Document:

exhibit10_1.htm

Exhibit 10.1

    ELEVENTH AMENDMENT TO CREDIT
AGREEMENT

    

    

    THE STEAK N SHAKE COMPANY, an
Indiana corporation (the “Company”) and FIFTH THIRD BANK, a Michigan
banking corporation, formerly known as Fifth Third Bank (Central Indiana) and as
Fifth Third Bank, Indiana (Central) (the “Bank”), being parties to that certain
Credit Agreement dated as of November 16, 2001, as previously amended
(collectively, the “Agreement”), agree to further amend the Agreement by this
Eleventh Amendment to Credit Agreement (this “Amendment”) as
follows.

    

    

    1.           DEFINITIONS.  All
defined terms used herein not otherwise defined in this Amendment shall have
their respective meanings set forth in the Agreement.  In addition,
the following new definition is hereby added to Section 1 of the Agreement as
follows:

    

    
      	
               
      

            	
              jjj.

            	
              “Eleventh
      Amendment” means that certain agreement entitled “Eleventh
      Amendment to Credit Agreement” entered into by and between the Company and
      the Bank dated as of July 8, 2009, for the purpose of amending this
      Agreement.

            

    

    

    2.           PERMITTED
INVESTMENTS.  Section 6(e) of the Agreement is hereby amended
and restated in its entirety as follows:

    

    
      	
               
      

            	
              e.

            	
              Mergers,
      Consolidations, Sales, Acquisition or Formation of
      Subsidiaries.  Except as hereinafter provided, the
      Company shall not be a party to any consolidation or merger and shall not
      purchase the capital stock of or otherwise acquire any equity interest in
      any other business entity.  The Company shall not acquire any
      material part of the assets of any other business entity, except in the
      ordinary course of business.  The Company shall not sell,
      transfer, convey or lease all or any material part of its assets, except
      in the ordinary course of business, or sell or assign with or without
      recourse any receivables.  The Company shall not cause to be
      created or otherwise acquire any Subsidiaries other than those
      Subsidiaries in existence as of the date
      hereof.  Notwithstanding anything to the contrary stated herein,
      the Company may use up to Ten Million Dollars ($10,000,000.00) of surplus
      cash, determined in the aggregate, and only surplus cash and not the
      proceeds of the Loan, to make investments of any lawful nature, including
      but not limited to investments of marketable securities, investments in
      bonds or stocks of unlisted companies, share repurchases of the Company’s
      stock, investments in real estate, the repurchase of any or all of the
      Company’s stores formerly sold through sale/leaseback transactions, and
      for any other investment as the Board of Directors of the Company may
      approve, provided no Event of Default or Unmatured Event of Default exists
      at the time of the making of such investment or would result
      therefrom.

            

    

      3.           REPRESENTATIONS
AND WARRANTIES.  In order to induce the Bank to enter into this
Amendment, the Company affirms that the representations and warranties contained
in the Agreement are correct as of the date of this Amendment, except that (i)
they shall be deemed to also refer to this Amendment as well as all documents
named herein and, (ii)  Section 3(d)  of  the
Agreement  shall be deemed also to refer to the most recent audited
and unaudited financial statements of the Company delivered to the
Bank.  The Company further represents and warrants that there are
presently no liens on any assets of the Company, whether real or personal, other
than the liens on the personal property assets of the Company granted to the
Bank.

    

    4.           EVENTS OF
DEFAULT.  The Company certifies to the Bank that no Event of
Default or Unmatured Event of Default under the Agreement, as amended by this
Amendment, has occurred and is continuing as of the date of this Amendment,
except as are waived herein.

    

    

    5.           CONDITIONS
PRECEDENT.  As conditions precedent to the effectiveness of
this Amendment, the Bank shall have received the following contemporaneously
with execution and delivery of this Amendment, each duly executed, dated and in
form and substance satisfactory to the Bank:

    

    
      	
               
      

            	
              (i)

            	
              This
      Amendment duly executed by the
Company.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              The
      Reaffirmation of Guaranty Agreement in the form attached hereto as Exhibit "A"
      duly executed by Steak n Shake Operations,
Inc.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              The
      Reaffirmation of Guaranty Agreement in the form attached hereto as Exhibit "B"
      duly executed by Steak n Shake Enterprises,
Inc.

            

    

    

    
      	
               
      

            	
              (iv)

            	
              The
      Reaffirmation of Guaranty Agreement in the form attached hereto as Exhibit "C"
      duly executed by SnS Investment
Company.

            

    

    

    
      	
               
      

            	
              (v)

            	
              Resolutions
      of the Board of Directors of the Company authorizing the execution,
      delivery and performance, respectively, of this Amendment and all other
      Loan Documents provided for in this Amendment to which the Company is a
      party, certified by the Secretary of the Board of Directors of the Company
      as being in full force and effect and duly adopted as of the date
      hereof.

            

    

    

    
      	
               
      

            	
               (vi)

            	
              The
      Certificate of the Secretary of the Board of Directors of the Company
      certifying the names of the officer or officers authorized to execute this
      Amendment and all other Loan Documents provided for in this Amendment to
      which the Company is a party, together with a sample of the true signature
      of each such officer, dated as of the date of this
    Amendment.

            

    

    

    
      	
               
      

            	
              (vii)

            	
              Resolutions
      of the Board of Directors of Steak n Shake Operations, Inc., an Indiana
      corporation, authorizing the execution, delivery and performance,
      respectively, of its Reaffirmation of Guaranty Agreement and all other
      Loan Documents provided for in this Amendment to which Steak n Shake
      Operations, Inc.  is a party, certified by the Secretary of the
      Board of Directors of Steak n Shake Operations, Inc. as being in full
      force and effect and duly adopted as of the date
  hereof.

            

    

    

    
      	
                            
      (viii)

            	
              The
      Certificate of the Secretary of the Board of Directors of Steak n Shake
      Operations, Inc. certifying the names of the officer or officers
      authorized to execute its Reaffirmation of Guaranty Agreement and all
      other Loan Documents provided for in this Amendment to which Steak n Shake
      Operations, Inc. is a party, together with a sample of the true signature
      of each such officer, dated as of the date of this
    Amendment.

            

    

    

    
      	
               
      

            	
              (ix)

            	
              Resolutions
      of the Board of Directors of Steak n Shake Enterprises, Inc., an Indiana
      corporation, authorizing the execution, delivery and performance,
      respectively, of its Reaffirmation of Guaranty Agreement and all other
      Loan Documents provided for in this Amendment to which Steak n Shake
      Enterprises, Inc. is a party, certified by the Secretary of the Board of
      Directors of Steak n Shake Enterprises, Inc. as being in full force and
      effect and duly adopted as of the date
hereof.

            

    

    

    
      	
               
      

            	
               (x)

            	
              The
      Certificate of the Secretary of the Board of Directors of Steak n Shake
      Enterprises, Inc. certifying the names of the officer or officers
      authorized to execute its Reaffirmation of Guaranty Agreement and all
      other Loan Documents provided for in this Amendment to which Steak n Shake
      Enterprises, Inc. is a party, together with a sample of the true signature
      of each such officer, dated as of the date of this
    Amendment.

            

    

    

    
      	
               
      

            	
              (xi)

            	
              Resolutions
      of the Board of Directors of SnS Investment Company, an Indiana
      corporation, authorizing the execution, delivery and performance,
      respectively, of its Reaffirmation of Guaranty Agreement and all other
      Loan Documents provided for in this Amendment to which SnS Investment
      Company is a party, certified by the Secretary of the Board of Directors
      of SnS Investment Company as being in full force and effect and duly
      adopted as of the date hereof.

            

    

    

    
      	
               
      

            	
              (xii)

            	
              The
      Certificate of the Secretary of the Board of Directors of SnS Investment
      Company certifying the names of the officer or officers authorized to
      execute its Reaffirmation of Guaranty Agreement and all other Loan
      Documents provided for in this Amendment to which SnS Investment Company
      is a party, together with a sample of the true signature of each such
      officer, dated as of the date of this
Amendment.

            

    

    

    

    6.           PRIOR
AGREEMENTS.  The Agreement, as
amended by this Amendment, supersedes all previous agreements and commitments
made or issued by the Bank with respect to the Loans and all other subjects of
this Amendment, including, without limitation, any oral or written proposals
which may have been made or issued by the Bank.

    

    

    7.           EFFECT OF
AMENDMENT.  The provisions
contained herein shall serve to supplement and amend the provisions of the
Agreement.  To the extent that the terms of this Amendment conflict
with the terms of the Agreement, the provisions of this Amendment shall control
in all respects.

    

    

    8.           REAFFIRMATION.  Except
as expressly amended by this Amendment, all of the terms and conditions of the
Agreement shall remain in full force and effect as originally written and as
previously amended.

    

    

    9.           COUNTERPARTS.   This Amendment
may be executed in any number of counterparts, each of which shall be an
original and all of which when taken together shall be one and the same
agreement.

    

    IN WITNESS WHEREOF, the
Company and the Bank have executed and delivered in Indiana this Eleventh
Amendment Credit Agreement by their respective duly authorized officers as of
July 8, 2009.

    

    

      
        	
                 
      

              	
                THE STEAK N SHAKE
      COMPANY, an Indiana
corporation

              

      

      

      
        	
                 
      

              	
                By:

              	 	
                /s/ Sardar
      Biglari

              	 

      

      
        	
                 
      

              	
                Sardar
      Biglari, CEO and Chairman

              

      

      

      

      

      FIFTH THIRD BANK, a Michigan
banking corporation, formerly known as Fifth Third Bank (Central Indiana), and
Fifth Third Bank, Indiana (Central)

      

      

      
        	
                 
      

              	
                By:

              	
                 /s/ William J.
      Krummen____

              

      

      
        	
                 
      

              	
                William
      J. Krummen, Vice PresidentMGIC INVESTMENT
CORPORATION 

and 

WELLS FARGO BANK,
NATIONAL ASSOCIATION 

Rights Agent 

     _________________ 

AMENDED AND RESTATED
RIGHTS AGREEMENT 

Dated as of July
7, 2009 

TABLE OF CONTENTS 

	Section 1.	Certain Definitions	  1
	
Section 2.	Appointment of Rights Agent	  6
	
Section 3.	Issue of Right Certificates	  6
	
Section 4.	Form of Right Certificates	  7
	
Section 5.	Countersignature and Registration	  8
	
Section 6.	Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated,
		Destroyed, Lost or Stolen Right Certificates	  8
	
Section 7.	Exercise of Rights; Purchase Price; Expiration Date of Rights	9
	
Section 8.	Cancellation and Destruction of Right Certificates	10
	
Section 9.	Reservation and Availability of Common Shares	10
	
Section 10.	Common Shares Record Date	11
	
Section 11.	Adjustment of Purchase Price, Number of Shares or Number of Rights	12
	
Section 12.	Certificate of Adjusted Purchase Price or Number of Shares	18
	
Section 13.	[Reserved]	18
	
Section 14.	Fractional Rights and Fractional Shares	18
	
Section 15.	Rights of Action	19
	
Section 16.	Agreement of Right Holders	19
	
Section 17.	Right Certificate Holder Not Deemed a Shareholder	20
	
Section 18.	Concerning the Rights Agent	20
	
Section 19.	Merger or Consolidation or Change of Name of Rights Agent	21
	
Section 20.	Duties of Rights Agent	21
	
Section 21.	Change of Rights Agent	23
	
Section 22.	Issuance of New Right Certificates	24
	
Section 23.	Redemption	24

i 

	 	 	 
	Section 24.	Exchange	25
	
Section 25.	Notice of Certain Events	26
	
Section 26.	Notices	27
	
Section 27.	Supplements and Amendments	27
	
Section 28.	Successors	28
	
Section 29.	Benefits of this Agreement	28
	
Section 30.	Severability	28
	
Section 31.	Governing Law	28
	
Section 32.	Counterparts	28
	
Section 33.	Descriptive Headings; Interpretation	28
	
Section 34.	Determinations and Actions by the Board	28
	
Section 35.	Book-Entry	29
	
Section 36.	Amendment and Restatement	29

Exhibit A — Form of
Right Certificate 

Exhibit B — Summary
of Rights to Purchase Common Shares 

ii 

AMENDED AND RESTATED
RIGHTS AGREEMENT 

        THIS
AMENDED AND RESTATED AGREEMENT (“Agreement”), dated as of July 7, 2009,
between MGIC INVESTMENT CORPORATION, a Wisconsin corporation (the
“Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national
banking association (the “Rights Agent”), amends and restates that certain
Rights Agreement, dated as of July 22, 1999 (as amended by the first through third
amendments thereto, the “Original Rights Agreement”). 

        WHEREAS,
the Board of Directors of the Company authorized the Original Rights Agreement, declared a
dividend of one common share purchase right (a “Right”) for each Common Share
(as hereinafter defined) outstanding upon the close of business on August 9, 1999 (the
“Record Date”) payable on such date (the “Payment Date”), and
authorized the issuance of one Right for each Common Share issued between the Record Date
on the earliest of the Distribution Date, the Redemption Date and the Final Expiration
Date (as such terms are defined in the Original Rights Agreement), each Right representing
the right to purchase one-half of one Common Share, upon the terms and subject to the
conditions set forth in the Original Rights Agreement; and 

        WHEREAS,
if the Company experiences an “ownership change,” as defined in Section 382 of
the Internal Revenue Code of 1986, as amended (the “Code”), then its ability to
use its Tax Benefits (as hereinafter defined) for U.S. federal income tax purposes could
be substantially limited; and 

        WHEREAS,
the Company views its Tax Benefits as valuable assets of the Company, which are likely to
inure to the benefit of the Company and its shareholders, and the Company believes that is
in the best interest of the Company and its shareholders that the Company provide for the
protection of the Company’s Tax Benefits on the terms and conditions set forth
herein. 

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

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

        (a)              “Acquiring
Person” means any Person that is or has become, by itself           or together with
its Affiliates and Associates, a Beneficial Owner of 5.0% or           more of the Common
Shares then outstanding, but shall not include:  

	 	        (i)              any
Related Person;  

	 	        (ii)    
any  Grandfathered  Person,  provided that if the Percentage  Stock Ownership of any
Person that had qualified as a Grandfathered  Person  ceases to be at least 5.0%,  then
such Person shall not be deemed to be an Acquiring  Person until such later time (if any)
as the Percentage  Stock  Ownership of such Person is 5.0% or more, and then only if such
 Person  does  not  qualify  (A) for  the  exception  in  subsection  (iii)  of this
 Section  1(a),  (B) as a Grandfathered  Person  pursuant to subsection  (m)(ii) of this
 Section 1, or (C) in the case of any Person who was a Grandfathered  Person  pursuant
 to  subsection  (m)(i)  of this  Section  1, as a  Grandfathered  Person
pursuant to
subsection  (m)(ii) of this Section 1, which shall be applied to such Person as if the
 Percentage  Stock  Ownership of such Person at the Amendment Effective Time had been
less than 5.0%; and 

	 	        (iii)          any
 Person  that the  Board  determines,  in its  sole  discretion,  has,  at or after  the
 Amendment          Effective  Time, by itself or together with its Affiliates and
Associates,  inadvertently  become          a Beneficial  Owner of 5.0% or more of the
Common Shares then  outstanding (or has  inadvertently          failed to continue to
qualify as a  Grandfathered  Person);  provided  that such Person  promptly
         enters into, and delivers to the Company,  an irrevocable  commitment promptly
to divest or cause          its  Affiliates  and  Associates to divest,  and  thereafter
 such Person or its  Affiliates  and          Associates  promptly divest (without
 exercising or retaining any power,  including voting power,          with respect to
such Common Shares (or other  securities the  beneficial  ownership of which by a
         Person  also  results in such Person  beneficially  owning  Common  Shares)),
 sufficient  Common          Shares (or other  securities the  beneficial  ownership of
which by a Person also results in such          Person  beneficially  owning Common
Shares) so that such Person’s  Percentage  Stock Ownership is          less than 5.0% (or,
 in the case of any Person who or which has  inadvertently  failed to  continue
         to  qualify  as a  Grandfathered  Person,  Common  Shares  (or other  securities
 the  beneficial          ownership of which by a Person also results in such Person
 beneficially  owning  Common  Shares)          in an amount  sufficient  to reduce such
 Person’s  beneficial  ownership of Common Shares by the          number of  Common
 Shares  that  caused  such  Person to so fail to  qualify  as a  Grandfathered
         Person);  provided further that any such Person shall cease to qualify for the
exclusion from the          definition  of “Acquiring  Person”  contained in this
 subsection  (iii) from and after such time          (if any) as the Person,  together
with its  Affiliates  and  Associates,  subsequently  becomes a          Beneficial
 Owner of 5.0% or more of the Common Shares then  outstanding (or fails to continue to
         qualify as a  Grandfathered  Person),  unless the Person  independently  meets
the conditions set          forth in this  subsection  (iii)  with  respect  to the
 circumstances  relating  to the  Person,          together with its Affiliates and
 Associates,  subsequently  becoming a Beneficial  Owner of 5.0%          or more  of the
 Common  Shares  then  outstanding  (or  failing  to  continue  to  qualify  as a
         Grandfathered Person). 

        (b)              “Affiliate” and
“Associate” shall have the respective           meanings ascribed to such terms
in Rule 12b-2 of the General Rules and           Regulations under the Securities
Exchange Act of 1934, as amended (the           “Exchange Act”), as in effect
on the date of this Agreement and, to           the extent not included within the
foregoing provisions of this Section 1(b),           shall also include, with respect to
any Person, any other Person whose Common           Shares are treated, for purposes of
Section 382 of the Code and the Treasury           Regulations thereunder, as being (i)
owned by such first Person (or by a Person           or group of Persons to which the
Common Shares owned by such first Person are           attributed pursuant to Treasury
Regulation Section 1.382-2T(h)), or (ii) owned           by the same “entity” (as
defined in the second sentence of Treasury           Regulation Section 1.382-3(a)(1)(i))
as is deemed to own the Common Shares owned           by such first Person; provided,
however, that a Person shall not be           deemed to be an Affiliate or Associate
of another Person solely because either           or both Persons are or were directors
or officers of the Company.  

        (c)              “Amendment
Effective Time” means the close of business on July 7,           2009.  

        (d)              A
Person shall be deemed a “Beneficial Owner” of, and shall be deemed
          to “beneficially own,” any securities:  

	 	        (i)    
which such Person or any of such Person’s Affiliates or Associates beneficially
owns, directly or indirectly; 

	 	        (ii)              which
such Person or any of such Person’s Affiliates or Associates,           directly or
indirectly, has the right to acquire (whether such right is           exercisable
immediately or only after the passage of time) pursuant to any           agreement,
arrangement or understanding (whether or not in writing) or upon the           exercise
of conversion rights, exchange rights, warrants, options, or other           rights (in
each case, other than upon exercise or exchange of the Rights); provided, however,
that a Person shall not be deemed a 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;  

2 

	 	        (iii)              which
such Person or any of such Person’s Affiliates or Associates,           directly or
indirectly, has or shares the right to vote or dispose of, or has           “beneficial
ownership” (as defined under Rule 13d-3 of the General           Rules and
Regulations under the Exchange Act) of, including pursuant to any           agreement,
arrangement or understanding (whether or not in writing); or 

	 	        (iv)              with
respect to which any other Person is a Beneficial Owner, if the Person           referred
to in the introductory clause of this Section 1(d) or any of such           Person’s
Affiliates or Associates has any agreement, arrangement or           understanding
(whether or not in writing) with such other Person (or any of such           other Person’s
Affiliates or Associates) with respect to acquiring,           holding, voting or
disposing of any securities of the Company;  

provided, however, that the
preceding provisions of this Section 1(d) shall not be applied to cause a Person to be
deemed a “Beneficial Owner” of, or to “beneficially own,” any security
(A) solely because such Person has the right to vote such security pursuant to an
agreement, arrangement or understanding (whether or not in writing) which (1) arises
solely from a revocable proxy given to such Person in response to a public proxy or
consent solicitation made pursuant to, and in accordance with, the applicable rules and
regulations of the Exchange Act, and (2) is not also then reportable on Schedule 13D under
the Exchange Act (or any comparable or successor report), or (B) if such beneficial
ownership arises solely as a result of such Person’s status as a “clearing
agency,” as defined in Section 3(a)(23) of the Exchange Act; provided
further, however, that nothing in this Section 1(d) shall cause a Person engaged
in business as an underwriter of securities or member of a selling to group to be a
Beneficial Owner of, or to “beneficially own,” any securities acquired through
such Person’s participation in good faith in an underwriting syndicate until the
expiration of 40 calendar days after the date of such acquisition, or such later date as
the directors of the Company may determine in any specific case. Notwithstanding anything
herein to the contrary, to the extent not within the foregoing provisions of this
Section 1(d), a Person shall be deemed a “Beneficial Owner” of, and shall
be deemed to “beneficially own” or have “beneficial ownership” of, any
securities that are owned by another Person and that are treated, for purposes of Section
382 of the Code and the Treasury Regulations thereunder, as being (x) owned by such first
Person (or by a Person or group of Persons to which the securities owned by such first
Person are attributed pursuant to Treasury Regulation Section 1.382-2T(h)), or (y) owned
by the same “entity” (as defined in the second sentence of Treasury Regulation
Section 1.382-3(a)(1)(i)) as is deemed to own the securities owned by such first Person. 

3 

        (e)              “Board” means
the Board of Directors of the Company.  

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

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

        (h)              “Common
Shares” means the shares of common stock, par value $1.00, of           the Company.  

        (i)              “Distribution
Date” has the meaning set forth in Section 3(a)           hereof.  

        (j)              “Exchange
Act” has the meaning set forth in subsection (b) of this           Section 1.  

        (k)              “Expiration
Date” means earliest of (i) Final Expiration Date; (ii)           the time at which
the Rights are redeemed as provided in Section 23 hereof           (the “Redemption
Date”); (iii) the time at which the Rights are           exchanged as provided in
Section 24 hereof; (iv) the repeal of Section 382           of the Code if the Board
determines that this Agreement is no longer necessary           for the preservation of
the Tax Benefits; and (v) the beginning of a taxable           year of the Company to
which the Board determines that no Tax Benefits may be           carried forward.  

        (l)              “Final
Expiration Date” means the close of business on August 17,           2012,
subject to extension.  

        (m)              “Grandfathered
Person” means:  

	 	        (i)    
     any Person who does not  qualify as an  “Acquiring  Person” (as  defined in the
 Original  Rights          Agreement)  immediately  prior to the  Amendment  Effective
 Time and who at the Amendment Effective Time is a Beneficial Onwer of 5.0% or more of the Common Shares outstanding at
the  Amendment  Effective  Time;  provided  that any such
         Person  shall  cease to be a  Grandfathered  Person  from  and  after  such
 time (if any) as the          Person’s  Percentage  Stock  Ownership  shall be increased
from such Person’s  lowest  Percentage          Stock  Ownership on or after the
Amendment  Effective Time,  other than any increase  pursuant to          or as a result
of (A) an  acquisition  of Common  Shares by the  Company  and/or (B) such  Person
         becoming  the  Beneficial  Owner of  additional  Common  Shares  due  solely  to
(x) such  Person          beneficially  owning the Company’s 9% Convertible  Junior
 Subordinated  Debentures due 2063 (the          “2063  Debentures”)  immediately prior
to the Amendment  Effective Time and (y) during the period          thereafter in which
the 2063  Debentures  then  beneficially  owned  continue to be  beneficially
         owned by such Person,  the  occurrence of one or more 2063 Debenture  Adjustment
 Events (as such          term is defined at the end of this Section 1(m)); and 

4 

	 	        (ii)          any
Person who (x) at the Amendment  Effective  Time is not a Beneficial Owner of 5.0% or more of the Common Shares outstanding at the Amendment
Effective Time and (y) if the  definition  of
 Acquiring  Person did not  include  an  exclusion  for any          Grandfathered
 Person,  would qualify  as an Acquiring Person after the Amendment Effective Time as a result of (I) an  acquisition of Common
         Shares by the  Company  and/or (II) such  Person  becoming  the  Beneficial
 Owner of  additional          Common  Shares due  solely to the  occurrence  of one or
more 2063  Debenture  Adjustment  Events          during the period in which 2063
Debentures are beneficially  owned by such Person;  provided that          any such
 Person  shall cease to be a  Grandfathered  Person from and after such time (if any) as
         the Person’s  Percentage Stock Ownership shall be increased from such Person’s
lowest  Percentage          Stock  Ownership on or after the date of the first
 occurrence  of any event  described in clause          (I) or (II),  other  than  any
 increase  pursuant  to or as a result  of (A) an  acquisition  of          Common Shares
by the Company and/or (B) such Person  becoming the Beneficial  Owner of additional
         Common  Shares due  solely to the  occurrence  of one or more 2063  Debenture
 Adjustment  Events          during the period in which 2063 Debentures are beneficially
owned by such Person. 

If any Person that had  qualified as
a  Grandfathered  Person  ceases to so qualify,  then for purposes of Section 1(a) such
Person and such Person’s  Affiliates and Associates  shall be deemed to have become,  as
of the time the Person  ceased to qualify as a  Grandfathered  Person,  a  Beneficial
 Owner of the Common Shares that such Person and such  Person’s  Affiliates  and
 Associates  then  beneficially  own.  For the avoidance of doubt,  it is understood
 that the  qualifications  and exceptions in subsections (m) (i) and (ii) of this
 Section 1 with respect to 2063  Debenture  Adjustment  Events do not apply to Common
 Shares attributable to 2063 Debenture  Adjustment Events that are delivered and
beneficially  owned on conversion of 2063  Debentures.  “2063  Debenture  Adjustment
 Events” means each of (x) effective as of each date on which the  interest so  deferred
 would have been due and  payable in the  absence of such  deferral,  the Company
 deferring the payment of interest on the 2063 Debentures,  (y) effective as of each date
on which such compounded interest accrues,  compounded interest on account of such a
deferral,  and (z) an increase pursuant  to the terms of the 2063  Debentures  in the
number of Common  Shares  that are  deliverable  on conversion  of the 2063  Debentures.
 Changes  in the  average  price per  Common  Share  that  affect the number of Common
Shares  deliverable on conversion of the 2063 Debentures shall be considered  adjustments
under the immediately preceding clause (z). 

        (n)              “Percentage
Stock Ownership” of a Person means the percentage           calculated by dividing
(i) the number of Common Shares as to which the Person,           together with its
Affiliates and Associates, is a Beneficial Owner, divided by           (ii) the number of
Common Shares then outstanding.  

        (o)              “Person” means
any individual, firm, corporation, partnership, trust,           association, limited
liability company, limited liability partnership,           governmental entity, or other
entity, or any group of any one or more of the           foregoing making a “coordinated
acquisition” of shares or otherwise           treated as an entity within the
meaning of Treasury Regulation Section           1.382-3(a)(1)(i) and shall include any
successor (by merger or otherwise) of any           such entity.  

        (p)              “Redemption
Date” has the meaning set forth in subsection (k) of this           Section 1.  

        (q)              “Related
Person” means the Company, any Subsidiary of the Company (in           each case
including, without limitation, in any fiduciary capacity), any           employee benefit
plan or compensation arrangement of the Company or any           Subsidiary of the
Company, or any entity or trustee holding Common Shares to the           extent
organized, appointed or established by the Company or any Subsidiary of           the
Company for or pursuant to the terms of any such employee benefit plan or
          compensation arrangement.  

        (r)              “Securities
Act” means the Securities Act of 1933, as amended.  

        (s)              “Shares
Acquisition Date” means the first date of public announcement           (which, for
purposes of this definition, shall include, without limitation, a           report filed
or amended pursuant to Section 13(d) under the Exchange Act),           by the
Company or a Person or an Affiliate of the Person, (i) that the Person           has
become an Acquiring Person or (ii) of information that leads the Board to
          conclude that the Person has become an Acquiring Person.  

5 

        (t)              “Subsidiary” of
any Person means any other Person of which securities           or other ownership
interests having ordinary voting power, in the absence of           contingencies, to
elect a majority of the board of directors or other Persons           performing similar
functions are at the time directly or indirectly owned by           such first Person.  

        (u)              “Tax
Benefits” means the net operating loss carryovers, capital loss
          carryovers, general business credit carryovers, alternative minimum tax credit
          carryovers and foreign tax credit carryovers, as well as any loss or deduction
          attributable to a “net unrealized built-in loss” within the meaning
of           Section 382 of the Code, of the Company or any of its Subsidiaries.  

        (v)              “Treasury
Regulation” means a final, proposed or temporary regulation           of the U.S.
Department of Treasury promulgated under the Code.  

        Section
2.    Appointment of Rights Agent. The
Company hereby appoints the Rights Agent to act as agent for the Company and the holders
of the Rights (who, in accordance with Section 3 hereof, shall prior to the
Distribution Date also be the holders of the Common Shares) in accordance with the terms
and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company
may from time to time appoint such co-rights agents as it may deem necessary or
desirable.  

        Section
3.    Issue of Right Certificates. 

        (a)              Until
the earlier of (i) the tenth day after the Shares Acquisition Date or (ii)           the
tenth Business Day (or such later date as may be determined by action of the
          Company’s Board of Directors prior to such time as any Person becomes an
          Acquiring Person) after the date of the commencement of, or of the first public
          announcement of the intention of any Person to commence, a tender or exchange
          offer the consummation of which would result in any Person becoming an
Acquiring           Person (the earlier of such dates being herein referred to as the
          “Distribution Date”), (x) the Rights will be evidenced (subject to
the           provisions of Section 3(b) hereof) by the certificates for Common
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, and (y)           the right to receive Right Certificates will be
transferable only in connection           with the transfer of Common Shares; provided,
however, that if a tender           or exchange offer is terminated prior to the
occurrence of a Distribution Date,           then no Distribution Date shall occur as a
result of such tender or exchange           offer. As soon as practicable after the
Distribution Date, the Company will           prepare and execute, the Rights Agent will
countersign, and the Company will           send or cause to be sent (and the Rights
Agent will, if requested, send) by           first-class, insured, postage-prepaid mail,
to each record holder of Common           Shares as of the close of business on the
Distribution Date, at the address of           such holder shown on the records of the
Company, a Right Certificate, in           substantially the form of Exhibit A hereto (a
“Right Certificate”),           evidencing one Right for each Common Share of
the Company so held. As of the           Distribution Date, the Rights will be evidenced
solely by such Right           Certificates.  

6 

        (b)              The
Company has prepared a Summary of Rights to Purchase Common Shares, attached           as
Exhibit B hereto (the “Summary of Rights”), a copy of which is
          available free of charge from the Company. With respect to certificates for
          Common Shares outstanding as of the Record Date, until the Distribution Date,
          the Rights will be evidenced by such certificates registered in the names of
the           holders thereof. Until the Distribution Date (or the Expiration Date, if
          earlier), the surrender for transfer of any certificate for Common Shares
          outstanding on the Record Date, with or without a copy of the Summary of Rights
          attached thereto, shall also constitute the transfer of the Rights associated
          with the Common Shares represented thereby.  

        (c)              Certificates
for Common Shares that become outstanding (including, without           limitation,
certificates for reacquired Common Shares referred to in the last           sentence of
this paragraph (c) and certificates issued on the transfer of Common           Shares)
after the Record Date but prior to the earlier of the Distribution Date           and the
Expiration Date shall have impressed on, printed on, written on or           otherwise
affixed to them a legend in substantially the following form           (provided,
however, that certificates for Common Shares in existence on the date           of this
Agreement may bear the legend required by the Original Rights           Agreement):  

	 	        This
certificate also evidences and entitles the holder hereof to certain rights as set forth
in an Amended and Restated Rights Agreement between MGIC Investment Corporation and Wells
Fargo Bank, National Association, dated as of July 7, 2009, and as such agreement
may be amended (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 MGIC Investment 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. MGIC Investment 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 set forth in the Rights Agreement,
Rights issued to, or beneficially owned by, an Acquiring Person or any Affiliate or
Associate thereof (as such terms are defined in the Rights Agreement), whether
beneficially owned by such person or any subsequent holder, shall become null and void. 

With respect to such certificates
containing the foregoing legend, until the Distribution 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. 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. 

        Section
4.    Form of Right Certificates. The Right
Certificates (and the forms of election to purchase Common Shares and of assignment to be
printed on the reverse thereof) shall be substantially the same as Exhibit A hereto and
may have such marks of identification or designation and such legends, summaries or
endorsements printed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Agreement, or as may be required to comply with
any applicable law or with any rule or regulation made pursuant thereto or with any rule
or regulation of any stock exchange on which the Rights may from time to time be listed,
or to conform to usage. Subject to the provisions of Section 22 hereof, the Right
Certificates shall entitle the holders thereof to purchase such number of Common Shares
as shall be set forth therein at the purchase price per Common Share set forth therein,
but the amount and type of securities purchasable upon
exercise of each Right and such purchase price shall be subject to adjustment as provided
herein (such purchase price, as so adjusted, the “Purchase Price”).  

7 

        Section
5.    Countersignature and Registration. 

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

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

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

        (a)              Subject
to the provisions of Section 14 hereof, at any time after the close           of
business on the Distribution Date, and at or prior to the close of business           on
the Expiration Date, any Right Certificate or Right Certificates (other than
          Right Certificates representing Rights that have become void pursuant to
          Section 11(a)(ii) hereof or that have been redeemed or exchanged pursuant
          to Section 23 or Section 24 hereof) may be transferred, split up,
          combined or exchanged for another Right Certificate or Right Certificates,
          entitling the registered holder to purchase a like number of Common Shares as
          the Right Certificate or Right Certificates surrendered then entitled such
          holder to purchase. Any registered holder desiring to transfer, split up,
          combine or exchange any Right Certificate or Right Certificates shall make such
          request in writing delivered to the Rights Agent, and shall surrender the Right
          Certificate or Right Certificates to be transferred, split up, combined or
          exchanged at the principal office of the Rights Agent. Thereupon the Rights
          Agent shall countersign and deliver to the Person entitled thereto a Right
          Certificate or Right Certificates, as the case may be, as so requested. The
          Company may require payment of a sum sufficient to cover any tax or
governmental           charge that may be imposed in connection with any transfer, split
up,           combination or exchange of Right Certificates.  

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

8 

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

        (a)              Each
Right shall be exercisable to purchase one-half of one Common Share of the
          Company, subject to further adjustment as provided herein. The registered
holder           of any Right Certificate may exercise the Rights evidenced thereby
(except as           otherwise provided herein) 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 executed, to the Rights
          Agent at the principal office of the Rights Agent, together with payment of the
          Purchase Price for each Common Share as to which the Rights are exercised, at
or           prior to the Expiration Date; provided, however, that if the
          number of Rights exercised would entitle the holder thereof to receive any
          fraction of a Common Share greater than one-half of a Common Share, then the
          holder thereof shall not be entitled to exercise such Rights unless such holder
          concurrently purchases from the Company (and in such event the Company shall
          sell to such holder), at a price in proportion to the Purchase Price, an
          additional fraction of a Common Share which, when added to the number of Common
          Shares to be received upon such exercise, will equal an integral number of
          Common Shares.  

        (b)              The
Purchase Price for each full Common Share pursuant to the exercise of a           Right
shall initially be $25.00 (equivalent to $12.50 for each one-half of one           Common
Share), shall be subject to adjustment from time to time as provided in           Sections 11
and 13 hereof and shall be payable in lawful money of the           United States of
America in accordance with paragraph (c) below.  

        (c)              Upon
receipt of a Right Certificate representing exercisable Rights, with the           form
of election to purchase duly executed, accompanied by payment of the           Purchase
Price for the Common Shares to be purchased and an amount equal to any
          applicable transfer tax required to be paid by the holder of such Right
          Certificate in accordance with Section 9 hereof, as set forth below, the
          Rights Agent shall thereupon promptly (i) requisition from any transfer agent
of           the Common Shares certificates for the number of Common Shares to be
purchased           and the Company hereby irrevocably authorizes its transfer agent to
comply with           all such requests, (ii) when appropriate, requisition from the
Company the           amount of cash to be paid in lieu of issuance of fractional Common
Shares in           accordance with Section 14 hereof, (iii) after receipt of such
          certificates, cause the same to be delivered to or upon the order of the
          registered holder of such Right Certificate, registered in such name or names
as           may be designated by such holder and (iv) when appropriate, after receipt,
          deliver such cash to or upon the order of the registered holder of such Right
          Certificate. The payment of the Purchase Price (as such amount may be reduced
          pursuant to Section 11(a)(iii) hereof) shall be made by certified check,
          cashier’s check, bank draft or money order payable to the order of the
          Company, except that, if so provided by the Board, the payment of the Purchase
          Price following the occurrence of a Section 11(a)(ii) Event (as
hereinafter           defined) may be made wholly or in part by delivery of a certificate
or           certificates (with appropriate stock powers executed in blank attached
thereto)           evidencing a number of Common Shares equal to the then Purchase Price
divided by           the closing price (as determined pursuant to Section 11(d)
hereof) per           Common Share on the Trading Day (as such term is hereinafter
defined)           immediately preceding the date of such exercise. If the Company is
obligated to           issue other securities of the Company, pay cash and/or distribute
other property           pursuant to Section 11(a) hereof, the Company will make all
arrangements           necessary so that such other securities, cash and/or other
property are           available for distribution by the Rights Agent, if and when
appropriate.  

9 

        (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 take any action with respect to a           registered
holder of a Right Certificate upon the occurrence of any purported           transfer,
assignment or exercise as set forth in this Section 7 unless such
          registered holder shall have (i) completed and signed the certificate following
          the form of assignment or election to purchase set forth on the reverse of the
          Right Certificate surrendered for such transfer, assignment or exercise, and
          (ii) provided such additional evidence of the identity of the Beneficial Owner
          (or former Beneficial Owner) or Affiliates or Associates thereof as the Company
          shall reasonably request.  

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

        Section
9.    Reservation and Availability of Common Shares. 

        (a)              The
Company covenants and agrees that it will cause to be reserved and kept
          available out of its authorized and unissued Common Shares or any authorized
and           issued Common Shares held in its treasury the number of Common Shares that
will           be sufficient to permit the exercise in full of all outstanding Rights in
          accordance with Section 7.  

        (b)              So
long as the Common Shares issuable upon the exercise of Rights may be listed           on
any national securities exchange, the Company shall use its best efforts to
          cause, from and after such time as the Rights become exercisable, all Common
          Shares reserved for such issuance to be listed on such exchange upon official
          notice of issuance upon such exercise.  

10 

        (c)              The
Company covenants and agrees that it will take all such action as may be
          necessary to ensure that all Common Shares delivered upon exercise of Rights
          shall, at the time of delivery of the certificates for such shares (subject to
          payment of the Purchase Price), be duly and validly authorized and issued and
          fully paid and nonassessable shares (except as otherwise provided by any
          corporation law applicable to the Company).  

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

        (e)              If
the Company determines that registration under the Securities Act is           required,
the Company shall use commercially reasonable efforts (i) to file, as           soon as
practicable after the Distribution Date, a registration statement under           the
Securities Act with respect to the securities issuable upon exercise of the
          Rights, (ii) to cause such registration statement to become effective as soon
as           practicable after such filing and (iii) to cause such registration statement
to           remain effective (with a prospectus at all times meeting the requirements of
the           Securities Act) until the earlier of (A) the date as of which the Rights
are no           longer exercisable for such securities and (B) the Expiration Date. The
Company           shall also take such action as may be appropriate 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 temporarily suspend, for a
period           of time not to exceed 90 days, the exercisability of the Rights to
prepare and           file such registration statement and permit it to become effective
or to qualify           the rights, the exercise thereof or the issuance of securities
upon the exercise           thereof under state securities or blue sky laws. The Company
shall issue a           public announcement upon any such suspension stating that the
exercisability of           the Rights has been temporarily suspended, as well as a
public announcement when           the suspension is no longer in effect. Notwithstanding
anything contained in           this Agreement to the contrary, the Rights shall not be
exercisable for           securities in any jurisdiction if the requisite qualification
in such           jurisdiction has not been obtained, such exercise is not permitted
under           applicable law or a registration statement in respect of such securities
has not           been declared effective.  

        Section
10.    Common Shares Record Date. Each
Person in whose name any certificate for Common Shares is issued upon the exercise of
Rights shall for all purposes be deemed to have become the holder of record of the Common
Shares represented thereby on, and such certificate shall be dated, the date upon which
the Right Certificate evidencing such Rights was duly surrendered and payment of the
Purchase Price (and any applicable transfer taxes) was made; provided, however,
that if the date of such surrender and payment is a date upon which the Common Shares
transfer books of the Company are closed, such Person shall be deemed to have become the
record holder of such shares on, and such certificate shall be dated, the next succeeding
Business Day on which the Common Shares transfer books of the Company are open.  

11 

        Section
11.    Adjustment of Purchase Price, Number of Shares or
Number of Rights. The Purchase Price, the number of Common Shares covered
by each Right and the number of Rights outstanding are subject to adjustment from time to
time as provided in this Section 11.  

	 	        (a)              (i)
In the event the Company shall at any time after the date of this Agreement           (A)
declare a dividend on the Common Shares payable in Common Shares, (B)           subdivide
the outstanding Common Shares, (C) combine the outstanding Common           Shares into a
smaller number of Common Shares or (D) issue any shares of its           capital stock in
a reclassification of the Common Shares (including any such           reclassification in
connection with a consolidation or merger in which the           Company is the
continuing or surviving corporation), except as otherwise           provided in this
Section 11(a), the Purchase Price in effect at the time of           the record date
for such dividend or of the effective date of such subdivision,           combination or
reclassification, 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 Common           Shares transfer
books of the Company were open, such holder would have owned           upon such exercise
and been entitled to receive by virtue of such dividend,           subdivision,
combination or reclassification; provided, however,           that in no
event shall the consideration to be paid upon the exercise of one           Right be less
than the aggregate par value of the shares of capital stock of the           Company
issuable upon exercise of one Right. If an event occurs which would           require an
adjustment under both Section 11(a)(i) and           Section 11(a)(ii), the
adjustment provided for in this           Section 11(a)(i) shall be in addition to,
and shall be made prior to, any           adjustment required pursuant to Section 11(a)(ii).  

	 	        (ii)              Subject
to the following paragraph and Section 24 of this Agreement, in the           event
any Person shall become an Acquiring Person (a “Section 11(a)(ii)           Event”),
each holder of a Right shall thereafter have a right to receive,           upon exercise
thereof at a price equal to two times the then current Purchase           Price per full
Common Share multiplied by the number of Common Shares for which           a Right is
exercisable immediately prior to the first occurrence of a Section           11(a)(ii)
Event, in accordance with the terms of this Agreement, such number of           Common
Shares as shall equal the result obtained by (x) multiplying two times           the then
current Purchase Price per full Common Share by the number of Common           Shares for
which a Right is exercisable immediately prior to the first           occurrence of a
Section 11(a)(ii) Event 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)) on the date the Person became an Acquiring           Person (such
number of shares, the “Adjustment Shares”).  

12 

	 	        From
and after a Section 11(a)(ii) Event, any Rights that are or were beneficially owned
by such Acquiring Person (or any Associate or Affiliate of such Acquiring Person) shall be
void and any holder of such Rights shall thereafter have no right to exercise such Rights
under any provision of this Agreement. No Right Certificate shall be issued pursuant to
Section 3 or 6 that represents Rights beneficially owned by an Acquiring Person
whose Rights would be void pursuant to the preceding sentence or any Associate or
Affiliate thereof; no Right Certificate shall be issued at any time upon the transfer of
any Rights to an Acquiring Person whose Rights would be void pursuant to the preceding
sentence or any Associate or Affiliate thereof or to any nominee of such Acquiring Person,
Associate or Affiliate; and any Right Certificate delivered to the Rights Agent for
transfer to an Acquiring Person whose Rights would be void pursuant to the preceding
sentence shall be cancelled. The Company shall use all reasonable efforts to ensure that
the provisions of this paragraph are complied with, but shall have no liability to any
holder of Right Certificates or other Person as a result of its failure to make any
determinations with respect to an Acquiring Person or its Affiliates, Associates or
transferees hereunder. 

	 	        (iii)              In
the event that there shall not be sufficient Common Shares issued but not
          outstanding or authorized but unissued (and not reserved for issuance for
          purposes other than upon exercise of the Rights) to permit the exercise in full
          of the Rights in accordance with the foregoing subparagraph (ii), the Company
          shall: (A) determine the excess of (1) the value of the Adjustment Shares
          issuable upon the exercise of a Right (the “Current Value”) over (2)
          the Purchase Price payable with respect to such Right (such excess, the
          “Spread”), and (B) with respect to each Right (subject to the second
          paragraph of Section 11(a)(ii)), make adequate provision to substitute for the
          Adjustment Shares, upon payment of the applicable Purchase Price, (1) cash, (2)
          a reduction in the Purchase Price, (3) Common Shares or other equity securities
          of the Company (including, without limitation, shares, or units of shares, of
          preferred stock, if any, which the Board has deemed to have the same value as
          Common Shares and which, in the written opinion of counsel addressed to such
          Board, may be issued without violating the representation in the sixth
paragraph           under the caption “Amendment of Articles of Incorporation to
Authorize           Preferred Stock” in the Company’s Proxy Statement for its
1998 Annual           Meeting of Shareholders (such shares of preferred stock,
hereinafter referred to           as “common stock equivalents”)), (4) debt
securities of the Company,           (5) other assets or (6) any combination of the
foregoing, having an aggregate           value equal to the Current Value, where such
aggregate value has been determined           by the Board based upon the advice of a
nationally recognized investment banking           firm selected by the Board; provided,
however, if the Company shall not have           made adequate provision to substitute
for the Adjustment Shares pursuant to           clause (B) above within thirty (30) days
following the occurrence of a           Section 11(a)(ii) Event (the “Section 11(a)(ii)
Trigger           Date”), then the Company shall be obligated to deliver, upon the
surrender           for exercise of a Right and without requiring payment of any portion
of the           Purchase Price, Common Shares (to the extent available) and then, if
necessary,           cash, which shares and/or cash have an aggregate value equal to the
Spread. If           the Board shall determine in good faith that it is likely that
sufficient           additional Common Shares might be authorized for issuance for
exercise in full           of the Rights, the thirty (30) day period set forth above may
be extended to the           extent necessary, but not more than ninety (90) days after
the           Section 11(a)(ii) Trigger Date, in order that the Company may seek
          shareholder approval for the authorization of such additional shares (such
          period, as it may be extended, the “Substitution Period”). To the
          extent that the Company determines that some action need be taken pursuant to
          the first and/or second sentences of this Section 11(a)(iii), the Company
          (x) shall provide, subject to the last paragraph of Section 11(a)(ii)
          hereof, that such action shall apply uniformly to all outstanding Rights, and
          (y) may suspend the exercisability of the Rights until the expiration of the
          Substitution Period to seek any authorization of additional shares and/or to
          decide the appropriate form of distribution to be made pursuant to such first
          sentence and to determine the value thereof. In the event of any such
          suspension, the Company shall issue a public announcement 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. For
purposes           of this Section 11(a)(iii), the value of the Common Shares shall
be the           current per share market price (as determined pursuant to Section 11(d)
          hereof) of the Common Shares on the Section 11(a)(ii) Trigger Date and the
          value of any “common stock equivalent” shall be deemed to have the
          same value as the Common Shares on such date.  

13 

        (b)              In
case the Company shall fix a record date for the issuance of rights, options           or
warrants to all holders of Common Shares entitling them (for a period           expiring
within 45 calendar days after such record date) to subscribe for or           purchase
Common Shares (or securities convertible into Common Shares) at a price           per
Common Share (or having a conversion price per share, if a security           convertible
into Common Shares) less than the then current per share market           price of the
Common Shares (as defined in Section 11(d)) 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 Common           Shares
outstanding on such record date plus the number of Common Shares which           the
aggregate offering price of the total number of Common Shares so to be           offered
(and/or the aggregate initial conversion price of the convertible           securities so
to be offered) would purchase at such current market price and the           denominator
of which shall be the number of Common Shares outstanding on such           record date
plus the number of additional Common Shares to be offered for           subscription or
purchase (or into which the convertible securities so to be           offered are
initially convertible); provided, however, that in no event shall           the
consideration to be paid upon the exercise of one Right be less than the
          aggregate par value of the shares of capital stock of the Company issuable upon
          exercise of one Right. In case such subscription price may be paid in a
          consideration part or all of which shall be in a form other than cash, the
value           of such consideration shall be as determined in good faith by the Board,
whose           determination shall be described in a statement filed with the Rights
Agent.           Common 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.  

14 

        (c)              In
case the Company shall fix a record date for the making of a distribution to
          all holders of the Common Shares (including any such distribution made in
          connection with a consolidation or merger in which the Company is the
continuing           or surviving corporation) of evidences of indebtedness or assets
(other than a           regular quarterly cash dividend (it is understood that without
creating any           implication that an increase of more than such amount would cause
a dividend to           fail to satisfy such standard, an increase of not to exceed one
cent per share,           appropriately adjusted to reflect any stock split, stock
dividend of similar           transaction occurring after the date hereof, shall not
cause a dividend not to           be a regular quarterly cash dividend) or a dividend
payable in Common Shares) or           subscription rights or warrants (excluding those
referred to in           Section 11(b)), 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 Common Shares (as
defined in           Section 11(d)) on such record date, less the fair market value
(as           determined in good faith by the Board, whose determination shall be
described in           a statement filed with the Rights Agent) of the portion of the
assets or           evidences of indebtedness so to be distributed or of such
subscription rights or           warrants applicable to one Common Share and the
denominator of which shall be           such current per share market price of the Common
Shares; provided, however, that in no event shall the consideration to be
paid upon the           exercise of one Right be less than the aggregate par value of the
shares of           capital stock of the Company to be issued upon exercise of one Right.
Such           adjustments shall be made successively whenever such a record date is
fixed; and           in the event that such distribution is not so made, the Purchase
Price shall           again be adjusted to be the Purchase Price which would then be in
effect if such           record date had not been fixed.  

        (d)              For
the purpose of any computation hereunder, the “current per share market
          price” of the Common Shares on any date shall be deemed to be the average
          of the daily closing prices per Common Share for the 30 consecutive Trading
Days           (as such term is hereinafter defined) immediately prior to such date; provided,
however, that in the event that the current per share           market price of
the Common Shares is determined during a period following the           announcement by
the issuer of such Common Shares of (i) a dividend or           distribution on such
Common Shares payable in Common Shares or securities           convertible into Common
Shares, or (ii) any subdivision, combination or           reclassification of Common
Shares and prior to the expiration of 30 Trading Days           after the ex-dividend
date for such dividend or distribution, or the record date           for such
subdivision, combination or reclassification, then, and in each such           case, the
current per share market price shall be appropriately adjusted to           reflect the
current market price per Common Share. The closing price for each           Trading 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 Common Shares are not listed           or 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 on which the Common Shares           are listed or admitted
to trading or, if the Common Shares are not listed or           admitted to trading on
any national securities exchange, the last quoted price           or, if not so quoted,
the average of the high bid and low asked prices in the           over-the-counter
market, as reported by the National Association of Securities           Dealers, Inc.
Automated Quotations System (“Nasdaq”) or such other           system then in
use, or, if on any such date the Common Shares are not quoted by           any such
organization, the average of the closing bid and asked prices as           furnished by a
professional market maker making a market in the Common Shares           selected by the
Board. The term “Trading Day” shall mean a day on           which the principal
national securities exchange on which the Common Shares are           listed or admitted
to trading is open for the transaction of business or, if the           Common Shares are
not listed or admitted to trading on any national securities           exchange, a
Business Day.  

15 

        (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           ten-thousandth of a share as the
case may be. Notwithstanding the first sentence           of this Section 11(e), any
adjustment required by this Section 11           shall be made no later than the
earlier of (i) three years from the date of the           transaction which requires such
adjustment or (ii) the Expiration Date.  

        (f)              If,
as a result of an adjustment made pursuant to Section 11(a), the holder           of
any Right thereafter exercised shall become entitled to receive any shares of
          capital stock of the Company other than Common Shares, thereafter the number of
          such other shares so receivable upon exercise of any Right shall be subject to
          adjustment from time to time in a manner and on terms as nearly equivalent as
          practicable to the provisions with respect to the Common Shares contained in
          this Section 11 and the provisions of Sections 7, 9, 10 and 14 with
          respect to the Common Shares shall apply on like terms to any such other
shares.  

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

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

16 

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

        (j)              Irrespective
of any adjustment or change in the Purchase Price or the number of           Common
Shares issuable upon the exercise of the Rights, the Right Certificates
          theretofore and thereafter issued may continue to express the Purchase Price
and           the number of Common Shares which were expressed in the initial Right
          Certificates issued hereunder.  

        (k)              Before
taking any action that would cause an adjustment reducing the Purchase           Price
below the par value, if any, of the Common Shares issuable upon exercise           of the
Rights, the Company shall take any corporate action which may, in the           opinion
of its counsel, be necessary in order that the Company may validly and           legally
issue fully paid and nonassessable (except as otherwise provided by any
          corporation law applicable to the Company) Common Shares at such adjusted
          Purchase Price.  

        (l)              In
any case in which this Section 11 shall require that an adjustment in           the
Purchase Price be made effective as of a record date for a specified event,           the
Company may elect to defer until the occurrence of such event the issuing to
          the holder of any Right exercised after such record date of the Common Shares
          and other capital stock or securities of the Company, if any, issuable upon
such           exercise over and above the number of Common 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 shares 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 reductions in the Purchase Price, in addition to           those
adjustments expressly required by this Section 11, as and to the           extent
that it in its sole discretion shall determine to be advisable in order           that
any consolidation or subdivision of the Common Shares, issuance wholly for           cash
of any Common Shares at less than the current market price, issuance wholly           for
cash of Common Shares or securities which by their terms are convertible           into
or exchangeable for Common Shares, dividends on Common Shares payable in           Common
Shares or issuance of rights, options or warrants referred to in           Section 11(b),
hereafter made by the Company to holders of its Common           Shares shall not be
taxable to such shareholders.  

17 

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

        Section
12.    Certificate of Adjusted Purchase Price or Number of
Shares. Whenever an adjustment is made as provided in Section 11
hereof, the Company shall promptly (a) prepare a certificate setting forth such
adjustment, and a brief statement of the facts accounting for such adjustment, (b) file
with the Rights Agent and with each transfer agent for the Common Shares a copy of such
certificate and (c) mail (or, if deemed appropriate by the Board, make available at no
charge) a brief summary thereof to each holder of a Right Certificate in accordance with
Section 25 hereof.  

        Section
13.     [Reserved]  

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

18 

        (b)              The
Company shall not be required to issue fractions of Common Shares upon           exercise
or exchange of the Rights or to distribute certificates which evidence
          fractional Common Shares. In lieu of issuing fractional Common Shares equal to
          one-half of a Common Share or less upon the exercise of Rights, the Company
          shall pay to the registered holders of Right Certificates at the time such
          Rights are exercised as herein provided an amount in cash equal to the same
          fraction of the current market value of one Common Share. Any exercise of
Rights           that would entitle the holder thereof to receive any fraction of a
Common Share           greater than one-half of a Common Share shall be governed by
Section 7(a)           hereof. In lieu of issuing fractional Common Shares upon the
exchange of Rights,           the Company shall pay to the registered holders of Right
Certificates at the           time such Rights are exchanged as herein provided an amount
in cash equal to the           same fraction of the current market value of one Common
Share. For purposes of           this Section 14(b), the current market value of a
Common Share shall be the           closing price of a Common Share (as determined
pursuant to the second sentence           of Section 11(d) hereof) for the Trading
Day immediately prior to the date           of such exercise.  

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

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

        Section
16.    Agreement of Right Holders. Every
holder of a Right, by accepting the same, consents and agrees with the Company and the
Rights 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;  

        (b)              after
the Distribution Date, the Right Certificates are transferable only on the
          registry books of the Rights Agent if surrendered at the principal office of
the           Rights Agent, duly endorsed or accompanied by a proper instrument of
transfer;  

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

19 

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

        Section
17.    Right Certificate Holder Not Deemed a Shareholder.
No holder, as such, of any Right Certificate shall be entitled to vote, receive dividends
or other distributions or be deemed for any purpose the holder of the Common Shares or
any other securities of the Company which may at any time be issuable on the exercise of
the Rights represented thereby, nor shall anything contained herein or in any Right
Certificate be construed to confer upon the holder of any Right Certificate, as such, any
of the rights of a shareholder of the Company or any right to vote for the election of
directors or upon any matter submitted to shareholders at any meeting thereof, or to give
or withhold consent to any corporate action, or to receive notice of meetings or other
actions affecting shareholders (except as provided in Section 25 hereof), or to
receive dividends or subscription rights, or otherwise, until the Right or Rights
evidenced by such Right Certificate shall have been exercised in accordance with the
provisions hereof.  

        Section
18.    Concerning the Rights Agent. 

        (a)              The
Company agrees to pay to the Rights Agent reasonable compensation for all
          services rendered by it hereunder and, from time to time, on demand of the
          Rights Agent, its reasonable expenses and counsel fees and other disbursements
          incurred in the administration and execution of this Agreement and the exercise
          and performance of its duties hereunder. The Company also agrees to indemnify
          the Rights Agent for, and to hold it harmless against, any loss, liability, or
          expense, incurred without negligence, bad faith or willful misconduct on the
          part of the Rights Agent, for anything done or omitted by the Rights Agent in
          connection with the acceptance and administration of this Agreement, including
          the costs and expenses of defending against any claim of liability in the
          premises.  

        (b)              The
Rights Agent shall be protected and shall incur no liability for, or in           respect
of any action taken, suffered or omitted by it in connection with, its
          administration of this Agreement in reliance upon any Right Certificate or
          certificate for the 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.  

20 

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

        (a)              Any
corporation into which the Rights Agent or any successor Rights Agent may be
          merged or with which it may be consolidated, or any corporation resulting from
          any merger or consolidation to which the Rights Agent or any successor Rights
          Agent shall be a party, or any corporation succeeding to the stock transfer or
          corporate trust 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 corporation would be eligible for
          appointment as a successor Rights Agent under the provisions of Section 21
          hereof. In case at the time such successor Rights Agent shall succeed to the
          agency created by this Agreement, any of the 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 Rights Agent may adopt the countersignature under its prior name           and
deliver Right Certificates so countersigned; and in case at that time any of
          the Right Certificates shall not have been countersigned, the Rights Agent may
          countersign such Right Certificates either in its prior name or in its changed
          name; and in all such cases such Right Certificates shall have the full force
          provided in the Right Certificates and in this Agreement.  

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

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

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

21 

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

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

        (e)              The
Rights Agent shall not be under any responsibility in respect of the           validity
of this Agreement or the execution and delivery hereof (except the due
          authorization, execution and delivery hereof by the Rights Agent) or in respect
          of the validity or execution of any 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 void pursuant to
          Section 11(a)(ii) hereof) or any adjustment in the terms of the Rights
          (including the manner, method or amount thereof) provided for in Section 3,
          11, 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
          evidenced by Right Certificates after actual notice that such change or
          adjustment is required); nor shall it by any act hereunder be deemed to make
any           representation or warranty as to the authorization or reservation of any
Common           Shares or other securities to be issued pursuant to this Agreement or
any Right           Certificate or as to whether any Common Shares or other securities
will, when           issued, be validly authorized and issued, fully paid and
nonassessable.  

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

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

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

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

22 

        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 90 days’ notice in writing mailed to the Company and to each
transfer agent of the Common Shares by registered or certified mail and, if such
resignation occurs after the Distribution Date, to the holders of the Right Certificates
by first-class mail. The Company may remove the Rights Agent or any successor Rights
Agent upon 90 days’ notice in writing, mailed to the Rights Agent or successor
Rights Agent, as the case may be, and to each transfer agent of the Common Shares by
registered or certified mail and, if such removal occurs after the Distribution Date, to
the holders of the Right Certificates by first-class mail. If the Rights Agent and the
transfer agent of the Common Shares are the same Person, the appointment of a successor
transfer agent for the Common Shares shall without any further action be the appointment
of such Person as successor Rights Agent. If the Rights Agent and the transfer agent of
the Common Shares are the same Person, notwithstanding the foregoing notice provisions,
(a) prior to the Distribution Date, no notice of resignation or removal need be given to
holders of the Rights, and (b) a resignation notice from, and a removal notice to, the
Rights Agent shall be given upon such number of days’ notice as is specified in the
agreement governing the Rights Agent’s services as transfer agent, as such agreement
may be amended from time to time. If the Rights Agent and the transfer agent are not the
same Person and 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 90 days after giving
notice of such removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right
Certificate (who shall, with such notice, submit his Right Certificate for inspection by
the Company), then the registered holder of any Right Certificate may apply to any court
of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights
Agent, whether appointed by the Company or by such a court, shall be (a) a legal
business entity organized and doing business under the laws of the United States or of
the State of New York or the State of Wisconsin (or of any other state of the United
States so long as such entity is authorized to do business as a banking institution in
the State of New York or the State of Wisconsin), in good standing, having an office or
agency in the State of Wisconsin or the State of New York, which is authorized under such
laws to exercise corporate trust, stock transfer or shareholder services powers and is
subject to supervision or examination by federal or state authority and which has at the
time of its appointment as Rights Agent a combined capital and surplus of at least $50
million, or (b) an Affiliate of a legal business entity described in clause (a) of
this sentence. After appointment, the successor Rights Agent shall be vested with the
same powers, rights, duties and responsibilities as if it had been originally named as
Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver
and transfer to the successor Rights Agent any property at the time held by it hereunder,
and execute and deliver any further assurance, conveyance, act or deed necessary for the
purpose. Not later than the effective date of any such appointment the Company shall file
notice thereof in writing with the predecessor Rights Agent and each transfer agent of
the Common Shares and, if such appointment occurs after the Distribution Date, mail a
notice thereof in writing to the registered holders of the Right Certificates. Failure to
give any notice provided for in this Section 21, however, or any defect therein,
shall not affect the legality or validity of the resignation or removal of the Rights
Agent or the appointment of the successor Rights Agent, as the case may be.  

23 

        Section
22.    Issuance of New Right Certificates.
Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary,
the Company may, at its option, issue new Right Certificates evidencing Rights in such
form as may be approved by the Board to reflect any adjustment or change in the Purchase
Price and the number or kind or class of shares or other securities or property
purchasable under the Right Certificates made in accordance with the provisions of this
Agreement. In addition, in connection with the issuance or sale by the Company of Common
Shares following the Distribution Date and prior to the Expiration Date, the Company (a) will,
with respect to Common Shares so issued or sold pursuant to the exercise, exchange or
conversion of securities (other than Rights) issued prior to the Distribution Date that
are exercisable or exchangeable for, or convertible into, Common Shares and (b) may,
in any other case, if deemed necessary, appropriate or desirable by the Board, issue
Right Certificates representing an equivalent number of Rights as would have been issued
in respect of such Common Shares if they had been issued or sold prior to the
Distribution Date, as appropriately adjusted as provided herein as if they had been so
issued or sold; provided, however, that (i) no such Right Certificate will be issued
if, and to the extent that, in its good faith judgment the Board determines that the
issuance of such Right Certificate could have a material adverse tax consequence to the
Company or to the Person to whom or which such Right Certificate otherwise would be
issued and (ii) no such Right Certificate will be issued if, and to the extent that,
appropriate adjustment otherwise has been made in lieu of the issuance thereof.  

        Section
23.    Redemption. 

        (a)              The
Rights may be redeemed by action of the Board pursuant to
          subsection (b) of this Section 23 and shall not be redeemed in any other
          manner.  

        (b)              The
Board may, at its option, at any time prior to such time as any Person           becomes
an Acquiring Person, redeem all but not less than all the then           outstanding
Rights at a redemption price of $0.001 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
may be made effective at such time on such basis and           with such
conditions as the Board in its sole discretion may           establish.  

24 

        (c)              Immediately
upon the effectiveness of the action of the Board ordering the           redemption of
the Rights pursuant to subsection (b) of this Section 23, and           without any
further action and without any notice, the right to exercise the           Rights will
terminate and the only right thereafter of the holders of Rights           shall be to
receive the Redemption Price. The Company shall promptly give public           notice of
any such redemption; provided, however, that the failure           to give,
or any defect in, any such notice shall not affect the validity of such
          redemption. Within 10 days after the effectiveness of the action of the Board
ordering the redemption of the Rights pursuant to subsection (b),
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.  

        Section
24.    Exchange. 

        (a)              The
Board 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 void pursuant to the
provisions           of Section 11(a)(ii) hereof) for Common Shares at an exchange
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”).           Notwithstanding the foregoing, the Board  shall not
be empowered to           effect such exchange at any time after an Acquiring Person
becomes the           Beneficial Owner of 50% or more of the Common Shares then
outstanding. The           exchange of the Rights by the Board may be made effective as
such time, on such           basis and with such conditions as the Board in its sole
discretion may           establish. Prior to effecting an exchange pursuant to this
Section 24, the           Board  may direct the Company to enter into a
trust agreement in           such form and with such terms as the Board
shall approve (the           “Trust Agreement”). If the Board so
directs, the Company           shall enter into the Trust Agreement and shall issue to
the trust created by the           Trust Agreement (the “Trust”) all of the
Common Shares or common stock           equivalents, to the extent applicable pursuant to
Section 24(c), issuable           pursuant to the exchange (and any cash in lieu of
fractional shares), and all           Persons entitled to receive shares pursuant to the
exchange shall be entitled to           receive such Common Shares or common stock
equivalents (and any dividends or           distributions made thereon after the date on
which such shares are deposited in           the Trust and any cash in lieu of fractional
shares) only from the Trust and           solely upon compliance with the relevant terms
and provisions of the Trust           Agreement.  

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

25 

        (c)              In
any exchange pursuant to this Section 24, the Company, at its option,           may
substitute common stock equivalents (as such term is defined in Section
          11(a)(iii) hereof) for some or all of the Common Shares exchangeable for
Rights.  

        (d)              In
the event that there shall not be sufficient Common Shares or common stock
          equivalents 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 or common stock equivalents for issuance upon exchange of the
          Rights.  

        Section
25.    Notice of Certain Events. 

        (a)              In
case the Company shall propose, after the Distribution Date, (i) to pay any
          dividend payable in stock of any class to the holders of Common Shares or to
          make any other distribution to the holders of Common Shares (other than a
          regular quarterly cash dividend), (ii) to offer to the holders of Common Shares
          rights or warrants to subscribe for or to purchase any additional Common Shares
          or shares of stock of any class or any other securities, rights or options,
          (iii) to effect any reclassification of Common Shares (other than a
          reclassification involving only the subdivision of outstanding Common Shares),
          (iv) to effect any consolidation or merger into or with (other than a merger of
          a Subsidiary into or with the Company), to effect any share exchange with or to
          effect any sale or other transfer (or to permit one or more of its Subsidiaries
          to effect any sale or other transfer), in one or more transactions, of 50% or
          more of the assets or earning power of the Company and its Subsidiaries (taken
          as a whole) to, any other Person, or (v) to effect the liquidation, dissolution
          or winding up of the Company, then, in each such case, the Company shall give
to           each holder of a Right Certificate, in accordance with Section 26
hereof, a           notice of such proposed action, which shall specify the record date
for the           purposes of such stock dividend, or distribution of rights or warrants,
or the           date on which such reclassification, consolidation, merger, share
exchange,           sale, transfer, liquidation, dissolution, or winding up is to take
place and the           date of participation therein by the holders of the Common Shares
if any such           date is to be fixed, and such notice shall be so given in the case
of any action           covered by clause (i) or (ii) above at least 10 days prior to the
record date           for determining holders of Common 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, whichever shall be the earlier.  

        (b)              In
case a Section 11(a)(ii) Event shall occur, then (i) the Company shall           as
soon as practicable thereafter give to each holder of a Right Certificate, in
          accordance with Section 26 hereof, a notice of the occurrence of such
          event, which notice shall include a brief summary of the Section 11(a)(ii)
          Event and the consequences thereof to holders of Rights.  

26 

        Section
26.    Notices. 

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

	 	
MGIC
Investment Corporation
250 East Kilbourn Avenue
Milwaukee, Wisconsin 53202
Attention:
Secretary  

        (b)              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
Certificate to or on the Rights Agent shall be sufficiently given           or made if
sent by overnight delivery service or registered or certified mail,           postage
prepaid, addressed (until another address is filed in writing with the           Company)
as follows:  

	 	
Wells
Fargo Bank, National Association
Attn: Wells Fargo Shareowner Services  
     Manager of Account
Administration
161 North Concord Exchange
South St. Paul, Minnesota 55075-1139  

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

        Section
27.     Supplements and Amendments. Prior to
the Distribution Date and subject to the penultimate sentence of this Section 27,
the Company may and the Rights Agent shall, if the Company so directs, supplement or
amend any provision of this Agreement without the approval of any holders of certificates
representing Common Shares. From and after the Distribution Date and subject to the
penultimate sentence of this Section 27, the Company and the Rights Agent shall, if
the Company so directs, supplement or amend this Agreement without the approval of any
holders of Right Certificates in order (i) to cure any ambiguity, (ii) to correct or
supplement any provision contained herein which may be defective or inconsistent with any
other provision herein, (iii) to shorten or lengthen any time period hereunder, or (iv)
to change or supplement the provisions hereunder in any manner which the Company may deem
necessary or desirable and which shall not adversely affect the interests of the holders
of Right Certificates (other than an Acquiring Person or an Affiliate or Associate of an
Acquiring Person); provided, that from and after the Distribution Date this
Agreement may not be supplemented or amended to lengthen, pursuant to clause (iii) of
this sentence, (A) a time period relating to when the Rights may be redeemed at such time
as the Rights are not then redeemable, or (B) any other time period unless such
lengthening is for the purpose of protecting, enhancing or clarifying the rights of,
and/or the benefits to, the holders of Rights. Upon the delivery of a certificate from an
appropriate officer of the Company which states that the proposed supplement or amendment
is in compliance with the terms of this Section 27, the Rights Agent shall execute
such supplement or amendment. Notwithstanding anything contained in this Agreement to the
contrary, no supplement or amendment shall be made which reduces the then effective
Redemption Price or moves to an earlier date the then effective Final Expiration Date.
Prior to the Distribution Date, the interests of the holders of Rights shall be deemed
coincident with the interests of the holders of Common Shares.  

27 

        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.    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 Right Certificates (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 Right Certificates (and,
prior to the Distribution Date, the Common Shares).  

        Section
30.    Severability. If any term, provision,
covenant or restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, provided that nothing contained
in this Section 30 will affect the ability of the Company under the provisions of Section
27 to supplement or amend this Agreement to replace such invalid, void or unenforceable
term, provision, covenant or restriction with a legal, valid and enforceable term,
provision, covenant or restriction.  

        Section
31.    Governing Law. This Agreement and
each Right Certificate issued hereunder shall be deemed to be a contract made under the
laws of the State of Wisconsin and for all purposes shall be governed by and construed in
accordance with the laws of such State applicable to contracts to be made and performed
entirely within such State.  

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

        Section
33.    Descriptive Headings; Interpretation.
Descriptive headings of the several Sections of this Agreement are inserted for
convenience only and shall not control or affect the meaning or construction of any of
the provisions hereof. Any reference in this Agreement to a statutory or regulatory
provision includes a reference to any successor provision thereof.  

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

28 

        Section
35.    Book-Entry. Reference in this
Agreement to certificates for Common Shares includes, in the case of uncertificated
Common Shares, the balances indicated in the book-entry account system of the transfer
agent for the Common Shares, and prior to the Distribution Date, any uncertificated
Common Shares shall also evidence the associated Rights. Any legend required to be placed
on any certificate for Common Shares may instead be included on any book-entry
confirmation or notification to the registered holder of such Common Shares.  

        Section
36.    Amendment and  Restatement.  This Agreement  amends
and restates the Original Rights Agreement in its entirety, effective at the Amendment
Effective Time 

29 

        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. 

		MGIC INVESTMENT CORPORATION
	Attest:
	
By:  /s/ Joseph J. Ziino, Jr.	By:  /s/ Jeffrey H. Lane
	Title:  Assistant Secretary	Title:  Executive Vice President
	
 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	Attest:
	
By:  /s/ Mark Henning	By:  /s/ Jennifer L. Leno
	Title:  Vice President	Title:  Vice President

30 

		

		EXHIBIT A
		

[Form of Right
Certificate] 

	Certificate No. R-	_______ Rights 

	 	
NOT
EXERCISABLE AFTER AUGUST 17, 2012 (SUBJECT TO EXTENSION) OR EARLIER EXPIRATION OF THE
 RIGHTS AS PROVIDED IN THE RIGHTS AGREEMENT. 

Right Certificate 

MGIC INVESTMENT
CORPORATION 

        This
certifies that ________________, or registered assigns, is the registered owner of the
number of Rights set forth above, each of which entitles the owner thereof, subject to the
terms, provisions and conditions of the Amended and Restated Rights Agreement, dated as of
July 7, 2009, and as such agreement may be amended (the “Rights
Agreement”), between MGIC Investment Corporation, a Wisconsin corporation (the
“Company”), and Wells Fargo Bank, National Association, a national banking
association (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., Milwaukee, Wisconsin time, on August 17, 2012, subject to extension, or
earlier expiration of the Rights as provided under the Rights Agreement at the principal
office of the Rights Agent, or at the office of its successor as Rights Agent, one-half of
one fully paid nonassessable (except as otherwise provided by any corporation law
applicable to the Company) share of common stock, par value $1.00 (“Common
Shares”), of the Company, at a purchase price of $25.00 per Common Share (the
“Purchase Price”) (equivalent to $12.50 for each one-half of a Common Share), upon
presentation and surrender of this Right Certificate with the Form of Election to Purchase
duly executed. The number of Rights evidenced by this Right Certificate (and the number of
Common Shares 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 July 7, 2009,
based on the Common Shares as constituted at such date. As provided in the Rights
Agreement, the Purchase Price and the number of Common Shares which may be purchased upon
the exercise of the Rights evidenced by this Right Certificate are subject to modification
and adjustment upon the happening of certain events. 

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

A-1 

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

        Subject
to the provisions of the Rights Agreement, the Rights evidenced by this Certificate (i)
may be redeemed by the Company at a redemption price of $0.001 per Right or (ii) may
be exchanged in whole or in part for Common Shares. The Board may, at its option, at any
time after any Person becomes an Acquiring Person, but prior to such Person’s
acquisition of 50% or more of the outstanding Common Shares, exchange the Rights evidenced
by this Certificate for Common Shares, at an exchange ratio of one Common Share per Right,
subject to adjustment, as provided in the Rights Agreement. 

        No
fractional Common Shares will be issued upon the exercise or exchange of any Right or
Rights evidenced hereby, but in lieu thereof and subject to the following sentence a cash
payment will be made, as provided in the Rights Agreement. No Rights may be exercised that
would entitle the holder to any fraction of a Common Share greater than one-half of a
Common Share unless concurrently therewith such holder purchases an additional fraction of
a Common Share which, when added to the number of Common Shares to be received upon such
exercise, equals an integral number of Common Shares, as provided in the Rights Agreement. 

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

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

A-2 

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

Dated as of ____________,
____. 

		MGIC INVESTMENT CORPORATION
	Attest:
	

_______________________________________	By:_______________________________________
		Title:_____________________________________
	
Countersigned:
	
WELLS FARGO BANK, NATIONAL ASSOCIATION
	
By:_______________________________________
	          Authorized Signature

 

A-3 

[Form of Reverse Side
of Right Certificate] 

FORM OF ASSIGNMENT 

(To be executed by the
registered holder if such  holder desires to transfer the Right Certificate.)  

        FOR
VALUE  RECEIVED  _______________________________  hereby sells,  assigns and  transfers
 unto  __________________________________________________________________________
(Please print name and address of transferee)
__________________________________________________ this Right Certificate, together with
all right, title and interest therein, and does hereby irrevocably constitute and appoint
_______________________ Attorney, to transfer the within Right Certificate on the books
of the within-named Company, with full power of substitution.  

Dated:____________, ____ 

		____________________________________________
		Signature

Signature Medallion
Guaranteed: 

        The
undersigned hereby certifies that the Rights evidenced by this Right Certificate are not
beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as defined
in the Rights Agreement). 

		____________________________________________
		Signature

A-4 

[Form of Reverse Side
of Right Certificate — continued] 

FORM OF ELECTION TO
PURCHASE

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

To MGIC INVESTMENT CORPORATION: 

        The
undersigned hereby irrevocably elects to exercise__________________ Rights represented by
this Right Certificate to purchase the Common Shares issuable upon the exercise of such
Rights and requests that certificates for such Common Shares be issued in the name of: 

Please insert social security 
or
other identifying number 

	

	(Please print name and address)

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

Please insert social security 
or
other identifying number 

	

	(Please print name and address)

Dated:____________, ____ 

		____________________________________________
		Signature

Signature Medallion
Guaranteed: 

        Signatures
must be guaranteed by a member firm of a registered national securities exchange, a member
of the Financial Industry Regulatory Authority, or a commercial bank or trust company
having an office or correspondent in the United States. 

A-5 

[Form of Reverse Side
of Right Certificate — continued] 

        The
undersigned hereby certifies that the Rights evidenced by this Right Certificate are not
beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as defined
in the Rights Agreement). 

		____________________________________________
		Signature

NOTICE 

        The
signature in the foregoing Forms of Assignment and Election 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. 

A-6 

		

		EXHIBIT B
		

MGIC INVESTMENT
CORPORATION 

SUMMARY OF RIGHTS TO
PURCHASE 
COMMON SHARES 

        On
July 22, 1999, the Board of Directors (the “Board”) of MGIC Investment Corporation (the
“Company”) declared a dividend of one common share purchase right (a
“Right”) for each outstanding share of common stock, $1.00 par value (the
“Common Shares”), of the Company. The dividend was payable on August 9, 1999 to
the shareholders of record on that date (the “Record Date”). Giving effect to the Rights Agreement
referred to below, each Right entitles
the registered holder to purchase from the Company one-half of one Common Share, at a
price of $25.00 per Common Share (equivalent to $12.50 for each one-half of a Common Share),
subject to adjustment (the “Purchase Price”). The description and terms of the
Rights are set forth in an Amended and Restated Rights Agreement (the “Rights
Agreement”) between the Company and Wells Fargo Bank, National Association, as Rights
Agent (the “Rights Agent”). 

        Until
the earlier to occur of (i) 10 days following a public announcement that a person has
become an Acquiring Person or (ii) 10 business days (or such later date as may be
determined by action of the Company’s Board of Directors (the “Board”)
prior to such time as any person becomes an Acquiring Person) following the commencement
of, or announcement of an intention to make, a tender offer or exchange offer the
consummation of which would result in a person becoming an Acquiring Person (the earlier
of such dates being called the “Distribution Date”), the Rights will be
evidenced, with respect to any of the Common Share certificates outstanding as of the
Record Date, by such Common Share certificate. An Acquiring Person is any Person that
becomes, by itself or together with its Affiliates and Associates, a beneficial owner of
5.0% or more of the Common Shares then outstanding, but will not include: 

	 	        (i)              the
Company, its subsidiaries and certain benefit plans of the Company and its
          subsidiaries;  

	 	        (ii)              any
of certain “grandfathered” persons (“Grandfathered           Persons”)
that would otherwise be Acquiring Persons as of the effective           time of the
amendment (as described in the Rights Agreement) and that continue           to qualify
for this status; and  

	 	        (iii)              any
person who or which the Board determines, in its sole discretion, has
          inadvertently become a beneficial owner of 5.0% or more of the Common Shares
          then outstanding (or has inadvertently failed to continue to qualify as a
          Grandfathered Person), provided such person promptly enters into, and delivers
          to the Company, an irrevocable commitment promptly to divest or cause its
          affiliates and associates to divest, and thereafter such person or its
          affiliates and associates promptly divest (without exercising or retaining any
          power, including voting, with respect to such Common Stock), sufficient Common
          Shares so that the percentage stock ownership of such person and its affiliates
          and associates is less than 5.0% (or, in the case of any person who or which has
          inadvertently failed to continue to qualify as a Grandfathered Person, the
          Common Shares that caused such person to so fail to qualify as a Grandfathered
          Person).  

B-1 

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

        The
Rights are not exercisable until the Distribution Date. The Rights will expire on the
earliest to occur of (i) August 17, 2012 (the “Final Expiration Date”); (ii) the time at which the Rights are redeemed
as provided in the Rights Agreement; (iii) the time at which the Rights are exchanged
provided in the Rights Agreement; (iv) the repeal of Section 382 if the Board determines
that the Rights Agreement is no longer necessary for the preservation of the net operating loss carryovers, other
tax carryovers and tax benefits of the Company and its subsidiaries that would have been affected by such section (the “Tax Benefits”);
and (v) the beginning of a taxable year of the Company to which the Board determines that
no Tax Benefits may be carried forward. 

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

        In
the event that any person becomes an Acquiring Person (a “Flip-In Event”), each
holder of a Right (except as otherwise provided in the Rights Agreement) will thereafter
have the right to receive upon exercise that number of Common Shares (or, in certain
circumstances cash, property or other securities of the Company or a reduction in the
Purchase Price) having a market value of two times the then current Purchase Price.
Notwithstanding any of the foregoing, following the occurrence of a Flip-In Event all
Rights that are, or (under certain circumstances specified in the Rights Agreement) were,
or subsequently become beneficially owned by an Acquiring Person, related persons and
transferees will be null and void. 

B-2 

        With
certain exceptions, no adjustment in the Purchase Price will be required until cumulative
adjustments require an adjustment of at least 1% in such Purchase Price. No fractional
Common Shares will be issued in connection with the exercise or exchange of Rights. 

        At
any time after a person becomes an Acquiring Person and prior to the acquisition by such
Acquiring Person of 50% or more of the outstanding Common Shares, the Board
may exchange the Rights (other than Rights owned by any Acquiring Person
which have become void), in whole or in part, at an exchange ratio of one Common Share per
Right (subject to adjustment). 

        In
lieu of issuing fractional Common Shares equal to one-half of a Common Share or less upon
the exercise of Rights, the Company will pay cash with an equivalent value based on the
market price of the Common Shares on the last trading day prior to the date of exercise.
No Rights may be exercised that would entitle the holder thereof to any fractional Common
Share greater than one-half of a Common Share unless concurrently therewith such holder
purchases an additional fraction of a Common Share which when added to the number of
Common Shares to be received upon such exercise, equals an integral number of Common
Shares. In lieu of issuing fractional Common Shares upon the exchange of Rights, the
Company will pay cash with an equivalent value based on the market price of the Common
Shares on the last trading day prior to the date of exchange. 

        The
Purchase Price is payable by certified check, cashier’s check, bank draft or money
order or, if so provided by the Company, the Purchase Price following the occurrence of a
Flip-In Event may be paid in Common Shares having an equivalent value. 

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

        Other
than amendments that would change the Redemption Price or move to an earlier date the
Final Expiration Date, the terms of the Rights may be amended by the Board without the
consent of the holders of the Rights, except that from and after the Distribution Date no
such amendment may adversely affect the interests of the holders of the Rights. 

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

B-3

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