Document:

EX-10.36(a)

Exhibit 10.36(a)

FIRST AMENDMENT

TO THE SUMMARY OF TERMS

This FIRST AMENDMENT TO THE SUMMARY OF TERMS (the “Amendment”) is made and entered
into as of July 28, 2005 by and among SPS Holding Corp., a Delaware corporation (“SPS”),
Select Portfolio Servicing, Inc., a Utah corporation (the “Servicer”), Credit Suisse First
Boston (USA), Inc., a Delaware corporation (the “Investor”), DLJ Mortgage Capital, Inc., a
Delaware corporation (“DLJ”), The PMI Group, Inc., a Delaware corporation, and FSA
Portfolio Management Inc., a New York corporation.

WHEREAS, each of the parties hereto has entered into the Summary of Terms, dated January 19,
2005 (the “Summary of Terms”), that grants the Investor an option exercisable on or before
July 31, 2005 to acquire all outstanding shares of capital stock of SPS;

WHEREAS, each of the parties hereto have been working together diligently and in good faith to
negotiate definitive agreements and believe that it is in the best interest of all parties to amend
the Summary of Terms to extend the expiration date of the option granted therein from July 31, 2005
to August 5, 2005;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

1. Amendment of Exercise Date. The Summary of Terms is hereby amended such that the
date “July 31, 2005” included therein is deleted and replaced with “August 5, 2005”. Accordingly,
after giving effect to such amendment, the Exercise Date shall be August 5, 2005.

2. No Other Amendments; Summary of Terms Remains in Effect. Except as expressly
amended by Section 1 of this Amendment, the Summary of Terms shall remain in full force and effect
in the form in which it existed immediately prior to the execution and delivery of this Amendment.
This Amendment shall not amend or otherwise modify, or constitute a waiver of any provision in, the
Flow Servicing Rights Purchase Agreement, dated as of January 28, 2005 (the “Flow Purchase
Agreement”), between DLJ and the Servicer and such agreement shall remain in full force and
effect.

3. Amendments. No amendments, changes or modifications to this Amendment shall be
valid unless the same are in writing and signed by the parties hereto.

4. Counterparts. This Amendment may be executed in multiple counterparts. Each
counterpart shall be an original, but altogether shall constitute one and the same instrument.

1

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

SPS HOLDING CORP.

By /s/ Robert J. Holz

Name: Robert J. Holz

Title: EVP and General Counsel

SELECT PORTFOLIO SERVICING, INC.

By /s/ Robert J. Holz

Name: Robert J. Holz

Title: EVP and General Counsel

CREDIT SUISSE FIRST BOSTON (USA), INC.

By /s/ James P. Healy

Name: James P. Healy

Title: Managing Director

DLJ MORTGAGE CAPITAL, INC.

By /s/ Bruce S. Kaiserman

Name: Bruce S. Kaiserman

Title: Vice President

THE PMI GROUP, INC.

By /s/ Arthur P. Slepian

Name: Arthur P. Slepian

Title: Sr. V.P., PMI Capital Corporation

FSA PORTFOLIO MANAGEMENT INC.

By /s/ Bruce E. Stern

Name: Bruce E. Stern

Title: Managing Director and

General Counsel

Signature Page to Amendment No. 1 to the Summary of Terms

2EX-4.1

Exhibit 4.1

STOCKHOLDER PROTECTION RIGHTS AGREEMENT

BETWEEN

KNOLOGY, INC.

AND

WACHOVIA BANK, NATIONAL ASSOCIATION, AS RIGHTS AGENT

JULY 27, 2005

1

TABLE OF CONTENTS

	 	 	 
	ARTICLE I — CERTAIN DEFINITIONS

	 
	 	 
	ARTICLE II — THE RIGHTS

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

2.10

	 	

Issuance of Rights Certificates; Legend

Exercise of Rights; Separation of Rights

Adjustments to Exercise Price; Number of Rights

Date on Which Exercise is Effective

Execution, Authentication, Delivery and Dating of Rights Certificates

Registration, Registration of Transfer and Exchange

Mutilated, Destroyed, Lost and Stolen Rights Certificates

Persons Deemed Owners

Delivery and Cancellation of Certificates

Agreement of Rights Holders

	 	 	 
	ARTICLE III — ADJUSTMENTS TO THE RIGHTS IN THE EVENT OF CERTAIN TRANSACTIONS

	 
	 	 
	3.1

3.2

	 	Flip-In

Flip-Over

	 	 	 
	ARTICLE IV — THE RIGHTS AGENT

	 
	 	 
	4.1

4.2

4.3

4.4

	 	General

Merger or Consolidation or Change of Name of Rights Agent

Duties of Rights Agent

Change of Rights Agent

	 	 	 
	ARTICLE V — MISCELLANEOUS

	 
	 	 
	5.1

5.2

5.3

5.4

5.5

5.6

5.7

5.8

5.9

5.10

5.11

5.12

5.13

5.14

5.15

5.16

5.17

5.18

	 	Redemption

Expiration

Issuance of New Rights Certificates

Supplements and Amendments

Fractional Shares

Rights of Action

Holder of Rights Not Deemed a Stockholder

Notice of Proposed Actions

Notices

Suspension of Exercisability

Costs of Enforcement

Successors

Benefits of this Agreement

Determination and Actions by the Board of Directors, etc.

Descriptive Headings

Governing Law

Counterparts

Severability

2

STOCKHOLDER PROTECTION RIGHTS AGREEMENT

THIS STOCKHOLDER PROTECTION RIGHTS AGREEMENT (as amended from time to time, this
“Agreement”) is made and entered into as of July 27, 2005, between Knology, Inc., a
Delaware corporation (the “Corporation”), and Wachovia Bank, National Association, as
rights agent (the “Rights Agent,” which term shall include any successor rights agent
hereunder).

W I T N E S S E T H:

WHEREAS, on July 27, 2005, the Board of Directors of the Corporation (a) has authorized and
declared a dividend of one right (“Right”) in respect of each share of Common Stock issued
and outstanding as of the Close of Business on August 10, 2005 (the “Record Time”), (b) as
provided in Section 2.1 has authorized the issuance of one Right in respect of each share of Common
Stock issued after the Record Time (as hereinafter defined) and prior to the Separation Time (as
hereinafter defined) and (c) as provided in Section 5.3 has authorized the issuance of one Right in
respect of certain shares of Common Stock issued after the Separation Time;

WHEREAS, subject to Sections 3.1, 5.1 and 5.10, each Right entitles the holder thereof, after
the Separation Time, to purchase securities of the Corporation (or, in certain cases, of certain
other entities) pursuant to the terms and subject to the conditions set forth herein; and

WHEREAS, the Corporation desires to appoint the Rights Agent to act on behalf of the
Corporation, and the Rights Agent is willing so to act, in connection with the issuance, transfer,
exchange and replacement of Rights Certificates (as hereinafter defined), the exercise of Rights
and other matters referred to herein;

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

ARTICLE I

CERTAIN DEFINITIONS

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

“Acquiring Person” shall mean any Person who is a Beneficial Owner of 18% or more of
the outstanding shares of Common Stock; provided, however, that the term “Acquiring Person” shall
not include any Person (i) who is the Beneficial Owner of 18% or more of the outstanding shares of
Common Stock on the date of this Agreement or who shall become the Beneficial Owner of 18% or more
of the outstanding shares of Common Stock solely as a result of an acquisition by the Corporation
of shares of Common Stock, until such time hereafter or thereafter as any such Person shall become
the Beneficial Owner (other than by means of a stock dividend or stock split) of any additional
shares of Common Stock, (ii) who is the Beneficial Owner of 18% or more of the outstanding shares
of Common Stock but less than 23% or more of the outstanding shares of Common Stock and who
acquired Beneficial Ownership of shares of Common Stock without any plan or intention to seek or
affect control of the Corporation, if such Person promptly enters into an irrevocable commitment
promptly to divest, and thereafter promptly divests (without exercising or retaining any power,
including voting power, with respect to such shares), sufficient shares of Common Stock (or
securities convertible into, exchangeable into or exercisable for Common Stock) so that such Person
ceases to be the Beneficial Owner of 18% or more of the outstanding shares of Common Stock, or
(iii) who Beneficially Owns shares of Common Stock consisting solely of one or more of (A) shares
of Common Stock Beneficially Owned pursuant to the grant or exercise of an option granted to such
Person by the Corporation in connection with an agreement to merge with, or acquire, the
Corporation entered into prior to a Flip-In Date, (B) shares of Common Stock (or securities
convertible into, exchangeable into or exercisable for Common Stock) Beneficially Owned by such
Person or its Affiliates or Associates at the time of grant of such option or (C) shares of Common
Stock (or securities convertible into, exchangeable into or exercisable for Common Stock) acquired
by Affiliates or Associates of such Person after the time of such grant which, in the aggregate,
amount to less than 1% of the outstanding shares of Common Stock. In addition, the Corporation,
any wholly owned Subsidiary of the Corporation and any employee stock ownership or other employee
benefit plan of the Corporation or a wholly owned Subsidiary of the Corporation shall not be an
Acquiring Person.

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

A Person shall be deemed the “Beneficial Owner” of, and to have “Beneficial
Ownership” of, and to “Beneficially Own,” any securities of which such Person or any of
such Person’s Affiliates or Associates is or may be deemed to be the beneficial owner pursuant to
Rules 13d-3 and 13d-5 under the Securities Exchange Act, as such Rules are in effect on the date of
this Agreement, as well as any securities as to which such Person or any of such Person’s
Affiliates or Associates has the right to become Beneficial Owner (whether such right is
exercisable immediately or only after the passage of time or the occurrence of conditions) pursuant
to any agreement, arrangement or understanding, or upon the exercise of conversion rights, exchange
rights, other rights (other than the Rights), warrants or options, or otherwise; provided, however,
that a Person shall not be deemed the “Beneficial Owner” of, or to have “Beneficial
Ownership” of, or to “Beneficially Own,” any security (i) solely because such security
has been tendered pursuant to a tender or exchange offer made by such Person or any of such
Person’s Affiliates or Associates until such tendered security is accepted for payment or exchange
or (ii) solely because such Person or any of such Person’s Affiliates or Associates has or shares
the power to vote or direct the voting of such security pursuant to a revocable proxy given in
response to a public proxy or consent solicitation made to more than ten holders of shares of a
class of stock of the Corporation registered under Section 12 of the Securities Exchange Act and
pursuant to, and in accordance with, the applicable rules and regulations under the Securities
Exchange Act, except if such power (or the arrangements relating thereto) is then reportable under
Item 6 of Schedule 13D under the Securities Exchange Act (or any similar provision of a comparable
or successor report). Notwithstanding the foregoing, no officer or director of the Corporation
shall be deemed to Beneficially Own any securities of any other Person by virtue of any actions
such officer or director takes in such capacity. For purposes of this Agreement, any calculation
of the number of shares of Common Stock outstanding at any time, including for purposes of
determining the percentage of the outstanding shares of Common Stock with respect to which a Person
is the Beneficial Owner, shall be made in accordance with the provisions of Rule 13d-3(d)(1) under
the Securities Exchange Act.

“Business Day” shall mean any day other than a Saturday, Sunday or a day on which
banking institutions in the States of Georgia, North Carolina or New York are generally authorized
or obligated by law or executive order to close.

“Close of Business” on any given date shall mean 5:00 p.m. West Point, Georgia time on
such date (or, if such date is not a Business Day, 5:00 p.m. West Point, Georgia time on the next
succeeding Business Day).

“Common Stock” when used with respect to the Corporation shall mean the shares of
common stock, par value $0.01 per share, of the Corporation.

“Exchange Time” shall mean the time at which the right to exercise the Rights shall
terminate pursuant to Section 3.1(c).

“Exercise Price” shall mean, as of any date, the price at which a holder may purchase
the securities issuable upon exercise of one whole Right. Until adjustment thereof in accordance
with the terms hereof, the Exercise Price shall equal $16.00.

“Expiration Time” shall mean the earliest of (i) the Exchange Time, (ii) the
Redemption Time, (iii) the Close of Business on July 27, 2015, and (iv) the time of a merger of the
Corporation into another corporation pursuant to an agreement entered into prior to a Flip-In Date.

“Flip-In Date” shall mean the tenth Business Day after any Stock Acquisition Date or
such earlier or later date as the Board of Directors of the Corporation may from time to time fix
by resolution adopted prior to the Flip-In Date that would otherwise have occurred.

“Flip-Over Entity” for purposes of Section 3.2, shall mean (i) in the case of a
Flip-Over Transaction or Event described in clause (i) of the definition thereof, the Person
issuing any securities into which shares of Common Stock are being converted or exchanged and, if
no such securities are being issued, any other party to such Flip-Over Transaction or Event and
(ii) in the case of a Flip-Over Transaction or Event referred to in clause (ii) of the definition
thereof, the Person receiving the greatest portion of the assets or earning power being transferred
in such Flip-Over Transaction or Event; provided in all cases if such Person is a subsidiary of
another Person, the ultimate controlling Person that is not an individual shall be the Flip-Over
Entity.

“Flip-Over Stock” shall mean the capital stock (or similar equity interest) with the
greatest voting power in respect of the election of directors (or other Persons similarly
responsible for direction of the business and affairs) of the Flip-Over Entity.

“Flip-Over Transaction or Event” shall mean a transaction or series of transactions
after a Flip-In Date in which, directly or indirectly, (i) the Corporation shall consolidate or
merge or participate in a share exchange with any other Person if, at the time of the
consolidation, merger or share exchange or at the time the Corporation enters into any agreement
with respect to any such consolidation, merger or share exchange, the Acquiring Person is the
Beneficial Owner of 90% or more of the outstanding Common Stock or Controls the Board of Directors
of the Corporation and either (A) any term of or arrangement concerning the treatment of shares of
capital stock in such consolidation, merger or share exchange relating to the Acquiring Person is
not identical to the terms and arrangements relating to other holders of the Common Stock or (B)
the Person with whom the transaction or series of transactions occurs is the Acquiring Person or an
Affiliate or Associate of the Acquiring Person or (ii) the Corporation shall sell or otherwise
transfer (or one or more of its Subsidiaries shall sell or otherwise transfer) assets (A)
aggregating more than 50% of the assets (measured by either book value or fair market value) or (B)
generating more than 50% of the operating income or cash flow, of the Corporation and its
Subsidiaries (taken as a whole) to any Person (other than the Corporation or one or more of its
wholly owned Subsidiaries) or to two or more such Persons which are Affiliates or Associates or
otherwise acting in concert, if, at the time of the entry by the Corporation (or any such
Subsidiary) into an agreement with respect to such sale or transfer of assets, the Acquiring Person
is the Beneficial Owner of 90% or more of the outstanding Common Stock or Controls the Board of
Directors of the Corporation. An Acquiring Person shall be deemed to “Control” the
Corporation’s Board of Directors when, following a Flip-In Date, the Persons who were directors of
the Corporation before the Stock Acquisition Date of such Acquiring Person shall cease to
constitute a majority of the Corporation’s Board of Directors.

“Market Price” per share of any securities on any date shall mean the average of the
daily closing prices per share of such securities (determined as described below) on each of the 20
consecutive Trading Days through and including the Trading Day immediately preceding such date;
provided, however, that if an event of a type analogous to any of the events described in Section
2.3 shall have caused the closing prices used to determine the Market Price on any Trading Days
during such period of 20 Trading Days not to be fully comparable with the closing price on such
date, each such closing price so used shall be appropriately adjusted in order to make it fully
comparable with the closing price on such date. The closing price per share of any securities on
any date shall be the last reported sale price, regular way, or, in case no such sale takes place
or is quoted on such date, the average of the closing bid and asked prices, regular way, for each
share of such securities, in either case as reported in the principal consolidated transaction
reporting system with respect to securities listed or admitted to trading on the New York Stock
Exchange, Inc. or, if the securities are not listed or admitted to trading on the New York Stock
Exchange, Inc., as reported in the principal consolidated transaction reporting system with respect
to securities listed on the principal national securities exchange on which the securities are
listed or admitted to trading or, if the securities are not listed or admitted to trading on any
national securities exchange, as reported by The Nasdaq Stock Market, Inc.’s Nasdaq National Market
or such other system then in use, or, if on any such date the securities are not listed or admitted
to trading on any national securities exchange or 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
securities selected by the Board of Directors of the Corporation; provided, however, that if on any
such date the securities are not listed or admitted to trading on a national securities exchange or
traded in the over-the-counter market, the closing price per share of such securities on such date
shall mean the fair value per share of securities on such date as determined in good faith by the
Board of Directors of the Corporation, after consultation with a nationally recognized investment
banking firm, and set forth in a certificate delivered to the Rights Agent.

“Person” shall mean any individual, firm, partnership, limited liability company,
association, group (as such term is used in Rule 13d-5 under the Securities Exchange Act, as such
Rule is in effect on the date of this Agreement), corporation or other entity, and shall include
any successor (by merger or otherwise) thereof or thereto.

“Preferred Stock” shall mean the Series X Junior Participating Preferred Stock, par
value $0.01 per share, of the Corporation created by the Certificate of Designations in
substantially the form set forth in Exhibit B hereto, appropriately completed.

“Redemption Price” shall mean an amount per Right equal to one cent, $0.01.

“Redemption Time” shall mean the time at which the right to exercise the Rights shall
terminate pursuant to Section 5.1.

“Separation Time” shall mean the Close of Business on the earlier of (i) the tenth
Business Day (or such earlier or later date as the Board of Directors of the Corporation may from
time to time fix by resolution adopted prior to the Separation Time that would otherwise have
occurred) after the date on which any Person commences a tender or exchange offer which, if
consummated, would result in such Person’s becoming an Acquiring Person and (ii) the Flip-In Date;
provided, that if any tender or exchange offer referred to in clause (i) of this paragraph is
canceled, terminated or otherwise withdrawn prior to the Separation Time without the purchase of
any shares of Common Stock pursuant thereto, such offer shall be deemed, for purposes of this
paragraph, never to have been made.

“Stock Acquisition Date” shall mean the first date of public announcement by the
Corporation (by any means) that an Acquiring Person has become such.

“Subsidiary” of any specified Person shall mean any corporation or other entity of
which a majority of the voting power of the equity securities or a majority of the equity interests
is Beneficially Owned, directly or indirectly, by such Person.

“Trading Day,” when used with respect to any securities, shall mean a day on which the
New York Stock Exchange, Inc. is open for the transaction of business or, if such securities are
not listed or admitted to trading on the New York Stock Exchange, Inc., a day on which the
principal national securities exchange on which such securities are listed or admitted to trading
is open for the transaction of business or, if such securities are not listed or admitted to
trading on any national securities exchange, a day on which The Nasdaq Stock Market, Inc.’s Nasdaq
National Market or such other system then in use is open for the transaction of business or, if
such securities are not listed or admitted to trading on any national securities exchange or quoted
on any such system, a Business Day.

ARTICLE II

THE RIGHTS

2.1 Issuance of Rights Certificates; Legend. (a) Certificates for the Common Stock
issued after the Record Time but prior to the Separation Time shall evidence, in addition to the
Common Stock represented by such certificate, one Right for each share of Common Stock represented
thereby and shall have impressed on, printed on, written on or otherwise affixed to them a legend
in substantially the following form:

“Until the Separation Time (as defined in the Rights Agreement referred to below),
this certificate also evidences and entitles the holder hereof to certain Rights as
set forth in a Stockholder Protection Rights Agreement, dated as of July 27, 2005
(as such may be amended from time to time, the “Rights Agreement”), between
Knology, Inc. (the “Corporation”) and Wachovia Bank, National Association,
as Rights Agent, the terms of which are hereby incorporated herein by reference and
a copy of which is on file at the principal executive offices of the Corporation.
Under certain circumstances, as set forth in the Rights Agreement, such Rights may
be redeemed, may become exercisable for securities or assets of the Corporation or
of another entity, may be exchanged for shares of Common Stock or other securities
or assets of the Corporation, may expire, may become void (if they are
“Beneficially Owned” by an “Acquiring Person” or an Affiliate or
Associate thereof, as such terms are defined in the Rights Agreement, or by any
transferee of any of the foregoing) or may be evidenced by separate certificates and
may no longer be evidenced by this certificate. The Corporation will mail or
arrange for the mailing of a copy of the Rights Agreement to the holder of this
certificate without charge promptly after the receipt of a written request
therefor.”

Certificates representing shares of Common Stock that are issued and outstanding at the Record Time
shall evidence, in addition to the Common Stock represented by such certificate, one Right for each
share of Common Stock evidenced thereby notwithstanding the absence of the foregoing legend.

(b) Subject to Sections 2.3 and 5.3, one Right shall be issued in respect of each share of
Common Stock that becomes outstanding (whether by original issuance or out of treasury, but other
than in a transaction contemplated by Section 2.3) after the Record Time but prior to the
Separation Time. To the extent provided in Section 5.3, Rights shall be issued by the Corporation
in respect of shares of Common Stock that are issued or sold by the Corporation after the
Separation Time.

2.2 Exercise of Rights; Separation of Rights. (a) Subject to Sections 3.1, 5.1 and
5.10 and subject to adjustment as herein set forth, each Right will entitle the holder thereof,
after the Separation Time and prior to the Expiration Time, to purchase, for the Exercise Price,
one one-hundredth (1/100th) of a share of Preferred Stock.

(b) Until the Separation Time, (i) no Right may be exercised and (ii) each Right will be
evidenced by the certificate that evidences the share of Common Stock with which it is associated
and will be transferable only together with, and will be transferred by a transfer of, such
associated share of Common Stock, and the surrender for transfer of any certificates representing
outstanding Common Stock will also constitute the surrender for transfer of the Rights associated
with the Common Stock represented by such certificate.

(c) Subject to this Section 2.2 and to Sections 3.1, 5.1 and 5.10, after the Separation Time
and prior to the Expiration Time, the Rights (i) may be exercised and (ii) may be transferred
independently of shares of Common Stock. Promptly following the Separation Time and receipt by the
Rights Agent of a written notification thereof, the Rights Agent will mail to each holder of record
of Common Stock as of the Separation Time (other than any Person whose Rights have become void
pursuant to Section 3.1(b)), at such holder’s address as shown by the records of the Corporation
(the Corporation hereby agreeing to furnish copies of such records to the Rights Agent for this
purpose), (x) a certificate (a “Rights Certificate”) in substantially the form of
Exhibit A hereto appropriately completed, representing the number of Rights held by such
holder at the Separation Time and having such marks of identification or designation and such
legends, summaries or endorsements printed thereon as the Corporation may deem appropriate and as
are not inconsistent with the provisions of this Agreement, or as may be required to comply with
any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any
national securities exchange or quotation system on which the Rights may from time to time be
listed or traded, or to conform to usage, and (y) a disclosure statement describing the Rights.

(d) Subject to Sections 3.1, 5.1 and 5.10, Rights may be exercised on any Business Day after
the Separation Time and prior to the Expiration Time by submitting to the Rights Agent the Rights
Certificate evidencing such Rights with an Election to Exercise (an “Election to Exercise”)
substantially in the form attached to the Rights Certificate, duly executed and properly completed,
accompanied by payment by certified or official bank check or money order payable to the order of
the Corporation, of a sum equal to the Exercise Price multiplied by the number of Rights being
exercised and a sum sufficient to cover any tax or charge that may be payable in respect of any
transfer involved in the transfer or delivery of Rights Certificates or the issuance or delivery of
certificates for shares or depositary receipts (or both) in a name other than that of the holder of
the Rights being exercised.

(e) Upon receipt of a Rights Certificate, with an Election to Exercise accompanied by payment
as set forth in Section 2.2(d), and subject to Sections 3.1, 5.1 and 5.10, the Rights Agent
promptly will (i)(A) requisition from the Corporation’s transfer agent(s) stock certificates
evidencing such number of shares or other securities to be purchased (the Corporation hereby
irrevocably authorizing its transfer agents to comply with all such requisitions) and (B) if the
Corporation elects pursuant to Section 5.5 not to issue certificates representing fractional
shares, requisition from the depositary selected by the Corporation depositary receipts
representing the fractional shares to be purchased or requisition from the Corporation the amount
of cash to be paid in lieu of fractional shares in accordance with Section 5.5 and (ii) after
receipt of such certificates, depositary receipts and/or cash, deliver the same to or upon the
order of the registered holder of such Rights Certificate, registered (in the case of certificates
or depositary receipts) in such name or names as may be designated by such holder. In the event
that the Corporation elects pursuant to Section 3.1(e) to issue other securities and/or assets of
the Corporation upon exercise of the Rights, the Corporation will make all arrangements necessary
so that such other securities and/or assets of the Corporation are available for distribution by
the Rights Agent, if and when necessary to comply with this Agreement.

(f) In case the holder of any Rights shall exercise less than all the Rights evidenced by such
holder’s Rights Certificate, a new Rights Certificate evidencing the Rights remaining unexercised
will be issued by the Rights Agent to such holder or to such holder’s duly authorized assigns.

(g) The Corporation covenants and agrees that it will (i) take all such action as may be
necessary to ensure that all shares delivered upon exercise of Rights shall, at the time of
delivery of the certificates for such shares (subject to payment of the Exercise Price), be duly
and validly authorized, executed, issued and delivered and fully paid and nonassessable; (ii) take
all such action as may be necessary to comply with any applicable requirements of the Securities
Act of 1933, as amended, or the Securities Exchange Act, and the rules and regulations thereunder,
and any other applicable law, rule or regulation, in connection with the issuance of any shares
upon exercise of Rights; and (iii) pay when due and payable any and all taxes and charges that may
be payable in respect of the original issuance or delivery of the Rights Certificates or of any
shares issued upon the exercise of Rights, provided that the Corporation shall not be required to
pay any tax or charge that may be payable in respect of any transfer involved in the transfer or
delivery of Rights Certificates or the issuance or delivery of certificates for shares in a name
other than that of the holder of the Rights being transferred or exercised.

2.3 Adjustments to Exercise Price; Number of Rights. (a) In the event the Corporation
shall at any time after the Record Time and prior to the Separation Time (i) declare or pay a
dividend on Common Stock payable in Common Stock, (ii) subdivide the outstanding Common Stock, or
(iii) combine the outstanding Common Stock into a smaller number of shares of Common Stock, (x) the
Exercise Price in effect after such adjustment will be equal to the Exercise Price in effect
immediately prior to such adjustment divided by the number of shares of Common Stock (the
“Expansion Factor”) that a holder of one share of Common Stock immediately prior to such
dividend, subdivision or combination would hold thereafter as a result thereof (assuming for such
purpose that the Corporation would issue a fraction of a share of Common Stock, as applicable, and
without giving effect to any requirement that cash be paid in lieu of the issuance of any
fractional share interest) and (y) each Right held prior to such adjustment will become that number
of Rights equal to the Expansion Factor, and the adjusted number of Rights will be deemed to be
distributed among the shares of Common Stock with respect to which the original Rights were
associated (if they remain outstanding) and the shares issued in respect of such dividend,
subdivision or combination, so that each such share of Common Stock will have exactly one Right
associated with it. Each adjustment made pursuant to this paragraph shall be made as of the
payment or effective date for the applicable dividend, subdivision or combination.

(b) In the event the Corporation shall at any time after the Record Time and prior to the
Separation Time issue or distribute any securities or assets in respect of, in lieu of or in
exchange for Common Stock (other than pursuant to a regular periodic cash dividend or a dividend
paid solely in Common Stock) whether by dividend, in a reclassification or recapitalization
(including any such transaction involving a merger, consolidation or share exchange), or otherwise,
the Corporation shall make such adjustments, if any, in the Exercise Price, number of Rights and/or
securities or other property purchasable upon exercise of Rights as the Board of Directors of the
Corporation, in its sole discretion, may deem to be appropriate under the circumstances in order to
adequately protect the interests of the holders of Rights generally, and the Corporation and the
Rights Agent shall amend this Agreement as necessary to provide for such adjustments.

(c) Each adjustment to the Exercise Price made pursuant to this Section 2.3 shall be
calculated to the nearest cent. Whenever an adjustment to the Exercise Price is made pursuant to
this Section 2.3, the Corporation shall (i) promptly prepare a certificate setting forth such
adjustment and a brief statement of the facts accounting for such adjustment and (ii) promptly file
with the Rights Agent and with each transfer agent for the Common Stock a copy of such certificate.
The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment
or statement therein and shall not be deemed to have knowledge of any such adjustment unless and
until it shall have received such a certificate.

Rights Certificates shall represent the right to purchase the securities purchasable under the
terms of this Agreement, including any adjustment or change in the securities purchasable upon
exercise of the Rights, even though such certificates may continue to express the right to purchase
the securities purchasable at the time of issuance of the initial Rights Certificates.

2.4 Date on Which Exercise is Effective. Each Person in whose name any certificate
for shares is issued upon the exercise of Rights shall for all purposes be deemed to have become
the holder of record of the shares represented thereby on the date upon which the Rights
Certificate evidencing such Rights was duly surrendered and payment of the Exercise Price for such
Rights (and any applicable taxes and other charges payable by the exercising holder hereunder) was
made; provided, however, that if the date of such surrender and payment is a date upon which the
stock transfer books of the Corporation are closed, such Person shall be deemed to have become the
record holder of such shares on, and such certificate shall be dated, the next succeeding Business
Day on which the stock transfer books of the Corporation are open.

2.5 Execution, Authentication, Delivery and Dating of Rights Certificates. (a) The
Rights Certificates shall be executed on behalf of the Corporation by its Chairman of the Board,
Chief Executive Officer, President or one of its Vice Presidents, under its corporate seal
reproduced thereon and attested by its Secretary or one of its Assistant Secretaries. The
signature of any of these officers on the Rights Certificates may be manual or facsimile.

(b) Rights Certificates bearing the manual or facsimile signatures of individuals who were at
the time of such signature the proper officers of the Corporation shall bind the Corporation,
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the
countersignature and delivery of such Rights Certificates.

(c) Promptly after the Separation Time, the Corporation will notify the Rights Agent in
writing of such Separation Time and will deliver Rights Certificates executed by the Corporation to
the Rights Agent for countersignature, and, subject to Section 3.1(b), an authorized signatory of
the Rights Agent shall manually countersign and deliver such Rights Certificates to the holders of
the Rights pursuant to Section 2.2(c). No Rights Certificate shall be valid for any purpose unless
manually countersigned by an authorized signatory of the Rights Agent.

(d) Each Rights Certificate shall be dated the date of countersignature thereof.

2.6 Registration, Registration of Transfer and Exchange. (a) After the Separation
Time, the Corporation will cause to be kept a register (the “Rights Register”) in which,
subject to such reasonable regulations as it may prescribe, the Corporation will provide for the
registration and transfer of Rights. The Rights Agent is hereby appointed “Rights Registrar” for
the purpose of maintaining the Rights Register for the Corporation and registering Rights and
transfers of Rights after the Separation Time as herein provided. In the event that the Rights
Agent shall cease to be the Rights Registrar, the Rights Agent will have the right to examine the
Rights Register at all reasonable times after the Separation Time. After the Separation Time and
prior to the Expiration Time, upon surrender for registration of transfer or exchange of any Rights
Certificate, and subject to the provisions of this Section 2.6(a) and Sections 2.6(c) and 2.6(d),
the Corporation will execute and the Rights Agent will countersign and deliver, in the name of the
holder or the designated transferee or transferees, as required pursuant to the holder’s
instructions, one or more new Rights Certificates evidencing the same aggregate number of Rights as
did the Rights Certificate so surrendered.

(b) Except as otherwise provided in Section 3.1(b), all Rights issued upon any registration of
transfer or exchange of Rights Certificates shall be the valid obligations of the Corporation, and
such Rights shall be entitled to the same benefits under this Agreement as the Rights surrendered
upon such registration of transfer or exchange.

(c) Every Rights Certificate surrendered for registration of transfer or exchange shall be
duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the
Corporation or the Rights Agent, as the case may be, duly executed by the holder thereof or such
holder’s attorney duly authorized in writing. Neither the Rights Agent nor the Corporation shall be
obligated to take any action whatsoever with respect to the transfer of any such surrendered Rights
Certificates 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 Corporation shall reasonably request. As a condition to the
issuance of any new Rights Certificate under this Section 2.6, the Corporation may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto.

(d) The Corporation shall not be required to register the transfer or exchange of any Rights
after such Rights have become void under Section 3.1(b), been exchanged under Section 3.1(c) or
been redeemed under Section 5.1.

2.7 Mutilated, Destroyed, Lost and Stolen Rights Certificates. (a) If any mutilated
Rights Certificate is surrendered to the Rights Agent prior to the Expiration Time, then, subject
to Sections 3.1(b), 3.1(c) and 5.1, the Corporation shall execute and the Rights Agent shall
countersign and deliver in exchange therefor a new Rights Certificate evidencing the same number of
Rights as did the Rights Certificate so surrendered.

(b) If there shall be delivered to the Corporation and the Rights Agent prior to the
Expiration Time (i) evidence to their satisfaction of the destruction, loss or theft of any Rights
Certificate and (ii) such security or indemnity as may be required by them to save each of them and
any of their agents harmless, then, subject to Sections 3.1(b), 3.1(c) and 5.1 and in the absence
of notice to the Corporation or the Rights Agent that such Rights Certificate has been acquired by
a bona fide purchaser, the Corporation shall execute and upon its request the Rights Agent shall
countersign and deliver, in lieu of any such destroyed, lost or stolen Rights Certificate, a new
Rights Certificate evidencing the same number of Rights as did the Rights Certificate so destroyed,
lost or stolen.

(c) As a condition to the issuance of any new Rights Certificate under this Section 2.7, the
Corporation may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including the fees and
expenses of the Rights Agent) connected therewith.

(d) Every new Rights Certificate issued pursuant to this Section 2.7 in lieu of any destroyed,
lost or stolen Rights Certificate shall evidence an original additional contractual obligation of
the Corporation, whether or not the destroyed, lost or stolen Rights Certificate shall be at any
time enforceable by anyone, and, subject to Section 3.1(b), shall be entitled to all the benefits
of this Agreement equally and proportionately with any and all other Rights duly issued hereunder.

2.8 Persons Deemed Owners. Prior to due presentment of a Rights Certificate (or,
prior to the Separation Time, the associated Common Stock certificate) for registration of
transfer, the Corporation, the Rights Agent and any agent of the Corporation or the Rights Agent
may deem and treat the Person in whose name such Rights Certificate (or, prior to the Separation
Time, such Common Stock certificate) is registered as the absolute owner thereof and of the Rights
evidenced thereby for all purposes whatsoever, and neither the Corporation nor the Rights Agent
shall be affected by any notice to the contrary. As used in this Agreement, unless the context
otherwise requires, the term “holder” of any Rights shall mean the registered holder of such Rights
(or, prior to the Separation Time, the associated shares of Common Stock).

2.9 Delivery and Cancellation of Certificates. All Rights Certificates surrendered
upon exercise or for registration of transfer or exchange shall, if surrendered to any Person other
than the Rights Agent, be delivered to the Rights Agent and, in any case, shall be promptly
canceled by the Rights Agent. The Corporation may at any time deliver to the Rights Agent for
cancellation any Rights Certificates previously countersigned and delivered hereunder which the
Corporation may have acquired in any manner whatsoever, and all Rights Certificates so delivered
shall be promptly canceled by the Rights Agent. No Rights Certificates shall be countersigned in
lieu of or in exchange for any Rights Certificates canceled as provided in this Section 2.9, except
as expressly permitted by this Agreement. The Rights Agent shall return all canceled Rights
Certificates to the Corporation.

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

(a) prior to the Separation Time, each Right will be transferable only together with, and will
be transferred by a transfer of, the associated share of Common Stock;

(b) after the Separation Time, the Rights Certificates will be transferable only on the Rights
Register as provided herein;

(c) prior to due presentment of a Rights Certificate (or, prior to the Separation Time, the
associated Common Stock certificate) for registration of transfer, the Corporation, the Rights
Agent and any agent of the Corporation or the Rights Agent may deem and treat the Person in whose
name the Rights Certificate (or, prior to the Separation Time, the associated Common Stock
certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby for
all purposes whatsoever, and neither the Corporation nor the Rights Agent shall be affected by any
notice to the contrary;

(d) Rights beneficially owned by certain Persons will, under the circumstances set forth in
Section 3.1(b), become void;

(e) this Agreement may be supplemented or amended from time to time pursuant to Section 2.3(b)
or 5.4; and

(f) notwithstanding anything in this Agreement to the contrary, neither the Corporation nor
the Rights Agent shall have any liability to any holder of a Right or other Person as a result of
the Rights Agent’s 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 Corporation must use its best efforts to have any such order, decree or ruling lifted or
otherwise overturned as soon as possible.

ARTICLE III

ADJUSTMENTS TO THE RIGHTS IN

THE EVENT OF CERTAIN TRANSACTIONS

3.1 Flip-In. (a) In the event that, prior to the Expiration Time, a Flip-In Date shall
occur, except as provided in this Section 3.1, each Right shall constitute the right to purchase
from the Corporation, upon exercise thereof in accordance with the terms hereof (but subject to
Section 5.10), that number of shares of Common Stock having an aggregate Market Price on the Stock
Acquisition Date equal to twice the Exercise Price for an amount in cash equal to the Exercise
Price (such right to be appropriately adjusted in order to protect the interests of the holders of
Rights generally in the event that on or after such Stock Acquisition Date an event of a type
analogous to any of the events described in Section 2.3(a) or (b) shall have occurred with respect
to the Common Stock).

(b) Notwithstanding the foregoing, any Rights that are or were Beneficially Owned on or after
the Stock Acquisition Date by an Acquiring Person or an Affiliate or Associate thereof or by any
transferee, direct or indirect, of any of the foregoing shall become void and any holder of such
Rights (including transferees) shall thereafter have no right to exercise or transfer such Rights
under any provision of this Agreement. If any Rights Certificate is presented for assignment or
exercise and the Person presenting the same will not complete the certification set forth at the
end of the form of assignment or notice of election to exercise and provide such additional
evidence of the identity of the Beneficial Owner and its Affiliates and Associates (or former
Beneficial Owners and their Affiliates and Associates) as the Corporation shall reasonably request,
then the Corporation shall be entitled conclusively to deem the Beneficial Owner thereof to be an
Acquiring Person or an Affiliate or Associate thereof or a transferee of any of the foregoing and
accordingly will deem the Rights evidenced thereby to be void and not transferable or exercisable.

(c) The Board of Directors of the Corporation may, at its option, at any time after a Flip-In
Date and prior to the time that an Acquiring Person becomes the Beneficial Owner of more than 50%
of the outstanding shares of Common Stock, elect to exchange all (but not less than all) the
then-outstanding Rights (other than Rights that have become void pursuant to the provisions of
Section 3.1(b)) for shares of Common Stock at an exchange ratio of one share of Common Stock per
Right (appropriately adjusted in order to protect the interests of holders of Rights generally in
the event that after the Separation Time an event of a type analogous to any of the events
described in Section 2.3(a) or (b) shall have occurred with respect to the Common Stock) (such
exchange ratio, as adjusted from time to time, being hereinafter referred to as the “Exchange
Ratio”). Immediately upon the action of the Board of Directors of the Corporation electing to
exchange the Rights, without any further action and without any notice, the right to exercise the
Rights will terminate and each Right (other than Rights that have become void pursuant to Section
3.1(b)) will thereafter represent only the right to receive a number of shares of Common Stock
equal to the Exchange Ratio. Promptly after the action of the Board of Directors electing to
exchange the Rights, the Corporation shall give written notice thereof (specifying the steps to be
taken to receive shares of Common Stock in exchange for Rights) to the Rights Agent and the holders
of the Rights (other than Rights that have become void pursuant to Section 3.1(b)) outstanding
immediately prior thereto by mailing such notice in accordance with Section 5.9. Each Person in
whose name any certificate for shares is issued upon the exchange of Rights pursuant to this
Section 3.1(c) or Section 3.1(e) shall for all purposes be deemed to have become the holder of
record of the shares represented thereby on, and such certificate shall be dated, the date upon
which the Rights Certificate evidencing such Rights was duly surrendered and payment of any
applicable taxes and other charges payable by the holder was made; provided, however, that if the
date of such surrender and payment is a date upon which the stock transfer books of the Corporation
are closed, such Person shall be deemed to have become the record holder of such shares on, and
such Certificate shall be dated, the next succeeding Business Day on which the stock transfer books
of the Corporation are open.

(d) Whenever the Corporation shall become obligated under Section 3.1(a) or 3.1(c) to issue
shares of Common Stock upon exercise of or in exchange for Rights, the Corporation, at its option,
may substitute therefor shares of Preferred Stock, at a ratio of one one-hundredth
(1/100th) of a share of Preferred Stock for each share of Common Stock so issuable.

(e) In the event that there shall not be sufficient treasury shares or authorized but unissued
shares of Common Stock or Preferred Stock of the Corporation to permit the exercise or exchange in
full of the Rights in accordance with Section 3.1(a) or (c), the Corporation shall either (i) call
a meeting of stockholders seeking approval to cause sufficient additional shares to be authorized
(provided that if such approval is not obtained the Corporation will take the action specified in
clause (ii) of this sentence) or (ii) take such action as shall be necessary to ensure and provide,
to the extent permitted by applicable law and any agreements or instruments in effect on the Stock
Acquisition Date to which it is a party, that each Right shall thereafter constitute the right to
receive, (x) at the Corporation’s option, either (A) in return for the Exercise Price, cash, debt
or equity securities or other assets (or a combination thereof) having a fair value equal to twice
the Exercise Price, or (B) without payment of consideration (except as otherwise required by
applicable law), cash, debt or equity securities or other assets (or a combination thereof) having
a fair value equal to the Exercise Price, or (y) if the Board of Directors of the Corporation
elects to exchange the Rights in accordance with Section 3.1(c), debt or equity securities or other
assets (or a combination thereof) having a fair value equal to the product of the Market Price of a
share of Common Stock on the Flip-In Date times the Exchange Ratio in effect on the Flip-In Date,
where in any case set forth in (x) or (y) above the fair value of such debt or equity securities or
other assets shall be as determined in good faith by the Board of Directors of the Corporation,
after consultation with a nationally recognized investment banking firm.

3.2 Flip-Over. (a) Prior to the Expiration Time, the Corporation shall not enter into
any agreement with respect to, consummate or permit to occur any Flip-Over Transaction or Event
unless and until it shall have entered into a supplemental agreement with the Flip-Over Entity, for
the benefit of the holders of the Rights (other than holders of Rights that have become void
pursuant to Section 3.1(b)), providing that, upon consummation or occurrence of the Flip-Over
Transaction or Event (i) each Right (other than holders of Rights that have become void pursuant to
Section 3.1(b)) shall thereafter constitute the right to purchase from the Flip-Over Entity, upon
exercise thereof in accordance with the terms hereof, that number of shares of Flip-Over Stock of
the Flip-Over Entity having an aggregate Market Price on the date of consummation or occurrence of
such Flip-Over Transaction or Event equal to twice the Exercise Price for an amount in cash equal
to the Exercise Price (such right to be appropriately adjusted in order to protect the interests of
the holders of Rights generally (other than holders of Rights that have become void pursuant to
Section 3.1(b)) in the event that after such date of consummation or occurrence an event of a type
analogous to any of the events described in Section 2.3(a) or (b) shall have occurred with respect
to the Flip-Over Stock) and (ii) the Flip-Over Entity shall thereafter be liable for, and shall
assume, by virtue of such Flip-Over Transaction or Event and such supplemental agreement, all the
obligations and duties of the Corporation pursuant to this Agreement. The provisions of this
Section 3.2 shall apply to successive Flip-Over Transactions or Events.

(b) Prior to the Expiration Time, unless the Rights will be redeemed pursuant to Section 5.1
in connection therewith, the Corporation shall not enter into any agreement with respect to,
consummate or permit to occur any Flip-Over Transaction or Event if at the time thereof there are
any rights, warrants or securities outstanding or any other arrangements, agreements or instruments
that would eliminate or otherwise diminish in any material respect the benefits intended to be
afforded by this Rights Agreement to the holders of Rights upon consummation of such transaction.

ARTICLE IV

THE RIGHTS AGENT

4.1 General. (a) The Corporation hereby appoints the Rights Agent to act as agent for
the Corporation in accordance with the terms and conditions hereof, and the Rights Agent hereby
accepts such appointment. The Corporation agrees to pay to the Rights Agent reasonable
compensation for all services rendered by it hereunder and, from time to time, on demand of the
Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the
preparation, negotiation, delivery, amendment, administration and execution of this Agreement and
the exercise and performance of its duties hereunder. The Corporation also agrees to indemnify the
Rights Agent, its directors, officers, employees and agents for, and to hold each of them harmless
against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or
expense (including without limitation, the reasonable fees and expenses of legal counsel), incurred
without gross negligence, bad faith or willful misconduct on the part of the Rights Agent or such
other indemnified party (which gross negligence, bad faith or willful misconduct must be determined
by a final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction),
for any action taken or suffered or omitted to be taken by the Rights Agent in connection with the
acceptance and administration of this Agreement or the exercise or performance of its duties
hereunder, including the costs and expenses of defending against any claim of liability. The
indemnity provided in this Section 4.1(a) and Section 4.3 below shall survive the expiration of
the Rights and the termination of this Agreement. The costs and expenses incurred in enforcing this
right of indemnification shall be paid by the Corporation.

(b) The Rights Agent shall be fully authorized and protected and shall incur no liability for
or in respect of any action taken, suffered or omitted by it in connection with its acceptance and
administration of this Agreement or the exercise or performance of its duties hereunder in reliance
upon any certificate for securities purchasable upon exercise of Rights, Rights Certificate,
certificate for other securities of the Corporation, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or
other paper or document believed by it to be genuine and to be signed, executed and, where
necessary, verified or acknowledged, by the proper Person or Persons or otherwise upon the advice
of counsel as set forth in Section 4.3. Notwithstanding the provisions of Section 5.9, the Rights
Agent shall not be deemed to have knowledge of any event of which it was supposed to have received
notice thereof hereunder, and the Rights Agent shall be fully protected and shall incur no
liability for failing to take any action in connection therewith unless and until it has received
such notice.

4.2 Merger or Consolidation or Change of Name of Rights Agent. (a) Any Person into
which the Rights Agent or any successor Rights Agent may be merged or with which it may be
consolidated, or any Person resulting from any merger or consolidation to which the Rights Agent or
any successor Rights Agent is a party, or any Person succeeding to the stockholder services
business of the Rights Agent or any successor Rights Agent, will be the successor to the Rights
Agent under this Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto, provided that such Person would be eligible for appointment as a
successor Rights Agent under the provisions of Section 4.4. In case at the time such successor
Rights Agent succeeds to the agency created by this Agreement any of the Rights Certificates have
been countersigned but not delivered, any such successor Rights Agent may adopt the
countersignature of the predecessor Rights Agent and deliver such Rights Certificates so
countersigned; and in case at that time any of the Rights Certificates have not 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 will 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 is 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.

4.3 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 Corporation
and the holders of Rights Certificates, by their acceptance thereof, shall be bound:

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

(b) Whenever in the performance of its duties under this Agreement the Rights Agent deems it
necessary or desirable that any fact or matter be proved or established by the Corporation prior to
taking or suffering or omitting to take any action hereunder, such fact or matter (unless other
evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively
proved and established by a certificate signed by a person believed by the Rights Agent to be the
Chairman of the Board, the Chief Executive Officer, the President or any Vice President and by the
Chief Financial Officer, the Treasurer or any Assistant Treasurer or the Secretary or any Assistant
Secretary of the Corporation and delivered to the Rights Agent; and such certificate will be full
and complete authorization and protection to the Rights Agent and the Rights Agent shall incur no
liability for or in respect of any action taken, suffered or omitted by it under the provisions of
this Agreement in reliance upon such certificate.

(c) The Rights Agent shall be liable hereunder to the Corporation and any other Person only
for its own gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or
willful misconduct must be determined by a final, non-appealable order, judgment, decree or ruling
of a court of competent jurisdiction). Anything to the contrary notwithstanding, in no event shall
the Rights Agent be liable for special, punitive, indirect, consequential or incidental 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. Any liability of the Rights Agent
under this Agreement will be limited to the amount of annual fees paid by the Corporation to the
Rights Agent.

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

(e) The Rights Agent will not be under any responsibility in respect of the validity of any
provision of this Agreement or the execution and delivery hereof (except the due authorization,
execution and delivery hereof by the Rights Agent) or in respect of the validity or execution of
any certificate for securities purchasable upon exercise of Rights or Rights Certificate (except
its countersignature thereof); nor will it be responsible for any breach by the Corporation of any
covenant or condition contained in this Agreement or in any Rights Certificate; nor will it be
responsible for any change in the exercisability of the Rights (including the Rights becoming void
pursuant to Section 3.1(b)) or any adjustment required under any provision of this Agreement or
responsible for the manner, method or amount of any such adjustment or the ascertaining of the
existence of facts that would require any such adjustment (except with respect to the exercise of
Rights after receipt of the certificate contemplated by Section 2.3 describing any such
adjustment); nor will it by any act hereunder be deemed to make any representation or warranty as
to the authorization or reservation of any securities purchasable upon exercise of Rights or any
Rights or as to whether any securities purchasable upon exercise of Rights will, when issued, be
duly and validly authorized, executed, issued and delivered and fully paid and nonassessable.

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

(g) The Rights Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties hereunder from any person believed by the Rights Agent to be the
Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the
Secretary, any Assistant Secretary, the Chief Financial Officer, or the Treasurer or any Assistant
Treasurer of the Corporation, and to apply to such persons for advice or instructions in connection
with its duties, and such instructions shall be full authorization and protection to the Rights
Agent and the Rights Agent shall not be liable for or in respect of any action taken, suffered or
omitted by it in accordance with instructions of any such officer or for any delay in acting while
waiting for those instructions. The Rights Agent shall be fully authorized and protected in
relying upon the most recent instructions received by any such officer. Any application by the
Rights Agent for written instructions from the Corporation may, at the option of the Rights Agent,
set forth in writing any action proposed to be taken, suffered or omitted by the Rights Agent under
this Agreement and the date on and/or after which such action shall be taken or suffered or such
omission shall be effective. The Rights Agent shall not be liable for any action taken or suffered
by, or omission of, the Rights Agent in accordance with a proposal included in any such application
on or after the date specified in such application (which date shall not be less than five Business
Days after the date any officer of the Corporation actually receives such application, unless any
such officer shall have consented in writing to an earlier date) unless, prior to taking or
suffering any such action (or the effective date in the case of an omission), the Rights Agent
shall have received written instructions in response to such application specifying the action to
be taken, suffered or omitted.

(h) The Rights Agent and any stockholder, director, officer, affiliate or employee of the
Rights Agent may buy, sell or deal in Common Stock, Rights or other securities of the Corporation
or become pecuniarily interested in any transaction in which the Corporation may be interested, or
contract with or lend money to the Corporation 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 Corporation or for any other Person.

(i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it
or perform any duty hereunder either itself (through its directors, officers and employees) or by
or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for
any act, omission, default, neglect or misconduct of any such attorneys or agents or for any loss
to the Corporation or any other Person resulting from any such act, default, neglect or misconduct,
absent gross negligence, bad faith or willful misconduct in the selection and continued employment
thereof (which gross negligence, bad faith or willful misconduct must be determined by a final,
non-appealable order, judgment, decree or ruling of a court of competent jurisdiction).

(j) The Rights Agent undertakes only the express duties and obligations imposed on it by this
Agreement and no implied duties or obligations shall be read into this Agreement against the Rights
Agent.

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

4.4 Change of Rights Agent. The Rights Agent may resign and be discharged from its
duties under this Agreement upon 30 days notice (or such lesser notice as is acceptable to the
Corporation) in writing mailed to the Corporation and to each transfer agent of Common Stock known
to the Rights Agent by registered or certified mail, and to the holders of the Rights in accordance
with Section 5.9. The Corporation may remove the Rights Agent upon 30 days notice in writing,
mailed to the Rights Agent and to each transfer agent of the Common Stock by registered or
certified mail, and to the holders of the Rights in accordance with Section 5.9. If the Rights
Agent should resign or be removed or otherwise become incapable of acting, the Corporation will
appoint a successor to the Rights Agent. If the Corporation fails to make such appointment within
a period of 30 days after such removal or after it has been notified in writing of such resignation
or incapacity by the resigning or incapacitated Rights Agent or by the holder of any Rights (which
holder shall, with such notice, submit such holder’s Rights Certificate for inspection by the
Corporation), then the holder of any Rights may apply to any court of competent jurisdiction for
the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the
Corporation or by such a court, shall be (a) a Person organized and doing business under the laws
of the United States or of the State of Georgia or any other State of the United States, in good
standing, which is authorized under such laws to exercise the powers of the Rights Agent
contemplated by this Agreement 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 $100,000,000 or (b) an Affiliate of a Person described in the immediately
preceding clause (a). After appointment, the successor Rights Agent will be vested with the same
powers, rights, duties and responsibilities as if it had been originally named as Rights Agent
without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the
successor Rights Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective
date of any such appointment, the Corporation will file notice thereof in writing with the
predecessor Rights Agent and each transfer agent of the Common Stock, and mail a notice thereof in
writing to the holders of the Rights. Failure to give any notice provided for in this Section 4.4,
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.

ARTICLE V

MISCELLANEOUS

5.1 Redemption. (a) The Board of Directors of the Corporation may, at its option, at
any time prior to the Close of Business on the Flip-In Date elect to redeem all (but not less than
all) of the then outstanding Rights at the Redemption Price and the Corporation, at its option, may
pay the Redemption Price either in cash or shares of Common Stock or other securities of the
Corporation deemed by the Board of Directors, in the exercise of its sole discretion, to be at
least equivalent in value to the Redemption Price.

(b) Immediately upon the action of the Board of Directors of the Corporation electing to
redeem the Rights (or, if the resolution of the Board of Directors electing to redeem the Rights
states that the redemption will not be effective until the occurrence of a specified future time or
event, upon the occurrence of such future time or event), without any further action and without
any notice, the right to exercise the Rights will terminate and each Right will thereafter
represent only the right to receive the Redemption Price in cash or securities, as determined by
the Board of Directors. Promptly after the Rights are redeemed, the Corporation shall give notice
of such redemption to the Rights Agent and the holders of the then outstanding Rights by mailing
such notice in accordance with Section 5.9.

5.2 Expiration. The Rights and this Agreement shall expire at the Expiration Time and
no Person shall have any rights pursuant to this Agreement or any Right after the Expiration Time,
except, if the Rights are exchanged or redeemed, as provided in Section 3.1 or 5.1.

5.3 Issuance of New Rights Certificates. Notwithstanding any of the provisions of
this Agreement or of the Rights to the contrary, the Corporation may, at its option, issue new
Rights Certificates evidencing Rights in such form as may be approved by its Board of Directors to
reflect any adjustment or change in the number or kind or class of shares of stock purchasable upon
exercise of Rights made in accordance with the provisions of this Agreement. In addition, in
connection with the issuance or sale of shares of Common Stock by the Corporation following the
Separation Time and prior to the Redemption Time or Expiration Time pursuant to the terms of
securities convertible or redeemable into shares of Common Stock or to options, in each case issued
or granted prior to, and outstanding at, the Separation Time, the Corporation shall issue to the
holders of such shares of Common Stock, Rights Certificates representing the appropriate number of
Rights in connection with the issuance or sale of such shares of Common Stock; provided, however,
in each case, (i) no such Rights Certificate shall be issued, if, and to the extent that, the
Corporation shall be advised by counsel that such issuance would create a significant risk of
material adverse tax consequences to the Corporation or to the Person to whom such Rights
Certificates would be issued, (ii) no such Rights Certificates shall be issued if, and to the
extent that, appropriate adjustment shall have otherwise been made in lieu of the issuance thereof,
and (iii) the Corporation shall have no obligation to distribute Rights Certificates to any
Acquiring Person or Affiliate or Associate of an Acquiring Person or any transferee of any of the
foregoing.

5.4 Supplements and Amendments. The Corporation and the Rights Agent may subject to
the terms and conditions of this Agreement from time to time supplement or amend this Agreement
without the approval of any holders of Rights (i) prior to the Close of Business on the Flip-In
Date, in any respect and (ii) after the Close of Business on the Flip-In Date, to make any changes
that the Corporation may deem necessary or desirable and that shall not materially adversely affect
the interests of the holders of Rights generally (other than an Acquiring Person or an Affiliate or
an Associate of an Acquiring Person) or in order to cure any ambiguity or to correct or supplement
any provision contained herein that may be inconsistent with any other provisions herein or
otherwise defective. The Rights Agent will duly execute and deliver any supplement or amendment
hereto requested by the Corporation upon receipt of a certificate from the Corporation that such
supplement or amendment satisfies the terms of the preceding sentence. Notwithstanding anything
contained in this Agreement to the contrary, the Rights Agent may, but shall not be obligated to,
enter into any supplement or amendment that affects the Rights Agent’s own rights, duties,
obligations or immunities under this Agreement and the Rights Agent shall not be bound by
supplements or amendments not executed by it. Notwithstanding anything contained in this Agreement
to the contrary, no supplement or amendment that changes the rights and duties of the Rights Agent
under this Agreement shall be effective without the consent of the Rights Agent.

5.5 Fractional Shares. If the Corporation elects not to issue certificates
representing fractional shares upon exercise or redemption of Rights, the Corporation shall, in
lieu thereof, in the sole discretion of the Board of Directors, either (a) evidence such fractional
shares by depositary receipts issued pursuant to an appropriate agreement between the Corporation
and a depositary selected by it, providing that each holder of a depositary receipt shall have all
of the rights, privileges and preferences to which such holder would be entitled as a beneficial
owner of such fractional share, or (b) sell such shares on behalf of the holders of Rights and pay
to the registered holder of such Rights the appropriate fraction of price per share received upon
such sale.

5.6 Rights of Action. (a) Subject to the terms of this Agreement (including Section
3.1(b)), rights of action in respect of this Agreement, other than rights of action vested solely
in the Rights Agent, are vested in the respective holders of the Rights; and any holder of any
Rights, without the consent of the Rights Agent or of the holder of any other Rights, may, on such
holder’s own behalf and for such holder’s own benefit and the benefit of other holders of Rights,
enforce, and may institute and maintain any suit, action or proceeding against the Corporation to
enforce, or otherwise act in respect of, such holder’s right to exercise such holder’s Rights in
the manner provided in such holder’s 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.

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

5.7 Holder of Rights Not Deemed a Stockholder. No holder, as such, of any Rights
shall be entitled to vote, receive dividends or be deemed for any purpose the holder of shares or
any other securities which may at any time be issuable on the exercise of such Rights, nor shall
anything contained herein or in any Rights Certificate be construed to confer upon the holder of
any Rights, as such, any of the rights of a stockholder of the Corporation 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 5.8), or to receive dividends or
subscription rights, or otherwise, until such Rights shall have been exercised or exchanged in
accordance with the provisions hereof.

5.8 Notice of Proposed Actions. In case the Corporation shall propose after the
Separation Time and prior to the Expiration Time (i) to effect or permit occurrence of any
Flip-Over Transaction or Event or (ii) to effect the liquidation, dissolution or winding up of the
Corporation, then, in each such case, the Corporation shall give to each holder of a Right, in
accordance with Section 5.9, a notice of such proposed action, which shall specify the date on
which such Flip-Over Transaction or Event, liquidation, dissolution, or winding up is to take
place, and such notice shall be so given at least 20 Business Days prior to the date of the taking
of such proposed action.

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

Knology, Inc.

1241 O.G. Skinner Drive

West Point, Georgia 31833

Attention: Corporate Secretary

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

Wachovia Bank, National Association

1525 West W.T. Harris Blvd., 3C3

Charlotte, North Carolina 28262-8522

Attention: Equity Services Group, NC1153

Notices or demands authorized or required by this Agreement to be given or made by the
Corporation or the Rights Agent to or on the holder of any Rights shall be sufficiently given or
made if delivered or sent by first-class mail, postage prepaid, addressed to such holder at the
address of such holder as it appears upon the registry books of the Rights Agent or, prior to the
Separation Time, on the registry books of the transfer agent for the Common Stock. Any notice that
is mailed in the manner herein provided shall be deemed given on the third Business Day after
mailing, whether or not the holder receives the notice. Failure to give a notice pursuant to the
provisions of this Agreement shall not affect the validity of any action taken hereunder.

5.10 Suspension of Exercisability. To the extent that the Corporation determines in
good faith that some action will or need be taken pursuant to Section 2.2(g) or Section 3.1 or
otherwise to comply with federal or state securities laws, the Corporation may suspend the
exercisability of the Rights for 90 days and any additional period that may be reasonable in order
to take such action or comply with such laws. In the event of any such suspension, the Corporation
shall issue as promptly as practicable a public announcement stating that the exercisability or
exchangeability of the Rights has been temporarily suspended and send a prompt written notice
thereof to the Rights Agent.

5.11 Costs of Enforcement. The Corporation agrees that if the Corporation or any
other Person the securities of which are purchasable upon exercise of Rights fails to fulfill any
of its obligations pursuant to this Agreement, then the Corporation or such Person will reimburse
the holder of any Rights for the costs and expenses (including legal fees) incurred by such holder
in actions to enforce such holder’s rights pursuant to any Rights or this Agreement.

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

5.13 Benefits of this Agreement. Nothing in this Agreement shall be construed to give
to any Person other than the Corporation, the Rights Agent and the holders of the Rights any legal
or equitable right, remedy or claim under this Agreement and this Agreement shall be for the sole
and exclusive benefit of the Corporation, the Rights Agent and the holders of the Rights.

5.14 Determination and Actions by the Board of Directors, etc. The Board of Directors
of the Corporation shall have the exclusive power and authority to administer this Agreement and to
exercise all rights and powers specifically granted to the Board or to the Corporation, or as may
be necessary or advisable in the administration of this Agreement, including, without limitation,
the right and power to (i) interpret the provisions of this Agreement and (ii) make all
determinations and calculations deemed necessary or advisable for the administration of this
Agreement. All such actions, calculations, interpretations and determinations (including, for
purposes of clause (y) below, all omissions with respect to the foregoing) which are done or made
by the Board in good faith, shall (x) be final, conclusive and binding on the Corporation, the
Rights Agent, the holders of the Rights and all other parties, and (y) not subject the Board of
Directors of the Corporation to any liability to the holders of the Rights. Unless otherwise
notified, the Rights Agent shall always be entitled to assume that the Board of Directors of the
Corporation acted in good faith and the Rights Agent shall be fully protected and shall incur no
liability in reliance thereon.

5.15 Descriptive Headings. Descriptive headings appear herein for convenience only
and shall not control or affect the meaning or construction of any of the provisions hereof.

5.16 Governing Law. THIS AGREEMENT 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 THAT ALL PROVISIONS REGARDING THE RIGHTS, DUTIES AND
OBLIGATIONS OF THE RIGHTS AGENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NORTH CAROLINA APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH
STATE.

5.17 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.

5.18 Severability. If any term or provision of this Agreement or the application
thereof to any circumstance shall, in any jurisdiction and to any extent, be invalid or
unenforceable, such term or provision shall be ineffective as to such jurisdiction to the extent of
such invalidity or unenforceability without invalidating or rendering unenforceable the remaining
terms and provisions hereof or the application of such term or provision to circumstances other
than those as to which it is held invalid or unenforceable.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

3

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

KNOLOGY, INC.

	 	 	 	 	 
	By:

	 	/s/ Rodger L. Johnson
	 	

	 	 	 

	
 
	 	Name:

Title:
	 	Rodger L. Johnson

President and Chief Executive Officer

	 	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION,

as Rights Agent

	 	 	 	 	 
	By:

	 	/s/ Patrick Edwards
	 	

	 	 	 

	
 
	 	Name:

Title:
	 	Patrick Edwards

Vice President

4

EXHIBIT A

(Form of Rights Certificate)

Certificate No. R-      Rights

THE RIGHTS ARE SUBJECT TO REDEMPTION OR MANDATORY EXCHANGE, AT THE OPTION OF THE CORPORATION, ON
THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. RIGHTS BENEFICIALLY OWNED BY ACQUIRING PERSONS OR
AFFILIATES OR ASSOCIATES THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR TRANSFEREES
OF ANY OF THE FOREGOING WILL BE VOID.

Rights Certificate

KNOLOGY, INC.

This certifies that      , or registered assigns, is the registered holder of the
number of Rights set forth above, each of which entitles the registered holder thereof, subject to
the terms, provisions and conditions of the Stockholder Protection Rights Agreement, dated as of
July 27, 2005 (as amended from time to time, the “Rights Agreement”), between Knology,
Inc., a Delaware corporation (the “Corporation”), and Wachovia Bank, National Association,
as rights agent (the “Rights Agent,” which term shall include any successor rights agent
under the Rights Agreement), to purchase from the Corporation at any time after the Separation Time
(as such term is defined in the Rights Agreement) and prior to the Close of Business on July 27,
2015, one one-hundredth (1/100th) of a fully paid share of Series X Junior Participating
Preferred Stock, par value $0.01 per share (the “Preferred Stock”), of the Corporation
(subject to adjustment as provided in the Rights Agreement) at the Exercise Price referred to
below, upon presentation and surrender of this Rights Certificate with the Form of Election to
Exercise duly executed at the office of the Rights Agent designated for such purpose. The Exercise
Price shall initially be $16.00 per Right and shall be subject to adjustment in certain events as
provided in the Rights Agreement.

In certain circumstances described in the Rights Agreement, the Rights evidenced hereby may entitle
the registered holder thereof to purchase securities of an entity other than the Corporation or
securities or assets of the Corporation other than Preferred Stock, all as provided in the Rights
Agreement.

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 Corporation and the holders of the Rights Certificates. Copies of the Rights Agreement
are on file at the principal office of the Corporation and are available without cost upon written
request. Capitalized terms used in this Rights Certificate and not otherwise defined herein shall
have the meanings ascribed to such terms in the Rights Agreement.

This Rights Certificate, with or without other Rights Certificates, upon surrender at the office of
the Rights Agent designated for such purpose, may be exchanged for another Rights Certificate or
Rights Certificates of like tenor evidencing an aggregate number of Rights equal to the aggregate
number of Rights evidenced by the Rights Certificate or Rights Certificates surrendered. If this
Rights Certificate shall be exercised in part, the registered 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, each Right evidenced by this Certificate may be
(a) redeemed by the Corporation under certain circumstances, at its option, at a redemption price
of $0.01 per Right or (b) exchanged by the Corporation under certain circumstances, at its option,
for one share of Common Stock or one one-hundredth (1/100th) of a share of Preferred
Stock) per Right (or, in certain cases, other securities or assets of the Corporation), subject in
each case to adjustment in certain events as provided in the Rights Agreement.

No holder of this Rights Certificate, as such, shall be entitled to vote or receive dividends or be
deemed for any purpose the holder of any securities 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 Corporation or
any right to vote for the election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of
meetings or other actions affecting stockholders (except as provided in the Rights Agreement), or
to receive dividends or subscription rights, or otherwise, until the Rights evidenced by this
Rights Certificate shall have been exercised or exchanged 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 Corporation.

	 	 	 
	Date:	 	 
	ATTEST:

Secretary

	 	KNOLOGY, INC.

By:
	
 
	 	 
	 
	 	 
	Countersigned:

	 	

	WACHOVIA BANK, NATIONAL ASSOCIATION

By:

	 	

	 

	 	

	Authorized Officer

	 	

5

[Form of Reverse Side of Rights Certificate]

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder desires to transfer this Rights Certificate.)

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-in-fact, to transfer the
within Rights Certificate on the books of the within-named Corporation, with full power of
substitution.

Dated:      ,      .

	 	 	 
	Signature Guaranteed:

	 	Signature

(Signature must correspond to name as written

upon the face of this Rights Certificate in

every particular, without alteration or

enlargement or any change whatsoever)

Signatures must be guaranteed by an eligible guarantor institution (a bank, stockbroker, savings
and loan association or credit union with membership in an approved signature guarantee medallion
program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934.

(To be completed if true)

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

Signature

NOTICE

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

6

[To be attached to each Rights Certificate]

FORM OF ELECTION TO EXERCISE

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

	 	 	 	TO: KNOLOGY, INC.

The undersigned hereby irrevocably elects to exercise      whole Rights represented by
the attached Rights Certificate to purchase the shares of Series X Junior Participating Preferred
Stock issuable upon the exercise of such Rights and requests that certificates for such shares be
issued in the name of and delivered to:

Name:

Address:

Social Security or other Taxpayer ID No.:

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

Name:

Address:

Social Security or other Taxpayer ID No.:

Dated:      ,      

	 	 	 
	Signature Guaranteed:

	 	Signature

(Signature must correspond to name as written

upon the face of this Rights Certificate in

every particular, without alteration or

enlargement or any change whatsoever)

Signatures must be guaranteed by an eligible guarantor institution (a bank, stockbroker, savings
and loan association or credit union with membership in an approved signature guarantee medallion
program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934.

(To be completed if true)

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

Signature

NOTICE

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

7

EXHIBIT B

Certificate of Designation

of

Powers, Preferences, Rights, Qualifications,

Limitations and Restrictions

of

Series X Junior Participating Preferred Stock

of

Knology, Inc.

Pursuant to Section 151 of the Delaware General Corporation Law, Knology, Inc., a Delaware
corporation (the “Corporation”),

DOES HEREBY CERTIFY that pursuant to the authority conferred upon the Board of Directors by
the Certificate of Incorporation of the Corporation and pursuant to Section 151 of the Delaware
General Corporation Law, said Board of Directors at a meeting duly held on July 27, 2005 has duly
adopted a resolution providing for the issuance of a series of 2,000,000 shares of Series X Junior
Participating Preferred Stock which reads as follows:

There is hereby designated, out of the authorized but unissued shares of Preferred Stock of
the Corporation, a series thereof, and the number of shares, voting powers, designation,
preferences, and relative, participating, optional, and other special rights, and the
qualifications, limitations, and restrictions thereof, of the shares of such series (in addition to
those set forth in the Restated Certificate of Incorporation, as amended, which are applicable to
the Preferred Stock of all series), shall be as follows:

1. Series X Junior Participating Preferred Stock. There is hereby established a
series of Preferred Stock, par value $0.01 per share, of the Corporation, and the designation and
certain terms, powers, preferences and other rights of the shares of such series, and certain
qualifications, limitations and restrictions thereon, are hereby fixed as follows:

(i) The distinctive serial designation of this series shall be “Series X Junior Participating
Preferred Stock” (hereinafter called this “Series”). Each share of this Series shall be
identical in all respects with the other shares of this Series except as to the dates from and
after which dividends thereon shall be cumulative.

(ii) The number of shares in this Series shall initially be 2,000,000, which number may from
time to time be increased or decreased (but not below the number then outstanding) by the Board of
Directors. Shares of this Series purchased by the Corporation shall be canceled and shall revert
to authorized but unissued shares of Preferred Stock undesignated as to series. Shares of this
Series may be issued in fractional shares, which fractional shares shall entitle the holder, in
proportion to such holder’s fractional share, to all rights of a holder of a whole share of this
Series.

(iii) The holders of full or fractional shares of this Series shall be entitled to receive,
when and as declared by the Board of Directors, but only out of funds legally available therefor,
dividends, (A) on each date that dividends or other distributions (other than dividends or
distributions payable in Common Stock of the Corporation) are payable on or in respect of Common
Stock comprising part of the Reference Package (as defined below), in an amount per whole share of
this Series equal to the aggregate amount of dividends or other distributions (other than dividends
or distributions payable in Common Stock of the Corporation) that would be payable on such date to
a holder of the Reference Package and (B) on the last day of March, June, September and December in
each year, in an amount per whole share of this Series equal to the excess (if any) of $1.00 over
the aggregate dividends paid per whole share of this Series during the three-month period ending on
such last day. Each such dividend shall be paid to the holders of record of shares of this Series
on the date, not exceeding 60 days preceding such dividend or distribution payment date, fixed for
that purpose by the Board of Directors in advance of payment of each particular dividend or
distribution. Dividends on each full and each fractional share of this Series shall be cumulative
from the date such full or fractional share is originally issued; provided that any such full or
fractional share originally issued after a dividend record date and on or prior to the dividend
payment date to which such record date relates shall not be entitled to receive the dividend
payable on such dividend payment date or any amount in respect of the period from such original
issuance to such dividend payment date.

The term “Reference Package” shall initially mean 100 shares of Common Stock, par
value $0.01 per share (“Common Stock”), of the Corporation. In the event the Corporation
shall at any time (A) declare or pay a dividend on any Common Stock payable in Common Stock, (B)
subdivide any Common Stock or (C) combine any Common Stock into a smaller number of shares, then
and in each such case the Reference Package after such event shall be the Common Stock that a
holder of the Reference Package immediately prior to such event would hold thereafter as a result
thereof.

Holders of shares of this Series shall not be entitled to any dividends, whether payable in
cash, property or stock, in excess of full cumulative dividends, as herein provided, on this
Series.

So long as any shares of this Series are outstanding, no dividend (other than a dividend in
Common Stock or in any other stock ranking junior to this Series as to dividends and upon
liquidation) shall be declared or paid or set aside for payment or other distribution declared or
made upon the Common Stock or upon any other stock ranking junior to this Series as to dividends or
upon liquidation, nor shall any Common Stock nor any other stock of the Corporation ranking junior
to or on a parity with this Series as to dividends or upon liquidation be redeemed, purchased or
otherwise acquired for any consideration (or any moneys be paid to or made available for a sinking
fund for the redemption of any shares of any such stock) by the Corporation (except by conversion
into or exchange for stock of the Corporation ranking junior to this Series as to dividends and
upon liquidation), unless, in each case, the full cumulative dividends (including the dividend to
be due upon payment of such dividend, distribution, redemption, purchase or other acquisition) on
all outstanding shares of this Series shall have been, or shall contemporaneously be, paid.

(iv) In the event of any merger, consolidation, reclassification or other transaction in
which the shares of Common Stock are exchanged for or changed into other stock or securities, cash
and/or any other property, then in any such case the shares of this Series shall at the same time
be similarly exchanged or changed in an amount per whole share equal to the aggregate amount of
stock, securities, cash and/or any other property (payable in kind), as the case may be, that a
holder of the Reference Package would be entitled to receive as a result of such transaction.

(v) In the event of any liquidation, dissolution or winding up of the affairs of the
Corporation, whether voluntary or involuntary, the holders of full and fractional shares of this
Series shall be entitled, before any distribution or payment is made on any date to the holders of
the Common Stock or any other stock of the Corporation ranking junior to this Series upon
liquidation, to be paid in full an amount per whole share of this Series equal to the greater of
(A) $1.00 or (B) the aggregate amount distributed or to be distributed prior to such date in
connection with such liquidation, dissolution or winding up to a holder of the Reference Package
(such greater amount being hereinafter referred to as the “Liquidation Preference”),
together with accrued dividends to such distribution or payment date, whether or not earned or
declared. If such payment shall have been made in full to all holders of shares of this Series,
the holders of shares of this Series as such shall have no right or claim to any of the remaining
assets of the Corporation.

In the event the assets of the Corporation available for distribution to the holders of shares
of this Series upon any liquidation, dissolution or winding up of the Corporation, whether
voluntary or involuntary, shall be insufficient to pay in full all amounts to which such holders
are entitled pursuant to the first paragraph of this Section (v), no such distribution shall be
made on account of any shares of any other class or series of Preferred Stock ranking on a parity
with the shares of this Series upon such liquidation, dissolution or winding up unless
proportionate distributive amounts shall be paid on account of the shares of this Series, ratably
in proportion to the full distributable, amounts for which holders of all such parity shares are
respectively entitled upon such liquidation, dissolution or winding up.

Upon the liquidation, dissolution or winding up of the Corporation, the holders of shares of
this Series then outstanding shall be entitled to be paid out of assets of the Corporation
available for distribution to its stockholders all amounts to which such holders are entitled
pursuant to the first paragraph of this Section (v) before any payment shall be made to the holders
of Common Stock or any other stock of the Corporation ranking junior upon liquidation to this
Series.

For the purposes of this Section (v), the consolidation or merger of, or binding share
exchange by, the Corporation with any other corporation shall not be deemed to constitute a
liquidation, dissolution or winding up of the corporation.

(vi) The shares of this Series shall not be redeemable.

(vii) In addition to any other vote or consent of stockholders required by law or by the
Certificate of Incorporation of the Corporation, each whole share of this Series shall, on any
matter, vote as a class with any other capital stock comprising part of the Reference Package and
voting on such matter and shall have the number of votes thereon that a holder of the Reference
Package would have.

8

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