Document:

exh10-1.htm

    Exhibit
10.1

    

    
      
                   
This AMENDED AND RESTATED AGREEMENT (the “Agreement”) is made as of the 27th day of
August, 2008 by and between <OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION> and ADVANCE BIOFACTURES
CORPORATION AND ITS AFFILIATES, 35 Wilbur Street, Lynbrook, NY 11563,
hereinafter referred to, collectively, as the “Company.” <OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION>

        

                   
WHEREAS, the Company
desires to engage <OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION> as
an independent contractor and not as an employee to render the services and
grant the rights described below and <OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION> desires to render such services
and grant such rights,

        

        NOW,
THEREFORE, it is agreed:

         

        1.  Services:  <OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION> will provide consulting services
to the Company at its request in connection with the clinical testing and
development of a pharmaceutical product based on Collagenase ABC for the
treatment of Peyronie’s Disease (the “Product”), such consulting services shall
be for no more than five (5) days per year unless otherwise mutually
agreed.

         

         

        2.  Term:  The consulting
services shall be for a period of twelve (12) months commencing on the date
hereof and continuing thereafter until terminated by either party on not less
than three months’ prior written notice to the other party at the addresses
stated above or at an address chosen subsequent to the execution of this
Agreement and duly communicated to the party giving notice.

         

         

        3.  Consultations:  <OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION> shall be available to render the
services described above to the Board of Directors, the officers and scientific
staff and consultants of the Company provided that the Company shall pay
reasonable travel expenses and <OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION> per day (including time for
travel).  All payments to made under this Agreement shall be made by
wire transfer of immediately available funds to an account designated in writing from time to time
by <OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION>.

         

         

        4.  Compensation: <OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION> shall receive from the Company in
consideration of the services to be rendered and rights granted hereunder the
following compensation whether or not the Company has terminated his engagement
prior thereto: <OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION>

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        5.  Access to
Records.

         

        
          	
                  a.  

                	
                  Upon
      the written request of <OMITTED AND FILED SEPARATELY
      WITH THE SECURITIES AND EXCHANGE COMMISSION>, and not more than
      one (1) time per calendar year, the
      Company shall permit <OMITTED AND FILED SEPARATELY
      WITH THE SECURITIES AND EXCHANGE COMMISSION> or an independent certified public
      accounting firm selected by <OMITTED AND FILED SEPARATELY
      WITH THE SECURITIES AND EXCHANGE COMMISSION> to have access
      upon reasonable advance notice and
      during normal business hours to such records of the Company or BTC as may be reasonably
      necessary to verify the accuracy of the quarterly royalty statements
      provided by the
      Company.  The accounting firm shall enter into a
      customary confidentiality agreement with the
      Company and BTC to maintain in
      confidence all information of the Company
      and BTC disclosed in connection with any such audit.  Any
      such audit shall be at the expense of <OMITTED AND FILED SEPARATELY
      WITH THE SECURITIES AND EXCHANGE COMMISSION> unless it reveals
      an underpayment of 5% or more of the amount that should have been paid to
      <OMITTED AND FILED
      SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION> for the
      period audited, in which case the
      Company shall bear the cost of the audit. Pursuant to Section 10.3 of the Development
      Agreement, any sales data conveyed to <OMITTED AND FILED SEPARATELY
      WITH THE SECURITIES AND EXCHANGE COMMISSION> or the accounting firm under this Agreement shall
      be maintained by him or the accounting firm in the strictest confidence,
      provided that <OMITTED AND FILED SEPARATELY
      WITH THE SECURITIES AND EXCHANGE COMMISSION> may disclose such info to his personal accountant,
      if necessary for the preparation of his personal tax
      returns.

                

        

         

         

        
          	
                  b.  

                	
                  The
      Company and BTC shall retain such
      books and records for a period of no less than five (5) years from the
      date of this Agreement.

                

        

         

         

        6.  Options:  This Agreement
shall have no affect on the Prior Stock Option Grant, which will continue in
full force and effect in accordance with its terms.

         

         

        7.  Use of
Name: <OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION> grants the Company and BTC the right to use his name in connection
with documentation prepared during his engagement relating to clinical
investigation and approval of the Product subject to his approval of the
scientific content of the documentation, which approval shall not unreasonably
be withheld.

         

         

        8.  Confidentiality
and Rights: <OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION> agrees to keep in confidence and
except as may be required by law not to disclose to anyone any information
relating to the Product, or the plans or operations of the Company or BTC of which he may become aware during the
engagement, and in particular shall not submit for publication or present to any
forum information relating thereto without the prior written consent of the
Company and agrees to assign to the Company any inventions, discoveries or
improvements he may make relating to the Product without additional
consideration.

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        9.  Indemnity
and Insurance:  The Company will
arrange for <OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION> to be
named as an additional insured on the Company’s or
BTC’s liability policy and will indemnify and defend him against any
claim for damages allegedly caused by the Product whether or not the Company
or BTC is named in the suit but only if the
clinical trial that gives rise to any claim was sponsored by the Company or BTC, unless such claim is based upon his own
personal negligent act or omission.

         

         

        10.  Miscellaneous:  The
validity, performance, construction and effect of this Agreement shall be
governed by the substantive laws of the State of New York without reference to
conflicts of laws provisions.  Any disputes arising under, or in
connection with this Agreement, shall be submitted, by a written notice of a
request to arbitrate by either party, to final and binding arbitration under the
Commercial Arbitration Rules of the American Arbitration Association (“AAA”)
then in force.  The arbitration, which shall be before a single-member
arbitral tribunal appointed by the AAA, shall be held in Los Angeles,
California.  This Agreement may not be assigned by either party
without the express written consent of the other, except that the Company may
assign this Agreement to the Company or to any third party which acquires
(whether by merger, sale of assets or otherwise) all or substantially all of
that portion of the Company’s or the Company’s business to which this Agreement
pertains.  This Agreement constitutes the entire agreement between the
parties with respect to the subject matter hereof and supersedes all previous
agreements, whether written or oral, including, but not limited to, the Prior
Agreement but excluding the Prior Stock Option Grant, which shall continue in
full force and effect in accordance with its terms.  This Agreement
may not be modified orally, but only by an instrument in writing signed by both
parties.  If any provision of this Agreement is declared invalid or
unenforceable that provision shall be deemed fully severable. The remaining
provisions of this Agreement shall remain in full force and effect and will be
construed as if the invalid and unenforceable provision had been
deleted.  It is expressly agreed that the parties are independent
contractors and the relationship will not constitute a partnership or agency of
any kind.  Neither party may bind the other or make statements on
behalf of the other without prior written consent.  The captions used
in this Agreement are inserted for convenience of reference only and shall not
be construed to create obligations, benefits or limitations.  This
Agreement may be executed in counterparts, each of which shall constitute an
original and all of which taken together shall constitute one and the same
instrument.  This Agreement shall be binding upon any successors and
assigns and, in the event that the Company or all of its assets are purchased,
this Agreement shall be binding upon the purchaser.

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

      

    

     

                
IN WITNESS WHEREOF, the
parties hereto have executed this Agreement.

    

      
        
          
            	 
      	 
      	 
      	
                    Advance
      Biofactures Corporation

                     

                     

                     

                  
	 
      	
                    <OMITTED
      AND FILED SEPARATELY WITH THE  SECURITIES

                  	 
      	
                    By:

                  	
                    /s/ Thomas L. Wegman

                  
	 
      	AND
      EXCHANGE COMMISSION>	 
      	 
      	
                    Thomas
      L. Wegman,
PresidentEX-4.1

Exhibit 4.1

 

RIGHTS AGREEMENT

ALPHARMA INC.

and

COMPUTERSHARE TRUST COMPANY, N.A.,

as Rights Agent

Dated as of September 1, 2008

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Section 1. Certain Definitions
	 	 	1	 
	Section 2. Appointment of Rights Agent
	 	 	5	 
	Section 3. Issuance of Right Certificates
	 	 	5	 
	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
	 	 	7	 
	Section 7. Exercise of Rights, Purchase Price; Expiration Date of Rights
	 	 	8	 
	Section 8. Cancellation and Destruction of Right Certificates
	 	 	9	 
	Section 9. Availability of Shares of Series B Preferred Stock
	 	 	9	 
	Section 10. Series B Preferred Stock Record Date
	 	 	11	 
	Section 11. Adjustment of Purchase Price, Number and Kind of Shares and Number of Rights
	 	 	11	 
	Section 12. Certificate of Adjusted Purchase Price or Number of Shares
	 	 	18	 
	Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earnings Power
	 	 	19	 
	Section 14. Fractional Rights and Fractional Shares
	 	 	22	 
	Section 15. Rights of Action
	 	 	23	 
	Section 16. Agreement of Right Holders
	 	 	24	 
	Section 17. Right Certificate Holder Not Deemed a Stockholder
	 	 	24	 
	Section 18. Concerning the Rights Agent
	 	 	24	 
	Section 19. Merger or Consolidation or Change of Rights Agent
	 	 	25	 
	Section 20. Duties of Rights Agent
	 	 	25	 
	Section 21. Change of Rights Agent
	 	 	27	 
	Section 22. Issuance of New Right Certificates
	 	 	28	 

-i-

 

	 	 	 	 	 
	 	 	Page	 
	Section 23. Redemption
	 	 	28	 
	Section 24. Exchange
	 	 	29	 
	Section 25. Notice of Certain Events
	 	 	30	 
	Section 26. Notices
	 	 	30	 
	Section 27. Supplements and Amendments
	 	 	31	 
	Section 28. Successors
	 	 	32	 
	Section 29. Benefits of this Rights Agreement
	 	 	32	 
	Section 30. Determinations and Actions by the Board of Directors
	 	 	32	 
	Section 31. Severability
	 	 	32	 
	Section 32. Governing Law
	 	 	32	 
	Section 33. Counterparts
	 	 	33	 
	Section 34. Descriptive Headings
	 	 	33	 
	Section 35. Force Majeure
	 	 	33	 

EXHIBITS

Exhibit A — Form of Certificate of Designations

Exhibit B — Form of Right Certificate

Exhibit C — Form of Summary of Rights

-ii-

 

INDEX OF DEFINED TERMS

	 	 	 	 	 
	 	 	Page	 
	Acquiring Person
	 	 	1	 
	Affiliate
	 	 	2	 
	Associate
	 	 	2	 
	Authorized Officer
	 	 	26	 
	Beneficial Owner
	 	 	2	 
	Beneficial Ownership
	 	 	2	 
	beneficially own
	 	 	2	 
	Business Day
	 	 	3	 
	Class A Common Stock
	 	 	3	 
	Class A Common Stock equivalents
	 	 	13	 
	close of business
	 	 	3	 
	Common Stock
	 	 	3	 
	Company
	 	 	1	 
	Current Value
	 	 	13	 
	Distribution Date
	 	 	5	 
	equivalent preferred shares
	 	 	14	 
	Exchange Act
	 	 	2	 
	Exchange Ratio
	 	 	29	 
	Exempted Entity
	 	 	4	 
	Expiration Date
	 	 	8	 
	Final Expiration Date
	 	 	8	 
	Grandfathered Stockholder
	 	 	4	 
	invalidation time
	 	 	12	 
	Nasdaq
	 	 	4	 
	NYSE
	 	 	4	 
	Original Rights
	 	 	2	 
	Person
	 	 	4	 
	Principal Party
	 	 	20	 
	Purchase Price
	 	 	8	 
	Record Date
	 	 	1	 
	Redemption Date
	 	 	8	 
	Redemption Price
	 	 	28	 
	Right
	 	 	1	 
	Right Certificate
	 	 	5	 
	Rights Agent
	 	 	1	 
	Rights Agreement
	 	 	1	 
	Section 11(a)(ii) Trigger Date
	 	 	13	 
	Securities Act
	 	 	4	 
	Security
	 	 	15	 
	Series B Preferred Stock
	 	 	4	 
	Spread
	 	 	13	 
	Stock Acquisition Date
	 	 	4	 
	Subsidiary
	 	 	5	 
	Substitution Period
	 	 	13	 
	Summary of Rights
	 	 	5	 
	then outstanding
	 	 	2	 
	Trading Day
	 	 	15	 

-iii-

 

RIGHTS AGREEMENT

          Rights Agreement, dated as of September 1, 2008 (as amended, supplemented or otherwise
modified from time to time, the “Rights Agreement”) between Alpharma Inc., a Delaware
corporation (the “Company”), and Computershare Trust Company, N.A. (the “Rights
Agent”).

W I T N E S S E T H

          WHEREAS, the Board of Directors of the Company has on September 1, 2008, authorized and
declared a dividend of one preferred stock purchase right (a “Right”) for each share of
Class A Common Stock (as defined below) of the Company outstanding as of the close of business (as
defined below) on September 12, 2008 (the “Record Date”), each Right representing the right
to purchase one one-thousandth (subject to adjustment) of a share of Series B Preferred Stock (as
defined below), upon the terms and subject to the conditions herein set forth, and the Board of
Directors has further authorized and directed the issuance of one Right (subject to adjustment as
provided herein) with respect to each share of Common Stock that shall become outstanding between
the Record Date and the earlier of the Distribution Date and the Expiration Date (as such terms are
hereinafter defined); provided, however, that Rights may be issued with respect to
shares of Common Stock that shall become outstanding after the Distribution Date and prior to the
Expiration Date in accordance with Section 22.

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

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

          (a) “Acquiring Person” shall mean any Person (as defined below) who or which shall be
the Beneficial Owner (as defined below) of 15% or more of the shares of Class A Common Stock then
outstanding on or after the date hereof, but shall not include an Exempted Entity (as defined
below) or Grandfathered Stockholder (as defined below); provided, however, that 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 (including, without limitation, because (A)
such Person was unaware that it beneficially owned a percentage of Class A Common Stock that would
otherwise cause such Person to be an “Acquiring Person” or (B) such Person was aware of the extent
of its Beneficial Ownership of Class A Common Stock but had no actual knowledge of the consequences
of such Beneficial Ownership under this Rights Agreement) and without any intention of changing or
influencing control of the Company, then such Person shall not be deemed to be or to have become an
“Acquiring Person” for any purposes of this Rights Agreement unless and until such Person shall
have failed to divest itself, as soon as practicable, if the Company so requests, of Beneficial
Ownership of a sufficient number of shares of Class A Common Stock so that such Person would no
longer otherwise qualify as an “Acquiring Person”. Notwithstanding the foregoing, no Person shall
be deemed an “Acquiring Person” as the result of an acquisition of shares of Class A Common Stock
by the
Company which, by reducing the number of shares outstanding, increases the proportionate

 

 

number of shares beneficially owned by such Person to 15% or more of the shares of Class A Common
Stock then outstanding; provided, however, that if a Person shall become the
Beneficial Owner of 15% or more of the shares of Class A Common Stock then outstanding by reason of
such share acquisitions by the Company and thereafter becomes the Beneficial Owner of any
additional shares of Class A Common Stock (other than pursuant to a dividend or distribution paid
or made by the Company on the outstanding Class A Common Stock or pursuant to a split or
subdivision of the outstanding Class A Common Stock), then such Person shall be deemed to be an
“Acquiring Person,” subject to the proviso set forth in the first sentence of this Section 1(a),
unless upon the consummation of the acquisition of such additional shares of Class A Common Stock
such Person does not beneficially own 15% or more of the shares of Class A Common Stock then
outstanding. The phrase “then outstanding”, when used with reference to a Person’s
Beneficial Ownership of securities of the Company, shall mean the number of such securities then
issued and outstanding together with the number of such securities not then actually issued and
outstanding which such Person would be deemed to beneficially own hereunder.

          (b) “Affiliate” and “Associate” shall have the respective meanings ascribed to
such terms in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of
1934, as amended and in effect on the date of the Agreement (the “Exchange Act”).

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

     (i) which such Person or any of such Person’s Affiliates or Associates is deemed to
beneficially own, directly or indirectly, within the meaning of Rule 13d-3 of the General
Rules and Regulations under the Exchange Act as in effect on the date of this Rights
Agreement;

     (ii) which such Person or any of such Person’s Affiliates or Associates has (A) the
right to acquire (whether such right is exercisable immediately or only after the passage of
time) pursuant to any agreement, arrangement or understanding (other than customary
agreements with and between underwriters and selling group members with respect to a bona
fide public offering of securities), 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 the
Beneficial Owner of, or to beneficially own, (x) securities tendered pursuant to a tender or
exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or
Associates until such tendered securities are accepted for purchase or exchange, (y)
securities which such Person has a right to acquire on the exercise of Rights at any time
prior to the time a Person becomes an Acquiring Person or (z) securities issuable upon
exercise of Rights from and after the time a Person becomes an Acquiring Person if such
Rights were acquired by such Person or any of such Person’s Affiliates or Associates prior
to the Distribution Date or pursuant to Section 3 or Section 22 hereof (the “Original
Rights”) or pursuant to Section 11(i) or Section 11(n) with respect to an adjustment to
the Original Rights; or (B) the right to vote pursuant to any agreement, arrangement or
understanding, written or otherwise; provided, however, that a Person
shall not be deemed the Beneficial Owner of, or to beneficially own, any security by reason
of such

-2-

 

agreement, arrangement or understanding if the agreement, arrangement or
understanding to vote such security (1) arises solely from a revocable proxy or consent
given to such Person in response to a public proxy or consent solicitation made pursuant to,
and in accordance with, the applicable rules and regulations promulgated under the Exchange
Act and (2) is not also then reportable on Schedule 13D under the Exchange Act (or any
comparable or successor report); or

     (iii) which are beneficially owned, directly or indirectly, by any other Person (or any
Affiliate or Associate thereof) with which such Person (or any of such Person’s Affiliates
or Associates) has any agreement, arrangement or understanding (whether or not in writing),
for the purpose of acquiring, holding, voting (except to the extent contemplated by the
proviso to this Section 1(c)(ii)(B)) or disposing of such securities of the Company;

provided, however, that (x) nothing in this Section 1(c) shall cause a Person
engaged in business as an underwriter of securities to be the “Beneficial Owner” of, or to
“beneficially own,” any securities acquired through such Person’s participation in good faith in a
firm commitment underwriting until the expiration of forty days after the date of such acquisition,
and then only if such securities continue to be owned by such Person at such expiration of forty
days; (y) no Person who is an officer, director, or employee of an Exempted Entity or Grandfathered
Stockholder shall be deemed, solely by reason of such Person’s status or authority as such, to be
the “Beneficial Owner” of, to have “Beneficial Ownership” of or to “beneficially own” any
securities that are “beneficially owned” (as defined in this Section 1(c)), including, without
limitation, in a fiduciary capacity, by an Exempted Entity or Grandfathered Stockholder or by any
other such officer, director or employee of an Exempted Entity or Grandfathered Stockholder, as
applicable; and (z) a Person shall not be deemed the Beneficial Owner of, to have “Beneficial
Ownership” of or to beneficially own, shares of Class A Common Stock (or securities convertible
into, exchangeable into or exercisable for Class A Common Stock) held by such Person in trust
accounts, managed accounts and the like, or otherwise held in a fiduciary capacity, that are
Beneficially Owned by third Persons who are not Affiliates or Associates of such Person.

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

          (e) “Class A Common Stock” shall mean the Class A Common Stock, par value $.20 per
share, of the Company.

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

          (g) “Common Stock” when used with reference to the Company shall mean, collectively,
the Class A Common Stock and the Class B Common Stock, par value $.20 per share, of the Company.
“Common Stock” when used with reference to any Person other than the Company shall mean the
capital stock (or, in the case of an unincorporated entity, the equivalent

-3-

 

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.

          (h) “Exempted Entity” shall mean (1) the Company, (2) any Subsidiary (as defined
below) of the Company (in the case of subclauses (1) and (2) including, without limitation, in its
fiduciary capacity), (3) any employee benefit plan of the Company or of any Subsidiary of the
Company and (4) any entity or trustee holding Common Stock for or pursuant to the terms of any such
plan or for the purpose of funding any such plan or funding other employee benefits for employees
of the Company or of any Subsidiary of the Company.

          (i) “Grandfathered Stockholder” shall mean any Person that would otherwise be deemed
an “Acquiring Person” upon the adoption of this Rights Agreement; provided,
however, that any Grandfathered Stockholder shall not be deemed an “Acquiring Person” for
purposes of this Agreement only for so long as neither it nor any of its Affiliates or Associates
acquire beneficial ownership of any additional shares of outstanding Class A Common Stock after
adoption of this Rights Agreement (other than pursuant to a dividend or distribution paid or made
by the Company on the outstanding Class A Common Stock or pursuant to a split or subdivision of the
outstanding Class A Common Stock), and in the event that any Grandfathered Stockholder (or its
Affiliates or Associates) does so acquire beneficial ownership of additional shares of outstanding
Class A Common Stock, then such Person shall no longer be deemed a Grandfathered Stockholder and
shall be deemed an “Acquiring Person.”

          (j) “Nasdaq” shall mean The Nasdaq Stock Market’s Global Select Market or Global
Market, as applicable.

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

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

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

          (n) “Series B Preferred Stock” shall mean the Series B Junior Participating Preferred
Stock, par value $1.00 per share, of the Company having the rights and preferences set forth in the
Certificate of Designations attached to this Rights Agreement as Exhibit A and, to the extent that
there are not a sufficient number of shares of Series B Junior Participating Preferred Stock
authorized to permit the full exercise of the Rights, any other series of preferred stock of the
Company designated for such purpose containing terms substantially similar to the terms of the
Series B Junior Participating Preferred Stock.

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

-4-

 

          (p) “Subsidiary” of any Person shall mean any corporation or other entity of which
securities or other ownership interests having ordinary voting power sufficient to elect a majority
of the board of directors or other persons performing similar functions are beneficially owned,
directly or indirectly, by such Person, and any corporation or other entity that is otherwise
controlled by such Person.

          Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent
to act as agent for the Company in accordance with the terms and conditions hereof, and the Rights
Agent hereby accepts such appointment. The Company may from time to time appoint such co-Rights
Agents as it may deem necessary or desirable upon ten (10) days’ prior 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.

          Section 3. Issuance of Right Certificates. (a) Until the close of business on the
earlier of (i) the tenth day 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 an
Exempted Entity) of, or of the first public announcement of the intention of such Person (other
than an Exempted Entity) to commence, a tender or exchange offer the consummation of which would
result in any Person (other than an Exempted Entity) becoming the Beneficial Owner of 15% or more
of the shares of Class A Common Stock then outstanding (including, in the case of both clause (i)
and (ii), any such date which is after the date of this Rights Agreement and prior to the issuance
of the Rights) (the earlier of such dates being herein referred to as the “Distribution
Date”), (x) the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by
the certificates for Common Stock registered in the names of the holders thereof and not by
separate Right Certificates (as defined below), and (y) the Rights will be transferable only in
connection with the transfer of Common Stock. As soon as practicable after the Distribution Date,
the Company will prepare and execute, the Rights Agent will countersign, and the Company will send
or cause to be sent (and the Rights Agent will, if requested, send) by first-class, insured,
postage-prepaid mail, to each record holder of Common Stock as of the close of business on the
Distribution Date (other than any Acquiring Person or any Associate or Affiliate of an Acquiring
Person), at the address of such holder shown on the records of the Company, a Right Certificate, in
substantially the form of Exhibit B hereto (a “Right Certificate”), evidencing one Right
(subject to adjustment as provided herein) for each share of Common Stock so held. As of and after
the Distribution Date, the Rights will be evidenced solely by such Right Certificates.

          (b) As promptly as practicable following the Record Date, the Company will send a copy of a
Summary of Rights to Purchase Shares of Series B Preferred Stock, in substantially the form of
Exhibit C hereto (the “Summary of Rights”), by electronic mail, to each record holder
of Class A Common Stock as of the close of business on the Record Date (other than any
Acquiring Person or any Associate or Affiliate of any Acquiring Person), at the address of such
holder shown on the records of the Company; provided, however, the Company will
send a copy of the Summary of Rights by first-class, postage-prepaid mail to each record holder who
so requests upon receipt of the electronic mail. With respect to shares of Class A Common Stock
outstanding as of the Record Date, until the Distribution Date, the Rights associated with such
shares will be evidenced by the share certificate for such shares of Class A Common Stock

-5-

 

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

          (c) Rights shall be issued in respect of all shares of Common Stock issued or disposed of
(including, without limitation, upon disposition of Common Stock out of treasury stock or issuance
or reissuance of Common Stock out of authorized but unissued shares) after the Record Date but
prior to the earlier of the Distribution Date and the Expiration Date, or in certain circumstances
provided in Section 22 hereof, after the Distribution Date. Certificates issued for Common Stock
(including, without limitation, upon transfer of outstanding Common Stock, disposition of Common
Stock out of treasury stock or issuance or reissuance of Common Stock out of authorized but
unissued shares) after the Record Date but prior to the earlier of the Distribution Date and the
Expiration Date 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 Alpharma
Inc. and Computershare Trust Company, N.A., as Rights Agent, dated as
of September 1, 2008, as the same may be amended, supplemented or
otherwise modified from time to time (the “Rights
Agreement”), the terms of which are hereby incorporated herein by
reference and a copy of which is on file at the principal executive
offices of Alpharma 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.
Alpharma 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, as set forth in the
Rights Agreement, Rights owned by or transferred to any Person who is
or becomes an Acquiring Person (as defined in the Rights Agreement)
and certain transferees thereof will become null and void and will no
longer be transferable.”

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

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

-6-

 

          Section 4. Form of Right Certificates. The Right Certificates (and the forms of
election to purchase shares and of assignment to be printed on the reverse thereof) shall be
substantially in the form set forth in Exhibit 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 Rights 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 the NYSE or of any other stock exchange or automated quotation
system on which the Rights may from time to time be listed, or to conform to usage. Subject to the
provisions of Sections 11 and 22 hereof, the Right Certificates shall entitle the holders thereof
to purchase such number of one one-thousandths of a share of Series B Preferred Stock as shall be
set forth therein at the Purchase Price (as determined pursuant to Section 7), but the amount and
type of securities purchasable upon the exercise of each Right and the Purchase Price thereof shall
be subject to adjustment as provided herein.

          Section 5. Countersignature and Registration. (a) The Right Certificates shall be
executed on behalf of the Company by the Chief Executive Officer, the President, any of the Vice
Presidents or the Treasurer of the Company, either manually or by facsimile signature, shall have
affixed thereto the Company’s seal or a facsimile thereof and shall be attested by the Secretary or
an Assistant Secretary of the Company, either manually or by facsimile signature. The Right
Certificates shall be countersigned by the Rights Agent, either manually or by facsimile signature,
and shall not be valid for any purpose unless countersigned. In case any officer of the Company
who shall have signed any of the Right Certificates shall cease to be such officer of the Company
before countersignature by the Rights Agent and issuance and delivery by the Company, such Right
Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by
the Company with the same force and effect as though the Person who signed such Right Certificates
had not ceased to be such officer of the Company; and any Right Certificate may be signed on behalf
of the Company by any Person who, at the actual date of the execution of such Right Certificate,
shall be a proper officer of the Company to sign such Right Certificate, although at the date of
the execution of this Rights Agreement any such Person was not such an officer.

          (b) Following the Distribution Date, the Rights Agent will keep or cause to be kept, at an
office or agency designated for such purpose, books for registration and transfer of the Right
Certificates issued hereunder. Such books shall show the names and addresses of the respective
holders of the Right Certificates, the number of Rights evidenced on its face by each of the Right
Certificates and the date of each of the Right Certificates.

          Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated,
Destroyed, Lost or Stolen Right Certificates. (a) Subject to the provisions of this Rights
Agreement, at any time after the close of business on the Distribution Date, and prior to the close
of business on the Expiration Date, any Right Certificate or Right Certificates may be transferred,
split up, combined or exchanged for another Right Certificate or Right Certificates, entitling the
registered holder to purchase a like number of one one-thousandths of a share of Series B Preferred
Stock (or, following such time, other securities, cash or assets as the case may be) as the Right
Certificate or Right Certificates surrendered then entitled such holder to purchase. Any
registered holder desiring to transfer, split up, combine or exchange any Right Certificate or
Right Certificates shall make such request in writing delivered to the Rights Agent,

-7-

 

and shall
surrender the Right Certificate or Right Certificates to be transferred, split up, combined or
exchanged at the office or agency of the Rights Agent designated for such purpose. Thereupon the
Rights Agent, subject to the provisions of this Rights Agreement, shall countersign and deliver to
the Person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so
requested. The Company may require payment of a sum sufficient to cover any tax or governmental
charge that may be imposed in connection with any transfer, split up, combination or exchange of
Right Certificates.

          (b) Subject to the provisions of this Rights Agreement, at any time after the Distribution
Date and prior to the Expiration Date, upon receipt by the Company and the Rights Agent of evidence
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 upon surrender to the Rights Agent and
cancellation of the Right Certificate if mutilated, the Company will make and deliver a new Right
Certificate of like tenor to the Rights Agent for delivery to the registered holder in lieu of the
Right Certificate so lost, stolen, destroyed or mutilated.

          Section 7. Exercise of Rights, Purchase Price; Expiration Date of Rights. (a) Except
as otherwise provided herein, the Rights shall become exercisable on the Distribution Date, and
thereafter the registered holder of any Right Certificate may, subject to Section 11(a)(ii) hereof
and except as otherwise provided herein, exercise the Rights evidenced thereby in whole or in part
upon surrender of the Right Certificate, with the form of election to purchase on the reverse side
thereof duly executed, to the Rights Agent at the office or agency of the Rights Agent designated
for such purpose, together with payment of the Purchase Price for each one one-thousandth of a
share of Series B Preferred Stock (or other securities, cash or assets, as the case may be) as to
which the Rights are exercised, at any time which is both after the Distribution Date and prior to
the time (the “Expiration Date”) that is the earliest of (i) the close of business on
September 1, 2009 (the “Final Expiration Date”), (ii) the time at which the Rights are
redeemed as provided in Section 23 hereof (the “Redemption Date”) or (iii) the time at
which such Rights are exchanged as provided in Section 24 hereof.

          (b) The purchase price (the “Purchase Price”) shall be initially $65.00 for each one
one-thousandth of a share of Series B Preferred Stock purchasable upon the exercise of a Right.
The Purchase Price and the number of one one-thousandths of a share of Series B Preferred Stock or
other securities or property to be acquired upon exercise of a Right shall be
subject to adjustment from time to time as provided in Sections 11 and 13 hereof and shall be
payable in lawful money of the United States of America in accordance with paragraph (c) of this
Section 7.

          (c) Except as otherwise provided herein, upon receipt of a Right Certificate representing
exercisable Rights, with the form of election to purchase duly executed, accompanied by payment of
the aggregate Purchase Price for the number of shares of Series B Preferred Stock to be purchased
and an amount equal to any applicable transfer tax required to be paid by the holder of such Right
Certificate in accordance with Section 6 hereof, in cash or by certified check, cashier’s check or
money order payable to the order of the Company, the Rights Agent shall thereupon promptly (i) (A)
requisition from any transfer agent of the Series B

-8-

 

Preferred Stock or make available if the Rights
Agent is the transfer agent for the Series B Preferred Stock certificates for the number of shares
of Series B Preferred Stock to be purchased (and the Company hereby irrevocably authorizes its
transfer agent to comply with all such requests), or (B) requisition from the depositary agent
appointed by the Company depositary receipts representing interests in such number of one
one-thousandths of a share of Series B Preferred Stock as are to be purchased, in which case
certificates for the Series B Preferred Stock represented by such receipts shall be deposited by
the transfer agent with the depositary agent (and the Company hereby directs the depositary agent
to comply with such request), (ii) when appropriate, requisition from the Company the amount of
cash to be paid in lieu of issuance of fractional shares in accordance with Section 14 hereof,
(iii) promptly after receipt of such certificates or depositary receipts, cause the same to be
delivered to or upon the order of the registered holder of such Right Certificate, registered in
such name or names as may be designated by such holder and (iv) when appropriate, after receipt,
promptly deliver such cash to or upon the order of the registered holder of such Right Certificate.

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

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

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

          Section 9. Availability of Shares of Series B Preferred Stock. (a) The Company
covenants and agrees that it will cause to be reserved and kept available out of its authorized and
unissued shares of Series B Preferred Stock or any shares of Series B Preferred Stock held in its
treasury, the number of shares of Series B Preferred Stock that will be sufficient to permit the
exercise in full of all outstanding Rights.

-9-

 

          (b) So long as the shares of Series B Preferred Stock (and, following the time that a Person
becomes an Acquiring Person, shares of Class A Common Stock and other securities) issuable upon the
exercise of Rights may be listed or admitted to trading on the NYSE or listed on any other national
securities exchange or quotation system, the Company shall use its best efforts to cause, from and
after such time as the Rights become exercisable, all shares reserved for such issuance to be
listed or admitted to trading on the NYSE or listed on any other exchange or quotation system upon
official notice of issuance upon such exercise.

          (c) From and after such time as the Rights become exercisable, the Company shall use its best
efforts, if then necessary to permit the issuance of shares of Series B Preferred Stock (and
following the time that a Person first becomes an Acquiring Person, shares of Class A Common Stock
and other securities) upon the exercise of Rights, to register and qualify such shares of Series B
Preferred Stock (and following the time that a Person first becomes an Acquiring Person, shares of
Class A Common Stock and other securities) under the Securities Act and any applicable state
securities or “Blue Sky” laws (to the extent exemptions therefrom are not available), cause such
registration statement and qualifications to become effective as soon as possible after such filing
and keep such registration and qualifications effective until the earlier of (x) the date as of
which the Rights are no longer exercisable for such securities and (y) the Expiration Date. The
Company may temporarily suspend, for a period of time not to exceed ninety (90) days, the
exercisability of the Rights in order to prepare and file a registration statement under the
Securities Act and permit it to become effective. Upon any such suspension, the Company shall
issue a public announcement stating that the exercisability of the Rights has been temporarily
suspended, as well as a public announcement at such time as the suspension is no longer in effect.
Notwithstanding any provision of this Rights Agreement to the contrary, the Rights shall not be
exercisable in any jurisdiction unless the requisite qualification or exemption in such
jurisdiction shall have been obtained and until a registration statement under the Securities Act
(if required) shall have been declared effective.

          (d) The Company covenants and agrees that it will take all such action as may be necessary to
ensure that all shares of Series B Preferred Stock (and, following the time that a Person becomes
an Acquiring Person, shares of Class A Common Stock and other securities) delivered upon exercise
of Rights shall, at the time of delivery of the certificates therefor (subject
to payment of the Purchase Price), be duly and validly authorized and issued and fully paid
and nonassessable shares.

          (e) The Company further covenants and agrees that it will pay when due and payable any and all
federal and state transfer taxes and charges which may be payable in respect of the issuance or
delivery of the Right Certificates or of any shares of Series B Preferred Stock (or shares of Class
A Common Stock or other securities) upon the exercise of Rights. The Company shall not, however,
be required to pay any transfer tax or charge which may be payable in respect of any transfer or
delivery of Right Certificates to a Person other than, or the issuance or delivery of certificates
or depositary receipts for the Series B Preferred Stock (or shares of Class A Common Stock or other
securities) in a name other than that of, the registered holder of the Right Certificate evidencing
Rights surrendered for exercise or to issue or deliver any certificates or depositary receipts for
Series B Preferred Stock (or shares of Class A Common Stock or other securities) upon the exercise
of any Rights until any such tax or charge shall have been paid (any such tax or charge being
payable by that holder of such Right Certificate at the

-10-

 

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

          Section 10. Series B Preferred Stock Record Date. Each Person in whose name any
certificate for Series B Preferred Stock is issued upon the exercise of Rights shall for all
purposes be deemed to have become the holder of record of the shares of Series B Preferred Stock
represented thereby on, and such certificate shall be dated, the date upon which the Right
Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and any
applicable transfer taxes or charges) was made; provided, however, that if the date
of such surrender and payment is a date upon which the Series B Preferred Stock 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 such transfer
books 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 Series B Preferred Stock for which
the Rights shall be exercisable, including, without limitation, the right to vote or to receive
dividends or other distributions, and shall not be entitled to receive any notice of any
proceedings of the Company, except as provided herein.

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

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

     (ii) Subject to Section 24 of this Rights Agreement and except as otherwise provided in
this Section 11(a)(ii) and Section 11(a)(iii), in the event that any Person becomes an
Acquiring Person, each holder of a Right shall thereafter have the right to receive, upon
exercise thereof at a price equal to the then-current Purchase Price, in accordance with the
terms of this Rights Agreement and in lieu of shares of Series B

-11-

 

Preferred Stock, such
number of shares of Class A Common Stock (or at the option of the Company, such number of
one one-thousandths of a share of Series B Preferred Stock) as shall equal the result
obtained by (x) multiplying the then-current Purchase Price by the number of one
one-thousandths of a share of Series B Preferred Stock for which a Right is then exercisable
and dividing that product by (y) 50% of the then-current per share market price of the Class
A Common Stock (determined pursuant to Section 11(d) hereof) on the date of the occurrence
of such event; provided, however, that the Purchase Price (as so adjusted)
and the number of shares of Class A Common Stock so receivable upon exercise of a Right
shall thereafter be subject to further adjustment as appropriate in accordance with Section
11(f) hereof. Notwithstanding anything in this Rights Agreement to the contrary, however,
from and after the time (the “invalidation time”) when any Person first becomes an
Acquiring Person, any Rights that are beneficially owned by (x) any Acquiring Person (or any
Affiliate or Associate of any Acquiring Person), (y) a transferee of any Acquiring Person
(or any such Affiliate or Associate) who becomes a transferee after the invalidation time or
(z) a transferee of any Acquiring Person (or any such Affiliate or Associate) who became a
transferee prior to or concurrently with the invalidation time pursuant to either (I) a
transfer from the Acquiring Person to holders of its equity securities or to any Person with
whom it has any continuing agreement, arrangement or understanding, written or otherwise,
regarding the transferred Rights or (II) a transfer that the Board of Directors has
determined is part of a plan, arrangement or understanding, written or otherwise, which has
the purpose or effect of avoiding the provisions of this paragraph, and subsequent
transferees of such Persons, shall be void without any further action and any holder of such
Rights shall thereafter have no rights whatsoever with respect to such Rights under any
provision of this Rights Agreement. The Company shall use all reasonable efforts to ensure
that the provisions of this Section 11(a)(ii) are complied with, but shall have no liability
to any holder of Right Certificates or other Person as a result of its failure to make any
determinations with respect to an Acquiring Person or its Affiliates, Associates or
transferees hereunder. From and after the invalidation time, no Right Certificate shall be
issued pursuant to
Section 3 or Section 6 hereof that represents Rights that are or have become void
pursuant to the provisions of this paragraph, and any Right Certificate delivered to the
Rights Agent that represents Rights that are or have become void pursuant to the provisions
of this paragraph shall be cancelled. From and after the occurrence of an event specified
in Section 13(a) hereof, any Rights that theretofore have not been exercised pursuant to
this Section 11(a)(ii) shall thereafter be exercisable only in accordance with Section 13
and not pursuant to this Section 11(a)(ii).

     (iii) The Company may at its option substitute for a share of Class A Common Stock
issuable upon the exercise of Rights in accordance with the foregoing subparagraph (ii) such
number or fractions of shares of Series B Preferred Stock having an aggregate current market
value equal to the current per share market price of a share of Class A Common Stock. In
the event that there shall be an insufficient number of Class A Common Stock authorized but
unissued (and unreserved) to permit the exercise in full of the Rights in accordance with
the foregoing subparagraph (ii), the Board of Directors shall, with respect to such
deficiency, to the extent permitted by applicable law and any material agreements then in
effect to which the Company is a party (A) determine the excess of (x) the value of the
            shares of Class A Common Stock issuable upon the exercise

-12-

 

of a Right in accordance with the
foregoing subparagraph (ii) (the “Current Value”) over (y) the then-current Purchase
Price multiplied by the number of one one-thousandths of shares of Series B Preferred Stock
for which a Right was exercisable immediately prior to the time that the Acquiring Person
became such (such excess, the “Spread”), and (B) with respect to each Right (other
than Rights which have become void pursuant to Section 11(a)(ii)), make adequate provision
to substitute for the shares of Class A Common Stock issuable in accordance with
subparagraph (ii) upon exercise of the Right and payment of the applicable Purchase Price,
(1) cash, (2) a reduction in such Purchase Price, (3) shares of Series B Preferred Stock or
other equity securities of the Company (including, without limitation, shares or fractions
of shares of preferred stock which, by virtue of having dividend, voting and liquidation
rights substantially comparable to those of the shares of Class A Common Stock, are deemed
in good faith by the Board of Directors to have substantially the same value as the shares
of Class A Common Stock (such shares of preferred stock and shares or fractions of shares of
preferred stock are hereinafter referred to as “Class A Common Stock equivalents”),
(4) debt securities of the Company, (5) other assets or (6) any combination of the
foregoing, having a value which, when added to the value of the shares of Class A Common
Stock actually issued upon exercise of such Right, shall have an aggregate value equal to
the Current Value (less the amount of any reduction in such Purchase Price), where such
aggregate value has been determined by the Board of Directors upon the advice of a
nationally recognized investment banking firm selected in good faith by the Board of
Directors; provided, however, if the Company shall not make adequate
provision to deliver value pursuant to clause (B) above within thirty (30) days following
the date that the Acquiring Person became such (the “Section 11(a)(ii) Trigger
Date”), then the Company shall be obligated to deliver, to the extent permitted by
applicable law and any material agreements then in effect to which the Company is a party,
upon the surrender for exercise of a Right and without requiring payment of the Purchase
Price, shares of Class A Common Stock (to the extent
available), and then, if necessary, such number or fractions of shares of Series B
Preferred Stock (to the extent available) and then, if necessary, cash, which shares and/or
cash have an aggregate value equal to the Spread. If within the thirty (30) day period
referred to above the Board of Directors shall determine in good faith that it is likely
that sufficient additional shares of Class A Common Stock could be authorized for issuance
upon exercise in full of the Rights, then, if the Board of Directors so elects, such thirty
(30) day period may be extended to the extent necessary, but not more than ninety (90) days
after the Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder
approval for the authorization of such additional shares (such thirty (30) day period, as it
may be extended, is hereinafter called the “Substitution Period”). To the extent
that the Company determines that some action need be taken pursuant to the second and/or
third sentence of this Section 11(a)(iii), the Company (x) shall provide, subject to Section
11(a)(ii) hereof and the last sentence of this Section 11(a)(iii) hereof, that such action
shall apply uniformly to all outstanding 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 and/or to decide the appropriate form of distribution to
be made pursuant to such second sentence and to determine the value thereof. In the event
of any such suspension, the Company shall issue a public announcement stating that the
exercisability of the Rights has been temporarily

-13-

 

suspended, as well as a public
announcement at such time as the suspension is no longer in effect. For purposes of this
Section 11(a)(iii), the value of the shares of Class A Common Stock shall be the current per
share market price (as determined pursuant to Section 11(d)(i)) on the Section 11(a)(ii)
Trigger Date and the per share or fractional value of any Class A Common Stock equivalent
shall be deemed to equal the current per share market price of the Class A Common Stock.
The Board of Directors of the Company may, but shall not be required to, establish
procedures to allocate the right to receive shares of Class A Common Stock upon the exercise
of the Rights among holders of Rights pursuant to this Section 11(a)(iii).

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

          (c) In case the Company shall fix a record date for the making of a distribution to all
holders of the Series B Preferred Stock (including any such distribution made in connection with a
consolidation or merger in which the Company is the continuing or surviving corporation) of
evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend
payable in Series B Preferred Stock) or subscription rights or warrants (excluding those referred

-14-

 

to in Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such record date by a
fraction, the numerator of which shall be the then-current per share market price of the Series B
Preferred Stock (determined pursuant to Section 11(d) hereof) 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 and shall be binding on
the Rights Agent) of the portion of such assets or evidences of indebtedness so to be distributed
or of such subscription rights or warrants applicable to one share of Series B Preferred Stock, and
the denominator of which shall be such current per share market price of the Series B Preferred
Stock; provided, however, that in no event shall the consideration to be paid upon
the exercise of one Right be less than the aggregate par value of the shares of capital stock of
the Company to be issued upon exercise of one Right. Such adjustments shall be made successively
whenever such a record date is fixed; and in the event that such distribution is not so made, the
Purchase Price shall again be adjusted to be the Purchase Price which would then be in effect if
such record date had not been fixed.

          (d) (i) Except as otherwise provided herein, for the purpose of any computation hereunder,
the “current per share market price” of any security (a “Security” for the purpose of this
Section 11(d)(i)) on any date shall be deemed to be the average of the daily closing prices per
share of such Security for the 30 consecutive Trading Days (as such term is hereinafter defined)
immediately prior to such date; provided, however, that in the event that the
current per share market price of the Security is determined during a period following the
announcement by the issuer of such Security of (A) a dividend or distribution on such Security
payable in shares of such Security or securities convertible into such shares, or (B) any
subdivision, combination or reclassification of such Security, and prior to the expiration of 30
Trading Days after the ex-dividend date for such dividend or distribution, or the record date for such subdivision,
combination or reclassification, then, and in each such case, the current per share market price
shall be appropriately adjusted to reflect the current market price per share equivalent of such
Security. The closing price for each day shall be the last sale price, regular way, or, in case no
such sale takes place on such day, the average of the closing bid and asked prices, regular way, in
either case as reported by (w) the principal consolidated transaction reporting system with respect
to securities listed or admitted to trading on the NYSE or, (x) if the Security is not listed or
admitted to trading on the NYSE, as reported in the principal consolidated transaction reporting
system with respect to securities listed on the principal national securities exchange on which the
Security is listed or admitted to trading or, if (y) the Security is not listed or admitted to
trading on any national securities exchange, the last quoted price or, if not so quoted, the
average of the high bid and low asked prices in the over-the-counter market, as reported by Nasdaq
or such other system then in use, or, (z) if on any such date the Security is not quoted by any
such organization, the average of the closing bid and asked prices as furnished by a professional
market maker making a market in the Security selected by the Board of Directors of the Company.
The term “Trading Day” shall mean a day on which the principal national securities exchange
on which the Security is listed or admitted to trading is open for the transaction of business or,
if the Security is not listed or admitted to trading on any national securities exchange, a
Business Day.

     (ii) For the purpose of any computation hereunder, if the Series B Preferred Stock is
publicly traded, the “current per share market price” of the Series B Preferred

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Stock shall
be determined in accordance with the method set forth in Section 11(d)(i). If the Series B
Preferred Stock is not publicly traded but the Class A Common Stock is publicly traded, the
“current per share market price” of the Series B Preferred Stock shall be conclusively
deemed to be the current per share market price of the Class A Common Stock, as determined
pursuant to Section 11(d)(i), multiplied by one thousand (appropriately adjusted to reflect
any stock split, stock dividend or similar transaction occurring after the date hereof). If
neither the Class A Common Stock nor the Series B Preferred Stock is publicly traded,
“current per share market price” shall mean the fair value per share as determined in good
faith by the Board of Directors of the Company, whose determination shall be described in a
statement filed with the Rights Agent and shall be binding on the Rights Agent.

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

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

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

          (h) Unless the Company shall have exercised its election as provided in Section 11(i), upon
each adjustment of the Purchase Price as a result of the calculations made in Section 11(b) and
(c), each Right outstanding immediately prior to the making of such adjustment shall thereafter
evidence the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths
of a share of Series B Preferred Stock (calculated to the nearest one ten- thousandth of a share of
Series B Preferred Stock) obtained by (i) multiplying (x) the number of one one-thousandths of a
share of Series B Preferred Stock purchasable upon the exercise of a Right immediately prior to
such adjustment by (y) the Purchase Price in effect immediately prior to such adjustment of the
Purchase Price and (ii) dividing the product so obtained by the Purchase Price in effect
immediately after such adjustment of the Purchase Price.

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          (i) The Company may elect on or after the date of any adjustment of the Purchase Price
pursuant to Sections 11(b) or 11(c) hereof to adjust the number of Rights, in substitution for any
adjustment in the number of one one-thousandths of a share of Series B Preferred Stock purchasable
upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number
of Rights shall be exercisable for the number of one one-thousandths of a share of Series B
Preferred Stock for which a Right was exercisable immediately prior to such adjustment. Each Right
held of record prior to such adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one ten-thousandth) obtained by dividing the Purchase Price in effect
immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately
after adjustment of the Purchase Price. The Company shall make a public announcement of its
election to adjust the number of Rights, indicating the record date for the adjustment, and, if
known at the time, the amount of the adjustment to be made. This record date may be the date on
which the Purchase Price is adjusted or any day thereafter, but, if the Right Certificates have
been issued, shall be at least 10 days later than the date of the public announcement. If Right
Certificates have been issued, upon each adjustment of the number of Rights pursuant to this
Section 11(i), the Company may, as promptly as practicable, cause to be distributed to holders of
record of Right Certificates on such record date Right Certificates evidencing, subject to Section
14 hereof, the additional Rights to which such holders shall be entitled as a result of such
adjustment, or, at the option of the Company, shall cause to be distributed to such holders of
record in substitution and replacement for the Right Certificates held by such holders prior to the
date of adjustment, and upon surrender thereof, if required by the Company, new Right Certificates
evidencing all the Rights to which such holders shall be
entitled as a result of such adjustment. Right Certificates so to be distributed shall be
issued, executed and countersigned in the manner provided for herein and shall be registered in the
names of the holders of record of Right Certificates on the record date specified in the public
announcement.

          (j) Irrespective of any adjustment or change in the Purchase Price or the number of one
one-thousandths of a share of Series B Preferred Stock issuable upon the exercise of the Rights,
the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price
and the number of one one-thousandths of a share of Series B Preferred Stock which were expressed
in the initial Right Certificates issued hereunder.

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

          (l) In any case in which this Section 11 shall require that an adjustment in the Purchase
Price be made effective as of a record date for a specified event, the Company may elect to defer
until the occurrence of such event the issuing to the holder of any Right exercised after such
record date the Series B Preferred Stock, Class A Common Stock or other capital stock or securities
of the Company, if any, issuable upon such exercise over and above the Series B Preferred Stock,
Class A Common Stock or 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

-17-

 

adjustment;
provided, however, that the Company shall deliver to such holder a due bill or
other appropriate instrument evidencing such holder’s right to receive such additional shares upon
the occurrence of the event requiring such adjustment.

          (m) Notwithstanding anything in this Section 11 to the contrary, the Company shall be entitled
to make such adjustments in the Purchase Price, in addition to those adjustments expressly required
by this Section 11, as and to the extent that it in its sole discretion shall determine to be
advisable in order that any consolidation or subdivision of the Series B Preferred Stock, issuance
(wholly for cash) of any shares of Series B Preferred Stock at less than the current market price,
issuance (wholly for cash) of Series B Preferred Stock or securities which by their terms are
convertible into or exchangeable for Series B Preferred Stock, dividends on Series B Preferred
Stock payable in shares of Series B Preferred Stock or issuance of rights, options or warrants
referred to hereinabove in Section 11(b), hereafter made by the Company to holders of its Series B
Preferred Stock shall not be taxable to such stockholders.

          (n) Notwithstanding anything in this Rights Agreement to the contrary, in the event that at
any time after the date of this Rights Agreement and prior to the Distribution Date, the Company
shall (i) declare or pay any dividend on the Common Stock payable in Common Stock or (ii) effect a
subdivision, combination or consolidation of the Common Stock (by reclassification or otherwise
than by payment of a dividend payable in Common Stock) into a greater or lesser number of shares of
Common Stock, then in any such case, the number of Rights
associated with each share of Common Stock then outstanding, or issued or delivered
thereafter, shall be proportionately adjusted so that the number of Rights thereafter associated
with each share of Common Stock following any such event shall equal the result obtained by
multiplying the number of Rights associated with each share of Common Stock immediately prior to
such event by a fraction the numerator of which shall be the total number of shares of Common Stock
outstanding immediately prior to the occurrence of the event and the denominator of which shall be
the total number of shares of Common Stock outstanding immediately following the occurrence of such
event.

          (o) The Company agrees that, after the earlier of the Distribution Date or the Stock
Acquisition Date, it will not, except as permitted by Sections 23, 24 or 27 hereof, take (or permit
any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable
that such action will diminish substantially or eliminate the benefits intended to be afforded by
the Rights.

          Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an
adjustment is made as provided in Section 11 or 13 hereof, the Company shall promptly (a) prepare a
certificate setting forth such adjustment, and a brief statement of the facts accounting for such
adjustment, (b) file with the Rights Agent and with each transfer agent for the Common Stock or the
Series B Preferred Stock a copy of such certificate and (c) mail a brief summary thereof to each
holder of a Right Certificate in accordance with Section 25 hereof (if so required under Section 25
hereof). The Rights Agent shall be fully protected in relying on any such certificate and on any
adjustment therein contained and shall not be deemed to have knowledge of any such adjustment
unless and until it shall have received such certificate.

-18-

 

          Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earnings Power. (a)
In the event, directly or indirectly, at any time after any Person has become an Acquiring Person,
(i) the Company shall merge with and into any other Person (other than one or more of its
wholly-owned Subsidiaries), (ii) any Person (other than one or more of its wholly-owned
Subsidiaries), shall consolidate with the Company, or any Person (other than one or more of its
wholly-owned Subsidiaries), shall merge with and into the Company and the Company shall be the
continuing or surviving corporation of such merger and, in connection with such merger, all or part
of the Class A Common Stock shall be changed into or exchanged for stock or other securities of any
other Person (or of the Company) or cash or any other property, or (iii) the Company shall sell or
otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one or
more transactions, assets or earning power aggregating to 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, and in each such case, proper
provision shall be made so that:

          (A) each holder of record of a Right (other than Rights which have become void pursuant to
Section 11(a)(ii)) shall thereafter have the right to receive, upon the exercise thereof at a price
equal to the then-current Purchase Price multiplied by the number of one one-thousandths of a share
of Series B Preferred Stock for which a Right was exercisable (whether or not such Right was then
exercisable) immediately prior to the time that any Person first became an Acquiring Person (each
as subsequently adjusted thereafter pursuant to Section 11(a)(i), 11(b), 11(c), 11(f), 11(h), 11(i) and 11(m)), in accordance with the terms of this
Rights Agreement and in lieu of Series B Preferred Stock, such number of validly issued, fully paid
and non-assessable and freely tradeable shares of Common Stock of the Principal Party (as defined
below) not subject to any liens, encumbrances, rights of first refusal or other adverse claims, as
shall be equal to the result obtained by (1) multiplying the then-current Purchase Price by the
number of one one-thousandths of a share of Series B Preferred Stock for which a Right was
exercisable immediately prior to the time that any Person first became an Acquiring Person (as
subsequently adjusted thereafter pursuant to Section 11(a)(i), 11(b), 11(c), 11(f), 11(h), 11(i)
and 11(m)) and (2) dividing that product by 50% of the then-current per share market price of the
Common Stock of such Principal Party (determined pursuant to Section 11(d)(i) hereof) on the date
of consummation of such consolidation, merger, sale or transfer; provided that the Purchase
Price and the number of shares of Common Stock of such Principal Party issuable upon exercise of
each Right shall be further adjusted as provided in Section 11(f) of this Rights Agreement to
reflect any events occurring in respect of such Principal Party after the date of such
consolidation, merger, sale or transfer;

          (B) such Principal Party shall thereafter be liable for, and shall assume, by virtue of such
consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to
this Rights Agreement;

          (C) the term “Company” as used herein shall thereafter be deemed to refer to such Principal
Party; and

          (D) such Principal Party shall take such steps (including, but not limited to, the reservation
of a sufficient number of its shares of its Common Stock) in connection with such consummation of
any such transaction as may be necessary to assure that the provisions hereof

-19-

 

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

          (b) “Principal Party” shall mean:

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

     (ii) in the case of any transaction described in clause (iii) of the first sentence in
Section 13(a) hereof, the Person that is the party receiving the greatest portion of the
assets or earning power transferred pursuant to such transaction or transactions, or, if
each Person that is a party to such transaction or transactions receives the same portion of
the assets or earning power so transferred or if the Person receiving the greatest portion
of the assets or earning power cannot be determined, whichever of such Persons is the issuer
of Common Stock having the greatest aggregate market value of shares outstanding;

provided, however, that in any such case described in the foregoing clause (b)(i)
or (b)(ii), if the Common Stock of such Person is not at such time or has not been continuously
over the preceding 12-month period registered under Section 12 of the Exchange Act, then (1) if
such Person is a direct or indirect Subsidiary of another Person the Common Stock of which is and
has been so registered, the term “Principal Party” shall refer to such other Person, or (2) if such
Person is a Subsidiary, directly or indirectly, of more than one Person, and the Common Stock of
all of such persons have been so registered, the term “Principal Party” shall refer to whichever of
such Persons is the issuer of Common Stock having the greatest aggregate market value of shares
outstanding, or (3) if such Person is owned, directly or indirectly, by a joint venture formed by
two or more Persons that are not owned, directly or indirectly, by the same Person, the rules set
forth in clauses (1) and (2) above shall apply to each of the owners having an interest in the

-20-

 

venture as if the Person owned by the joint venture was a Subsidiary of both or all of such joint
venturers, and the Principal Party in each such case shall bear the obligations set forth in this
Section 13 in the same ratio as its interest in such Person bears to the total of such interests.

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

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

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

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

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

          (d) In case the Principal Party has a provision in any of its authorized securities or in its
certificate of incorporation or by-laws or other instrument governing its affairs, which provision
would have the effect of (i) causing such Principal Party to issue (other than to holders of Rights
pursuant to this Section 13), in connection with, or as a consequence of, the consummation of a
transaction referred to in this Section 13, shares of Common Stock or Common Stock equivalents of
such Principal Party at less than the then-current market price per share thereof (determined
pursuant to Section 11(d) hereof) or securities exercisable for, or convertible into, Common Stock
or Common Stock equivalents of such Principal Party at less than such then-current market price, or
(ii) providing for any special payment, tax or similar

-21-

 

provision in connection with the issuance of
the Common Stock of such Principal Party pursuant to the provisions of Section 13, then, in such
event, the Company hereby agrees with each holder of Rights that it shall not consummate any such
transaction unless prior thereto the Company and such Principal Party shall have executed and
delivered to the Rights Agent a supplemental agreement providing that the provision in question of
such Principal Party shall have been canceled, waived or amended, or that the authorized securities
shall be redeemed, so that the applicable provision will have no effect in connection with, or as a
consequence of, the consummation of the proposed transaction.

          (e) The Company covenants and agrees that it shall not, at any time after a Person first
becomes an Acquiring Person enter into any transaction of the type contemplated by Sections
13(a)(i)-(iii) hereof if (x) at the time of or immediately after such consolidation, merger, sale,
transfer or other transaction there are any rights, warrants or other instruments or securities
outstanding or agreements in effect which would substantially diminish or otherwise eliminate the
benefits intended to be afforded by the Rights, (y) prior to, simultaneously with or immediately
after such consolidation, merger, sale, transfer or other transaction, the stockholders of the
Person who constitutes, or would constitute, the Principal Party for purposes of Section 13(b)
hereof shall have received a distribution of Rights previously owned by such Person or any
of its Affiliates or Associates or (z) the form or nature of organization of the Principal
Party would preclude or limit the exercisability of the Rights.

          Section 14. Fractional Rights and Fractional Shares. (a) The Company shall not be
required to issue fractions of Rights (except prior to the Distribution Date in accordance with
Section 11(n) hereof) or to distribute Right Certificates which evidence fractional Rights. In
lieu of such fractional Rights, there shall be paid to the registered holders of the Right
Certificates with regard to which such fractional Rights would otherwise be issuable, an amount in
cash equal to the same fraction of the current market value of a whole Right. For the purposes of
this Section 14(a), the current market value of a whole Right shall be the closing price of the
Rights for the Trading Day immediately prior to the date on which such fractional Rights would have
been otherwise issuable. The closing price for any day shall be the last sale price, regular way,
or, in case no such sale takes place on such day, the average of the closing bid and asked prices,
regular way, in either case as reported by (w) the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the NYSE or, (x) if the Rights
are not listed or admitted to trading on the NYSE, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal national securities
exchange on which the Rights are listed or admitted to trading or, (y) if the Rights are not listed
or admitted to trading on any national securities exchange, the last quoted price or, if not so
quoted, the average of the high bid and low asked prices in the over-the-counter market, as
reported by Nasdaq or such other system then in use or, (z) if on any such date the Rights are not
quoted by any such organization, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in the Rights selected by the Board of Directors of the
Company. If on any such date no such market maker is making a market in the Rights, the fair value
of the Rights on such date as determined in good faith by the Board of Directors of the Company
shall be used.

          (b) The Company shall not be required to issue fractions of shares of Series B Preferred Stock
(other than fractions which are integral multiples of one one-thousandth of a

-22-

 

share of Series B
Preferred Stock) upon exercise of the Rights or to distribute certificates which evidence
fractional shares of Series B Preferred Stock (other than fractions which are integral multiples of
one one-thousandth of a share of Series B Preferred Stock). Interests in fractions of Series B
Preferred Stock in integral multiples of one one-thousandth of a share of Series B Preferred Stock
may, at the election of the Company, be evidenced by depositary receipts, pursuant to an
appropriate agreement between the Company and a depositary selected by it; provided, that
such agreement shall provide that the holders of such depositary receipts shall have all the
rights, privileges and preferences to which they are entitled as beneficial owners of the Series B
Preferred Stock represented by such depositary receipts. In lieu of fractional shares of Series B
Preferred Stock that are not integral multiples of one one-thousandth of a share of Series B
Preferred Stock, the Company shall pay to the registered holders of Right Certificates at the time
such Rights are exercised for shares of Series B Preferred Stock as herein provided an amount in
cash equal to the same fraction of the current market value of one share of Series B Preferred
Stock. For the purposes of this Section 14(b), the current market value of a share of Series B
Preferred Stock shall be the closing price of a share of Series B Preferred Stock (as determined
pursuant to Section 11(d)(ii) hereof) for the Trading Day immediately prior to the date of such
exercise.

          (c) The Company shall not be required to issue fractions of shares of Class A Common Stock or
to distribute certificates which evidence fractional shares of Class A Common Stock upon the
exercise or exchange of Rights. In lieu of such fractional shares of Class A Common Stock, the
Company shall pay to the registered holders of the Right Certificates at the time such Rights are
exercised or exchanged for shares of Class A Common Stock as herein provided an amount in cash
equal to the same fraction of the current market value of a whole share of Class A Common Stock (as
determined in accordance with Section 11(d)(i) hereof) for the Trading Day immediately prior to the
date of such exercise or exchange.

          (d) The holder of a Right by the acceptance of the Right expressly waives the right to receive
any fractional Rights or any fractional shares upon exercise or exchange of a Right (except as
provided above).

          Section 15. Rights of Action. All rights of action in respect of this Rights
Agreement, excepting the rights of action given to the Rights Agent under Section 18 hereof, are
vested in the respective registered holders of the Right Certificates (and, prior to the
Distribution Date, the registered holders of the outstanding Common Stock); and any registered
holder of any Right Certificate (or, prior to the Distribution Date, of the outstanding Common
Stock), without the consent of the Rights Agent or of the holder of any other Right Certificate
(or, prior to the Distribution Date, of the outstanding Common Stock), on such holder’s own behalf
and for such holder’s own benefit, may enforce, and may institute and maintain any suit, action or
proceeding against the Company to enforce, or otherwise act in respect of, such holder’s right to
exercise the Rights evidenced by such Right Certificate (or, prior to the Distribution Date, such
outstanding Common Stock) in the manner provided in such Right Certificate and in this Rights
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 Rights 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 Rights Agreement.

-23-

 

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

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

     (ii) after the Distribution Date, the Right Certificates are transferable only on the
registry books of the Rights Agent if surrendered at the office or agency of the Rights
Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of
transfer; and

     (iii) 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 Common Stock certificate) is
registered as the absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Right Certificates or the
Common Stock certificate made by anyone other than the Company or the Rights Agent) for
all purposes whatsoever, and neither the Company nor the Rights Agent, subject to Section
7(e) hereof, shall be affected by any notice to the contrary.

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

          Section 18. Concerning the Rights Agent. (a) The Company agrees to pay to the Rights
Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on
demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements
incurred in the administration and execution of this Rights 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 Rights Agreement,
including the costs and expenses of defending against any claim of liability arising therefrom,
directly or indirectly.

          (b) The Rights Agent shall be protected and shall incur no liability for, or in respect of any
action taken, suffered or omitted by it in connection with, its administration of this Rights
Agreement in reliance upon any Right Certificate or certificate for the Series B Preferred Stock or
Class A Common Stock or for other securities of the Company, instrument of

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assignment or transfer,
power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate,
statement, or other paper or document reasonably believed by it to be genuine and to be signed,
executed and, where necessary, verified or acknowledged, by the proper Person or Persons, or
otherwise upon the advice of counsel as set forth in Section 20 hereof.

          Section 19.
Merger or Consolidation or Change of Rights Agent. (a) Any corporation
into which the Rights Agent or any successor Rights Agent may be merged or with which it may be
consolidated, or any corporation resulting from any merger or consolidation to which the Rights
Agent or any successor Rights Agent shall be a party, or any corporation succeeding to the stock
transfer or corporate trust powers of the Rights Agent or any successor Rights Agent, shall be the
successor to the Rights Agent under this Rights Agreement without the execution or filing of any
paper or any further act on the part of any of the parties hereto; provided, that such
corporation would be eligible for appointment as a successor Rights Agent under the provisions of
Section 21 hereof. In case at the time such successor Rights Agent shall
succeed to the agency created by this Rights Agreement, any of the Right Certificates shall
have been countersigned but not delivered, such successor Rights Agent may adopt the
countersignature of the predecessor Rights Agent and deliver such Right Certificates so
countersigned; and in case at that time any of the Right Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Right Certificates either in the
name of the predecessor Rights Agent or in the name of such successor Rights Agent; and in all such
cases such Right Certificates shall have the full force provided in the Right Certificates and in
this Rights Agreement.

          (b) In case at any time the name of the Rights Agent shall be changed and at such time any of
the Right Certificates shall have been countersigned but not delivered the Rights Agent may adopt
the countersignature under its prior name and deliver Right Certificates so countersigned; and in
case at that time any of the Right Certificates shall not have been countersigned, the Rights Agent
may countersign such Right Certificates either in its prior name or in its changed name and in all
such cases such Right Certificates shall have the full force provided in the Right Certificates and
in this Rights Agreement.

          Section 20. Duties of Rights Agent. The Rights Agent undertakes the duties and
obligations imposed by this Rights Agreement upon the following terms and conditions, by all of
which the Company and the holders of Right Certificates, by their acceptance thereof, shall be
bound:

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

          (b) Whenever in the performance of its duties under this Rights Agreement the Rights Agent
shall deem it necessary or desirable that any fact or matter be proved or established by the
Company prior to taking or suffering any action hereunder, such fact or matter (unless other
evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively
proved and established by a certificate signed by any one of the Chief Executive

-25-

 

Officer,
President, any Vice President, the Treasurer or the Secretary of the Company (each, an
“Authorized Officer”) 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 Rights Agreement in reliance upon such certificate.

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

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

          (e) The Rights Agent shall not be under any responsibility in respect of the validity of this
Rights 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 Rights Agreement or in any Right Certificate; nor shall it
be responsible for any change in the exercisability of the Rights (including the Rights becoming
void pursuant to Section 11(a)(ii) hereof) or any adjustment in the terms of the Rights (including
the manner, method or amount thereof) provided for in Sections 3, 11, 13, 23 and 24, or the
ascertaining of the existence of facts that would require any such change or adjustment (except
with respect to the exercise of Rights evidenced by Right Certificates after receipt of a
certificate furnished pursuant to Section 12, describing such change or adjustment); 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 Series B Preferred Stock or other securities to be issued pursuant to
this Rights Agreement or any Right Certificate or as to whether any shares of Series B Preferred
Stock or other securities will, when issued, be validly authorized and issued, fully paid and
nonassessable.

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

          (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties hereunder from any person reasonably believed by the Rights Agent to
be one of the Authorized Officers, and to apply to such Authorized Officers for advice or
instructions in connection with its duties, and it shall not be liable for any action taken or
suffered by it in good faith in accordance with instructions of any such Authorized Officer or for
any delay in acting while waiting for those instructions. Any application by the Rights Agent for
written instructions from the Company may, at the option of the Rights Agent, set forth in writing
any action proposed to be taken or omitted by the Rights Agent under this Rights Agreement and the
date on and/or after which such action shall be taken or such omission shall be effective. The
Rights Agent shall not be liable for any action taken by, or omission of, the Rights Agent in
accordance with a proposal included in any such application on or after the date specified in such
application (which date shall not be less than five Business Days after the date

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any Authorized
Officer of the Company actually receives such application, unless any such Authorized Officer shall
have consented in writing to an earlier date) unless, prior to taking any such action (or the
effective date in the case of an omission), the Rights Agent shall have received written
instructions in response to such application specifying the action to be taken or omitted.

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

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

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

          Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent
may resign and be discharged from its duties under this Rights Agreement upon 30 days’ notice in
writing mailed to the Company and to each transfer agent of the Common Stock or the Series B
Preferred Stock by registered or certified mail, and, following the Distribution Date, to the
holders of the Right Certificates by first-class 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 resign automatically on the effective date of such termination; and any required
notice will be sent by the Company. The Company may remove the Rights Agent or any successor
Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent or successor Rights Agent,
as the case may be, and to each transfer agent of the Common Stock or the Series B Preferred Stock
by registered or certified mail, and, following the Distribution Date, to the holders of the Right
Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall
otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent.
If the Company shall fail to make such appointment within a period of 30 days after giving notice
of such removal or after it has been notified in writing of such resignation or incapacity by the
resigning or incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with
such notice, submit his Right Certificate for inspection by the Company), then the registered
holder of any Right Certificate may apply to any court of competent jurisdiction for the
appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or
by such a court, shall be (A) a corporation organized and

-27-

 

doing business under the laws of the
United States or any State thereof, which is authorized under such laws to exercise corporate trust
or stock transfer powers and is subject to supervision or examination by federal or state authority
and which has at the time of its appointment as Rights Agent a combined capital and surplus of at
least $50 million or (B) an affiliate of a corporation described in clause (A) of this sentence.
After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties
and responsibilities as if it had been originally named as Rights Agent without further act or
deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any
property at the time held by it hereunder, and execute and deliver any further assurance,
conveyance, act or deed necessary for the purpose. Not later than the effective date of any such
appointment the Company shall file notice thereof in writing with the predecessor Rights Agent and
each transfer agent of the Common Stock or the Series B Preferred Stock, and, following the
Distribution Date, mail a
notice thereof in writing to the registered holders of the Right Certificates. Failure to
give any notice provided for in this Section 21, however, or any defect therein, shall not affect
the legality or validity of the resignation or removal of the Rights Agent or the appointment of
the successor Rights Agent, as the case may be.

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

          Section 23.
Redemption. (a) The Board of Directors of the Company may, at any time
prior to such time as any Person first becomes an Acquiring Person, redeem all but not less than
all the then-outstanding Rights at a redemption price of $0.01 per 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 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.
The Company may, at its option, pay the Redemption Price in cash, shares of Class A Common Stock
(based on the current market price of the Class A Common Stock at the time of redemption as
determined pursuant to Section 11(d)(i) hereof) or any other form of consideration deemed
appropriate by the Board of Directors.

          (b) Immediately upon the action of the Board of Directors ordering the redemption of the
Rights pursuant to paragraph (a) of this Section 23 (or at such later time as the Board of
Directors may establish for the effectiveness of such redemption), and without any further action
and without any notice, the right to exercise the Rights will terminate and the only right
thereafter of the holders of Rights shall be to receive the Redemption Price. The Company

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shall
promptly give public notice of any such redemption; provided, however, that the
failure to give, or any defect in, any such notice shall not affect the validity of such
redemption. Within 10 days after such action of the Board of Directors ordering the redemption of
the Rights (or such later time as the Board of Directors may establish for the effectiveness of
such redemption), 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 Stock. Any notice which is mailed in the manner herein provided shall be deemed given,
whether or not the holder receives the notice. Each such notice of redemption shall state the
method by which the payment of the Redemption Price will be made.

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

          (b) Immediately upon the effectiveness of the action of the Board of Directors of the Company
ordering the exchange of any Rights pursuant to paragraph (a) of this Section 24 and without any
further action and without any notice, the right to exercise such Rights shall terminate and the
only right thereafter of a holder of such Rights shall be to receive that number of shares of Class
A Common Stock equal to the number of such Rights held by such holder multiplied by the Exchange
Ratio. The Company shall promptly give public notice of any such exchange; provided,
however, that the failure to give, or any defect in, such notice shall not affect the
validity of such exchange. The Company shall promptly mail a notice of any such exchange to all of
the holders of the Rights so exchanged at their last addresses as they appear upon the registry
books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be
deemed given, whether or not the holder receives the notice. Each such notice of exchange will
state the method by which the exchange of the shares of Class A Common Stock for Rights will be
effected and, in the event of any partial exchange, the number of Rights which will be exchanged.
Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights
which have become void pursuant to the provisions of Section 11(a)(ii) hereof) held by each holder
of Rights.

-29-

 

          (c) The Company may at its option substitute and, in the event that there shall not be
sufficient shares of Class A Common Stock issued but not outstanding or authorized but unissued
(and unreserved) to permit an exchange of Rights as contemplated in accordance with this Section
24, the Company shall substitute to the extent of such insufficiency, for each share of Class A
Common Stock that would otherwise be issuable upon exchange of a Right, a number of shares of
Series B Preferred Stock or fraction thereof (or equivalent preferred shares as such term is
defined in Section 11(b)) such that the current per share market price (determined pursuant to
Section 11(d) hereof) of one share of Series B Preferred Stock (or equivalent preferred share)
multiplied by such number or fraction is equal to the current per share market price of one share
of Class A Common Stock (determined pursuant to Section 11(d) hereof) as of the date of such
exchange.

          Section 25. Notice of Certain Events. (a) In case the Company shall at any time after
the earlier of the Distribution Date or the Stock Acquisition Date propose (i) to pay any dividend
payable in stock of any class to the holders of its Series B Preferred Stock or to make any other
distribution to the holders of its Series B Preferred Stock (other than a regular quarterly cash
dividend), (ii) to offer to the holders of its Series B Preferred Stock rights or warrants to
subscribe for or to purchase any additional shares of Series B Preferred Stock or shares of stock
of any class or any other securities, rights or options, (iii) to effect any reclassification of
its Series B Preferred Stock (other than a reclassification involving only the subdivision or
combination of outstanding Series B Preferred Stock), (iv) to effect the liquidation, dissolution
or winding up of the Company, or (v) to declare or pay any dividend on the Common Stock payable in
Common Stock or to effect a subdivision, combination or consolidation of the Common Stock (by
reclassification or otherwise than by payment of dividends in Common Stock), then, in each such
case, the Company shall give to each holder of a Right Certificate, in accordance with Section 26
hereof, a notice of such proposed action, which shall specify the record date for the purposes of
such stock dividend, or distribution or offering of rights or warrants, or the date on which such
liquidation, dissolution, reclassification, subdivision, combination, consolidation or winding up
is to take place and the date of participation therein by the holders of the Common Stock and/or
Series B Preferred Stock, if any such date is to be fixed, and such notice shall be so given in the
case of any action covered by clause (i) or (ii) above at least 10 days prior to the record date
for determining holders of the Series B Preferred Stock for purposes of such action, and in the
case of any such other action, at least 10 days prior to the date of the taking of such proposed
action or the date of participation therein by the holders of the Common Stock and/or Series B
Preferred Stock, whichever shall be the earlier.

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

          Section 26. Notices. Notices or demands authorized by this Rights 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

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mail,
postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as
follows:

Alpharma Inc.

440 U.S. Highway 22 East

Bridgewater, New Jersey 08807

Attention: General Counsel

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

Computershare Trust Company, N.A.

250 Royall Street

Canton, MA 02021

Attention: Client Services

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

          Section 27. Supplements and Amendments. Except as otherwise provided in this Section
27, for so long as the Rights are then redeemable, the Company may in its sole and absolute
discretion, and the Rights Agent shall if the Company so directs, supplement or amend any provision
of this Rights Agreement in any respect without the approval of any holders of the Rights. At any
time when the Rights are no longer redeemable, except as otherwise provided in this Section 27, the
Company may, and the Rights Agent shall, if the Company so directs, supplement or amend this Rights
Agreement without the approval of any holders of Rights in order to (i) cure any ambiguity, (ii)
correct or supplement any provision contained herein which may be defective or inconsistent with
any other provisions herein, (iii) shorten or lengthen any time period hereunder, or (iv) change or
supplement the provisions hereunder in any manner which the Company may deem necessary or
desirable; provided, however, that no such supplement or amendment shall adversely
affect the interests of the holders of Rights as such (other than an Acquiring Person or an
Affiliate or Associate of an Acquiring Person), and no such amendment may cause the Rights again to
become redeemable or cause this Rights Agreement again to become amendable other than in accordance
with this sentence. Notwithstanding anything contained in this Rights Agreement to the contrary,
no supplement or amendment shall be made which decreases the Redemption Price. Upon the delivery
of a certificate from an appropriate officer of the Company which states that the supplement or
amendment is in compliance with the terms of this Section 27, the Rights Agent shall execute such
supplement or amendment provided that any such supplement or amendment does not amend
Sections 18, 19, 20 or 21 hereof in a manner adverse to the Rights Agent.

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

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

          Section 30. Determinations and Actions by the Board of Directors. The Board of
Directors of the Company shall have the exclusive power and authority to administer this Rights
Agreement and to exercise the rights and powers specifically granted to the Board of Directors of
the Company or to the Company, or as may be necessary or advisable in the administration of this
Rights Agreement, including, without limitation, the right and power to (i) interpret the
provisions of this Rights Agreement and (ii) make all determinations deemed necessary or advisable
for the administration of this Rights Agreement (including, without limitation, a determination to
redeem or not redeem the Rights or to amend this Rights Agreement). All such actions,
calculations, interpretations and determinations (including, for purposes of clause (y) below, all
omissions with respect to the foregoing) that are done or made by the Board of Directors of the
Company in good faith, shall (x) be final, conclusive and binding on the Company, the Rights Agent,
the holders of the Rights, as such, and all other parties, and (y) not subject the Board of
Directors to any liability to the holders of the Rights.

          Section 31. Severability. If any term, provision, covenant or restriction of this
Rights Agreement or applicable to this Rights 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 Rights Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated; provided, however,
that notwithstanding anything in this Agreement to the contrary, if any such term, provision,
covenant or restriction is held by such court or authority to be invalid, void or unenforceable and
the Board of Directors of the Company determines in its good faith judgment that severing the
invalid language from this Rights Agreement would adversely affect the purpose or effect of this
Rights Agreement, the right of redemption set forth in Section 23 hereof shall be reinstated (with
prompt notice to the Rights Agent) and shall not expire until the close of business on the tenth
Business Day following the date of such determination by the Board of Directors. Without limiting
the foregoing, if any provision requiring a specific group of Directors of the Company to act is
held to by any court of competent jurisdiction or other authority to be invalid, void or
unenforceable, such determination shall then be made by the Board of Directors of the Company in
accordance with applicable law and the Company’s certificate of incorporation and bylaws (in each
case, as amended, restated or otherwise modified from time to time).

          Section 32. Governing Law. This Rights Agreement and each Right Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of Delaware

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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.

          Section 33. Counterparts. This Rights Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to be an original, and
all such counterparts shall together constitute but one and the same instrument.

          Section 34. Descriptive Headings. Descriptive headings of the several Sections of
this Rights Agreement are inserted for convenience only and shall not control or affect the meaning
or construction of any of the provisions hereof.

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

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

	 	 	 	 	 	 	 
	 	 	 	 	ALPHARMA INC.
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Attest:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	COMPUTERSHARE TRUST COMPANY, N.A.
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Attest:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Rights Agreement]

 

EXHIBIT A

FORM

OF

CERTIFICATE OF DESIGNATIONS

OF

SERIES B JUNIOR PARTICIPATING PREFERRED STOCK

OF

ALPHARMA INC.

(Pursuant to Section 151 of the

General Corporation Law of the State of Delaware) 

          Alpharma Inc., a corporation organized and existing under the General Corporation Law of the
State of Delaware (the “Company”), hereby certifies that the following resolution was duly
adopted by the Board of Directors of the Company as required by Section 151 of the General
Corporation Law of the State of Delaware on September 1, 2008:

          RESOLVED, that pursuant to the authority vested in the Board of Directors of the Company
(hereinafter being referred to as the “Board of Directors” or the “Board”) in
accordance with the provisions of the Company’s Amended and Restated Certificate of Incorporation,
as amended as of September 1, 2008 (hereinafter being referred to as the “Certificate of
Incorporation”), the Board of Directors hereby creates a series of preferred stock, par value
$1.00 per share, of the Company, to be designated the “Series B Junior Participating Preferred
Stock” and hereby adopts the resolution establishing the designations, number of shares,
preferences, voting powers and other rights and the restrictions and limitations thereof, of the
shares of such series as set forth below:

          Section 1. Designation and Amount. The shares of such series shall be designated as
“Series B Junior Participating Preferred Stock” (the “Series B Preferred Stock”) and the
number of shares constituting the Series B Preferred Stock shall be 100,000. 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 B 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 Company convertible into Series B Preferred Stock.

          Section 2. Dividends and Distributions

     (A) Subject to the rights of the holders of any shares of any series of preferred stock
of the Company (the “Preferred Stock”) (or any similar stock) ranking
prior and superior to the Series B Preferred Stock with respect to dividends, the
holders

A-1

 

of shares of Series B Preferred Stock, in preference to the holders of Class A
Common Stock, par value $.20 per share (the “Class A Common Stock”), and Class B
Common Stock, par value $.20 per share, of the Company (the “Class B Common Stock”
and together with the Class A Common Stock, the “Common Stock”) and of any other
stock of the Company ranking junior to the Series B 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 January, April,
July, and October in each year (each such date being referred to herein as a “Dividend
Payment Date”), commencing on the first Dividend Payment Date after the first issuance
of a share or fraction of a share of Series B Preferred Stock (the “Issue Date”), in
an amount per share (rounded to the nearest cent) equal to the greater of (a) $1 or (b)
subject to the provision for adjustment hereinafter set forth, 1,000 times the aggregate per
share amount of all cash dividends, and 1,000 times the aggregate per share amount (payable
in kind) of all non-cash dividends or other distributions other than a dividend payable in
shares of Common Stock, declared on the Common Stock since the immediately preceding
Dividend Payment Date or, with respect to the first Dividend Payment Date, since the first
issuance of any share or fraction of a share of Series B Preferred Stock. In the event the
Company shall at any time after the Issue Date declare and 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 B Preferred Stock were entitled immediately prior to such event under clause (b) of
the preceding sentence shall be adjusted by multiplying such amount by a fraction, the
numerator of which is the number of shares of Common Stock outstanding immediately after
such event and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

     (B) The Company shall declare a dividend or distribution on the Series B Preferred
Stock as provided in paragraph (A) of this Section immediately after it declares a dividend
or distribution on the Common Stock (other than a dividend payable in shares of Common
Stock); provided that, in the event no dividend or distribution shall have been
declared on the Common Stock during the period between any Dividend Payment Date and the
next subsequent Dividend Payment Date, a dividend of $1 per share on the Series B Preferred
Stock shall nevertheless be payable, when, as and if declared, on such subsequent Dividend
Payment Date.

     (C) Dividends shall begin to accrue and be cumulative, whether or not earned or
declared, on outstanding shares of Series B Preferred Stock from the 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 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 Dividend Payment Date or is a date after the record date for the determination
of holders of shares of Series B Preferred Stock entitled to receive a
quarterly dividend and before such Dividend Payment Date, in either of which events
such dividends shall begin to accrue and be cumulative from such Dividend Payment

A-2

 

Date.
Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of
Series B Preferred Stock in an amount less than the total amount of such dividends at the
time accrued and payable on such shares shall be allocated pro rata on a share-by-share
basis among all such shares at the time outstanding. The Board of Directors may fix a
record date for the determination of holders of shares of Series B 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 B Preferred Stock shall
have the following voting rights:

     (A) Subject to the provision for adjustment hereinafter set forth and except as
otherwise provided in the Certificate of Incorporation or required by law, each share of
Series B Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters upon
which the holders of the Common Stock of the Company are entitled to vote. In the event the
Company shall at any time after the Issue Date declare or pay any dividend on the Common
Stock payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or otherwise
than by payment of a dividend in shares of Common Stock) into a greater or lesser number of
shares of Common Stock, then in each such case the number of votes per share to which
holders of shares of Series B 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 Class A Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Class A Common Stock that were outstanding
immediately prior to such event.

     (B) Except as otherwise provided herein, in the Certificate of Incorporation or in any
other Certificate of Designations creating a series of Preferred Stock or any similar stock,
and except as otherwise required by law, the holders of shares of Series B Preferred Stock
and the holders of shares of Common Stock and any other capital stock of the Company having
general voting rights shall vote together as one class on all matters submitted to a vote of
stockholders of the Company.

     (C) Except as set forth herein, or as otherwise provided by law, holders of Series B
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.

     (D) If, at the time of any annual meeting of stockholders for the election of
directors, the equivalent of six quarterly dividends (whether or not consecutive) payable on
any share or shares of Series B Preferred Stock are in default, the number of directors
constituting the Board of Directors of the Company shall be increased by two. In addition to
voting together with the holders of Common Stock for the election of other directors of the
Company as provided in Section 3(b) of this Certificate of Designations, the holders
of record of the Series B Preferred Stock, voting separately as a class to the
exclusion of the holders of Common Stock shall be entitled at said meeting of stockholders
(and at each subsequent annual meeting of stockholders), unless all dividends in arrears on
the

A-3

 

Series B Preferred Stock have been paid or declared and set apart for payment prior
thereto, to vote for the election of two directors of the Company, the holders of any Series
B Preferred Stock being entitled to cast a number of votes per share of Series B Preferred
Stock as is specified in paragraph (A) of this Section 3. Each such additional director
shall serve until the next annual meeting of stockholders for the election of directors, or
until his successor shall be elected and shall qualify, or until his right to hold such
office terminates pursuant to the provisions of this Section 3(D). Until the default in
payments of all dividends which permitted the election of said directors shall cease to
exist, any director who shall have been so elected pursuant to the provisions of this
Section 3(D) may be removed at any time, without cause, only by the affirmative vote of the
holders of the shares of Series B Preferred Stock at the time entitled to cast a majority of
the votes entitled to be cast for the election of any such director at a special meeting of
such holders called for that purpose, and any vacancy thereby created may be filled by the
vote of such holders. If and when such default shall cease to exist, the holders of the
Series B Preferred Stock shall be divested of the foregoing special voting rights, subject
to revesting in the event of each and every subsequent like default in payments of
dividends. Upon the termination of the foregoing special voting rights, the terms of office
of all persons who may have been elected directors pursuant to said special voting rights
shall forthwith terminate, and the number of directors constituting the Board of Directors
shall be reduced by two. The voting rights granted by this Section 3(D) shall be in addition
to any other voting rights granted to the holders of the Series B Preferred Stock in this
Section 3.

          Section 4. Certain Restrictions.

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

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

A-4

 

and
upon dissolution, liquidation or winding up) to the Series B Preferred Stock or
rights, warrants or options to acquire such junior stock; or

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

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

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

          Section 6. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution
or winding up of the Company, no distribution shall be made (A) to the holders of the Common Stock
or of shares of any other stock of the Company ranking junior, upon liquidation, dissolution or
winding up, to the Series B Preferred Stock unless, prior thereto, the holders of shares of Series
B Preferred Stock shall have received $1,000 per share, plus an amount equal to accrued and unpaid
dividends and distributions thereon, whether or not earned or declared, to the date of such
payment, provided that the holders of shares of Series B Preferred Stock shall be entitled to
receive an aggregate amount per share, subject to the provision for adjustment hereinafter set
forth, equal to 1,000 times the aggregate amount to be distributed per share to holders of shares
of Common Stock, or (B) to the holders of shares of stock ranking on a parity upon liquidation,
dissolution or winding up with the Series B Preferred Stock, except distributions made ratably on
the Series B Preferred Stock and all such parity stock in proportion to the total amounts to which
the holders of all such shares are entitled upon such liquidation, dissolution or winding up. In
the event, however, that there are not sufficient assets available to permit payment in full of the
Series B Preferred Stock liquidation preference and the liquidation preferences of all other
classes and series of stock of the Company, if any, that rank on a parity
with the Series B Preferred Stock in respect thereof, then the assets available for such
distribution shall be distributed ratably to the holders of the Series B Preferred Stock and the
holders of such parity shares in the proportion to their respective liquidation preferences. In
the event the Company shall at any time after the Issue Date declare or pay any dividend on the
Common Stock payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than

A-5

 

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 B
Preferred Stock were entitled immediately prior to such event under the proviso in clause (A) of
the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of
which is the number of shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

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

          Section 7. Consolidation, Merger, etc. In case the Company shall enter into any
consolidation, merger, combination or other transaction in which the shares of Common Stock are
converted into, exchanged for or changed into other stock or securities, cash and/or any other
property, then in any such case each share of Series B Preferred Stock shall at the same time be
similarly converted into, exchanged for or changed into an amount per share (subject to the
provision for adjustment hereinafter set forth) equal to 1,000 times the aggregate amount of stock,
securities, cash and/or any other property (payable in kind), as the case may be, into which or for
which each share of Class A Common Stock is converted, exchanged or converted. In the event the
Company shall at any time after the Issue Date declare or pay any dividend on the Common Stock
payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend
in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the amount set forth in the preceding sentence with respect to the conversion, exchange
or change of shares of Series B Preferred Stock shall be adjusted by multiplying such amount by a
fraction, the numerator of which is the number of shares of Common Stock outstanding immediately
after such event and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

          Section 8. No Redemption. The shares of Series B Preferred Stock shall not be
redeemable from any holder.

          Section 9. Rank. The Series B Preferred Stock shall rank, with respect to the payment
of dividends and the distribution of assets upon liquidation, dissolution or winding up of the
Company, junior to all other series of Preferred Stock (other than the Company’s Series A Junior
Participating Preferred Stock, with respect to which the Series B Preferred Stock shall rank pari
passu) and senior to the Common Stock.

          Section 10. Amendment. If any proposed amendment to the Certificate of Incorporation
(including this Certificate of Designations) would alter, change or repeal any of the preferences,
powers or special rights given to the Series B Preferred Stock so as to affect the Series B
Preferred Stock adversely, then the holders of the Series B Preferred Stock shall be entitled to
vote separately as a class upon such amendment, and the affirmative vote of two-thirds of the
outstanding shares of the Series B Preferred Stock, voting separately as a class,

A-6

 

shall be
necessary for the adoption thereof, in addition to such other vote as may be required by the
General Corporation Law of the State of Delaware.

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

A-7

 

          IN WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the Company by
                     , [Title of Signatory] of the Company on                      , 2008.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	 
	 

	 	Title:	 	 

A-8

 

EXHIBIT B

FORM OF RIGHT CERTIFICATE

			
	 	 	 
	Certificate No. R- ___
	 	___Rights

NOT EXERCISABLE AFTER SEPTEMBER 1, 2009 OR EARLIER IF REDEMPTION OR EXCHANGE 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, AS SET FORTH
IN THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR
BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN
TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

Right Certificate

ALPHARMA INC.

          This certifies that                      or registered assigns, is the registered owner of the number
of Rights set forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Rights Agreement, dated as of September 1, 2008, as the same may
be amended from time to time (the “Rights Agreement”), between Alpharma Inc., a Delaware
corporation (the “Company”), and Computershare Trust Company, N.A. (the “Rights
Agent”), to purchase from the Company at any time after the Distribution Date (as such term is
defined in the Rights Agreement) and prior to 5:00 P.M., New York City time, on September 1, 2009
at the office or agency of the Rights Agent designated for such purpose, or of its successor as
Rights Agent, one one-thousandth of a fully paid non-assessable share of Series B Junior
Participating Preferred Stock, par value $1.00 per share (the “Series B Preferred Stock”),
of the Company, at a purchase price of $65.00 per one one-thousandth of a share of Series B
Preferred Stock (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 share of Series B Preferred
Stock which may be purchased upon exercise hereof) set forth above, and the Purchase Price set
forth above, are the number and Purchase Price as of September 1, 2008, based on the Series B
Preferred Stock as constituted at such date. As provided in the Rights Agreement, the Purchase
Price, the number of one one-thousandths of a share of Series B Preferred Stock (or other
securities or property) which may be purchased upon the exercise of the Rights and the number of
Rights evidenced by this Right Certificate are subject to modification and adjustment upon the
happening of certain events.

          This Right Certificate is subject to all of the terms, provisions and conditions of the Rights
Agreement, which terms, provisions and conditions are hereby incorporated herein by
reference and made a part hereof and to which Rights Agreement reference is hereby made for a

B-1

 

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. The Company will mail to
the holder of this Right Certificate a copy of the Rights Agreement without charge after receipt of
a written request therefor.

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

          Subject to the provisions of the Rights Agreement, 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 Series B Preferred Stock or shares of the Company’s
Class A Common Stock, par value $.20 per share.

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

          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 Series B Preferred Stock or of any other securities
of the Company which may at any time be issuable on the exercise or exchange hereof, nor shall
anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof,
as such, any of the rights of a stockholder of the Company or any right to vote for the election of
directors or upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in the Rights Agreement) or to receive dividends or
subscription rights, or otherwise, until the 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-2

 

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

	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	ALPHARMA INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Countersigned:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	COMPUTERSHARE TRUST	 	 	 	 	 	 	 	 
	COMPANY, N.A., as Rights Agent	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Authorized Signatory	 	 	 	 	 	 	 	 

B-3

 

Form of Reverse Side of Right Certificate

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder desires to transfer the Right Certificate)

          FOR VALUE RECEIVED                                          hereby sells, assigns and transfer
unto          
          
         
            

	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 
	 
	 	(Please print name and address of transferee)
	 	 
	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 

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

Dated: ______________, ____

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature
	 	 

Signature Guaranteed:

          Signatures must be guaranteed by a bank, trust company, broker, dealer or other eligible
institution participating in a recognized signature guarantee medallion program.

          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 sold, assigned
or transferred to, an Acquiring Person or an Affiliate or Associate thereof (as defined in the
Rights Agreement).

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature
	 	 

B-4

 

Form of Reverse Side of Right Certificate — continued

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to exercise

Rights represented by the Rights Certificate)

To the Rights Agent:

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

	 	 	 	 	 
	 

	 	 	 	 
	 	 	 
	(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 holder
	 	 
	 

	 	specified on Right Certificate)	 	 

Signature Guaranteed:

          Signatures must be guaranteed by a bank, trust company, broker, dealer or other eligible
institution participating in a recognized signature guarantee medallion program.

          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 sold, assigned
or transferred to, an Acquiring Person or an Affiliate or Associate thereof (as defined in the
Rights Agreement).

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature
	 	 

B-5

 

Form of Reverse Side of Right Certificate — continued

 

NOTICE

          The signature in the Form of Assignment or Form of Election to Purchase, as the case may be,
must conform to the name as written upon the face of this 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-6

 

EXHIBIT C

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

SUMMARY OF RIGHTS TO PURCHASE

Shares of Series B Junior Participating Preferred Stock

          On September 1, 2008, the Board of Directors of Alpharma Inc., a Delaware corporation (the
“Company”), declared a dividend of one preferred stock purchase right (a “Right”)
for each outstanding share of Class A Common Stock, par value $.20 per share, of the Company (the
“Class A Common Stock” and together with the Company’s Class B Common Stock, par value $.20
per share, the “Common Stock”). The dividend is payable on September 12, 2008, to the
stockholders of record as of the close of business on September 12, 2008 (the “Record
Date”). Each Right entitles the registered holder to purchase from the Company one
one-thousandth of a share of Series B Junior Participating Preferred Stock, par value $1.00 per
share (the “Series B Preferred Stock”), of the Company at a price of $65.00 per one
one-thousandth of a share of Series B Preferred Stock (as the same may be adjusted, the
“Purchase Price”). The description and terms of the Rights are set forth in a Rights
Agreement, dated as of September 1, 2008 (as the same may be amended from time to time, the
“Rights Agreement”), between the Company and Computershare Trust Company, N.A., as Rights
Agent (the “Rights Agent”).

          Until the close of business on the earlier of (i) the tenth day after the first date of a
public announcement that a person (other than an Exempted Entity (as defined below) or
Grandfathered Stockholder (as defined below)) or group of affiliated or associated persons (an
“Acquiring Person”) has acquired beneficial ownership of 15% or more of the shares of Class
A Common Stock then outstanding 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 or group of
affiliated persons becomes an Acquiring Person) after the date of commencement of, or the first
public announcement of an intention to commence, a tender offer or exchange offer the consummation
of which would result in the beneficial ownership by a person (other than an Exempted Entity) or
group of 15% or more of the shares of Class A Common Stock then outstanding (the earlier of such
dates being herein referred to as the “Distribution Date”), the Rights will be evidenced by
the shares of Common Stock represented by certificates for Common Stock outstanding as of the
Distribution Date, together with a copy of the summary of rights disseminated in connection with
the original dividend of Rights.

          “Exempted Entity” shall mean (1) the Company, (2) any Subsidiary (as defined below) of
the Company (in the case of subclauses (1) and (2) including, without limitation, in its fiduciary
capacity), (3) any employee benefit plan of the Company or of any Subsidiary of the Company and (4)
any entity or trustee holding Common Stock for or pursuant to the terms of any such plan or for the
purpose of funding any such plan or funding other employee benefits for employees of the Company or
of any Subsidiary of the Company.

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          “Grandfathered Stockholder” shall mean any person that would otherwise be deemed an
“Acquiring Person” upon the adoption of the Rights Agreement; provided, however,
that any Grandfathered Stockholder shall not be deemed an “Acquiring Person” for purposes of the
Rights Agreement only for so long as neither it nor any of its Affiliates or Associates acquire
beneficial ownership of any additional shares of outstanding Class A Common Stock after adoption of
the Rights Agreement (other than pursuant to a dividend or distribution paid or made by the Company
on the outstanding Class A Common Stock or pursuant to a split or subdivision of the outstanding
Class A Common Stock), and in the event that any Grandfathered Stockholder (or its Affiliates or
Associates) does so acquire beneficial ownership of additional shares of outstanding Class A Common
Stock, then such Person shall no longer be deemed a Grandfathered Stockholder and shall be deemed
an “Acquiring Person.”

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

          The Rights are not exercisable until the Distribution Date. The Rights will expire on
September 1, 2009 (the “Final Expiration Date”), unless the Final Expiration Date is
extended or unless the Rights are earlier redeemed or exchanged by the Company, in each case as
described below. The Rights Agreement is effective as of September 1, 2008.

          The Purchase Price payable, and the number of shares of Series B Preferred Stock or other
securities or property issuable, upon exercise of the Rights are subject to adjustment from time to
time to prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or
reclassification of, the Series B Preferred Stock, (ii) upon the grant to holders of the Series B
Preferred Stock of certain rights or warrants to subscribe for or purchase Series B Preferred Stock
at a price, or securities convertible into Series B Preferred Stock with a conversion price, less
than the then-current market price of the Series B Preferred Stock or (iii) upon the distribution
to holders of the Series B Preferred Stock of evidences of indebtedness or assets (excluding
regular periodic cash dividends or dividends payable in Series B Preferred Stock) or of
subscription rights or warrants (other than those referred to above).

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

          Shares of Series B Preferred Stock purchasable upon exercise of the Rights will not be
redeemable. Each share of Series B Preferred Stock will be entitled, when, as and if
declared, to a minimum preferential quarterly dividend payment of the greater of (a) $1 per
share

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and (b) an amount equal to 1,000 times the dividend declared per share of Common Stock. In
the event of liquidation, dissolution or winding up of the Company, the holders of the Series B
Preferred Stock will be entitled to a minimum preferential liquidation payment of $1,000 per share
(plus any accrued but unpaid dividends) but will be entitled to an aggregate 1,000 times the
payment made per share of Common Stock. Each share of Series B Preferred Stock will have 1,000
votes, voting together with the Common Stock. Finally, in the event of any merger, consolidation
or other transaction in which shares of Common Stock are converted or exchanged, each share of
Series B Preferred Stock will be entitled to receive 1,000 times the amount received per share of
Common Stock. These rights are protected by customary antidilution provisions.

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

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

          In the event that, after a person or group has become an Acquiring Person, the Company is
acquired in a merger or other business combination transaction or 50% or more of its consolidated
assets or earning power are sold, proper provision will be made so that each holder of a Right
(other than Rights beneficially owned by an Acquiring Person which will have become void) 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 person with whom the Company has engaged
in the foregoing transaction (or its parent), which number of shares at the time of such
transaction will have a market value of two times the Purchase Price.

          At any time after any person or group becomes an Acquiring Person and prior to the acquisition
by such person or group of 50% or more of the outstanding shares of Class A Common Stock or the
occurrence of an event described in the prior paragraph, the Board of Directors of the Company may
exchange the Rights (other than Rights owned by such person or group which will have become void),
in whole or in part, at an exchange ratio of one share of Class A Common Stock, or a fractional
share of Series B Preferred Stock (or of a share of a similar class or series of the Company’s
preferred stock having similar rights, preferences and privileges) of equivalent value, per Right
(subject to adjustment).

          With certain exceptions, no adjustment in the Purchase Price will be required until cumulative
adjustments require an adjustment of at least 1% in such Purchase Price. No fractional shares of
Series B Preferred Stock will be issued (other than fractions which are integral multiples of one
one-thousandth of a share of Series B Preferred Stock, which may, at the election of the Company,
be evidenced by depositary receipts) and in lieu thereof, an
adjustment in cash will be made based on the market price of the Series B Preferred Stock on
the last trading day prior to the date of exercise.

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          At any time prior to the time an Acquiring Person becomes such, the Board of Directors of the
Company may redeem the Rights in whole, but not in part, at a price of $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.

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

          Until a Right is exercised or exchanged, the holder thereof, as such, will have no rights as a
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 dated September ___, 2008. A copy of the Rights
Agreement is available free of charge from the Company. This summary description of the Rights
does not purport to be complete and is qualified in its entirety by reference to the Rights
Agreement, as the same may be amended from time to time, which is hereby incorporated herein by
reference.

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