Document:

exv4w1

Exhibit 4.1

 

 

GEOEYE, INC.

and

Mellon Investor Services LLC

as Rights Agent

Rights Agreement

Dated as of June 8, 2011

 

 

 

 

RIGHTS AGREEMENT

          Rights Agreement, dated as of June 8, 2011 (this “Agreement”), between GeoEye, Inc., a
Delaware corporation (the “Company”), and Mellon Investor Services LLC (operating with the service
name BNY Mellon Shareowner Services), a New Jersey limited liability company, as Rights Agent (the
“Rights Agent”).

RECITALS

          WHEREAS, on June 8, 2011, the Board of Directors (the “Board”) of the Company adopted this
Agreement, and has authorized and declared a dividend of one preferred stock purchase right (a
“Right”) for each share of Common Stock (as defined in Section 1.6) of the Company
outstanding at the close of business on June 22, 2011 (the “Record Date”) and has authorized and
directed the issuance of one Right (subject to adjustment as provided herein) with respect to each
share of Common Stock that shall become outstanding between the Record Date and the earliest of the
Distribution Date and the Expiration Date (as such terms are defined in Sections 3.1 and
7.1, respectively), each Right initially representing the right to purchase one
one-thousandth (subject to adjustment) of a share of Series B Junior Participating Preferred Stock
(the “Preferred Stock”), of the Company having the rights, powers and preferences set forth in the
form of Certificate of Designations of Series B Junior Participating Preferred Stock attached
hereto as Exhibit A (as amended from time to time), upon the terms and subject to the
conditions hereinafter set forth; provided, however, that Rights may be issued with respect to
Common Stock that shall become outstanding after the Distribution Date and prior to the Expiration
Date in accordance with Section 22.

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

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

          1.1. “Acquiring Person” shall mean any Person who or which, together with all Affiliates and
Associates of such Person, shall be the Beneficial Owner of 20% or more of the Common Stock then
outstanding, but shall not include (i) an Exempt Person or (ii) any Existing Holder, unless and
until such time as such Existing Holder shall become the Beneficial Owner of one or more additional
shares of Common Stock (other than pursuant to a dividend or distribution paid or made by the
Company on the outstanding Common Stock in Common Stock or pursuant to a split or subdivision of
the outstanding Common Stock), unless upon acquiring such Beneficial Ownership, such Existing
Holder does not Beneficially Own 20% or more of the Common Stock then outstanding. Notwithstanding
the foregoing, no Person shall become an “Acquiring Person” as the result of an acquisition of
Common Stock by the Company which, by reducing the number of shares outstanding, increases the
proportionate number of shares Beneficially Owned by such Person to 20% or more of the Common Stock
then outstanding; provided, however, that if a Person shall become the Beneficial Owner of 20% or
more of the Common Stock then outstanding solely by reason of share purchases by the Company and
shall, after such share purchases by the Company, become the Beneficial Owner of one or more

 

 

additional shares of Common Stock (other than pursuant to a dividend or distribution paid or
made by the Company on the outstanding Common Stock in Common Stock or pursuant to a split or
subdivision of the outstanding Common Stock), then such Person shall be deemed to be an “Acquiring
Person” unless, upon becoming the Beneficial Owner of such additional Common Stock, such Person
does not Beneficially Own 20% or more of the Common Stock then outstanding. Notwithstanding the
foregoing, if the Board determines in good faith that a Person who would otherwise be an “Acquiring
Person,” as defined pursuant to the foregoing provisions of this Section 1.1, has become
such inadvertently (including, without limitation, because (A) such Person was unaware that it
Beneficially Owned a percentage of Common Stock that would otherwise cause such Person to be an
“Acquiring Person” or (B) such Person was aware of the extent of its Beneficial Ownership of Common
Stock but had no actual knowledge of the consequences of such Beneficial Ownership under this
Agreement) and had no intention of changing or influencing control of the Company, and such Person
divests as promptly as practicable a sufficient number of shares of Common Stock so that such
Person would no longer be an Acquiring Person, as defined pursuant to the foregoing provisions of
this Section 1.1, then such Person shall not be deemed to be or have become an “Acquiring
Person” at any time for any purposes of this Agreement. For all purposes of this Agreement, any
calculation of the number of shares of Common Stock outstanding at any particular time, including
for purposes of determining the particular percentage of such outstanding Common Stock of which any
Person is the Beneficial Owner, shall include the number of shares of Common Stock not outstanding
at the time of such calculation that such Person is otherwise deemed to Beneficially Own for
purposes of this Agreement. The number of shares of Common Stock not outstanding that such Person
is otherwise deemed to Beneficially Own for purposes of this Agreement shall be deemed to be
outstanding for the purpose of computing the percentage of the outstanding number of shares of
Common Stock owned by such Person but shall not be deemed to be outstanding for the purpose of
computing the percentage of outstanding Common Stock owned by any other Person.

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

          1.3. A Person shall be deemed the “Beneficial Owner” of and shall be deemed to “Beneficially
Own” or have “Beneficial Ownership” of any securities:

          1.3.1. which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or
shares: (A) voting power, which includes the power to vote, or to direct the voting of, such
security (except that a Person shall not be deemed to be the Beneficial Owner of any security under
this clause (A) if such voting power arises solely from a revocable proxy or consent given
to such Person in response to a public proxy or consent solicitation made pursuant to, and in
accordance with, Section 14(a) of the Exchange Act by means of a solicitation statement filed on
Schedule 14A), and/or (B) investment power, which includes the power to dispose, or to direct the
disposition of, such security;

          1.3.2. which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the Right to Acquire; provided, however, that a Person shall not be

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deemed the Beneficial Owner of, or to Beneficially Own, (x) securities tendered pursuant to a
tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or
Associates until such tendered securities are accepted for purchase or exchange, (y) securities
which such Person has a Right to Acquire upon the exercise of Rights at any time prior to the time
that any Person becomes an Acquiring Person, or (z) securities issuable upon the exercise of Rights
from and after the time that any Person becomes an Acquiring Person if such Rights were acquired by
such Person or any of such Person’s Affiliates or Associates prior to the Distribution Date or
pursuant to Section 3.1 or Section 22 (“Original Rights”) or pursuant to
Section 11.9 or Section 11.15 with respect to an adjustment to Original Rights;

          1.3.3. which are Beneficially Owned, directly or indirectly, by any other Person (or any
Affiliate or Associate thereof) with whom such Person or any of such Person’s Affiliates or
Associates has an agreement, arrangement or understanding to act together for the purpose of
acquiring, holding, voting or disposing of any securities of the Company (except that a Person
shall not be deemed to be the Beneficial Owner of any security under this Section 1.3.3 if
such voting power arises solely from a revocable proxy or consent given to such Person in response
to a public proxy or consent solicitation made pursuant to, and in accordance with, Section 14(a)
of the Exchange Act by means of a solicitation statement filed on Schedule 14A); or

          1.3.4. which such Person would otherwise be deemed to be the beneficial owner pursuant to Rule
13d-3 under the Exchange Act.

          No Person shall be deemed to be the “Beneficial Owner” of, to have “Beneficial Ownership” of
or to “Beneficially Own” any securities which such Person or any of such Person’s Affiliates or
Associates would otherwise be deemed to “Beneficially Own” pursuant to this Section 1.3
solely as a result of any merger or other acquisition agreement between the Company and such Person
(or one or more of such Person’s Affiliates or Associates), or any tender, voting or support
agreement entered into by such Person (or one or more of such Person’s Affiliates or Associates) in
connection therewith, if, prior to such Person becoming an Acquiring Person, the Board has approved
such merger or other acquisition agreement, or such tender, voting or support agreement.

          No Person who is an officer, director or employee of an Exempt Person shall be deemed, solely
by reason of such Person’s status or authority as such, to be the “Beneficial Owner” of, to have
“Beneficial Ownership” of or to “Beneficially Own” any securities that are “Beneficially Owned” (as
defined in this Section 1.3), including, without limitation, in a fiduciary capacity, by an
Exempt Person or by any other such officer, director or employee of an Exempt Person.

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

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

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          1.6. “Common Stock” when used with reference to the Company shall mean the Common Stock, par
value $0.01 per share, of the Company. “Common Stock” when used with reference to any Person other
than the Company shall mean the capital stock with the greatest voting power, or the equity
securities or other equity interest having power to control or direct the management, of such other
Person or, if such Person is a Subsidiary of another Person, the Person or Persons which ultimately
control such first-mentioned Person, and which has issued and outstanding such capital stock,
equity securities or equity interest.

          1.7. “Exempt Person” shall mean the Company, any Subsidiary of the Company, in each case
including, without limitation, the officers and members of the board of directors thereof acting in
their fiduciary capacities, or any employee benefit plan of the Company or of any Subsidiary of the
Company or any entity or trustee holding shares of capital stock of the Company for or pursuant to
the terms of any such plan, or for the purpose of funding other employee benefits for employees of
the Company or any Subsidiary of the Company.

          1.8. “Existing Holder” shall mean any Person who, immediately prior to the first public
announcement of the adoption of this Agreement, is the Beneficial Owner of 20% or more of the
Common Stock then outstanding, together with any Affiliates and Associates of such Person.

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

          1.10. “Right to Acquire” shall mean a legal, equitable or contractual right to acquire
(whether directly or indirectly and whether exercisable immediately, or only after the passage of
time, compliance with regulatory requirements, fulfillment of a condition or otherwise), pursuant
to any agreement, arrangement or understanding, whether or not in writing (excluding customary
agreements entered into in good faith with and between an underwriter and selling group members in
connection with a firm commitment underwriting registered under the Securities Act of 1933, as
amended (the “Securities Act”)), or upon the exercise of any option, warrant or right, through
conversion of a security, pursuant to the power to revoke a trust, discretionary account or similar
arrangement, pursuant to the power to terminate a repurchase or similar so-called “stock borrowing”
agreement or arrangement, or pursuant to the automatic termination of a trust, discretionary
account or similar arrangement.

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

          1.12. “Subsidiary” of any Person shall mean any partnership, joint venture, limited liability
company, firm, corporation, unincorporated association, trust or other entity of which a majority
of the voting power of the voting equity securities or equity interests is owned, of record or
beneficially, directly or indirectly, by such Person.

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          1.13. A “Trigger Event” shall be deemed to have occurred upon any Person becoming an Acquiring
Person.

          1.14. The following terms shall have the meanings defined for such terms in the Sections set
forth below:

	 	 	 
	Term	 	Section
	 	 	 

	Adjustment Shares
	 	11.1.2

	Agreement
	 	Preamble

	Board
	 	Recitals

	Book Entry Shares
	 	3.1

	common stock equivalent
	 	11.1.3

	Company
	 	Preamble

	current per share market price
	 	11.4.1

	Current Value
	 	11.1.3

	Distribution Date
	 	3.1

	equivalent preferred stock
	 	11.2

	Exchange Act
	 	1.2

	Exchange Consideration
	 	27.1

	Exemption Request
	 	28

	Expiration Date
	 	7.1

	Final Expiration Date
	 	7.1

	NASDAQ
	 	9

	Original Rights
	 	1.3.2

	Preferred Stock
	 	Recitals

	Principal Party
	 	13.2

	Purchase Price
	 	4

	Record Date
	 	Recitals

	Redemption Date
	 	7.1

	Redemption Price
	 	23.1

	Requesting Person
	 	28

	Right
	 	Recitals

	Right Certificate
	 	3.1

	Rights Agent
	 	Preamble

	Securities Act
	 	1.12

	Security
	 	11.4.1

	Spread
	 	11.1.3

	Substitution Period
	 	11.1.3

	Summary of Rights
	 	3.2

	Trading Day
	 	11.4.1

	Trust
	 	27.1

	Trust Agreement
	 	27.1

          Section 2. Appointment of Rights Agent.

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

          Section 3. Issuance of Right Certificates.

          3.1. Rights Evidenced by Stock Certificates. Until the earlier of (i) the close of
business on the tenth (10th) Business Day after the Stock Acquisition Date or (ii) the
close of business on the tenth (10th) Business Day after the date of the commencement
of, or first public announcement of the intent of any Person (other than an Exempt Person) to
commence, a tender or exchange offer the consummation of which would result in any Person (other
than an Exempt Person) becoming the Beneficial Owner of Common Stock aggregating 20% or more of the
then outstanding Common Stock (the earlier of (i) and (ii) being herein referred to as the
“Distribution Date”), (x) the Rights (unless earlier expired, redeemed or terminated) will be
evidenced (subject to the provisions of Section 3.2) by the certificates for Common Stock
registered in the names of the holders thereof or, in the case of uncertificated Common Stock
registered in book entry form, by notation in book entry (“Book Entry Shares”) (which certificates
for Common Stock and Book Entry Shares shall also be deemed to be Right Certificates) and not by
separate certificates, and (y) the Rights (and the right to receive certificates therefor) will be
transferable only in connection with the transfer of the underlying Common Stock. The preceding
sentence notwithstanding, prior to the occurrence of a Distribution Date specified as a result of
an event described in clause (ii) (or such later Distribution Date as the Board may select pursuant
to this sentence), the Board may postpone, one or more times, the Distribution Date which would
occur as a result of an event described in clause (ii) beyond the date set forth in such clause
(ii). Nothing herein shall permit such a postponement of a Distribution Date after a Person
becomes an Acquiring Person, except as a result of the operation of the third sentence of
Section 1.1. As soon as practicable after the Distribution Date, the Company will prepare
and execute, the Rights Agent will countersign and the Company (or, if requested and provided with
all necessary information and documents, the Rights Agent) will send, by first-class,
postage-prepaid mail, to each record holder of Common Stock as of the close of business on the
Distribution Date (other than any Acquiring Person or any Associate or Affiliate of an Acquiring
Person), at the address of such holder shown on the records of the Company or the transfer agent or
registrar for the Common Stock, one or more certificates for Rights, in substantially the form of
Exhibit B hereto (a “Right Certificate”), evidencing one Right (subject to adjustment as
provided herein) for each share of Common Stock so held. As of and after the Distribution Date,
the Rights will be evidenced solely by such Right Certificates, and the Rights will be transferable
separately from the transfer of Common Stock. The Company shall promptly notify the Rights Agent
in writing upon the occurrence of the Distribution Date and, if such notification is given orally,
the Company shall confirm same in writing on or prior to the Business Day next following. Until
such notice is received by the Rights Agent, the Rights Agent may presume conclusively for all
purposes that the Distribution Date has not occurred.

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          3.2. Summary of Rights. On the Record Date or as soon as practicable thereafter, the
Company will send or cause to be sent a copy of a Summary of Rights to Purchase Preferred Stock, in
substantially the form attached hereto as Exhibit C (the “Summary of Rights”), by
first-class, postage-prepaid mail, to each record holder of Common Stock as of the close of
business on the Record Date (other than any Acquiring Person or any Associate or Affiliate of any
Acquiring Person) at the address of such holder shown on the records of the Company or the transfer
agent or registrar for the Common Stock (and in case of any discrepancy known to the Rights Agent,
the Company shall indicate which set of records shall be dispositive). With respect to
certificates for Common Stock and Book Entry Shares outstanding as of the close of business on the
Record Date, until the Distribution Date (or the earlier Expiration Date), the Rights will be
evidenced by such certificates for Common Stock registered in the names of the holders thereof or
Book Entry Shares, as applicable, together with a copy of the Summary of Rights and the registered
holders of the Common Stock shall also be registered holders of the associated Rights. Until the
Distribution Date (or the earlier Expiration Date), the surrender for transfer of any certificate
for Common Stock or Book Entry Shares outstanding at the close of business on the Record Date, with
or without a copy of the Summary of Rights, shall also constitute the transfer of the Rights
associated with the Common Stock represented thereby and the Book Entry Shares, as applicable.

          3.3. New Certificates After Record Date. The Company shall cause certificates for
Common Stock that become outstanding (whether upon issuance out of authorized but unissued Common
Stock, disposition out of treasury or transfer or exchange of outstanding Common Stock) after the
Record Date but prior to the earliest of the Distribution Date or the Expiration Date, shall have
impressed, printed, stamped, written or otherwise affixed onto them a legend in substantially the
following form:

This certificate also evidences and entitles the holder hereof to
certain rights as set forth in a Rights Agreement between GeoEye,
Inc. (the “Company”) and Mellon Investor Services LLC (operating
with the service name BNY Mellon Shareowner Services), as Rights
Agent, dated as of June 8, 2011, as the same may be amended from
time to time (the “Agreement”), the terms of which are hereby
incorporated herein by reference and a copy of which is on file at
the principal executive offices of the Company. Under certain
circumstances, as set forth in the Agreement, such Rights (as
defined in the Agreement) will be evidenced by separate certificates
and will no longer be evidenced by this certificate. The Company
will mail to the holder of this certificate a copy of the Agreement
without charge after receipt of a written request therefor. As
described in the Agreement, Rights which are owned by, transferred
to or have been owned by Acquiring Persons or Associates or
Affiliates thereof (as defined in the Agreement) shall become null
and void and will no longer be transferable.

With respect to any Book Entry Shares, such legend shall be included in a notice to the record
holder of such shares in accordance with applicable law. Until the Distribution Date (or the
earlier Expiration Date), the Rights associated with the Common Stock represented by such

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certificates and such Book Entry Shares shall be evidenced by such certificates and the Book Entry
Shares alone, and the surrender for transfer of any such certificates or Book Entry Shares, except
as otherwise provided herein, shall also constitute the transfer of the Rights associated with the
Common Stock represented thereby. In the event that the Company purchases or acquires any Common
Stock after the Record Date but prior to the Distribution Date, any Rights associated with such
Common Stock shall be deemed canceled and retired so that the Company shall not be entitled to
exercise any Rights associated with the Common Stock that are no longer outstanding.

          Notwithstanding this Section 3.3, neither the omission of the legend, nor the failure to
provide the notice thereof to any holder of the Rights, shall affect the enforceability of any part
of this Agreement or the rights of any holder of the Rights.

          Section 4. Form of Right Certificates. The Right Certificates (and the forms of
election to purchase shares and assignment, including the certifications therein, to be printed on
the reverse thereof) shall be substantially in the same form set forth in Exhibit B hereto and may
have such marks of identification or designation and such legends, summaries or endorsements
printed thereon as the Company may deem appropriate (but which do not affect the rights, duties,
liabilities or responsibilities of the Rights Agent) and as are not inconsistent with the
provisions of this Agreement, or as may be required to comply with any applicable law or with any
rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange or
trading system on which the Rights may from time to time be listed or quoted, or to conform to
usage. Subject to the terms and conditions hereof, the Right Certificates, whenever issued, shall
be dated as of the Record Date, and shall show the date of countersignature by the Rights Agent,
and on their face shall entitle the holders thereof to purchase such number of one one-thousandths
of a share of Preferred Stock as shall be set forth therein at the price per one one-thousandth of
a share of Preferred Stock set forth therein (the “Purchase Price”), but the number of such one
one-thousandths of a share of Preferred Stock and the Purchase Price shall be subject to adjustment
as provided herein.

          Section 5. Countersignature and Registration. The Right Certificates shall be
executed on behalf of the Company by any of the President and Chief Executive Officer, the Chief
Operating Officer, the Executive Vice President and Chief Financial Officer, or the Senior Vice
President, General Counsel and Secretary of the Company, either manually or by facsimile signature,
and shall have affixed thereto the Company’s seal or a facsimile thereof, which shall be attested
by the Secretary or any Assistant Secretary of the Company or by such officers as the Board may
designate, either manually or by facsimile signature. The Right Certificates shall be
countersigned, either manually or by facsimile signature, by an authorized signatory of the Rights
Agent, but it shall not be necessary for the same signatory to countersign all of the Right
Certificates hereunder. No Right Certificate shall be valid for any purpose unless so
countersigned. In case any officer of the Company who shall have signed any of the Right
Certificates shall cease to be such officer of the Company before countersignature by the Rights
Agent and issuance and delivery by the Company, such Right Certificates, nevertheless, may be
countersigned by the Rights Agent, and issued and delivered by the Company with the same force and
effect as though the Person who signed such Right Certificates had not ceased to be such officer of
the Company; and any Right Certificate may be signed on behalf of the Company by any Person who, at
the actual date of the execution of such Right Certificate, shall be a proper

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officer of the Company to sign such Right Certificate, although at the date of the execution
of this Agreement any such Person was not such an officer.

          Following the Distribution Date, receipt by the Rights Agreement of notice to that effect as
required by Section 3.1 and all other relevant information referred to in Section
3.1, the Rights Agent will keep or cause to be kept, at its office designated for such purpose,
books for registration and transfer of the Right Certificates issued hereunder. Such books shall
show the names and addresses of the respective holders of the Right Certificates, the number of
Rights evidenced on its face by each of the Right Certificates, the certificate number of each of
the Right Certificates and the date of each of the Right Certificates.

          Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated,
Destroyed, Lost or Stolen Right Certificates. Subject to the provisions of the Agreement,
including but not limited to Section 11.1.2 and Section 14, at any time after the
close of business on the Distribution Date, and at or prior to the close of business on the
Expiration Date, any Right Certificate or Right Certificates (other than Right Certificates
representing Rights that have become null and void pursuant to Section 11.1.2 or that have
been exchanged pursuant to Section 27) may be transferred, split up or combined or
exchanged for another Right Certificate or Right Certificates, entitling the registered holder
thereof to purchase a like number of one one-thousandths of a share of Preferred Stock as the Right
Certificate or Right Certificates surrendered then entitled such holder to purchase. Any
registered holder desiring to transfer, split up, combine or exchange any Right Certificate or
Right Certificates shall make such request in writing delivered to the Rights Agent, and shall
surrender, together with any required form of assignment and certificate duly executed and properly
completed, the Right Certificate or Right Certificates to be transferred, split up or combined or
exchanged at the office of the Rights Agent designated for such purpose. The Right Certificates
are transferable only on the registry books of the Rights Agent. Neither the Rights Agent nor the
Company shall be obligated to take any action whatsoever with respect to the transfer of any such
surrendered Right Certificate or Right Certificates until the registered holder thereof shall have
(i) properly completed and duly executed the certificate contained in the form of assignment on the
reverse side of each such Right Certificate or Right Certificates, (ii) provided such additional
evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or
Associates thereof of the Rights represented by such Right Certificate, in each case, as the
Company or the Rights Agent shall reasonably request, and (iii) paid a sum sufficient to cover any
tax or charge that may be imposed in connection with any transfer, split up, combination or
exchange of Right Certificates as required by Section 9 hereof. Thereupon, the Rights
Agent, subject to the provisions of this Agreement, shall countersign and deliver to the Person
entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested,
registered in such name or names as may be designated by the surrendering registered holder. The
Rights Agent shall forward any such sum collected by it to the Company or to such Persons as the
Company shall specify by written notice. The Rights Agent shall have no duty or obligation under
any Section of this Agreement that requires the payment of taxes or charges unless and until it is
satisfied that all such taxes and/or charges have been paid. The Company may require payment from
the holders of the Right Certificates of a sum sufficient to cover any tax or charge that may be
imposed in connection with any transfer, split up, combination of exchange of any such Right
Certificates.

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          Subject to the provisions of Section 11.1.2, at any time after the Distribution Date
and prior to the Expiration Date, upon receipt by the Company and the Rights Agent of evidence
satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate, and, in
case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and,
at the Company’s request, reimbursement to the Company and the Rights Agent of all reasonable
expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Right
Certificate if mutilated, the Company will make and deliver a new Right Certificate of like tenor
to the Rights Agent for countersignature and delivery to the registered owner in lieu of the Right
Certificate so lost, stolen, destroyed or mutilated.

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

          7.1. Exercise of Rights. Subject to Section 11.1.2 and except as otherwise
provided herein, the registered holder of any Right Certificate may exercise the Rights evidenced
thereby in whole or in part at any time after the Distribution Date upon surrender of the Right
Certificate, with the form of election to purchase and certification on the reverse side thereof
properly completed and duly executed, to the Rights Agent at the office of the Rights Agent
designated for such purpose, together with payment of the aggregate Purchase Price for the total
number of one one-thousandths of a share of Preferred Stock (or other securities, cash or other
assets) as to which the Rights are exercised, and an amount equal to any tax or charge required to
be paid under Section 9 hereof, at or prior to the time (the “Expiration Date”) that is the
earliest of (i) the close of business on June 7, 2012 (the “Final Expiration Date”), (ii) the time
at which the Rights are redeemed as provided in Section 23 (the “Redemption Date”), (iii)
the closing of any merger or other acquisition transaction involving the Company pursuant to an
agreement of the type described in Section 13.3 at which time the Rights are deemed
terminated, or (iv) the time at which the Rights are exchanged as provided in Section 27.
Except for those provisions herein that expressly survive the termination of this Agreement, this
Agreement shall terminate at such time as the Rights are no longer exercisable hereunder.

          7.2. Purchase. The Purchase Price for each one one-thousandth of a share of Preferred
Stock pursuant to the exercise of a Right shall be initially $175.00, shall be subject to
adjustment from time to time as provided in Sections 11, 13 and 26 and
shall be payable in lawful money of the United States of America in accordance with Section
7.3.

          7.3. Payment Procedures. Except as otherwise provided herein, upon receipt of a Right
Certificate representing exercisable Rights, with the form of election to purchase and
certification properly completed and duly executed, accompanied (subject to the following sentence)
by payment of the aggregate Purchase Price for the total number of one one-thousandths of a share
of Preferred Stock to be purchased and an amount equal to any applicable tax or charge required to
be paid by the holder of such Right Certificate in accordance with Section 9, in cash or by
certified or cashier’s check or money order payable to the order of the Company, the Rights Agent
shall thereupon promptly (i)(A) requisition from any transfer agent of the Preferred Stock (or make
available, if the Rights Agent is the transfer agent) certificates for the number of shares of
Preferred Stock to be purchased and the Company hereby irrevocably authorizes each such transfer
agent to comply with all such requests, or (B) if the Company shall have elected to deposit the
total number of shares of Preferred Stock issuable upon exercise of the Rights hereunder with a
depositary agent, requisition from the depositary agent depositary

10

 

receipts representing interests in such number of one one-thousandths of a share of Preferred
Stock as are to be purchased (in which case certificates for the Preferred Stock represented by
such receipts shall be deposited by the transfer agent with the depositary agent) and the Company
hereby directs each such depositary agent to comply with all such requests; (ii) when necessary to
comply with this Agreement, requisition from the Company the amount of cash to be paid in lieu of
the issuance of fractional shares in accordance with Section 14 or otherwise in accordance
with Section 11.1.3; (iii) after receipt of such certificates or depositary receipts, cause
the same to be delivered to or upon the order of the registered holder of such Right Certificate,
registered in such name or names as may be designated by such holder and (iv) when necessary to
comply with this Agreement, after receipt, promptly deliver such cash to or upon the order of the
registered holder of such Right Certificate. In the event that the Company is obligated to issue
other securities of the Company, pay cash and/or distribute other property pursuant to Section
11.1.3, the Company will make all arrangements necessary so that such other securities, cash
and/or other property are available for distribution by the Rights Agent, if and when necessary to
comply with this Agreement, and until so received, the Rights Agent shall have no duties or
obligations with respect to such securities, cash and/or other property.

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

          7.5. Full Information Concerning Ownership. Notwithstanding anything in this
Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake
any action with respect to a registered holder of Rights or other securities upon the occurrence of
any purported transfer or exercise of Rights pursuant to Section 6 hereof or exercise as
set forth in this Section 7 unless the certification contained in the form of election to
purchase set forth on the reverse side of the Right Certificate surrendered for such exercise shall
have been properly completed and duly executed by the registered holder thereof and the Company and
the Rights Agent shall have been provided with such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or
the Rights Agent shall reasonably request.

          Section 8. Cancellation and Destruction of Right Certificates. All Right Certificates
surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if
surrendered to the Company or to any of its agents, be delivered to the Rights Agent for
cancellation or in canceled form, or, if surrendered to the Rights Agent, shall be canceled by it,
and no Right Certificates shall be issued in respect or lieu thereof except as expressly permitted
by any of the provisions of this Agreement. The Company shall deliver to the Rights Agent for
cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Right
Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. Subject
to applicable law, regulation and the Rights Agent’s internal policies, the Rights Agent shall
maintain in a retrievable database electronic records or physical records of all cancelled or
destroyed Rights Certificates which have been cancelled or destroyed by the Rights Agent. The
Rights Agent shall maintain such electronic records or physical records for the time period

11

 

required by applicable law, regulation and the Rights Agent’s internal policies. Upon written
request of the Company (and at the expense of the Company), the Rights Agent shall provide to the
Company or its designee copies of such electronic records or physical records relating to Rights
Certificates cancelled or destroyed by the Rights Agent.

          Section 9. Reservation and Availability of Capital Stock. The Company covenants and
agrees that, from and after the Distribution Date, it will cause to be reserved and kept available
out of its authorized and unissued Preferred Stock (and, following the occurrence of a Trigger
Event, out of its authorized and unissued Common Stock or other securities or out of its shares
held in its treasury) the number of shares of Preferred Stock (and, following the occurrence of a
Trigger Event, Common Stock and/or other securities) that will be sufficient to permit the exercise
in full of all outstanding Rights in accordance with the provisions of this Agreement.

          So long as the Preferred Stock (and, following the occurrence of a Trigger Event, Common Stock
and/or other securities) issuable upon the exercise of Rights may be listed on The NASDAQ Global
Market (“NASDAQ”) or any other national securities exchange or traded in the over-the-counter
market, the Company shall use its best efforts to cause, from and after such time as the Rights
become exercisable, all shares reserved for such issuance to be listed or admitted to trading on
the NASDAQ or such other exchange or market upon official notice of issuance upon such exercise.

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

          From and after such time as the Rights become exercisable, the Company shall use its best
efforts, if then necessary, to permit the issuance of Preferred Stock upon the exercise of Rights,
to register and qualify such Preferred Stock under the Securities Act and any applicable state
securities or “Blue Sky” laws (to the extent exemptions therefrom are not available), cause such
registration statement and qualifications to become effective as soon as possible after such filing
and keep such registration and qualifications effective until the earlier of the date as of which
the Rights are no longer exercisable for such securities and the Expiration Date. The Company may
temporarily suspend, from time to time, for a period of time not to exceed one hundred twenty (120)
days, the exercisability of the Rights in order to prepare and file a registration statement under
the Securities Act and permit it to become effective or in order to prepare and file any supplement
or amendment to such registration statement that the Board determines to be necessary and
appropriate under applicable law. Upon any such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily suspended, as well
as a public announcement at such time as the suspension is no longer in effect. The Company shall
notify the Rights Agent whenever it makes a public announcement pursuant to this Section 9
and provide the Rights Agent with a copy of such announcement. Notwithstanding any provision of
this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction unless the
requisite qualification or exemption in such

12

 

jurisdiction shall have been obtained and until a registration statement under the Securities
Act (if required) shall have been declared effective.

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

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

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

          11.1. Post-Execution Events.

          11.1.1. Corporate Dividends, Reclassifications, Etc. In the event the Company shall,
at any time after the date of this Agreement, (A) declare and pay a dividend on the Preferred Stock
payable in Preferred Stock, (B) subdivide the outstanding Preferred Stock, (C) combine the
outstanding Preferred Stock into a smaller number of shares of Preferred Stock or

13

 

(D) issue any shares of its capital stock in a reclassification of the Preferred Stock
(including any such reclassification in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation), except as otherwise provided in this
Section 11.1.1, the Purchase Price in effect at the time of the record date for such
dividend or of the effective date of such subdivision, combination or reclassification, and the
number and kind of shares of capital stock issuable on such date, shall be proportionately adjusted
so that the holder of any Right exercised after such time shall be entitled to receive the
aggregate number and kind of shares of capital stock which, if such Right had been exercised
immediately prior to such date and at a time when the Preferred Stock transfer books of the Company
were open, such holder would have owned upon such exercise and been entitled to receive by virtue
of such dividend, subdivision, combination or reclassification; provided, however, that in no event
shall the consideration to be paid upon the exercise of one Right be less than the aggregate par
value of the shares of capital stock of the Company issuable upon exercise of one Right. If an
event occurs which would require an adjustment under both Section 11.1.1 and Section
11.1.2, the adjustment provided for in this Section 11.1.1 shall be in addition to, and
shall be made prior to, the adjustment required pursuant to, Section 11.1.2.

          11.1.2. Acquiring Person Events; Triggering Events. Subject to Section 27, in
the event that a Trigger Event occurs, then, from and after the first occurrence of such event,
each holder of a Right, except as provided below, shall thereafter have a right to receive, upon
exercise thereof at a price per Right equal to the then current Purchase Price multiplied by the
number of one one-thousandths of a share of Preferred Stock for which a Right is then exercisable
(without giving effect to this Section 11.1.2), in accordance with the terms of this
Agreement and in lieu of Preferred Stock, such number of shares of Common Stock as shall equal the
result obtained by (x) multiplying the then current Purchase Price by the number of one
one-thousandths of a share of Preferred Stock for which a Right is then exercisable (without giving
effect to this Section 11.1.2) and (y) dividing that product by 50% of the current per
share market price of the Common Stock (determined pursuant to Section 11.4) on the first
of the date of the occurrence of, or the date of the first public announcement of, a Trigger Event
(the “Adjustment Shares”); provided that the Purchase Price and the number of Adjustment Shares
shall thereafter be subject to further adjustment as appropriate in accordance with Section
11.6. Notwithstanding the foregoing, upon and after the occurrence of a Trigger Event, any
Rights that are or were acquired or Beneficially Owned by (1) any Acquiring Person or any Associate
or Affiliate thereof, (2) a transferee of any Acquiring Person (or of any such Associate or
Affiliate) who becomes a transferee after the Acquiring Person becomes such, or (3) a transferee of
any Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or
concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either
(A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity
interests in such Acquiring Person or to any Person with whom the Acquiring Person has any
continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a
transfer which the Board has determined is part of a plan, arrangement or understanding which has
as a primary purpose or effect avoidance of this Section 11.1.2, and subsequent
transferees, shall become null and void without any further action, and any holder (whether or not
such holder is an Acquiring Person or an Associate or Affiliate of an Acquiring Person) of such
Rights shall thereafter have no right to exercise such Rights under any provision of this Agreement
or otherwise. From and after the Trigger Event, no Right Certificate shall be issued pursuant to
Section 3 or Section 6 that represents Rights that are or have become null and void
pursuant to

14

 

the provisions of this paragraph, and any Right Certificate delivered to the Rights Agent that
represents Rights that are or have become null and void pursuant to the provisions of this
paragraph shall be canceled.

          The Company shall provide the Rights Agent with written notice of the identity of any such
Acquiring Person, Associate or Affiliate, or the nominee or the transferee of any of the foregoing,
and the Rights Agent may rely on such notice in carrying out its duties under this Agreement and
shall be deemed not to have any knowledge of the identity of any such Acquiring Person, Associate
or Affiliate, or the nominee or the transferee of any of the foregoing, unless and until it shall
have received such notice.

          The Company shall use all reasonable efforts to ensure that the provisions of this Section
11.1.2 are complied with, but shall have no liability to any holder of Right Certificates or
any other Person (other than the Rights Agent pursuant to the terms of this Agreement) as a result
of its failure to make any determinations with respect to any Acquiring Person or its Affiliates,
Associates or transferees hereunder. From and after the occurrence of an event specified in
Section 13.1, any Rights that theretofore have not been exercised pursuant to this
Section 11.1.2 shall thereafter be exercisable only in accordance with Section 13
and not pursuant to this Section 11.1.2.

          11.1.3. Insufficient Shares. The Company may at its option substitute for Common
Stock issuable upon the exercise of Rights in accordance with the foregoing Section 11.1.2
a number of shares of Preferred Stock or fraction thereof such that the then current per share
market price of one share of Preferred Stock multiplied by such number or fraction is equal to the
then current per share market price of one share of Common Stock. In the event that upon the
occurrence of a Trigger Event there shall not be sufficient Common Stock authorized but unissued,
or held by the Company as treasury shares, to permit the exercise in full of the Rights in
accordance with the foregoing Section 11.1.2, the Company shall take all such action as may
be necessary to authorize additional Common Stock for issuance upon exercise of the Rights,
provided, however, that if the Company determines that it is unable to cause the authorization of a
sufficient number of additional shares of Common Stock, then, in the event the Rights become
exercisable, the Company, with respect to each Right and to the extent necessary and permitted by
applicable law and any agreements or instruments in effect on the date hereof to which it is a
party, shall: (A) determine the excess of (1) the value of the Adjustment Shares issuable upon the
exercise of a Right (the “Current Value”), over (2) the Purchase Price (such excess, the “Spread”)
and (B) with respect to each Right (other than Rights which have become null and void pursuant to
Section 11.1.2), make adequate provision to substitute for the Adjustment Shares, upon
payment of the applicable Purchase Price, (1) cash, (2) a reduction in the Purchase Price, (3)
Preferred Stock, (4) other equity securities of the Company (including, without limitation, shares,
or fractions of shares, of preferred stock which, by virtue of having dividend, voting and
liquidation rights substantially comparable to those of the Common Stock, the Board has deemed in
good faith to have substantially the same value as the Common Stock) (each such share of preferred
stock or fractions of shares of preferred stock constituting a “common stock equivalent”)), (5)
debt securities of the Company, (6) other assets or (7) any combination of the foregoing having an
aggregate value equal to the Current Value, where such aggregate value has been determined by the
Board based upon the advice of a nationally recognized investment banking firm selected in good
faith by the Board; provided, however, that if the Company shall

15

 

not have made adequate provision to deliver value pursuant to clause (B) above within thirty
(30) days following the occurrence of a Trigger Event, then the Company shall be obligated to
deliver, to the extent necessary and permitted by applicable law and any agreements or instruments
in effect on the date hereof to which it is a party, upon the surrender for exercise of a Right and
without requiring payment of the Purchase Price, Common Stock (to the extent available) and then,
if necessary, such number or fractions of Preferred Stock (to the extent available) and then, if
necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. If the
Board shall determine in good faith that it is unlikely that sufficient additional Common Stock
would be authorized for issuance upon exercise in full of the Rights within the thirty (30) day
period set forth above, such period may be extended and re-extended to the extent necessary, but
not more than one hundred twenty (120) days following the occurrence of a Trigger Event, in order
that the Company may seek stockholder approval for the authorization of such additional shares
(such period as may be extended, the “Substitution Period”). To the extent that the Company
determines that some actions need be taken pursuant to the second and/or third sentences of this
Section 11.1.3, the Company (x) shall provide that such action shall apply uniformly to all
outstanding Rights, and (y) may suspend the exercisability of the Rights until the expiration of
the Substitution Period in order to seek any authorization of additional shares and/or to decide
the appropriate form of distribution to be made pursuant to such first sentence and to determine
the value thereof. In the event of any such suspension, the Company shall issue a public
announcement (with prompt written notice thereof to the Rights Agent) stating that the
exercisability of the Rights has been temporarily suspended as well as a public announcement (with
prompt written notice thereof to the Rights Agent) at such time as the suspension is no longer in
effect. For purposes of this Section 11.1.3, the value of a share of Common Stock shall be
the then current per share market price (as determined pursuant to Section 11.4) on the
date of the occurrence of a Trigger Event and the value of any “common stock equivalent” shall be
deemed to have the same value as the Common Stock on such date. The Board may, but shall not be
required to, establish procedures to allocate the right to receive Common Stock upon the exercise
of the Rights among holders of Rights pursuant to this Section 11.1.3.

          11.2. Dilutive Rights Offering. In case the Company shall fix a record date for the
issuance of rights, options or warrants to all holders of Preferred Stock entitling them (for a
period expiring within forty-five (45) calendar days after such record date) to subscribe for or
purchase Preferred Stock (or securities having the same rights, privileges and preferences as the
Preferred Stock (“equivalent preferred stock”)) or securities convertible into Preferred Stock or
equivalent preferred stock at a price per share of Preferred Stock or per share of equivalent
preferred stock (or having a conversion or exercise price per share, if a security convertible into
or exercisable for Preferred Stock or equivalent preferred stock) less than the then current per
share market price of the Preferred Stock (as determined pursuant to Section 11.4) on such
record date, the Purchase Price to be in effect after such record date shall be determined by
multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the
numerator of which shall be the number of shares of Preferred Stock and shares of equivalent
preferred stock outstanding on such record date plus the number of shares of Preferred Stock and
shares of equivalent preferred stock which the aggregate offering price of the total number of
shares of Preferred Stock and/or shares of equivalent preferred stock to be offered (and/or the
aggregate initial conversion price of the convertible securities so to be offered) would purchase
at such current per share market price and the denominator of which shall be the number of

16

 

shares of Preferred Stock and shares of equivalent preferred stock outstanding on such record
date plus the number of additional Preferred Stock and/or shares of equivalent preferred stock to
be offered for subscription or purchase (or into which the convertible securities so to be offered
are initially convertible); provided, however, that in no event shall the consideration to be paid
upon the exercise of one Right be less than the aggregate par value of the shares of capital stock
of the Company issuable upon exercise of one Right. In case such subscription price may be paid in
a consideration part or all of which shall be in a form other than cash, the value of such
consideration shall be as determined in good faith by the Board, whose determination shall be
described in a written statement filed with the Rights Agent and shall be binding on the Rights
Agent and the holders of the Rights. Preferred Stock and shares of equivalent preferred stock
owned by or held for the account of the Company or any Subsidiary of the Company shall not be
deemed outstanding for the purpose of any such computation. Such adjustments shall be made
successively whenever such a record date is fixed; and in the event that such rights, options or
warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which
would then be in effect if such record date had not been fixed.

          11.3. Distributions. In case the Company shall fix a record date for the making of a
distribution to all holders of the Preferred Stock (including without limitation any such
distribution made in connection with a consolidation or merger in which the Company is the
continuing or surviving corporation) of evidences of indebtedness, cash, securities or assets
(other than a regular periodic cash dividend at a rate not in excess of 125% of the rate of the
last regular periodic cash dividend theretofore paid or, in case regular periodic cash dividends
have not theretofore been paid, at a rate not in excess of 50% of the average net income per share
of the Company for the four quarters ended immediately prior to the payment of such dividend, or a
dividend payable in Preferred Stock (which dividend, for purposes of this Agreement, shall be
subject to the provisions of Section 11.1.1(A))) or convertible securities, or subscription
rights or warrants (excluding those referred to in Section 11.2), the Purchase Price to be
in effect after such record date shall be determined by multiplying the Purchase Price in effect
immediately prior to such record date by a fraction, the numerator of which shall be the then
current per share market price of the Preferred Stock (as determined pursuant to Section
11.4) on such record date, less the fair market value (as determined in good faith by the
Board, whose determination shall be described in a written statement filed with the Rights Agent)
of the portion of the cash, assets, securities or evidences of indebtedness so to be distributed or
of such subscription rights or warrants applicable to one share of Preferred Stock and the
denominator of which shall be such current per share market price of the Preferred Stock (as
determined pursuant to Section 11.4); provided, however, that in no event shall the
consideration to be paid upon the exercise of one Right be less than the aggregate par value of the
shares of capital stock of the Company to be issued upon exercise of one Right. Such adjustments
shall be made successively whenever such a record date is fixed; and in the event that such
distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price
that would then be in effect if such record date had not been fixed.

          11.4. Current Per Share Market Value.

          11.4.1. General. For the purpose of any computation hereunder, the “current per share
market price” of any security (a “Security” for the purpose of this Section 11.4.1) on any
date shall be deemed to be the average of the daily closing prices per share of such Security for

17

 

the thirty (30) consecutive Trading Days (as such term is hereinafter defined) immediately
prior to, but not including, such date; provided, however, that in the event that the current per
share market price of the Security is determined during any period following the announcement by
the issuer of such Security of (i) a dividend or distribution on such Security payable in shares of
such Security or securities convertible into such Security or (ii) any subdivision, combination or
reclassification of such Security, and prior to, but not including, the expiration of thirty (30)
Trading Days after, but not including, the ex-dividend date for such dividend or distribution, or
the record date for such subdivision, combination or reclassification, then, and in each such case,
the “current per share market price” shall be appropriately adjusted to reflect the then current
market price per share equivalent of such Security. The closing price for each day shall be the
last sale price, regular way, or, in case no such sale takes place on such day, the average of the
closing bid and asked prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to trading on the NASDAQ
or, if the Security is not listed or admitted to trading on the NASDAQ, as reported in the
principal consolidated transaction reporting system with respect to securities listed on the
principal national securities exchange on which the Security is listed or admitted to trading or,
if the Security is not listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked prices in the
over-the-counter market, as reported thereby or such other system then in use, or, if on any such
date the Security is not quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional market maker making a market in the Security selected by the
Board. If on any such date no such market maker is making a market in the Security, the fair value
of the Security on such date as determined in good faith by the Board shall be used. The term
“Trading Day” shall mean a day on which the principal national securities exchange on which the
Security is listed or admitted to trading is open for the transaction of business or, if the
Security is not listed or admitted to trading on any national securities exchange, a Business Day.
If the Security is not publicly held or not so listed or traded, or if on any such date the
Security is not so quoted and no such market maker is making a market in the Security, “current per
share market price” shall mean the fair value per share as determined in good faith by the Board
or, if at the time of such determination there is an Acquiring Person, by a nationally recognized
investment banking firm selected by the Board, which shall have the duty to make such determination
in a reasonable and objective manner, whose determination shall be described in a written statement
filed with the Rights Agent and shall be conclusive for all purposes.

          11.4.2. Preferred Stock. Notwithstanding Section 11.4.1, for the purpose of
any computation hereunder, the “current per share market price” of the Preferred Stock shall be
determined in the same manner as set forth above in Section 11.4.1 (other than the last
sentence thereof). If the current per share market price of the Preferred Stock cannot be
determined in the manner described in Section 11.4.1, the “current per share market price”
of the Preferred Stock shall be conclusively deemed to be an amount equal to 1,000 (as such number
may be appropriately adjusted for such events as stock splits, stock dividends and
recapitalizations with respect to the Common Stock occurring after the date of this Agreement)
multiplied by the then current per share market price of the Common Stock (as determined pursuant
to Section 11.4.1). If neither the Common Stock nor the Preferred Stock are publicly held
or so listed or traded, or if on any such date neither the Common Stock nor the Preferred Stock are
so quoted and no such market maker is making a market in either the Common Stock or the Preferred
Stock, “current per share market price” of the Preferred Stock shall mean the fair value per share
as determined

18

 

in good faith by the Board, or, if at the time of such determination there is an Acquiring
Person, by a nationally recognized investment banking firm selected by the Board, which shall have
the duty to make such determination in a reasonable and objective manner, which determination shall
be described in a written statement filed with the Rights Agent and shall be conclusive for all
purposes. For purposes of this Agreement, the “current per share market price” of one
one-thousandth of a share of Preferred Stock shall be equal to the “current per share market price”
of one share of Preferred Stock divided by 1,000.

          11.5. Insignificant Changes. No adjustment in the Purchase Price shall be required
unless such adjustment would require an increase or decrease of at least 1% in the Purchase Price.
Any adjustments which by reason of this Section 11.5 are not required to be made shall be
carried forward and taken into account in any subsequent adjustment. All calculations under this
Section 11 shall be made to the nearest cent or to the nearest one-hundred thousandth of a
share of Preferred Stock or the nearest ten-thousandth of a share of Common Stock or other share or
security, as the case may be.

          11.6. Shares Other Than Preferred Stock. If as a result of an adjustment made
pursuant to Section 11.1, the holder of any Right thereafter exercised shall become
entitled to receive any shares of capital stock of the Company other than Preferred Stock,
thereafter the number of such other shares so receivable upon exercise of any Right shall be
subject to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Preferred Stock contained in Sections
11.1, 11.2, 11.3, 11.5, 11.8, 11.9 and 11.13,
and the provisions of Sections 7, 9, 10, 13 and 14 with
respect to the Preferred Stock shall apply on like terms to any such other shares.

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

          11.8. Effect of Adjustments on Existing Rights. Unless the Company shall have
exercised its election as provided in Section 11.9, upon each adjustment of the Purchase
Price as a result of the calculations made in Section 11.2 and Section 11.3, each
Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the
right to purchase, at the adjusted Purchase Price, that number of one one-thousandths of a share of
Preferred Stock (calculated to the nearest one-hundred thousandth of a share of Preferred Stock)
obtained by (i) multiplying (x) the number of one one-thousandths of a share of Preferred Stock
covered by a Right immediately prior to this adjustment by (y) the Purchase Price in effect
immediately prior to such adjustment of the Purchase Price and (ii) dividing the product so
obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price.

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

19

 

for which a Right was exercisable immediately prior to such adjustment. Each Right held of
record prior to such adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest ten-thousandth) obtained by dividing the Purchase Price in effect
immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately
after adjustment of the Purchase Price. The Company shall make a public announcement (with prompt
written notice thereof to the Rights Agent) of its election to adjust the number of Rights,
indicating the record date for the adjustment, and, if known at the time, the amount of the
adjustment to be made. This record date may be the date on which the Purchase Price is adjusted or
any day thereafter, but, if the Right Certificates have been issued, shall be at least ten (10)
days later than the date of the public announcement. If Right Certificates have been issued, upon
each adjustment of the number of Rights pursuant to this Section 11.9, the Company may, as
promptly as practicable, cause to be distributed to holders of record of Right Certificates on such
record date Right Certificates evidencing, subject to Section 14, the additional Rights to
which such holders shall be entitled as a result of such adjustment, or, at the option of the
Company, shall cause to be distributed to such holders of record in substitution and replacement
for the Right Certificates held by such holders prior to the date of adjustment, and upon surrender
thereof, if required by the Company, new Right Certificates evidencing all the Rights to which such
holders shall be entitled after such adjustment. Right Certificates so to be distributed shall be
issued, executed and delivered by the Company, and countersigned and delivered by the Rights Agent,
in the manner provided for herein (and may bear, at the option of the Company, the adjusted
Purchase Price) and shall be registered in the names of the holders of record of Right Certificates
on the record date specified in the public announcement.

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

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

          11.12. Deferred Issuance. In any case in which this Section 11 shall require
that an adjustment in the Purchase Price be made effective as of a record date for a specified
event, the Company may elect to defer (with prompt written notice thereof to the Rights Agent)
until the occurrence of such event the issuance to the holder of any Right exercised after such
record date of that number of shares of Preferred Stock and shares of other capital stock or
securities of the Company, if any, issuable upon such exercise over and above the Preferred Stock
and shares of other capital stock or other securities, assets or cash of the Company, if any,
issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment;
provided, however, that the Company shall deliver to such holder a due bill or other appropriate
instrument evidencing such holder’s right to receive such additional shares upon the occurrence of
the event requiring such adjustment.

20

 

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

          11.14. Company Not to Diminish Benefits of Rights. The Company covenants and agrees
that after the earlier of the Stock Acquisition Date or Distribution Date it will not, except as
permitted by Section 23, Section 26 or Section 27, take (or permit any
Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable
that such action will substantially diminish or otherwise eliminate the benefits intended to be
afforded by the Rights.

          11.15. Adjustment of Rights Associated with Common Stock. Notwithstanding anything
contained in this Agreement to the contrary, in the event that the Company shall at any time after
the date hereof and prior to the Distribution Date (i) declare or pay any dividend on the
outstanding Common Stock payable in shares of Common Stock, (ii) effect a subdivision or
consolidation of the outstanding Common Stock (by reclassification or otherwise than by the payment
of dividends payable in shares of Common Stock), or (iii) combine the outstanding Common Stock into
a greater or lesser number of shares of Common Stock, then in any such case, the number of Rights
associated with each share of Common Stock then outstanding, or issued or delivered thereafter but
prior to the Distribution Date or in accordance with Section 22 shall be proportionately
adjusted so that the number of Rights thereafter associated with each share of Common Stock
following any such event shall equal the result obtained by multiplying the number of Rights
associated with each share of Common Stock immediately prior to such event by a fraction, the
numerator of which shall be the total number of shares of Common Stock outstanding immediately
prior to the occurrence of the event and the denominator of which shall be the total number of
shares of Common Stock outstanding immediately following the occurrence of such event. The
adjustments provided for in this Section 11.15 shall be made successively whenever such a
dividend is declared or paid or such a subdivision, combination or consolidation is effected.

          Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an
adjustment is made or any event affecting the Rights or their exercisability (including without
limitation an event that causes Rights to become null and void) occurs as provided in Sections
11 or 13, the Company shall (a) promptly prepare a certificate setting forth such
adjustment or describing such event, and a brief, reasonably detailed statement of the facts,
computations and methodology accounting for such adjustment, (b) promptly file with the Rights
Agent and with each transfer agent for the Common Stock or the Preferred Stock a copy of such
certificate and (c) mail a brief summary thereof to each holder of a Right Certificate (or if
before the Distribution Date, to each holder of a certificate representing shares of Common Stock
or Book Entry Shares in respect thereof) in accordance with Section 25. The Rights Agent shall be

21

 

fully protected in relying on any such certificate and on any adjustment or statement therein
contained and shall have no duty or liability with respect thereto, and shall not be deemed to have
knowledge of any such adjustment or any such event unless and until it shall have received such a
certificate.

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

          13.1. Certain Transactions. In the event that, from and after the first occurrence of
a Trigger Event, directly or indirectly, (A) the Company shall consolidate with, or merge with and
into, any other Person and the Company shall not be the continuing or surviving corporation, (B)
any Person shall consolidate with the Company, or merge with and into the Company and the Company
shall be the continuing or surviving corporation of such merger and, in connection with such
merger, all or part of the Common Stock shall be changed into or exchanged for stock or other
securities of the Company or any other Person or cash or any other property, or (C) the Company
shall sell, exchange, mortgage or otherwise transfer (or one or more of its Subsidiaries shall
sell, exchange, mortgage or otherwise transfer), in one or more transactions, assets or earning
power aggregating 50% or more of the assets or earning power of the Company and its Subsidiaries
(taken as a whole) to any other Person or Persons (other than the Company or one or more
wholly-owned Subsidiaries of the Company in one or more transactions each of which complies with
Section 11.14), then, and in each such case, proper provision shall be made so that (i)
each holder of a Right (other than Rights which have become null and void pursuant to Section
11.1.2) shall thereafter have the right to receive, upon the exercise thereof at a price per
Right equal to the then current Purchase Price multiplied by the number of one one-thousandths of a
share of Preferred Stock for which a Right was exercisable immediately prior to the first
occurrence of a Trigger Event (as subsequently adjusted pursuant to Sections 11.1.1,
11.2, 11.3, 11.8, 11.9 and 11.12), in accordance with the
terms of this Agreement and in lieu of Preferred Stock or Common Stock, such number of validly
authorized and issued, fully paid, non-assessable and freely tradable Common Stock of the Principal
Party (as such term is hereinafter defined) not subject to any liens, encumbrances, rights of first
refusal or other adverse claims, as shall be equal to the result obtained by (x) multiplying the
then current Purchase Price by the number of one one-thousandth of a share of Preferred Stock for
which a Right was exercisable immediately prior to the first occurrence of a Trigger Event (as
subsequently adjusted pursuant to Sections 11.1.1, 11.2, 11.3,
11.8, 11.9 and 11.12) and (y) dividing that product by 50% of the then
current per share market price of the Common Stock of such Principal Party (determined pursuant to
Section 11.4) on the date of consummation of such consolidation, merger, sale or transfer;
provided that the price per Right so payable and the number of shares of Common Stock of such
Principal Party so receivable upon exercise of a Right shall thereafter be subject to further
adjustment as appropriate in accordance with Section 11.6 to reflect any events covered
thereby occurring in respect of the Common Stock of such Principal Party after the occurrence of
such consolidation, merger, sale or transfer; (ii) such Principal Party shall thereafter be liable
for, and shall assume, by virtue and operation of such consolidation, merger, sale or transfer, all
of the obligations and duties of the Company pursuant to this Agreement; (iii) the term “Company”
shall thereafter be deemed to refer to such Principal Party; and (iv) such Principal Party shall
take such steps (including, but not limited to, the reservation of a sufficient number of shares of
its Common Stock in accordance with Section 9) in connection with such consummation as may
be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as

22

 

reasonably may be, in relation to its Common Stock thereafter deliverable upon the exercise of
the Rights; provided that, upon the subsequent occurrence of any consolidation, merger, sale or
transfer of assets or other extraordinary transaction in respect of such Principal Party, each
holder of a Right shall thereupon be entitled to receive, upon exercise of a Right and payment of
the Purchase Price as provided in this Section 13.1, such cash, shares, rights, warrants
and other property which such holder would have been entitled to receive had such holder, at the
time of such transaction, owned the Common Stock of the Principal Party receivable upon the
exercise of a Right pursuant to this Section 13.1, and such Principal Party shall take such
steps (including, but not limited to, reservation of shares of stock) as may be necessary to permit
the subsequent exercise of the Rights in accordance with the terms hereof for such cash, shares,
rights, warrants and other property. The Company shall not consummate any such consolidation,
merger, sale or transfer unless prior thereto the Company and such Principal Party shall have
executed and delivered to the Rights Agent a supplemental agreement confirming (i) that the
requirements of this Section 13.1 and Section 13.2 shall promptly be performed in
accordance with their terms, (ii) that the Principal Party has assumed all the duties,
responsibilities and obligations that the Company owes to the Rights Agent under this Agreement,
and (iii) that such consolidation, merger, sale or transfer of assets shall not result in a default
by the Principal Party under this Agreement as the same shall have been assumed by the Principal
Party pursuant to this Section 13.1 and Section 13.2 and providing that, as soon as
practicable after executing such agreement pursuant to this Section 13, the Principal
Party, at its own expense, shall:

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

          (2) use its best efforts, if the Common Stock of the Principal Party shall be listed or
admitted to trading on the NASDAQ or on another national securities exchange, to list or admit to
trading (or continue the listing of) the Rights and the securities purchasable upon exercise of the
Rights on the NASDAQ or such securities exchange;

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

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

          In case the Principal Party has a provision in any of its authorized securities or in its
articles or certificate of incorporation or by-laws or other instrument governing its corporate
affairs, which would have the effect of (i) causing such Principal Party to issue (other than to
holders of Rights pursuant to this Section 13), in connection with, or as a consequence of,
the consummation of a transaction referred to in this Section 13, Common Stock or common
stock

23

 

equivalents of such Principal Party at less than the then current market price per share
thereof (determined pursuant to Section 11.4) or securities exercisable for, or convertible
into, Common Stock or common stock equivalents of such Principal Party at less than such then
current market price (other than to holders of Rights pursuant to this Section 13), or (ii)
providing for any special payment, taxes, charges or similar provision in connection with the
issuance of the Common Stock of such Principal Party pursuant to the provision of Section
13, then, in such event, the Company hereby agrees with each holder of Rights that it shall not
consummate any such transaction unless prior thereto the Company and such Principal Party shall
have executed and delivered to the Rights Agent a supplemental agreement providing that the
provision in question of such Principal Party shall have been canceled, waived or amended, or that
the authorized securities shall be redeemed, so that the applicable provision will have no effect
in connection with, or as a consequence of, the consummation of the proposed transaction.

          The Company covenants and agrees that it shall not, at any time after the Trigger Event, enter
into any transaction of the type described in clauses (A) through (C) of this Section 13.1
if (i) at the time of or immediately after such consolidation, merger, sale, transfer or other
transaction there are any rights, warrants or other instruments or securities outstanding or
agreements in effect which would substantially diminish or otherwise eliminate the benefits
intended to be afforded by the Rights, (ii) prior to, simultaneously with or immediately after such
consolidation, merger, sale, transfer or other transaction, the stockholders of the Person who
constitutes, or would constitute, the Principal Party for purposes of Section 13.2 shall
have received a distribution of Rights previously owned by such Person or any of its Affiliates or
Associates or (iii) the form or nature of organization of the Principal Party would preclude or
limit the exercisability of the Rights. The provisions of this Section 13 shall similarly
apply to successive transactions of the type described in clauses (A) through (C) of this
Section 13.1.

          13.2. Principal Party. “Principal Party” shall mean:

               (i) in the case of any transaction described in clauses (A) or (B) of the first sentence of
Section 13.1: (i) the Person that is the issuer of the securities into which the Common
Stock is converted in such merger or consolidation, or, if there is more than one such issuer, the
issuer the Common Stock of which has the greatest aggregate market value of shares outstanding, or
(ii) if no securities are so issued, (x) the Person that is the other party to the merger, if such
Person survives said merger, or, if there is more than one such Person, the Person the Common Stock
of which has the greatest aggregate market value of shares outstanding or (y) if the Person that is
the other party to the merger does not survive the merger, the Person that does survive the merger
(including the Company if it survives) or (z) the Person resulting from the consolidation; and

               (ii) in the case of any transaction described in clause (C) of the first sentence in
Section 13.1, the Person that is the party receiving the greatest portion of the assets or
earning power transferred pursuant to such transaction or transactions, or, if each Person that is
a party to such transaction or transactions receives the same portion of the assets or earning
power so transferred or if the Person receiving the greatest portion of the assets or earning power
cannot be determined, whichever of such Persons is the issuer of Common Stock having the greatest
aggregate market value of shares outstanding; provided, however, that in any such case described in
the foregoing clause (i) or (ii) of this Section 13.2, if the shares of Common Stock of

24

 

such Person are not at such time or have not been continuously over the preceding 12-month
period registered under Section 12 of the Exchange Act, then (1) if such Person is a direct or
indirect Subsidiary of another Person the shares of Common Stock of which are and have been so
registered, the term “Principal Party” shall refer to such other Person, or (2) if such Person is a
Subsidiary, directly or indirectly, of more than one Person, the shares of Common Stock of all of
which are and have been so registered, the term “Principal Party” shall refer to whichever of such
Persons is the issuer of Common Stock having the greatest aggregate market value of shares
outstanding, or (3) if such Person is owned, directly or indirectly, by a joint venture formed by
two or more Persons that are not owned, directly or indirectly, by the same Person, the rules set
forth in clauses (1) and (2) above shall apply to each of the owners having an interest in the
venture as if the Person owned by the joint venture was a Subsidiary of both or all of such joint
venturers, and the Principal Party in each such case shall bear the obligations set forth in this
Section 13 in the same ratio as its interest in such Person bears to the total of such
interests.

          13.3. Approved Acquisitions. Notwithstanding anything contained herein to the
contrary, upon the consummation of any merger or other acquisition transaction of the type
described in clause (A), (B) or (C) of Section 13.1 involving the Company pursuant to a
merger or other acquisition agreement between the Company and any Person (or one or more of such
Person’s Affiliates or Associates) which agreement has been approved by the Board prior to any
Person becoming an Acquiring Person, this Agreement and the rights of holders of Rights hereunder
shall be terminated in accordance with Section 7.1.

          Section 14. Fractional Rights and Fractional Shares.

          14.1. Cash in Lieu of Fractional Rights. The Company shall not be required to issue
fractions of Rights or to distribute Right Certificates which evidence fractional Rights (except
prior to the Distribution Date in accordance with Section 11.15). In lieu of such
fractional Rights, there shall be paid to the registered holders of the Right Certificates with
regard to which such fractional Rights would otherwise be issuable an amount in cash equal to the
same fraction of the current market value of a whole Right. For the purposes of this Section
14.1, the current market value of a whole Right shall be the closing price of the Rights for
the Trading Day immediately prior to the date on which such fractional Rights would have been
otherwise issuable. The closing price for any day shall be the last sale price, regular way, or,
in case no such sale takes place on such day, the average of the closing bid and asked prices,
regular way, in either case as reported in the principal consolidated transaction reporting system
with respect to securities listed or admitted to trading on the NASDAQ or, if the Rights are not
listed or admitted to trading on the NASDAQ, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national securities exchange on
which the Rights are listed or admitted to trading or, if the Rights are not listed or admitted to
trading on any national securities exchange, the last quoted price or, if not so quoted, the
average of the high bid and low asked prices in the over-the-counter market, as reported by the
NASDAQ or such other system then in use or, if on any such date the Rights are not quoted by any
such organization, the average of the closing bid and asked prices as furnished by a professional
market maker making a market in the Rights selected by the Board. If on any such date no such
market maker is making a market in the Rights, the current market value of the Rights on such date
shall be the fair value of the Rights as determined in good faith by the Board, or, if at the time
of such determination there is an Acquiring Person, by a nationally recognized

25

 

investment banking firm selected by the Board, which shall have the duty to make such
determination in a reasonable and objective manner, which determination shall be described in a
statement filed with the Rights Agent and shall be conclusive for all purposes.

          14.2. Cash in Lieu of Fractional Shares of Preferred Stock. The Company shall not be
required to issue fractions of shares of Preferred Stock (other than fractions which are integral
multiples of one one-thousandth of a share of Preferred Stock) upon exercise or exchange of the
Rights or to distribute certificates which evidence fractional shares of Preferred Stock (other
than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock).
Interests in fractions of shares of Preferred Stock in integral multiples of one one-thousandth of
a share of Preferred Stock may, at the election of the Company, be evidenced by depositary
receipts, pursuant to an appropriate agreement between the Company and a depositary selected by it;
provided, that such agreement shall provide that the holders of such depositary receipts shall have
all the rights, privileges and preferences to which they are entitled as Beneficial Owners of the
Preferred Stock represented by such depositary receipts. In lieu of fractional shares of Preferred
Stock that are not integral multiples of one one-thousandth of a share of Preferred Stock, the
Company shall pay to the registered holders of Right Certificates at the time such Rights are
exercised or exchanged as herein provided an amount in cash equal to the same fraction of the
current per share market price of one share of Preferred Stock (as determined in accordance with
Section 14.1) for the Trading Day immediately prior to the date of such exercise or
exchange.

          14.3. Cash in Lieu of Fractional Shares of Common Stock. The Company shall not be
required to issue fractions of shares of Common Stock or to distribute certificates which evidence
fractional shares of Common Stock upon the exercise or exchange of Rights. In lieu of such
fractional shares of Common Stock, the Company shall pay to the registered holders of the Right
Certificates with regard to which such fractional shares of Common Stock would otherwise be
issuable an amount in cash equal to the same fraction of the current market value of a whole share
of Common Stock (as determined in accordance with Section 14.1) for the Trading Day
immediately prior to the date of such exercise or exchange.

          14.4. Waiver of Right to Receive Fractional Rights or Shares. The holder of a Right
by the acceptance of the Rights expressly waives his right to receive any fractional Rights or any
fractional shares upon exercise or exchange of a Right, except as permitted by this Section
14.

          14.5. Provision of Notice and Monies to Rights Agent. Whenever a payment for
fractional Rights or fractional shares is to be made by the Rights Agent, the Company shall (i)
promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail
the facts related to such payments and the prices and/or formulas utilized in calculating such
payments, and (ii) provide sufficient monies to the Rights Agent in the form of fully collected
funds to make such payments. The Rights Agent shall be fully protected in relying upon such a
certificate and shall have no duty with respect to, and shall not be deemed to have knowledge of
any payment for fractional Rights or fractional shares under any Section of this Agreement relating
to the payment of fractional Rights or fractional shares unless and until the Rights Agent shall
have received such a certificate and sufficient monies.

26

 

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

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

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

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

          (c) the Company and the Rights Agent may deem and treat the Person in whose name the
Right Certificate (or, prior to the Distribution Date, the associated Common Stock
certificate or Book Entry Share) is registered as the absolute owner thereof and of the
Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Right
Certificates or the associated Common Stock certificate made by anyone other than the
Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the
Rights Agent shall be affected by any notice to the contrary; and

          (d) notwithstanding anything in this Agreement to the contrary, neither the Company nor
the Rights Agent shall have any liability to any holder of a Right or other Person as a
result of its inability to perform any of its obligations under this Agreement by reason of
any preliminary or permanent injunction or other order, 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.

27

 

          Section 17. Right Certificate Holder Not Deemed a Stockholder. No holder, as such, of
any Right Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the
holder of the Preferred Stock or any other securities of the Company which may at any time be
issuable on the exercise of the Rights represented thereby, nor shall anything contained herein or
in any Right Certificate be construed to confer upon the holder of any Right Certificate, as such,
any of the rights of a stockholder of the Company or any right to vote for the election of
directors or upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in Section 24), or to receive dividends or subscription
rights, or otherwise, until the Right or Rights evidenced by such Right Certificate shall have been
exercised in accordance with the provisions hereof.

          Section 18. Concerning the Rights Agent. The Company agrees to pay to the Rights
Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on
demand of the Rights Agent, its reasonable expenses, counsel fees and expenses, and other
disbursements incurred in the preparation, delivery, amendment, administration and execution of
this Agreement and the exercise and performance of its duties hereunder. The Company also agrees
to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, 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 (which gross negligence, bad faith or willful
misconduct must be determined by a final, non-appealable judgment of a court of competent
jurisdiction), for any action taken, suffered or omitted by the Rights Agent in connection with the
acceptance, administration, exercise and performance of its duties under this Agreement. To the
extent that the Rights Agent is successful in an action to enforce its right to indemnification,
the costs and expenses incurred in enforcing this right of indemnification shall be paid by the
Company. The provisions of this Section 18 and Section 20 below shall survive the termination of
this Agreement, the exercise or expiration of the Rights and the resignation, replacement or
removal of the Rights Agent.

          The Rights Agent shall be 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 and the exercise and performance of its duties hereunder, in
reliance upon any Right Certificate or certificate for the Preferred Stock or the Common Stock or
for other securities of the Company, instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper
or document believed by it to be genuine and to be signed, executed and, where necessary, verified
or acknowledged, by the proper Person or Persons, or otherwise upon the advice of counsel as set
forth in Section 20 hereof. The Rights Agent shall not be deemed to have knowledge of any
event of which it was supposed to receive 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.

          Section 19. Merger or Consolidation or Change of Name of Rights Agent. 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 shall be a party, or any Person succeeding to the

28

 

shareowner services or stock transfer business of the Rights Agent or any successor Rights
Agent, shall be the successor to the Rights Agent under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties hereto, provided that such
Person would be eligible for appointment as a successor Rights Agent under the provisions of
Section 21. In case at the time such successor Rights Agent shall succeed to the agency created by
this Agreement, any of the Right Certificates shall have been countersigned but not delivered, any
such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and
deliver such Right Certificates so countersigned; and in case at that time any of the Right
Certificates shall not have been countersigned, any successor Rights Agent may countersign such
Right Certificates either in the name of the predecessor Rights Agent or in the name of the
successor Rights Agent; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

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

          Section 20. Duties of Rights Agent. The Rights Agent undertakes to perform only the
duties and obligations expressly imposed by this Agreement (and no implied duties or obligations)
upon the following terms and conditions, by all of which the Company and the holders of Right
Certificates, by their acceptance thereof, shall be bound:

          20.1. Legal Counsel. The Rights Agent may consult with legal counsel (who may be
legal counsel for the Company or an employee of the Rights Agent), and the advice or opinion of
such counsel shall be full and complete authorization and protection to the Rights Agent and the
Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted by
it in the absence of bad faith and in accordance with such advice or opinion.

          20.2. Certificates as to Facts or Matters. Whenever in the performance of its duties
under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter
be proved or established by the Company prior to taking, suffering or omitting to take any action
hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and established by a certificate signed by any
one of the President and Chief Executive Officer, the Chief Operating Officer, the Executive Vice
President and Chief Financial Officer, or the Senior Vice President, General Counsel and Secretary
of the Company and delivered to the Rights Agent; and such certificate shall be full and complete
authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for
or in respect of any action taken, suffered or omitted to be taken in the absence of bad faith by
it under the provisions of this Agreement in reliance upon such certificate.

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

29

 

(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
aggregate amount of twenty-four (24) times the monthly administrative fees paid by the Company to
the Rights Agent.

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

          20.5. No Responsibility as to Certain Matters. The Rights Agent shall not have any
liability for or be under any responsibility in respect of the validity of this Agreement or the
execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect
of the validity or execution of any Right Certificate (except its countersignature thereof); nor
shall it be responsible for any breach by the Company of any covenant or condition contained in
this Agreement or in any Right Certificate; nor shall it be responsible for any change in the
exercisability of the Rights (including but not limited to the Rights becoming null and void
pursuant to Section 11.1.2) or any change or adjustment in the terms of the Rights
(including but not limited to any adjustment required under the provisions of Sections 3,
11, 13, 23 or 27) or responsible for the manner, method or amount
of any such change or adjustment or the ascertaining of the existence of facts that would require
any such change or adjustment (except with respect to the exercise of Rights evidenced by Right
Certificates after receipt of the certificate described in Section 12 hereof, upon which the Rights
Agent may rely; nor shall it by any act hereunder be deemed to make any representation or warranty
as to the authorization or reservation of any Preferred Stock or other securities to be issued
pursuant to this Agreement or any Right Certificate or as to whether any Preferred Stock will, when
so issued, be validly authorized and issued, fully paid and nonassessable.

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

          20.7. Authorized Company Officers. The Rights Agent is hereby authorized and directed
to accept instructions with respect to the performance of its duties hereunder from any one of the
President and Chief Executive Officer, the Chief Operating Officer, the Executive Vice President
and Chief Financial Officer and the Senior Vice President, General Counsel and Secretary of the
Company, and to apply to such officers 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

30

 

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. The Rights Agent may apply
for written instructions from the Company and any such application by the Rights Agent for such
written instructions may, at the option of the Rights Agent, set forth in writing any action
proposed to be taken, suffered or omitted to be taken 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 Company actually receives such application, unless any such officer shall
have consented in writing to an earlier date) unless, prior to taking any such action (or the
effective date in the case of an omission), the Rights Agent shall have received written
instructions in response to such application specifying the action to be taken, suffered or
omitted.

          20.8. Freedom to Trade in Company Securities. The Rights Agent and any stockholder,
Affiliate, director, officer or employee of the Rights Agent may buy, sell or deal in any of the
Rights or other securities of the Company or take a pecuniary interest in any transaction in which
the Company may be interested, or contract with or lend money to the Company or otherwise act as
fully and freely as though the Rights Agent were not Rights Agent under this Agreement. Nothing
herein shall preclude the Rights Agent or any such stockholder, Affiliate, director, officer or
employee from acting in any other capacity for the Company or for any other Person.

          20.9. Reliance on Attorneys and Agents. 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, default, neglect or misconduct of any
such attorneys or agents or for any loss to the Company or any other Person resulting from any such
act, default, neglect or misconduct, 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).

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

          20.11. Rights Holders List. At any time and from time to time after the Distribution
Date, upon the request of the Company, the Rights Agent shall promptly deliver to the Company a
list, as of the most recent practicable date (or as of such earlier date as may be specified by the
Company), of the holders of record of Rights.

31

 

          20.12. Referenced Agreements. The Rights Agent shall not be subject to, nor be
required to comply with, or determine if any Person has complied with, the SPA or any Transaction
Document (as defined in the SPA) or any other agreement between or among the parties thereto, even
though reference thereto may be made in this Agreement, or to determine any calculation set forth
in the SPA or any Transaction Document or to determine whether any condition set forth in the SPA
has been met, or to comply with any notice, instruction, direction, request or other communication,
paper or document other than as expressly set forth in this Agreement.

          20.13. Risk of Repayment. 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 it believes that repayment of
such funds or adequate indemnification against such risk or liability is not reasonably assured to
it.

          Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent
may resign and be discharged from its duties under this Agreement upon thirty (30) days’ notice in
writing mailed to the Company and to each transfer agent of the Common Stock and/or Preferred Stock
known to the Rights Agent, as applicable, by registered or certified mail. Following the
Distribution Date, the Company shall promptly notify the holders of the Right Certificates by
first-class mail of any such resignation. The Company may remove the Rights Agent or any successor
Rights Agent upon thirty (30) days’ notice in writing, mailed to the Rights Agent or successor
Rights Agent, as the case may be, and to each transfer agent of the Common Stock and/or Preferred
Stock, as applicable, by registered or certified mail, and to the holders of the Right Certificates
by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become
incapable of acting, the resigning, removed, or incapacitated Rights Agent shall remit to the
Company, or to any successor Rights Agent designated by the Company, all books, records, funds,
certificates or other documents or instruments of any kind then in its possession which were
acquired by such resigning, removed or incapacitated Rights Agent in connection with its services
as Rights Agent hereunder, and shall thereafter be discharged from all duties and obligations
hereunder; provided, however, that notwithstanding anything in this Agreement to the contrary, the
Rights Agent may retain a copy of such books, records, funds, certificates or other documents or
instruments to the extent necessary to meet legal, audit or regulatory requirements, including
applicable law and internal retention policies. Following notice of such removal, resignation or
incapacity, the Company shall appoint a successor to such Rights Agent. If the Company shall fail
to make such appointment within a period of thirty (30) days after giving notice of such removal or
after it has been notified in writing of such resignation or incapacity by the resigning or
incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with such notice,
submit his Right Certificate for inspection by the Company), then the registered holder of any
Right Certificate may apply to any court of competent jurisdiction for the appointment of a new
Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court,
shall be (a) a Person organized and doing business under the laws of the United States (or any
state of the United States), in good standing, which is authorized under such laws to exercise
stock transfer powers and is subject to supervision or examination by Federal or state authority
and which has at the time of its appointment as Rights Agent a combined capital and surplus of at
least $50 million or (b) an Affiliate of such a Person. After appointment, the successor Rights
Agent shall be vested

32

 

with the same powers, rights, duties and responsibilities as if it had been originally named
as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and
transfer to the successor Rights Agent any property at the time held by it hereunder, and execute
and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later
than the effective date of any such appointment the Company shall file notice thereof in writing
with the predecessor Rights Agent and each transfer agent of the Common Stock and/or Preferred
Stock, as applicable, and, following the Distribution Date, mail a notice thereof in writing to the
registered holders of the Right Certificates. Failure to give any notice provided for in this
Section 21, however, or any defect therein, shall not affect the legality or validity of the
resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the
case may be.

          Section 22. Issuance of New Right Certificates. Notwithstanding any of the provisions
of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right
Certificates evidencing Rights in such form as may be approved by its Board to reflect any
adjustment or change in the Purchase Price and the number or kind or class of shares or other
securities or property purchasable under the Right Certificates made in accordance with the
provisions of this Agreement. In addition, in connection with the issuance or sale of Common Stock
following the Distribution Date and prior to the Expiration Date, the Company shall, with respect
to Common Stock so issued or sold pursuant to the exercise of stock options or under any employee
plan or arrangement, granted or awarded, or upon exercise, conversion or exchange of securities
hereinafter issued by the Company, in each case existing prior to the Distribution Date, issue
Right Certificates representing the appropriate number of Rights in connection with such issuance
or sale; provided, however, that (i) no such Right Certificate shall be issued if, and to the
extent that, the Company shall be advised by counsel that such issuance would create a significant
risk of material adverse tax consequences to the Company or the Person to whom such Right
Certificate would be issued and (ii) no such Right Certificate shall be issued if, and to the
extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof.

          Section 23. Redemption.

          23.1. Right to Redeem. The Board may, at its option, at any time prior to a Trigger
Event, redeem all but not less than all of the then outstanding Rights at a redemption price of
$0.001 per Right, appropriately adjusted to reflect any stock split, stock dividend,
recapitalization or similar transaction occurring after the date hereof (such redemption price
being hereinafter referred to as the “Redemption Price”), and the Company may, at its option, pay
the Redemption Price in Common Stock (based on the “current per share market price,” determined
pursuant to Section 11.4, of the Common Stock at the time of redemption), cash or any other
form of consideration deemed appropriate by the Board. The redemption of the Rights by the Board
may be made effective at such time, on such basis and subject to such conditions as the Board in
its sole discretion may establish.

          23.2. Redemption Procedures. Immediately upon the action of the Board ordering the
redemption of the Rights (or at such later time as the Board may establish for the effectiveness of
such redemption), and without any further action and without any notice, the right to exercise the
Rights will terminate and the only right thereafter of the holders of Rights

33

 

shall be to receive the Redemption Price for each Right so held. The Company shall promptly
give public notice of any such redemption (with prompt written notices thereof to the Rights
Agent); provided, however, that the failure to give, or any defect in, any such notice shall not
affect the validity of such redemption. The Company shall promptly give, or cause the Rights Agent
to give, notice of such redemption to the holders of the then outstanding Rights by mailing such
notice to all such holders at their last addresses as they appear upon the registry books of the
Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for
the Common Stock. Any notice which is mailed in the manner herein provided shall be deemed given,
whether or not the holder receives the notice. Each such notice of redemption shall state the
method by which the payment of the Redemption Price will be made. Neither the Company nor any of
its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in
any manner other than that specifically set forth in this Section 23 or in Section
27, and other than in connection with the purchase, acquisition or redemption of Common Stock
prior to the Distribution Date.

          Section 24. Notice of Certain Events. In case the Company shall propose at any time
after the earlier of the Stock Acquisition Date and the Distribution Date (a) to pay any dividend
payable in stock of any class to the holders of Preferred Stock or to make any other distribution
to the holders of Preferred Stock (other than a regular periodic cash dividend at a rate not in
excess of 125% of the rate of the last regular periodic cash dividend theretofore paid or, in case
regular periodic cash dividends have not theretofore been paid, at a rate not in excess of 50% of
the average net income per share of the Company for the four quarters ended immediately prior to
the payment of such dividends, or a stock dividend on, or a subdivision, combination or
reclassification of the Common Stock), or (b) to offer to the holders of Preferred Stock rights or
warrants to subscribe for or to purchase any additional Preferred Stock or shares of stock of any
class or any other securities, rights or options, or (c) to effect any reclassification of its
Preferred Stock (other than a reclassification involving only the subdivision of outstanding
Preferred Stock), or (d) to effect any consolidation or merger into or with, or to effect any sale
or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other
transfer), in one or more transactions, of 50% or more of the assets or earning power of the
Company and its Subsidiaries (taken as a whole) to, any other Person (other than pursuant to a
merger or other acquisition agreement of the type excluded from the definition of “Beneficial
Ownership” in Section 1.3), or (e) to effect the liquidation, dissolution or winding up of
the Company, or (f) to declare or pay any dividend on the Common Stock payable in Common Stock or
to effect a subdivision, combination or consolidation of the Common Stock (by reclassification or
otherwise than by payment of dividends in Common Stock), then, in each such case, the Company shall
give to the Rights Agent and to each holder of a Right Certificate, in accordance with Section
25, a notice of such proposed action, which shall specify the record date for the purposes of
such stock dividend, distribution of rights or warrants, or the date on which such
reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is
to take place and the date of participation therein by the holders of the Preferred Stock and/or
Common Stock, if any such date is to be fixed, and such notice shall be so given in the case of any
action covered by clause (a) or (b) above at least ten (10) days prior to the record date for
determining holders of the Preferred Stock for purposes of such action, and in the case of any such
other action, at least ten (10) days prior to the date of the taking of such proposed action or the
date of participation therein by the holders of the Preferred Stock and/or Common Stock, whichever
shall be the earlier.

34

 

          In case any event set forth in Section 11.1.2 or Section 13 shall occur, then,
in any such case, (i) the Company shall as soon as practicable thereafter give to the Rights Agent
and to each holder of a Right Certificate, in accordance with Section 25, a notice of the
occurrence of such event, which notice shall describe the event and the consequences of the event
to holders of Rights under Section 11.1.2 and Section 13, and (ii) all references
in this Section 24 to Preferred Stock shall be deemed thereafter to refer to Common Stock
and/or, if appropriate, other securities.

          Section 25. Notices. Notices or demands authorized by this Agreement to be given or
made by the Rights Agent or by the holder of any Right Certificate to or on the Company shall be
sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another
address is filed in writing with the Rights Agent) as follows:

GeoEye, Inc.

2325 Dulles Corner Blvd

Herndon, VA 20171

Attention: William L. Warren, Executive Vice President,

General Counsel and Secretary

Subject to the provisions of Section 21 and Section 24, any notice or demand
authorized by this Agreement to be given or made by the Company or by the holder of any Right
Certificate to or on the Rights Agent shall be sufficiently given or made if sent by first-class
mail, postage prepaid, addressed (until another address is filed in writing with the Company) as
follows:

Mellon Investor Services LLC

500 Ross St.

AIM 154-0690

Pittsburgh, PA 15262

Attention: Relationship Manager

with a copy to:

Mellon Investor Services LLC

Newport Office Center VII

480 Washington Blvd.

Jersey City, NJ 07310

Attention: Legal Department

Notices or demands authorized by this Agreement to be given or made by the Company or the Rights
Agent to the holder of any Right Certificate (or, prior to the Distribution Date, to the holder of
any certificate representing Common Stock or of any Book Entry Shares) shall be sufficiently given
or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of
such holder as shown on the registry books of the Company; provided that prior to the Distribution
Date a filing by the Company with the Securities and Exchange Commission shall constitute
sufficient notice to the holders of securities of the Company, including the Rights (but not the
Rights Agent), for purposes of this Agreement and no other notice need be given.

35

 

          Section 26. Supplements and Amendments. For so long as the Rights are then
redeemable, the Company may in its sole and absolute discretion supplement or amend any provision
of this Agreement in any respect without the approval of any holders of Rights or Common Stock.
From and after the time that the Rights are no longer redeemable, the Company may from time to time
supplement or amend this Agreement without the approval of any holders of Rights (i) to cure any
ambiguity or to correct or supplement any provision contained herein which may be defective or
inconsistent with any other provisions herein or (ii) to make any other changes or provisions in
regard to matters or questions arising hereunder which the Company may deem necessary or desirable,
including but not limited to extending the Final Expiration Date, and each such supplement or
amendment shall be evidenced by a writing signed by the Company and, subject to the next sentence
of this Section 26, the Rights Agent; provided, however, that no such supplement or
amendment shall adversely affect the interests of the holders of Rights as such (other than an
Acquiring Person or an Affiliate or Associate of an Acquiring Person), and no such supplement or
amendment may cause the Rights again to become redeemable or cause this Agreement again to become
amendable as to an Acquiring Person or an Affiliate or Associate of an Acquiring Person, other than
in accordance with this sentence; provided further, that the right of the Board to extend the
Distribution Date shall not require any amendment or supplement hereunder. Upon the delivery of a
certificate from an appropriate officer of the Company, which states that the proposed supplement
or amendment is in compliance with the terms of this Section 26, the Rights Agent shall
execute such supplement or amendment, provided that any supplement or amendment that does not amend
Sections 18, 19, 20 or 21 hereof or this Section 26 or any
other Section of this Agreement in a manner that affects the rights, duties, obligations or
immunities of the Rights Agent shall become effective immediately upon execution by the Company,
whether or not also executed by the Rights Agent, and the Company shall promptly provide the Rights
Agent with written notice of such supplement or amendment. Notwithstanding anything 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.

          Section 27. Exchange.

          27.1. Exchange of Common Stock for Rights. The Board may, at its option, at any time
after the occurrence of a Trigger Event, exchange Common Stock for all or part of the then
outstanding Rights (which shall not include Rights that have become null and void pursuant to the
provisions of Section 11.1.2) by exchanging at an exchange ratio of one share of Common Stock per
Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such amount per Right being hereinafter referred to as the
“Exchange Consideration”). Notwithstanding the foregoing, the Board shall not be empowered to
effect such exchange at any time after any Acquiring Person shall have become the Beneficial Owner
of 50% or more of the Common Stock then outstanding. From and after the occurrence of an event
specified in Section 13.1, any Rights that theretofore have not been exchanged pursuant to this
Section 27.1 shall thereafter be exercisable only in accordance with Section 13 and may not be
exchanged pursuant to this Section 27.1. The exchange of the Rights by the Board may be made
effective at such time, on such basis and with such conditions as the Board in its sole discretion
may establish. Without limiting the foregoing, prior to effecting an exchange pursuant to this
Section 27, the Board may direct the Company to enter into a Trust Agreement in such form and with
such terms as the Board shall then approve (the “Trust

36

 

Agreement”). If the Board so directs, the Company shall enter into the Trust Agreement and
shall issue to the trust created by such agreement (the “Trust”) all of the Common Stock issuable
pursuant to the exchange (or any portion thereof that have not theretofore been issued in
connection with the exchange). From and after the time at which such shares are issued to the
Trust, all stockholders then entitled to receive shares pursuant to the exchange shall be entitled
to receive such shares (and any dividends or distributions made thereon after the date on which
such shares are deposited in the Trust) only from the Trust and solely upon compliance with the
relevant terms and provisions of the Trust Agreement. Any Common Stock issued at the direction of
the Board in connection herewith shall be validly issued, fully paid and nonassessable Common Stock
or Preferred Stock (as the case may be), and the Company shall be deemed to have received as
consideration for such issuance a benefit having a value that is at least equal to the aggregate
par value of the shares so issued.

          27.2. Exchange Procedures. Immediately upon the effectiveness of the action of the
Board ordering the exchange for any Rights pursuant to Section 27.1 and without any further
action and without any notice, the right to exercise such Rights shall terminate and the only right
thereafter of a holder of such Rights shall be to receive the Exchange Consideration. The Company
shall promptly give public notice of any such exchange (with prompt written notice thereof to the
Rights Agent); provided, however, that the failure to give, or any defect in, such notice shall not
affect the validity of such exchange. The Company promptly shall mail a notice of any such
exchange to all of the holders of such Rights at their last addresses as they appear upon the
registry books of the Rights Agent. Any notice which is mailed in the manner herein provided shall
be deemed given, whether or not the holder receives the notice. Each such notice of exchange shall
state the method by which the exchange of the Common Stock for Rights will be effected and, in the
event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange
shall be effected pro rata based on the number of Rights (other than the Rights that have become
null and void pursuant to the provisions of Section 11.1.2) held by each holder of Rights.

          27.3. Insufficient Shares. The Company may at its option substitute, and, in the
event that there shall not be sufficient Common Stock issued but not outstanding or authorized but
unissued to permit an exchange of Rights for Common Stock as contemplated in accordance with this
Section 27, the Company shall substitute to the extent of such insufficiency, for each
share of Common Stock that would otherwise be issuable upon exchange of a Right, a number of shares
of Preferred Stock or fraction thereof (or equivalent preferred stock, as such term is defined in
Section 11.2) such that the current per share market price (determined pursuant to
Section 11.4) of one share of Preferred Stock (or equivalent preferred share) multiplied by
such number or fraction is equal to the current per share market price of one share of Common Stock
(determined pursuant to Section 11.4) as of the date of such exchange.

          Section 28. Process to Seek Exemption. Any Person who desires to effect any
acquisition of Common Stock that would, if consummated, result in such Person beneficially owning
19.99% or more of the then outstanding Common Stock (or, in the case of an Existing Holder,
additional shares of Common Stock) (a “Requesting Person”) may, prior to the Stock Acquisition Date
and in accordance with this Section 28, request that the Board grant an exemption with respect to
such acquisition under this Agreement so that such Person would be deemed to be an “Exempt Person”
for purposes of this Agreement (an “Exemption Request”).

37

 

An Exemption Request shall be in proper form and shall be delivered by registered mail, return
receipt requested, to the Secretary of the Company at the principal executive office of the
Company. The Exemption Request shall be deemed made upon receipt by the Secretary of the Company.
To be in proper form, an Exemption Request shall set forth (i) the name and address of the
Requesting Person, (ii) the number and percentage of shares of Common Stock then Beneficially Owned
by the Requesting Person, together with all Affiliates and Associates of the Requesting Person, and
(iii) a reasonably detailed description of the transaction or transactions by which the Requesting
Person would propose to acquire Beneficial Ownership of Common Stock aggregating 4.99% or more of
the then outstanding Common Stock and the maximum number and percentage of shares of Common Stock
that the Requesting Person proposes to acquire. The Board shall make a determination whether to
grant an exemption in response to an Exemption Request as promptly as practicable (and, in any
event, within ten (10) Business Days) after receipt thereof; provided, that the failure of the
Board to make a determination within such period shall be deemed to constitute the denial by the
Board of the Exemption Request. The Requesting Person shall respond promptly to reasonable and
appropriate requests for additional information from the Board and its advisors to assist the Board
in making its determination. Any exemption granted hereunder may be granted in whole or in part,
and may be subject to limitations or conditions (including a requirement that the Requesting Person
agree that it will not acquire Beneficial Ownership of shares of Common Stock in excess of the
maximum number and percentage of shares approved by the Board). Any Exemption Request may be
submitted on a confidential basis and, except to the extent required by applicable law, the Company
shall maintain the confidentiality of such Exemption Request and the Board’s determination with
respect thereto, unless the information contained in the Exemption Request or the Board’s
determination with respect thereto otherwise becomes publicly available. The Exemption Request
shall be considered and evaluated by directors serving on the Board, or a duly constituted
committee thereof, who are independent of the Company and the Requesting Person and disinterested
with respect to the Exemption Request, and the action of a majority of such independent and
disinterested directors shall be deemed to be the determination of the Board for purposes of such
Exemption Request.

          Section 29. Successors. All the covenants and provisions of this Agreement by or for
the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their
respective successors and assigns hereunder.

          Section 30. Benefits of this Agreement. Nothing in this Agreement shall be construed
to give to any Person or corporation other than the Company, the Rights Agent and the registered
holders of the Right Certificates (and, prior to the Distribution Date, the Common Stock) any legal
or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole
and exclusive benefit of the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, the Common Stock).

          Section 31. Determination and Actions by the Board or Committee Thereof. The Board,
or a duly authorized committee thereof, shall have the exclusive power and authority to administer
this Agreement and to exercise the rights and powers specifically granted to the Board or to the
Company, or as may be necessary or advisable in the administration of this Agreement, including,
without limitation, the right and power to (i) interpret the provisions of this Agreement and (ii)
make all determinations deemed necessary or advisable for the

38

 

administration of this Agreement (including, without limitation, a determination to redeem or
not redeem the Rights or amend this Agreement). In administering this Agreement and exercising the
rights and powers specifically granted to the Board and to the Company hereunder, and in
interpreting this Agreement and making any determination hereunder, the Board, or a duly authorized
committee thereof, may consider any and all facts, circumstances or information it deems to be
necessary, useful or appropriate to provide for the protection of the Company’s stockholders. All
such actions, calculations, interpretations and determinations that are done or made by the Board,
or a duly authorized committee thereof, in good faith shall be final, conclusive and binding on the
Company, the Rights Agent, the holders of the Rights, as such, and all other parties to the fullest
extent permitted by applicable law. The Rights Agent is entitled always to assume the Board, or
any duly authorized committee thereof, acted in good faith and shall be fully protected and incur
no liability in reliance thereon.

          Section 32. Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction or other authority to be invalid, null and
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this
Agreement shall remain in full force and effect and shall in no way be affected, impaired or
invalidated; provided, that if any such excluded term, provision, covenant or restriction shall
adversely affect the rights, immunities, duties or obligations of the Rights Agent, the Rights
Agent shall be entitled to resign immediately..

          Section 33. Governing Law. This Agreement and each Right Certificate issued hereunder
shall be deemed to be a contract made under the internal 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.

          Section 34. Counterparts. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to be an original, and
all such counterparts shall together constitute but one and the same instrument.

          Section 35. Descriptive Headings. Descriptive headings of the several Sections of
this Agreement are inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

          Section 36. Force Majeure. Notwithstanding anything to the contrary contained herein,
the Rights Agent shall not incur any liability for not performing, or a delay in the performance
of, any act, duty, obligation or responsibility by reason of any occurrence beyond the reasonable
control of the Rights Agent (including without limitation any act or provision of any present or
future law or regulation or governmental authority, any act of God, war, civil or military
disobedience or disorder, riot, rebellion, terrorism, insurrection, fire, earthquake, storm, flood,
strike, work stoppage, labor dispute, accident or failure or malfunction of any utilities, means of
communication or computer (software or hardware) services or similar occurrence).

          Section 37. Miscellaneous.

39

 

          37.1. Customer Identification Program. The Company acknowledges that the Rights Agent
is subject to the customer identification program (“Customer Identification Program”) requirements
under the USA PATRIOT Act and its implementing regulations, and that the Rights Agent must obtain,
verify and record information that allows the Rights Agent to identify the Company. Accordingly,
prior to accepting an appointment hereunder, the Rights Agent may request information from the
Company that will help the Rights Agent to identify the Company, including without limitation the
Company’s physical address, tax identification number, organizational documents, certificate of
good standing, license to do business, or any other information that the Rights Agent deems
necessary. The Company agrees that the Rights Agent cannot accept an appointment hereunder unless
and until the Rights Agent verifies the Company’s identity in accordance with the Customer
Identification Program requirements.

          37.2. Incentive Compensation Program. The Bank of New York Mellon Corporation
(“BNYM”) has adopted an incentive compensation program designed (i) to facilitate clients gaining
access to and being provided with explanations about the full range of products and services
offered by BNYM and its subsidiaries and (ii) to expand and develop client relationships. This
program may lead to the payment of referral fees and/or bonuses to employees of BNYM or its
subsidiaries who may have been involved in a referral that resulted in the execution of obtaining
of products or services by the Company covered by this Rights Agreement or which may be ancillary
or supplemental to such products or services. Any such referral fees or bonuses are funded solely
out of fees and commissions paid by the Company under this Rights Agreement or with respect to such
ancillary or supplemental products or services.

[Signature Page Follows]

40

 

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

	 	 	 	 	 
	 	GEOEYE, INC.

 	 
	 	By  	/s/  William L. Warren	 
	 	 	William L. Warren 	 
	 	 	Executive Vice President, General Counsel
And Secretary 	 
	 
	 	MELLON INVESTOR SERVICES LLC

 	 
	 	By  	/s/  Stephen Jones	 
	 	 	Name:  	Stephen Jones	 
	 	 	Title:  	Vice President	 

 

 

	 	 	 	 	 

EXHIBIT A

FORM OF

CERTIFICATE OF DESIGNATIONS

of

SERIES B JUNIOR PARTICIPATING PREFERRED STOCK

of

GEOEYE, INC.

(Pursuant to Section 151 of the

General Corporation Law of the State of Delaware)

 

          GeoEye, Inc. a corporation organized and existing under the General Corporation Law of the
State of Delaware (hereinafter called the “Corporation”), hereby certifies that the following
resolution was adopted by the Board of Directors of the Corporation (hereinafter called the “Board
of Directors” or the “Board”) as required by Section 151 of the General Corporation Law at a
meeting duly called and held on June 8, 2011.

          RESOLVED, that pursuant to the authority expressly granted to and vested in the Board in
accordance with the provisions of the Certificate of Incorporation of the Corporation, the Board of
Directors hereby creates a series of Preferred Stock, no par value per share (the “Preferred
Stock”), of the Corporation and hereby states the designation and number of shares, and fixes the
relative rights, powers and preferences, and qualifications, limitations and restrictions thereof
as follows:

          Section 1. Designation and Amount. The shares of such series shall be designated as
“Series B Junior Participating Preferred Stock” (the “Series B Preferred Stock”) and the number of
shares constituting the Series B Preferred Stock shall be 50,000. Such number of shares may be
increased or decreased by resolution of the Board of Directors; provided, that no decrease shall
reduce the number of shares of Series B Preferred Stock to a number less than the number of shares
then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding
options, rights or warrants or upon the conversion of any outstanding securities issued by the
Corporation convertible into Series B Preferred Stock.

          Section 2. Dividends and Distributions.

     (A) Subject to the prior and superior rights of the holders of any shares of any class
or series of stock of this Corporation ranking prior and superior to the Series B Preferred
Stock with respect to dividends, the holders of shares of Series B Preferred Stock, in
preference to the holders of Common Stock, par value $0.01 per share (the “Common Stock”),
of the Corporation, and of any other stock ranking junior to the Series B Preferred Stock,
shall be entitled to receive, when, as and if declared by the Board of

A-1

 

Directors out of funds legally available for the purpose, quarterly dividends payable
in cash on the first day of March, June, September and December in each year (each such date
being referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first
Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share
of Series B Preferred Stock, in an amount per share (rounded to the nearest cent) equal to
the greater of (a) $1.00 or (b) subject to the provision for adjustment hereinafter set
forth, 1,000 times the aggregate per share amount of all cash dividends, and 1,000 times the
aggregate per share amount (payable in kind) of all non-cash dividends or other
distributions, other than a dividend payable in shares of Common Stock or a subdivision of
the outstanding shares of Common Stock (by reclassification or otherwise), declared on the
Common Stock since the immediately preceding Quarterly Dividend Payment Date or, with
respect to the first Quarterly Dividend Payment Date, since the first issuance of any share
or fraction of a share of Series B Preferred Stock. In the event the Corporation shall at
any time declare or pay any dividend on the Common Stock payable in shares of Common Stock,
or effect a subdivision, combination or consolidation of the outstanding shares of Common
Stock (by reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each such case the
amount to which holders of shares of Series B Preferred Stock were entitled immediately
prior to such event under clause (b) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction, the numerator of which is the number of shares of
Common Stock outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to such event.

     (B) The Corporation shall declare a dividend or distribution on the Series B Preferred
Stock as provided in paragraph (A) of this Section 2 immediately after it declares a
dividend or distribution on the Common Stock (other than a dividend payable in shares of
Common Stock); provided that, in the event no dividend or distribution shall have been
declared on the Common Stock during the period between any Quarterly Dividend Payment Date
and the next subsequent Quarterly Dividend Payment Date, a dividend of $1.00 per share on
the Series B Preferred Stock shall nevertheless be payable on such subsequent Quarterly
Dividend Payment Date.

     (C) Dividends shall begin to accrue and be cumulative on outstanding shares of Series B
Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of
such shares, unless the date of issue of such shares is prior to the record date for the
first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to
accrue from the date of issue of such shares, or unless the date of issue is a Quarterly
Dividend Payment Date or is a date after the record date for the determination of holders of
shares of Series B Preferred Stock entitled to receive a quarterly dividend and before such
Quarterly Dividend Payment Date, in either of which events such dividends shall begin to
accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid
dividends shall not bear interest. Dividends paid on the shares of Series B Preferred Stock
in an amount less than the total amount of such dividends at the time accrued and payable on
such shares shall be allocated pro rata on a share-by-share basis among all such shares at
the time outstanding. The Board of Directors may fix a record date for the determination of
holders of shares of

A-2

 

Series B Preferred Stock entitled to receive payment of a dividend or distribution
declared thereon, which record date shall be not more than sixty (60) days prior to the date
fixed for the payment thereof.

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

     (A) Subject to the provision for adjustment hereinafter set forth, each share of Series
B Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted
to a vote of the shareholders of the Corporation. In the event the Corporation shall at any
time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or
effect a subdivision, combination or consolidation of the outstanding shares of Common Stock
(by reclassification or otherwise than by payment of a dividend in shares of Common Stock)
into a greater or lesser number of shares of Common Stock, then in each such case the number
of votes per share to which holders of shares of Series B Preferred Stock were entitled
immediately prior to such event shall be adjusted by multiplying such number by a fraction,
the numerator of which is the number of shares of Common Stock outstanding immediately after
such event and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

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

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

     (D) If, at the time of any annual meeting of stockholders for the election of
directors, the equivalent of six quarterly dividends (whether or not consecutive) payable on
any share or shares of Series B Preferred Stock are in default, the number of directors
constituting the Board of Directors of the Corporation shall be increased by two. In
addition to voting together with the holders of Common Stock for the election of other
directors of the Corporation, the holders of record of the Series B Preferred Stock, voting
separately as a class to the exclusion of the holders of Common Stock, shall be entitled at
such meeting of stockholders (and at each subsequent annual meeting of stockholders), unless
all dividends in arrears on the Series B Preferred Stock have been paid or declared and set
apart for payment prior thereto, to vote for the election of two directors of the
Corporation, the holders of any Series B Preferred Stock being entitled to cast a number of
votes per share of Series B Preferred Stock as is specified in paragraph (A) of this
Section 3. Each such additional director shall serve until the next annual meeting
of stockholders for the election of directors, or until his successor shall be elected and
shall

A-3

 

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

          Section 4. Certain Restrictions.

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

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

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

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

     (iv) redeem or purchase or otherwise acquire for consideration any shares of
Series B Preferred Stock, or any shares of stock ranking on a parity with the Series
B Preferred Stock, except in accordance with a purchase offer made in

A-4

 

writing or by publication (as determined by the Board of Directors) to all
holders of such shares upon such terms as the Board of Directors, after
consideration of the respective annual dividend rates and other relative rights and
preferences of the respective series and classes, shall determine in good faith will
result in fair and equitable treatment among the respective series or classes.

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

          Section 5. Reacquired Shares. Any shares of Series B Preferred Stock purchased or
otherwise acquired by the Corporation in any manner whatsoever shall be retired and canceled
promptly after the acquisition thereof. All such shares shall upon their cancellation become
authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of
Preferred Stock subject to the conditions and restrictions on issuance set forth herein, in the
Certificate of Incorporation or in any other Certificate of Designations creating a series of
Preferred Stock or any similar stock or as otherwise required by law.

          Section 6. Liquidation, Dissolution or Winding Up.

     (A) Upon any liquidation, dissolution or winding up of the Corporation, voluntary or
otherwise no distribution shall be made (i) to the holders of shares of stock ranking junior
(either as to dividends or upon liquidation, dissolution or winding up) to the Series B
Preferred Stock unless, prior thereto, the holders of Series B Preferred Stock shall have
received an amount per share (the “Series B Liquidation Preference”) equal to $1,000 per
share, plus an amount equal to accrued and unpaid dividends and distributions thereon,
whether or not declared, to the date of such payment, provided that the holders of shares of
Series B Preferred Stock shall be entitled to receive an aggregate amount per share, subject
to the provision for adjustment hereinafter set forth, equal to 1,000 times the aggregate
amount to be distributed per share to holders of Common Stock, or (ii) to the holders of
shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution
or winding up) with the Series B Preferred Stock, except distributions made ratably on the
Series B Preferred Stock and all such parity stock in proportion to the total amounts to
which the holders of all such shares are entitled upon such liquidation, dissolution or
winding up. In the event the Corporation shall at any time declare or pay any dividend on
the Common Stock payable in shares of Common Stock, or effect a subdivision, combination or
consolidation of the outstanding shares of Common Stock (by reclassification or otherwise
than by payment of a dividend in shares of Common Stock) into a greater or lesser number of
shares of Common Stock, then in each such case the aggregate amount to which holders of
Series B Preferred Stock were entitled immediately prior to such event under the proviso in
clause (i) of the preceding sentence shall be adjusted by multiplying such amount by a
fraction the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of shares of Common
Stock that are outstanding immediately prior to such event.

A-5

 

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

     (C) Neither the merger or consolidation of the Corporation into or with another
corporation nor the merger or consolidation of any other corporation into or with the
Corporation shall be deemed to be a liquidation, dissolution or winding up of the
Corporation within the meaning of this Section 6.

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

          Section 8. No Redemption. The Series B Preferred Stock shall not be redeemable by the
Corporation.

          Section 9. Rank. The Series B Preferred Stock shall rank, with respect to the payment
of dividends and the distribution of assets upon liquidation, dissolution or winding up, junior to
all series of any other class of the Corporation’s Preferred Stock, except to the extent that any
such other series specifically provides that it shall rank on a parity with or junior to the Series
B Preferred Stock.

          Section 10. Amendment. At any time any shares of Series B Preferred Stock are
outstanding, the Certificate of Incorporation of the Corporation shall not be further amended in
any manner which would materially alter or change the powers, preferences or special rights of the
Series B Preferred Stock so as to affect them adversely without the affirmative vote of the holders
of at least two-thirds of the outstanding shares of Series B Preferred Stock, voting separately as
a single class.

A-6

 

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

* * *

A-7

 

          IN WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the Corporation
by the undersigned authorized officer this 8th day of June, 2011.

	 	 	 	 	 
	 	GEOEYE, INC.

 	 
	 	By:  	 	 
	 	 	William L. Warren 	 
	 	 	Executive Vice President,

General Counsel and Secretary 	 

A-8

 

EXHIBIT B

[Form of Right Certificate]

			
	 	 	 
	Certificate No. R-
	 	[_______] Rights

NOT EXERCISABLE AFTER June 7, 2012 OR EARLIER IF NOTICE OF REDEMPTION OR
EXCHANGE IS GIVEN OR IF THE COMPANY IS MERGED OR ACQUIRED PURSUANT TO AN AGREEMENT
OF THE TYPE DESCRIBED IN SECTION 13.3 OF THE AGREEMENT. THE RIGHTS ARE SUBJECT TO
REDEMPTION AT $0.001 PER RIGHT, AND TO EXCHANGE ON THE TERMS SET FORTH IN THE
AGREEMENT. UNDER CERTAIN CIRCUMSTANCES (SPECIFIED IN SECTION 11.1.2 OF THE
AGREEMENT), RIGHTS BENEFICIALLY OWNED BY OR TRANSFERRED TO AN ACQUIRING PERSON (AS
DEFINED IN THE AGREEMENT), OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS, WILL BECOME NULL
AND VOID AND WILL NO LONGER BE TRANSFERABLE.

Right Certificate

GEOEYE, INC.

          This certifies that [________________], or registered assigns, is the registered owner of the
number of Rights set forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Rights Agreement, dated as of June 8, 2011, as the same may be
amended from time to time (the “Agreement”), between GeoEye, Inc., a Delaware corporation (the
“Company”), and Mellon Investor Services LLC (operating with the service name BNY Mellon Shareowner
Services), a New Jersey limited liability company, as Rights Agent (the “Rights Agent”), to
purchase from the Company at any time after the Distribution Date and prior to 5:00 P.M. (New York
time) on June 7, 2011, at the offices of the Rights Agent, or its successors as Rights Agent,
designated for such purpose, one one-thousandth of a fully paid, nonassessable share of Series B
Junior Participating Preferred Stock, no par value per share (the “Preferred Stock”), of the
Company, at a purchase price of $175.00 per one one-thousandth of a share of Preferred Stock,
subject to adjustment (the “Purchase Price”), upon presentation and surrender of this Right
Certificate with the Form of Election to Purchase and certification duly executed. The number of
Rights evidenced by this Right Certificate (and the number of one one-thousandth of a share of
Preferred Stock which may be purchased upon exercise thereof) set forth above, and the Purchase
Price set forth above, are the number and Purchase Price as of [________, 20__], based on the
Preferred Stock as constituted at such date. Capitalized terms used in this Right Certificate
without definition shall have the meanings ascribed to them in the Agreement. As provided in the
Agreement, the Purchase Price and the number of shares of Preferred Stock which may be purchased
upon the exercise of the Rights evidenced by this Right Certificate are subject to modification and
adjustment upon the happening of certain events.

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

B-1

 

description of the rights, limitations of rights, obligations, duties and immunities hereunder
of the Rights Agent, the Company and the holders of the Right Certificates. Copies of the
Agreement are on file at the offices of the Company and the Rights Agent designated for such
purpose.

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

          Subject to the provisions of the Agreement, the Board may, at its option, (i) redeem the
Rights evidenced by this Right Certificate at a redemption price of $0.001 per Right or (ii)
exchange Common Stock for the Rights evidenced by this Certificate, in whole or in part.

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

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

          If any term, provision, covenant or restriction of the Agreement is held by a court of
competent jurisdiction or other authority to be invalid, null and void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions of the Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

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

B-2

 

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

Dated as of [__________, 20__].

	 	 	 	 	 	 	 

	Attest:	 	GEOEYE, INC.
	 
	 	 	 	 	 	 
	By

	 	 	 	By	 	 
	 

	 	 
	 	 	 	 
	 

	 	Title:
	 	 	 	Title:

	 	 	 	 	 
	Countersigned:

MELLON INVESTOR SERVICES LLC,

as Rights Agent

 	 	 
	By  	 	 	 
	 	Authorized Signature 	 	 
	 	 	 	 

B-3

 

	 	 	 	 	 

Form of Reverse Side of Right Certificate

FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder

desires to transfer the Right Certificate.)

	 	 	 

	FOR VALUE RECEIVED

	 	 
	 

	 	 

	 	 	 

	hereby sells, assigns and transfers unto

	 	 
	 

	 	 

 

 

(Please print name and address

of transferee)

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

Dated:       
               
         

	 	 	 	 	 
	 	
Signature

 	 
	 	 	 

Signature Medallion Guaranteed:

 

          Signatures must be guaranteed by a participant in a Medallion Signature Guarantee Program at a
level acceptable to the Rights Agent.

B-4

 

The undersigned hereby certifies that:

          (1) the Rights evidenced by this Right Certificate are not Beneficially Owned by and are not
being assigned to an Acquiring Person or an Affiliate or an Associate thereof; and

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

Dated:        
                  
     

	 	 	 	 	 
	 	
Signature

 	 
	 	 	 

B-5

 

	 	 	 	 	 

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to

exercise the Right Certificate.)

To: GEOEYE, INC.

          The undersigned hereby irrevocably elects to exercise [__________________] Rights represented
by this Right Certificate to purchase the Preferred Stock issuable upon the exercise of such Rights
(or such other securities or property of the Company or of any other Person which may be issuable
upon the exercise of the Rights) and requests that certificates for such stock (or such other
securities or property of the Company or of any other Person which may be issuable upon the
exercise of the Rights) be issued in the name of (or to, as the case may be):

__________________________________________________________

(Please print name and address)

_______________________________________________________________

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

Please insert social security

or other identifying number _______________________________________

_____________________________________________________________

           
            (Please print name and address)

____________________________________________________________

Dated: ________

	 	 	 	 	 
	 	
Signature

 	 
	 	 	 

Signature Medallion Guaranteed:

 

          Signatures must be guaranteed by a participant in a Medallion Signature Guarantee Program at a
level acceptable to the Rights Agent.

B-6

 

The undersigned hereby certifies that:

          (1) the Rights evidenced by this Right Certificate are not Beneficially Owned by and are not
being assigned to an Acquiring Person or an Affiliate or an Associate thereof; and

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

Dated: __________________

	 	 	 	 	 
	 	
Signature 	 

NOTICE

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

          In the event the certification set forth above in the Form of Assignment or Form of Election
to Purchase is not completed, the Company will deem the Beneficial Owner of the Rights evidenced by
this Right Certificate to be an Acquiring Person or an Affiliate or Associate hereof and such
Assignment or Election to Purchase will not be honored.

B-7

 

EXHIBIT C

SUMMARY OF RIGHTS TO PURCHASE

PREFERRED STOCK

          On June 8, 2011, the Board of Directors of GeoEye, Inc. (the “Company”) declared a dividend of
one preferred stock purchase right (individually, a “Right” and collectively, the “Rights”) for
each share of Common Stock, par value $0.01 (the “Common Stock”), of the Company outstanding at the
close of business on June 22, 2011 (the “Record Date”). As long as the Rights are attached to the
Common Stock, the Company will issue one Right (subject to adjustment) with each new share of
Common Stock so that all such shares will have attached Rights. When exercisable, each Right will
entitle the registered holder to purchase from the Company one one-thousandth of a share of Series
B Junior Participating Preferred Stock (the “Preferred Stock”) of the Company at a price of $175.00
per one one-thousandth of a share of Preferred Stock, subject to adjustment (the “Purchase Price”).
The description and terms of the Rights are set forth in a Rights Agreement, dated as of June 8,
2011, as the same may be amended from time to time (the “Agreement”), between the Company and
Mellon Investor Services, LLC, as Rights Agent (the “Rights Agent”).

          Until the earlier to occur of (i) the close of business of the tenth business day following a
public announcement that a person or group of affiliated or associated persons has acquired, or
obtained the right to acquire, beneficial ownership of 20% or more of the Common Stock (an
“Acquiring Person”) or (ii) the close of business on the tenth business day (or such later date as
may be determined by action of the Board of Directors prior to such time as any person or group of
affiliated persons becomes an Acquiring Person) following the commencement or announcement of an
intention to make a tender offer or exchange offer the consummation of which would result in the
beneficial ownership by a person or group of affiliated or associated persons of 20% or more of the
Common Stock (the earlier of (i) and (ii) being called the “Distribution Date”), the Rights will be
evidenced, with respect to any of the Common Stock certificates outstanding as of the Record Date,
by such Common Stock certificates or, with respect to any uncertified Common Stock registered in
book entry form, by notation in book entry, in either case together with a copy of this Summary of
Rights. The Agreement provides that any person who beneficially owned 20% or more of the Common
Stock immediately prior to the first public announcement of the adoption of the Agreement, together
with any affiliates and associates of that person (each an “Existing Holder”), shall not be deemed
to be an “Acquiring Person” for purposes of the Agreement unless the Existing Holder becomes the
beneficial owner of one or more additional shares of Common Stock (other than pursuant to a
dividend or distribution paid or made by the Company on the outstanding Common Stock in Common
Stock or pursuant to a split or subdivision of the outstanding Common Stock). However, if upon
acquiring beneficial ownership of one or more additional shares of Common Stock, the Existing
Holder does not beneficially own 20% or more of the Common Stock then outstanding, the Existing
Holder shall not be deemed to be an “Acquiring Person” for purposes of the Agreement.

C-1

 

          Any person who desires to effect an acquisition of Common Stock that would, if consummated,
result in such person beneficially owning 19.99% or more of the then outstanding Common Stock or
any Existing Holder who desires to effect an acquisition of additional Common Stock may, prior to
acquiring the Common Stock, request that the Board of Directors grant an exemption covering the
proposed acquisition. Any exemption granted by the Board of Directors (or a committee thereof) may
be granted in whole or in part, and may be subject to limitations or conditions the Board of
Directors (or a committee thereof) determines necessary or desirable to provide for the protection
of the Company’s stockholders. The exemption request must include (i) the name and address of the
requesting person, (ii) the number and percentage of shares of Common Stock beneficially owned by
the requesting person and (iii) a reasonably detailed description of the transaction by which the
requesting person would propose to acquire beneficial ownership of Common Stock above the 19.99%
ownership threshold and the percentage of shares that the requesting person proposes to acquire.
The Board of Directors (or a committee thereof) must make a determination whether to grant the
exemption within ten business days after receipt of the request. The requesting person is required
to respond promptly to reasonable and appropriate requests for additional information from the
Board or its advisors to assist the Board in making its determination. Failure of the Board of
Directors (or a committee thereof) to make a determination within ten business days of receipt of
the exemption request is deemed to constitute a denial by the Board of Directors of the exemption
request. Each exemption request will be considered and evaluated by directors serving on the Board
of Directors (or a committee thereof) who are independent of the Company and the party requesting
the exemption and disinterested with respect to that specific exemption request. The decision of a
majority of the independent and disinterested directors (or a committee of the Board of Directors)
is deemed to be the determination of the Board of Directors with respect to any request for
exemption from the Agreement.

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

          The Rights are not exercisable until the Distribution Date. The Rights will expire on June 7,
2012, subject to the Company’s right to extend such date (the “Final Expiration Date”), unless
earlier redeemed or exchanged by the Company or terminated.

          Each share of Preferred Stock purchasable upon exercise of the Rights will be entitled, when,
as and if declared, to a minimum preferential quarterly dividend payment equal to the greater of
(i) $1.00 or (ii) 1,000 times the dividend, if any, declared per share of Common

C-2

 

Stock. In the event of liquidation, dissolution or winding up of the Company, the holders of
the Preferred Stock will be entitled to a minimum preferential liquidation payment of $1,000 per
share (plus any accrued but unpaid dividends), provided that such holders of the Preferred Stock
will be entitled to an aggregate payment of 1,000 times the payment made per share of Common Stock.
Each share of Preferred Stock will have 1,000 votes and will vote together with the Common Stock.
Finally, in the event of any merger, consolidation or other transaction in which shares of the
Common Stock are exchanged, each share of Preferred Stock will be entitled to receive 1,000 times
the amount received per share of Common Stock. The Preferred Stock will not be redeemable.
Because of the nature of the Preferred Stock’s dividend and liquidation rights, the value of one
one-thousandth of a share of Preferred Stock purchasable upon exercise of each Right should
approximate the value of one share of Common Stock.

          The Purchase Price payable, and the number of one one-thousandth of a share of Preferred Stock
or other securities or property issuable, upon exercise of the Rights are subject to adjustment
from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision,
combination or reclassification of, the Preferred Stock, (ii) upon the grant to holders of the
Preferred Stock of certain rights or warrants to subscribe for or purchase Preferred Stock or
convertible securities at less than the current market price of the Preferred Stock or (iii) upon
the distribution to holders of the Preferred Stock of evidences of indebtedness, cash, securities
or assets (excluding regular periodic cash dividends at a rate not in excess of 125% of the rate of
the last regular periodic cash dividend theretofore paid or, in case regular periodic cash
dividends have not theretofore been paid, at a rate not in excess of 50% of the average net income
per share of the Company for the four quarters ended immediately prior to the payment of such
dividend, or dividends payable in shares of Preferred Stock (which dividends will be subject to the
adjustment described in clause (i) above)) or of subscription rights or warrants (other than those
referred to above).

          In the event that a Person becomes an Acquiring Person or if the Company were the surviving
corporation in a merger with an Acquiring Person or any affiliate or associate of an Acquiring
Person and share of the Common Stock were not changed or exchanged, each holder of a Right, other
than Rights that are or were acquired or beneficially owned by the Acquiring Person (which Rights
will thereafter be null and void), will thereafter have the right to receive upon exercise that
number of shares of Common Stock having a market value of two times the then current Purchase Price
of the Right. In the event that, after a person has become an Acquiring Person, the Company were
acquired in a merger or other business combination transaction or more than 50% of its assets or
earning power were sold, proper provision shall be made so that each holder of a Right shall
thereafter have the right to receive, upon the exercise thereof at the then current Purchase Price
of the Right, that number of shares of common stock of the acquiring company which at the time of
such transaction would have a market value of two times the then current Purchase Price of the
Right.

          At any time after a Person becomes an Acquiring Person and prior to the earlier of one of the
events described in the last sentence of the previous paragraph or the acquisition by such
Acquiring Person of 50% or more of the outstanding Common Stock, the Board of Directors may cause
the Company to exchange the Rights (other than Rights owned by an Acquiring Person which will have
become null and void), in whole or in part, for Common Stock at an exchange rate of one share of
Common Stock per Right (subject to adjustment).

C-3

 

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

          The Rights may be redeemed in whole, but not in part, at a price of $0.001 per Right (the
“Redemption Price”) by the Board of Directors at any time prior to the time that an Acquiring
Person has become such. The redemption of the Rights may be made effective at such time, on such
basis and with such conditions as the Board of Directors in its sole discretion may establish.
Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and
the only right of the holders of Rights will be to receive the Redemption Price.

          Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder
of the Company beyond those as an existing stockholder, including, without limitation, the right to
vote or to receive dividends.

          Any of the provisions of the Agreement may be amended by the Board of Directors, or a duly
authorized committee thereof, for so long as the Rights are then redeemable, and after the Rights
are no longer redeemable, the Company may amend or supplement the Agreement in any manner that does
not adversely affect the interests of the holders of the Rights (other than an Acquiring Person or
any affiliate or associate of an Acquiring Person).

          A copy of the Agreement has been filed with the Securities and Exchange Commission as an
Exhibit to a Current Report on Form 8-K. A copy of the Agreement is available free of charge from
the Company. This summary description of the Rights does not purport to be complete and is
qualified in its entirety by reference to the Agreement, which is incorporated herein by reference.

C-4exv4w1

Exhibit 4.1

	Class A Common Stock Class A Common Stock PAR VALUE $0.0001 THIS CERTIFICATE IS TRANSFERABLE IN CANTON, MA AND NEW YORK, NY
Certificate Shares Number **000000****** ***000000***** ZQ 000000 ****000000**** *****000000*** KiOR Inc.
******000000** INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE ** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr.
THIS CERTIFIES THAT MR. SAMPLE & MRS. SAMPLE & CUSIP 497217 10 9 Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr.
SEE REVERSE FOR CERTAIN DEFINITIONS MR. SAMPLE & MRS. SAMPLE Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample ****
Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Sample **** Mr. Sample
**000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares*** *000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares**** 000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****0 00000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****00 0000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000
is the owner of ***ZERO HUNDRED THOUSAND 000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****0000 00**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****00000 0**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000 **Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000*
ZERO HUNDRED AND ZERO*** *Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****000000** Shares****000000**Shares****000000**Shares****000000**Shares****000000**Shares****0
00000**Shares****000000**Shares****000000**Shares****000000**S
FULLY-PAID AND NON-ASSESSABLE SHARES OF THE CLASS A COMMON STOCK OF KiOR Inc. (hereinafter called the “Company”), transferable on the books of the Company in person or by duly authorized attorney, upon surrender of this Certificate properly endorsed. This Certificate and the shares represented hereby, are issued and shall be held subject to all of the provisions of the Certificate of Incorporation, as amended, and the By-Laws, as amended, of the Company (copies of which are on file with the Company and with the Transfer Agent), to all of which each holder, by acceptance hereof, assents. This Certificate is not valid unless countersigned and registered by the Transfer Agent and Registrar.
Witness the facsimile seal of the Company and the facsimile signatures of its duly authorized officers.
DATED Month Day, Year COUNTERSIGNED AND REGISTERED: COMPUTERSHARE TRUST COMPANY, N.A. TRANSFER AGENT AND REGISTRAR, President and Chief Executive Officer
By AUTHORIZED SIGNATURE

 

	KiOR Inc. THE COMPANY WILL FURNISH WITHOUT CHARGE TO EACH SHAREHOLDER WHO SO REQUESTS, A SUMMARY OF THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OF THE COMPANY AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND RIGHTS, AND THE VARIATIONS IN RIGHTS, PREFERENCES AND LIMITATIONS DETERMINED FOR EACH SERIES, WHICH ARE FIXED BY THE CERTIFICATE OF INCORPORATION OF THE COMPANY, AS AMENDED, AND THE RESOLUTIONS OF THE BOARD OF DIRECTORS OF THE COMPANY, AND THE AUTHORITY OF THE BOARD OF DIRECTORS TO DETERMINE VARIATIONS FOR FUTURE SERIES. SUCH REQUEST MAY BE MADE TO THE OFFICE OF THE SECRETARY OF THE COMPANY OR TO THE TRANSFER AGENT. THE BOARD OF DIRECTORS MAY REQUIRE THE OWNER OF A LOST OR DESTROYED STOCK CERTIFICATE, OR HIS LEGAL REPRESENTATIVES, TO GIVE THE COMPANY A BOND TO INDEMNIFY IT AND ITS TRANSFER AGENTS AND REGISTRARS AGAINST ANY CLAIM THAT MAY BE MADE AGAINST THEM ON ACCOUNT OF THE ALLEGED LOSS OR DESTRUCTION OF ANY SUCH CERTIFICATE.
The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations: TEN COM -as tenants in common UNIF GIFT MIN ACT -............................................Custodian ................................................
(Cust) (Minor) TEN ENT -as tenants by the entireties under Uniform Gifts to Minors Act.........................................................
(State) JT TEN -as joint tenants with right of survivorship UNIF TRF MIN ACT -............................................Custodian (until age ................................)
and not as tenants in common (Cust) .............................under Uniform Transfers to Minors Act ...................
(Minor) (State) Additional abbreviations may also be used though not in the above list. PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE
For value received, ___hereby sell, assign and transfer unto (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE, OF ASSIGNEE)
___Shares of the Class A Common Stock represented by the within Certificate, and do hereby irrevocably constitute and appoint ___Attorney to transfer the said stock on the books of the within-named Company with full power of substitution in the premises.
Signature(s) Guaranteed: Medallion Guarantee Stamp Dated: ___20___
THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (Banks, Stockbrokers, Savings and Loan Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15.
Signature: ___Signature: ___
Notice: The signature to this assignment must correspond with the name as written upon the face of the certificate, in every particular,
without alteration or enlargement, or any change whatever. The IRS requires that we report the cost basis of certain shares acquired after January 1, 2011. If your shares were covered by the legislation and you have sold or transferred the shares and requested a specific cost basis calculation method, we have processed as requested. If you did not specify a cost basis calculation method, we have defaulted to the first in, first out (FIFO) method. Please visit our website or consult your tax advisor if you need additional information about cost basis.
If you do not keep in contact with us or do not have any activity in your account for the time periods specified by state
law, your property could become subject to state unclaimed property laws and transferred to the appropriate state.

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