the
“Converted Shares”), and (ii) giving the name(s) (with addresses) and denominations in which the
Converted Shares should either be registered with the Company’s transfer agent and registrar for
the Common Stock (the “Common Stock Transfer Agent”) on its records in book-entry form under The
Direct Registration System or certificated, and, in either case, instructions for the delivery of a
statement evidencing book-entry ownership of the Converted Shares or the certificates evidencing
the Converted Shares. Upon receipt of the notice described in the first sentence of this Section
6(b), together with the certificate(s) evidencing the Converting Shares, the Company shall be
obligated to, and shall, cause to be issued and delivered in accordance with such instructions, as
applicable, either (x) a statement from the Common Stock Transfer Agent evidencing ownership of the
Converted Shares, registered in the name of the Holder or its designee on the Common Stock Transfer
Agent’s records in book-entry form under The Direct Registration System or (y) certificate(s)
evidencing the Converted Shares and, if applicable, a certificate representing any shares which
were represented by the certificate(s) surrendered to the Company in connection with such
conversion but which were not Converting Shares and, therefore, were not converted. All or some
Converted Shares so issued whether in book entry form under the Direct Registration System or in
certificated form may be subject to restrictions on transfer as required by applicable federal and
state securities laws. Such conversion, to the extent permitted by law, shall be deemed to have
been effected as of the close of business on the date on which such certificate(s) shall have been
surrendered and such written notice shall have been received by the Company unless a later date has
been specified by such Holder in such notice, and at such time the rights of the Holder of such
Converting Shares as such a Holder shall cease, and the Person(s) in whose name or names the
Converted Shares are to be issued either in book-entry form or certificated form, as applicable,
upon such conversion shall be deemed to have become the holder(s) of record of the Converted
Shares.

(c) Effect of Conversion. Upon the issuance of the Converted Shares in accordance with
Section 6, such shares shall be duly authorized, validly issued, fully paid and non-assessable.

(d) Adjustments for Common Stock Dividends and Distributions. If the Company at any time or
from time to time makes, or fixes a record date for the determination of holders of Common Stock
entitled to receive, a dividend or other distribution payable in additional shares of Common Stock,
in each such event the Conversion Number then in effect shall be increased as of the time of such
issuance or, in the event such record date is fixed, as of the close of business on such record
date, by multiplying the Conversion Number then in effect by a fraction (i) the numerator of which
is the total number of shares of Common Stock issued and outstanding immediately prior to the time
of such issuance or the close of business on such record date (as applicable) plus the number of
shares of Common Stock issuable in payment of such dividend or distribution and (ii) the
denominator of which is the total number of shares of Common Stock issued and outstanding
immediately prior to the time of such issuance or the close of business on such record date (as
applicable). To the extent an adjustment is made in respect of the foregoing pursuant to Section
6(e) or the Holder actually receives the dividend or other distribution to which any such
adjustment relates, an adjustment shall not be made pursuant to this Section 6(d).

(e) Conversion Number Adjustments for Subdivisions, Combinations or Consolidations of Common
Stock.

(i) In the event the Company should at any time or from time to time fix a record date for the
effectuation of a split or subdivision of the outstanding shares of Common Stock or the
determination of holders of shares of Common Stock entitled to receive a dividend or other
distribution payable in additional Common Share Equivalents, without payment of any consideration
by such holder for additional Common Share Equivalents (including the additional Common Stock
issuable upon conversion, exchange or exercise thereof), then, as of such record date (or the date
of such dividend, distribution, split or subdivision if no record date is fixed), the Conversion
Number then in effect shall be appropriately increased so that the number of shares of Common Stock
issuable on conversion of each such share of such Series A Convertible Preferred Stock shall be
increased in proportion to such increase of outstanding shares of Common Stock and shares issuable
with respect to Common Share Equivalents.

(ii) If the number of shares of Common Stock outstanding at any time is decreased by a
combination, consolidation, reclassification or reverse stock split of the outstanding shares of
Common Stock or other similar event, then, following the record date of such combination, the
Conversion Number then in effect shall be appropriately decreased so that the number of shares of
Common Stock issuable on conversion of each such share of such Series A Convertible Preferred Stock
shall be decreased in proportion to such decrease in outstanding shares of Common Stock.

(f) Recapitalizations. If at any time or from time to time there shall be a recapitalization
of the Common Stock (other than a subdivision, combination, merger or sale of assets transaction
provided for elsewhere in this Section 6), provision shall be made so that the Holders shall
thereafter be entitled to receive upon conversion of the Series A Convertible Preferred Stock the
number of shares of Capital Stock or other securities or property of the Company to which a holder
of Common Stock would have been entitled on recapitalization. In any such case, appropriate
adjustment shall be made in the application of the provisions of this Section 6 with respect to the
rights of the Holders after the recapitalization to the end that the provisions of this Section 6
(including adjustment of the Conversion Number then in effect and the number of shares issuable
upon conversion of the Series A Convertible Preferred Stock) shall be applicable after that event
as nearly equivalent as may be practicable.

(g) Mergers and Other Reorganizations. Subject to the provisions of Section 5, if at any time
or from time to time there shall be a reorganization, recapitalization, reclassification of the
Common Stock (other than a subdivision, combination, reclassification or exchange of shares
provided for elsewhere in this Section 6) or merger or consolidation of the Company with or into
another entity or the sale of all or substantially all of the Company’s properties and assets to
any other Person, then, as a part of and as a condition to the effectiveness of such
reorganization, recapitalization, reclassification, merger, consolidation or sale, lawful and
adequate provision shall be made so that the Holders shall thereafter be entitled to receive upon
conversion of the Series A Convertible Preferred Stock the number of shares of Capital Stock or
other securities or property, if any, of the Company or of the successor entity resulting from such
reorganization, recapitalization, reclassification, merger, consolidation or sale, to which a
holder of Common Stock would have been entitled in connection with such reorganization,
recapitalization, reclassification, merger, consolidation or sale. In any such case, appropriate
provision shall be made with respect to the rights of the Holders after the reorganization,
recapitalization, reclassification, merger, consolidation or sale to the end that the provisions of
this Section 6 (including, without limitation, provisions for adjustment of the Conversion Number
and the number of shares issuable upon conversion of the Series A Convertible Preferred Stock)
shall thereafter be applicable, as nearly as may be, with respect to any shares of Capital Stock,
securities or property to be deliverable thereafter upon the conversion of the Series A Convertible
Preferred Stock.

(h) Notices of Record Date. In the event (i) the Company fixes a record date to determine the
holders of Common Stock (or other capital stock or securities at the time issuable upon conversion
of the Series A Convertible Preferred Stock) for the purpose of entitling or enabling them to
receive any dividend or other distribution, or to receive any right to subscribe for or purchase
any shares of capital stock of any class or any other securities, or to receive any other security,
(ii) there occurs any capital reorganization of the Company, any reclassification or
recapitalization of the Common Stock of the Company, any Liquidation Event or other merger or
consolidation of the Company, or any voluntary or involuntary dissolution, liquidation or winding
up of the Company, the Company shall mail to each Holder at least twenty (20) days prior to the
record date or effective date for the event specified therein, a notice specifying (a) the date of
such record date for the purpose of such dividend, distribution or right and a description of such
dividend, distribution or right, (b) the date on which any such reorganization, reclassification,
recapitalization, consolidation, merger, dissolution, liquidation or winding up is expected to
become effective, and (c) the time, if any, that is to be fixed, as to when the holders of record
of Common Stock (or such other capital stock or securities at the time issuable upon the conversion
of the Series A Convertible Preferred Stock) shall be entitled to exchange their shares of Common
Stock (or such other capital stock or securities) for securities or other property deliverable upon
such reorganization, reclassification, recapitalization, consolidation, merger, dissolution,
liquidation or winding up, and the amount per share and character of such exchange applicable to
the Series A Convertible Preferred Stock and the Common Stock.

(i) No Impairment. The Company will not, by amendment of its Certificate of Incorporation
(including without limitation this Certificate of Designation) or through any reorganization,
recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms to be observed or performed hereunder by the Company, but will at all times in
good faith assist in the carrying out of all the provisions of this Section 6 and in the taking of
all such actions as may be necessary or appropriate in order to protect the conversion rights of
the Holders against impairment.

(j) Fractional Shares and Certificate as to Adjustments. In lieu of any fractional shares to
which a Holder would otherwise be entitled upon conversion, the Company shall pay cash equal to
such fraction multiplied by the Market Price of one share of Common Stock. Whether or not
fractional shares are issuable upon such conversion shall be determined on the basis of the total
number of shares of Series A Convertible Preferred Stock of each Holder at the time converting into
Common Stock and the number of shares of Common Stock issuable upon such aggregate conversion.

Upon the occurrence of each adjustment or readjustment of the Conversion Number of any share
of Series A Convertible Preferred Stock pursuant to this Section 6, the Company, at its expense,
shall promptly compute such adjustment or readjustment in accordance with the terms hereof and
prepare and furnish to each Holder a certificate setting forth such adjustment or readjustment and
showing in detail the facts upon which such adjustment or readjustment is based. The Company
shall, upon the written request at any time of any Holder, furnish or cause to be furnished to such
Holder a like certificate setting forth (A) such adjustment and readjustment, (B) the Conversion
Number at the time in effect, and (C) the number of shares of Common Stock and the amount, if any,
of other securities or property which at the time would be received upon the conversion of such
Holder’s shares of Series A Convertible Preferred Stock. The provisions of Section 6(d), (e), (f)
and (g) shall apply to any transaction and successively to any series of transactions that would
require any adjustment pursuant thereto.

(k) Reservation of Stock Issuable Upon Conversion. The Company shall at all times reserve and
keep available out of its authorized but unissued Common Stock, solely for the purpose of effecting
the conversion of the shares of the Series A Convertible Preferred Stock (taking into account the
adjustments required by this Section 6), such number of its shares of Common Stock as shall from
time to time be sufficient to effect the conversion of all outstanding shares of the Series A
Convertible Preferred Stock; and if at any time the number of authorized but unissued shares of
Common Stock shall not be sufficient to effect the conversion of all then outstanding shares of the
Series A Convertible Preferred Stock, in addition to such other remedies as shall be available to
the Holders, the Company will, as soon as is reasonably practicable, take all such action as may,
in the opinion of its counsel, be necessary to increase its authorized but unissued shares of
Common Stock to such number of shares as shall be sufficient for such purposes.

Section 7. Voting Rights.

(a) General. On any matter presented to the stockholders of the Company for their action or
consideration at any meeting of stockholders of the Company (or by written consent of stockholders
in lieu of a meeting) each Holder shall be entitled to notice of any stockholders’ meeting (or
action by written consent), and shall be entitled or permitted to vote on all matters required or
permitted to be voted on by the holders of Common Stock of the Company, with each such Holder
having that number of votes equal to the number of shares of Common Stock into which the shares of
Series A Convertible Preferred Stock then held by such Holder could be converted, pursuant to the
provisions of Section 6 hereof, at the record date for the determination of stockholders entitled
to vote on such matter or, if no such record date is established, at the date such vote is taken or
any written consent of stockholders is solicited. Except as otherwise expressly provided herein or
as otherwise required by law, holders of Series A Convertible Preferred Stock and holders of Common
Stock and other Capital Stock shall vote together (or render written consents in lieu of a vote) as
a single class on all matters upon which holders of the Common Stock and other Capital Stock are
entitled to vote.

(b) Voting With Respect to Certain Matters. In addition to any other rights provided by law
or set forth herein, so long as any shares of Series A Convertible Preferred Stock are outstanding,
the Company shall not, either directly or indirectly by amendment, merger, consolidation or
otherwise, do any of the following without (in addition to any other vote required by law or the
Company’s Organizational Documents) the written consent or affirmative vote of the holders of a
majority of the then outstanding shares of Series A Convertible Preferred Stock, given in writing
or by vote at a meeting, consenting or voting (as the case may be) separately as a class, and any
such act or transaction entered into without such consent or vote shall be null and void ab initio,
and of no force or effect:

(i) amend, alter or repeal any provision of the Certificate of Incorporation, this Certificate
of Designation or otherwise effect any change to the terms and conditions of the Series A
Convertible Preferred Stock (including the number of authorized shares of Series A Convertible
Preferred Stock);

(ii) create, or authorize the creation of, or issue or obligate itself to issue any shares of
Series A Convertible Preferred Stock in addition to the number of shares of Series A Convertible
Preferred Stock authorized hereunder as of the date of filing of this Certificate of Designation;

(iii) reclassify or otherwise cause the conversion or exchange of any shares of Series A
Convertible Preferred Stock into shares of Common Stock; or

(iv) pay or declare any dividend or make any distribution on any shares of Common Stock (other
than dividends or other distributions payable on the Common Stock solely in the form of additional
shares of Common Stock) if, after the payment of any such dividend or distribution, the Company’s
Available Cash would be less than the amount needed to redeem all then outstanding shares of Series
A Convertible Preferred Stock for the aggregate Stated Value therefor (even if such shares are not
then required to be redeemed).

(c) Additional Voting Provisions after the Redemption Date. At any time on or after the
Redemption Date, in the event the Company has not redeemed all then outstanding shares of Series A
Convertible Preferred Stock for the aggregate Stated Value therefor, the Company shall not, either
directly or indirectly by amendment, merger, consolidation or otherwise, do any of the following
without (in addition to any other vote required by law or the Company’s Organizational Documents,
including Section 7(b) hereof) the written consent or affirmative vote of the holders of a majority
of the then outstanding shares of Series A Convertible Preferred Stock, given in writing or by vote
at a meeting, consenting or voting (as the case may be) separately as a class, and any such act or
transaction entered into without such consent or vote shall be null and void ab initio, and of no
force or effect:

(i) create, or authorize the creation of, or issue or obligate itself to issue shares of, any
additional class or series of capital stock unless the same ranks junior to the Series A
Convertible Preferred Stock with respect to the distribution of assets on the liquidation,
dissolution or winding up of the Company, the payment of dividends and rights of redemption, or
increase the authorized number of shares of Series A Convertible Preferred Stock or increase the
authorized number of shares of any additional class or series of capital stock unless the same
ranks junior to the Series A Convertible Preferred Stock with respect to the distribution of assets
on the liquidation, dissolution or winding up of the Company, the payment of dividends and rights
of redemption;

(ii) (A) reclassify, alter or amend any existing security of the Company that is pari passu
with the Series A Convertible Preferred Stock in respect of the distribution of assets on the
liquidation, dissolution or winding up of the Company, the payment of dividends or rights of
redemption, if such reclassification, alteration or amendment would render such other security
senior to the Series A Convertible Preferred Stock in respect of any such right, preference or
privilege, or (B) reclassify, alter or amend any existing security of the Company that is junior to
the Series A Convertible Preferred Stock in respect of the distribution of assets on the
liquidation, dissolution or winding up of the Company, the payment of dividends or rights of
redemption, if such reclassification, alteration or amendment would render such other security
senior to or pari passu with the Series A Convertible Preferred Stock in respect of any such right,
preference or privilege;

(iii) create, or authorize the creation of, or issue, or authorize the issuance of any debt
security, or permit any subsidiary to take any such action with respect to any debt security,
unless all proceeds from any such debt security are applied exclusively toward the payment of any
unpaid portions of the aggregate then Stated Value in respect of any outstanding shares of Series A
Convertible Preferred Stock in accordance with Section 3 hereof;

(iv) liquidate, dissolve or wind-up the business and affairs of the Company, effect any merger
or consolidation or any other Liquidation Event or sale of all or any significant portion of the
assets of the Company, or consent to any of the foregoing, unless all proceeds from any such
transaction are applied exclusively toward the payment of any unpaid portions of the aggregate then
Stated Value in respect of any outstanding shares of Series A Convertible Preferred Stock in
accordance with Section 3 hereof;

(v) purchase or redeem (or permit any subsidiary to purchase or redeem) or pay or declare any
dividend or make any distribution on, any shares of Common Stock or Capital Stock other than the
Series A Convertible Preferred Stock; or

(vi) purchase or otherwise acquire any assets or business of any Person other than the
Company.

Section 8. Board Representation.

From the Issue Date until the Director Cessation Date, the Holders, voting exclusively and as
a separate class, shall have the right to elect one Series A Director to the Board of Directors at
each meeting of stockholders or pursuant to each consent of the Company’s stockholders for the
election of directors. Any director elected as provided in the preceding sentence may be removed
with or without cause by, and only by, the affirmative vote of the holders of the then outstanding
shares of Series A Convertible Preferred Stock, given either at a special meeting of such
stockholders duly called for that purpose or pursuant to a written consent of stockholders. If the
holders of shares of Series A Convertible Preferred Stock fail to elect a director to fill the
directorship for which they are entitled to elect a director, voting exclusively and as a separate
class, pursuant to the first sentence of this Section 8, then such directorship shall remain vacant
until such time as the holders of the Series A Convertible Preferred Stock elect a person to fill
such directorship by vote or written consent in lieu of a meeting; and such directorship may not be
filled by stockholders of the Company other than by the holders of the Series A Convertible
Preferred Stock, voting exclusively and as a separate class, or by the Board of Directors. For
purposes of this Section 8, each share of Series A Convertible Preferred Stock shall be entitled to
one vote and any election or removal of the Series A Director shall be subject to the affirmative
vote of the Holders of a majority of the outstanding shares of Series A Convertible Preferred
Stock.

Section 9. Reissuance of Shares of Series A Convertible Preferred Stock.

Shares of Series A Convertible Preferred Stock that have been issued and reacquired in any
manner, including shares purchased, redeemed, converted or exchanged, shall (upon compliance with
any applicable provisions of the laws of Delaware) be permanently retired or cancelled and shall
not under any circumstances be reissued. The Company shall from time to time take such appropriate
action as may be required by applicable law to reduce the authorized number of shares of Series A
Convertible Preferred Stock by the number of shares that have been so reacquired.

Section 10. Notices.

Any and all notices, consents, approval or other communications or deliveries required or
permitted to be provided under this Certificate of Designation shall be in writing and shall be
deemed given and effective on the earliest of (a) the date of receipt, if such notice, consent,
approval or other communication is delivered via facsimile to the Company or the Holders, as
applicable, at the facsimile number specified in the register of Holders of Series A Convertible
Preferred Stock maintained by the Transfer Agent prior to 5:00 p.m. (New York City time) on a
Business Day, (b) the next Business Day after the date of receipt, if such notice, consent,
approval or other communication is delivered via facsimile to the Company or the Holder, as
applicable, at the facsimile number specified in the register of Holders of Series A Convertible
Preferred Stock maintained by the Transfer Agent on a day that is not a Business Day or later than
5:00 p.m. (New York City time) on any Business Day, or (c) the third Business Day following the
date of deposit with a nationally recognized overnight courier service for next Business Day
delivery and addressed to the Company or the Holder, as applicable, at the address specified in the
register of Holders of Series A Convertible Preferred Stock maintained by the Transfer Agent.

Section 11. Waiver; Amendment.

(a) Unless otherwise expressly provided herein, any of the rights, powers, preferences and
other terms of this Certificate of Designation, including but not limited to rights to receive
notice, may be waived on behalf of all holders of the Series A Convertible Preferred Stock by the
affirmative written consent or vote of the holders of a majority of the then outstanding shares of
Series A Convertible Preferred Stock.

(b) This Certificate of Designation may be modified or amended only by a written Certificate
of Amendment executed by an officer of the Company and approved by the written consent or vote of
the holders of a majority of the then outstanding shares of Series A Convertible Preferred Stock.

Section 12. Headings.

The headings of the various sections and subsections hereof are for convenience of reference
only and shall not affect the interpretation of any of the provisions hereof.

Section 13. Excluded Opportunity.

The Company renounces, to the fullest extent permitted by law, any interest or expectancy of
the Company in, or in being offered an opportunity to participate in, any Excluded Opportunity. An
“Excluded Opportunity” is any matter, transaction or interest that is presented to, or acquired,
created or developed by, or which otherwise comes into the possession of, (i) any Series A
Director, or (ii) any holder of Series A Convertible Preferred Stock or any partner, member,
director, stockholder or employee of any such holder, other than someone who is an employee of the
Company or any of its subsidiaries (collectively, “Covered Persons”), unless such matter,
transaction or interest is presented to, or acquired, created or developed by, or otherwise comes
into the possession of, a Covered Person expressly and solely in such Covered Person’s capacity as
a director of the Company.

Section 14. Action without a Meeting.

Notwithstanding anything to the contrary in the Certificate of Incorporation, any action
required or permitted by law, the Certificate of Incorporation or this Certificate of Designation
to be taken the holders of the then outstanding shares of Series A Convertible Preferred Stock,
given in writing or by vote at a meeting, consenting or voting (as the case may be) separately as a
class (including any actions contemplated by Sections 7(b), 7(c) and 8), may be taken without a
meeting, without prior notice and without a vote, if a consent or consents in writing, setting
forth the action so taken, shall be signed by the Holders of the then outstanding shares of Series
A Convertible Preferred Stock having not less than the minimum number of votes that would be
necessary to authorize or take such action at a meeting at which all such shares were present and
voted and shall be delivered to the Company by delivery to its registered office, by hand or by
certified mail, return receipt requested, or to the Company’s principal place of business or to the
officer of the Company having custody of the minute book.

Section 15. Severability of Provisions.

If any powers, preferences and relative, participating, optional and other special rights of
the Series A Convertible Preferred Stock and the qualifications, limitations and restrictions
thereof set forth in this Certificate of Designation (as it may be amended from time to time) is
invalid, unlawful or incapable of being enforced by reason of any rule or law or public policy, all
other powers, preferences and relative, participating, optional and other special rights of the
Series A Convertible Preferred Stock and the qualifications, limitations and restrictions thereof
set forth in this Certificate of Designation (as so amended) which can be given effect without the
invalid, unlawful or unenforceable powers, preferences and relative, participating, optional and
other special rights of the Series A Convertible Preferred Stock and the qualifications,
limitations and restrictions thereof shall, nevertheless, remain in full force and effect, and no
powers, preferences and relative, participating, optional or other special rights of the Series A
Convertible Preferred Stock and the qualifications, limitations and restrictions thereof herein set
forth shall be deemed dependent upon any other such powers, preferences and relative,
participating, optional or other special rights of the Series A Convertible Preferred Stock and
qualifications, limitations and restrictions thereof unless so expressed herein.

[Intentionally Left Blank; Signature Page Follows]

1

IN WITNESS WHEREOF, this Certificate of Designation has been executed on behalf of the Company
by its Executive Vice President and Chief Financial Officer this 24th day of February, 2012.

VOCUS, INC.

By: /s/ Stephen Vintz

Name: Stephen Vintz

Title: Executive Vice President and Chief Financial Officer

2

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