Document:

exv10w1

Exhibit 10.1

United States Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

Dear Ladies and Gentlemen:

     The company set forth on the signature page hereto (the “Company”) intends to issue in a
private placement the number of shares of a series of its preferred stock set forth on Schedule A
hereto (the “Preferred Shares”) and a warrant to purchase the number of shares of its common stock
set forth on Schedule A hereto (the “Warrant” and, together with the Preferred Shares, the
"Purchased Securities”) and the United States Department of the Treasury (the “Investor”) intends
to purchase from the Company the Purchased Securities.

     The purpose of this letter agreement is to confirm the terms and conditions of the purchase by
the Investor of the Purchased Securities. Except to the extent supplemented or superseded by the
terms set forth herein or in the Schedules hereto, the provisions contained in the Securities
Purchase Agreement — Standard Terms attached hereto as Exhibit A (the “Securities Purchase
Agreement”) are incorporated by reference herein. Terms that are defined in the Securities
Purchase Agreement are used in this letter agreement as so defined. In the event of any
inconsistency between this letter agreement and the Securities Purchase Agreement, the terms of
this letter agreement shall govern.

     Each of the Company and the Investor hereby confirms its agreement with the other party with
respect to the issuance by the Company of the Purchased Securities and the purchase by the Investor
of the Purchased Securities pursuant to this letter agreement and the Securities Purchase Agreement
on the terms specified on Schedule A hereto.

     This letter agreement (including the Schedules hereto) and the Securities Purchase Agreement
(including the Annexes thereto) and the Warrant constitute the entire agreement, and supersede all
other prior agreements, understandings, representations and warranties, both written and oral,
between the parties, with respect to the subject matter hereof. This letter agreement constitutes
the “Letter Agreement” referred to in the Securities Purchase Agreement.

     This letter agreement may be executed in any number of separate counterparts, each such
counterpart being deemed to be an original instrument, and all such counterparts will together
constitute the same agreement. Executed signature pages to this letter agreement may be delivered
by facsimile and such facsimiles will be deemed as sufficient as if actual signature pages had been
delivered.

* * *

 

 

     In witness whereof, this letter agreement has been duly executed and delivered by the duly
authorized representatives of the parties hereto as of the date written below.

	 	 	 	 	 
	 	UNITED STATES DEPARTMENT OF THE TREASURY

 	 
	 	By:  	    /s/ Neel Kashkari
 	 
	 	 	Name:  	Neel Kashkari 	 
	 	 	Title:  	Interim Assistant Secretary for 
Financial
Stability 	 
	 

	 	 	 	 	 
	 	COMPANY: TEXAS CAPITAL BANCSHARES, INC.

 	 
	 	By:  	    /s/ George F. Jones, Jr.
 	 
	 	 	Name:  	George F. Jones, Jr. 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

Date: January 16, 2009

 

 

EXHIBIT
A

SECURITIES
PURCHASE AGREEMENT

 

EXHIBIT A

 

SECURITIES PURCHASE AGREEMENT

STANDARD TERMS

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Article I

	 
	 	 	 	 
	Purchase; Closing

	 
	 	 	 	 
	1.1	 	Purchase
	 	 	1	 
	1.2	 	Closing
	 	 	2	 
	1.3	 	Interpretation
	 	 	4	 
	 
	 	 	 	 
	Article II

	 
	 	 	 	 
	Representations and Warranties

	 
	 	 	 	 
	2.1	 	Disclosure
	 	 	4	 
	2.2	 	Representations and Warranties of the Company
	 	 	5	 
	 
	 	 	 	 
	Article III

	 
	 	 	 	 
	Covenants

	 
	 	 	 	 
	3.1	 	Commercially Reasonable Efforts
	 	 	13	 
	3.2	 	Expenses
	 	 	14	 
	3.3	 	Sufficiency of Authorized Common Stock; Exchange Listing
	 	 	14	 
	3.4	 	Certain Notifications Until Closing
	 	 	14	 
	3.5	 	Access, Information and Confidentiality
	 	 	15	 
	 
	 	 	 	 
	Article IV

	 
	 	 	 	 
	Additional Agreements

	 
	 	 	 	 
	4.1	 	Purchase for Investment
	 	 	16	 
	4.2	 	Legends
	 	 	16	 
	4.3	 	Certain Transactions
	 	 	18	 
	4.4	 	Transfer of Purchased Securities and Warrant
Shares; Restrictions on Exercise of the Warrant
	 	 	18	 
	4.5	 	Registration Rights
	 	 	18	 
	4.6	 	Voting of Warrant Shares
	 	 	30	 
	4.7	 	Depositary Shares
	 	 	30	 
	4.8	 	Restriction on Dividends and Repurchases
	 	 	30	 

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	 	 	 	 	Page
	4.9	 	Repurchase of Investor Securities
	 	 	31	 
	4.10	 	Executive Compensation
	 	 	32	 
	4.11	 	Bank and Thrift Holding Company Status
	 	 	32	 
	4.12	 	Predominantly Financial
	 	 	33	 
	 
	 	 	 	 
	Article V

	 
	 	 	 	 
	Miscellaneous

	 
	 	 	 	 
	5.1	 	Termination
	 	 	33	 
	5.2	 	Survival of Representations and Warranties
	 	 	33	 
	5.3	 	Amendment
	 	 	34	 
	5.4	 	Waiver of Conditions
	 	 	34	 
	5.5	 	Governing Law: Submission to Jurisdiction, Etc.
	 	 	34	 
	5.6	 	Notices
	 	 	34	 
	5.7	 	Definitions
	 	 	35	 
	5.8	 	Assignment
	 	 	35	 
	5.9	 	Severability
	 	 	35	 
	5.10	 	No Third Party Beneficiaries
	 	 	35	 

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LIST OF ANNEXES

ANNEX A:     FORM OF CERTIFICATE OF DESIGNATIONS FOR PREFERRED STOCK

ANNEX B:     FORM OF WAIVER

ANNEX C:     FORM OF OPINION

ANNEX D:     FORM OF WARRANT

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INDEX OF DEFINED TERMS

	 	 	 
	 	 	Location of
	Term	 	Definition
	Affiliate

	 	5.7(b)        
	Agreement

	 	Recitals
	Appraisal Procedure

	 	4.9(c)(i)        
	Appropriate Federal Banking Agency

	 	2.2(s)        
	Bank Holding Company

	 	4.11        
	Bankruptcy Exceptions

	 	2.2(d)        
	Benefit Plans

	 	1.2(d)(iv)        
	Board of Directors

	 	2.2(f)        
	Business Combination

	 	4.4        
	business day

	 	1.3        
	Capitalization Date

	 	2.2(b)        
	Certificate of Designations

	 	1.2(d)(iii)        
	Charter

	 	1.2(d)(iii)        
	Closing

	 	1.2(a)        
	Closing Date

	 	1.2(a)        
	Code

	 	2.2(n)        
	Common Stock

	 	Recitals
	Company

	 	Recitals
	Company Financial Statements

	 	2.2(h)        
	Company Material Adverse Effect

	 	2.1(a)        
	Company Reports

	 	2.2(i)(i)        
	Company Subsidiary; Company Subsidiaries

	 	2.2(i)(i)        
	control; controlled by; under common control with

	 	5.7(b)        
	Controlled Group

	 	2.2(n)        
	CPP

	 	Recitals
	EESA

	 	1.2(d)(iv)        
	ERISA

	 	2.2(n)        
	Exchange Act

	 	2.1(b)        
	Fair Market Value

	 	4.9(c)(ii)        
	Federal Reserve

	 	4.11        
	GAAP

	 	2.1(a)        
	Governmental Entities

	 	1.2(c)        
	Holder

	 	4.5(k)(i)        
	Holders’ Counsel

	 	4.5(k)(ii)        
	Indemnitee

	 	4.5(g)(i)        
	Information

	 	3.5(b)        
	Initial Warrant Shares

	 	Recitals
	Investor

	 	Recitals
	Junior Stock

	 	4.8(c)        
	knowledge of the Company; Company’s knowledge

	 	5.7(c)        
	Last Fiscal Year

	 	2.1(b)        

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	 	 	Location of
	Term	 	Definition
	Letter Agreement

	 	Recitals
	officers

	 	5.7(c)        
	Parity Stock

	 	4.8(c)        
	Pending Underwritten Offering

	 	4.5(l)        
	Permitted Repurchases

	 	4.8(a)(ii)        
	Piggyback Registration

	 	4.5(a)(iv)        
	Plan

	 	2.2(n)        
	Preferred Shares

	 	Recitals
	Preferred Stock

	 	Recitals
	Previously Disclosed

	 	2.1(b)        
	Proprietary Rights

	 	2.2(u)        
	Purchase

	 	Recitals
	Purchase Price

	 	1.1        
	Purchased Securities

	 	Recitals
	Qualified Equity Offering

	 	4.4        
	register; registered; registration

	 	4.5(k)(iii)        
	Registrable Securities

	 	4.5(k)(iv)        
	Registration Expenses

	 	4.5(k)(v)        
	Regulatory Agreement

	 	2.2(s)        
	Rule 144; Rule 144A; Rule 159A; Rule 405; Rule 415

	 	4.5(k)(vi)        
	Savings and Loan Holding Company

	 	4.11        
	Schedules

	 	Recitals
	SEC

	 	2.1(b)        
	Securities Act

	 	2.2(a)        
	Selling Expenses

	 	4.5(k)(vii)        
	Senior Executive Officers

	 	4.10        
	Share Dilution Amount

	 	4.8(a)(ii)        
	Shelf Registration Statement

	 	4.5(a)(ii)        
	Signing Date

	 	2.1(a)        
	Special Registration

	 	4.5(i)        
	Stockholder Proposals

	 	3.1(b)        
	subsidiary

	 	5.8(a)        
	Tax; Taxes

	 	2.2(o)        
	Transfer

	 	4.4        
	Warrant

	 	Recitals
	Warrant Shares

	 	2.2(d)        

-v-

 

SECURITIES PURCHASE AGREEMENT — STANDARD TERMS

Recitals:

     WHEREAS, the United States Department of the Treasury (the “Investor”) may from time to time
agree to purchase shares of preferred stock and warrants from eligible financial institutions which
elect to participate in the Troubled Asset Relief Program Capital Purchase Program (“CPP”);

     WHEREAS, an eligible financial institution electing to participate in the CPP and issue
securities to the Investor (referred to herein as the “Company”) shall enter into a letter
agreement (the “Letter Agreement”) with the Investor which incorporates this Securities Purchase
Agreement — Standard Terms;

     WHEREAS, the Company agrees to expand the flow of credit to U.S. consumers and businesses on
competitive terms to promote the sustained growth and vitality of the U.S. economy;

     WHEREAS, the Company agrees to work diligently, under existing programs, to modify the terms
of residential mortgages as appropriate to strengthen the health of the U.S. housing market;

     WHEREAS, the Company intends to issue in a private placement the number of shares of the
series of its Preferred Stock (“Preferred Stock”) set forth on Schedule A to the Letter
Agreement (the “Preferred Shares”) and a warrant to purchase the number of shares of its Common
Stock (“Common Stock”) set forth on Schedule A to the Letter Agreement (the “Initial
Warrant Shares”) (the “Warrant” and, together with the Preferred Shares, the “Purchased
Securities”) and the Investor intends to purchase (the “Purchase”) from the Company the Purchased
Securities; and

     WHEREAS, the Purchase will be governed by this Securities Purchase Agreement — Standard Terms
and the Letter Agreement, including the schedules thereto (the “Schedules”), specifying additional
terms of the Purchase. This Securities Purchase Agreement — Standard Terms (including the Annexes
hereto) and the Letter Agreement (including the Schedules thereto) are together referred to as this
“Agreement”. All references in this Securities Purchase Agreement — Standard Terms to “Schedules”
are to the Schedules attached to the Letter Agreement.

     NOW, THEREFORE, in consideration of the premises, and of the representations, warranties,
covenants and agreements set forth herein, the parties agree as follows:

Article I

Purchase; Closing

     1.1 Purchase. On the terms and subject to the conditions set forth in this Agreement,
the Company agrees to sell to the Investor, and the Investor agrees to purchase from the

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Company, at the Closing (as hereinafter defined), the Purchased Securities for the price set
forth on Schedule A (the “Purchase Price”).

     1.2 Closing.

     (a) On the terms and subject to the conditions set forth in this Agreement, the closing of the
Purchase (the “Closing”) will take place at the location specified in Schedule A, at the
time and on the date set forth in Schedule A or as soon as practicable thereafter, or at
such other place, time and date as shall be agreed between the Company and the Investor. The time
and date on which the Closing occurs is referred to in this Agreement as the “Closing Date”.

     (b) Subject to the fulfillment or waiver of the conditions to the Closing in this Section 1.2,
at the Closing the Company will deliver the Preferred Shares and the Warrant, in each case as
evidenced by one or more certificates dated the Closing Date and bearing appropriate legends as
hereinafter provided for, in exchange for payment in full of the Purchase Price by wire transfer of
immediately available United States funds to a bank account designated by the Company on
Schedule A.

     (c) The respective obligations of each of the Investor and the Company to consummate the
Purchase are subject to the fulfillment (or waiver by the Investor and the Company, as applicable)
prior to the Closing of the conditions that (i) any approvals or authorizations of all United
States and other governmental, regulatory or judicial authorities (collectively, “Governmental
Entities”) required for the consummation of the Purchase shall have been obtained or made in form
and substance reasonably satisfactory to each party and shall be in full force and effect and all
waiting periods required by United States and other applicable law, if any, shall have expired and
(ii) no provision of any applicable United States or other law and no judgment, injunction, order
or decree of any Governmental Entity shall prohibit the purchase and sale of the Purchased
Securities as contemplated by this Agreement.

     (d) The obligation of the Investor to consummate the Purchase is also subject to the
fulfillment (or waiver by the Investor) at or prior to the Closing of each of the following
conditions:

     (i) (A) the representations and warranties of the Company set forth in (x) Section
2.2(g) of this Agreement shall be true and correct in all respects as though made on and as
of the Closing Date, (y) Sections 2.2(a) through (f) shall be true and correct in all
material respects as though made on and as of the Closing Date (other than representations
and warranties that by their terms speak as of another date, which representations and
warranties shall be true and correct in all material respects as of such other date) and (z)
Sections 2.2(h) through (v) (disregarding all qualifications or limitations set forth in
such representations and warranties as to “materiality”, “Company Material Adverse Effect”
and words of similar import) shall be true and correct as though made on and as of the
Closing Date (other than representations and warranties that by their terms speak as of
another date, which representations and warranties shall be true and correct as of such
other date), except to the extent that the failure of such representations and warranties
referred to in this Section 1.2(d)(i)(A)(z) to be so true and correct, individually or in
the aggregate, does not have and would not reasonably be

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expected to have a Company Material Adverse Effect and (B) the Company shall have
performed in all material respects all obligations required to be performed by it under this
Agreement at or prior to the Closing;

     (ii) the Investor shall have received a certificate signed on behalf of the Company by
a senior executive officer certifying to the effect that the conditions set forth in Section
1.2(d)(i) have been satisfied;

     (iii) the Company shall have duly adopted and filed with the Secretary of State of its
jurisdiction of organization or other applicable Governmental Entity the amendment to its
certificate or articles of incorporation, articles of association, or similar organizational
document (“Charter”) in substantially the form attached hereto as Annex A (the
“Certificate of Designations”) and such filing shall have been accepted;

     (iv) (A) the Company shall have effected such changes to its compensation, bonus,
incentive and other benefit plans, arrangements and agreements (including golden parachute,
severance and employment agreements) (collectively, “Benefit Plans”) with respect to its
Senior Executive Officers (and to the extent necessary for such changes to be legally
enforceable, each of its Senior Executive Officers shall have duly consented in writing to
such changes), as may be necessary, during the period that the Investor owns any debt or
equity securities of the Company acquired pursuant to this Agreement or the Warrant, in
order to comply with Section 111(b) of the Emergency Economic Stabilization Act of 2008
(“EESA”) as implemented by guidance or regulation thereunder that has been issued and is in
effect as of the Closing Date, and (B) the Investor shall have received a certificate signed
on behalf of the Company by a senior executive officer certifying to the effect that the
condition set forth in Section 1.2(d)(iv)(A) has been satisfied;

     (v) each of the Company’s Senior Executive Officers shall have delivered to the
Investor a written waiver in the form attached hereto as Annex B releasing the
Investor from any claims that such Senior Executive Officers may otherwise have as a result
of the issuance, on or prior to the Closing Date, of any regulations which require the
modification of, and the agreement of the Company hereunder to modify, the terms of any
Benefit Plans with respect to its Senior Executive Officers to eliminate any provisions of
such Benefit Plans that would not be in compliance with the requirements of Section 111(b)
of the EESA as implemented by guidance or regulation thereunder that has been issued and is
in effect as of the Closing Date;

     (vi) the Company shall have delivered to the Investor a written opinion from counsel to
the Company (which may be internal counsel), addressed to the Investor and dated as of the
Closing Date, in substantially the form attached hereto as Annex C;

     (vii) the Company shall have delivered certificates in proper form or, with the prior
consent of the Investor, evidence of shares in book-entry form, evidencing the Preferred
Shares to Investor or its designee(s); and

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     (viii) the Company shall have duly executed the Warrant in substantially the form
attached hereto as Annex D and delivered such executed Warrant to the Investor or
its designee(s).

     1.3 Interpretation. When a reference is made in this Agreement to “Recitals,”
“Articles,” “Sections,” or “Annexes” such reference shall be to a Recital, Article or Section of,
or Annex to, this Securities Purchase Agreement — Standard Terms, and a reference to “Schedules”
shall be to a Schedule to the Letter Agreement, in each case, unless otherwise indicated. The terms
defined in the singular have a comparable meaning when used in the plural, and vice versa.
References to “herein”, “hereof”, “hereunder” and the like refer to this Agreement as a whole and
not to any particular section or provision, unless the context requires otherwise. The table of
contents and headings contained in this Agreement are for reference purposes only and are not part
of this Agreement. Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed followed by the words “without limitation.” No rule of construction
against the draftsperson shall be applied in connection with the interpretation or enforcement of
this Agreement, as this Agreement is the product of negotiation between sophisticated parties
advised by counsel. All references to “$” or “dollars” mean the lawful currency of the United
States of America. Except as expressly stated in this Agreement, all references to any statute,
rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or
replaced from time to time (and, in the case of statutes, include any rules and regulations
promulgated under the statute) and to any section of any statute, rule or regulation include any
successor to the section. References to a “business day” shall mean any day except Saturday, Sunday
and any day on which banking institutions in the State of New York generally are authorized or
required by law or other governmental actions to close.

Article II

Representations and Warranties

     2.1 Disclosure.

     (a) “Company Material Adverse Effect” means a material adverse effect on (i) the business,
results of operation or financial condition of the Company and its consolidated subsidiaries taken
as a whole; provided, however, that Company Material Adverse Effect shall not be deemed to include
the effects of (A) changes after the date of the Letter Agreement (the “Signing Date”) in general
business, economic or market conditions (including changes generally in prevailing interest rates,
credit availability and liquidity, currency exchange rates and price levels or trading volumes in
the United States or foreign securities or credit markets), or any outbreak or escalation of
hostilities, declared or undeclared acts of war or terrorism, in each case generally affecting the
industries in which the Company and its subsidiaries operate, (B) changes or proposed changes after
the Signing Date in generally accepted accounting principles in the United States (“GAAP”) or
regulatory accounting requirements, or authoritative interpretations thereof, (C) changes or
proposed changes after the Signing Date in securities, banking and other laws of general
applicability or related policies or interpretations of Governmental Entities (in the case of each
of these clauses (A), (B) and (C), other than changes or occurrences to the extent that such
changes or occurrences have or would reasonably be expected to have a materially disproportionate
adverse effect on the Company and its

-4-

 

consolidated subsidiaries taken as a whole relative to comparable U.S. banking or financial
services organizations), or (D) changes in the market price or trading volume of the Common Stock
or any other equity, equity-related or debt securities of the Company or its consolidated
subsidiaries (it being understood and agreed that the exception set forth in this clause (D) does
not apply to the underlying reason giving rise to or contributing to any such change); or (ii) the
ability of the Company to consummate the Purchase and the other transactions contemplated by this
Agreement and the Warrant and perform its obligations hereunder or thereunder on a timely basis.

     (b) “Previously Disclosed” means information set forth or incorporated in the Company’s Annual
Report on Form 10-K for the most recently completed fiscal year of the Company filed with the
Securities and Exchange Commission (the “SEC”) prior to the Signing Date (the “Last Fiscal Year”)
or in its other reports and forms filed with or furnished to the SEC under Sections 13(a), 14(a) or
15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) on or after the last day of the
Last Fiscal Year and prior to the Signing Date.

     2.2 Representations and Warranties of the Company. Except as Previously Disclosed, the
Company represents and warrants to the Investor that as of the Signing Date and as of the Closing
Date (or such other date specified herein):

     (a) Organization, Authority and Significant Subsidiaries. The Company has been duly
incorporated and is validly existing and in good standing under the laws of its jurisdiction of
organization, with the necessary power and authority to own its properties and conduct its business
in all material respects as currently conducted, and except as has not, individually or in the
aggregate, had and would not reasonably be expected to have a Company Material Adverse Effect, has
been duly qualified as a foreign corporation for the transaction of business and is in good
standing under the laws of each other jurisdiction in which it owns or leases properties or
conducts any business so as to require such qualification; each subsidiary of the Company that is a
“significant subsidiary” within the meaning of Rule 1-02(w) of Regulation S-X under the Securities
Act of 1933 (the “Securities Act”) has been duly organized and is validly existing in good standing
under the laws of its jurisdiction of organization. The Charter and bylaws of the Company, copies
of which have been provided to the Investor prior to the Signing Date, are true, complete and
correct copies of such documents as in full force and effect as of the Signing Date.

     (b) Capitalization. The authorized capital stock of the Company, and the outstanding
capital stock of the Company (including securities convertible into, or exercisable or exchangeable
for, capital stock of the Company) as of the most recent fiscal month-end preceding the Signing
Date (the “Capitalization Date”) is set forth on Schedule B. The outstanding shares of
capital stock of the Company have been duly authorized and are validly issued and outstanding,
fully paid and nonassessable, and subject to no preemptive rights (and were not issued in violation
of any preemptive rights). Except as provided in the Warrant, as of the Signing Date, the Company
does not have outstanding any securities or other obligations providing the holder the right to
acquire Common Stock that is not reserved for issuance as specified on Schedule B, and the
Company has not made any other commitment to authorize, issue or sell any Common Stock. Since the
Capitalization Date, the Company has not issued any shares of Common Stock, other than (i) shares
issued upon the exercise of stock options or delivered under other equity-based awards or other
convertible securities or warrants which were
issued and outstanding on the Capitalization Date and disclosed on Schedule B and (ii)
shares disclosed on Schedule B.

-5-

 

     (c) Preferred Shares. The Preferred Shares have been duly and validly authorized, and,
when issued and delivered pursuant to this Agreement, such Preferred Shares will be duly and
validly issued and fully paid and non-assessable, will not be issued in violation of any preemptive
rights, and will rank pari passu with or senior to all other series or classes of Preferred Stock,
whether or not issued or outstanding, with respect to the payment of dividends and the distribution
of assets in the event of any dissolution, liquidation or winding up of the Company.

     (d) The Warrant and Warrant Shares. The Warrant has been duly authorized and, when
executed and delivered as contemplated hereby, will constitute a valid and legally binding
obligation of the Company enforceable against the Company in accordance with its terms, except as
the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting the enforcement of creditors’ rights generally and general equitable principles,
regardless of whether such enforceability is considered in a proceeding at law or in equity
(“Bankruptcy Exceptions”). The shares of Common Stock issuable upon exercise of the Warrant (the
“Warrant Shares”) have been duly authorized and reserved for issuance upon exercise of the Warrant
and when so issued in accordance with the terms of the Warrant will be validly issued, fully paid
and non-assessable, subject, if applicable, to the approvals of its stockholders set forth on
Schedule C.

     (e) Authorization, Enforceability.

     (i) The Company has the corporate power and authority to execute and deliver this
Agreement and the Warrant and, subject, if applicable, to the approvals of its stockholders
set forth on Schedule C, to carry out its obligations hereunder and thereunder
(which includes the issuance of the Preferred Shares, Warrant and Warrant Shares). The
execution, delivery and performance by the Company of this Agreement and the Warrant and the
consummation of the transactions contemplated hereby and thereby have been duly authorized
by all necessary corporate action on the part of the Company and its stockholders, and no
further approval or authorization is required on the part of the Company, subject, in each
case, if applicable, to the approvals of its stockholders set forth on Schedule C.
This Agreement is a valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, subject to the Bankruptcy Exceptions.

     (ii) The execution, delivery and performance by the Company of this Agreement and the
Warrant and the consummation of the transactions contemplated hereby and thereby and
compliance by the Company with the provisions hereof and thereof, will not (A) violate,
conflict with, or result in a breach of any provision of, or constitute a default (or an
event which, with notice or lapse of time or both, would constitute a default) under, or
result in the termination of, or accelerate the performance required by, or result in a
right of termination or acceleration of, or result in the creation of, any lien, security
interest, charge or encumbrance upon any of the properties or assets of the Company or any
Company Subsidiary under any of the terms, conditions or

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provisions of (i) subject, if applicable, to the approvals of the Company’s
stockholders set forth on Schedule C, its organizational documents or (ii) any note,
bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or
obligation to which the Company or any Company Subsidiary is a party or by which it or any
Company Subsidiary may be bound, or to which the Company or any Company Subsidiary or any of
the properties or assets of the Company or any Company Subsidiary may be subject, or (B)
subject to compliance with the statutes and regulations referred to in the next paragraph,
violate any statute, rule or regulation or any judgment, ruling, order, writ, injunction or
decree applicable to the Company or any Company Subsidiary or any of their respective
properties or assets except, in the case of clauses (A)(ii) and (B), for those occurrences
that, individually or in the aggregate, have not had and would not reasonably be expected to
have a Company Material Adverse Effect.

     (iii) Other than the filing of the Certificate of Designations with the Secretary of
State of its jurisdiction of organization or other applicable Governmental Entity, any
current report on Form 8-K required to be filed with the SEC, such filings and approvals as
are required to be made or obtained under any state “blue sky” laws, the filing of any proxy
statement contemplated by Section 3.1 and such as have been made or obtained, no notice to,
filing with, exemption or review by, or authorization, consent or approval of, any
Governmental Entity is required to be made or obtained by the Company in connection with the
consummation by the Company of the Purchase except for any such notices, filings,
exemptions, reviews, authorizations, consents and approvals the failure of which to make or
obtain would not, individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect.

     (f) Anti-takeover Provisions and Rights Plan. The Board of Directors of the Company
(the “Board of Directors”) has taken all necessary action to ensure that the transactions
contemplated by this Agreement and the Warrant and the consummation of the transactions
contemplated hereby and thereby, including the exercise of the Warrant in accordance with its
terms, will be exempt from any anti-takeover or similar provisions of the Company’s Charter and
bylaws, and any other provisions of any applicable “moratorium”, “control share”, “fair price”,
“interested stockholder” or other anti-takeover laws and regulations of any jurisdiction. The
Company has taken all actions necessary to render any stockholders’ rights plan of the Company
inapplicable to this Agreement and the Warrant and the consummation of the transactions
contemplated hereby and thereby, including the exercise of the Warrant by the Investor in
accordance with its terms.

     (g) No Company Material Adverse Effect. Since the last day of the last completed
fiscal period for which the Company has filed a Quarterly Report on Form 10-Q or an Annual Report
on Form 10-K with the SEC prior to the Signing Date, no fact, circumstance, event, change,
occurrence, condition or development has occurred that, individually or in the aggregate, has had
or would reasonably be expected to have a Company Material Adverse Effect.

     (h) Company Financial Statements. Each of the consolidated financial statements of
the Company and its consolidated subsidiaries (collectively the “Company Financial Statements”)
included or incorporated by reference in the Company Reports filed with the SEC since December 31,
2006, present fairly in all material respects the consolidated financial

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position of the Company and its consolidated subsidiaries as of the dates indicated therein
(or if amended prior to the Signing Date, as of the date of such amendment) and the consolidated
results of their operations for the periods specified therein; and except as stated therein, such
financial statements (A) were prepared in conformity with GAAP applied on a consistent basis
(except as may be noted therein), (B) have been prepared from, and are in accordance with, the
books and records of the Company and the Company Subsidiaries and (C) complied as to form, as of
their respective dates of filing with the SEC, in all material respects with the applicable
accounting requirements and with the published rules and regulations of the SEC with respect
thereto.

     (i) Reports.

     (i) Since December 31, 2006, the Company and each subsidiary of the Company (each a
“Company Subsidiary” and, collectively, the “Company Subsidiaries”) has timely filed all
reports, registrations, documents, filings, statements and submissions, together with any
amendments thereto, that it was required to file with any Governmental Entity (the
foregoing, collectively, the “Company Reports”) and has paid all fees and assessments due
and payable in connection therewith, except, in each case, as would not, individually or in
the aggregate, reasonably be expected to have a Company Material Adverse Effect. As of
their respective dates of filing, the Company Reports complied in all material respects with
all statutes and applicable rules and regulations of the applicable Governmental Entities.
In the case of each such Company Report filed with or furnished to the SEC, such Company
Report (A) did not, as of its date or if amended prior to the Signing Date, as of the date
of such amendment, contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading, and (B) complied as to form in all
material respects with the applicable requirements of the Securities Act and the Exchange
Act. With respect to all other Company Reports, the Company Reports were complete and
accurate in all material respects as of their respective dates. No executive officer of the
Company or any Company Subsidiary has failed in any respect to make the certifications
required of him or her under Section 302 or 906 of the Sarbanes-Oxley Act of 2002.

     (ii) The records, systems, controls, data and information of the Company and the
Company Subsidiaries are recorded, stored, maintained and operated under means (including
any electronic, mechanical or photographic process, whether computerized or not) that are
under the exclusive ownership and direct control of the Company or the Company Subsidiaries
or their accountants (including all means of access thereto and therefrom), except for any
non-exclusive ownership and non-direct control that would not reasonably be expected to have
a material adverse effect on the system of internal accounting controls described below in
this Section 2.2(i)(ii). The Company (A) has implemented and maintains disclosure controls
and procedures (as defined in Rule 13a-15(e) of the Exchange Act) to ensure that material
information relating to the Company, including the consolidated Company Subsidiaries, is
made known to the chief executive officer and the chief financial officer of the Company by
others within those entities, and (B) has disclosed, based on its most recent evaluation
prior to the Signing Date, to the Company’s outside auditors and the audit committee of the
Board of

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Directors (x) any significant deficiencies and material weaknesses in the design or
operation of internal controls over financial reporting (as defined in Rule 13a-15(f) of the
Exchange Act) that are reasonably likely to adversely affect the Company’s ability to
record, process, summarize and report financial information and (y) any fraud, whether or
not material, that involves management or other employees who have a significant role in the
Company’s internal controls over financial reporting.

     (j) No Undisclosed Liabilities. Neither the Company nor any of the Company
Subsidiaries has any liabilities or obligations of any nature (absolute, accrued, contingent or
otherwise) which are not properly reflected or reserved against in the Company Financial Statements
to the extent required to be so reflected or reserved against in accordance with GAAP, except for
(A) liabilities that have arisen since the last fiscal year end in the ordinary and usual course of
business and consistent with past practice and (B) liabilities that, individually or in the
aggregate, have not had and would not reasonably be expected to have a Company Material Adverse
Effect.

     (k) Offering of Securities. Neither the Company nor any person acting on its behalf
has taken any action (including any offering of any securities of the Company under circumstances
which would require the integration of such offering with the offering of any of the Purchased
Securities under the Securities Act, and the rules and regulations of the SEC promulgated
thereunder), which might subject the offering, issuance or sale of any of the Purchased Securities
to Investor pursuant to this Agreement to the registration requirements of the Securities Act.

     (l) Litigation and Other Proceedings. Except (i) as set forth on Schedule D
or (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect, there is no (A) pending or, to the knowledge of the Company, threatened,
claim, action, suit, investigation or proceeding, against the Company or any Company Subsidiary or
to which any of their assets are subject nor is the Company or any Company Subsidiary subject to
any order, judgment or decree or (B) unresolved violation, criticism or exception by any
Governmental Entity with respect to any report or relating to any examinations or inspections of
the Company or any Company Subsidiaries.

     (m) Compliance with Laws. Except as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect, the Company and the Company
Subsidiaries have all permits, licenses, franchises, authorizations, orders and approvals of, and
have made all filings, applications and registrations with, Governmental Entities that are required
in order to permit them to own or lease their properties and assets and to carry on their business
as presently conducted and that are material to the business of the Company or such Company
Subsidiary. Except as set forth on Schedule E, the Company and the Company Subsidiaries
have complied in all respects and are not in default or violation of, and none of them is, to the
knowledge of the Company, under investigation with respect to or, to the knowledge of the Company,
have been threatened to be charged with or given notice of any violation of, any applicable
domestic (federal, state or local) or foreign law, statute, ordinance, license, rule, regulation,
policy or guideline, order, demand, writ, injunction, decree or judgment of any Governmental
Entity, other than such noncompliance, defaults or violations that would not, individually or in
the aggregate, reasonably be expected to have a Company Material Adverse

-9-

 

Effect. Except for statutory or regulatory restrictions of general application or as set
forth on Schedule E, no Governmental Entity has placed any restriction on the business or
properties of the Company or any Company Subsidiary that would, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect.

     (n) Employee Benefit Matters. Except as would not reasonably be expected to have,
either individually or in the aggregate, a Company Material Adverse Effect: (A) each “employee
benefit plan” (within the meaning of Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”)) providing benefits to any current or former employee, officer or
director of the Company or any member of its “Controlled Group” (defined as any organization which
is a member of a controlled group of corporations within the meaning of Section 414 of the Internal
Revenue Code of 1986, as amended (the “Code”)) that is sponsored, maintained or contributed to by
the Company or any member of its Controlled Group and for which the Company or any member of its
Controlled Group would have any liability, whether actual or contingent (each, a “Plan”) has been
maintained in compliance with its terms and with the requirements of all applicable statutes, rules
and regulations, including ERISA and the Code; (B) with respect to each Plan subject to Title IV of
ERISA (including, for purposes of this clause (B), any plan subject to Title IV of ERISA that the
Company or any member of its Controlled Group previously maintained or contributed to in the six
years prior to the Signing Date), (1) no “reportable event” (within the meaning of Section 4043(c)
of ERISA), other than a reportable event for which the notice period referred to in Section
4043(c) of ERISA has been waived, has occurred in the three years prior to the Signing Date or is
reasonably expected to occur, (2) no “accumulated funding deficiency” (within the meaning of
Section 302 of ERISA or Section 412 of the Code), whether or not waived, has occurred in the three
years prior to the Signing Date or is reasonably expected to occur, (3) the fair market value of
the assets under each Plan exceeds the present value of all benefits accrued under such Plan
(determined based on the assumptions used to fund such Plan) and (4) neither the Company nor any
member of its Controlled Group has incurred in the six years prior to the Signing Date, or
reasonably expects to incur, any liability under Title IV of ERISA (other than contributions to the
Plan or premiums to the PBGC in the ordinary course and without default) in respect of a Plan
(including any Plan that is a “multiemployer plan”, within the meaning of Section 4001(c)(3) of
ERISA); and (C) each Plan that is intended to be qualified under Section 401(a) of the Code has
received a favorable determination letter from the Internal Revenue Service with respect to its
qualified status that has not been revoked, or such a determination letter has been timely applied
for but not received by the Signing Date, and nothing has occurred, whether by action or by failure
to act, which could reasonably be expected to cause the loss, revocation or denial of such
qualified status or favorable determination letter.

     (o) Taxes. Except as would not, individually or in the aggregate, reasonably be
expected to have a Company Material Adverse Effect, (i) the Company and the Company Subsidiaries
have filed all federal, state, local and foreign income and franchise Tax returns required to be
filed through the Signing Date, subject to permitted extensions, and have paid all Taxes due
thereon, and (ii) no Tax deficiency has been determined adversely to the Company or any of the
Company Subsidiaries, nor does the Company have any knowledge of any Tax deficiencies. “Tax” or
“Taxes” means any federal, state, local or foreign income, gross receipts, property, sales, use,
license, excise, franchise, employment, payroll, withholding, alternative or add on minimum, ad
valorem, transfer or excise tax, or any other tax, custom, duty,
governmental fee or other like assessment or charge of any kind whatsoever, together with any
interest or penalty, imposed by any Governmental Entity.

-10-

 

     (p) Properties and Leases. Except as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect, the Company and the Company
Subsidiaries have good and marketable title to all real properties and all other properties and
assets owned by them, in each case free from liens, encumbrances, claims and defects that would
affect the value thereof or interfere with the use made or to be made thereof by them. Except as
would not, individually or in the aggregate, reasonably be expected to have a Company Material
Adverse Effect, the Company and the Company Subsidiaries hold all leased real or personal property
under valid and enforceable leases with no exceptions that would interfere with the use made or to
be made thereof by them.

     (q) Environmental Liability. Except as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect:

     (i) there is no legal, administrative, or other proceeding, claim or action of any
nature seeking to impose, or that would reasonably be expected to result in the imposition
of, on the Company or any Company Subsidiary, any liability relating to the release of
hazardous substances as defined under any local, state or federal environmental statute,
regulation or ordinance, including the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, pending or, to the Company’s knowledge, threatened against the
Company or any Company Subsidiary;

     (ii) to the Company’s knowledge, there is no reasonable basis for any such proceeding,
claim or action; and

     (iii) neither the Company nor any Company Subsidiary is subject to any agreement,
order, judgment or decree by or with any court, Governmental Entity or third party imposing
any such environmental liability.

     (r) Risk Management Instruments. Except as would not, individually or in the
aggregate, reasonably be expected to have a Company Material Adverse Effect, all derivative
instruments, including, swaps, caps, floors and option agreements, whether entered into for the
Company’s own account, or for the account of one or more of the Company Subsidiaries or its or
their customers, were entered into (i) only in the ordinary course of business, (ii) in accordance
with prudent practices and in all material respects with all applicable laws, rules, regulations
and regulatory policies and (iii) with counterparties believed to be financially responsible at the
time; and each of such instruments constitutes the valid and legally binding obligation of the
Company or one of the Company Subsidiaries, enforceable in accordance with its terms, except as may
be limited by the Bankruptcy Exceptions. Neither the Company or the Company Subsidiaries, nor, to
the knowledge of the Company, any other party thereto, is in breach of any of its obligations under
any such agreement or arrangement other than such breaches that would not, individually or in the
aggregate, reasonably be expected to have a Company Material Adverse Effect.

     (s) Agreements with Regulatory Agencies. Except as set forth on Schedule F,
neither the Company nor any Company Subsidiary is subject to any material cease-and-desist or other

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similar order or enforcement action issued by, or is a party to any material written
agreement, consent agreement or memorandum of understanding with, or is a party to any commitment
letter or similar undertaking to, or is subject to any capital directive by, or since December 31,
2006, has adopted any board resolutions at the request of, any Governmental Entity (other than the
Appropriate Federal Banking Agencies with jurisdiction over the Company and the Company
Subsidiaries) that currently restricts in any material respect the conduct of its business or that
in any material manner relates to its capital adequacy, its liquidity and funding policies and
practices, its ability to pay dividends, its credit, risk management or compliance policies or
procedures, its internal controls, its management or its operations or business (each item in this
sentence, a “Regulatory Agreement”), nor has the Company or any Company Subsidiary been advised
since December 31, 2006 by any such Governmental Entity that it is considering issuing, initiating,
ordering, or requesting any such Regulatory Agreement. The Company and each Company Subsidiary are
in compliance in all material respects with each Regulatory Agreement to which it is party or
subject, and neither the Company nor any Company Subsidiary has received any notice from any
Governmental Entity indicating that either the Company or any Company Subsidiary is not in
compliance in all material respects with any such Regulatory Agreement. “Appropriate Federal
Banking Agency” means the “appropriate Federal banking agency” with respect to the Company or such
Company Subsidiaries, as applicable, as defined in Section 3(q) of the Federal Deposit Insurance
Act (12 U.S.C. Section 1813(q)).

     (t) Insurance. The Company and the Company Subsidiaries are insured with reputable
insurers against such risks and in such amounts as the management of the Company reasonably has
determined to be prudent and consistent with industry practice. The Company and the Company
Subsidiaries are in material compliance with their insurance policies and are not in default under
any of the material terms thereof, each such policy is outstanding and in full force and effect,
all premiums and other payments due under any material policy have been paid, and all claims
thereunder have been filed in due and timely fashion, except, in each case, as would not,
individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect.

     (u) Intellectual Property. Except as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect, (i) the Company and each Company
Subsidiary owns or otherwise has the right to use, all intellectual property rights, including all
trademarks, trade dress, trade names, service marks, domain names, patents, inventions, trade
secrets, know-how, works of authorship and copyrights therein, that are used in the conduct of
their existing businesses and all rights relating to the plans, design and specifications of any of
its branch facilities (“Proprietary Rights”) free and clear of all liens and any claims of
ownership by current or former employees, contractors, designers or others and (ii) neither the
Company nor any of the Company Subsidiaries is materially infringing, diluting, misappropriating or
violating, nor has the Company or any or the Company Subsidiaries received any written (or, to the
knowledge of the Company, oral) communications alleging that any of them has materially infringed,
diluted, misappropriated or violated, any of the Proprietary Rights owned by any other person.
Except as would not, individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect, to the Company’s knowledge, no other person is infringing, diluting,
misappropriating or violating, nor has the Company or any or the Company Subsidiaries sent any
written communications since January 1, 2006 alleging that any
person has infringed, diluted, misappropriated or violated, any of the Proprietary Rights
owned by the Company and the Company Subsidiaries.

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     (v) Brokers and Finders. No broker, finder or investment banker is entitled to any
financial advisory, brokerage, finder’s or other fee or commission in connection with this
Agreement or the Warrant or the transactions contemplated hereby or thereby based upon arrangements
made by or on behalf of the Company or any Company Subsidiary for which the Investor could have any
liability.

Article III

Covenants

     3.1 Commercially Reasonable Efforts.

     (a) Subject to the terms and conditions of this Agreement, each of the parties will use its
commercially reasonable efforts in good faith to take, or cause to be taken, all actions, and to
do, or cause to be done, all things necessary, proper or desirable, or advisable under applicable
laws, so as to permit consummation of the Purchase as promptly as practicable and otherwise to
enable consummation of the transactions contemplated hereby and shall use commercially reasonable
efforts to cooperate with the other party to that end.

     (b) If the Company is required to obtain any stockholder approvals set forth on Schedule
C, then the Company shall comply with this Section 3.1(b) and Section 3.1(c). The Company shall
call a special meeting of its stockholders, as promptly as practicable following the Closing, to
vote on proposals (collectively, the “Stockholder Proposals”) to (i) approve the exercise of the
Warrant for Common Stock for purposes of the rules of the national security exchange on which the
Common Stock is listed and/or (ii) amend the Company’s Charter to increase the number of authorized
shares of Common Stock to at least such number as shall be sufficient to permit the full exercise
of the Warrant for Common Stock and comply with the other provisions of this Section 3.1(b) and
Section 3.1(c). The Board of Directors shall recommend to the Company’s stockholders that such
stockholders vote in favor of the Stockholder Proposals. In connection with such meeting, the
Company shall prepare (and the Investor will reasonably cooperate with the Company to prepare) and
file with the SEC as promptly as practicable (but in no event more than ten business days after the
Closing) a preliminary proxy statement, shall use its reasonable best efforts to respond to any
comments of the SEC or its staff thereon and to cause a definitive proxy statement related to such
stockholders’ meeting to be mailed to the Company’s stockholders not more than five business days
after clearance thereof by the SEC, and shall use its reasonable best efforts to solicit proxies
for such stockholder approval of the Stockholder Proposals. The Company shall notify the Investor
promptly of the receipt of any comments from the SEC or its staff with respect to the proxy
statement and of any request by the SEC or its staff for amendments or supplements to such proxy
statement or for additional information and will supply the Investor with copies of all
correspondence between the Company or any of its representatives, on the one hand, and the SEC or
its staff, on the other hand, with respect to such proxy statement. If at any time prior to such
stockholders’ meeting there shall occur any event that is required to be set forth in an amendment
or supplement to the proxy statement, the Company shall as promptly as practicable prepare and mail
to its stockholders such an amendment or supplement. Each of the Investor and the Company agrees

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promptly to correct any information provided by it or on its behalf for use in the proxy
statement if and to the extent that such information shall have become false or misleading in any
material respect, and the Company shall as promptly as practicable prepare and mail to its
stockholders an amendment or supplement to correct such information to the extent required by
applicable laws and regulations. The Company shall consult with the Investor prior to filing any
proxy statement, or any amendment or supplement thereto, and provide the Investor with a reasonable
opportunity to comment thereon. In the event that the approval of any of the Stockholder Proposals
is not obtained at such special stockholders meeting, the Company shall include a proposal to
approve (and the Board of Directors shall recommend approval of) each such proposal at a meeting of
its stockholders no less than once in each subsequent six-month period beginning on January 1, 2009
until all such approvals are obtained or made.

     (c) None of the information supplied by the Company or any of the Company Subsidiaries for
inclusion in any proxy statement in connection with any such stockholders meeting of the Company
will, at the date it is filed with the SEC, when first mailed to the Company’s stockholders and at
the time of any stockholders meeting, and at the time of any amendment or supplement thereof,
contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in light of the circumstances under which they are made, not
misleading.

     3.2 Expenses. Unless otherwise provided in this Agreement or the Warrant, each of the
parties hereto will bear and pay all costs and expenses incurred by it or on its behalf in
connection with the transactions contemplated under this Agreement and the Warrant, including fees
and expenses of its own financial or other consultants, investment bankers, accountants and
counsel.

     3.3 Sufficiency of Authorized Common Stock; Exchange Listing.

     (a) During the period from the Closing Date (or, if the approval of the Stockholder Proposals
is required, the date of such approval) until the date on which the Warrant has been fully
exercised, the Company shall at all times have reserved for issuance, free of preemptive or similar
rights, a sufficient number of authorized and unissued Warrant Shares to effectuate such exercise.
Nothing in this Section 3.3 shall preclude the Company from satisfying its obligations in respect
of the exercise of the Warrant by delivery of shares of Common Stock which are held in the treasury
of the Company. As soon as reasonably practicable following the Closing, the Company shall, at its
expense, cause the Warrant Shares to be listed on the same national securities exchange on which
the Common Stock is listed, subject to official notice of issuance, and shall maintain such listing
for so long as any Common Stock is listed on such exchange.

     (b) If requested by the Investor, the Company shall promptly use its reasonable best efforts
to cause the Preferred Shares to be approved for listing on a national securities exchange as
promptly as practicable following such request.

     3.4 Certain Notifications Until Closing. From the Signing Date until the Closing, the
Company shall promptly notify the Investor of (i) any fact, event or circumstance of which it is
aware and which would reasonably be expected to cause any representation or warranty of the Company
contained in this Agreement to be untrue or inaccurate in any material respect or to

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cause any covenant or agreement of the Company contained in this Agreement not to be complied
with or satisfied in any material respect and (ii) except as Previously Disclosed, any fact,
circumstance, event, change, occurrence, condition or development of which the Company is aware and
which, individually or in the aggregate, has had or would reasonably be expected to have a Company
Material Adverse Effect; provided, however, that delivery of any notice pursuant to this Section
3.4 shall not limit or affect any rights of or remedies available to the Investor; provided,
further, that a failure to comply with this Section 3.4 shall not constitute a breach of this
Agreement or the failure of any condition set forth in Section 1.2 to be satisfied unless the
underlying Company Material Adverse Effect or material breach would independently result in the
failure of a condition set forth in Section 1.2 to be satisfied.

     3.5 Access, Information and Confidentiality.

     (a) From the Signing Date until the date when the Investor holds an amount of Preferred Shares
having an aggregate liquidation value of less than 10% of the Purchase Price, the Company will
permit the Investor and its agents, consultants, contractors and advisors (x) acting through the
Appropriate Federal Banking Agency, to examine the corporate books and make copies thereof and to
discuss the affairs, finances and accounts of the Company and the Company Subsidiaries with the
principal officers of the Company, all upon reasonable notice and at such reasonable times and as
often as the Investor may reasonably request and (y) to review any information material to the
Investor’s investment in the Company provided by the Company to its Appropriate Federal Banking
Agency. Any investigation pursuant to this Section 3.5 shall be conducted during normal business
hours and in such manner as not to interfere unreasonably with the conduct of the business of the
Company, and nothing herein shall require the Company or any Company Subsidiary to disclose any
information to the Investor to the extent (i) prohibited by applicable law or regulation, or (ii)
that such disclosure would reasonably be expected to cause a violation of any agreement to which
the Company or any Company Subsidiary is a party or would cause a risk of a loss of privilege to
the Company or any Company Subsidiary (provided that the Company shall use commercially reasonable
efforts to make appropriate substitute disclosure arrangements under circumstances where the
restrictions in this clause (ii) apply).

     (b) The Investor will use reasonable best efforts to hold, and will use reasonable best
efforts to cause its agents, consultants, contractors and advisors to hold, in confidence all
non-public records, books, contracts, instruments, computer data and other data and information
(collectively, “Information”) concerning the Company furnished or made available to it by the
Company or its representatives pursuant to this Agreement (except to the extent that such
information can be shown to have been (i) previously known by such party on a non-confidential
basis, (ii) in the public domain through no fault of such party or (iii) later lawfully acquired
from other sources by the party to which it was furnished (and without violation of any other
confidentiality obligation)); provided that nothing herein shall prevent the Investor from
disclosing any Information to the extent required by applicable laws or regulations or by any
subpoena or similar legal process.

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Article IV

Additional Agreements

     4.1 Purchase for Investment. The Investor acknowledges that the Purchased Securities
and the Warrant Shares have not been registered under the Securities Act or under any state
securities laws. The Investor (a) is acquiring the Purchased Securities pursuant to an exemption
from registration under the Securities Act solely for investment with no present intention to
distribute them to any person in violation of the Securities Act or any applicable U.S. state
securities laws, (b) will not sell or otherwise dispose of any of the Purchased Securities or the
Warrant Shares, except in compliance with the registration requirements or exemption provisions of
the Securities Act and any applicable U.S. state securities laws, and (c) has such knowledge and
experience in financial and business matters and in investments of this type that it is capable of
evaluating the merits and risks of the Purchase and of making an informed investment decision.

     4.2 Legends.

     (a) The Investor agrees that all certificates or other instruments representing the Warrant
and the Warrant Shares will bear a legend substantially to the following effect:

“THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED,
SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN
EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER SUCH ACT OR SUCH LAWS.”

     (b) The Investor agrees that all certificates or other instruments representing the Warrant
will also bear a legend substantially to the following effect:

“THIS INSTRUMENT IS ISSUED SUBJECT TO THE RESTRICTIONS ON TRANSFER AND OTHER
PROVISIONS OF A SECURITIES PURCHASE AGREEMENT BETWEEN THE ISSUER OF THESE SECURITIES
AND THE INVESTOR REFERRED TO THEREIN, A COPY OF WHICH IS ON FILE WITH THE ISSUER.
THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE
TRANSFERRED EXCEPT IN COMPLIANCE WITH SAID AGREEMENT. ANY SALE OR OTHER TRANSFER
NOT IN COMPLIANCE WITH SAID AGREEMENT WILL BE VOID.”

     (c) In addition, the Investor agrees that all certificates or other instruments representing
the Preferred Shares will bear a legend substantially to the following effect:

“THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE NOT SAVINGS ACCOUNTS, DEPOSITS OR OTHER
OBLIGATIONS OF A BANK AND ARE NOT

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INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY.

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT
RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. EACH PURCHASER OF
THE SECURITIES REPRESENTED BY THIS INSTRUMENT IS NOTIFIED THAT THE SELLER MAY BE RELYING ON
THE EXEMPTION FROM SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. ANY
TRANSFEREE OF THE SECURITIES REPRESENTED BY THIS INSTRUMENT BY ITS ACCEPTANCE HEREOF (1)
REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT), (2) AGREES THAT IT WILL NOT OFFER, SELL OR OTHERWISE TRANSFER THE
SECURITIES REPRESENTED BY THIS INSTRUMENT EXCEPT (A) PURSUANT TO A REGISTRATION STATEMENT
WHICH IS THEN EFFECTIVE UNDER THE SECURITIES ACT, (B) FOR SO LONG AS THE SECURITIES
REPRESENTED BY THIS INSTRUMENT ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (C) TO THE ISSUER OR (D) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH
PERSON TO WHOM THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.”

     (d) In the event that any Purchased Securities or Warrant Shares (i) become registered under
the Securities Act or (ii) are eligible to be transferred without restriction in accordance with
Rule 144 or another exemption from registration under the Securities Act (other than Rule 144A),
the Company shall issue new certificates or other instruments representing such Purchased
Securities or Warrant Shares, which shall not contain the applicable legends in Sections 4.2(a) and
(c) above; provided that the Investor surrenders to the Company the previously issued certificates
or other instruments. Upon Transfer of all or a portion of the Warrant in compliance with Section
4.4, the Company shall issue new certificates or other instruments representing the Warrant, which
shall not contain the applicable legend in Section 4.2(b) above; provided that the Investor
surrenders to the Company the previously issued certificates or other instruments.

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     4.3 Certain Transactions. The Company will not merge or consolidate with, or sell,
transfer or lease all or substantially all of its property or assets to, any other party unless the
successor, transferee or lessee party (or its ultimate parent entity), as the case may be (if not
the Company), expressly assumes the due and punctual performance and observance of each and every
covenant, agreement and condition of this Agreement to be performed and observed by the Company.

     4.4 Transfer of Purchased Securities and Warrant Shares; Restrictions on Exercise of the
Warrant. Subject to compliance with applicable securities laws, the Investor shall be
permitted to transfer, sell, assign or otherwise dispose of (“Transfer”) all or a portion of the
Purchased Securities or Warrant Shares at any time, and the Company shall take all steps as may be
reasonably requested by the Investor to facilitate the Transfer of the Purchased Securities and the
Warrant Shares; provided that the Investor shall not Transfer a portion or portions of the Warrant
with respect to, and/or exercise the Warrant for, more than one-half of the Initial Warrant Shares
(as such number may be adjusted from time to time pursuant to Section 13 thereof) in the aggregate
until the earlier of (a) the date on which the Company (or any successor by Business Combination)
has received aggregate gross proceeds of not less than the Purchase Price (and the purchase price
paid by the Investor to any such successor for securities of such successor purchased under the
CPP) from one or more Qualified Equity Offerings (including Qualified Equity Offerings of such
successor) and (b) December 31, 2009. “Qualified Equity Offering” means the sale and issuance for
cash by the Company to persons other than the Company or any of the Company Subsidiaries after the
Closing Date of shares of perpetual Preferred Stock, Common Stock or any combination of such stock,
that, in each case, qualify as and may be included in Tier 1 capital of the Company at the time of
issuance under the applicable risk-based capital guidelines of the Company’s Appropriate Federal
Banking Agency (other than any such sales and issuances made pursuant to agreements or arrangements
entered into, or pursuant to financing plans which were publicly announced, on or prior to October
13, 2008). “Business Combination” means a merger, consolidation, statutory share exchange or
similar transaction that requires the approval of the Company’s stockholders.

     4.5 Registration Rights.

     (a) Registration.

     (i) Subject to the terms and conditions of this Agreement, the Company covenants and
agrees that as promptly as practicable after the Closing Date (and in any event no later
than 30 days after the Closing Date), the Company shall prepare and file with the SEC a
Shelf Registration Statement covering all Registrable Securities (or otherwise designate an
existing Shelf Registration Statement filed with the SEC to cover the Registrable
Securities), and, to the extent the Shelf Registration Statement has not theretofore been
declared effective or is not automatically effective upon such filing, the Company shall use
reasonable best efforts to cause such Shelf Registration Statement to be declared or become
effective and to keep such Shelf Registration Statement continuously effective and in
compliance with the Securities Act and usable for resale of such Registrable Securities for
a period from the date of its initial effectiveness until such time as there are no
Registrable Securities remaining (including by refiling such Shelf Registration Statement
(or a new Shelf Registration Statement) if the initial Shelf

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Registration Statement expires). So long as the Company is a well-known seasoned
issuer (as defined in Rule 405 under the Securities Act) at the time of filing of the Shelf
Registration Statement with the SEC, such Shelf Registration Statement shall be designated
by the Company as an automatic Shelf Registration Statement. Notwithstanding the foregoing,
if on the Signing Date the Company is not eligible to file a registration statement on Form
S-3, then the Company shall not be obligated to file a Shelf Registration Statement unless
and until requested to do so in writing by the Investor.

     (ii) Any registration pursuant to Section 4.5(a)(i) shall be effected by means of a
shelf registration on an appropriate form under Rule 415 under the Securities Act (a “Shelf
Registration Statement”). If the Investor or any other Holder intends to distribute any
Registrable Securities by means of an underwritten offering it shall promptly so advise the
Company and the Company shall take all reasonable steps to facilitate such distribution,
including the actions required pursuant to Section 4.5(c); provided that the Company shall
not be required to facilitate an underwritten offering of Registrable Securities unless the
expected gross proceeds from such offering exceed (i) 2% of the initial aggregate
liquidation preference of the Preferred Shares if such initial aggregate liquidation
preference is less than $2 billion and (ii) $200 million if the initial aggregate
liquidation preference of the Preferred Shares is equal to or greater than $2 billion. The
lead underwriters in any such distribution shall be selected by the Holders of a majority of
the Registrable Securities to be distributed; provided that to the extent appropriate and
permitted under applicable law, such Holders shall consider the qualifications of any
broker-dealer Affiliate of the Company in selecting the lead underwriters in any such
distribution.

     (iii) The Company shall not be required to effect a registration (including a resale of
Registrable Securities from an effective Shelf Registration Statement) or an underwritten
offering pursuant to Section 4.5(a): (A) with respect to securities that are not
Registrable Securities; or (B) if the Company has notified the Investor and all other
Holders that in the good faith judgment of the Board of Directors, it would be materially
detrimental to the Company or its securityholders for such registration or underwritten
offering to be effected at such time, in which event the Company shall have the right to
defer such registration for a period of not more than 45 days after receipt of the request
of the Investor or any other Holder; provided that such right to delay a registration or
underwritten offering shall be exercised by the Company (1) only if the Company has
generally exercised (or is concurrently exercising) similar black-out rights against holders
of similar securities that have registration rights and (2) not more than three times in any
12-month period and not more than 90 days in the aggregate in any 12-month period.

     (iv) If during any period when an effective Shelf Registration Statement is not
available, the Company proposes to register any of its equity securities, other than a
registration pursuant to Section 4.5(a)(i) or a Special Registration, and the registration
form to be filed may be used for the registration or qualification for distribution of
Registrable Securities, the Company will give prompt written notice to the Investor and all
other Holders of its intention to effect such a registration (but in no event less than ten
days prior to the anticipated filing date) and will include in such registration all

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Registrable Securities with respect to which the Company has received written requests
for inclusion therein within ten business days after the date of the Company’s notice (a
“Piggyback Registration”). Any such person that has made such a written request may
withdraw its Registrable Securities from such Piggyback Registration by giving written
notice to the Company and the managing underwriter, if any, on or before the fifth business
day prior to the planned effective date of such Piggyback Registration. The Company may
terminate or withdraw any registration under this Section 4.5(a)(iv) prior to the
effectiveness of such registration, whether or not Investor or any other Holders have
elected to include Registrable Securities in such registration.

     (v) If the registration referred to in Section 4.5(a)(iv) is proposed to be
underwritten, the Company will so advise Investor and all other Holders as a part of the
written notice given pursuant to Section 4.5(a)(iv). In such event, the right of Investor
and all other Holders to registration pursuant to Section 4.5(a) will be conditioned upon
such persons’ participation in such underwriting and the inclusion of such person’s
Registrable Securities in the underwriting if such securities are of the same class of
securities as the securities to be offered in the underwritten offering, and each such
person will (together with the Company and the other persons distributing their securities
through such underwriting) enter into an underwriting agreement in customary form with the
underwriter or underwriters selected for such underwriting by the Company; provided that the
Investor (as opposed to other Holders) shall not be required to indemnify any person in
connection with any registration. If any participating person disapproves of the terms of
the underwriting, such person may elect to withdraw therefrom by written notice to the
Company, the managing underwriters and the Investor (if the Investor is participating in the
underwriting).

     (vi) If either (x) the Company grants “piggyback” registration rights to one or more
third parties to include their securities in an underwritten offering under the Shelf
Registration Statement pursuant to Section 4.5(a)(ii) or (y) a Piggyback Registration under
Section 4.5(a)(iv) relates to an underwritten offering on behalf of the Company, and in
either case the managing underwriters advise the Company that in their reasonable opinion
the number of securities requested to be included in such offering exceeds the number which
can be sold without adversely affecting the marketability of such offering (including an
adverse effect on the per share offering price), the Company will include in such offering
only such number of securities that in the reasonable opinion of such managing underwriters
can be sold without adversely affecting the marketability of the offering (including an
adverse effect on the per share offering price), which securities will be so included in the
following order of priority: (A) first, in the case of a Piggyback Registration under
Section 4.5(a)(iv), the securities the Company proposes to sell, (B) then the Registrable
Securities of the Investor and all other Holders who have requested inclusion of Registrable
Securities pursuant to Section 4.5(a)(ii) or Section 4.5(a)(iv), as applicable, pro rata on
the basis of the aggregate number of such securities or shares owned by each such person and
(C) lastly, any other securities of the Company that have been requested to be so included,
subject to the terms of this Agreement; provided, however, that if the Company has, prior to
the Signing Date, entered into an agreement with respect to its securities that is
inconsistent with the order of priority contemplated
hereby then it shall apply the order of priority in such conflicting agreement to the
extent that it would otherwise result in a breach under such agreement.

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     (b) Expenses of Registration. All Registration Expenses incurred in connection with
any registration, qualification or compliance hereunder shall be borne by the Company. All Selling
Expenses incurred in connection with any registrations hereunder shall be borne by the holders of
the securities so registered pro rata on the basis of the aggregate offering or sale price of the
securities so registered.

     (c) Obligations of the Company. The Company shall use its reasonable best efforts,
for so long as there are Registrable Securities outstanding, to take such actions as are under its
control to not become an ineligible issuer (as defined in Rule 405 under the Securities Act) and to
remain a well-known seasoned issuer (as defined in Rule 405 under the Securities Act) if it has
such status on the Signing Date or becomes eligible for such status in the future. In addition,
whenever required to effect the registration of any Registrable Securities or facilitate the
distribution of Registrable Securities pursuant to an effective Shelf Registration Statement, the
Company shall, as expeditiously as reasonably practicable:

     (i) Prepare and file with the SEC a prospectus supplement with respect to a proposed
offering of Registrable Securities pursuant to an effective registration statement, subject
to Section 4.5(d), keep such registration statement effective and keep such prospectus
supplement current until the securities described therein are no longer Registrable
Securities.

     (ii) Prepare and file with the SEC such amendments and supplements to the applicable
registration statement and the prospectus or prospectus supplement used in connection with
such registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement.

     (iii) Furnish to the Holders and any underwriters such number of copies of the
applicable registration statement and each such amendment and supplement thereto (including
in each case all exhibits) and of a prospectus, including a preliminary prospectus, in
conformity with the requirements of the Securities Act, and such other documents as they may
reasonably request in order to facilitate the disposition of Registrable Securities owned or
to be distributed by them.

     (iv) Use its reasonable best efforts to register and qualify the securities covered by
such registration statement under such other securities or Blue Sky laws of such
jurisdictions as shall be reasonably requested by the Holders or any managing
underwriter(s), to keep such registration or qualification in effect for so long as such
registration statement remains in effect, and to take any other action which may be
reasonably necessary to enable such seller to consummate the disposition in such
jurisdictions of the securities owned by such Holder; provided that the Company shall not be
required in connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service of process in any such states or jurisdictions.

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     (v) Notify each Holder of Registrable Securities at any time when a prospectus relating
thereto is required to be delivered under the Securities Act of the happening of any event
as a result of which the applicable prospectus, as then in effect, includes an untrue
statement of a material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the circumstances
then existing.

     (vi) Give written notice to the Holders:

     (A) when any registration statement filed pursuant to Section 4.5(a) or any
amendment thereto has been filed with the SEC (except for any amendment effected by
the filing of a document with the SEC pursuant to the Exchange Act) and when such
registration statement or any post-effective amendment thereto has become effective;

     (B) of any request by the SEC for amendments or supplements to any registration
statement or the prospectus included therein or for additional information;

     (C) of the issuance by the SEC of any stop order suspending the effectiveness
of any registration statement or the initiation of any proceedings for that purpose;

     (D) of the receipt by the Company or its legal counsel of any notification with
respect to the suspension of the qualification of the Common Stock for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose;

     (E) of the happening of any event that requires the Company to make changes in
any effective registration statement or the prospectus related to the registration
statement in order to make the statements therein not misleading (which notice shall
be accompanied by an instruction to suspend the use of the prospectus until the
requisite changes have been made); and

     (F) if at any time the representations and warranties of the Company contained
in any underwriting agreement contemplated by Section 4.5(c)(x) cease to be true and
correct.

     (vii) Use its reasonable best efforts to prevent the issuance or obtain the withdrawal
of any order suspending the effectiveness of any registration statement referred to in
Section 4.5(c)(vi)(C) at the earliest practicable time.

     (viii) Upon the occurrence of any event contemplated by Section 4.5(c)(v) or
4.5(c)(vi)(E), promptly prepare a post-effective amendment to such registration statement or
a supplement to the related prospectus or file any other required document so that, as
thereafter delivered to the Holders and any underwriters, the prospectus will not contain an
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not

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misleading. If the Company notifies the Holders in accordance with
Section 4.5(c)(vi)(E) to suspend the use of the prospectus until the requisite changes to
the prospectus have been made, then the Holders and any underwriters shall suspend use of
such prospectus and use their reasonable best efforts to return to the Company all copies of
such prospectus (at the Company’s expense) other than permanent file copies then in such
Holders’ or underwriters’ possession. The total number of days that any such suspension may
be in effect in any 12-month period shall not exceed 90 days.

     (ix) Use reasonable best efforts to procure the cooperation of the Company’s transfer
agent in settling any offering or sale of Registrable Securities, including with respect to
the transfer of physical stock certificates into book-entry form in accordance with any
procedures reasonably requested by the Holders or any managing underwriter(s).

     (x) If an underwritten offering is requested pursuant to Section 4.5(a)(ii), enter into
an underwriting agreement in customary form, scope and substance and take all such other
actions reasonably requested by the Holders of a majority of the Registrable Securities
being sold in connection therewith or by the managing underwriter(s), if any, to expedite or
facilitate the underwritten disposition of such Registrable Securities, and in connection
therewith in any underwritten offering (including making members of management and
executives of the Company available to participate in “road shows”, similar sales events and
other marketing activities), (A) make such representations and warranties to the Holders
that are selling stockholders and the managing underwriter(s), if any, with respect to the
business of the Company and its subsidiaries, and the Shelf Registration Statement,
prospectus and documents, if any, incorporated or deemed to be incorporated by reference
therein, in each case, in customary form, substance and scope, and, if true, confirm the
same if and when requested, (B) use its reasonable best efforts to furnish the underwriters
with opinions of counsel to the Company, addressed to the managing underwriter(s), if any,
covering the matters customarily covered in such opinions requested in underwritten
offerings, (C) use its reasonable best efforts to obtain “cold comfort” letters from the
independent certified public accountants of the Company (and, if necessary, any other
independent certified public accountants of any business acquired by the Company for which
financial statements and financial data are included in the Shelf Registration Statement)
who have certified the financial statements included in such Shelf Registration Statement,
addressed to each of the managing underwriter(s), if any, such letters to be in customary
form and covering matters of the type customarily covered in “cold comfort” letters, (D) if
an underwriting agreement is entered into, the same shall contain indemnification provisions
and procedures customary in underwritten offerings (provided that the Investor shall not be
obligated to provide any indemnity), and (E) deliver such documents and certificates as may
be reasonably requested by the Holders of a majority of the Registrable Securities being
sold in connection therewith, their counsel and the managing underwriter(s), if any, to
evidence the continued validity of the representations and warranties made pursuant to
clause (i) above and to evidence compliance with any customary conditions contained in the
underwriting agreement or other agreement entered into by the Company.

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     (xi) Make available for inspection by a representative of Holders that are selling
stockholders, the managing underwriter(s), if any, and any attorneys or accountants retained
by such Holders or managing underwriter(s), at the offices where normally kept, during
reasonable business hours, financial and other records, pertinent corporate documents and
properties of the Company, and cause the officers, directors and employees of the Company to
supply all information in each case reasonably requested (and of the type customarily
provided in connection with due diligence conducted in connection with a registered public
offering of securities) by any such representative, managing underwriter(s), attorney or
accountant in connection with such Shelf Registration Statement.

     (xii) Use reasonable best efforts to cause all such Registrable Securities to be listed
on each national securities exchange on which similar securities issued by the Company are
then listed or, if no similar securities issued by the Company are then listed on any
national securities exchange, use its reasonable best efforts to cause all such Registrable
Securities to be listed on such securities exchange as the Investor may designate.

     (xiii) If requested by Holders of a majority of the Registrable Securities being
registered and/or sold in connection therewith, or the managing underwriter(s), if any,
promptly include in a prospectus supplement or amendment such information as the Holders of
a majority of the Registrable Securities being registered and/or sold in connection
therewith or managing underwriter(s), if any, may reasonably request in order to permit the
intended method of distribution of such securities and make all required filings of such
prospectus supplement or such amendment as soon as practicable after the Company has
received such request.

     (xiv) Timely provide to its security holders earning statements satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

     (d) Suspension of Sales. Upon receipt of written notice from the Company that a
registration statement, prospectus or prospectus supplement contains or may contain an untrue
statement of a material fact or omits or may omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading or that circumstances exist that
make inadvisable use of such registration statement, prospectus or prospectus supplement, the
Investor and each Holder of Registrable Securities shall forthwith discontinue disposition of
Registrable Securities until the Investor and/or Holder has received copies of a supplemented or
amended prospectus or prospectus supplement, or until the Investor and/or such Holder is advised in
writing by the Company that the use of the prospectus and, if applicable, prospectus supplement may
be resumed, and, if so directed by the Company, the Investor and/or such Holder shall deliver to
the Company (at the Company’s expense) all copies, other than permanent file copies then in the
Investor and/or such Holder’s possession, of the prospectus and, if applicable, prospectus
supplement covering such Registrable Securities current at the time of receipt of such notice. The
total number of days that any such suspension may be in effect in any 12-month period shall not
exceed 90 days.

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     (e) Termination of Registration Rights. A Holder’s registration rights as to any
securities held by such Holder (and its Affiliates, partners, members and former members) shall not
be available unless such securities are Registrable Securities.

     (f) Furnishing Information.

     (i) Neither the Investor nor any Holder shall use any free writing prospectus (as
defined in Rule 405) in connection with the sale of Registrable Securities without the prior
written consent of the Company.

     (ii) It shall be a condition precedent to the obligations of the Company to take any
action pursuant to Section 4.5(c) that Investor and/or the selling Holders and the
underwriters, if any, shall furnish to the Company such information regarding themselves,
the Registrable Securities held by them and the intended method of disposition of such
securities as shall be required to effect the registered offering of their Registrable
Securities.

     (g) Indemnification.

     (i) The Company agrees to indemnify each Holder and, if a Holder is a person other than
an individual, such Holder’s officers, directors, employees, agents, representatives and
Affiliates, and each Person, if any, that controls a Holder within the meaning of the
Securities Act (each, an “Indemnitee”), against any and all losses, claims, damages,
actions, liabilities, costs and expenses (including reasonable fees, expenses and
disbursements of attorneys and other professionals incurred in connection with
investigating, defending, settling, compromising or paying any such losses, claims, damages,
actions, liabilities, costs and expenses), joint or several, arising out of or based upon
any untrue statement or alleged untrue statement of material fact contained in any
registration statement, including any preliminary prospectus or final prospectus contained
therein or any amendments or supplements thereto or any documents incorporated therein by
reference or contained in any free writing prospectus (as such term is defined in Rule 405)
prepared by the Company or authorized by it in writing for use by such Holder (or any
amendment or supplement thereto); or any omission to state therein a material fact required
to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; provided, that the Company shall
not be liable to such Indemnitee in any such case to the extent that any such loss, claim,
damage, liability (or action or proceeding in respect thereof) or expense arises out of or
is based upon (A) an untrue statement or omission made in such registration statement,
including any such preliminary prospectus or final prospectus contained therein or any such
amendments or supplements thereto or contained in any free writing prospectus (as such term
is defined in Rule 405) prepared by the Company or authorized by it in writing for use by
such Holder (or any amendment or supplement thereto), in reliance upon and in conformity
with information regarding such Indemnitee or its plan of distribution or ownership
interests which was furnished in writing to the Company by such Indemnitee for use in
connection with such registration statement, including any such preliminary prospectus or
final prospectus contained therein or any such amendments or supplements thereto, or (B)
offers or sales effected by or on behalf of
such Indemnitee “by means of” (as defined in Rule 159A) a “free writing prospectus” (as
defined in Rule 405) that was not authorized in writing by the Company.

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     (ii) If the indemnification provided for in Section 4.5(g)(i) is unavailable to an
Indemnitee with respect to any losses, claims, damages, actions, liabilities, costs or
expenses referred to therein or is insufficient to hold the Indemnitee harmless as
contemplated therein, then the Company, in lieu of indemnifying such Indemnitee, shall
contribute to the amount paid or payable by such Indemnitee as a result of such losses,
claims, damages, actions, liabilities, costs or expenses in such proportion as is
appropriate to reflect the relative fault of the Indemnitee, on the one hand, and the
Company, on the other hand, in connection with the statements or omissions which resulted in
such losses, claims, damages, actions, liabilities, costs or expenses as well as any other
relevant equitable considerations. The relative fault of the Company, on the one hand, and
of the Indemnitee, on the other hand, shall be determined by reference to, among other
factors, whether the untrue statement of a material fact or omission to state a material
fact relates to information supplied by the Company or by the Indemnitee and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission; the Company and each Holder agree that it would not be just and
equitable if contribution pursuant to this Section 4.5(g)(ii) were determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in Section 4.5(g)(i). No Indemnitee guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from the Company if the Company was not guilty of such fraudulent
misrepresentation.

     (h) Assignment of Registration Rights. The rights of the Investor to registration of
Registrable Securities pursuant to Section 4.5(a) may be assigned by the Investor to a transferee
or assignee of Registrable Securities with a liquidation preference or, in the case of Registrable
Securities other than Preferred Shares, a market value, no less than an amount equal to (i) 2% of
the initial aggregate liquidation preference of the Preferred Shares if such initial aggregate
liquidation preference is less than $2 billion and (ii) $200 million if the initial aggregate
liquidation preference of the Preferred Shares is equal to or greater than $2 billion; provided,
however, the transferor shall, within ten days after such transfer, furnish to the Company written
notice of the name and address of such transferee or assignee and the number and type of
Registrable Securities that are being assigned. For purposes of this Section 4.5(h), “market
value” per share of Common Stock shall be the last reported sale price of the Common Stock on the
national securities exchange on which the Common Stock is listed or admitted to trading on the last
trading day prior to the proposed transfer, and the “market value” for the Warrant (or any portion
thereof) shall be the market value per share of Common Stock into which the Warrant (or such
portion) is exercisable less the exercise price per share.

     (i) Clear Market. With respect to any underwritten offering of Registrable Securities
by the Investor or other Holders pursuant to this Section 4.5, the Company agrees not to effect
(other than pursuant to such registration or pursuant to a Special Registration) any public sale or
distribution, or to file any Shelf Registration Statement (other than such registration or a
Special Registration) covering, in the case of an underwritten offering of Common Stock or
Warrants, any of its equity securities or, in the case of an underwritten offering of Preferred
Shares, any

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Preferred Stock of the Company, or, in each case, any securities convertible into or
exchangeable or exercisable for such securities, during the period not to exceed ten days prior and
60 days following the effective date of such offering or such longer period up to 90 days as may be
requested by the managing underwriter for such underwritten offering. The Company also agrees to
cause such of its directors and senior executive officers to execute and deliver customary lock-up
agreements in such form and for such time period up to 90 days as may be requested by the managing
underwriter. “Special Registration” means the registration of (A) equity securities and/or options
or other rights in respect thereof solely registered on Form S-4 or Form S-8 (or successor form) or
(B) shares of equity securities and/or options or other rights in respect thereof to be offered to
directors, members of management, employees, consultants, customers, lenders or vendors of the
Company or Company Subsidiaries or in connection with dividend reinvestment plans.

     (j) Rule 144; Rule 144A. With a view to making available to the Investor and Holders
the benefits of certain rules and regulations of the SEC which may permit the sale of the
Registrable Securities to the public without registration, the Company agrees to use its reasonable
best efforts to:

     (i) make and keep public information available, as those terms are understood and
defined in Rule 144(c)(1) or any similar or analogous rule promulgated under the Securities
Act, at all times after the Signing Date;

     (ii) (A) file with the SEC, in a timely manner, all reports and other documents
required of the Company under the Exchange Act, and (B) if at any time the Company is not
required to file such reports, make available, upon the request of any Holder, such
information necessary to permit sales pursuant to Rule 144A (including the information
required by Rule 144A(d)(4) under the Securities Act);

     (iii) so long as the Investor or a Holder owns any Registrable Securities, furnish to
the Investor or such Holder forthwith upon request: a written statement by the Company as to
its compliance with the reporting requirements of Rule 144 under the Securities Act, and of
the Exchange Act; a copy of the most recent annual or quarterly report of the Company; and
such other reports and documents as the Investor or Holder may reasonably request in
availing itself of any rule or regulation of the SEC allowing it to sell any such securities
to the public without registration; and

     (iv) take such further action as any Holder may reasonably request, all to the extent
required from time to time to enable such Holder to sell Registrable Securities without
registration under the Securities Act.

     (k) As used in this Section 4.5, the following terms shall have the following respective
meanings:

     (i) “Holder” means the Investor and any other holder of Registrable Securities to whom
the registration rights conferred by this Agreement have been transferred in compliance with
Section 4.5(h) hereof.

-27-

 

     (ii) “Holders’ Counsel” means one counsel for the selling Holders chosen by Holders
holding a majority interest in the Registrable Securities being registered.

     (iii) “Register,” “registered,” and “registration” shall refer to a registration
effected by preparing and (A) filing a registration statement in compliance with the
Securities Act and applicable rules and regulations thereunder, and the declaration or
ordering of effectiveness of such registration statement or (B) filing a prospectus and/or
prospectus supplement in respect of an appropriate effective registration statement on Form
S-3.

     (iv) “Registrable Securities” means (A) all Preferred Shares, (B) the Warrant (subject
to Section 4.5(p)) and (C) any equity securities issued or issuable directly or indirectly
with respect to the securities referred to in the foregoing clauses (A) or (B) by way of
conversion, exercise or exchange thereof, including the Warrant Shares, or share dividend or
share split or in connection with a combination of shares, recapitalization,
reclassification, merger, amalgamation, arrangement, consolidation or other reorganization,
provided that, once issued, such securities will not be Registrable Securities when (1) they
are sold pursuant to an effective registration statement under the Securities Act,
(2) except as provided below in Section 4.5(o), they may be sold pursuant to Rule 144
without limitation thereunder on volume or manner of sale, (3) they shall have ceased to be
outstanding or (4) they have been sold in a private transaction in which the transferor’s
rights under this Agreement are not assigned to the transferee of the securities. No
Registrable Securities may be registered under more than one registration statement at any
one time.

     (v) “Registration Expenses” mean all expenses incurred by the Company in effecting any
registration pursuant to this Agreement (whether or not any registration or prospectus
becomes effective or final) or otherwise complying with its obligations under this Section
4.5, including all registration, filing and listing fees, printing expenses, fees and
disbursements of counsel for the Company, blue sky fees and expenses, expenses incurred in
connection with any “road show”, the reasonable fees and disbursements of Holders’ Counsel,
and expenses of the Company’s independent accountants in connection with any regular or
special reviews or audits incident to or required by any such registration, but shall not
include Selling Expenses.

     (vi) “Rule 144”, “Rule 144A”, “Rule 159A”, “Rule 405” and “Rule 415” mean, in each
case, such rule promulgated under the Securities Act (or any successor provision), as the
same shall be amended from time to time.

     (vii) “Selling Expenses” mean all discounts, selling commissions and stock transfer
taxes applicable to the sale of Registrable Securities and fees and disbursements of counsel
for any Holder (other than the fees and disbursements of Holders’ Counsel included in
Registration Expenses).

     (l) At any time, any holder of Securities (including any Holder) may elect to forfeit its
rights set forth in this Section 4.5 from that date forward; provided, that a Holder forfeiting
such rights shall nonetheless be entitled to participate under Section 4.5(a)(iv) — (vi) in any

-28-

 

Pending Underwritten Offering to the same extent that such Holder would have been entitled to
if the holder had not withdrawn; and provided, further, that no such forfeiture shall terminate a
Holder’s rights or obligations under Section 4.5(f) with respect to any prior registration or
Pending Underwritten Offering. “Pending Underwritten Offering” means, with respect to any Holder
forfeiting its rights pursuant to this Section 4.5(l), any underwritten offering of Registrable
Securities in which such Holder has advised the Company of its intent to register its Registrable
Securities either pursuant to Section 4.5(a)(ii) or 4.5(a)(iv) prior to the date of such Holder’s
forfeiture. 

     (m) Specific Performance. The parties hereto acknowledge that there would be no
adequate remedy at law if the Company fails to perform any of its obligations under this Section
4.5 and that the Investor and the Holders from time to time may be irreparably harmed by any such
failure, and accordingly agree that the Investor and such Holders, in addition to any other remedy
to which they may be entitled at law or in equity, to the fullest extent permitted and enforceable
under applicable law shall be entitled to compel specific performance of the obligations of the
Company under this Section 4.5 in accordance with the terms and conditions of this Section 4.5.

     (n) No Inconsistent Agreements. The Company shall not, on or after the Signing Date,
enter into any agreement with respect to its securities that may impair the rights granted to the
Investor and the Holders under this Section 4.5 or that otherwise conflicts with the provisions
hereof in any manner that may impair the rights granted to the Investor and the Holders under this
Section 4.5. In the event the Company has, prior to the Signing Date, entered into any agreement
with respect to its securities that is inconsistent with the rights granted to the Investor and the
Holders under this Section 4.5 (including agreements that are inconsistent with the order of
priority contemplated by Section 4.5(a)(vi)) or that may otherwise conflict with the provisions
hereof, the Company shall use its reasonable best efforts to amend such agreements to ensure they
are consistent with the provisions of this Section 4.5.

     (o) Certain Offerings by the Investor. In the case of any securities held by the
Investor that cease to be Registrable Securities solely by reason of clause (2) in the definition
of “Registrable Securities,” the provisions of Sections 4.5(a)(ii), clauses (iv), (ix) and
(x)-(xii) of Section 4.5(c), Section 4.5(g) and Section 4.5(i) shall continue to apply until such
securities otherwise cease to be Registrable Securities. In any such case, an “underwritten”
offering or other disposition shall include any distribution of such securities on behalf of the
Investor by one or more broker-dealers, an “underwriting agreement” shall include any purchase
agreement entered into by such broker-dealers, and any “registration statement” or “prospectus”
shall include any offering document approved by the Company and used in connection with such
distribution.

     (p) Registered Sales of the Warrant. The Holders agree to sell the Warrant or any
portion thereof under the Shelf Registration Statement only beginning 30 days after notifying the
Company of any such sale, during which 30-day period the Investor and all Holders of the Warrant
shall take reasonable steps to agree to revisions to the Warrant to permit a public distribution of
the Warrant, including entering into a warrant agreement and appointing a warrant agent.

-29-

 

     4.6 Voting of Warrant Shares. Notwithstanding anything in this Agreement to the
contrary, the Investor shall not exercise any voting rights with respect to the Warrant Shares.

     4.7 Depositary Shares. Upon request by the Investor at any time following the Closing Date,
the Company shall promptly enter into a depositary arrangement, pursuant to customary agreements
reasonably satisfactory to the Investor and with a depositary reasonably acceptable to the
Investor, pursuant to which the Preferred Shares may be deposited and depositary shares, each
representing a fraction of a Preferred Share as specified by the Investor, may be issued. From and
after the execution of any such depositary arrangement, and the deposit of any Preferred Shares
pursuant thereto, the depositary shares issued pursuant thereto shall be deemed “Preferred Shares”
and, as applicable, “Registrable Securities” for purposes of this Agreement. 

     4.8 Restriction on Dividends and Repurchases.

     (a) Prior to the earlier of (x) the third anniversary of the Closing Date and (y) the date on
which the Preferred Shares have been redeemed in whole or the Investor has transferred all of the
Preferred Shares to third parties which are not Affiliates of the Investor, neither the Company nor
any Company Subsidiary shall, without the consent of the Investor:

     (i) declare or pay any dividend or make any distribution on the Common Stock (other
than (A) regular quarterly cash dividends of not more than the amount of the last quarterly
cash dividend per share declared or, if lower, publicly announced an intention to declare,
on the Common Stock prior to October 14, 2008, as adjusted for any stock split, stock
dividend, reverse stock split, reclassification or similar transaction, (B) dividends
payable solely in shares of Common Stock and (C) dividends or distributions of rights or
Junior Stock in connection with a stockholders’ rights plan); or

     (ii) redeem, purchase or acquire any shares of Common Stock or other capital stock or
other equity securities of any kind of the Company, or any trust preferred securities issued
by the Company or any Affiliate of the Company, other than (A) redemptions, purchases or
other acquisitions of the Preferred Shares, (B) redemptions, purchases or other acquisitions
of shares of Common Stock or other Junior Stock, in each case in this clause (B) in
connection with the administration of any employee benefit plan in the ordinary course of
business (including purchases to offset the Share Dilution Amount (as defined below)
pursuant to a publicly announced repurchase plan) and consistent with past practice;
provided that any purchases to offset the Share Dilution Amount shall in no event exceed the
Share Dilution Amount, (C) purchases or other acquisitions by a broker-dealer subsidiary of
the Company solely for the purpose of market-making, stabilization or customer facilitation
transactions in Junior Stock or Parity Stock in the ordinary course of its business, (D)
purchases by a broker-dealer subsidiary of the Company of capital stock of the Company for
resale pursuant to an offering by the Company of such capital stock underwritten by such
broker-dealer subsidiary, (E) any redemption or repurchase of rights pursuant to any
stockholders’ rights plan, (F) the acquisition by the Company or any of the Company
Subsidiaries of record ownership in Junior Stock or Parity Stock for the beneficial
ownership of any other persons (other than the Company or any other Company Subsidiary),
including as

-30-

 

trustees or custodians, and (G) the exchange or conversion of Junior Stock for or into
other Junior Stock or of Parity Stock or trust preferred securities for or into other Parity
Stock (with the same or lesser aggregate liquidation amount) or Junior Stock, in each case
set forth in this clause (G), solely to the extent required pursuant to binding contractual
agreements entered into prior to the Signing Date or any subsequent agreement for the
accelerated exercise, settlement or exchange thereof for Common Stock (clauses (C) and (F),
collectively, the “Permitted Repurchases”). “Share Dilution Amount” means the increase in
the number of diluted shares outstanding (determined in accordance with GAAP, and as
measured from the date of the Company’s most recently filed Company Financial Statements
prior to the Closing Date) resulting from the grant, vesting or exercise of equity-based
compensation to employees and equitably adjusted for any stock split, stock dividend,
reverse stock split, reclassification or similar transaction.

     (b) Until such time as the Investor ceases to own any Preferred Shares, the Company shall not
repurchase any Preferred Shares from any holder thereof, whether by means of open market purchase,
negotiated transaction, or otherwise, other than Permitted Repurchases, unless it offers to
repurchase a ratable portion of the Preferred Shares then held by the Investor on the same terms
and conditions.

     (c) “Junior Stock” means Common Stock and any other class or series of stock of the Company
the terms of which expressly provide that it ranks junior to the Preferred Shares as to dividend
rights and/or as to rights on liquidation, dissolution or winding up of the Company. “Parity Stock”
means any class or series of stock of the Company the terms of which do not expressly provide that
such class or series will rank senior or junior to the Preferred Shares as to dividend rights
and/or as to rights on liquidation, dissolution or winding up of the Company (in each case without
regard to whether dividends accrue cumulatively or non-cumulatively).

     4.9 Repurchase of Investor Securities.

     (a) Following the redemption in whole of the Preferred Shares held by the Investor or the
Transfer by the Investor of all of the Preferred Shares to one or more third parties not affiliated
with the Investor, the Company may repurchase, in whole or in part, at any time any other equity
securities of the Company purchased by the Investor pursuant to this Agreement or the Warrant and
then held by the Investor, upon notice given as provided in clause (b) below, at the Fair Market
Value of the equity security.

     (b) Notice of every repurchase of equity securities of the Company held by the Investor shall
be given at the address and in the manner set forth for such party in Section 5.6. Each notice of
repurchase given to the Investor shall state: (i) the number and type of securities to be
repurchased, (ii) the Board of Director’s determination of Fair Market Value of such securities and
(iii) the place or places where certificates representing such securities are to be surrendered for
payment of the repurchase price. The repurchase of the securities specified in the notice shall
occur as soon as practicable following the determination of the Fair Market Value of the
securities.

     (c) As used in this Section 4.9, the following terms shall have the following respective
meanings:

-31-

 

     (i) “Appraisal Procedure” means a procedure whereby two independent appraisers, one
chosen by the Company and one by the Investor, shall mutually agree upon the Fair Market
Value. Each party shall deliver a notice to the other appointing its appraiser within 10
days after the Appraisal Procedure is invoked. If within 30 days after appointment of the
two appraisers they are unable to agree upon the Fair Market Value, a third independent
appraiser shall be chosen within 10 days thereafter by the mutual consent of such first two
appraisers. The decision of the third appraiser so appointed and chosen shall be given
within 30 days after the selection of such third appraiser. If three appraisers shall be
appointed and the determination of one appraiser is disparate from the middle determination
by more than twice the amount by which the other determination is disparate from the middle
determination, then the determination of such appraiser shall be excluded, the remaining two
determinations shall be averaged and such average shall be binding and conclusive upon the
Company and the Investor; otherwise, the average of all three determinations shall be
binding upon the Company and the Investor. The costs of conducting any Appraisal Procedure
shall be borne by the Company.

     (ii) “Fair Market Value” means, with respect to any security, the fair market value of
such security as determined by the Board of Directors, acting in good faith in reliance on
an opinion of a nationally recognized independent investment banking firm retained by the
Company for this purpose and certified in a resolution to the Investor. If the Investor
does not agree with the Board of Director’s determination, it may object in writing within
10 days of receipt of the Board of Director’s determination. In the event of such an
objection, an authorized representative of the Investor and the chief executive officer of
the Company shall promptly meet to resolve the objection and to agree upon the Fair Market
Value. If the chief executive officer and the authorized representative are unable to agree
on the Fair Market Value during the 10-day period following the delivery of the Investor’s
objection, the Appraisal Procedure may be invoked by either party to determine the Fair
Market Value by delivery of a written notification thereof not later than the
30th day after delivery of the Investor’s objection.

     4.10 Executive Compensation. Until such time as the Investor ceases to own any debt
or equity securities of the Company acquired pursuant to this Agreement or the Warrant, the Company
shall take all necessary action to ensure that its Benefit Plans with respect to its Senior
Executive Officers comply in all respects with Section 111(b) of the EESA as implemented by any
guidance or regulation thereunder that has been issued and is in effect as of the Closing Date, and
shall not adopt any new Benefit Plan with respect to its Senior Executive Officers that does not
comply therewith. “Senior Executive Officers” means the Company’s “senior executive officers” as
defined in subsection 111(b)(3) of the EESA and regulations issued thereunder, including the rules
set forth in 31 C.F.R. Part 30.

     4.11 Bank and Thrift Holding Company Status. If the Company is a Bank Holding Company or a
Savings and Loan Holding Company on the Signing Date, then the Company shall maintain its status as
a Bank Holding Company or Savings and Loan Holding Company, as the case may be, for as long as the
Investor owns any Purchased Securities or Warrant Shares. The Company shall redeem all Purchased
Securities and Warrant Shares held by the Investor prior to terminating its status as a Bank
Holding Company or Savings and Loan Holding Company, as applicable. “Bank Holding Company” means a
company registered as such with the Board of

-32-

 

Governors of the Federal Reserve System (the “Federal Reserve”) pursuant to 12 U.S.C. §1842 and the
regulations of the Federal Reserve promulgated thereunder. “Savings and Loan Holding Company”
means a company registered as such with the Office of Thrift Supervision pursuant to 12 U.S.C.
§1467(a) and the regulations of the Office of Thrift Supervision promulgated thereunder.

     4.12 Predominantly Financial. For as long as the Investor owns any Purchased
Securities or Warrant Shares, the Company, to the extent it is not itself an insured depository
institution, agrees to remain predominantly engaged in financial activities. A company is
predominantly engaged in financial activities if the annual gross revenues derived by the company
and all subsidiaries of the company (excluding revenues derived from subsidiary depository
institutions), on a consolidated basis, from engaging in activities that are financial in nature or
are incidental to a financial activity under subsection (k) of Section 4 of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(k)) represent at least 85 percent of the consolidated annual
gross revenues of the company.

Article V

Miscellaneous

     5.1 Termination. This Agreement may be terminated at any time prior to the Closing:

     (a) by either the Investor or the Company if the Closing shall not have occurred by the
30th calendar day following the Signing Date; provided, however, that in the event the
Closing has not occurred by such 30th calendar day, the parties will consult in good
faith to determine whether to extend the term of this Agreement, it being understood that the
parties shall be required to consult only until the fifth day after such 30th calendar
day and not be under any obligation to extend the term of this Agreement thereafter; provided,
further, that the right to terminate this Agreement under this Section 5.1(a) shall not be
available to any party whose breach of any representation or warranty or failure to perform any
obligation under this Agreement shall have caused or resulted in the failure of the Closing to
occur on or prior to such date; or

     (b) by either the Investor or the Company in the event that any Governmental Entity shall have
issued an order, decree or ruling or taken any other action restraining, enjoining or otherwise
prohibiting the transactions contemplated by this Agreement and such order, decree, ruling or other
action shall have become final and nonappealable; or

     (c) by the mutual written consent of the Investor and the Company.

In the event of termination of this Agreement as provided in this Section 5.1, this Agreement shall
forthwith become void and there shall be no liability on the part of either party hereto except
that nothing herein shall relieve either party from liability for any breach of this Agreement.

     5.2 Survival of Representations and Warranties. All covenants and agreements, other
than those which by their terms apply in whole or in part after the Closing, shall terminate as of
the Closing. The representations and warranties of the Company made herein or in any
certificates delivered in connection with the Closing shall survive the Closing without limitation.

-33-

 

     5.3 Amendment. No amendment of any provision of this Agreement will be effective
unless made in writing and signed by an officer or a duly authorized representative of each party;
provided that the Investor may unilaterally amend any provision of this Agreement to the extent
required to comply with any changes after the Signing Date in applicable federal statutes. No
failure or delay by any party in exercising any right, power or privilege hereunder shall operate
as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further
exercise of any other right, power or privilege. The rights and remedies herein provided shall be
cumulative of any rights or remedies provided by law.

     5.4 Waiver of Conditions. The conditions to each party’s obligation to consummate the
Purchase are for the sole benefit of such party and may be waived by such party in whole or in part
to the extent permitted by applicable law. No waiver will be effective unless it is in a writing
signed by a duly authorized officer of the waiving party that makes express reference to the
provision or provisions subject to such waiver.

     5.5 Governing Law: Submission to Jurisdiction, Etc. This Agreement will be governed by
and construed in accordance with the federal law of the United States if and to the extent such law
is applicable, and otherwise in accordance with the laws of the State of New York applicable to
contracts made and to be performed entirely within such State. Each of the parties hereto agrees
(a) to submit to the exclusive jurisdiction and venue of the United States District Court for the
District of Columbia and the United States Court of Federal Claims for any and all civil actions,
suits or proceedings arising out of or relating to this Agreement or the Warrant or the
transactions contemplated hereby or thereby, and (b) that notice may be served upon (i) the Company
at the address and in the manner set forth for notices to the Company in Section 5.6 and (ii) the
Investor in accordance with federal law. To the extent permitted by applicable law, each of the
parties hereto hereby unconditionally waives trial by jury in any civil legal action or proceeding
relating to this Agreement or the Warrant or the transactions contemplated hereby or thereby.

     5.6 Notices. Any notice, request, instruction or other document to be given hereunder
by any party to the other will be in writing and will be deemed to have been duly given (a) on the
date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on
the second business day following the date of dispatch if delivered by a recognized next day
courier service. All notices to the Company shall be delivered as set forth in Schedule A,
or pursuant to such other instruction as may be designated in writing by the Company to the
Investor. All notices to the Investor shall be delivered as set forth below, or pursuant to such
other instructions as may be designated in writing by the Investor to the Company.

If to the Investor:

-34-

 

United States Department of the Treasury

1500 Pennsylvania Avenue, NW, Room 2312

Washington, D.C. 20220

Attention: Assistant General Counsel (Banking and Finance)

Facsimile: (202) 622-1974

     5.7 Definitions

     (a) When a reference is made in this Agreement to a subsidiary of a person, the term
“subsidiary” means any corporation, partnership, joint venture, limited liability company or other
entity (x) of which such person or a subsidiary of such person is a general partner or (y) of which
a majority of the voting securities or other voting interests, or a majority of the securities or
other interests of which having by their terms ordinary voting power to elect a majority of the
board of directors or persons performing similar functions with respect to such entity, is directly
or indirectly owned by such person and/or one or more subsidiaries thereof.

     (b) The term “Affiliate” means, with respect to any person, any person directly or indirectly
controlling, controlled by or under common control with, such other person. For purposes of this
definition, “control” (including, with correlative meanings, the terms “controlled by” and “under
common control with”) when used with respect to any person, means the possession, directly or
indirectly, of the power to cause the direction of management and/or policies of such person,
whether through the ownership of voting securities by contract or otherwise.

     (c) The terms “knowledge of the Company” or “Company’s knowledge” mean the actual knowledge
after reasonable and due inquiry of the “officers” (as such term is defined in Rule 3b-2 under the
Exchange Act, but excluding any Vice President or Secretary) of the Company.

     5.8 Assignment. Neither this Agreement nor any right, remedy, obligation nor liability
arising hereunder or by reason hereof shall be assignable by any party hereto without the prior
written consent of the other party, and any attempt to assign any right, remedy, obligation or
liability hereunder without such consent shall be void, except (a) an assignment, in the case of a
Business Combination where such party is not the surviving entity, or a sale of substantially all
of its assets, to the entity which is the survivor of such Business Combination or the purchaser in
such sale and (b) as provided in Section 4.5.

     5.9 Severability. If any provision of this Agreement or the Warrant, or the
application thereof to any person or circumstance, is determined by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the
application of such provision to persons or circumstances other than those as to which it has been
held invalid or unenforceable, will remain in full force and effect and shall in no way be
affected, impaired or invalidated thereby, so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner materially adverse to any party.
Upon such determination, the parties shall negotiate in good faith in an effort to agree upon a
suitable and equitable substitute provision to effect the original intent of the parties.

     5.10 No Third Party Beneficiaries. Nothing contained in this Agreement, expressed or
implied, is intended to confer upon any person or entity other than the Company and the Investor
any benefit, right or remedies, except that the provisions of Section 4.5 shall inure to the
benefit of the persons referred to in that Section.

*  *  *

-35-

 

SCHEDULE
A

ADDITIONAL TERMS AND CONDITIONS

Company Information:

Name of the Company: Texas Capital Bancshares, Inc.

Corporate or other organizational form: Corporation

Jurisdiction of Organization: Delaware

Appropriate Federal Banking Agency: Board of Governors of the Federal Reserve System

Notice Information:

Texas Capital Bancshares, Inc.

2100 McKinney Avenue, Suite 900

Dallas, Texas 75201

Attention: Peter Bartholow, Chief Financial Officer

Facsimile: (214) 932-6642

Terms of the Purchase:

Series of Preferred Stock Purchased: Fixed Rate Cumulative Perpetual Preferred Stock, Series A

Per Share Liquidation Preference of Preferred Stock: $1,000

Number of Shares of Preferred Stock Purchased: 75,000

Dividend Payment Dates on the Preferred Stock: February 15, May 15, August 15 and November 15

Number of Initial Warrant Shares: 758,086

Exercise Price of the Warrant: $14.84

Purchase Price: $75,000,000

Closing:

Location of Closing:

Squire, Sanders & Dempsey L.L.P.

221 E. Fourth Street, Suite 2900

Cincinnati, Ohio 45202

Time of Closing: 10:00 AM EST

Date of Closing: January 16, 2009

 

 

	 	 	 
	Wire Information for Closing:

	 	ABA Number:
	 

	 	Bank:
	 

	 	Account Name:
	 

	 	Account Number:
	 

	 	Beneficiary:exv4w1

Exhibit 4.1

RIGHTS AGREEMENT

Dated as of January 15, 2009

between

EMULEX CORPORATION

and

MELLON INVESTOR SERVICES LLC,

as Rights Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Section 1. Certain Definitions
	 	 	2	 
	 
	Section 2. Appointment of Rights Agent
	 	 	9	 
	 
	Section 3. Issue of Right Certificates
	 	 	9	 
	 
	Section 4. Form of Right Certificates
	 	 	12	 
	 
	Section 5. Countersignature and Registration
	 	 	13	 
	 
	Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates
	 	 	14	 
	 
	Section 7. Exercise of Rights; Purchase Price; Expiration
	 	 	16	 
	 
	Section 8. Cancellation and Destruction of Right Certificates
	 	 	19	 
	 
	Section 9. Availability of Preferred Shares
	 	 	19	 
	 
	Section 10. Preferred Shares Record Date
	 	 	22	 
	 
	Section 11. Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights
	 	 	22	 
	 
	Section 12. Certificate of Adjusted Purchase Price or Number of Shares
	 	 	35	 
	 
	Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power
	 	 	36	 
	 
	Section 14. Fractional Rights and Fractional Shares
	 	 	39	 
	 
	Section 15. Rights of Action
	 	 	41	 
	 
	Section 16. Agreement of Right Holders
	 	 	42	 
	 
	Section 17. Right Certificate Holder Not Deemed a Stockholder
	 	 	43	 
	 
	Section 18. Concerning the Rights Agent
	 	 	44	 
	 
	Section 19. Merger or Consolidation or Change of Name of Rights Agent
	 	 	45	 
	 
	Section 20. Rights and Duties of Rights Agent
	 	 	46	 
	 
	Section 21. Change of Rights Agent
	 	 	50	 
	 
	Section 22. Issuance of New Right Certificates
	 	 	52	 
	 
	Section 23. Redemption
	 	 	52	 
	 
	Section 24. Exchange
	 	 	54	 
	 
	Section 25. Notice of Certain Events
	 	 	56	 
	 
	Section 26. Notices
	 	 	57	 
	 
	Section 27. Supplements and Amendments
	 	 	58	 
	 
	Section 28. Successors
	 	 	60	 
	 
	Section 29. Determinations and Actions by the Board of Directors, etc
	 	 	60	 
	 
	Section 30. Benefits of this Agreement
	 	 	61	 

i

 

	 	 	 	 	 
	Section 31. Severability
	 	 	61	 
	 
	Section 32. Governing Law
	 	 	61	 
	 
	Section 33. Counterparts
	 	 	62	 
	 
	Section 34. Headings
	 	 	62	 
	 
	 	 	 	 
	Exhibit A —  Form of Certificate of Designation
	 	 	 	 
	 
	 	 	 	 
	Exhibit B —  Form of Right Certificate
	 	 	 	 
	 
	 	 	 	 
	Exhibit C —  Summary of Rights to Purchase Preferred Shares
	 	 	 	 

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RIGHTS AGREEMENT

          Agreement, dated as of January 15, 2009, between Emulex Corporation, a Delaware corporation
(the “Company”), and Mellon Investor Services LLC, a New Jersey limited liability company, as
Rights Agent (the “Rights Agent”).

          A. The Rights Agreement, dated January 19, 1989, as amended, between the Company and the
Rights Agent (as successor to First Interstate Bank, Ltd.) expires on January 19, 2009, and the
Board of Directors of the Company has determined that it is in the best interests of the Company
and its stockholders to replace such agreement with this Agreement.

          B. The Board of Directors of the Company has authorized and declared a dividend of one
preferred share purchase right (a “Right”) for each Common Share (as hereinafter defined) of the
Company outstanding as of the Close of Business (as hereafter defined) on January 24, 2009 (the
“Record Date”), and has further authorized and directed the issuance of one Right (subject to
adjustment as set forth herein) with respect to each Common Share (as hereafter defined) that shall
be issued by the Company that shall become outstanding between the Record Date and the earliest of
the Distribution Date, the Redemption Date, the Exchange Date and the Final Expiration Date (each
as defined herein), and each Common Share that shall be issued by the Company at any time on or
after the Distribution Date (as hereafter defined) and prior to the earlier of the Redemption Date,
the Exchange Date or the Final Expiration Date pursuant to the exercise of conversion rights,
exchange rights, rights (other than Rights), warrants or options that shall have been granted or
sold prior to the Distribution Date, each Right initially representing the right to purchase one
one-thousandth of a Preferred Share (as hereinafter defined), upon the terms and subject to the
conditions herein set forth.

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

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

          (a) “Acquiring Person” shall mean any Person who or which, together with all Affiliates and
Associates of such Person, shall be the Beneficial Owner of 15% or more of the Common Shares then
outstanding, but shall not include an Exempt Person. Notwithstanding the foregoing, no Person
shall become an “Acquiring Person” solely as the result of an acquisition of Common Shares by the
Company or any Subsidiary of the Company which, by reducing the number of Common Shares
outstanding, increases the proportionate number of Common Shares Beneficially Owned by such Person
to 15% or more of the Common Shares then outstanding; provided, however, that if a Person shall
become the Beneficial Owner of 15% or more of the Common Shares then outstanding by reason of
acquisition of Common Shares by the Company or any Subsidiary of the Company and shall, after such
acquisition by the Company or any Subsidiary of the Company, become the Beneficial Owner of any
additional Common Shares, then such Person shall be deemed to be an “Acquiring Person”.

     Notwithstanding the foregoing:

          (i) if the Board of Directors of the Company determines in good faith that a Person who
would otherwise be an “Acquiring Person”, as defined pursuant to the foregoing provisions of
this paragraph (a), has become an “Acquiring Person” inadvertently (including without
limitation if (A) such Person was unaware that it Beneficially Owned a percentage of Common
Shares 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 Shares but had no actual
knowledge of the consequences of such Beneficial Ownership under this Agreement), and such
Person

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divests as promptly as practicable a sufficient number of Common Shares so that such
Person would no longer be an “Acquiring Person,” as defined pursuant to the foregoing
provisions of this paragraph (a), then such Person shall not be deemed to be or have ever
been an “Acquiring Person” for any purposes of this Agreement; and

          (ii) if any Person, who or which together with all Affiliates and Associates of such
Person, becomes the Beneficial Owner of 15% or more of the outstanding Common Shares because
of the acquisition of Common Shares directly from the Company, such Person shall not be an
“Acquiring Person” as defined above, unless and until such Person, together with all
Affiliates and Associates of such Person, shall thereafter, subject to the foregoing
clause (i), becomes the Beneficial Owner of any additional Common Shares (other than
pursuant to a dividend or distribution paid or made by the Company on the outstanding Common
Shares in Common Shares or pursuant to a split or subdivision of the outstanding Common
Shares) and after such acquisition such Person Beneficially Owns 15% or more of the
outstanding Common Shares, at which time such Person shall be an “Acquiring Person” for
purposes of this Agreement.

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

               (c) A Person shall be the “Beneficial Owner” of and shall “Beneficially Own” and shall have
“Beneficial Ownership” of any securities:

     (i) which such Person or any of such Person’s Affiliates or Associates
beneficially owns, directly or indirectly (as determined pursuant to Rule 13d-3
under the Exchange Act as in effect on the date hereof);

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     (ii) which such Person or any of such Person’s Affiliates or Associates has,
directly or indirectly (A) the right to acquire or direct the acquisition of
(whether such right is 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,
or upon the exercise of conversion rights, exchange rights, rights (other than the
Rights), warrants or options, or otherwise; provided, however, that a Person shall
not be deemed the Beneficial Owner of, or to Beneficially Own, 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; or (B) the right to vote or direct the voting of, whether
pursuant to any agreement, arrangement or understanding or otherwise, whether or not
in writing (provided, however, that a Person shall not be deemed the Beneficial
Owner of, or to Beneficially Own, any security under this clause (B) if the
agreement, arrangement or understanding to vote such security (1) arises solely from
a revocable proxy or consent given to such Person in response to a public proxy or
consent solicitation made pursuant to, and in accordance with, the Exchange Act and
the applicable rules and regulations promulgated thereunder and (2) is not also then
reportable on Schedule 13D under the Exchange Act (or any comparable or successor
report)); or

     (iii) which are Beneficially Owned, directly or indirectly, by any other Person
with which such Person or any such Person’s Affiliates or Associates has any
agreement, arrangement or understanding, whether or not in writing, for the

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purpose of acquiring, holding, voting (except to the extent contemplated by the
parenthetical in Section 1(c)(ii)(B)) or disposing of any securities of the Company.

          Notwithstanding anything to the contrary in this Section l(c), a Person engaged in business as
an underwriter of securities shall not be deemed to be the Beneficial Owner of, or to Beneficially
Own, any securities acquired through such Person’s participation in good faith in a firm commitment
underwriting until the expiration of 40 days after the date of such acquisition.

               Notwithstanding anything in this Agreement to the contrary, the phrase “then outstanding,”
when used with reference to a Person who is Beneficial Owner of or who Beneficially Owns securities
of the Company, shall mean the number of such securities then issued and outstanding together with
the number of such securities not then actually issued and outstanding which such Person would be
deemed to Beneficially Own hereunder.

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

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

          (f) “Common Shares” shall mean (i) the shares of common stock, par value $0.10 per share, of
the Company, or (ii) if such common stock shall have been converted into or exchanged for other
securities, the then authorized Equity Shares of the Company. “Equity Shares” when used with
reference to any Person (including the Company) shall mean the capital stock (or equity interest)
with the greatest voting power in an election of directors or similar

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governing body of such other Person, or if no such governing body, the equity securities
having power to control or direct the management of such other Person, or, if such other Person is
a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned
Person and which has issued and outstanding Equity Shares.

          (g) “Distribution Date” shall have the meaning set forth in Section 3(a) hereof.

          (h) “Equivalent Preferred Shares” shall have the meaning set forth in Section 11(b) hereof.

          (i) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

          (j) “Exchange Date” shall have the meaning set forth in Section 7(a) hereof.

          (k) “Exchange Ratio” shall have the meaning set forth in Section 24(a) hereof.

          (l) “Exempt Person” shall mean (i) the Company, (ii) any Subsidiary of the Company, or
(iii) any employee benefit plan of the Company or any Subsidiary of the Company, or any Person
holding Common Shares for or pursuant to the terms of any such plan or for the purpose of funding
any such plan or funding other employee benefits for any employee of the Company or Subsidiary of
the Company, in each case including, without limitation, the officers and board of directors
thereof acting in their fiduciary capacity.

          (m) “Final Expiration Date” means January 24, 2012.

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

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          (o) “Preferred Shares” shall mean shares of Series A Participating Preferred Stock, $0.01 par
value per share, of the Company having the rights and preferences set forth in the Form of
Certificate of Designation, Preferences and Rights of Series A Participating Preferred Stock
attached to this Agreement as Exhibit A.

          (p) “Purchase Price” shall have the meaning set forth in Section 7(b) hereof.

          (q) “Redemption Date” shall have the meaning set forth in Section 7(a) hereof.

          (r) “Redemption Price” shall have the meaning set forth in Section 23(a) hereof.

          (s) “Right Certificate” shall have the meaning set forth in Section 3(a) hereof.

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

          (u) “Shares Acquisition Date” shall mean the first date of public announcement (which, for
purposes of this definition shall include, without limitation, a report filed pursuant to Section
13(d) of the Exchange Act or any successor thereto) by the Company or an Acquiring Person that an
Acquiring Person has become such or that discloses information that reveals the existence of an
Acquiring Person or such earlier date that a majority of the directors of the Company shall have
become aware of the existence of an Acquiring Person.

          (v) “Subsidiary” of any Person shall mean any other Person of which a majority of the voting
power of the voting equity securities or equity interest is owned, directly or indirectly, by such
first Person.

          (w) “Successor Person” shall mean (i) in the case of any transaction described in clause
(i) or (ii) of the first sentence of Section 13(a) hereof: (A) the Person that is the issuer

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of the securities into which the shares of Common Shares are converted in such merger or
consolidation, or, if there is more than one such issuer, the issuer whose shares have the greatest
aggregate market value of shares outstanding, or (B) if no securities are so issued, (x) the Person
that is the other party to the merger, if such Person survives such merger, or, if there is more
than one such Person, the Person whose shares of common stock have the greatest aggregate market
value of shares outstanding or (y) if the Person that is the other party to the merger does not
survive the merger, the Person that does survive the merger (including the Company if it survives)
or (z) the Person resulting from the consolidation; and (ii) in the case of any transaction
described in clause (iii) of the first sentence in Section 13(a) hereof, the Person that is the
party receiving the greatest portion of the assets or earning power transferred pursuant to such
transaction or transactions, or, if each Person that is a party to such transaction or transactions
receives the same portion of the assets or earning power so transferred, or if the Person receiving
the greatest portion of the assets or earning power cannot be determined, whichever of such Persons
as 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 clauses (i) or (ii), if the
common stock of such Person is not at such time or has not been continuously over the preceding
12-month period registered under Section 12 of the Exchange Act, then (1) if such Person is a
direct or indirect Subsidiary of another Person whose common stock is and has been so registered,
the term “Successor Person” shall refer to such other Person, or (2) if such Person is a
Subsidiary, directly or indirectly, of more than one Person, the common stock of more than one of
whose common stock is and has been so registered, the term “Successor Person” shall refer to
whichever of such Persons is the issuer of common stock having the greatest aggregate market value
of shares outstanding and so registered, or (3) if such Person is owned, directly or

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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) of this proviso 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 Successor Person in each
such case shall bear the obligations set forth in Section 13 hereof.

          (x) “Summary of Rights” shall have the meaning set forth in Section 3(b) hereof.

          (y) “Trading Day” shall have the meaning set forth in Section 11(d)(i) hereof.

          Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent
to act as rights agent for the Company in accordance with the terms and conditions hereof, and the
Rights Agent hereby accepts such appointment. The Company may from time to time appoint such
co-Rights Agents as it may deem necessary or desirable. 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. Issue of Right Certificates.

          (a) Until the earlier of (i) the Close of Business on the tenth Business Day after the Shares
Acquisition Date (or if the Shares Acquisition Date is prior to the Record Date, the Record Date),
(ii) the Close of Business on the tenth Business Day (or such later date as may be determined by
action of the Company’s Board of Directors) after the date of the commencement by any Person (other
than an Exempt Person) of, or after the first public announcement of the intention of any Person
(other than an Exempt Person) to commence a tender or exchange offer the consummation of which
would result in any Person becoming an

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Acquiring Person, or (iii)  the occurrence of a transaction described in the first sentence of
Section 13(a) (including in each case set forth in clauses (i), (ii) and (iii), any such date which
is after the date of this Agreement and prior to the issuance of the Rights; the earlier of such
dates being herein referred to as the “Distribution Date”), (w) the Rights shall not be
exercisable, (x) the Rights will solely be evidenced (subject to Section 3(b) hereof) by the
certificates for Common Shares registered in the names of the holders thereof (which certificates
shall also be deemed to be Right Certificates) and not by separate Right Certificates, or if such
Common Shares are uncertificated, the Rights will be solely evidenced by the uncertificated Common
Shares, (y) the registered holders of Common Shares shall also be the registered holders of the
Rights issued with respect thereto, and (z) the Rights will be transferable by, and only in
connection with, the transfer of Common Shares. As soon as practicable after the Distribution
Date, the Company will prepare and execute, the Rights Agent will countersign, and the Company will
send or cause to be sent (and the Rights Agent will, if requested and provided with all necessary
information, send) by first-class, insured, postage-prepaid mail, to each record holder of Common
Shares as of the Close of Business on the Distribution Date (other than any Acquiring Person or any
known 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 Shares, a Right
Certificate, in substantially the form of Exhibit B hereto (a “Right Certificate”), evidencing one
Right (subject to adjustment as provided herein) for each Common Share so held, or if the Common
Shares are uncertificated, the Company may issue evidence of uncertificated Rights, unless
otherwise requested by the holder thereof. 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 Shares.

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          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 such
occurrence 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.

          (b) 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 Shares, in substantially the form
of Exhibit C hereto (the “Summary of Rights”), by first-class, postage-prepaid mail, to each record
holder of Common Shares as of the Close of Business on the Record Date, at the address of such
holder shown on the records of the Company or the transfer agent or registrar for the Common
Shares. Until the Distribution Date (or the earlier of the Redemption Date, the Exchange Date or
the Final Expiration Date), the surrender for transfer of any certificate for Common Shares, with
or without a copy of the Summary of Rights attached thereto, or upon the receipt of proper transfer
instructions from the registered owner of uncertificated shares shall also constitute the transfer
of the Rights associated with the Common Shares represented thereby.

          (c) The Company shall cause certificates for Common Shares which become outstanding
(including, without limitation, reacquired Common Shares referred to in the second to last sentence
of this subsection (c)) after the Record Date but prior to the earlier to occur of the Distribution
Date, the Redemption Date, the Exchange Date and the Final Expiration Date, to bear the following
legend:

This certificate also evidences and entitles the holder hereof to
certain rights as set forth in a Rights Agreement between Emulex
Corporation and Mellon Investor Services LLC, as Rights Agent,
dated as of January 15, 2009, as the same may be amended from

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time to time (the “Rights Agreement”), the terms of which are hereby
incorporated herein by reference and a copy of which is on file at
the principal executive offices of Emulex Corporation. Under
certain circumstances, as set forth in the Rights Agreement, such
Rights will be evidenced by separate certificates and will no longer
be evidenced by this certificate. Emulex Corporation will mail to
the holder of this certificate a copy of the Rights Agreement
without charge after receipt of a written request therefor. Under
certain circumstances, as set forth in the Rights Agreement, Rights
which are owned by or have been owned by any Person who becomes an
Acquiring Person or any Affiliate or Associate thereof (as defined
in the Rights Agreement), or the transferees thereof, may become
null and void.

With respect to such certificates containing the foregoing legend, until the earlier to occur of
the Distribution Date, the Redemption Date, the Exchange Date and the Final Expiration Date, the
Rights associated with the Common Shares represented by such certificates shall be evidenced by
such certificates alone, and the surrender for transfer of any such certificate shall also
constitute the transfer of the Rights associated with the Common Shares represented thereby.
Notwithstanding this subsection (c), the omission of a legend shall not affect the enforceability
of any part of this Agreement or the rights of any holder of the Rights. In the event that the
Company purchases or acquires any Common Shares after the Record Date but prior to the Distribution
Date, any Rights associated with such Common Shares shall be deemed cancelled and retired so that
the Company shall not be entitled to exercise any Rights associated with the Common Shares which
are no longer outstanding. Nothing in this Agreement will require the Company to issue
certificated Common Shares or Rights, unless requested by the holder thereof.

          Section 4. Form of Right Certificates. The Right Certificates (and the forms of
election to purchase Preferred Shares and of assignment to be printed on the reverse thereof) shall be substantially in the
form of Exhibit B hereto and may have such marks of identification or designation and such legends,
summaries or endorsements printed thereon as the Company

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may deem appropriate (but which do not affect the rights, duties or responsibilities of the Rights Agent) and as are not inconsistent with
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
inter-dealer quotation system on which the Rights may from time to time be listed or traded, or to
conform to usage. Subject to Section 11(a)(ii) and Section 22 hereof, the Right Certificates shall
entitle the holders thereof to purchase such number of one one-thousandths of a Preferred Share (or
other securities or assets issuable upon exercise of the Rights as set forth herein) as shall be
set forth therein at the Purchase Price per one one-thousandth of a Preferred Share, but the number
of such one one-thousandths of a Preferred Share (or other securities or assets issuable upon
exercise of the Rights) 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 its Chief Executive Officer, President, any of its Executive
Vice Presidents or Vice Presidents, or its Treasurer, either manually or by facsimile signature,
shall have affixed thereto the Company’s seal or a facsimile thereof, and shall be attested by the
Secretary or an Assistant Secretary of the Company, either manually or by facsimile signature. The
Right Certificates shall be countersigned by the Rights Agent, either manually or by facsimile
signature, and shall not be valid for any purpose unless 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

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officer of the Company; and any Right Certificate may be signed on behalf of the Company by any
person who, at the actual date of the execution of such Right Certificate, shall be a proper
officer of the Company to sign such Right Certificate, although at the date of the execution of
this Agreement any such person was not such an officer.

          Following the Distribution Date, and receipt by the Rights Agent of notice to that effect and
all other relevant information referred to in Section 3(a) hereof, the Rights Agent will keep or
cause to be kept, at its office designated for such purpose, books for registration and transfer of
the Rights issued hereunder. Such books shall show the names and addresses of the respective
holders of the Rights, the number of Rights owned by such holder, the date of transfer thereto,
where such Rights are represented by Right Certificates, the number of Rights evidenced on its face
by each Right Certificate and the date and certificate number of each of the Right Certificates.

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

          (a) Subject to Section 14 hereof, at any time after the Close of Business on the Distribution
Date, and prior to the Close of Business on the earlier to occur of the Redemption Date or the
Final Expiration Date, any Right Certificate or Right Certificates (other than Right
Certificates representing Rights that have become null and void pursuant to Section 11(a)(ii)
hereof or that have been exchanged pursuant to Section 24 hereof) may be transferred, split up,
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 Preferred Share (or other
securities or assets issuable upon exercise of the Rights as set forth herein) as the Right
Certificate or Right Certificates surrendered then entitled such holder to purchase. Any

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registered holder desiring so to transfer, split up, combine or exchange any Right Certificate or
Right Certificates shall make such requests in writing delivered to the Rights Agent, and shall
surrender the Right Certificate or Right Certificates to be transferred, split up, 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, or uncertificated Rights, until the registered
holder thereof shall have (i) completed and signed the certificate contained in the form of
assignment set forth on the reverse side of each such Right Certificate, or, in the case of
uncertificated Rights, a form of assignment provided by the Company, (ii) provided such additional
evidence of the identity of the Beneficial Owner (or former Beneficial Owner) thereof and of the
Rights evidenced thereby and the Affiliates and Associates of such Beneficial Owner (or former
Beneficial Owner) 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 Rights as required by Section 9(e) hereof. Thereupon, the Rights
Agent shall register the Rights in such name or names as may be designated by the surrendering
registered holder, and if the Rights are certificated, the Rights
Agent shall countersign and deliver to the Person entitled thereto a Right Certificate or
Right Certificates, as so requested. The Rights Agent shall promptly forward any such sum
collected by it to the Company or to such Persons as the Company shall specify by written notice.
Neither the Rights Agent nor the Company shall have any duty or obligation under this Section 6
unless and until it is satisfied that all such taxes and/or governmental charges have been paid.

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          (b) Subject to the provisions of Section 11(a)(ii) hereof with respect to Rights of an
Acquiring Person and such Acquiring Persons Affiliates and Associates, upon receipt by the Company
and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or
mutilation of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or
security 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, if received by the Company after the Close
of Business on the Distribution Date, and prior to the Close of Business on the earlier to occur of
the Redemption Date, the Exchange Date or the Final Expiration Date, the Company will make and
deliver a new Right Certificate of like tenor to the Rights Agent for countersignature and delivery
to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated,
provided that the Company may issue evidence of uncertificated Rights, unless otherwise requested
by the holder thereof.

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

          (a) Subject to Section 11(a)(ii) hereto, the registered holder of any Rights may exercise such
Rights (except as otherwise provided in this Agreement) in whole or in part at any time after the
Distribution Date upon surrender of the Right Certificate, with the form of election
to purchase on the reverse side thereof duly and properly executed, or in the case of
uncertificated Rights, a form of election provided by the Company, to the Rights Agent at the
office of the Rights Agent designated for such purpose, together with payment of the Purchase Price
for each Preferred Share (or fraction thereof) as to which the Rights are exercised, and an amount
equal to any tax or charge required to be paid under Section 9(e) hereof, by certified check,
cashier’s check, bank draft or money order payable to the order of the Company, at or

16

 

prior to the earlier to occur of (i) the Close of Business on the Final Expiration Date, (ii) the time at which
the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”), or (iii) the time
at which such Rights are exchanged as provided in Section 24 hereof (the “Exchange Date”). Except
for those provisions herein which expressly survive the termination of this Agreement, this
Agreement shall terminate at such time as the Rights are no longer exercisable hereunder.

          (b) The Purchase Price for each one one-thousandth of a Preferred Share purchasable pursuant
to the exercise of a Right shall initially be $35.00, and shall be subject to adjustment from time
to time as provided in Section 11 or 13 hereof (as adjusted from time to time, the “Purchase
Price”) and shall be payable in lawful money of the United States of America in accordance with
subsection (c) below.

          (c) Upon receipt of a Right Certificate representing exercisable Rights, or proper election
instructions from the holder of uncertificated Rights, in each case, with the form of election to
purchase duly and properly executed, accompanied by payment of the Purchase Price for the Preferred
Shares to be purchased and an amount equal to any applicable tax or charge required to be paid
under Section 9(e) hereof by certified check, cashier’s check, bank draft or money order payable to
the order of the Company, subject to Section 20(h) hereof, the
Rights Agent shall thereupon promptly (i)(A) requisition from any transfer agent of the Preferred
Shares certificates for the number of Preferred Shares to be purchased, if certificated Rights are
to be issued, 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 use a depositary agent for the
Preferred Shares issuable upon exercise of the Rights, requisition from the depositary agent
depositary receipts representing such number of one one-thousandths of a Preferred Share as are

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to be purchased (in which case any certificates for the Preferred Shares represented by such receipts
shall be deposited by the transfer agent with the depositary agent) and the Company hereby directs
each such depositary agent to comply with such request, (ii) when appropriate, requisition from the
Company the amount of cash to be paid in lieu of issuance of fractional shares in accordance with
Section 14 hereof, (iii) register such Rights in such name or names as may be designated by the
holder of such Rights, and if certificated, 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
Rights, and (iv) when appropriate, after receipt, deliver such cash to or upon the order of the
registered holder of such Rights.

          (d) 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 Rights
remaining unexercised shall be issued by the Rights Agent to the registered holder of such Right
Certificate or to his duly authorized assigns, subject to the provisions of Section 14 hereof.

          (e) Notwithstanding anything in this 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 exercise as
set forth in this Section 7 unless such registered holder shall have (i) properly completed
and signed the certificate contained in the form of election to purchase set forth on the reverse
side of the Right Certificate surrendered for such exercise, or such other form of election
provided by the Company in the case of uncertificated Rights, (ii) provided such additional
evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) thereof and of the Rights evidenced thereby and of the Affiliates and Associates of such Beneficial Owner (or former

18

 

Beneficial Owner) as the Company or the Rights Agent shall reasonably request, and (iii) provided
such additional information and documentation as the Rights Agent may reasonably request.

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

          Section 9. Availability of Preferred Shares.

          (a) From and after the Close of Business on the Distribution Date, until the Close of Business
on the earlier to occur of the Redemption Date, the Exchange Date or the Final Expiration Date, the
Company will cause to be reserved and kept available out of its authorized and unissued Preferred
Shares or any Preferred Shares held in its treasury, the number of Preferred Shares that will be
sufficient to permit the exercise in full of all outstanding Rights in accordance with this
Agreement.

          (b) So long as the Company’s capital stock and other securities issuable and deliverable upon
the exercise of the Rights may be listed or traded on any stock exchange or

19

 

inter-dealer quotation system, the Company shall use its best efforts to cause, from and after such time as the Rights
become exercisable (but only to the extent that the Company’s Board of Directors determines that it
is reasonably likely that the Rights will be exercised), all the Company’s capital stock and other
securities reserved for such issuance to be listed on such exchange or inter-dealer quotation
system upon official notice of issuance upon such exercise.

          (c) The Company shall use its best efforts to (i) file, as soon as practicable following the
earliest date after the first occurrence of an event described in the first sentence of Section
11(a)(ii) hereof on which the consideration to be delivered by the Company upon exercise of the
Rights has been determined pursuant to this Agreement, or as soon as is required by law following
the Distribution Date, as the case may be, a registration statement under the Securities Act, with
respect to the Company’s capital stock and other securities issuable and deliverable upon the
exercise of the Rights on an appropriate form, (ii) cause such registration statement to become
effective as soon as practicable after such filing, and (iii) cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of the Securities Act)
until the earlier to occur of (A) the date as of which the
Rights are no longer exercisable for such capital stock or securities, (B) the date as of
which the Rights have been exchanged pursuant to Section 24, (C) the Redemption Date, or (D) the
Final Expiration Date. The Company will also take such action as may be appropriate under, or to
ensure compliance with, the securities or “blue sky” laws of the various states in connection with
the exercisability of the Rights. The Company may, by issuing a public announcement, temporarily
suspend, for a period of time not to exceed ninety days after the date the Company first becomes
obligated to use its best efforts to file a registration statement as set forth in clause (i) of
the first sentence of this Section 9(c), the exercisability of the Rights in order to prepare

20

 

and file such registration statement under the Securities Act and permit it to become effective. Upon
any such suspension, the Company shall issue a public announcement stating that the exercisability
of the Rights has been temporarily suspended, as well as a public announcement at such time as the
suspension is no longer in effect. The Company shall notify the Rights Agent whenever it makes a
public announcement pursuant to this Section 9(c) and give the Rights Agent 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 registration or qualification under the
securities or “blue sky” laws of such jurisdiction shall have been obtained and until a
registration statement under the Securities Act shall have been declared effective.

          (d) The Company will take all such action as may be necessary to ensure that all the Company’s
capital stock issued and delivered upon exercise of Rights shall, at the time of delivery of the
certificates therefor or other evidence of issuance, in the case of uncertificated shares (subject
to payment of the Purchase Price and compliance with all other applicable provisions of this
Agreement), be duly and validly authorized and issued, fully paid and nonassessable.

          (e) The Company will pay when due and payable any and all taxes and governmental charges which
may be payable in respect of the issuance or delivery of the Right Certificates, or evidence of
uncertificated Rights, or of any Preferred Shares or other securities upon the exercise of Rights.
The Company shall not, however, be required to pay any tax or charge which may be payable in
respect of any transfer or delivery of Rights to a Person other than, or the issuance or delivery
of certificates or depositary receipts or evidence of uncertificated shares for the Preferred
Shares or other securities in a name other than that of, the registered holder of the Rights
surrendered for exercise or to issue or to deliver any certificates or

21

 

depositary receipts or evidence of uncertificated shares for Preferred Shares or other
securities upon the exercise of any Rights until any such tax or charge shall have been paid (any
such tax or charge being payable by the holder of such Rights 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 Shares Record Date. Each Person in whose name any certificate
for Preferred Shares or other securities issued upon the exercise of Rights or who is otherwise the
registered holder thereof on the books of the Company shall for all purposes be deemed to have
become the holder of record of such Preferred Shares or other securities and any such certificate
shall be dated, the date upon which the Rights were duly surrendered, and the form of election to
purchase duly and properly executed and delivered, and payment of the Purchase Price (and any
applicable taxes or governmental charges) was duly made; provided, however, that if the date of
such surrender, delivery and payment is a date upon which the transfer books of the Company for the
Preferred Shares or other securities, as applicable, are closed, such Person shall be deemed to
have become the record holder of such shares on, and any such certificate shall be dated, the next
succeeding Business Day on which the transfer books of the Company for the Preferred Shares or
other securities, as applicable, are open. Prior to the exercise of the Rights evidenced thereby,
the holder of a Right Certificate shall not be entitled to any rights of a holder of Preferred
Shares or other securities for which the Rights shall be exercisable, including, without
limitation, the right to vote or to receive dividends or other distributions, and shall not be
entitled to receive any notice of any proceedings of the Company, except as provided herein.

          Section 11. Adjustment of Purchase Price, Number and Kind of Shares or
Number of Rights. The Purchase Price, the number and kind of shares or other assets issuable

22

 

upon exercise of each Right and the number of Rights outstanding are subject to adjustment
from time to time as provided in this Section 11.

          (a) (i) In the event the Company shall at any time after the date of this Agreement and prior
to the earlier to occur of the Redemption Date, the Exchange Date or the Final Expiration Date (A)
declare a dividend on the Preferred Shares payable in Preferred Shares, (B) subdivide the
outstanding Preferred Shares, (C) combine or consolidate the outstanding Preferred Shares into a
smaller number of Preferred Shares or (D) issue any shares of its capital stock in a
reclassification of Preferred Shares (including without limitation any reclassification in
connection with a consolidation or merger in which the Company is the continuing or surviving
corporation), except as otherwise provided in this Section 11(a), the Purchase Price in effect at
the time of the record date for such dividend or of the effective date of such subdivision,
combination, consolidation 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 Shares transfer books of the Company were open, it would have owned upon such exercise
and been entitled to receive by virtue of such dividend, subdivision, combination, consolidation or
reclassification; provided, however, that (A) 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, and (B) if the dividend declared on the Preferred
Shares is cancelled without payment of the dividend, such adjustment to the Purchase Price shall
also be reversed as of such date. Such adjustment shall be made successively whenever such a
record date or effective date is fixed or occurs.

23

 

               (ii) Subject to the immediately succeeding paragraph, in the event any Person becomes an
Acquiring Person, and the Redemption Date, the Exchange Date or the Final Expiration Date shall not
have occurred within ten Business Days thereafter, each holder of a Right shall thereafter have a
right to receive, upon exercise thereof at a price equal to the then current Purchase Price
multiplied by the number of one one-thousandths of a Preferred Share for which a Right is then
exercisable, in accordance with the terms of this Agreement and in lieu of Preferred Shares such
number of Common Shares as shall equal the result obtained by (x) multiplying the then current
Purchase Price by the number of one one-thousandths of a Preferred Share for which a Right is then
exercisable and dividing that product by (y) 50% of the then current per share market price of the
Common Shares (determined pursuant to Section 11(d) hereof) on the date of the occurrence of such
event. From and after the occurrence of an event specified in Section 13(a) hereof, any Rights
that theretofore had not been exercised shall thereafter by exercisable only in accordance with
Section 13 and not pursuant to this Section 11(a)(ii).

               Notwithstanding anything contained herein to the contrary, in the event any Person becomes an
Acquiring Person, (A) from and after the occurrence of such event, any Rights that are or were
acquired or are thereafter acquired or Beneficially Owned by any Acquiring Person (or any Associate
or Affiliate of such Acquiring Person) shall be null and void without any further action by any
Person and any holder of such Rights shall thereafter have no right whatsoever with respect to such
Rights, under any provision of this Agreement or otherwise (whether or not such holder is an
Acquiring Person or an Associate or Affiliate of an Acquiring Person); (B) no Right Certificate or
other evidence of issuance shall be issued pursuant to Section 3 or Section 6 hereof that
represents Rights Beneficially Owned by an Acquiring Person

24

 

whose Rights would be null and void pursuant to the preceding clause (A) or any Associate or
Affiliate of such Acquiring Person or nominee of such Acquiring Person, Associate or Affiliate
(with respect to the Rights of such Acquiring Person, Associate or Affiliate); (C) no Right
Certificate or other evidence of issuance shall be issued at any time upon the transfer of any
Rights to an Acquiring Person whose Rights would be null and void pursuant to clause (A) above or
any Associate or Affiliate thereof or to any nominee of such Acquiring Person, Associate or
Affiliate (with respect to the Rights of such Acquiring Person, Associate or Affiliate); and
(D) any Right Certificate delivered to the Rights Agent for transfer to an Acquiring Person whose
Rights would be null and void pursuant to clause (A) above or any Associate or Affiliate thereof or
to any nominee of such Acquiring Person, Associate or Affiliate (with respect to the Rights of such
Acquiring Person, Associate or Affiliate) shall be cancelled. Promptly after it becomes aware of
the existence of any such Acquiring Person, Associate or Affiliate of such Acquiring Person, or the
nominee of any of the foregoing, the Company shall give the Rights Agent written notice of the
identity of such Acquiring Person, Associate or Affiliate of such Acquiring Person, or the nominee
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 of any of the foregoing unless and until
it shall have received such notice.

               (iii) Subject to Section 24, in the event that there shall not be sufficient Common Shares
issued but not outstanding or authorized but unissued to permit the exercise in full of the Rights
in accordance with the foregoing clause (ii), the Company shall promptly take all such action as
may be necessary to authorize additional Common Shares for issuance as soon as possible upon the
exercise of the Rights, or the Company shall uniformly substitute, for all or

25

 

a portion of the Common Shares that would otherwise be issuable upon exercise of a Right, cash or
other debt or equity securities of the Company or fractions thereof (including without limitation
Preferred Shares) that have an aggregate value equal to the current per share market price of one
Common Share as of the date of issuance of such securities or fraction thereof.

          (b) If the Company shall fix a record date for the issuance of rights, options or warrants to
all holders of Preferred Shares entitling them (for a period expiring within 45 calendar days after
such record date) to subscribe for or purchase Preferred Shares or shares having the same rights,
privileges and preferences as the Preferred Shares (“Equivalent Preferred Shares”) or securities
convertible into Preferred Shares or Equivalent Preferred Shares at a price per Preferred Share or
Equivalent Preferred Share (or having a conversion price per share, if a security is convertible
into Preferred Shares or Equivalent Preferred Shares) less than the then current per share market
price of the Preferred Shares (as determined pursuant to Section 11(d) hereof) on such record date,
the Purchase Price to be in effect after such record date shall be determined by multiplying the
Purchase Price in effect immediately prior to such record date by a fraction, the numerator of
which shall be the number of Preferred Shares and Equivalent Preferred Shares outstanding on such
record date plus the number of Preferred Shares which the aggregate subscription price of the total
number of Preferred Shares and/or Equivalent Preferred Shares so to be offered to shares of
Preferred Stock outstanding on the record date (plus the aggregate initial conversion price of any
such convertible securities so to be offered) would purchase at such current market price, and the
denominator of which shall be the number of Preferred Shares and Equivalent Preferred Shares
outstanding on such record date plus the number of additional Preferred Shares and/or Equivalent
Preferred Shares to be offered for subscription or purchase (or into which the convertible
securities so to be offered are initially

26

 

convertible); provided, however, that in no event shall the Purchase Price 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 such subscription price may be paid in a
consideration part or all of which shall be in a form other than cash, the value of such
consideration shall be as determined in good faith by the Board of Directors of the Company, whose
determination shall be described in a statement filed with the Rights Agent and binding on the
Rights Agent and the holders of Rights. Preferred Shares and Equivalent Preferred Shares owned by
or held for the account of the Company shall not be deemed outstanding for the purpose of any such
computation. Such adjustment shall be made successively whenever such a record date is fixed; and
in the event that such rights, options or warrants are not so issued, the Purchase Price shall be
adjusted to be the Purchase Price which would then be in effect if such record date had not been
fixed.

          (c) If the Company shall fix a record date for the making of a distribution to all holders of
the Preferred Shares (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
securities (including evidences of indebtedness) or assets (other than a regular quarterly cash
dividend or a dividend payable in Preferred Shares) or rights, options or warrants (excluding those
for which adjustments are made pursuant to Sections 11(a) or (b) hereof), the Purchase Price to be
in effect after such record date shall be determined by multiplying the Purchase Price in effect
immediately prior to such record date by a fraction, the numerator of which shall be the then
current per share market price of the Preferred Shares on such record date, less the fair market
value (as determined in good faith by the Board of Directors of the Company, whose determination
shall be described in a statement filed with the Rights Agent) of

27

 

the portion of the securities or assets or of such rights, options or warrants so to be distributed
applicable to one Preferred Share, and the denominator of which shall be such current per share
market price of the Preferred Shares; provided, however, that in no event shall the Purchase Price
to be paid upon the exercise of one Right be less than the aggregate par value of the shares of
capital stock of the Company to be issued upon exercise of one Right. Such adjustments shall be
made successively whenever such a record date is fixed; and in the event that such distribution is
not so made, the Purchase Price shall again be adjusted to be the Purchase Price which would then
be in effect if such record date had not been fixed.

          (d) (i) For the purpose of any computation hereunder, the “current per share market price” of
any security (a “Security” for the purpose of this Section 11(d)(i)) on any date shall be deemed to
be the average of the daily closing prices per share of such Security for the 30 consecutive
Trading Days (as 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 a period following the announcement by the issuer of such Security of (A) a dividend or
distribution on such Security payable in shares of such Security or securities convertible into
such Security, or (B) any subdivision, combination or reclassification of such Security, then, and
in each such case, the current per share market price shall be appropriately adjusted to reflect
the current market price per share equivalent of such Security taking into account such dividend or
distribution, or subdivision, combination or reclassification. 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 New York Stock Exchange or, if the Security is not listed or

28

 

admitted to trading on the New York Stock Exchange, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal national securities
exchange or inter-dealer quotation system 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 or
inter-dealer quotation system, 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 on the Nasdaq Stock Market or
such other system then in use, or, if on any such date the Security is not quoted by any such
system, the average of the closing bid and asked prices as furnished by a professional market maker
making a market in the Security selected in good faith by the Board of Directors of the Company.
The term “Trading Day” shall mean a day on which the principal national securities exchange or
inter-dealer quotation system 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 or inter-dealer quotation system, a Business Day.

               (ii) For the purpose of any computation hereunder, if the Preferred Shares are publicly
traded, the “current per share market price” of the Preferred Shares shall be determined in
accordance with the method set forth in Section 11(d)(i). If the Preferred Shares are not publicly
traded but the Common Shares are publicly traded, the “current per share market price” of the
Preferred Shares shall be conclusively deemed to be the current per share market price of the
Common Shares as determined pursuant to Section 11(d)(i) (appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date hereof), multiplied by
one thousand (as such number may be appropriately adjusted for stock splits, stock dividends and
other recapitalizations of the Common Shares pursuant to Section 11(n)). If neither the Common
Shares nor the Preferred Shares are publicly traded, the “current per share

29

 

market price” shall mean the fair value per share as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement filed with the
Rights Agent and be binding on the Rights Agent and the holders of Rights.

               (e) No adjustment in the Purchase Price shall be required unless such adjustment would require
an increase or decrease of at least 1% in the Purchase Price; provided, however, that any
adjustments which by reason of this Section 11(e) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment. All calculations under this
Section 11 shall be made to the nearest cent or to the nearest one-millionth of a Preferred Share
or one ten-thousandth of any other share or security as the case may be. Notwithstanding the first
sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later
than the earlier to occur of (i) three years from the date of the transaction which would require
such adjustment but for this Section 11(e) (unless the Final Expiration Date occurs prior to such
date), (ii) the Redemption Date, or (iii) the time at which such Rights are exchanged as provided
in Section 24 hereof.

               (f) If as a result of an adjustment made pursuant to Section 11(a) hereof, the holder of any
Right thereafter exercised shall become entitled to receive any securities or other assets of the
Company other than Preferred Shares, thereafter the number or amount of such other securities or
other assets 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 Shares contained in Section 11 and the provisions of Sections 7, 9, 10, 13 and 14
with respect to the Preferred Shares shall apply on like terms to any such other securities, and to
the extent applicable, other assets.

30

 

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

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

               (i) The Company may elect on or after the date of any adjustment of the Purchase Price to
adjust the number of Rights, in substitution for any adjustment in the number of one
one-thousandths of a Preferred Share purchasable upon the exercise of a Right. Each of the
unexercised Rights outstanding after such adjustment of the number of Rights shall be exercisable
for the number of one one-thousandths of a Preferred Share for which a Right was exercisable
immediately prior to such adjustment. Each unexercised Right held outstanding prior to such
adjustment of the number of Rights shall become that number of unexercised Rights (calculated to
the nearest one ten-thousandth) obtained by dividing the Purchase Price in effect immediately prior
to adjustment of the Purchase Price by the Purchase Price in effect

31

 

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 10 days
later than the date of the public announcement. If Right Certificates have been issued, or
uncertificated Rights have been issued, upon each adjustment of the number of Rights pursuant to
this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to
holders of record of Rights on such record date Right Certificates evidencing, or other evidence of
issuance, if the Rights are uncertificated, subject to Section 14 hereof, the additional Rights to
which such holders shall be entitled as a result of such adjustment, or, at the option of the
Company, with respect to certificated Rights, 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 such Rights
Certificates, or other evidence of issuance, if the Rights are uncertificated, shall be registered
in the names of the holders of record of Rights on the record date specified in the public
announcement.

               (j) Irrespective of any adjustment or change in the Purchase Price or the number of one
one-thousandths of a Preferred Share or other securities or assets issuable upon the exercise of
the Rights, the Right Certificates or other evidence of issuance theretofore

32

 

and thereafter issued may continue to express the Purchase Price and the number of one
one-thousandths of a Preferred Share which were expressed in the initial Right Certificates or
other evidence of issuance issued hereunder.

               (k) Notwithstanding anything contained herein, if the Company is required to take any action
that would cause an adjustment reducing the Purchase Price below the par value, if any, of the
fraction of a Preferred Share or other security issuable upon exercise of the Rights, before taking
any such action, 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 securities at such adjusted Purchase Price.

               (l) In any case in which this Section 11 shall require that any 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
issuing to the holder of any Right exercised after such record date of the Preferred Shares and
other capital stock or securities of the Company, if any, issuable upon such exercise over and
above the Preferred Shares and other capital stock or securities of the Company, if any, issuable
upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided,
however, that the Company shall deliver to such holder a due bill or other appropriate instrument
evidencing such holder’s right to receive such additional securities or assets upon the occurrence
of the event requiring such adjustment.

               (m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled
to make such adjustments to 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

33

 

Shares, issuance wholly for cash of any Preferred Shares at less than the current market price,
issuance wholly for cash of Preferred Shares or securities convertible into or exchangeable for
Preferred Shares, dividends on Preferred Shares payable in Preferred Shares or issuance of rights,
options or warrants referred to hereinabove in Section 11(b), hereafter made by the Company to
holders of its Preferred Shares shall not be taxable to such stockholders.

               (n) In the event that at any time after the date of this Agreement and prior to the
Distribution Date, the Company shall (i) declare or pay any dividend on the Common Shares payable
in Common Shares or (ii) effect a subdivision, combination or consolidation of the Common Shares
(by reclassification or otherwise than by payment of dividends in Common Shares) into a greater or
lesser number of Common Shares, then in any such case, the number of one one-thousandths of a
Preferred Share purchasable after such event upon proper exercise of each Right shall be adjusted
to be equal to the product of (x) the number of one one-thousandths of a Preferred Shares so
purchasable immediately prior to such event and (y) a fraction, the numerator of which is the
number of Common Shares outstanding immediately before such event and the denominator of which is
the number of Common Shares outstanding immediately after such event. The adjustments provided
for in this Section 11(n) shall be made successively whenever such a dividend is declared or paid
or such a subdivision, combination or consolidation is effected.

               (o) The Company covenants and agrees that it shall not, at any time after the Distribution
Date, (i) consolidate with any other Person (other than a Subsidiary of the Company in a
transaction that complies with Section 11(p) hereof) or (ii) merge with or into any other Person
(other than a Subsidiary of the Company in a transaction that complies with Section 11(p) hereof),
if (x) at the time of or immediately after such consolidation or merger there are

34

 

any rights, options, 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 or (y) prior to, simultaneously with or immediately after such consolidation
or merger, the shareholders of the Person consolidating or merging with the Company shall have
received a distribution of Rights previously Beneficially Owned by such Person or any of its
Affiliates and Associates.

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

          Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an
adjustment is made or any event affecting the Rights or their exercisability (including without
limitation an event which causes Rights to become null and void) occurs as provided in Section 11
or 13 hereof, the Company shall promptly (a) 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 any adjustment, (b) file with the Rights Agent and with each transfer
agent for the Common Shares or the Preferred Shares a copy of such certificate, and (c) mail a
brief summary thereof to each holder of a Right Certificate in accordance with Section 25 and
Section 26 hereof or issue a public announcement providing such information. The Rights Agent
shall be fully protected in relying on any such certificate delivered pursuant to clause (b) and on
any adjustment or statement therein contained and shall

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have no duty or liability with respect to, and shall not be deemed to have knowledge of, any
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.

          (a) In the event, directly or indirectly, at any time after a Person has become an Acquiring
Person, (i) the Company shall consolidate with, or merge with and into, any other Person (other
than a Subsidiary of the Company in a transaction that complies with Section 11(p) hereof) and the
Company shall not be the continuing or surviving corporation, (ii) any Person (other than a
Subsidiary of the Company in a transaction that complies with Section 11(p) hereof) shall
consolidate with, or merge with and into, the Company and the Company shall be the continuing or
surviving corporation, and, in connection therewith, all or part of the Common Shares shall be
changed into or exchanged for stock or other securities of any other Person (or the Company) or
cash or any other property, or (iii) the Company shall sell, dispose of or otherwise transfer (or
the Company and one or more of its Subsidiaries shall sell, dispose of or otherwise transfer), in
one or more related transactions (other than transactions in the ordinary course of business),
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 Person or Persons acting in concert other than the
Company or one or more of its wholly-owned Subsidiaries, then, and in each such case, proper
provision shall be made so that (1) each holder of a Right (except holders of Rights that have
become null and void pursuant to Section 11(a)(ii) hereof) shall thereafter have the right to
receive, upon the exercise thereof at a price equal to the then current Purchase Price multiplied
by the number of one one-thousandths of a Preferred Share for which a Right is then exercisable, in
accordance with the terms of this Agreement, and in lieu of Preferred Shares

36

 

or other securities or assets of the Company, such number of validly authorized and issued, fully
paid, non-assessable and freely tradable Equity Shares of the Successor Person (including the
Company as successor thereto or as the surviving corporation) as shall equal the result obtained by
(A) multiplying the then current Purchase Price by the number of one one-thousandths of a Preferred
Share for which a Right is then exercisable (which shall be deemed to be one one-thousandths of a
Preferred Share if a Right is then exercisable for Common Shares or other securities), and dividing
that product by (B) 50% of the then current per share market price of the Equity Shares of the
Successor Person (determined pursuant to Section 11(d) hereof) on the date of consummation of such
consolidation, merger, sale, disposition or transfer; (2) the Successor Person shall thereafter be
liable for, and shall have been deemed to assume, by virtue and operation of such consolidation,
merger, sale, disposition or transfer, all the obligations and duties of the Company pursuant to
this Agreement; (3) the term “Company” shall thereafter be deemed to refer to the Successor Person;
and (4) the Successor Person shall take such steps (including, but not limited to, the reservation
of a sufficient number of its Equity Shares to permit the exercise of Rights in full for such
Equity Shares) in connection with such consummation as may be necessary to assure that the
provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to
the Equity Shares thereafter deliverable upon the exercise of the Rights.

          (b) The Company shall not consummate any such consolidation, merger, sale, disposition or
transfer unless the Successor Person shall have a sufficient number of authorized Equity Shares,
which have not been issued or reserved for issuance, to permit the exercise in full of the Rights
in accordance with this Section 13 and unless prior thereto the Company and the Successor Person
shall have executed and delivered to the Rights Agent a supplemental

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agreement providing for the terms set forth in this Section 13 and further providing that, as soon
as practicable after the date of any such consolidation, merger, sale, disposition or transfer, the
Successor Person will:

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

     (ii) will deliver to holders of the Rights historical financial statements for
such Person and each of its Affiliates which comply in all respects with the
requirements for registration on Form 10 (or any successor form) under the Exchange
Act;

     (iii) use its best efforts, if the securities or depository receipts
representing such securities of the Successor Person shall be listed or admitted to
trading on the New York Stock Exchange or on a 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 New York Stock Exchange or such
securities exchange, or, if the securities or depository receipts representing such
securities of the Successor Person shall not be listed or admitted to trading on the
New York Stock Exchange or a national securities exchange, to cause the Rights and
the securities receivable upon exercise of the Rights to be reported by such other
system then in use; and

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     (iv) obtain waivers of any rights of first refusal or preemptive rights in
respect of the securities of the Successor Person subject to purchase upon exercise
of outstanding Rights.

In the event that a merger, consolidation, sale, disposition or transfer described in the first
sentence of this Section 13 shall occur at any time after the occurrence of an event described in
the first sentence of Section 11(a)(ii) hereof, the Rights which have not theretofore been
exercised shall thereupon become immediately exercisable in the manner described in this Section.
The Company shall not enter into any transaction of the kind referred to in this Section 13 if at
the time of such transaction there are any rights, options, warrants, instruments or securities
outstanding or any agreements or arrangements which, as result of the consummation of such
transaction, would eliminate or substantially diminish the benefits intended to be afforded by the
Rights. The provisions of this Section 13 shall similarly apply to successive mergers or
consolidations or sales or disposition or other transfers.

          Section 14. Fractional Rights and Fractional Shares.

          (a) The Company shall not be required to issue fractions of Rights or to distribute Right
Certificates which evidence fractional Rights. If it elects, in its sole discretion, in lieu of
such fractional Rights, the Company may pay to the registered holders of the Rights with regard to
which such fractional Rights would otherwise be issuable, an amount in cash equal to the same
fraction of the current market value of a whole Right. For the purposes of this Section 14(a), the
current market value of a whole Right shall be the closing price of the Rights for the Trading Day
immediately prior to the date on which such fractional Rights would have been otherwise issuable.
The closing price for any day shall be determined in accordance with Section 11(d) hereof.

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          (b) The Company shall not be required to issue fractions of Preferred Shares (other than
fractions which are integral multiples of one one-thousandth of a Preferred Share) upon exercise or
exchange of the Rights or to distribute certificates which evidence fractional Preferred Shares
(other than fractions which are integral multiples of one one-thousandth of a Preferred Share).
Fractions of Preferred Shares 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 Shares represented by such depositary receipts. If it elects, in its sole discretion, in
lieu of fractional Preferred Shares that are not integral multiples of one one-thousandth of a
Preferred Share, the Company may 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 market value of one Preferred Share. For the purposes of this
Section 14(b), the current market value of a Preferred Share shall be the closing price of a
Preferred Share (as determined in accordance with Section 11(d) hereof) for the Trading Day
immediately prior to the date of such exercise or exchange.

          (c) The Company shall not be required to issue fractions of Common Shares or to distribute
certificates which evidence fractional Common Shares upon the exercise or exchange of Rights. If
it elects in its sole discretion, in lieu of such fractional Common Shares, the Company may pay to
the registered holders of the Right Certificates with regard to which such fractional Common Shares
would otherwise be issuable an amount in cash equal to the same fraction of the current market
value of a whole Common Share (as determined in
accordance with Section 11(d)) for the Trading Day immediately prior to the date of such
exercise or exchange.

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

          (e) 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.

          Section 15. Rights of Action.

          (a) All rights of action in respect of this Agreement, except the rights of action given to
the Rights Agent under Section 18 and Section 20 hereof, are vested in the respective registered
holders of the Rights (and, prior to the Distribution Date, the registered holders of the Common
Shares). Any registered holder of any Right (or, prior to the Distribution Date, of the Common
Shares), without the consent of the Rights Agent or of the holder of any other Right (or, prior to
the Distribution Date, of the Common Shares), may, in its own behalf and for its own benefit,
enforce, and may institute and maintain any suit, action or proceeding

41

 

against the Company to enforce, or otherwise act in respect of, its right to exercise such holder’s
Rights in the manner provided 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 by the Company of this Agreement and will
be entitled to specific performance of the obligations under, and injunctive relief against actual
or threatened violations by the Company of the obligations of any Person subject to, this
Agreement.

          (b) 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;
provided, however, that the Company shall use all reasonable efforts to have any such injunction,
order, judgment, decree or ruling lifted or otherwise overturned as soon as possible.

          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 Shares;

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          (b) after the Distribution Date, the Rights are transferable only on the registry books of the
Rights Agent, and in the case of certificated Rights, if the Rights Certificate is surrendered at
the office of the Rights Agent designated for such purpose, duly endorsed or accompanied by a
proper instrument of transfer, and in the case of uncertificated Rights, if proper instruction of
transfers are so delivered; and

          (c) the Company and the Rights Agent may deem and treat the Person in whose name the Rights
(or, prior to the Distribution Date, the associated Common Shares) is registered as the absolute
owner thereof notwithstanding any notations of ownership or writing on the Right Certificates or
the associated Common Shares certificate, or other evidence of issuance in the case of
uncertificated Rights or shares, made by anyone other than the Company or the Rights Agent for all
purposes whatsoever, and whether or not the Company or the Rights Agent shall have received any
notice to the contrary.

          Section 17. Rights Holder Not Deemed a Stockholder. No holder, as such, of any
Rights shall be entitled to vote or receive dividends or be deemed for any purpose the holder of
the Preferred Shares or any other securities which may at any time be issuable on the exercise of
the Rights of such holder, nor shall anything contained herein or in any Right Certificate or other
evidence of issuance of uncertificated Rights be construed to confer upon the holder of any Rights,
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 25 hereof), or to receive dividends or
subscription rights, or otherwise, until the Right or Rights shall have been exercised in
accordance with the provisions hereof.

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          Section 18. Concerning the Rights Agent.

          (a) The Company agrees to pay to the Rights Agent reasonable compensation for all services
rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable
expenses and counsel fees and other disbursements incurred in the preparation, delivery, amendment,
administration and execution of this Agreement and the exercise and performance of its duties
hereunder (which fees and expenses shall be such fees and expenses set forth in any service
agreement between the Company and the Rights Agent, as transfer agent of the Common Shares, to the
extent specifically addressed therein). 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 order, judgment, decree or ruling 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. 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 hereof shall survive the termination of this
Agreement, the exercise or expiration of the Rights and the resignation, replacement or removal of
the Rights Agent.

          (b) 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 Shares or

44

 

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

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

          (a) Any Person into which the Rights Agent or any successor Rights Agent may be merged or with
which it may be consolidated, or any Person resulting from any merger or consolidation to which the
Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the
shareholder services business of the Rights Agent or any successor Rights Agent, shall be the
successor to the Rights Agent under this Agreement without the execution or filing of any paper or
any further act on the part of any of the parties hereto; provided, that such Person would be
eligible for appointment as a successor Rights Agent under Section 21 hereof. 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.

          (b) In case at any time the name of the Rights Agent shall be changed and at such time any of
the Right Certificates shall have been countersigned but not delivered, the

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

          (a) 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 accordance with such
advice or opinion.

          (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem
it necessary or desirable that any fact or matter (including without limitation, the identity of an
Acquiring Person and the determination of the current per share market price of any security) 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 Chief Executive Officer, President, any Executive Vice President or Vice President, the
Treasurer or the Secretary of the Company and delivered to the Rights Agent; and such certificate
shall be full and complete authorization and

46

 

protection to the Rights Agent and the Rights Agent shall incur no liability for or in respect of
any action taken, suffered or omitted by it under the provisions of this Agreement in reliance upon
such certificate.

          (c) The Rights Agent shall be liable hereunder to the Company and any other Person only for
its own gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or
willful misconduct must be determined by a final, non-appealable order, judgment, decree or ruling
of a court of competent jurisdiction). Anything to the contrary notwithstanding, in no event shall
the Rights Agent be liable for special, punitive, indirect, consequential or incidental loss or
damage of any kind whatsoever (including but not limited to lost profits), even if the Rights
Agent has been advised of the likelihood of such loss or damage. Any liability of the Rights Agent
under this Agreement will be limited to the amount of fees paid by the Company to the Rights Agent.

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

          (e) The Rights Agent shall not 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 the
Rights becoming null and void pursuant to Section 11(a)(ii) hereof) or any change

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or adjustment in the terms of the Rights (including the manner, method or amount thereof) provided
for in Section 3, 11, 13, 23 or 24, or the ascertaining of the existence of facts that would
require any such change or adjustment (except with respect to the exercise of Rights 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 Shares to be issued pursuant to this Agreement or any Right
Certificate or as to whether any Preferred Shares will, when issued, be validly authorized and
issued, fully paid and nonassessable.

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

          (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties hereunder from any one of the Chief Executive Officer, President, any
Executive Vice President or Vice President, the Treasurer or the Secretary of the Company, and to
apply to such officers for advice or instructions in connection with its duties, and such
instructions shall be full authorization and protection to the Rights Agent and the Rights Agent
shall not be liable for or in respect of any action taken, suffered or omitted by it in accordance
with instructions of any such officer or for any delay in acting while waiting for those
instructions. The Rights Agent shall be fully authorized and protected in relying upon the most
recent instructions received by the Rights Agent from any such officer. Any application by the
Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set
forth in writing any action proposed to be taken, suffered or omitted by the Rights

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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 of the foregoing officers 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.

          (h) If, with respect to any Rights 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
therein, as the case may be, has either not been completed or indicates an affirmative response to
clause 1 or 2 thereof, the Rights Agent shall not take any further action with respect to such
requested exercise or transfer without first consulting with the Company.

          (i) 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
become pecuniarily interested in any transaction in which the Company may be interested, or
contract with or lend money to the Company or otherwise act as fully and freely as though 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.

          (j) 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

49

 

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).

          (k) No provision of this Agreement shall require the Rights Agent to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties hereunder
or in the exercise of its rights if 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 30 days’ notice in writing
mailed to the Company and to each transfer agent of the Common Shares or Preferred Shares known to
the Rights Agent by registered or certified mail, and to the holders of the Right Certificates by
first-class mail. The Company may remove the Rights Agent or any successor Rights Agent upon 30
days’ notice in writing, (i) mailed to the Rights Agent or successor Rights Agent, as the case may
be, by registered or certified mail, (ii) mailed to each transfer agent of the Common Shares or
Preferred Shares by registered or certified mail, and (iii) to the holders of the Right
Certificates by the issuance of a public announcement providing such information or by first-class
mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of
acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to
make such appointment within a period of 30 days after giving notice of such

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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 (who shall, with such notice, submit his
Right Certificate for inspection by the Company, if any, or other evidence of ownership of such
Right acceptable to the Company and the Rights Agent), then the registered holder of any Right 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 a 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 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 (A) file notice thereof in writing with the
predecessor Rights Agent, (B) file notice thereof in writing with each transfer agent of the Common
Shares or Preferred Shares, and (C) issue a public announcement providing such information or mail
a notice thereof in writing to the registered holders of the Rights. 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.

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          Section 22. Issuance of New Right Certificates.

          (a) 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 of Directors to reflect any adjustment or change in the Purchase Price and
the number or kind or class of shares or other securities or property purchasable under the Right
Certificates made in accordance with the provisions of this Agreement.

          (b) In addition to one Right being issued to each Common Share outstanding as of the Close of
Business on the Record Date, the Company shall issue one Right for each Common Share that shall
become outstanding between the Record Date and the earliest of the Distribution Date, the
Redemption Date, the Exchange Date and the Final Expiration Date, and the Company shall issue one
Right to each Common Share that shall be issued by the Company at any time on or after the
Distribution Date and prior to the earlier of the Redemption Date, the Exchange Date or the Final
Expiration Date, pursuant to the exercise of conversion rights, exchange rights, rights (other than
Rights), warrants or options that shall have been granted or sold prior to the Distribution Date,
in each case subject to adjustment as set forth herein, provided, however, that (i) no such Rights
shall be issued if, and to the extent that, the Company shall be advised by counsel that such
issuance would create a significant risk of material adverse tax consequences to the Company or the
Person to whom such Rights would be issued and (ii) no such Rights 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.

          (a) The Board of Directors of the Company may, at its option, at any time prior to ten
Business Days after the Shares Acquisition Date (unless a transaction described in

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the first sentence in Section 13(a) shall earlier occur), redeem all but not less than all the then
outstanding Rights at a redemption price of $0.01 per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date hereof (such redemption
price being hereinafter referred to as the “Redemption Price”). The redemption of the Rights by the
Board of Directors may be made effective at such time, on such basis and with such conditions as
the Board of Directors in its sole discretion may establish.

          (b) Immediately upon the action of the Board of Directors of the Company ordering the
redemption of the Rights pursuant to subsection (a) of this Section 23, and without any further
action and without any notice, the right to exercise the Rights shall terminate and the only right
thereafter of the holders of Rights shall be to receive the Redemption Price. The Company shall
promptly give public notice of any such redemption (with prompt written notice thereof to the
Rights Agent); provided, however, that the failure to give, or any defect in, any such notice shall
not affect the legality or validity of such redemption. Within 10 days after such action of the
Board of Directors so ordering the redemption of the Rights, the Company shall mail a notice of
redemption to all the holders of the then outstanding Rights at their last addresses as they appear
upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry
books of the transfer agent for the Common Shares. Any notice which is mailed in the manner herein
provided shall be deemed given, whether or not the holder receives the notice. Each such notice of
redemption will state the method by which the payment of the Redemption Price will be made.
Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for
value any Rights at any time in any manner other than that specifically set forth in this Section
23 or in Section 24 hereof, and other than in connection with the purchase of Common Shares prior
to the Distribution Date.

53

 

          Section 24. Exchange.

          (a) The Board of Directors of the Company may, at its option, at any time after any Person
becomes an Acquiring Person, exchange all or part of the then outstanding and exercisable Rights
(which shall not include Rights that have become null and void pursuant to Section 11(a)(ii)
hereof) for Common Shares at a ratio of one Common Share per Right, appropriately adjusted to
reflect any stock split, stock dividend or similar transaction occurring after the date hereof
(such exchange ratio being hereinafter referred to as the “Exchange Ratio”).

          (b) Immediately upon the action of the Board of Directors of the Company ordering the exchange
of any Rights pursuant to subsection (a) of this Section 24 and without any further action by any
Person and without any notice, the right to exercise such Rights shall terminate and the only right
thereafter of the holders of such Rights shall be to receive that number of Common Shares equal to
the number of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall
promptly give public notice of any such exchange (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 legality or validity of such exchange. The Company promptly shall mail a notice of any such
exchange to all the holders of such Rights at their last addresses as they appear upon the registry
books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be
deemed given, whether or not the holder receives the notice. Each such notice of exchange will
state the method by which the exchange of the Common Shares for Rights will be effected and, in the
event of any partial exchange, the number of Rights that will be exchanged. Any partial exchange
shall be effected pro rata based

54

 

on the number of Rights (other than Rights which have become null and void pursuant to the
provisions of Section 11(a)(ii) hereof) held by each holder of Rights.

          (c) In the event that there shall not be sufficient Common Shares issued but not outstanding
or authorized but unissued to permit any exchange of Rights as contemplated in accordance with this
Section 24, the Company shall take all such action as may be necessary to authorize additional
Common Shares for issuance upon exchange of the Rights or uniformly substitute, for all or a
portion of the Common Shares that would otherwise be issuable upon exercise of a Right, cash or
other debt or equity securities of the Company or fractions thereof (including without limitation
Preferred Shares) that have an aggregate value equal to the per share market price of one Common
Share as of the date of issuance of such securities or fraction thereof.

          (d) The Company shall not be required to issue fractions of Common Shares (or other
securities) or to distribute certificates which evidence fractional Common Shares (or other
securities). If it elects, in its sole discretion, in lieu of such fractional Common Shares (or
other securities), the Company may pay to the registered holders of the Rights with regard to which
such fractional Common Shares (or other securities) would otherwise be issuable an amount in cash
equal to the same fraction of the current market value of a whole Common Share (or other security).
For the purposes of this subsection (d), the current market value of a whole Common Share shall be
the closing price of a Common Share (as determined pursuant to the second sentence of
Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of exchange pursuant to
this Section 24.

55

 

          Section 25. Notice of Certain Events.

          (a) After the Distribution Date, in case the Company shall propose (i) to pay any dividend
payable in stock of any class to the holders of its Preferred Shares or to make any other
distribution to the holders of its Preferred Shares (other than a regular quarterly cash dividend),
(ii) to offer to the holders of its Preferred Shares rights, options, or warrants to subscribe for
or to purchase any additional Preferred Shares or shares of stock of any class or any other
securities, rights, options, or warrants, (iii) to effect any reclassification of Preferred Shares
(other than a reclassification involving only the subdivision of outstanding Preferred Shares),
(iv) to effect any consolidation or merger into or with, or to effect any sale, disposition or
other transfer (or to permit one or more of its Subsidiaries to effect any sale, disposition 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 a Subsidiary of
the Company in a transaction that complies with Section 11(p) hereof), (v) to effect the
liquidation, dissolution or winding up of the Company, or (vi) to declare or pay any dividend on
the Common Shares payable in Common Shares or to effect a subdivision, combination or consolidation
of the Common Shares (by reclassification or otherwise than by payment of dividends in Common
Shares), then, in each such case, the Company shall give to the Rights Agent and to each holder of
a Right Certificate, in accordance with Section 26 hereof, a notice of such proposed action, which
shall specify the record date for the purposes of such stock dividend, or distribution of rights,
options or warrants, or the date on which such reclassification, consolidation, merger, sale,
disposition, transfer, liquidation, dissolution, or winding up is to take place and the date of
participation therein by the holders of the Common Shares and/or Preferred Shares, if any such date
is to be fixed, and such notice shall be so given in the case of any action

56

 

covered by clause (i) or (ii) above at least 10 days prior to the record date for
determining holders of the Preferred Shares for purposes of such action, and in the case of any
such other action, at least 10 days prior to the date of the taking of such proposed action or the
date of participation therein by the holders of the Common Shares and/or Preferred Shares,
whichever shall be the earlier.

          (b) In case the event set forth in Section 11(a)(ii) hereof or the first sentence of Section
13(a) hereof shall occur, then 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 26 hereof, a
notice of the occurrence of such event, which notice shall describe such event and the consequences
of such event to holders of Rights under Section 11(a)(ii) hereof or the first sentence of Section
13(a) hereof, as applicable.

          Section 26. Notices. Notices or demands authorized by this Agreement to be given or
made by the Rights Agent or by the holder of any Right 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:

Emulex Corporation

3333 Susan Street

Costa Mesa, CA 92626

Attention: Secretary

Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement
to be given or made by the Company or by the holder of any Right 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:

57

 

Mellon Investor Services LLC

400 S. Hope Street, 4th Floor

Los Angeles, CA 90071

Attention: Mark Cano

     with a copy to:

Mellon Investor Services LLC

Newport Office Center VII

480 Washington Blvd.

Jersey City, New Jersey 07310

Attention: General Counsel

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 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 nothing shall require such notice be mailed if this Agreement
permits such notice to be given by a public announcement.

          Section 27. Supplements and Amendments.

          (a) This Agreement constitutes the entire agreement among the parties, superseding all oral
and written prior agreements and all oral contemporaneous agreements.

          (b) Notwithstanding the
foregoing, prior to the Close of Business on the tenth day following the Shares Acquisition Date,
and subject to extension by the Board of Directors by amendment hereof (unless a transaction
described in the first sentence in Section 13(a) shall earlier occur), the Company may, subject to
the penultimate sentence of this Section 27, in its sole and absolute discretion supplement or
amend any provision of this Agreement without the approval of any holders of Rights. Without
limiting the foregoing, the Company may at any time prior to such time as any Person becomes an
Acquiring Person amend this Agreement to lower the threshold set forth in Section 1(a) hereto from
15% to not less than the greater of (i) the sum
of .001% and the largest percentage of the outstanding Common Shares then known by the Company to
be Beneficially Owned by any Person (other than an Exempt Person) or (ii) 10%.

58

 

From and after the
Close of Business on the tenth day following the Shares Acquisition Date and subject to extension
by the Board of Directors by amendment hereof (or if earlier, upon consummation of a transaction
described in the first sentence of Section 13(a)), the Company may supplement and amend this
Agreement without the approval of any holders of Rights in order to cure any ambiguity, to correct
or supplement any provision contained herein which may be defective or inconsistent with any other
provision herein, or to make any other provisions in regard to matters or questions arising
hereunder which the Company may deem necessary or desirable and which shall be consistent with, and
for the purpose of fulfilling, the objectives of the Board of Directors in adopting this Agreement;
provided, however, that from and after the Close of Business on the tenth day following the Shares
Acquisition Date and subject to extension by the Board of Directors by amendment hereof (or if
earlier, upon consummation of a transaction described in the first sentence of Section 13(a)) this
Agreement shall not be amended in any manner which would materially and adversely affect the
interests of the holders of Rights (other than an Acquiring Person and its Associates and
Affiliates). Upon the delivery of a certificate from an appropriate officer of the Company that
states that the proposed supplement or amendment complies with this Section 27, the Rights Agent
shall execute such supplement or amendment. Notwithstanding anything contained in this Agreement
to the contrary, (i) no supplement or amendment shall be made that changes the Redemption Price,
the Final Expiration Date, the Purchase Price or the number of shares of Common Stock for which a
Right is exercisable without the approval of the Board of Directors of the Company; and (ii) 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. Prior to

59

 

the Distribution Date, the interests of the holders of Rights shall be deemed coincident with the
interests of the holders of Common Shares.

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

          Section 29. Determinations and Actions by the Board of Directors, etc. For all
purposes of this Agreement, any calculation of the number of Common Shares or any other class of
capital stock outstanding at any particular time, including for purposes of determining the
particular percentage of such outstanding shares of Common Shares of which any Person is the
Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the
General Rules and Regulations under the Exchange Act (or any successor thereto). The Board of
Directors of the Company shall have the exclusive power and authority to administer this Agreement
and to exercise all rights and powers specifically granted to the Board of Directors or 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 administration of this Agreement
(including a determination with respect to the redemption or exchange of the Rights, amendment of
the Agreement and determination of an Acquiring Person and its Associates and Affiliates). All
such actions, calculations, interpretations and determinations (including, for purpose of clause
(y) below, all omissions with respect to the foregoing) which are done or made by the Company’s
Board of Directors in good faith shall (x)
be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and
all other Persons, and (y) not subject any member of the Board of Directors of the Company to

60

 

any
liability to the holders of the Rights. The Rights Agent is entitled always to assume the
Company’s Board of Directors acted in good faith and shall be fully protected and incur no
liability in reliance thereon.

          Section 30. Benefits of this Agreement. Nothing in this Agreement shall be construed
to give to any Person other than the Company, the Rights Agent and the registered holders of the
Rights (and, prior to the Distribution Date, the Common Shares) 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 Rights (and, prior to
the Distribution Date, the Common Shares).

          Section 31. Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

          Section 32. Governing Law. This Agreement and each Right Certificate or other
evidence of issuance of Rights, if the Rights are uncertificated, issued hereunder shall be deemed
to be a contract made under the laws of the State of Delaware and for all purposes shall be
governed by and construed in accordance with the laws of such State applicable to contracts to be
made and performed entirely within such State, provided, however, that all provisions regarding the
rights, duties and obligations of the Rights
Agent shall be governed by and construed in accordance with the laws of the State of New York
applicable to contracts made and to be performed entirely within such state.

61

 

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

          Section 34. Headings. 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.

[Signatures On Next Page]

62

 

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

	 	 	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	EMULEX CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ Michael J. Rockenbach
 

	 	 	 	By
	 	/s/ James McCluney
 

	 	 
	Name:

	 	Michael J. Rockenbach
	 	 	 	Name:
	 	James McCluney	 	 
	Title:

	 	Chief Financial Officer and 

Executive Vice President
	 	 	 	Title:
	 	President and Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	MELLON INVESTOR SERVICES LLC, as Rights Agent	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ James Kirkland
 

	 	 	 	By
	 	/s/ Mark Cano
 

	 	 
	Name:

	 	James Kirkland
	 	 	 	Name:
	 	Mark Cano	 	 
	Title:

	 	Relationship Manager
	 	 	 	Title:
	 	Relationship Manager	 	 

63

 

Exhibit A

FORM

of

AMENDMENT TO CERTIFICATE OF DESIGNATIONS,

PREFERENCES AND RIGHTS

OF

SERIES A JUNIOR

PARTICIPATING PREFERRED STOCK

OF

EMULEX CORPORATION

A-1

 

FORM

of

AMENDMENT

TO

CERTIFICATE OF DESIGNATIONS

OF

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

(Par Value $0.01 Per Share)

OF

EMULEX CORPORATION

Pursuant to Section 151 of the General Corporation Law

of the State of Delaware

     The undersigned, James McCluney, the Chief Executive Officer of EMULEX CORPORATION, a Delaware
corporation (the “Corporation”), does hereby certify that:

     1. The original Certificate of Designation, Preferences and Rights of Series A Preferred Stock
of the Corporation (the “Original Series A Certificate”) was filed with the Delaware Secretary of
State on January 24, 1989.

     2. No shares of Series A Junior Participating Preferred Stock of the Corporation have been
issued.

     3. Pursuant to the authority conferred upon the Board of Directors of the Corporation (the
“Board of Directors”) by the Certificate of Incorporation of the Corporation, as amended (the
“Certificate of Incorporation”), and in accordance with the provisions of Section 151 of the
General Corporation Law of the State of Delaware, as amended, the Board of Directors, on January
14, 2009, adopted the following resolution amending and restating the Original Series A Certificate
in its entirety:

     RESOLVED, that (1) pursuant to the authority conferred upon the Board of Directors of the
Corporation by the Certificate of Incorporation, the Board of Directors hereby designates
150,000 shares of the preferred stock, par value $.01 per share, of the Corporation as “Series A
Junior Participating Preferred Stock” (the “Preferred Shares”), with the powers, designations,
preferences and relative, participating, optional and other rights of the Preferred Shares and the
qualifications, limitations and restrictions as set forth below, and (2) in connection therewith,
the officers of the Corporation be, and each of them hereby is, authorized, empowered and directed
on behalf of the Corporation and in its name to execute and file an amendment to the Original
Series A Certificate with the Delaware Secretary of State (the “Certificate of Designations”):

A-2

 

     Section 1. Designation and Amount. The shares of such series shall be designated as
“Series A Junior Participating Preferred Stock” (the “Series A Preferred Stock”) and the number of
shares constituting such series shall be one hundred fifty thousand (150,000). Such number of
shares may be increased or decreased by resolution of the Board of Directors; provided,
however, that no decrease shall reduce the number of shares of Series A Preferred Stock to
a number less than the number of shares then outstanding plus the number of shares reserved for
issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any
outstanding securities issued by the Corporation convertible into Series A Preferred Stock.

     Section 2. Dividends and Distributions.

          (A) Subject to the prior and superior rights of the holders of any shares of any series of
preferred stock of the Corporation (“Preferred Stock”) ranking prior and superior to the shares of
Series A Preferred Stock with respect to dividends, the holders of shares of Series A Preferred
Stock shall be entitled to receive, when, as and if declared by the Board of Directors out of funds
legally available for the purpose, dividends payable twice annually in cash, on the 15th day in
each of January and July of each year (each such date being referred to herein as a “Semi-Annual
Dividend Payment Date”), commencing on the first Semi-Annual Dividend Payment Date after the first
issuance of a share or fraction of a share of Series A Preferred Stock, in an amount per share
(rounded to the nearest cent) equal to the greater of (a) $0.50 ($1.00 per annum) 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
(as defined below) or a subdivision of the outstanding shares of Common Stock (by reclassification
or otherwise)), declared on the common stock, par value $0.10 per share, of the Corporation (the
“Common Stock”) since the immediately preceding Semi-Annual Dividend Payment Date, or, with respect
to the first Semi-Annual Dividend Payment Date, since the first issuance of any share or fraction
of a share of Series A Preferred Stock. In the event the Corporation shall at any time following
January 24, 2009 (i) declare any dividend on Common Stock payable in shares of Common Stock,
(ii) subdivide the outstanding Common Stock or (iii) combine the outstanding Common Stock into a
smaller number of shares, then in each such case the amount to which holders of shares of Series A
Preferred Stock were entitled immediately prior to such event under clause (b) of the preceding
sentence shall be adjusted by multiplying each such amount by a fraction, the numerator of which is
the number of shares of Common Stock outstanding immediately after such event, and the denominator
of which is the number of shares of Common Stock that were outstanding immediately prior to such
event.

          (B) The Corporation shall declare a dividend or distribution on the Series A Preferred Stock
as provided in paragraph (A) above immediately after it declares a dividend or distribution on the
Common Stock (other than a dividend payable in shares of Common Stock); provided that, in the event
no dividend or distribution shall have been declared on the Common Stock during the period between
any Semi-Annual Dividend Payment Date and the next subsequent Semi-Annual Dividend Payment Date, a
dividend of $0.50 per share on the Series A Preferred Stock shall nevertheless be payable on such
subsequent Semi-Annual Dividend Payment Date.

A-3

 

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

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

          (A) Subject to the provision for adjustment hereinafter set forth, each share of Series A
Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote
of the stockholders of the Corporation. In the event the Corporation shall at any time following
January 24, 2009 (i) declare any dividend on Common Stock payable in shares of Common Stock,
(ii) subdivide the outstanding shares of Common Stock or (iii) combine the outstanding Common Stock
into a smaller number of shares, then in each such case the number of votes per share to which
holders of shares of Series A Preferred Stock were entitled immediately prior to such event shall
be adjusted by multiplying such number by a fraction, the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to such event.

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

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

A-4

 

     Section 4. Certain Restrictions.

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

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

               (ii) declare or pay dividends on or make any other distributions on any shares of stock
ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with
the Series A Preferred Stock, except dividends paid or distributions made ratably on the Series A
Preferred Stock and all such stock ranking on a parity with respect to the particular dividend or
distribution 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 A
Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise
acquire shares of any such junior stock (1) in exchange for shares of any stock of the Corporation
ranking junior (both as to dividends and upon dissolution, liquidation and winding up) to the
Series A Preferred Stock or (2) from employees of the Corporation or its Subsidiaries issued
pursuant to the Corporation’s Stock Plans and purchased pursuant to the terms of the documents
granting to such employees such junior stock; or

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

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

     Section 5. Reacquired Shares. Any shares of Series A Preferred Stock purchased or
otherwise acquired by the Corporation in any manner whatsoever shall be retired and cancelled
promptly after the acquisition thereof. The Corporation shall take all such action as is necessary
to cause all such shares to become authorized but unissued shares of Preferred Stock, which

A-5

 

shares may be reissued as part of a new series of Preferred Stock to be created by resolution
or resolutions of the Board of Directors, subject to the conditions and restrictions on issuance
set forth herein.

     Section 6. Liquidation, Dissolution or Winding Up.

          (A) Upon any liquidation, dissolution or winding up of the Corporation, no distribution shall
be made to the holders of shares of stock ranking junior (either as to dividends or upon
liquidation, dissolution or winding up) to the Series A Preferred Stock unless, prior thereto, the
holders of shares of Series A Preferred Stock shall have received $1.00 per share, plus an amount
equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to the
date of such payment (the “Series A Liquidation Preference”). Following the payment of the full
amount of the Series A Liquidation Preference, no additional distributions shall be made to the
holders of shares of Series A Preferred Stock unless, prior thereto, the holders of shares of
Common Stock (which expression shall include, for the purpose only of this Section 6, any series of
the Corporation’s Preferred Stock ranking on a parity with the Common Stock upon liquidation,
dissolution or winding up) shall have received an amount per share (the “Common Stock Liquidation
Amount”) equal to the quotient obtained by dividing (i) the Series A Liquidation Preference by
(ii) 1,000 (such number in this clause (ii), as it may be adjusted in accordance with paragraph (C)
below, the “Liquidation Factor”). Following the payment of the full amount of the Series A
Liquidation Preference and the Common Stock Liquidation Amount in respect of all outstanding shares
of Series A Preferred Stock and Common Stock, respectively, holders of Series A Preferred Stock and
holders of Common Stock shall receive their ratable and proportionate share of the remaining assets
to be distributed in the ratio, on a per share basis, of the Liquidation Factor to one with respect
to each share of Series A Preferred Stock and with respect to each share of Common Stock.

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

          (C) In the event the Corporation shall at any time following January 24, 2009 (i) declare any
dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding shares
of Common Stock or (iii) combine the outstanding Common Stock into a smaller number of shares, then
in each such case the Liquidation Factor in effect immediately prior to such event shall be
adjusted by multiplying such Liquidation Factor 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 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 the shares of Series A Preferred Stock shall at the same time be similarly

A-6

 

exchanged or changed in an amount per share (subject to the provision for adjustment
hereinafter set forth) equal to 1,000 times the aggregate amount of stock, securities, cash and/or
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 following
January 24, 2009 (i) declare any dividend on Common Stock payable in shares of Common Stock,
(ii) subdivide the outstanding shares of Common Stock, or (iii) combine the outstanding Common
Stock into a smaller number of shares, then in each such case the amount set forth in the preceding
sentence with respect to the exchange or change of shares of Series A Preferred Stock shall be
adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares
of Common Stock outstanding immediately after such event and the denominator of which is the number
of shares of Common Stock that were outstanding immediately prior to such event.

     Section 8. Ranking. The Series A Preferred Stock shall rank junior to all other
series of Preferred Stock as to the payment of dividends and the distribution of assets, unless the
terms of any such series shall provide otherwise. Nothing in this resolution shall limit the power
of the Board of Directors to create new series of preferred stock ranking senior to the Series A
Preferred Stock in any respect.

     Section 9. Amendment. This Certificate of Designations shall not be amended in any
manner which would materially alter or change the powers, preferences or special rights of the
Series A Preferred Stock so as to affect them adversely without the affirmative vote of the holders
of two-thirds or more of the outstanding shares of Series A Preferred Stock, voting separately as a
single class.

     Section 10. No Redemption. The shares of Series A Preferred Stock shall not be
redeemable.

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

A-7

 

     IN WITNESS WHEREOF, Emulex Corporation has caused this Amendment to Certificate of
Designations to be executed on its behalf by its Chief Executive Officer, this 20th day of January, 2009.

	 	 	 	 	 
	 

	 	 

James McCluney, Chief Executive Officer
	 	 

A-8

 

Exhibit B

[Form of Right Certificate]

			
	Certificate No. R-
	 	                     Rights

NOT EXERCISABLE AFTER JANUARY 24, 2012 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS. THE
RIGHTS ARE SUBJECT TO REDEMPTION AT $.01 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN
THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES (SPECIFIED IN SECTION 11(a)(ii) OF THE
RIGHTS AGREEMENT (AS DEFINED BELOW)), RIGHTS BENEFICIALLY OWNED BY OR TRANSFERRED TO AN
ACQUIRING PERSON (AS DEFINED IN THE RIGHTS AGREEMENT), OR ANY SUBSEQUENT HOLDER OF SUCH
RIGHTS WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE

RIGHT CERTIFICATE

EMULEX CORPORATION

     This certifies that                     , or its 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 January 15, 2009 (as amended
from time-to-time, the “Rights Agreement”), between Emulex Corporation, a Delaware corporation (the
“Company”), and Mellon Investor Services LLC, a New Jersey limited liability company, as Rights
Agent (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date
(as such term is defined in the Rights Agreement) and prior to 5:00 P.M., New York time, on January
24, 2012, at the office of the Rights Agent, or at the office of its successor as Rights Agent, one
one-thousandth of a fully paid non-assessable share of Series A Participating Preferred Stock,
$0.01 par value per share, of the Company (the “Preferred Shares”), at a purchase price of $35.00
per one one-thousandth of a Preferred Share (the “Purchase Price”), upon presentation and surrender
of this Right Certificate with the Form of Election to Purchase duly executed, with signature
guaranteed. The number of Rights evidenced by this Right Certificate (and the number of one
one-thousandths of a Preferred Share which may be purchased upon exercise hereof) set forth above,
and the Purchase Price set forth above, are the number and Purchase Price as of January 24, 2009,
based on the Preferred Shares as constituted at such date. As provided in the Rights Agreement,
the Purchase Price and the number of one one-thousandths of a Preferred Share or other securities
or property which may be purchased upon the exercise of the Rights evidenced by this Right
Certificate are subject to modification and adjustment upon the occurrence of certain events.

     The Rights Agreement contains a full description of the rights, limitations of rights,
obligations, duties and immunities of the Rights Agent, the Company and the holders of Rights.
This Right Certificate is subject to all of the terms, conditions, covenants and restrictions of
the Rights Agreement, which terms, covenants and restrictions are hereby incorporated herein by
reference and made a part hereof. Copies of the Rights Agreement are on file at the principal
executive offices of the Company.

B-1

 

     This Right Certificate, with or without other Right Certificates, upon surrender at the office
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 Preferred Shares as the Rights represented by the Right Certificate or Right
Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate
shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another
Right Certificate or Right Certificates for the number of whole Rights not exercised.

     Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate
(i) may be redeemed by the Company at a redemption price of $.01 per Right or (ii) may be exchanged
in whole or in part for Preferred Shares or shares of the Company’s Common Stock, par value
$0.10 per share or other securities or assets of the Company.

     No fractional Preferred Shares are required to be issued upon the exercise of any Right or
Rights evidenced hereby (other than fractions which are integral multiples of one one-thousandth of
a Preferred Share, which may, at the election of the Company, be represented by depositary
receipts), but in the sole discretion of the Company, in lieu thereof a cash payment may be made,
as provided in the Rights Agreement.

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

     Capitalized terms used in this Right Certificate without definition shall have the meanings
ascribed to them in the Rights Agreement.

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

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

B-2

 

Dated as of                                         .

	 	 	 	 	 
	ATTEST:

	 	EMULEX CORPORATION
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	Name:

	 	Name:	 	 
	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

any or all of the Rights represented by this Right Certificate.)

FOR VALUE RECEIVED, the undersigned, hereby sells, assigns and transfers unto

 

(Please print name and address of transferee)

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

	 	 	 
	Dated:
	 	 
	 

	 	 
	 

	 	Signature
	 
	 	 
	Signature Guaranteed:
	 	 

     Signatures must be guaranteed by a participant in the Securities Transfer Agent Medallion
Program, the Stock Exchanges Medallion Program or the New York Stock Exchange, Inc. Medallion
Signature Program.

 

     The undersigned hereby certifies by checking the appropriate boxes that:

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

     (2) after due inquiry and to the best knowledge of the undersigned, it [ ] did [ ] 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 or is, was or subsequently became a
nominee of any such Person.

	 	 	 
	Dated:

	 	                                         Signature

B-4

 

FORM OF ELECTION TO PURCHASE

(To be executed by the registered holder if such holder

desires to exercise Rights represented by the Right Certificate.)

TO: EMULEX CORPORATION

     The undersigned hereby irrevocably elects to exercise       Rights represented by this
Right Certificate to purchase the Preferred Shares (or other securities or property of the Company
or of any other Person that may be issuable upon exercise of the Rights) issuable upon the exercise
of such Rights and requests that certificates for such Preferred Shares or other securities (or
property, if applicable) be issued in the name of:

	 	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

(Please print name and address)
	 	 
	 
	 	 	 	 
	 

	 	Please insert social security	 	 
	 

	 	or other tax identifying number	 	 
	 
	 	 	 	 
	 
	 

	 	 

	 	 

If such number of Rights exercised 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 print name and address)
	 	 
	 
	 	 	 	 
	 

	 	Please insert social security	 	 
	 

	 	or other tax identifying number	 	 
	 
	 
	 	 	 	 
	 

	 	 

	 	 

	 	 	 
	Dated:

	 	                                         Signature

Signature Guaranteed:

     Signatures must be guaranteed by a participant in the Securities Transfer Agent Medallion
Program, the Stock Exchanges Medallion Program or the New York Stock Exchange, Inc. Medallion
Signature Program.

          The undersigned hereby certifies by checking the appropriate boxes that:

B-5

 

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

          (2) after due inquiry and to the best knowledge of the undersigned, it [ ] did [ ] 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 of an Acquiring Person or is, was or
subsequently became a nominee of any such Person.

	 	 	 
	Dated:                                         

	 	                                         Signature

NOTICE

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

     In the event the certification set forth above in the Form of Assignment or the Form of
Election to Purchase, as the case may be, is not completed, the Company and the Rights Agent will
deem the beneficial owner of the Rights evidenced by this Right Certificate to be an Acquiring
Person or an Affiliate or Associate thereof (as defined in the Rights Agreement) and such
Assignment or Election to Purchase will not be honored and the Right Certificate shall be
cancelled.

B-6

 

Exhibit C

SUMMARY OF RIGHTS TO PURCHASE PREFERRED SHARES

     On January 14, 2009, the Board of Directors of Emulex Corporation (the “Company”) authorized
and declared a dividend of one preferred stock purchase right (a “Right”) for each share of common
stock, par value $0.10 per share, of the Company (the “Common Shares”). The dividend is payable on
January 24, 2009 (the “Record Date”) to the holders of record of Common Shares as of the close of
business on such date, and each Common Share that shall be issued by the Company at any time prior
to the Distribution Date (as hereafter defined) and each Common Share that shall be issued by the
Company at any time on or after the Distribution Date and prior to the earlier to occur of the
Redemption Date, the Exchange Date or the Final Expiration Date (each as defined herein) pursuant
to the exercise of conversion rights, exchange rights, rights (other than Rights), warrants or
options that shall have been granted or sold prior to the Distribution Date.

     The following is a brief description of the Rights. It is intended to provide a general
description only and is subject to the detailed terms and conditions of the Rights Agreement (as
amended from time-to-time, the “Rights Agreement”) dated as of January 15, 2009, by and between the
Company and Mellon Investor Services LLC, as Rights Agent (the “Rights Agent”).

1. Common Share Certificates Representing Rights

     Until the Distribution Date:

	 	•	 	the Rights shall not be exercisable;
	 
	 	•	 	the Rights will be evidenced by the certificates for Common Shares and not by
separate rights certificates;
	 
	 	•	 	the registered holders of Common Shares shall also be the registered holders of
the Rights issued with respect thereto; and
	 
	 	•	 	the Rights will be transferable by, and only in connection with, the transfer of
the Common Shares.

     Common Share certificates issued after the Record Date and prior to the Distribution Date
shall contain a notation incorporating the Rights Agreement by reference.

2. Distribution Date

     The “Distribution Date” is the earliest of:

	 	•	 	the close of business on the tenth business day following the first date of
public announcement that any person, together with such person’s associates and
affiliates (other than the Company or certain related entities) has become the
beneficial owner of 15% or more of the then outstanding Common Shares (such

C-1 

 

	 	 	 	person is an “Acquiring Person”) or such earlier date that a majority of the
directors of the Company shall have become aware of the existence of an Acquiring
Person (such date is the “Shares Acquisition Date”);
	 
	 	•	 	the close of business on the tenth business day (or such later day as may be
determined by the Board of Directors of the Company) after the date of the
commencement by any person (other than an exempt person) of, or after the first
public announcement of an intention of any person (other than an exempt person) to
commence a tender offer or exchange offer, the consummation of which would cause
any person becoming an Acquiring Person; and
	 
	 	•	 	the occurrence of a transaction described in Section 5(c) below.

     In calculating the percentage of outstanding Common Shares that are beneficially owned by any
person, such person shall be deemed to beneficially own any Common Shares issuable upon the
exercise of conversion rights, exchange rights, rights (other than the Rights), warrants or
options; provided, however, that such Common Shares issuable upon such exercise shall not be deemed
outstanding for the purpose of calculating the percentage of Common Shares that are beneficially
owned by any other person.

     Upon the close of business of the Distribution Date, the Rights shall separate from the Common
Shares, Right certificates shall be issued and the Rights shall become exercisable to purchase
Preferred Shares as described in Section 5 below.

     No person who is the Beneficial Owner of 15% or more of the outstanding Common Shares as a
result of an acquisition of Common Shares directly from the Company shall be deemed an Acquiring
Person.

3. Issuance of Right Certificates

     As soon as practicable following the Distribution Date, separate certificates representing
only Rights shall be mailed to the holders of record of Common Shares as of the close of business
on the Distribution Date, and such separate Right certificates alone shall represent such Rights
from and after the Distribution Date.

4. Expiration of Rights

     The Rights shall expire on January 24, 2012 (the “Expiration Date”), unless earlier redeemed
or exchanged.

5. Exercise of Rights

     After the Distribution Date, unless the Rights have expired or been redeemed or exchanged,
they may be exercised, at the option of the holders, pursuant to paragraphs (a), (b) or (c) below
(other than an Acquiring Person, or any of its affiliates or associates, whose Rights will become
void). No Right may be exercised more than once or pursuant to more than one of such paragraphs.

C-2 

 

          (a) Right to Purchase Preferred Shares. From and after the close of business on the
Distribution Date, each Right (other than a Right that has become void) shall be exercisable to
purchase one one-thousandth (1/1,000) of a share of Series A Junior
Participating Preferred Stock, par value $.01 per share, of the Company (the “Preferred Shares”),
at a purchase price of Thirty Five Dollars ($35.00) (the “Purchase Price”). The Preferred Shares
are nonredeemable and, unless otherwise provided in connection with the creation of a subsequent
series of preferred stock, are subordinate to any other series of the Company’s preferred stock
whether issued before or after the issuance of the Preferred Shares. The holder of a Preferred
Share is entitled to receive when, as and if declared, the greater of (i) cash and non-cash
dividends in an amount equal to 1,000 times the dividends declared on each Common Share or (ii) a
preferential semi-annual dividend of $0.50 per Preferred Share ($.0005 per one one-thousandth
(1/1,000) of a Preferred Share). In the event of liquidation,
dissolution or winding up of the Company, the holders of Preferred Shares shall be entitled to
receive a liquidation payment in an amount equal to $1.00 per Preferred Share ($.001 per one
one-thousandth (1/1,000) of a Preferred Share), plus all accrued and
unpaid dividends and distributions on the Preferred Shares. Each Preferred Share has one thousand
(1,000) votes per share (one vote per one one-thousandth (1/1,000) of a
Preferred Share), voting together with the Common Shares. In the event of any merger,
consolidation or other transaction in which Common Shares are exchanged, the holder of a Preferred
Share shall be entitled to receive 1,000 times the amount received per Common Share. The rights of
the Preferred Shares as to dividends, voting and liquidation preferences are protected by
antidilution provisions. It is anticipated that the value of one one-thousandth
(1/1,000) of a Preferred Share should approximate the value of one
Common Share.

          (b) Right to Purchase Common Shares. In the event that any person becomes an
Acquiring Person, and the Redemption Date, the Exchange Date or the Final Expiration Date shall not
have occurred within ten business days thereafter, each Right (other than a Right that has become
void) shall be exercisable to purchase, at the Purchase Price, Common Shares with a market value
equal to two times the Purchase Price. If the Company does not have sufficient Common Shares
available for all Rights to be exercised, the Company shall take all actions necessary to authorize
additional Common Shares or substitute for all or any portion of the Common Shares that would
otherwise be issuable upon the exercise of the Rights, cash, assets or other securities having the
same aggregate value as such Common Shares.

          (c) Right to Purchase Common Stock of a Successor Corporation. If, on or after a
person becomes an Acquiring Person:

	 	•	 	the Company shall consolidate with, or merge with or into, any other person
(other than a subsidiary of the Company) and the Company shall not be the
continuing or surviving corporation;
	 
	 	•	 	any person (other than a subsidiary of the Company) shall consolidate with,
or merge with and into, the Company and the Company shall be the continuing or
surviving corporation, and, in connection therewith, all or part of the Common
Shares shall be changed into or exchanged for stock or other securities of any
other person (or the Company) or cash or any other property; or

C-3 

 

	 	•	 	the Company shall sell, dispose of or otherwise transfer (or the Company and
one or more of its subsidiaries shall sell, dispose of 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 person other than the Company or one or more of its wholly-owned
subsidiaries,

then in each case, each Right (other than a Right that has become void) shall thereafter
have the right to receive, upon the be exercise thereof, at the Purchase Price, in lieu
of Preferred Shares or other securities or assets of the Company, equity securities of
the surviving corporation or purchaser (the “Surviving Person”), with an aggregate
market value equal to two times the Purchase Price.

6. Adjustments to Prevent Dilution

     The Purchase Price, the number of outstanding Rights and the number of Preferred Shares or
Common Shares or other assets issuable upon exercise of the Rights are subject to adjustment from
time to time as set forth in the Rights Agreement in order to prevent dilution. With certain
exceptions, no adjustment in the Purchase Price shall be required until cumulative adjustments
require an adjustment of at least 1% in the Purchase Price.

7. Cash Paid Instead of Issuing Fractional Securities

     No fractional securities are required to be issued upon exercise of a Right (other than
fractions of Preferred Shares that are integral multiples of one one-thousandth of a Preferred
Share and that may, at the election of the Company, be evidenced by depositary receipts) and in
lieu thereof, at the Company’s election, an adjustment in cash may be made based on the market
price of such securities on the last trading date prior to the date of exercise.

8. Redemption

     At any time prior to the earlier of the tenth business day following the Share Acquisition
Date, the Board of Directors may, at its option, redeem the Rights in whole, but not in part, at a
price of $0.01 per Right, subject to adjustment (the “Redemption Price”). Immediately upon such
action by the Board of Directors (the date of such action being the “Redemption Date”), the only
right of the holders of Rights thereafter shall be to receive the Redemption Price.

9. Exchange

     At any time after a person becomes an Acquiring Person, the Board of Directors of the Company
may, at its option, exchange all or part of the then outstanding Rights for Common Shares (or
Common Share equivalents) at a ratio of one Common Share per Right, subject to adjustment.
Immediately upon such action by the Board of Directors, the right to exercise Rights shall
terminate and the only right of the holders of Rights thereafter shall be to receive the Common
Shares, or Common Share equivalents, so designated by the Board of Directors in accordance with the
Exchange Ratio.

C-4 

 

10. No Stockholder Rights Prior to Exercise

     Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder
of the Company (other than rights resulting from such holder’s ownership of Common Shares),
including, without limitation, the right to vote or to receive dividends.

11. Amendment of Rights Agreement

     The Board of Directors may, from time to time, without the approval of any holder of Rights,
direct the Company and the Rights Agent to supplement or amend any provision of the Rights
Agreement in any manner, whether or not such supplement or amendment is adverse to any holder of
Rights, and the Company and the Rights Agent shall so supplement or amend such provision; provided,
however, that from and after the close of business on the tenth day following the date a person
becomes an Acquiring Person (and subject to extension by the Board of Directors of the Company, or
if earlier, upon consummation of a transaction described in Section 5(c) above), the Rights
Agreement cannot be amended in any manner that would materially and adversely affect the interests
of any holder of outstanding Rights other than an Acquiring Person and its associates and
affiliates.

C-5

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