Document:

EX-10.3

Exhibit 10.3

KEITHLEY INSTRUMENTS, INC.

2002 STOCK INCENTIVE PLAN

RESTRICTED UNIT AWARD AGREEMENT

This restricted unit award agreement (the “Agreement”) is made as of this      day of
     , 20     (the “Award Date”), between Keithley Instruments, Inc., an Ohio corporation (the
“Company”), and that key employee of the Company named at the bottom of this Agreement (“Key
Employee”). Subject to the terms, conditions and limitations set forth in this Agreement
(including, without limitation, the vesting provisions of paragraph 5 hereof), Key Employee hereby
is granted and awarded      restricted units, with each such unit representing the economic
value of a common share of the Company (the “Award”). When and whether Company common shares are
issued to or in respect of Key Employee (if any) as a result of this Award shall be determined
strictly in accordance with this Agreement, subject to the general provisions of the Plan.

All rights arising under or in connection with this Agreement shall expire on      ,
20     , or if earlier, such earlier date as is specified in this Agreement (the “Expiration Date”).
This Agreement (including any and all incorporated Exhibits hereto) is subject to the terms and
conditions of the Keithley Instruments, Inc. 2002 Stock Incentive Plan, as amended and then in
effect (the “Plan”). The Plan’s terms and conditions are incorporated herein by this reference.
Additional terms and conditions of this Agreement are as follows:

	 	1.	 	Issuance & Transfer of Common Shares and Other Amounts and Rights. In
the event the restricted units evidenced by this Award vest as provided in paragraph 5
hereof, then as soon as practicable thereafter the Company shall transfer and issue to
Key Employee (or such other person as may then be entitled hereunder) those Company
common shares that such units represent.

	 	2.	 	Tax, Withholding Matters. Any Key Employee or other person receiving
Company common shares in connection with the vesting of restricted units in accordance
with Paragraph 5 hereof shall provide for the satisfaction of all applicable federal,
state and local withholding taxes and assessments arising in respect of such issuance
and transfer of shares; the amount of such withholding taxes and assessments shall be
determined by the Company, acting in its sole discretion (the “Total Withholding”).
Upon request, the Company shall provide Key Employee with the information needed to
determine the Total Withholding. The Total Withholding shall be paid with cash or
check, or with a surrender of Company common shares having a fair market value on the
date of transfer equal to that portion of the Total Withholding for which payment in
cash or check is not made. The Committee may, in its sole discretion, specify other
methods for transferring Company common shares in satisfaction of Final Awards, but any
such specification shall only be made in writing.

	 	3.	 	Interests Not Transferable. Any and all Awards made hereunder shall not
be transferable or assignable, or capable of alienation or anticipation, by Key
Employee except as otherwise expressly permitted by the Plan. Likewise, except as
specifically provided in the Plan, Company common shares issued hereunder shall only be
issued to Key Employee or his personal representative (except in the event of Key
Employee’s death or disability, in which event otherwise-issuable Company common shares
owed to Key Employee at death or disability shall be issued only to or for Key
Employee’s estate (in the case of death) or to Key Employee’s legal representative (in
the case of disability)).

	 	4.	 	Units Carry No Dividend or Voting Rights. Awards made hereunder are at
all times subject to all restrictions contained in this Agreement and in the Plan. Key
Employee shall not have, or accrue, any shareholder rights as a result of being
credited with units hereunder in respect of an Award. The right to receive dividends,
and to vote or otherwise assert shareholders’ rights, shall only arise and accrue as
and when Company common shares are issued and transferred to Key Employee in accordance
with, and in satisfaction of, the Company’s obligations under the terms of the Plan and
this Agreement. Key Employee understands and acknowledges that the Committee, acting
in its sole discretion, may require Key Employee, or his successor, to represent and
warrant that he will comply with all applicable laws and regulations or confirm certain
factual matters, if requested by the Company’s legal counsel.

	 	5.	 	Vesting, Expiration and Termination Rules. The units awarded hereunder
will fully vest on the fourth (4th) anniversary of the Award Date, subject
to the provisions of Paragraph 7 hereof (the “Vesting Date”). Notwithstanding the
preceding sentence, in the event Key Employee’s employment by the Company terminates
(including any employment with Company subsidiaries and affiliates whose financial
results are reported on a consolidated basis with the Company) prior to the Vesting
Date, regardless of the reason(s) therefor, all Key Employee’s rights hereunder shall
terminate immediately and be extinguished, and thereafter shall have no value.

	 	6.	 	Coordination With Other Rules. None of the terms, conditions or
provisions in this Agreement shall be interpreted or applied to cause any common share
of the Company, issued in connection with this Agreement, not to be a fully paid and
non-assessable common share of the Company.

	 	7.	 	Forfeiture; Set Off & Recoupment. Notwithstanding any other provision
of this Agreement or the Plan, Key Employee’s rights hereunder with respect to the
Award evidenced hereby (whether or not then vested, and regardless of the number of
units, or Company common shares, represented thereby) shall immediately terminate, and
otherwise be subject to forfeiture, set off, reduction, and recoupment for and against
any claims the Company may have or asserts against Key Employee. Without limiting the
generality of the preceding sentence, any of the following actions by Key Employee,
taken while employed by the Company or within the three (3)-year period commencing with
the cessation of Key Employee’s Company employment, shall terminate immediately Key
Employee’s rights under this Agreement and under the Plan, and shall presumptively be
deemed to damage the Company in an amount at least equal to the value of the Company
common shares comprising this Award and thereafter be subject to set off, reduction and
recoupment by the Company:

	 	a)	 	Any direct or indirect disclosure or publication (or, during the three
(3)-year period commencing with the cessation of Key Employee’s Company
employment, any use) by Key Employee of any Company trade secret or confidential
information;

	 	b)	 	Any material violation by Key Employee of the terms of any written
agreement between Key Employee and the Company;

	 	c)	 	Any action by Key Employee, taken in direct or indirect competition
with the Company (including, without limitation, any solicitation or acceptance by
Key Employee of any employment, agency, consultation or affiliation agreement,
arrangement or understanding, involving any competitor of the Company, or any
subsidiary or affiliate thereof, determined as of the earlier of the date of such
action or the date of the cessation of Key Employee’s Company employment); or

	 	d)	 	Any attempt by Key Employee to induce any Company employee or any
consultant, agent or sub-agent under contract with the Company to terminate his or
her employment or other contractual relationship with the Company; and/or

In the event of any violation by Key Employee of any of subparagraphs (a), (b), (c) or
(d) hereof, the Award evidenced herby (whether or not then vested) shall immediately
terminate, be extinguished and forfeited, and have no further effect. In addition, with
respect to all units awarded hereunder, and with respect to any Company common shares
issued or expected to be issued in connection with this Award, Key Employee shall
promptly forfeit, relinquish and surrender to the Company all gains, profits, and income
Key Employee has realized from such Award, without regard to the form(s) such gains,
profits and income take(s). Any failure by the Company to assert its set off,
forfeiture and recoupment rights under this paragraph with respect to specific claims
against Key Employee shall not waive, or operate to waive, the Company’s right to later
assert its rights hereunder with respect to other or subsequent claims against Key
Employee.

	 	8.	 	Choice of Law; Consent to Jurisdiction. Key Employee hereby consents
and agrees that Ohio law controls the parties’ procedural and substantive rights and
obligations under this Agreement, and also consents and agrees to the jurisdiction of
the state court of general jurisdiction sitting in Cuyahoga County, Ohio, as the
exclusive forum for resolving all claims and issues arising under, out of, or in
respect of, this Agreement.

	 	9.	 	Severability; Survival of Certain Provisions. The unenforceability of
one (1) or more of the provisions in this Agreement shall not vitiate or render void or
unenforceable the remaining provisions of this Agreement; rather, such remaining
provisions will remain fully enforceable to the extent permitted by law.
Notwithstanding any contrary provision contained in the Plan or this Agreement, the
provisions of paragraph 8 hereof shall specifically survive the termination, lapse or
expiration of the Plan and/or this Agreement.

	 	10.	 	Definitions. Unless otherwise defined in this Agreement, capitalized
terms will have the same meanings given them in the Plan.

KEITHLEY INSTRUMENTS, INC.

	 	 	 
	DATE OF AWARD:      

	 	By:      
	 
	 	 
	
 
	 	Title: Chairman of the Board,

President and

Chief Executive Officer

ACCEPTANCE BY KEY EMPLOYEE

The undersigned has read and understood, and hereby accepts, the terms, conditions, and
obligations and restrictions imposed hereunder, as well as the terms, conditions and limitations
of the Plan to which this Agreement is subject and subordinate.

	 	 	 
	DATE:      

	 	     

Key EmployeeEX-10.1

KANSAS CITY SOUTHERN

and

UMB BANK, N.A., Rights Agent

RIGHTS AGREEMENT

Dated as of

September 29, 2005

1

KANSAS CITY SOUTHERN RIGHTS AGREEMENT

TABLE OF CONTENTS

PAGE

	 	 	 
	Exhibit A -

Exhibit B -

-

-

-

-

-

-

	 	Description of Series A Preferred Stock

Form of Rights Certificate

Form of Assignment

Certificate

Notice

Form of Election to Purchase

Certificate

Notice
	 
	 	 
	Exhibit C -

	 	Summary of Rights to Purchase Preferred Stock

2

RIGHTS AGREEMENT

This Agreement, dated as of September 29, 2005, between KANSAS CITY SOUTHERN, a Delaware
corporation (the “Company”), and UMB BANK, N.A., a national banking organization (the “Rights
Agent”).

W I T N E S S E T H

WHEREAS, the Board of Directors of the Company (the “Board of Directors”) has authorized and
declared a dividend of one Right (as defined herein) for each outstanding share of the common stock
(as defined herein), of the Company at the close of business on October 12, 2005 (the “Record
Date”) and has authorized the issuance of one Right (as such number may hereinafter be adjusted
pursuant to the provisions of Section 11 hereof) in respect of each share of Common Stock of the
Company issued (whether originally issued or delivered from the Company’s treasury) between the
Record Date and the earlier of the Distribution Date, the Expiration Date or the Final Expiration
Date (as such terms are hereinafter defined), each Right initially representing the right to
purchase, under certain circumstances, 1/1,000ths of a share of Preferred Stock (as defined
herein), upon the terms and subject to the conditions hereinafter set forth (the “Rights”);

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

Section 1. Certain Definitions.

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

(a) “Acquiring Person” shall mean any Person who, together with all Affiliates or Associates
of such Person, shall be the Beneficial Owner of a Substantial Block, whether or not such
Person continues to be the Beneficial Owner of a Substantial Block, but shall not include:
(i) the Company; (ii) any subsidiary of the Company; (iii) any employee benefit plan of the
Company or of any subsidiary of the Company, or any Person organized, appointed or
established by the Company or by any subsidiary of the Company for or pursuant to the terms
of any such plan; (iv) a Person who, together with all Affiliates and Associates of such
Person, would become an Acquiring Person solely as a result of a reduction of the number of
 shares of Common Stock of the Company outstanding, including repurchases of outstanding
 shares of Common Stock of the Company by the Company, which reduction increases the
percentage of outstanding shares of Common Stock of the Company beneficially owned by such
Person until such Person, Affiliate or Associate after becoming aware that such Person has
become the Beneficial Owner of a Substantial Block shall thereafter become the Beneficial
Owner of additional shares of Common Stock representing one percent (1%) or more of the
number of shares of Common Stock then outstanding. Notwithstanding the foregoing provisions
of this Section 1(a), no Person or Affiliate of any Person shall be or become an Acquiring
Person as a result of the acquisition of beneficial ownership by such Person or any
Affiliate of such Person, individually or as a group, of (i) shares of Common Stock issued
or issuable upon the conversion and exchange of the KCS Sub common stock, par value $0.01,
pursuant to Section 4.3 of the Amended and Restated Acquisition Agreement dated December 15,
2004, by and among the Company, KARA Sub, Inc., KCS Investment I, Ltd., KCS Acquisition
Subsidiary, Inc., Caymex Transportation, Inc., Grupo TMM, S.A., TMM Holdings, S.A. de C.V.,
TMM Multimodal, S.A. de C.V., and Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V.,
(the “Acquisition Agreement”); (ii) shares of Common Stock acquired pursuant to Section 7.13
(a) of the Acquisition Agreement; (iii) shares of Common Stock issued pursuant to Section 6
of the Consulting Agreement dated December 15, 2004, by and between the Company and Jose F.
Serrano International Business, S.A. de C.V.; (iv) shares of Common Stock issued upon the
conversion of the Indemnity Escrow Notes pursuant to Section 2(b) of the Indemnity Escrow
Agreement dated December 15, 2004, by and among the Company, KARA Sub, Inc., KCS Investment
I, Ltd., KCS Acquisition Subsidiary, Inc., Caymex Transportation, Inc., Grupo TMM, S.A., TMM
Multimodal, S.A. de C.V., and The Bank of Nova Scotia Trust Company of New York; or (v)
 shares of Common Stock acquired in compliance with the Stockholders’ Agreement dated
December 15, 2004, by and among the Company, Grupo TMM, S.A., TMM Holdings, S.A. de C.V.,
TMM Multimodal, S.A. de C.V. and the stockholders of Grupo TMM, S.A. who have executed the
Stockholders’ Agreement (“Stockholders’ Agreement”), including upon exercise of pre-emptive
rights as provided therein.

(b) “Adjusted Number of Shares” shall have the meaning given the term in Section 11(a)(iii)
of this Agreement.

(c) “Adjusted Purchase Price” shall have the meaning given the term in Section 11(a) (iii)
of this Agreement.

(d) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in
Rule 12b-2 of the Exchange Act.

(e) A Person shall be deemed the “Beneficial Owner” of and shall be deemed to “beneficially
own” any securities that:

(i) Such Person, or any of such Person’s Affiliates or Associates, beneficially
owns, directly or indirectly (as determined pursuant to Rule 13d-3 of the Exchange
Act);

(ii) Such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, 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 (whether or not in writing), or upon the exercise,
conversion or exchange of rights, warrants or options, or otherwise, (provided,
however, that a Person shall not be deemed the “Beneficial Owner” of, or to
beneficially own, securities tendered pursuant to a tender or exchange offer made by
such Person or any such Person’s Affiliates or Associates until such tendered
securities are accepted for purchase or exchange and securities issuable upon the
exercise of the Rights at any time prior to the occurrence of a Triggering Event);
or (B) the right to vote or dispose of pursuant to any agreement, arrangement or
understanding (whether or not in writing) provided, however, that a Person shall not
be deemed the Beneficial Owner or to beneficially own, any security under this
clause (B) if the agreement, arrangement or understanding to vote such security (1)
arises solely from a revocable proxy given in response to a public proxy or consent
solicitation made pursuant to, and in accordance with, 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) Are beneficially owned, directly or indirectly, by any other Person with which
such former 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 pursuant to a revocable proxy as described in
clause (B) of subparagraph (ii) of this paragraph (c)) or disposing of any
securities of the Company;

provided, however, that nothing in this paragraph (e) 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.

(f) “Capital Stock Equivalents” shall have the meaning given the term in Section 11(a)(iii)
of this Agreement.

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

(h) “Close of Business” on any given date shall mean 5:00 p.m., Kansas City, Missouri time,
on such date, provided, however, if such date is not a Business Day it shall
mean 5:00 p.m. on the next succeeding Business Day.

(i) “Common Stock” when used with reference to the Company shall mean the Common Stock,
$0.01 par value, of the Company as adjusted from time to time. “Common Stock” when used
with reference to any Person other than the Company shall mean the capital stock with the
greatest voting power of such Person or the equity securities or other equity interest
having power to control or direct the management of such Person.

(j) “Current Market Price” of the Common Stock shall have the meaning given the term in
Section 11(d)(i) of this Agreement.

(k) “Current Market Price” of the Preferred Stock shall have the meaning given the term in
Section 11(d)(ii) of this Agreement.

(l) “Distribution Date” shall have the meaning given the term in Section 3(a) of this
Agreement.

(m) “Exchange Act” shall mean the Securities Exchange Act of 1934 and the rules and
regulations promulgated thereunder, as amended and in effect on the date hereof.

(n) “Expiration Date” shall have the meaning given the term in Section 7(a) of this
Agreement.

(o) “Final Expiration Date” shall have the meaning given the term in Section 7(a) of this
Agreement.

(p) “Independent Director” shall mean any member of the Board of Directors of the Company,
while such person is a member of the Board, who is not an Acquiring Person, an Affiliate or
Associate of an Acquiring Person, or a representative or nominee of an Acquiring Person or
of any such Affiliate or Associate.

(q) “Permitted Offer” shall mean a tender or exchange offer that is for all outstanding
Common Stock of the Company at a price and on terms determined to be adequate prior to the
purchase of shares under such tender or exchange offer, by at least a majority of the
Independent Directors, taking into account all factors that such directors deem relevant
including, without limitation, prices that could reasonably be achieved if the Company or
its assets were sold on an orderly basis designed to realized maximum value and otherwise in
the best interests of the Company and its stockholders (other than the Person or any
Affiliate or Associate thereof for whose benefit the offer is being made).

(r) “Person” shall mean any individual, firm, corporation, partnership, joint venture,
association, trust or other entity.

(s) “Preferred Stock” shall mean the shares of Series A Preferred Stock, par value $1.00 per
share, of the Company having substantially the rights, powers and preferences set forth in
Article FOURTH of the Company’s Certificate of Incorporation, the relevant portion of which
is attached hereto as Exhibit A, and to the extent that there are not a sufficient number of
 shares of Series A 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 A Preferred Stock.

(t) “Principal Party” shall have the meaning given the term in Section 13(b) of this
Agreement.

(u) “Proration Factor” shall have the meaning given the term in Section 11(a)(iii) of this
Agreement.

(v) “Rights Certificates” shall have the meaning given the term in Section 3 of this
Agreement.

(w) “Share Acquisition Date” shall mean the close of business on the tenth calendar day
after the first date of public announcement (which, for purposes of this definition, shall
include, without limitation, a report filed or amended pursuant to Section 13(d) of the
Exchange Act) by the Company or an Acquiring Person that an Acquiring Person has become
such.

(x) “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules,
regulations, and forms promulgated thereunder, all as in effect on the date hereof.

(y) A “subsidiary” of any Person shall mean any Person of whom a majority of the voting
power of the voting equity securities or voting interests is owned or, directly or
indirectly, by such former Person, or which is otherwise controlled, directly or indirectly,
by such former Person.

(z) “Substantial Block” shall mean a number of shares of the Common Stock of the Company
that equals or exceeds 15 percent of the number of shares of the Common Stock of the Company
then outstanding; provided, however, that if the Board of Directors of the Company
shall declare any Person to be an Adverse Person, upon a determination that such Person,
alone or together with its Affiliates and Associates, has, at any time after the Record
Date, become the Beneficial Owner of an amount of Common Stock of the Company that the Board
of Directors determines to be substantial (which amount shall in no event be less than 10
percent of the shares of Common Stock of the Company then outstanding), and a determination
by at least a majority of the Independent Directors, after reasonable inquiry and
investigation, including consultation with such persons as such directors shall deem
appropriate, that (a) such Beneficial Ownership by such Person is intended to cause the
Company to repurchase the Common Stock beneficially owned by such Person or to cause
pressure on the Company to take action or enter into a transaction or series of transactions
intended to provide such Person with short-term financial gain under circumstances where the
Board of Directors determines that the best long-term interests of the Company and its
stockholders would not be served by taking such action or entering into such transactions or
series of transactions at that time or (b) such Beneficial Ownership is causing or
reasonably likely to cause a material adverse impact (including, but not limited to,
impairment of relationships with customers or impairment of the Company’s ability to
maintain its competitive position) on the business or prospects of the Company, then with
respect to such Adverse Person, “Substantial Block shall mean a number of shares of the
Common Stock of the Company that equals or exceeds 13 percent of the number of shares of
Common Stock of the Company then outstanding.

(aa) “Trading Days” shall have the meaning given the term in Section 11(d)(i) of this
Agreement.

(bb) “Triggering Event” shall mean any event described in Sections 11(a)(ii) or 13(a) of
this Agreement.

Section 2. Appointment of a 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.

Section 3. Certificates and Transfer of Rights.

(a) Common Stock Outstanding on the Record Date. Until the earlier of (unless extended by
the Board of Directors of the Company) (i) the Share Acquisition Date or (ii) the close of
business on the tenth calendar 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 of, or first public announcement of the intent of any Person (other
than the Company, any subsidiary of the Company, any employee benefit plan of the Company or
any Person organized, appointed or established by the Company or any subsidiary of the
Company for or pursuant to the terms of any such plan) to commence (which intention to
commence remains in effect for five business days after such announcement) a tender or
exchange offer if, upon consummation thereof, such Person would be an Acquiring Person
(including any such date that is after the date of this Agreement and prior to the issuance
of the Rights (the earlier of the dates in subsections (i) and (ii) hereof being herein
referred to as the “Distribution Date”)), the Rights will be evidenced (subject to the
provisions of paragraph (b) of this Section 3) by the certificates for Common Stock of the
Company (which certificates of such Common Stock of the Company shall be deemed also to be
Rights Certificates), and not by separate Rights Certificates, and the right to receive
Rights Certificates will be transferable only in connection with the transfer of such Common
Stock (including a transfer to the Company). With respect to certificates for the Common
Stock of the Company outstanding as of the Record Date, until the Distribution Date, the
Rights will be evidenced by such certificates for the Common Stock of the Company with or
without a Summary of Rights attached thereto and the registered holders of the Common Stock
of the Company shall also be the registered holders of the associated Rights. Until the
earlier of Distribution Date or Expiration Date, the surrender or transfer (including a
transfer to the Company) of any of the certificates for the Common Stock of the Company
outstanding on the Record Date shall also constitute the transfer of the Rights associated
with the Common Stock of the Company represented by such certificate. The Company will
include with its mailing, by third-class, postage prepaid mail, of its quarterly report to
Stockholders, if any, a copy of a Summary of Rights, in substantially the form attached
hereto as Exhibit C (the “Summary of Rights”). If such mailing has not occurred by the
expiration of 60 days after the expiration of the quarter in which this Agreement becomes
effective, the Company will promptly mail the Summary of Rights separately, by first-class,
postage prepaid mail, to each record holder of the Common Stock of the Company as of the
close of business on the Record Date, at the address of such holder shown on the records of
the Company.

(b) Distribution of Separate Rights Certificates. As soon as practicable after the
Distribution Date, the Rights Agent will send, by first-class, insured, postage prepaid
mail, to each record holder of the Common Stock of the Company as of the close of business
on the Distribution Date, at the address of such holder shown on the records of the Company,
a separate Rights Certificate in substantially the form of Exhibit B attached hereto
evidencing one Right for each share of the Common Stock of the Company so held, subject to
adjustment as provided herein. In the event that an adjustment in the number of Rights per
Common Share has been made pursuant to Section 11(p) hereof, at the time of distribution of
the Rights Certificate, the Company shall make the necessary and appropriate rounding
adjustments (in accordance with Section 14(a) hereof) so that Rights Certificates
representing only whole numbers of Rights are distributed and cash is paid in lieu of any
fractional Rights. As of and after the Distribution Date, the Rights will be evidenced
solely by such Rights Certificates.

(c) Issuance of Additional Shares of Common Stock and Rights. Rights shall be issued in
respect of all shares of Common Stock of the Company issued (whether originally issued or
delivered from the Company’s treasury) after the Record Date but prior to the earlier of the
Distribution Date or the Expiration Date. Certificates representing such shares of such
Common Stock shall be deemed to be impressed on, printed on, written on or have 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 Kansas
City Southern and UMB Bank, n.a. dated as of September 29, 2005, as
may be amended from time to time (the “Rights Agreement”), the terms
of which are hereby incorporated herein by reference and a copy of
which is on file at the principal executive offices of Kansas City
Southern. Under certain circumstances, as set forth in the Rights
Agreement, such Rights may be redeemed, may expire or may be
evidenced by separate certificates and will no longer be evidenced
by this certificate. Kansas City Southern will mail to the holder
of this certificate a copy of the Rights Agreement, as in effect on
the date of mailing, without charge within five business days after
receipt of a written request therefor. Under certain circumstances,
Rights issued to, or which are or were beneficially owned by,
Acquiring Persons or their Affiliates or Associates (as such terms
are defined in the Rights Agreement) and any subsequent holder of
such Rights may become null and void.

Until the earlier of the Distribution Date or the Expiration Date, the Rights associated with
the Common Stock of the Company represented by certificates containing the foregoing legend shall
be evidenced by such certificates alone, and the surrender for transfer of any of such certificates
shall also constitute the transfer of the Rights associated with the Common Stock represented by
such certificate.

(d) Purchase of Common Stock by the Company. In the event that the Company purchases or
acquires any of its Common Stock after the Record Date but prior to the Distribution Date,
the Company shall not be entitled to exercise any Rights associated with the Common Stock so
purchased or acquired. Upon reissuance of such Common Stock by the Company the Rights shall
again attach to such Common Stock as set forth in Section 3(c) of this Agreement.

(e) Restriction on Transfers to Acquiring Persons. Notwithstanding anything in this
Agreement to the contrary, no Right shall at any time be transferable or transferred, in one
transaction or in a series of related transactions (including a tender offer or exchange
offer), directly or indirectly (i) to any Person who is an Acquiring Person, (ii) to any
Person in connection with a transaction or series of related transactions in which such
Person becomes an Acquiring Person, (iii) to any Person who, as a result of such transfer,
would beneficially own 15 percent or more of the Rights, or (iv) to any Affiliate or
Associate of a Person referred to in any one or more of the foregoing clauses (i), (ii), or
(iii). Any purported or attempted transfer of a Right on or after the Record Date in
violation of the foregoing provisions (regardless whether such purported or attempted
transfer shall be recorded on any transfer ledger) shall be null and void as of the date of
the purported or attempted transfer without any further action on the part of the Company or
the Rights Agent, and any Right that has been the subject of any such purported or attempted
transfer shall for purposes of this Agreement and the Right Certificate be deemed to be held
beneficially by the Person who attempted to make such purported or attempted transfer and,
thereafter, shall continue to be exercisable by such Person or, in the case of a transfer
not prohibited by this Agreement, such Person’s transferee, for a like number of 1/1,000ths
of a Preferred Share (or other securities, cash or other assets, as the case may be)
pursuant to this Agreement. The Company may require (or cause the Rights Agent or any
transfer agent of the Company to require) any Person who submits a Right Certificate for
transfer on the registry books or to exercise the Rights represented thereby to establish to
the satisfaction of the Company, in its sole discretion, that such attempted transfer is not
in violation of the provisions of this Section 3(e). The Company and the Rights Agent shall
use all reasonable efforts to insure the provisions of this Section 3(e) are complied with,
but shall have no liability to any holder of a Right Certificate (other than as specifically
provided herein) or any other Person as a result of a failure to so insure.

Section 4. Form of Rights Certificates.

(a) Form of Certificate. The Rights Certificates (and the forms of election to purchase
 shares and of assignment to be printed on the reverse thereof) shall, subject to paragraph
(a) of Section 3 of this Agreement, be substantially the same as Exhibit B hereto and may
have such marks of identification or designation and such legends, summaries or endorsements
printed thereon as the Company may deem appropriate and as are not inconsistent with the
provisions of this Agreement, or as may be required to comply with any applicable law or
with any rule or regulation made pursuant thereto or with any rule or regulation of any
stock exchange on which the Rights may from time to time be listed, or to conform to usages.
Subject to the provisions of Section 11 and Section 22 hereof, the Rights Certificates,
whenever issued, shall be dated as of the Record Date, and on their face shall entitle the
holders thereof to purchase such number of 1/1,000ths of a share of Preferred Stock as shall
be set forth therein at the price per 1/1,000ths of a share of Preferred Stock set forth
therein (the “Purchase Price”), but the number of such shares and the Purchase Price shall
be subject to adjustment as provided herein.

(b) Notwithstanding any other provision of this Agreement, any Rights Certificate issued
pursuant to Section 3 or Section 22 hereof that represents Rights beneficially owned by (i)
an Acquiring Person or any Associate or Affiliate thereof, (ii) a transferee of an Acquiring
Person (or of any Associate or Affiliate of such Acquiring Person) who becomes a transferee
after the Acquiring Person became such, or (iii) a transferee of an Acquiring Person (or of
any such Associate or Affiliate of such Acquiring Person) who becomes a transferee prior to
or concurrently with the Acquiring Person becoming such, and receives such Rights pursuant
to either (A) a transfer (whether or not for consideration) from the Acquiring Person to
holders of equity interests in such Acquiring Person or to any Person with whom such
Acquiring Person has any continuing agreement, arrangement or understanding (whether or not
in writing) regarding the transferred Rights or (B) a transfer which the Board of Directors
of the Company has determined is part of a plan, arrangement or understanding that has a
primary purpose or effect avoidance of Section 7(e) hereof, any Rights Certificate issued at
any time to any nominee of such Acquiring Person, Associate or Affiliate, and any Rights
Certificate issued pursuant to Section 6 or Section 11 upon transfer, exchange, replacement
or adjustment of any other Rights Certificate referred to in this sentence, shall contain
the following legend:

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

The provisions of Section 7(e) of the Rights Agreement shall be operative whether or not the
foregoing legend is contained on any Rights Certificate.

Section 5. Countersignature and Registration.

(a) The Rights Certificates shall be executed on behalf of the Company in the same manner as
the Company then does for certificates for Common Stock of the Company. The Rights
Certificates shall be countersigned by the Rights Agent, either manually or by facsimile,
and shall not be valid for any purpose unless so countersigned. In case any officer of the
Company who shall have signed any of the Rights Certificates shall cease to be such officer
of the Company before countersignature by the Rights Agent and issuance and delivery by the
Company, such Rights Certificates, nevertheless, may be countersigned by the Rights Agent,
issued and delivered with the same force and effect as though the person who signed such
Rights Certificate had not ceased to be such officer of the Company; and any Rights
Certificate maybe signed on behalf of the Company by any person who, at the actual date of
the execution of such Rights Certificate, shall be a proper officer of the Company to sign
such Rights Certificate, although at the date of the execution of this 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 its
principal office or offices designated as the appropriate place for surrender of the Rights
Certificates upon exercise or transfer, books for registration and transfer of the Rights
Certificates issued hereunder. Such books shall show the names and addresses of the
respective holders of the Rights Certificates, the number of Rights evidenced on its face by
each of the Rights Certificates and the date of each of the Rights Certificates, and such
other information as the Rights Agent deems appropriate in the circumstances.

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

Subject to the provisions of Section 4(b), Section 7(e) and Section 14 hereof, at any time
after the close of business on the Distribution Date and at or prior to the close of business on
the Expiration Date, any Rights Certificates may be transferred, split up or combined with or
exchanged for any other Rights Certificates, entitling the registered holder to purchase a like
number of 1/1,000ths of a share of Preferred Stock (or following a Triggering Event, Common Stock,
other securities or other assets, as may be necessary) as the Rights Certificate or Rights
Certificates surrendered then entitled such holder (or former holder in the case of a transfer) to
purchase. Any registered holder desiring to transfer, split up, combine or exchange any Rights
Certificate shall make such request in writing delivered to the Rights Agent, and shall surrender
the Rights Certificate or Rights Certificates to be transferred, split up, combined or exchanged at
the principal office or offices of the Rights Agent designated for such purpose. Neither the
Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to the
transfer of any such surrendered Rights Certificate until the registered holder shall have
completed and signed the certificate contained in the form of assignment on the reverse side of
such Rights Certificate and shall have provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company
shall reasonably request. Thereupon the Rights Agent shall, subject to Section 4(b), Section 7(e)
and Section 14 hereof, countersign and deliver to the Person entitled thereto a Rights Certificate
or Rights Certificates, as the case may be, as so requested. The Company or the Rights Agent may
require payment of a sum sufficient to cover any tax or governmental charge that may be impose in
connection with any transfer, split up, combination or exchange of Rights Certificates.

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

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

(a) Subject to Section 7(e) hereof, the registered holder of any Rights Certificate may
exercise the Rights evidenced thereby (except as otherwise provided herein including,
without limitation, the restrictions on exercisability set forth in Sections 9(c),11(a)(iii)
and 23(a) hereof) in whole or in part at any time after the Distribution Date upon surrender
of the Rights Certificate, with the form of election to purchase on the reverse side thereof
duly completed and executed, to the Rights Agent at the principal office of the Rights Agent
or offices designated by the Rights Agent for such purposes, together with payment of the
aggregate Purchase Price for the total number of 1/1,000ths of a share of Preferred Stock
(or other securities or assets, as may be necessary and authorized) as to which such
surrendered Rights are exercised, at or prior to the close of business on the earlier of:
(i) October 11, 2010 (the “Final Expiration Date”); or (ii) the date on which the Rights are
redeemed as provided in Section 23; or (iii) the consummation of a transaction contemplated
by Section 13(d) hereof (such earlier date being herein referred to as the “Expiration
Date”).

(b) The Purchase Price for each 1/1,000ths of a share of Preferred Stock pursuant to the
exercise of a Right shall initially be $100.00, shall be subject to adjustment from time to
time as provided in Sections 11 and 13 hereof and shall be payable in accordance with
paragraph (c) below.

(c) Upon receipt of a Rights Certificate representing exercisable Rights with the form of
election to purchase and the Certificate duly completed and executed, payment of the
Purchase Price for the number of 1/1,000ths of a share of Preferred Stock (or other
securities or other assets, as the case may be) to be purchased and an amount equal to any
applicable transfer tax, the Rights Agent shall thereupon, subject to Section 20(k),
promptly:

(i) (A) requisition from any transfer agent of the Preferred Stock (or make
available, if the Rights Agent is the transfer agent for such Preferred Stock) a
certificate for the total number of 1/1,000ths of a share of the Preferred Stock to
be purchased, and the Company hereby irrevocably authorizes its transfer agent to
comply with all such requests, or (B) if the Company shall have elected to deposit
the total number of shares of Preferred Stock issuable upon exercise of the Rights
hereunder with a depositary agent, requisition from the depositary agent a
depositary receipt representing such number of 1/1,000ths of a share of Preferred
Stock as are to be purchased (in which case certificates for the shares of Preferred
Stock represented by such receipts shall be deposited by the transfer agent with the
depositary agent), and the Company hereby irrevocably authorizes such depositary
agent to comply with such request;

(ii) when appropriate, requisition from the Company the amount of cash, if any, to
be paid in lieu of issuance of fractional shares in accordance with Section 14;

(iii) after receipt of such certificate or depositary receipt, cause the same to be
delivered to or upon the order of the registered holder of such Rights Certificates,
registered in such name or names as may be designated by such holder; and

(iv) when appropriate, after receipt promptly deliver such cash, if any, to or upon
the order of the registered holder of such Rights Certificate.

The payment of the Purchase Price may be made: (i) in cash or by certified bank check or bank
draft payable to the order of the Company, (ii) by delivery of a certificate or certificates (with
appropriate stock powers executed in blank attached thereto) evidencing a number of shares of
Common Stock equal to the then Purchase Price divided by the current market price (as determined
pursuant to Section 11(d) hereof) per share of Common Stock on the Trading Date immediately
preceding the date of such exercise, or (iii) by a combination of (i) and (ii). In the event that
the Company is obligated to issue securities, distribute property or pay cash pursuant to Section
11 (a) (iii) hereof, the Company will make all arrangements necessary so that cash, property or
securities are available for issuance, distribution or payment by the Rights Agent, if and when
appropriate.

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

(e) Notwithstanding anything in this Agreement to the contrary, if there occurs the event
set forth in Section 11(a)(ii), then any Rights that are or were beneficially owned by: (i)
an Acquiring Person or any Associate or Affiliate of such Acquiring Person; (ii) any
subsequent holder of such Rights; (iii) a transferee of an Acquiring Person or of any
Associate or Affiliate thereof who becomes a transferee prior to or concurrently with the
Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer
(whether or not for consideration) from the Acquiring Person to holders of equity interests
in such Acquiring Person or to any Person with whom the Acquiring Person has any continuing
agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer
which a majority of the Independent Directors has determined is part of a plan, arrangement
or understanding which has as a primary purpose or effect the avoidance of this Section 7(e)
shall become or be (as the case may be) null and void with respect to the rights provided
under Section 11(a)(ii) without any further action, and shall not thereafter provide any
such holder with any rights whatsoever under this Agreement or otherwise. The Company shall
use all reasonable efforts to insure that the provisions of this Section 7(e) and Section
4(b) hereof are complied with, but shall have no liability to any holder of Rights
Certificates or other Person as a result of its failure to make any determinations with
respect to an Acquiring Person or its Affiliates, Associates or transferees thereof.

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

Section 8. Cancellation and Destruction of Rights Certificates.

All Rights Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall be delivered to the Rights Agent for cancellation and no Rights
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 Rights Certificate purchased
or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall
deliver all canceled Rights Certificates to the Company, or, at the written request of the Company,
destroy such canceled Rights Certificates, and in such latter case shall deliver a certificate of
destruction thereof to the Company.

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

The Company covenants and agrees that it will:

(a) Cause to be reserved and kept available out of its authorized and unissued shares of
Preferred Stock (and following the occurrence of a Triggering Event, out of its authorized
and unissued shares of Common Stock or its authorized and issued Common Stock held in its
treasury, other securities as provided herein or some combination thereof) the number of
 shares of Preferred Stock or other securities as provided herein or some combination of such
securities that will be sufficient to permit the exercise in full of all outstanding Rights
whenever issued.

(b) If the shares of Preferred Stock (and following the occurrence of a Triggering Event,
Common Stock and/or other securities) issuable upon the exercise of Rights are listed on any
national securities exchange, 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 on such
exchange upon official notice of issuance upon such exercise.

(c) Use its best efforts to: (i) file, as soon as practicable following the first occurrence
of the Distribution Date, a registration statement under the Securities Act with respect to
the securities purchasable upon exercise of the Rights on an appropriate form; (ii) cause
such registration statement to become effective as soon as practicable after such filing;
(iii) cause such registration statement to remain effective (with a prospectus at all times
meeting the requirements of the Securities Act) until the date of the expiration of the
Rights; (iv) to otherwise comply with all requirements of the Securities Act and the
Exchange Act applicable to the exercise of the Rights and issuance of the securities upon
such exercise; and (v) take promptly such action as may be appropriate under the blue sky or
securities laws of the States such laws of which would be applicable to the Rights and the
exercise thereof in order for the securities issuable upon exercise of the Rights to be
offered, sold and delivered in accordance with such laws. Notwithstanding any provision of
this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction
unless the requisite qualifications in such jurisdiction shall have been obtained and such
exercise shall be permitted under applicable law and a registration statement relating
thereto shall have been declared effective.

(d) Take all such action as may be necessary to ensure that all 1/1,000ths shares of the
Preferred Stock (and following the occurrence of a Triggering Event, the other securities as
permitted herein) delivered upon exercise of Rights shall, at the time of delivery of the
certificates for such shares (subject to payment of the Purchase Price), be duly and validly
authorized and issued and fully paid and non-assessable.

(e) 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 Rights Certificates or of any
certificates for a number of 1/1,000ths shares of the Preferred Stock (or other securities,
as the case may be) upon the exercise of Rights all costs and expenses incurred in
connection with the obligations set forth in this Section 9. The Company shall not,
however, be required: (i) to pay any transfer tax that may be payable in respect of any
transfer involved in the transfer or delivery of Rights Certificates or the issuance of
delivery of a number of certificates for whole or fractional shares of a Preferred Stock (or
other securities, as the case may be) in a name other than that of the registered holder of
the Rights Certificate evidencing Rights surrendered for exercise; or (ii) to issue or
deliver any certificates for whole or fractional shares of the Preferred Stock upon the
exercise of any Rights until any such tax shall have been paid (any such tax being payable
by the holder of such Rights Certificate at the time of surrender) or until it has been
established to the Company’s satisfaction that no such tax is due.

Section 10. Preferred Stock Record Date.

Each person in whose name any certificate for any whole or fractional shares of Preferred
Stock (or other securities, as the case may be) is issued upon the exercise of Rights shall for all
purposes be deemed to have become the holder of record of such shares of Preferred Stock (or other
securities, as the case may be) represented thereby, and such certificate shall be dated, the date
upon which the Rights Certificate evidencing such Rights was duly surrendered and payment of the
Purchase Price (and any applicable transfer taxes) was made; provided, however,
that if the date of such surrender and payment is a date upon which the Preferred Stock (or other
securities, as the case may be) transfer books of the Company are closed, such person shall be
deemed to have become the record holder of such shares on, and such certificates shall be dated,
the next succeeding business day on which such transfer books for such securities are open. Prior
to the exercise of the Rights evidenced thereby, the holder of a Rights Certificate shall not be
entitled to any rights as a stockholder of the Company with respect to shares for which the Rights
shall be exercisable, including, without limitation, the right to vote, to receive dividends or
other distributions or to exercise any preemptive rights, and shall not be entitled to receive any
notice of any proceedings of the Company except as provided herein.

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

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

(a) In the event that:

(i) Changes in the Preferred Stock. The Company shall at any time after the date of
this Agreement (A) declare a dividend on the Preferred Stock payable in shares of
the Preferred Stock, (B) subdivide the outstanding Preferred Stock, (C) combine the
outstanding Preferred Stock into a smaller number of shares or (D) issue any shares
of its capital stock in a reclassification of the Preferred Stock (including any
such reclassification in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation), except as otherwise provided in
this Section 11(a) and Section 7(e) hereof, then the Purchase Price in effect at the
time of the record date for such dividend or of the effective date of such
subdivision, combination or reclassification, and the number and kind of shares of
Preferred Stock (or other securities, as the case may be), issuable on such date,
shall be proportionately adjusted so that the holder of any Right exercised after
such time shall be entitled to receive, upon the payment of the Purchase Price then
in effect, the aggregate number (whether whole or fractional) and kind of securities
that if such Right had been exercised immediately prior to such date and at a time
when the Preferred Stock transfer books of the Company were open, such holder would
have owned upon such exercise and been entitled to receive by virtue of such
dividend, subdivision, combination or reclassification. If an event occurs that
would require an adjustment under both this Section 11(a)(i) and Section 11(a)(ii)
hereof, the adjustment provided for in this Section 11(a)(i) shall be in addition
to, and shall be made prior to any adjustment required pursuant to Section
11(a)(ii).

(ii) Determination of Shares of Preferred Stock. If any Person (other than the
Company, any subsidiary of the Company, any employee benefit plan of the Company or
any of its subsidiaries or any Person holding securities of the Company organized,
appointed or established by the Company or any of its subsidiaries for or pursuant
to the terms of any such plan), alone or together with its Affiliates and
Associates, shall become an Acquiring Person (except pursuant to a Permitted Offer),
then proper provisions shall be made so that each holder of a Right, except as
provided in Section 7(e) hereof, shall, for a period of 60 days after the effective
date of an appropriate registration statement filed pursuant to Section 9 hereof,
have a right to receive, upon exercise thereof at the then current Purchase Price in
accordance with the terms of this Agreement, such number of whole or fractional
 shares of Preferred Stock (or if the Board determines prior to the Distribution
Date, such number of shares of Common Stock of the Company in lieu of the Preferred
Stock) as shall equal the result obtained by multiplying the then current Purchase
Price by the then number of 1/1,000ths of a share of Preferred Stock (or such Common
Stock) for which a Right is exercisable immediately prior to the occurrence of such
Section 11(a)(ii) event then dividing that product (which, following such first
occurrence, shall thereafter be referred to as the Purchase Price for each Right and
for all other purposes of this Agreement) by 50 percent of the current market price
per one share of Preferred Stock (or Common Stock of the Company, as the case may
be) (determined pursuant to Section 11(d)) on the date of the first occurrence of
the event set forth in this subparagraph (ii) (such number of shares being referred
to as the “Adjustment Shares”).

(iii) Insufficient Preferred Stock. There shall not be sufficient treasury shares
or authorized but unissued and unreserved Preferred Stock (or Common Stock of the
Company as provided for in Section 11(a)(ii) hereof) to permit the exercise in full
of all the outstanding Rights in accordance with the foregoing subparagraph (ii) and
the Rights become so exercisable, notwithstanding any other provision of this
Agreement, to the extent necessary and permitted by applicable law, each Right shall
thereafter represent the right to receive, upon exercise thereof at the then current
Purchase Price in accordance with the terms of this Agreement: (A) shares (whether
whole or fractional) of Common Stock of the Company that may permissibly be issued;
(B) a number (whether whole or fractional) of other equity securities of the Company
(or in the discretion of the Board of Directors of the Company, debt) including, but
not limited to, whole or fractional shares of preferred stock of the Company other
than the Preferred Stock (such alternative securities of the Company being referred
to as “Capital Stock Equivalents”); or (C) some combination of (A), (B) and the
Preferred Stock, that, in the case of (A), (B) or (C), the Board of Directors of the
Company has determined to have the same aggregate current market value as determined
based upon advice of a nationally recognized investment banking firm selected by the
Independent Directors and/or pursuant to Section 11(d)(i) and (ii) hereof, to the
extent applicable as the aggregate value of the Preferred Stock if there were
available for issuance sufficient shares of Preferred Stock; provided, however, if
there are unavailable sufficient Preferred Stock or Capital Stock Equivalents, then
the Company shall, to the extent permitted by applicable law, promptly take all such
action as may be necessary to authorize additional Preferred Stock or Capital Stock
Equivalents for issuance upon exercise of the Rights, including the calling of a
meeting of stockholders; and provided, further, that if the Company is unable to
cause sufficient Preferred Stock or Capital Stock Equivalents to be available for
issuance upon exercise in full of all of the outstanding Rights, then each Right
shall thereafter represent the right to receive the Adjusted Number of Shares upon
exercise of the Adjusted Purchase Price (as such terms are hereinafter defined). As
used herein, the term “Adjusted Number of Shares” shall be equal to that number of
whole or fractional shares of Preferred Stock (or Capital Stock Equivalents) equal
to the product of (A) the number of Adjustment Shares and (B) a fraction, the
numerator of which is the number of Shares of Preferred Stock (or Capital Stock
Equivalents) available for issuance upon exercise of the Rights and the denominator
of which is the aggregate number of Adjustment Shares otherwise issuable upon
exercise in full of all Rights (assuming there were a sufficient number of shares of
Preferred Stock (or Capital Stock Equivalents as the case may be) available) (such
fraction being referred to as the “Proration Factor”). The “Adjusted Purchase
Price” shall mean the product of the Purchase Price and the Proration Factor. The
Board of Directors may, but shall not be required to, establish procedures to
allocate the right to receive Shares of Preferred Stock and other Capital Stock
Equivalents upon exercise of the Rights among holders of Rights.

(b) Preferred Stock Rights or Warrants. In case the Company shall fix a record date for the
issuance of rights or warrants to all holders of Preferred Stock entitling them (for a
period expiring within 45 calendar days after such record date) to subscribe for or purchase
Preferred Stock (or Securities convertible into the Preferred Stock or similar preferred
stock) at a price per share of Preferred Stock (or having a conversion price per share of
Preferred Stock, if a security convertible into Preferred Stock) less than the current
market price per share of Preferred Stock (as defined in Section 11(d) hereof) on such
record date, then the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such record date
by a fraction the numerator of which shall be the number of shares of Preferred Stock
(whether whole or fractional) outstanding on such record date plus the number of shares of
Preferred Stock that the aggregate offering price of the total number of shares of Preferred
Stock and/or similar preferred stock so to be offered (and/or the aggregate initial
conversion price of the convertible securities so to be offered) would purchase at such
current market price and the denominator of which shall be the number of shares of Preferred
Stock (whether whole or fractional) outstanding on such record date plus the number of
additional shares of Preferred Stock (whether whole or fractional) and/or similar preferred
stock to be offered for subscription or purchase (or into which the convertible securities
so to be offered are initially convertible). In case such subscription price may be paid in
part or all in a form other than cash, then 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 shall be binding on the Rights
Agent and the Holders of the Rights. Shares of Preferred Stock (whether whole or
fractional) owned by or held for the account of the Company shall not be deemed outstanding
for the purpose of any such computation. Such adjustment shall be made successively
whenever such a record date is fixed, and in the event that such rights or warrants are not
so issued, the Purchased Price shall be adjusted to be the Purchase Price that would then be
in effect if such record date has not been fixed.

(c) Distributions on the Preferred Stock. In case the Company shall fix a record date for
the making of a distribution to all holders of Preferred Stock (including any such
distribution made in connection with a consolidation or merger in which the Company is the
continuing corporation) of evidences of indebtedness, assets (other than a regular periodic
cash dividend at a rate not in excess of 125 percent of the rate of the last cash dividend
theretofore paid out of the earnings or retained earnings of the Company or a dividend
payable in Preferred Stock (but including any dividend payable in stock other than Preferred
Stock), securities or subscription rights or warrants (excluding those referred to in
Section 11(b) hereof), then 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 current market price per share of
Preferred Stock (as defined in Section 11(d) hereof) on such record date, less the fair
market value (as determined in good faith by the Board of Directors, whose determination
shall be described in a statement filed with the Rights Agent and shall be binding on the
Rights Agent and the Holders of the Rights) of the portion of the assets, evidences of
indebtedness, securities, subscription rights or warrants so to be distributed and
applicable to one share of Preferred Stock and the denominator of which shall be such
current market price per share of Preferred Stock (as determined pursuant to Section 11(d)
hereof). 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 that would then be in effect if such record date had not
been fixed.

(d) Determination of Current Market Price. For the purpose of any computation hereunder:

(i) The “current market price” per share of Common Stock on any date shall be
deemed to be for purposes other than Section 11(a)(iii) hereof the average of the
daily closing prices per share of such Common Stock for the 30 consecutive Trading
Days (as such term is hereinafter defined) immediately prior to such date and for
purposes of Section 11(a)(iii) hereof, the average of the daily closing prices per
share of such Common Stock for the 10 consecutive Trading Days immediately prior to
that date; provided, however, that in the event that the current
market price per share of Common Stock is determined during the period following the
announcement by the issuer of such Common Stock of (A) a dividend or distribution on
such Common Stock payable in shares of such Common Stock or securities convertible
into shares of such Common Stock (other than the Rights), or (B) any subdivision,
combination or reclassification of such Common Stock, and the ex-dividend date for
such dividend or distribution, or the record date for such subdivision, combination
or reclassification, shall not have occurred prior to the commencement of the
requisite 30 or 10 Trading Day period, then, and in each such case, the current
market price shall be appropriately adjusted to reflect the current market price per
Common Stock equivalent. The closing price for each day shall be the last sale
price, regular way, or, in case no such sale takes place on such day, the average of
the closing bid and asked prices, regular way, in either case as reported in the
principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the principal national securities exchange on which
the shares of the Common Stock are listed or admitted to trading or, if the shares
of the Common Stock are not listed or admitted to trading on any national securities
exchange, the last sale price or, if not so reported, the average of the high bid
and low asked prices in the over-the-counter market, as reported by the National
Association of Securities Dealers, Inc. Automated Quotation System (the “NASDAQ
System”) or such other system then in use, or, if on any such date the shares of the
Common Stock are not quoted by such organization, the average of the closing bid and
asked prices as furnished by a professional market maker making a market in the
Common Stock selected by the Board of Directors of the Company. If on any such date
no market maker is making a market in the Common Stock, the fair value of such
Common Stock on such date shall be as determined in good faith by the Independent
Directors if the Independent Directors constitute a majority of the Board of
Directors, or in the event the Independent Directors do not constitute a majority of
the Board of Directors, by an independent investment banking firm selected by the
Board of Directors. The term “Trading Day” shall mean a day on which the principal
national securities exchange on which the shares of Common Stock are listed or
admitted for trading is open for the transaction of business or, if the shares of
the Common Stock are not listed or admitted for trading on any national securities
exchange, a Business Day on which securities were traded in the over-the-counter
market. If the Common Stock is not publicly held or not so listed or traded,
“current market price” per share shall mean the fair value per share as determined
in good faith by the Independent Directors if the Independent Directors constitute a
majority of the Board of Directors or in the event the Independent Directors do not
constitute a majority of the Board of Directors, by an independent investment
banking firm selected by the Board of Directors, whose determination shall be
described in a statement filed with the Rights Agent and shall be conclusive for all
purposes.

(ii) The “current market price” per share of Preferred Stock shall be determined
in the same manner as set forth above for the Common Stock in clause (i) of this
Section 11(d) (other than the last sentence thereof). If the current market price
per share of Preferred Stock cannot be determined in the manner provided above or
if the Preferred Stock is not publicly held or listed or traded in a manner
described in clause (i) of this Section 11(d), the “current market price” per
share of Preferred Stock shall be conclusively deemed to be an amount equal to
1,000 (as such number may be appropriately adjusted for such events as stock
splits, stock dividends and recapitalization with respect to the Common Stock
occurring after the date of this Agreement) multiplied by the current market price
per share of the Common Stock. If neither the Common Stock nor the Preferred
Stock is publicly held or so listed or traded, “current market price” per share of
the Preferred Stock shall mean the fair value per share as determined in good
faith by the Independent Directors, whose determination shall be described in a
statement filed with the Rights Agent and shall be conclusive for all purposes.
For all purposes of this Agreement, the “current market price” of 1/1,000ths of a
share of Preferred Stock shall be equal to the “current market price” of one share
of Preferred Stock divided by 1,000.

(e) Limitation on Adjustment on Purchase Price. Notwithstanding anything herein to the
contrary, no adjustment in the Purchase Price shall be required unless such adjustment would
require an increase or decrease of at least 1 percent in such price; provided,
however, that any adjustments that by reason of this Section 11(e) are not required
to be made shall be carried forward and taken into account in any subsequent adjustment.
All calculations under this Section 11 shall be made to the nearest cent or to the nearest
ten-thousandth of a share 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 mandates such adjustment
or (ii) the Expiration Date.

(f) If, as a result of an adjustment made pursuant to Section 11(a), the holder of any
Right thereafter exercised shall become entitled to receive any Capital Stock Equivalents
or other shares of capital stock of the Company other than shares of Preferred Stock,
thereafter the number of such other shares so receivable upon exercise of any Right and
the payment Purchase Price thereof shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with respect to
the Preferred Stock contained in Section 11(a) through (o), inclusive, and the provisions
of Sections 7, 9, 10, 13 and 14 with respect to the Preferred Stock shall apply on like
terms to any such other shares.

(g) All Rights originally issued by the Company subsequent to any adjustment made to the
Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase
Price, the number of 1/1,000ths of a share of Preferred Stock purchasable from time to
time hereunder upon exercise of the Rights, all subject to further adjustment as provided
herein.

(h) Unless the Company shall have exercised its election as provided in Section 11(i)
hereof, upon each adjustment of the Purchase Price as a result of the calculations made in
Sections 11 (b) and (c) hereof, each Right outstanding immediately prior to the making of
such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase
Price, that number of 1/1,000ths of a share of Preferred Stock (calculated to the nearest
ten-thousandth) obtained by (i) multiplying (x) the number of 1/1,000ths of a share
covered by a Right immediately prior to this 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.

(i) The Company may elect on or after the date of any adjustment of the Purchase Price to
adjust the number of Rights in lieu of any adjustment in the number of 1/1,000ths of a
share of Preferred Stock purchasable upon the exercise of a Right. Each of the Rights
outstanding, after such adjustment of the number of Rights, shall be exercisable for the
number of 1/1,000ths of a share of Preferred Stock for which a Right was exercisable
immediately prior to such adjustment. Each Right held of record prior to such adjustment
of the number of Rights shall become that number of Rights (calculated to the nearest
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 the
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 date thereafter, but, if the
Rights Certificates have been issued, shall be at least 10 Business Days later than the
date of the public announcement. If Rights Certificates have been issued, upon each
adjustment of the number of Rights pursuant to this Section 11(i), the Company shall, as
promptly as practicable, cause to be distributed to holders of record of Rights
Certificates on such record date Rights Certificates evidencing, subject to Section 14,
the additional Rights to which such holders shall be entitled as a result of such
adjustment, or, at the option of the Company, shall cause to be distributed to such
holders of record in substitution and replacement for the Rights Certificates held by such
holders prior to the date of adjustment, and upon surrender thereof, if required by the
Company, new Rights Certificates evidencing all the Rights to which such holders shall be
entitled after such adjustment. Rights Certificates so to be distributed shall be issued,
executed and countersigned in the manner provided for herein (and may bear, at the option
of the Company, the adjusted Purchase Price) and shall be registered in the names of the
holders of record of Rights Certificates on the record date specified in the public
announcement.

(j) Irrespective of any adjustment or change in the Purchase Price or the number of
1/1,000ths of a share of Preferred Stock issuable upon the exercise of the Rights, the
Rights Certificates theretofore and thereafter issued may continue to express the Purchase
Price per 1/1,000ths of a share and the number of 1/1,000ths of a share that were
expressed in the initial Rights Certificates issued hereunder and if so, shall not affect
in any way the adjustments or changes required under this Agreement.

(k) Before taking any action that would cause an adjustment reducing the Purchase Price
below the then stated value, if any, of the number of 1/1,000ths of a share of Preferred
Stock issuable upon exercise of the Rights, the Company shall take any corporate action
that may, in the opinion of its counsel, be necessary in order that the Company may
validly and legally issue fully paid and non-assessable such number of 1/1,000ths of a
share of such Preferred Stock 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 issuance to the holder of any Right
exercised after such record date the number of 1/1,000ths of a share of Preferred Stock
and Capital Stock Equivalents, if any, issuable upon such exercise over and above the
number of 1/1,000ths of a share of Preferred Stock and other capital stock or securities
of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in
effect prior to such adjustment; provided, however, that the Company shall deliver to such
holder a due bill or other appropriate instrument evidencing such holder’s right to
receive such additional shares (fractional or otherwise) or other securities 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 reductions in the Purchase Price, in addition to those adjustments
expressly required by this Section 11, as and to the extent that in their good faith
judgment the Board of Directors shall determine to be advisable in order that any (i)
consolidation or subdivision of Preferred Stock, (ii) issuance wholly for cash of any
 shares of Preferred Stock at less than the current market price, (iii) issuance wholly for
cash of shares of Preferred Stock or securities which by their terms are convertible into
or exchangeable for shares of Preferred Stock, (iv) stock dividends, or (v) issuance of
rights, options or warrants referred to hereinabove in this Section 11, hereafter made by
the Company to holders of its Preferred Stock shall not be taxable to such stockholders.

(n) The Company covenants and agrees that, after the Distribution Date, it will not,
except as permitted by Sections 23 or 26 hereof, take (nor will it permit any of its
subsidiaries to take) any action if at the time such action is taken it is reasonably
foreseeable that such action will diminish substantially or otherwise eliminate the
benefits intended to be afforded by the Rights.

(o) The Company covenants and agrees that it shall not, at any time after the Distribution
Date (other than in a transaction or series of transactions that comply with Section 11(n)
hereof): (i) consolidate with; (ii) merge with or into; or (iii) sell or transfer (or
permit any of its subsidiaries to sell or transfer), in one or more transactions, assets
or earning power aggregating more than 50 percent of the assets or earning power of the
Company and its subsidiaries (taken as a whole) to any other Person if at the time of or
immediately after such consolidation, merger or sale there are any rights, warrants, 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.

(p) Notwithstanding anything in this Agreement to the contrary, in the event that the
Company shall at any time after the Record Date and prior to the Distribution Date: (i)
declare a dividend on the outstanding shares of Common Stock of the Company payable in
 shares of Common Stock of the Company, (ii) subdivide the outstanding shares of Common
Stock of the Company, or (iii) combine the outstanding shares of Common Stock of the
Company into a smaller number of shares, then the number of Rights associated with each
share of Common Stock of the Company then outstanding, or issued or delivered thereafter
but prior to the Distribution Date, shall be proportionately adjusted so that the number
of Rights thereafter associated with each share of Common Stock of the Company following
any such event shall equal the result obtained by multiplying the number of Rights
associated with each share of Common Stock of the Company immediately prior to such event
by a fraction, the numerator of which shall be the total number of shares of Common Stock
of the Company outstanding immediately prior to the occurrence of the event and the
denominator of which shall be the total number of shares of Common Stock of the Company
outstanding immediately following the occurrence of such event.

(q) The exercise of Rights under Section 11(a)(ii) shall only result in the loss of rights
under Section 11(a)(ii) to the extent so exercised and shall not otherwise affect the
rights provided for under this Agreement, including the rights provided for by Section 13.

(r) Notwithstanding any other provision of this Agreement to the contrary, if the Company
determines that a registration statement filed pursuant to Section 9(c) hereof is required
to be amended or supplemented to continue to comply with the Securities Act, then the
Company may suspend the exercisability of the Rights and shall promptly after such
determination take all necessary steps to cause to be effective such amended or
supplemented registration statement. Immediately following such determination to amend or
supplement such registration statement, and immediately following the time such amended
or supplemented registration statement shall become effective, the Company shall publicly
announce the suspension of the exercisability of the Rights or the termination of such
suspension.

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

Whenever an adjustment is made as provided in Sections 11 and 13 hereof, the Company shall:
(a) promptly prepare a certificate setting forth such adjustment, and a brief statement of the
facts accounting for such adjustment; (b) promptly file with the Rights Agent and with each
transfer agent for the Preferred Stock and the Common Stock copy of such certificate; and (c) mail
a brief summary thereof to each holder of a Rights Certificate (or, if prior to the Distribution
Date, to each holder of a certificate representing Shares of Common Stock) in accordance with
Section 25 hereof. The Rights Agent shall be fully protected in relying on any such certificate
and on any adjustment therein contained.

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

(a) Effect on Rights. In the event that, following the Share Acquisition Date, directly or
indirectly: (x) the Company shall consolidate with, or merge with and into, any other
Person (other than a Subsidiary of the Company in a transaction that complies with Section
11(o) hereof) and the Company shall not be the surviving or continuing corporation of such
consolidation or merger; (y) any Person (other than a subsidiary of the Company in a
transaction that complies with Section 11(o) hereof) shall consolidate with, or merge with
or into, the Company, and the Company shall be the continuing or surviving corporation of
such consolidation or merger and, in connection with such consolidation or merger, all or
part of the outstanding Shares of Common Stock of the Company shall be changed into or
exchanged for stock or other securities of any other Person or cash or any other property;
or (z) the Company shall sell or otherwise transfer (or one or more of its subsidiaries
shall sell or otherwise transfer), in one transaction, or a series of related transactions,
assets or earning power aggregating more than 50 percent of the assets or earning power of
the Company and its subsidiaries (taken as a whole) to any other Person or Persons (other
than the Company or any subsidiary of the Company in one or more transactions each of which
complies with Section 11(o) hereof), then, and in each such case (except as may be
contemplated by Section 13(d) hereof), proper provision shall be made so that: (i) each
holder of a Right (except as provided in Section 7(e) hereof) shall thereafter be entitled
to receive, upon the exercise thereof at the then current Purchase Price in accordance with
the terms of this Agreement, such number of shares of validly authorized and issued, fully
paid, non-assessable and freely tradable Common Stock of the Principal Party (as hereinafter
defined), not subject to any liens, encumbrances, rights of call or first refusal, or other
adverse claims as shall be equal to the result obtained by (A) multiplying the then current
Purchase Price by the then number of 1/1,000ths of a share of Preferred Stock for which a
Right is then exercisable immediately prior to the first occurrence of any of the events
described in subsections (x), (y) or (z) of this paragraph (a) of Section 13 (each a
“Section 13 Event”) (or, if an event described in Section 11(a)(ii) (each a “Section 11 (a)
(ii) Event”) has occurred prior to the first occurrence of a Section 13 Event, multiplying
the number of such 1/1,000ths of a share for which a Right was exercisable immediately prior
to the first occurrence of a Section 11(a)(ii) Event) by the Purchase Price in effect
immediately prior to such first occurrence, and (B) dividing that product (which following
the first occurrence of a Section 13 Event, shall be referred to as the “Purchase Price” for
each Right and for all purposes of the Agreement) by 50 percent of the current market price
per share of the Common Stock of such Principal Party (determined in the manner described in
Section 11(d)(i) hereof) on the date of consummation of such Section 13 Event; (ii) the
Principal Party shall thereafter be liable for, and shall assume, by virtue of such Section
13 Event, all the obligations and duties of the Company pursuant to this Agreement; (iii)
the term “Company” shall thereafter be deemed to refer to such Principal Party, it being
specifically intended that the provisions of Section 11 hereof apply to such Principal Party
following the first occurrence of a Section 13 Event; and (iv) such Principal Party shall
take such steps (including, but not limited to, the authorization and reservation of a
sufficient number of shares of its Common Stock) in connection with the consummation of any
such transaction as may be necessary to assure that the provisions hereof shall thereafter
be applicable, as nearly as reasonably may be, in relation to the shares of its Common Stock
thereafter deliverable upon the exercise of the Rights.

(b) Definition of Principal Party. The term “Principal Party” shall mean:

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

(ii) in the case of any transaction described in subsection (z) of paragraph (a) of
this Section 13, the Person that is the party receiving the greatest portion of the
assets or earning power transferred pursuant to such transaction or transactions;

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

(c) Limitation on Consummation of Mergers. The Company shall not consummate any such
consolidation, merger, sale or transfer unless the Principal Party shall have a sufficient
number of authorized shares of its Common Stock that have not been issued or reserved for
issuance to permit the exercise in full of all of the Outstanding Rights in accordance with
this Section 13 and unless prior thereto the Company and such Principal Party shall have
executed and delivered to the Rights Agent a supplemental agreement providing for the terms
set forth in paragraphs (a) and (b) of this Section 13 and further providing that, as soon
as practicable after the date of any consolidation, merger or sale of assets mentioned in
paragraph (a) of this Section 13, the Principal Party will:

(i) prepare and file a registration statement under the Securities Act, with respect
to the Rights and the securities purchasable upon exercise of the Rights on an
appropriate form, and will use its best efforts to cause such registration statement
to (A) become effective as soon as practicable after such filing, (B) cause such
registration statement to remain effective (with a prospectus at all times meeting
the requirements of the Securities Act) until the date of expiration of the Rights,
(C) comply with all applicable State blue sky and other securities laws, and (D)
take all such other action necessary to enable the Principal Party to issue the
securities purchasable upon exercise of the Rights; and

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

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

(d) Permitted Offers. Notwithstanding anything in this Agreement to the contrary, Section
13 shall not be applicable to a transaction described in subsections (x) and (y) of
paragraph (a) of this Section 13 if: (i) such transaction is consummated with a Person or
Persons who acquired shares of Common Stock pursuant to a Permitted Offer (or a wholly owned
subsidiary of any such Person or Persons); (ii) the price per share of Common Stock of the
Company offered in such transaction is not less than the price per Common Share of the
Company paid to all holders of Common Stock of the Company whose shares were purchased
pursuant to such Permitted Offer; and (iii) the form of consideration being offered to the
remaining holders of Common Stock of the Company pursuant to such transaction is the same as
the form of consideration paid pursuant to such Permitted Offer. Upon consummation of such
transaction contemplated by this paragraph (d), all Rights hereunder shall expire.

Section 14. Fractional Rights and Fractional Shares.

(a) Issuance of Fractional Rights. The Company shall not be required to issue fractions
of Rights, except prior to the Distribution Date in accordance with Section 11(p) hereof,
or to distribute Rights Certificates that evidence fractional Rights. In lieu of such
fractional Rights, there shall be paid to the registered holders of the Rights
Certificates with regard to which such fractional Rights would otherwise be issuable, an
amount in cash equal to the same fraction of the current market value of 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 of the
Rights for any day shall be the last sale price, regular way, or, in case no such sale
takes place on such day, the average of the closing bid and asked prices, regular way, in
either case as reported in the principal consolidated transaction reporting system with
respect to securities listed on the principal national securities exchange on which the
Rights are listed or admitted to trading or, if the Rights are not listed or admitted to
trading on any national securities exchange, the last sale 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 the NASDAQ System or such other system then in use or, if on any such date the Rights
are not quoted by any such organization, the average of the closing bid and asked prices
as furnished by a professional market maker making a market in the Rights selected by the
Board of Directors. If on any such date no such market maker is making a market in the
Rights the fair value of the Rights on such date as determined in good faith by the
Independent Directors if such directors contribute a majority of the Board of Directors or
by an independent investment Banker selected by the Board of Directors.

(b) Issuance of Certain Fractional Shares of Preferred Stock. The Company shall not be
required to issue fractions of shares of Preferred Stock (other than fractions that are
integral multiples of 1/1,000ths of a share of Preferred Stock) upon exercise of the
Rights or to distribute certificates which evidence fractional shares (other than
fractions that are integral multiples of 1/1,000ths of a share of Preferred Stock). In
lieu of fractional shares that are not integral multiples of 1/1,000ths of a share of
Preferred Stock, the Company may pay to the registered holders of Rights Certificates at
the time such Rights are exercised as herein provided an amount in cash equal to the same
fraction of the current market value of 1/1,000ths of a share of Preferred Stock. For
purposes of this Section 14(b), the current market value of 1/1,000ths of a share of
Preferred Stock shall be 1/1,000ths of the closing price of a share of Preferred Stock (as
determined pursuant to Section 11(d)(ii)) for the Trading Day immediately prior to the
date of such exercise.

(c) Following the occurrence of a Triggering Event the Company shall not be required to
issue fractions of shares of its Common Stock upon exercise of the Rights or to distribute
certificates which evidence fractional shares of such Common Stock. In lieu of fractional
 shares of such Common Stock, the Company may pay to the registered holders of Rights
Certificates at the time such Rights are exercised as herein provided an amount in cash
equal to the same fraction of the current market value of one (1) share of a the Common
Stock of the Company. For purposes of this Section 14(c), the current market value of one
share of Common Stock shall be the closing price of one share of Common Stock (as
determined pursuant to Section 11(d)(i) hereof) for the Trading Day immediately prior to
the date of such exercise.

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

Section 15. Rights of Action.

All rights of action in respect of this Agreement are vested in the respective registered
holders of the Rights Certificates (and, prior to the Distribution Date, the registered holders of
the Common Stock); and any registered holder of any Rights Certificate (or, prior to the
Distribution Date, of the Common Stock), may, in his own behalf and for his own benefit, enforce,
and may institute and maintain any suit, action or proceeding against the Company to enforce, or
otherwise act in respect of, his right to exercise the Rights evidenced by such Rights Certificate
in the manner provided in such Rights Certificate and in this Agreement. Without limiting the
foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that
the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and
will be entitled to specific performance of the obligations under, and injunctive relief against
actual or threatened violations of, the obligations of any Person subject to this Agreement.

Section 16. Agreement of Right Holders.

Every holder of a Right by accepting the same consents and agrees with the Company and the
Rights Agents and with every other holder of a Right that:

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

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

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

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

Section 17. Rights Certificate Holder Not Deemed a Stockholder.

No holder, as such, of any Rights Certificate shall be entitled to vote, receive dividends or
be deemed for any purpose the holder of the number of whole or fractional shares of Preferred Stock
or any other securities of the Company which may at any time be issuable on the exercise of the
Rights represented thereby, nor shall anything contained herein or in any Rights Certificate be
construed to confer upon the holder of any Rights Certificate, 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 Section 24), or to receive dividends or subscription rights, or otherwise, until the
Right or Rights evidenced by such Rights Certificates shall have been exercised 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 Agreement and the exercise and performance of its duties hereunder.
The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against,
any loss, liability or expense incurred without gross negligence, bad faith or willful
misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent
in connection with the acceptance and administration of this Agreement, including the cost
and expenses of defending against any claim of liability in the premises and reasonable
counsel fees and expenses.

(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
Agreement in reliance upon any Rights Certificate or certificate for the Common Stock or for
other securities of the Company, instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, instruction, consent, certificate,
statement, or other paper or document believed by it to be genuine and to be signed,
executed and, where necessary, verified or acknowledged, by the proper Person or Persons.

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

Section 19. Merger or Consolidation or Change of Name 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 corporate trust, stock transfer or other stockholder
services business of the Rights Agent or any successor Rights Agent, shall be the successor
to the Rights Agent under this Agreement without the execution or filing of any paper or any
further act on the part of any of the parties hereto, provided, however, 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 Agreement, any of the Rights Certificates shall have
been countersigned but not delivered, any such successor Rights Agent may adopt the
countersignature of the predecessor Rights Agent and deliver such Rights Certificate so
countersigned; and in case at that time any of the Rights Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Rights Certificates either in
the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and
in all such cases such Rights Certificates shall have the full force provided in the Rights
Certificates and in this Agreement.

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

Section 20. Duties of Rights Agent.

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

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

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

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

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

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

(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 be reasonably required by the Rights Agent for the carrying out or
performing by the Rights Agent of the provisions of this Agreement.

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

(h) The Rights Agent and any 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 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 that reasonable care was exercised in the
selection and continued employment thereof.

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

(k) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise
or transfer, the certificate attached to the form of assignment or form of election to
purchase, as the case may be, has either not been completed or indicated an affirmative
response to clause 1 and/or 2 thereof, the Rights Agent shall not take any further action
with respect to such requested exercise of transfer without first consulting with the
Company and obtaining written instruction regarding the same.

Section 21. Change of Rights Agent.

The Rights Agent or any successor Rights Agent may resign and be discharged from its duties
under this Agreement and upon 30 days notice in writing mailed to the Company and to each transfer
agent of the Preferred Stock and the Common Stock by registered or certified mail, and, if such
resignation occurs after the Distribution Date, to the holders of the Rights Certificates by first
class mail. The Company may remove the Rights Agent or any successor Rights Agent upon 30 days’
notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to
each transfer agent of the Preferred Stock and the Common Stock by registered or certified mail,
and, if such removal occurs after the Distribution Date, to the holders of the Rights 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 Rights Agent. If the Company shall fail
to make such appointment within a period of thirty (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 Rights Certificate (who shall, with such notice,
submit his Rights Certificate for inspection by the Company), then the registered holder of any
Rights Certificate, or the resigning or removed Rights Agent, 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: (i) a legal business entity, existing and
doing business under the laws of the United States or of any state of the United States, in good
standing, which is authorized under such laws to exercise corporate trust 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 $100 million; or
(ii) an Affiliate of a corporation described in clause (i) 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 reasonably 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 Preferred Stock and the Common Stock, and if such appointment
occurs after the Distribution Date, mail a notice thereof in writing to the registered holders of
the Rights 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 Rights Certificates.

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

Section 23. Redemption and Termination.

(a) The Board of Directors may, at its option, at any time prior to the Close of Business,
on the earlier of (x) the Share Acquisition Date (or if the Share Acquisition Date shall
have occurred prior to the Record Date, the close of business on the tenth day following the
Record Date) or (y) the Final Expiration Date, redeem all but not less than all of the then
outstanding Rights at a redemption price of $0.0025 per Right as such amount may be
appropriately adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such redemption price being hereinafter referred to as the
“Redemption Price”), provided, however, that if, following the occurrence of
a Share Acquisition Date but prior to any event described in Section 13(a), either (x) in
connection with any event specified in Section 13(a) in which all holders of Common Stock
are treated alike and not involving (other than as a holder of Common Stock being treated
like all other such holders) an Acquiring Person or an Affiliate or Associate of an
Acquiring Person or any other person in which such Acquiring Person, Affiliate or such
Associate has any interest, or any other Person acting directly or indirectly on behalf of
or in association with any such Acquiring Person, Affiliate or Associate, or (y) following
the occurrence of an event set forth in, and the expiration of any period during which the
holders of Rights may exercise the Rights under, Section 11 (a) (ii) if each of the
following shall have occurred and remain in effect: (i) such Section 11 (a) (ii) event
shall be deemed inadvertent as determined by the Board of Directors in its discretion taking
into account all such factors as it deems relevant; (ii) a Person who is an Acquiring Person
shall have transferred or otherwise disposed of a number of shares of Common Stock in a
transaction, or series of transactions, which did not result in the occurrence of a
Triggering Event such that such Person is thereafter a Beneficial Owner of 10 percent or
less of the outstanding shares of Common Stock of the Company, (iii) there are no other
Persons, immediately following the occurrence of the event described in clause (ii) hereof,
who are Acquiring Persons, and (iv) the transfer or other disposition described in clause
(ii) hereof, above was other than pursuant to a transaction, or series of transactions,
which directly or indirectly involved the Company or any of its Subsidiaries, then the right
of redemption shall be reinstated and thereafter be subject to the provisions of this
Section 23.

(b) Immediately upon the action of the Board of Directors ordering the redemption of the
Rights, 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. Promptly after the action of the Board of Directors ordering
the redemption for the Rights, the Company shall file with the Rights Agent evidence of such
action by the Board of Directors and shall give notice of such redemption to the holders of
the then outstanding Rights by mailing such notice to each such holder at such holder’s last
addresses as it appears 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 of the
Company. Any notice which is mailed in the manner herein provided shall be deemed given,
whether or not the holder receives the notice. Each such notice of redemption will state
the method by which the payment of the Redemption Price will be made. Neither the Company
nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights
at any time in any manner other than that specifically set forth in this Section 23, and
other than in connection with the purchase of Common Stock of the Company prior to the
Distribution Date.

Section 24. Notice of Certain Events.

(a) In case the Company shall propose at any time following the Distribution Date: (i) to
pay any dividend payable in stock of any class to the holders of Preferred Stock or to
make any other distribution to the holders of Preferred Stock (other than a regular
periodic cash dividend at a rate not in excess of 125 percent of the rate of the last cash
dividend theretofore paid); (ii) to offer to the holders of Preferred Stock rights or
warrants to subscribe for or to purchase any additional shares of Preferred Stock or
 shares of stock of any class or any other securities, rights or options; (iii) to effect
any reclassification of Preferred Stock (other than a reclassification involving only the
subdivision of outstanding shares of Preferred Stock); (iv) to effect any consolidation or
merger into or with any other Person (other than a Subsidiary of the Company in a
transaction or transactions that comply with Section 11(o) hereof); (v) to effect any sale
or other transfer (or to permit one or more of its subsidiaries to effect any sale or
other transfer), in one or more transactions, of more than 50 percent of the assets or
earning power of the Company and its subsidiaries (taken as a whole) to, any other Person
(other than a Subsidiary of the Company in a transaction or transactions that comply with
Section 11(o) hereof); or (vi) to effect the liquidation, dissolution or winding up of the
Company, then, in each such case, the Company shall give to the Rights Agent and each
holder of a Rights Certificate, in accordance with Section 25, a notice of such proposed
action, which shall specify the record date for, and the purposes of, such stock dividend,
distribution of rights or warrants, or the date on which such reclassification,
consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take
place and the date of participation therein by the holders of the 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 twenty days prior to the record date for
determining holders of Preferred Stock for purposes of such action, and in the case of any
such other action, at least twenty days prior to the date of the taking of such proposed
action or the date of participation therein by the holders of the Preferred Stock,
whichever shall be earlier.

(b) In case any of the events set forth in Section 11(a)(ii) of this Agreement shall
occur, then, in any such case; (i) the Company shall, as soon as practicable thereafter,
give to the Rights Agent and each holder of a Rights Certificate, in accordance with
Section 25 and to the extent feasible, a notice of the occurrence of such event, which
shall specify the event and the consequences of the event to holders of Rights under
Section 11 (a) (ii); and (ii) all references in the preceding paragraph to Preferred Stock
shall be deemed to thereafter refer to Common Stock and/or other securities, as the case
may be.

Section 25. Notices.

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

Kansas City Southern

Attn.: Corporate Secretary

427 West 12th Street

Kansas City, Missouri 64105

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

UMB Bank, n.a., as Rights Agent

Attn: Corporate Trust Dept.

2401 Grand Blvd.

Kansas City, MO 64108

Notices or demands authorized by this Agreement to be given or made by the Company or the Rights
Agent to the holder of any Rights Certificate 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 26. Supplements and Amendments.

Prior to the Distribution Date and subject to the penultimate sentence of this Section 26, the
Company and the Rights Agent shall, if the Company so directs, supplement or amend any provision of
this Agreement without the approval of any holders of Rights Certificates. From and after the
Distribution Date and subject to the penultimate sentence of this Section 26, the Company and the
Rights Agent shall, if the Company so directs, supplement, amend, remove any provision of this
Agreement without approval of any holders of Rights in order: (i) to cure any ambiguity; (ii) to
correct or supplement any provision contained herein that may be defective or inconsistent with any
other provisions herein; (iii) to shorten or lengthen any time period hereunder (which lengthening
or shortening, following the first occurrence of an event set forth in clauses (i) and (ii) of the
first proviso to Section 23(a) hereof, shall be effective only if there are Independent Directors
and shall require the concurrence of a majority of such Independent Directors, or (iv) to change or
supplement the provisions hereunder in any manner which the Company may deem necessary or desirable
and which shall not adversely affect the interests of the holders of Rights Certificates (other
than an Acquiring Person or an Affiliate or Associate of an Acquiring Person); provided, this
Agreement may not be supplemented or amended to lengthen, pursuant to clause (iii) of this
sentence, (A) a time period relating to when the Rights may be redeemed at such time as the Rights
are not then redeemable, or (B) any other time period unless such lengthening is for the purpose of
protecting, enhancing or clarifying the rights of, and/or the benefits to, the holders of Rights.
Upon the delivery of a certificate from an appropriate officer of the Company that states that the
proposed supplement or amendment is in compliance with the terms of this Section 26, the Rights
Agent shall execute such supplement or amendment. Notwithstanding anything contained in this
Agreement to the Contrary, no supplement or amendment shall be made which changes the Redemption
Price, the Final Expiration Date, the Purchase Price or the number of 1/1,000ths of a share of
Preferred Stock for which a Right is exercisable. Prior to the Distribution Date, the interests of
the holders of Rights shall be deemed coincident with the interests of the holders of Common Stock
of the Company.

Section 27. Successors.

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

Section 28. Determination and Actions by the Board of Directors, etc.

For all purposes of this Agreement, any calculation of the number of shares of Common Stock of
the Company or any other class of capital stock of the Company outstanding at any particular time,
including for purposes of determining the particular percentage of such outstanding shares of
Common Stock of the Company of which any Person is the Beneficial Owner, shall be made in
accordance with the provisions of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under
the Exchange Act. The Board of Directors (and, where specifically provided for herein, the
Independent Directors) shall have the exclusive power and authority to administer this Agreement
and to exercise all rights and powers specifically granted to the Board of Directors, or the
Company (or, as expressly provided, the Independent Directors), or as may be necessary or advisable
in the administration of this Agreement, including, without limitation, the right and power to (i)
interpret the provisions of this Agreement, and (ii) make all determinations deemed necessary or
advisable for the administration of this Agreement (including a determination to redeem or not
redeem the Rights or to amend the Agreement). All such actions, calculations, interpretations and
determinations (including, for the purpose of clause (ii) below, all omissions with respect to the
foregoing) which are done or made by the Board of Directors (or, as provided for, by the
Independent Directors) in good faith, shall (i) be final, conclusive and binding on the Company,
the Rights Agent, the holders of the Rights Certificates and all other parties, and (ii) not
subject the Board of Directors or the Independent Directors to any liability to any holder of the
Rights Certificates.

Section 29. Benefits of this Agreement.

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

Section 30. Severability.

If any term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated; provided, however, that
notwithstanding anything in this Agreement to the contrary, 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 Agreement would adversely affect the purpose or effect of this Agreement, the
right of redemption set forth in Section 23 hereof shall be reinstated and shall not expire until
the close of business on the tenth day following the date of such determination by the Board of
Directors. Without limiting the foregoing, if any provision requiring the Independent Directors to
act is held 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 in accordance with
applicable law and the Company’s Certificate of Incorporation and By-Laws.

Section 31. Governing Law.

This Agreement, each Rights Certificate and each Right issued hereunder shall be deemed to be
a contract made under the laws of the State of Delaware and for all purposes shall be governed by
and construed in accordance with the laws of such State applicable to contracts to be made and
performed entirely within such State, except for Sections 18, 19, 20 and 21 hereof and relating to
the rights, duties and obligations of the Rights Agent, which shall be governed by the laws of the
State of Missouri without reference to its choice of law rules.

Section 32. Counterparts.

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

Section 33. Descriptive Headings.

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

IN WITNESS HEREOF, the parties hereto have caused this Agreement to be duly executed and their
respective corporate seals to be hereunto affixed and attested, all as of the day and year first
above written.

	 	 	 
	[SEAL]

Attest:

By

Name:      

Title: Corporate Secretary

	 	KANSAS CITY SOUTHERN

By

Name: Robert B. Terry

Title: Senior Vice President and

General Counsel
	
 
	 	 
	 
	 	 
	[SEAL]

Attest:

	 	

	By:

Name:

(please print)

Title:      

	 	UMB BANK, N.A., as Rights Agent

By

Name: K. Scott Mathews

Title: Vice President
	 

	 	 

3

EXHIBIT A

NEW SERIES PREFERRED STOCK, SERIES A

1. Designation and Amount. The shares of such series shall be designated as “Series A
Preferred Stock” and the number of shares initially constituting such series shall be 150,000
(which number may be increased or decreased by the Board of Directors without a vote of
Stockholders).

2. Dividends and Distributions.

(A) Subject to any prior and superior rights of the holders of any series of Preferred Stock
ranking prior and superior to the shares of Series A Preferred Stock with respect to dividends, the
holders of shares of Series A Preferred Stock shall be entitled prior to the payment of any
dividends on shares ranking junior to the Series A Preferred Stock to receive, when, as and if
declared by the Board of Directors out of funds legally available for the purpose, quarterly
dividends payable in cash on the last day of March, June, September and December in each year (each
such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first
Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of
Series A Preferred Stock, in an amount per share (rounded to the nearest cent) equal to the greater
of (a) $10.00 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, par value $0.01 per share, of the Corporation (the “Common Stock”) or a
subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared
on the Common Stock, par value $.01 per share, of the Corporation (the “Common Stock”) since the
immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly
Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A
Preferred Stock. In the event the Corporation shall at any time after October 12, 1995 (the
“Rights Declaration Date”) (i) declare any dividend on Common Stock payable in shares of Common
Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock
into a smaller number of shares, then in each such case the amount to which holders of shares of
Series A 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. Such adjustment shall be made successively whenever such a dividend or change
in the Common Stock is consummated.

(B) The Corporation shall declare a dividend or distribution on the Series A Preferred Stock
as provided in paragraph (A) above immediately after it declares a dividend or distribution on the
Common Stock (other than a dividend payable in shares of Common Stock); provided, that in
the event no dividend or distribution shall have been declared on the Common Stock during the
period between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend
Payment Date, a dividend of $10.00 per share on the Series A Preferred Stock shall nevertheless be
payable on such subsequent Quarterly Dividend Payment Date.

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

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

(A) Subject to the provision for adjustment hereinafter set forth, each 1/1,000th share of
Series A Preferred Stock shall entitle the holder thereof to one vote on all matters voted on at a
meeting of the stockholders of the Corporation. In the event the Corporation shall at any time
after the Rights Declaration Date (i) declare any dividend on Common Stock payable in shares of
Common Stock, or (u) subdivide the outstanding Common Stock, or (iii) combine the outstanding
Common Stock into a smaller number of shares, then in each such case the number of votes per share
to which holders of shares of Series A Preferred Stock were entitled immediately prior to such
event shall be adjusted by multiplying such number by a fraction the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding immediately prior to such
event. Such adjustment shall be made successively whenever such a dividend or change in the Common
Stock is consummated.

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

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

4. Certain Restrictions.

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

(i) declare or pay dividends on, make any other distributions on, or redeem or purchase or
otherwise acquire for consideration any shares of capital stock of the Corporation ranking junior
(either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred
Stock;

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

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

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

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

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

6. Liquidation Dissolution or Winding Up.

(A) In the event of any voluntary or involuntary liquidation, dissolution or winding up of the
Corporation, no distribution shall be made on any shares of capital stock of the Corporation that
rank junior (whether as to dividends or upon liquidation, dissolution or winding up) to Series A
Preferred unless prior thereto the holders of Series A Preferred Shares shall have received an
amount equal to 1,000 times the aggregate amount to be distributed per share to holders of the
common stock.

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

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

7. Merger; Consolidation, etc. In case the Corporation shall enter into any merger,
consolidation, combination or other transaction in which the shares of Common Stock are exchanged
for or changed into other stock or securities, cash and/or any other property, then in any such
case each share of Series A Preferred Stock shall at the same time be similarly exchanged or
changed in 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 other property (payable
in kind), as the case may be, into which or for which each share of Common Stock is changed or
exchanged. In the event the Corporation shall at any time after the Rights Declaration Date (i)
declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the
outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of
shares, then, in each such case, the amount set forth in the preceding sentence with respect to the
exchange or change of shares of Series A 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.

8. No Redemption. The Series A Preferred Stock shall not be redeemable.

9. Ranking. The Series A Preferred Stock shall rank on a parity with all other series
of the Corporation’s Preferred Stock as to the payment of dividends and other distribution of
assets, unless the terms of any such other series shall provide otherwise.

10. Amendment. The Certificate of Incorporation of the Corporation shall not be
further amended in any manner that would materially alter or change the powers, preferences,
rights, qualifications, limitations and restrictions of the Series A Preferred Stock so as to
affect them adversely without the affirmative vote of the holders of a majority or more of the
outstanding shares of Series A Preferred Stock, voting separately as a class.

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

4

EXHIBIT B

FORM OF RIGHTS CERTIFICATE

Certificate No. R-     Rights

NOT EXERCISABLE AFTER OCTOBER 11, 2010 OR EARLIER IF REDEEMED BY THE
COMPANY. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE
COMPANY, AT $.0025 PER RIGHT ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED
BY AN ACQUIRING PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) AND ANY
SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID. [THE
RIGHTS PRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY
OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN
ASSOCIATE OR AFFILIATE OF AN ACQUIRING PERSON (AS DEFINED IN THE
RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE
RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE
CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF THE RIGHTS
AGREEMENT.]*

RIGHTS CERTIFICATE

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 29, 2005 (the “Rights Agreement”) between Kansas City Southern, a Delaware corporation
(the “Company”), and UMB BANK, n.a., as Rights Agent (the “Rights Agent”), to purchase from the
Company at any time prior to 5:00 P.M. (Kansas City, Missouri time) on October 11, 2010 at the
principal office or offices of the Rights Agent designated for such purpose, or its successors as
Rights Agent, 1/1,000ths of a fully paid nonassessable share of the Series A Preferred Stock (the
“Preferred Stock”), of the Company, at a purchase price of $100 per 1/1,000ths of a share (the
“Purchase Price”), upon presentation and surrender of this Rights Certificate with the Form of
Election to Purchase and related Certificate duly executed and in proper form. The number of
Rights evidenced by this Rights Certificate (and the number of shares which may be purchased upon
exercise thereof) set forth above, and the Purchase Price per 1/1,000ths share set forth above, are
the number and Purchase Price as of      , 200_, based on the Preferred Stock of the
Company as constituted at such date.

Upon the occurrence of a transaction listed in Section 11(a)(ii) (a “Section 11(a)(ii)
Event”), if the Rights evidenced by this Rights Certificate are beneficially owned by (i) an
Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as such terms are
defined in the Rights Agreement), (ii) a transferee of any such Acquiring Person, Associate or
Affiliate, or (iii) under certain circumstances specified in the Rights Agreement, a transferee of
a person who after such transfer, became an Acquiring Person, or an Affiliate or Associate of an
Acquiring Person, such Rights shall become null and void and no holder hereof shall have any right
with respect to such Rights from and after the occurrence of such Section 11(a) (ii) Event.

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

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

This Rights Certificate, with or without other Rights Certificates, upon surrender at the
office or offices the Rights Agent designated for such purpose, may be exchanged for another Rights
Certificate or Rights Certificates of like tenor and date evidencing Rights entitling the holder to
purchase a like aggregate number of 1/1,000ths of a share of Preferred Stock as the Rights
evidenced by the Rights Certificate or Rights Certificates surrendered shall have entitled such
holder to purchase. If this Rights Certificate shall be exercised in part, the holder shall be
entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates for the
number of whole Rights not exercised.

Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate
may be redeemed by the Company at its options at a redemption price of $0.0025 per Right.

No fractional shares of Preferred Stock will be issued upon the exercise of any Right or
Rights evidenced hereby (other than fractions which are integral multiples of 1/1,000ths of a share
of Preferred Stock), but in lieu thereof a cash payment will be made, as provided in the Rights
Agreement.

No holder of this Rights Certificate shall be entitled to vote or receive dividends or be
deemed for any purpose the holder of Preferred Stock or of any other securities of the Company
which may at any time be issuable on the exercise hereof, nor shall anything contained in the
Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the
rights of a 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 action affecting stockholders (except
as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise,
until the Right or Right evidenced by this Rights Certificate shall have been exercised as provided
in the Rights Agreement.

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

WITNESS the facsimile signature of the proper officers of the Company and its corporate seal.
Dated as of this      day of      , 200_.

	 	 	 
	[SEAL]

	 	KANSAS CITY SOUTHERN
	 
	 	 
	
 
	 	By
	
 
	 	 

Title: President

ATTEST:

Title: Secretary

Countersigned:

UMB BANK, N.A., as Rights Agent

By

Authorized Signature

* The portion of the legend in brackets shall be
inserted only if applicable and shall replace the preceding sentence.

5

[Form of Reverse Side of Rights Certificate]

FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder desires to transfer the Rights
Certificates.)

FOR VALUE RECEIVED      hereby sells, assigns and transfers
unto      
     

(Please print name and address of transferee)

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

Dated:

Signature

Signature Guaranteed:

All Guarantees must be made by a financial institution (such as a bank or broker) which is a
participant in the Securities Transfer Agents Medallion Program (“STAMP”), the New York Stock
Exchange, Inc. Medallion Signature Program (“MSP”), or the Stock Exchanges Medallion Program
(“SEMP”) and must not be dated. Guarantees by a notary public are not acceptable.

CERTIFICATE

The undersigned hereby certifies by checking the appropriate boxes that:

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

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

Dated:

Signature

Signature Guaranteed:

All Guarantees must be made by a financial institution (such as a bank or broker) which is a
participant in the Securities Transfer Agents Medallion Program (“STAMP”), the New York Stock
Exchange, Inc. Medallion Signature Program (“MSP”), or the Stock Exchanges Medallion Program
(“SEMP”) and must not be dated. Guarantees by a notary public are not acceptable.

6

NOTICE

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

7

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires

to exercise Rights represented

by the Rights Certificate)

To:

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

Please insert social security

or other identifying number

(Please print name and address)

If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a new
Rights 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 Guaranteed:

All Guarantees must be made by a financial institution (such as a bank or broker) which is a
participant in the Securities Transfer Agents Medallion Program (“STAMP”), the New York Stock
Exchange, Inc. Medallion Signature Program (“MSP”), or the Stock Exchanges Medallion Program
(“SEMP”) and must not be dated. Guarantees by a notary public are not acceptable.

8

CERTIFICATE

The undersigned hereby certifies by checking the appropriate boxes that:

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

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

Dated:     , 200_

Signature

Signature Guaranteed:

All Guarantees must be made by a financial institution (such as a bank or broker) which is a
participant in the Securities Transfer Agents Medallion Program (“STAMP”), the New York Stock
Exchange, Inc. Medallion Signature Program (“MSP”), or the Stock Exchanges Medallion Program
(“SEMP”) and must not be dated. Guarantees by a notary public are not acceptable.

NOTICE

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

9

EXHIBIT C

DETAILED SUMMARY OF RIGHTS TO PURCHASE

SERIES A PREFERRED STOCK

On September 27, 2005, the Board of Directors (the “Board”) of Kansas City Southern (the
“Company”) declared a dividend distribution of one Right for each outstanding share of the
Company’s Common Stock, $0.01 par value per share (the “Common Stock”), to the stockholders of
record as of the close of business on October, 12, 2005 (the “Record Date”). Each Right entitles
the registered holder thereof to purchase from the Company 1/1,000ths of a share of Series A
Preferred Stock, par value 1.00 per share (the “Preferred Stock”) (or in some circumstances, Common
Stock, other securities, cash or other assets, as summarized below) at a price of $100.00 per share
(the “Purchase Price”), (both shares and price are subject to adjustment as described below). The
complete terms and conditions of the Rights are set forth in a Rights Agreement (the “Rights
Agreement”) between the Company and UMB Bank, n.a., as Rights Agent, dated as of September 29,
2005, as may be amended from time to time. Capitalized terms not defined herein are defined in the
Rights Agreement.

Initially, the Rights will be attached to all Common Stock certificates representing shares
then outstanding, and no separate Rights Certificates will be distributed. Subject to certain
exceptions specified in the Rights Agreement, the Rights will separate from the Common Stock and a
Distribution Date will occur upon the earlier of (i) ten (10) business days following a public
announcement that a person or group of affiliated or associated persons has acquired beneficial
ownership of fifteen percent (15%) or more of the then outstanding shares of Common Stock (or
thirteen percent (13%) in the case the Independent Directors determine such Person is an “Adverse
Person”) (each such person or group of affiliated or associated persons referred to herein and in
the Rights Agreement as an “Acquiring Person”), or (ii) ten (10) business days following the
commencement of a tender offer or exchange offer that would result in a person or group becoming an
Acquiring Person. Pursuant to exceptions set forth in the Rights Agreement, TMM, S.A. de C.V. and
certain of its affiliates and stockholders may acquire shares of Common Stock under certain
circumstances without becoming an “Acquiring Person.” As used herein and in the Rights Agreement,
an Independent Director means any member of the Board of Directors of the Company, while such
person is a member of the Board, who is not an Acquiring Person, an Affiliate or Associate of an
Acquiring Person, or a representative or nominee of an Acquiring Person or of any such Affiliate or
Associate.

Until the Distribution Date, (i) the Rights will be evidenced by the Common Stock certificates
and will be transferred with and only with such Common Stock certificates, (ii) new Common Stock
certificates issued after the Record Date will contain a notation incorporating the Rights
Agreement by reference and (iii) the surrender for transfer of any certificates for Common Stock
outstanding will also constitute the transfer of the Rights associated with the Common Stock
represented by such certificate.

As soon as practicable after the Distribution Date, Rights Certificates will be mailed to
holders of record of the Common Stock as of the close of business of the Distribution Date, and
thereafter the separate Rights Certificates alone will represent the Rights. Following the
Distribution Date, shares of Common Stock issued will be accompanied by Rights only in certain
instances.

The Rights are not exercisable until the Distribution Date and will expire at the close of
business on October 11, 2010, unless the Rights are earlier redeemed by the Company as described
below.

In the event that a Person becomes an Acquiring Person, except pursuant to a tender or
exchange offer for all outstanding shares of Common Stock which a majority of the Independent
Directors determines to be adequate and otherwise in the best interests of the Company’s
stockholders, taking into consideration all factors that such directors deem relevant (a “Permitted
Offer”), each holder of a Right will thereafter have the right to receive, upon exercise of the
Right at the then current Purchase Price, that number of shares of the Preferred Stock (or in
certain circumstances, Common Stock or assets or other securities of the Company) having a market
value of two times the Purchase Price. Notwithstanding the foregoing, following the occurrence of
the event set forth in this paragraph, all Rights that are or were beneficially owned by any
Acquiring Person or Adverse Person will be null and void.

For example, at a Purchase Price of $100, each Right not owned by an Acquiring Person or by an
Adverse Person following an event set forth in the preceding paragraph would entitle its holder to
purchase $200 worth of Preferred Stock (or other consideration, as noted above) for $100. Assuming
that the Common Stock has a current market value of $25, and the Preferred Stock has a current
market value of 1,000 times the current market value of the Common Stock, or $25,000, at such time,
the holder of each valid right would be entitled to purchase .008 shares of Preferred Stock, or the
equivalent of eight shares of Common Stock, for $100.

In the event that, at any time following the Share Acquisition Date, (i) the Company engages
in a merger or other business combination transaction in which the Company is not the surviving
corporation, (ii) the Company engages in a merger or other business combination transaction in
which the Company is the surviving corporation and the Common Stock of the Company is changed or
exchanged, or (iii) fifty percent (50%) or more of the Company’s assets, cash flow or earning power
is sold or transferred (in each case other than with an entity which acquired the shares pursuant
to a Permitted Offer), each holder of a Right shall thereafter have the right to receive, upon
exercise of the Right at the then current Purchase Price, that number of shares of the common stock
of the acquiring company (or certain of its affiliates) that at the time of such transaction would
have a market value of two times the exercise price of the Right. If the Rights are exercised to
acquire the Preferred Stock, then the Rights will not thereafter be exercisable to acquire the
securities of any Acquiring Person. The events set forth in this paragraph and in the second
preceding paragraph are referred to in the Rights Agreement as “Triggering Events.”

At any time until the Share Acquisition Date or the Final Expiration Date, the Company may
redeem the Rights in whole, but not in part, at a price of $0.0025 per Right (the “Redemption
Price”). Following the Share Acquisition Date, but prior to an event listed in Section 13(a) of
the Rights Agreement (i.e. a merger, consolidation or sale of more than 50 percent of the assets or
earnings power of the Company and its subsidiaries), the Company may redeem the Rights in
connection with any event specified in Section 13(a) in which all stockholders are treated alike
and which does not include the Acquiring Person or its Affiliates or Associates. In addition, the
Company’s right of redemption may be reinstated following an inadvertent trigger of the Rights (as
determined by the Board) if an Acquiring Person reduces its beneficial ownership to 10 percent or
less of the outstanding shares of Common Stock of the Company in a transaction or series of
transactions not involving the Company. Immediately upon the action of the Board electing to
redeem the Rights, the Company shall make announcement thereof, and upon such election, the right
to exercise the Rights will terminate and the only right of the holders of Rights will be to
receive the Redemption Price.

Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder
of the Company, including, without limitation, the right to vote or to receive dividends. While the
distribution of the Rights will not be taxable to stockholders or to the Company, stockholders may,
depending on the circumstances, recognize taxable income in the event that the Rights become
exercisable for the Preferred Stock (or other securities, as the case may be) of the Company or for
common stock of an acquiring company or in the event of the redemption of the Rights as set forth
above.

The Purchase Price payable, and the number of shares of Preferred Stock (or Common Stock,
other securities, cash or other assets, as the case may be) 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 Preferred Stock, (ii) upon
the grant to holders of the Preferred Stock of certain rights or warrants to subscribe for shares
of the Preferred Stock or convertible securities at less than the current market price of the
Preferred Stock or (iii) upon the distribution to holders of the Preferred Stock of evidences of
indebtedness or assets (excluding regular periodic cash dividends out of earnings or retained
earnings or dividends payable in the Preferred Stock) or of subscription rights or warrants (other
than those referred to above).

With certain exceptions, no adjustment in the Purchase Price will be required until cumulative
adjustments require an adjustment of at least one percent (1%) in such Purchase Price. No
fractional shares will be issued (other than fractional shares which are integral multiples of
1/1,000ths of a share of Preferred Stock) and, in lieu thereof, an adjustment in cash will be made
based on the market price of the Preferred Stock on the last Trading Date prior to the date of
exercise.

Prior to the Distribution Date, the Board may amend or supplement any provision of the Rights
Agreement without the consent of the holders of the Rights. Following the Distribution Date, the
Board of Directors may amend the provisions of the Rights Agreement in order to cure any ambiguity,
to correct any defect or inconsistency or to make changes deemed necessary or desirable, so long as
such changes do not adversely affect the interests of the holders of the Rights (excluding the
interests of any Acquiring Person and its affiliates and associates). In any case, however, the
Board of Directors may not amend or supplement the Rights Agreement to change or supplement the
Redemption Price, Final Expiration Date, the Purchase Price or the number of 1/1,000ths of a share
of Preferred Stock for which a Right is exercisable.

The Rights may have the effect of impeding a change in control of the Company without the
prior consent of the Board, and the Rights could cause substantial dilution to a person that
attempts to acquire the Company without conditioning the offer on redemption of the Rights by the
Board or on the acquisition by such person of a substantial number of Rights. The Rights will not
interfere with any Permitted Offer for all of the outstanding Common Stock that has the approval of
the Independent Directors.

A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as
an Exhibit to Amendment No. 2 to the Company’s Registration Statement on Form 8-A dated May 19,
1986. A copy of the Rights Agreement is available free of charge from the Company by written
request to Kansas City Southern, P.O. Box 219335, Kansas City, Missouri 64121-9335 (U.S. mail), or
427 West 12th Street, Kansas City, Missouri 64105 (delivery service). This summary
description of the Rights does not purport to be complete and is qualified in its entirety by
reference to the Rights Agreement, which is hereby incorporated herein by reference. In the event
of a conflict between this summary and the Rights Agreement, the Rights Agreement will prevail.

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]