Document:

Exhibit 4.1

 Exhibit 4.1 

 
  
 STOCKHOLDER PROTECTION RIGHTS AGREEMENT 
 dated as of 

October 28, 2011 
 between 
 OPTICAL CABLE CORPORATION 

and 
 AMERICAN
STOCK TRANSFER & TRUST COMPANY, LLC 
 as Rights Agent 

 
  

 Table of Contents 

 

							
			
	 	  	 	  	Page	 
			
	 ARTICLE I
	  	 DEFINITIONS
	  	 	2	  
			
	 1.1
	  	 Definitions
	  	 	2	  
			
	 ARTICLE II
	  	 THE RIGHTS
	  	 	13	  
			
	 2.1
	  	 Summary of Rights
	  	 	13	  
			
	 2.2
	  	 Legend on Common Stock Certificates
	  	 	13	  
			
	 2.3
	  	 Exercise of Rights; Separation of Rights
	  	 	15	  
			
	 2.4
	  	 Adjustments to Exercise Price; Number of Rights
	  	 	19	  
			
	 2.5
	  	 Date on Which Exercise is Effective
	  	 	22	  
			
	 2.6
	  	 Execution, Authentication, Delivery and Dating of Rights Certificates
	  	 	23	  
			
	 2.7
	  	 Registration, Registration of Transfer and Exchange
	  	 	23	  
			
	 2.8
	  	 Mutilated, Destroyed, Lost and Stolen Rights Certificates
	  	 	25	  
			
	 2.9
	  	 Persons Deemed Owners
	  	 	26	  
			
	 2.10
	  	 Delivery and Cancellation of Certificates
	  	 	26	  
			
	 2.11
	  	 Agreement of Rights Holders
	  	 	27	  
			
	 ARTICLE III
	  	 ADJUSTMENTS TO THE RIGHTS IN THE EVENT OF CERTAIN TRANSACTIONS
	  	 	28	  
			
	 3.1
	  	 Flip-in
	  	 	28	  
			
	 3.2
	  	 Flip-over
	  	 	34	  
			
	 ARTICLE IV
	  	 THE RIGHTS AGENT
	  	 	35	  
			
	 4.1
	  	 General
	  	 	35	  
			
	 4.2
	  	 Merger or Consolidation or Change of Name of Rights Agent
	  	 	37	  
			
	 4.3
	  	 Duties of Rights Agent
	  	 	38	  
			
	 4.4
	  	 Change of Rights Agent
	  	 	42	  
			
	 ARTICLE V
	  	 MISCELLANEOUS
	  	 	44	  
			
	 5.1
	  	 Redemption
	  	 	44	  
			
	 5.2
	  	 Expiration
	  	 	44	  
			
	 5.3
	  	 Issuance of New Rights Certificates
	  	 	44	  
			
	 5.4
	  	 Supplements and Amendments
	  	 	45	  
			
	 5.5
	  	 Fractional Shares
	  	 	46	  
			
	 5.6
	  	 Rights of Action
	  	 	47	  

  
 i 

 Table of Contents 
 (continued) 
  

							
			
	 	  	 	  	Page	 
			
	 5.7
	  	 Holder of Rights Not Deemed a Stockholder
	  	 	48	  
			
	 5.8
	  	 Notice of Proposed Actions
	  	 	48	  
			
	 5.9
	  	 Notices
	  	 	48	  
			
	 5.10
	  	 Suspension of Exercisability or Exchangeability
	  	 	49	  
			
	 5.11
	  	 Costs of Enforcement
	  	 	50	  
			
	 5.12
	  	 Successors
	  	 	50	  
			
	 5.13
	  	 Benefits of this Agreement
	  	 	50	  
			
	 5.14
	  	 Determination and Actions by the Board of Directors, etc
	  	 	51	  
			
	 5.15
	  	 Fiduciary Responsibilities of the Board of Directors
	  	 	51	  
			
	 5.16
	  	 Descriptive Headings; Section References
	  	 	52	  
			
	 5.17
	  	 GOVERNING LAW; EXCLUSIVE JURISDICTION
	  	 	52	  
			
	 5.18
	  	 Counterparts
	  	 	53	  
			
	 5.19
	  	 Severability
	  	 	53	  
			
	 5.20
	  	 USA PATRIOT Act
	  	 	54	  

  
 ii 

 STOCKHOLDER PROTECTION RIGHTS AGREEMENT 

STOCKHOLDER PROTECTION RIGHTS AGREEMENT (as amended from time to time, this “Agreement”), dated as of October 28, 2011,
between Optical Cable Corporation, a Virginia corporation (the “Company”), and American Stock Transfer & Trust Company, LLC, a New York limited liability trust company, as Rights Agent (the “Rights Agent”), which term
shall include any successor Rights Agent hereunder). 
 WITNESSETH: 

WHEREAS, the Board of Directors of the Company has (a) authorized and declared a dividend of one right (“Right”) in
respect of each share of Common Stock (as hereinafter defined) held of record as of the Close of Business (as hereinafter defined) on November 2, 2011 (the “Record Time”) payable in respect of each such share on November 2, 2011,
and (b) as provided in Section 2.4, authorized the issuance of one Right (as such number may hereinafter be adjusted pursuant to the provisions of Section 2.11) in respect of each share of Common Stock issued after the Record Time and
prior to the Separation Time (as hereinafter defined) and, to the extent provided in Section 5.3, each share of Common Stock issued after the Separation Time; 
 WHEREAS, each Right entitles the holder thereof, after the Separation Time, to purchase securities or assets of the Company (or, in certain cases, securities of certain other entities) pursuant to the
terms and subject to the conditions set forth herein; and 
 WHEREAS, the Company desires to appoint the Rights Agent to act on
behalf of the Company, and the Rights Agent is willing to so act, in connection with the issuance, transfer, exchange and replacement of Rights Certificates (as hereinafter defined), the exercise of Rights and other matters referred to herein.

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

DEFINITIONS 
 1.1 Definitions. For purposes of this Agreement, the following terms have the meanings indicated: 
 “Acquiring Person” shall mean any Person who, together with all Affiliates and Associates of such Person, is or becomes the Beneficial Owner of 15% or more of the outstanding shares of Common
Stock; provided, however, that the term “Acquiring Person” shall not include any Person who, together with all Affiliates and Associates of such Person, (i) is the Beneficial Owner of 15% or more of the outstanding shares of Common
Stock prior to the first public announcement of the adoption of this Agreement, until such time thereafter as such Person shall become the Beneficial Owner (other than by means of a stock dividend or stock split) of any additional shares of Common
Stock while such Person, together with all Affiliates and Associates of such Person, is the Beneficial Owner of 15% or more of the outstanding shares of Common Stock; (ii) becomes the Beneficial Owner of 15% or more of the outstanding shares of
Common Stock but who (in the good faith determination of the Board of Directors) acquired Beneficial Ownership of shares of Common Stock without any plan or intention to obtain, change or influence the control of the Company if such Person promptly
divests, or promptly enters into an agreement with, and satisfactory to, the Board of Directors, in the Board of Director’s sole discretion, to divest, and subsequently divests in accordance with the terms of such agreement (without exercising
or retaining any power, including, without limitation, voting power, with respect to such shares), sufficient shares of Common Stock (or securities convertible into, exchangeable into or exercisable for Common Stock or otherwise deemed to be
Beneficially 

  
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Owned by such Person) so that such Person, together with all Affiliates and Associates of such Person, ceases to be the Beneficial Owner of 15% or more of the outstanding shares of Common Stock;
(iii) becomes the Beneficial Owner of 15% or more of the outstanding shares of Common Stock solely as a result of a reduction in the number of shares of Common Stock outstanding due to the repurchase of shares of Common Stock by the Company (or
any Subsidiary of the Company, any employee benefit plan of the Company or of any Subsidiary of the Company, or any Person or entity organized, appointed or established by the Company for or pursuant to the terms of any such plan) unless and until
such Person, after becoming aware that such Person has become the Beneficial Owner of 15% or more of the then outstanding shares of Common Stock, acquires Beneficial Ownership (other than by means of a stock dividend or stock split) of any
additional shares of Common Stock; or (iv) Beneficially Owns shares of Common Stock consisting solely of one or more of (A) shares of Common Stock that are Beneficially Owned pursuant to the grant or exercise of an option granted to such
Person (an “Option Holder”) by the Company in connection with an agreement to merge with, or acquire, the Company entered into prior to a Flip-in Date, (B) shares of Common Stock (or securities convertible into, exchangeable into or
exercisable for Common Stock) Beneficially Owned by such Option Holder or its Affiliates or Associates at the time of grant of such option, and (C) shares of Common Stock (or securities convertible into, exchangeable into or exercisable for
Common Stock) acquired by Affiliates or Associates of such Option Holder after the time of such grant that, in the aggregate, amount to less than 1% of the outstanding shares of Common Stock. Notwithstanding anything to the contrary in this
Agreement, the Company, any Subsidiary of the Company and any employee stock ownership or other employee benefit plan of the Company or a Subsidiary of the Company (or any Person, entity or trustee holding shares of Common Stock for or pursuant to

  
 3 

 
the terms of any such plan or for the purpose of funding any such plan or funding other employee benefits for employees of the Company or of any Subsidiary of the Company) shall not be an
Acquiring Person. 
 “Act” shall mean the Securities Act of 1933, as amended. 

“Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 under the
Exchange Act, as such Rule is in effect on the date of this Agreement. 
 “Agreement” shall have the meaning set forth
in the Preamble. 
 “Applicable Expiration Date” shall have the meaning set forth in Section 5.19. 

A Person shall be deemed the “Beneficial Owner,” and to have “Beneficial Ownership” of, and to “Beneficially
Own,” any securities (i) which such Person or any of such Person’s Affiliates or Associates is or may be deemed to be the beneficial owner, directly or indirectly, pursuant to Rules 13d-3 and 13d-5 under the Exchange Act, as such
Rules are in effect on the date of this Agreement; (ii) which such Person or any of such Person’s Affiliates or Associates has the right to become the Beneficial Owner (whether such right is exercisable immediately or only after the
passage of time or the occurrence of conditions), directly or indirectly, pursuant to any agreement, arrangement or understanding, whether or not in writing (other than customary agreements with and between underwriters and selling group members
with respect to a bona fide public offering of securities), or upon the exercise of conversion rights, exchange rights, rights (other than the Rights), warrants or options, or otherwise; (iii) which are Beneficially Owned, directly or
indirectly, by any other Person or any of such other Person’s Affiliates or Associates with which such first Person or any of such first Person’s Affiliates or Associates has any agreement, arrangement or understanding, whether or not in
writing, (x) for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described in clause (B) of the 

  
 4 

 
proviso to this sentence) or disposing of any voting securities of the Company, or (y) to cooperate in obtaining, changing or influencing the control of the Company; and (iv) which such
Person or any of such Person’s Affiliates or Associates is determined to Constructively Own; provided, however, that a Person shall not be deemed the “Beneficial Owner,” or to have “Beneficial Ownership” of, or to
“Beneficially Own,” any security (A) solely because such security has been tendered pursuant to a tender or exchange offer made by such Person or any of such Person’s Affiliates or Associates until such tendered security is
accepted for payment or exchange, or (B) solely because such Person or any of such Person’s Affiliates or Associates has or shares the power to vote or direct the voting of such security pursuant to a revocable proxy given in response to a
public proxy solicitation made to more than ten holders of shares of a class of stock of the Company registered under Section 12 of the Exchange Act and pursuant to, and in accordance with, the applicable rules and regulations under the
Exchange Act, except if such power (or the arrangements relating thereto (whether or not in writing)) is then reportable under Item 6 of Schedule 13D under the Exchange Act (or any similar provision of a comparable or successor report).
Notwithstanding the foregoing, no officer or director of the Company shall be deemed to Beneficially Own any securities of any other Person solely by virtue of any actions that such officer or director takes in such capacity. For purposes of this
Agreement, in determining the percentage of the outstanding shares of Common Stock with respect to which a Person is the Beneficial Owner, all shares as to which such Person is deemed the Beneficial Owner shall be deemed to be outstanding.

 “Board of Directors” shall mean the Board of Directors of the Company. 

  
 5 

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

“Close of Business” on any given date shall mean 5:00 p.m. New York City time on such date or, if such date is not a Business
Day, 5:00 p.m. New York City time on the next succeeding Business Day. 
 “Closing Price,” with respect to any
security, shall mean the last sale price, regular way, on a specific Trading Day or, in case no such sale takes place on such Trading 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 NYSE or the Nasdaq Stock Market or, if such security is not then listed or admitted to trading on the NYSE or the Nasdaq Stock Market, as
reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which such security is listed or admitted to trading or, if such security is not then listed or
admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by The Nasdaq Stock Market, Inc. automated quotations
system or such other system then in use, or, if on any such Trading Day such security is not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in such
security selected by the Board of Directors; provided, however, that if on any such date the securities are not so listed or traded, the closing price per share of such securities on such date shall mean the fair value per share of such securities
on such date as determined in good faith by the Board of Directors, after consultation with a nationally 

  
 6 

 
recognized investment banking firm, and set forth in a certificate delivered to the Rights Agent, which determination shall be binding on the Rights Agent, the holders of Rights and all other
Persons. 
 “Common Stock” when used with reference to the Company, shall mean the shares of common stock, no par
value, of the Company. “Common Stock” when used with reference to any Person other than the Company shall mean the capital stock of such other Person with the greatest voting power or, if such Person is a Subsidiary of another Person, the
equity securities or other equity interest having power to control or direct the management of such Person. 

“Company” shall have the meaning set forth in the Preamble. 

A Person shall be deemed to “Constructively Own” shares of Common Stock in respect of which such Person has a Synthetic Long
Position, calculated in the manner set forth below. The number of shares of Common Stock in respect of a Synthetic Long Position that shall be deemed to be Constructively Owned is the notional or other number of shares of Common Stock in respect of
such Synthetic Long Position that is specified in a filing by such Person or any of such Person’s Affiliates or Associates with the Securities and Exchange Commission or in the documentation evidencing such Synthetic Long Position as the basis
upon which the value or settlement amount of such right or derivative, or the opportunity of the holder of such right or derivative to profit or share in any profit, is to be calculated in whole or in part, and in any case (or if no such number of
shares of Common Stock is specified in any filing or documentation), as determined by the Board of Directors or the Rights Plan Committee in good faith to be the number of shares of Common Stock to which such Synthetic Long Position relates.

 “Customer Identification Program” shall have the meaning set forth in Section 5.20. 

“Election to Exercise” shall have the meaning set forth in Section 2.3(d). 

  
 7 

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

 “Exchange Ratio” shall have the meaning set forth in Section 3.1(c). 

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

 “Exercise Price” shall mean, as of any date, the price at which a holder may purchase the securities issuable upon
exercise of one whole Right. Until adjustment thereof in accordance with the terms hereof, the Exercise Price shall equal $25 per Right. 
 “Expansion Factor” shall have the meaning set forth in Section 2.4(a). 
 “Expiration Time” shall mean the earliest of (i) the Exchange Time, (ii) the Redemption Time, (iii) the Close of Business on the tenth (10th) anniversary of the Record Time and (iv) immediately prior
to the effective time of a consolidation, merger or share exchange of the Company (A) into another corporation or (B) with another corporation pursuant to which the Company is the surviving corporation but Common Stock is converted into
cash and/or securities of another corporation, in either case, pursuant to an agreement entered into by the Company prior to the Stock Acquisition Announcement Date. 
 “Flip-in Date” shall mean the date any Person becomes an Acquiring Person. 
 “Flip-over Entity,” for purposes of Section 3.2, shall mean (i) in the case of a Flip-over Transaction or Event described in clause (i) of the definition thereof, the Person
issuing any securities into which shares of Common Stock are being converted or exchanged and, if no such securities are being issued, the other Person that is a party to such Flip-over Transaction or Event, and (ii) in the case of a Flip-over
Transaction or Event referred to in clause (ii) of the definition thereof, the Person receiving the greatest portion of the (A) assets or, if (A) is not readily determinable, (B) operating income or cash flow being transferred in
such Flip-over Transaction or Event, provided in all cases that if such Person is a Subsidiary of another Person, the ultimate parent entity of such Person shall be the Flip-over Entity. 

  
 8 

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

“Flip-over Transaction or Event” shall mean a transaction or series of transactions, on or after a Flip-in Date, in which,
directly or indirectly, (i) the Company shall consolidate or merge or participate in a share exchange with any other Person if, at the time of consummation of the consolidation, merger or share exchange or at the time the Company enters into
any agreement with respect to any such consolidation, merger or share exchange, the Acquiring Person is the Beneficial Owner of 90% or more of the outstanding shares of Common Stock or controls the Board of Directors and either (A) any term of
or arrangement concerning the treatment of shares of capital stock in such consolidation, merger or share exchange relating to the Acquiring Person is not identical to the terms and arrangements relating to other holders of the Common Stock, or
(B) the Person with whom the transaction or series of transactions occurs is the Acquiring Person or an Affiliate or Associate of the Acquiring Person; or (ii) the Company shall sell or otherwise transfer (or one or more of its
Subsidiaries shall sell or otherwise transfer) assets (A) aggregating more than 50% of the assets (measured by either book value or fair market value) or (B) generating more than 50% of the operating income or cash flow, in each case of
the Company and its Subsidiaries (taken as a whole) to any Person (other than the Company or one or more of its wholly owned Subsidiaries) or to two or more such Persons that are Affiliates or Associates or are otherwise acting in concert, if, at
the time of the entry by the Company (or any such Subsidiary) into an agreement with respect to such sale or transfer of assets, the Acquiring 

  
 9 

 
Person is the Beneficial Owner of 90% of more of the outstanding shares of Common Stock or controls the Board of Directors. For purposes of the foregoing definition, the term “Acquiring
Person” shall include any Acquiring Person and its Affiliates and Associates, counted together as a single Person. An Acquiring Person shall be deemed to control the Board of Directors when, on or following a Stock Acquisition Announcement
Date, the persons who were directors of the Company (or persons nominated and/or appointed as directors by vote of a majority of such persons) before the Stock Acquisition Announcement Date shall cease to constitute a majority of the Board of
Directors. 
 “Market Price” of any security on any date shall mean the average of the daily Closing Prices of such
security on each of the 20 consecutive Trading Days through and including the Trading Day immediately preceding, but not including, such date; provided, however, that if any event described in Section 2.4, or any analogous event, shall have
caused the Closing Prices used to determine the Market Price on any Trading Days during such period of 20 Trading Days not to be fully comparable with the Closing Price on such date, each such Closing Price so used shall be appropriately adjusted by
the Board of Directors in order to make it fully comparable with the Closing Price on such date. 
 “NYSE” shall mean
the New York Stock Exchange, Inc. 
 “Option Holder” shall have the meaning set forth in the definition of Acquiring
Person. 
 “Person” shall mean any individual, firm, corporation, partnership, business trust, trust, an incorporated
association, syndicate, group (as such term is used in Rule 13d-5 under the Exchange Act, as such Rule is in effect on the date of this Agreement) or other entity, including, in each case, any successor thereof. 

  
 10 

 “Preferred Stock” shall mean the Series A Participating Preferred Stock, no par
value, of the Company. 
 “Record Time” shall have the meaning set forth in the Recitals. 

“Redemption Price” shall mean an amount equal to $0.0001 per Right, as such amount may be appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date of this Agreement. 
 “Redemption Time”
shall mean the time at which the right to exercise the Rights shall terminate pursuant to Section 5.1. 
 “Right”
shall have the meaning set forth in the Recitals. 
 “Rights Agent” shall have the meaning set forth in the Preamble.

 “Rights Certificate” shall have the meaning set forth in Section 2.3(c). 

“Rights Plan Committee” shall have the meaning set forth in Section 5.19. 

“Rights Register” shall have the meaning set forth in Section 2.7(a). 

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

  
 11 

 “Stock Acquisition Announcement Date” shall mean the first date of public
announcement by the Company (by any means) or by an Acquiring Person (including by means of filing a Schedule 13D or Schedule 13G under the Exchange Act (or any comparable or successor report or schedule) or an amendment thereto) that a Person has
become an Acquiring Person. 
 “Subsidiary” of any Person shall mean any corporation or other entity of which a
majority of the voting power of the equity securities or a majority of the equity or ownership interests is Beneficially Owned, directly or indirectly, by such Person. 
 “Synthetic Long Position” shall mean any option, warrant, convertible security, stock appreciation right, swap agreement or other security, contract right or derivative position, whether or not
presently exercisable, that has an exercise or conversion privilege or a settlement payment or mechanism at a price related to the value of Common Stock or a value determined in whole or part with reference to, or derived in whole or in part from,
the value of Common Stock and that increases in value as the value of Common Stock increases or that provides to the holder an opportunity, directly or indirectly, to profit or share in any profit derived from any increase in the value of Common
Stock, in any case without regard to whether (i) such derivative conveys any voting rights in such securities to such Person or any of such Person’s Affiliates or Associates, (ii) such derivative is required to be, or capable of
being, settled through delivery of such securities, or (iii) such Person or any of such Person’s Affiliates or Associates may have entered into other transactions that hedge the economic effect of such derivative. A Synthetic Long Position
shall not include any interests, rights, options or other securities set forth in Rule 16a-1(c)(1)-(5) or (7) under the Exchange Act. 

  
 12 

 “Trading Day,” when used with respect to any securities, shall mean a day on which
the Nasdaq Stock Market is open for the transaction of business or, if such securities are not listed or admitted to trading on the Nasdaq Stock Market, a day on which the principal national securities exchange on which such securities are listed or
admitted to trading is open for the transaction of business or, if such securities are not listed or admitted to trading on any national securities exchange, a Business Day. 
 “Trading Regulation” shall have the meaning set forth in Section 2.3(c). 
 “Trust” shall have the meaning set forth in Section 3.1(c). 

“Trust Agreement” shall have the meaning set forth in Section 3.1(c). 

ARTICLE II 

THE RIGHTS 

2.1 Summary of Rights. As soon as practicable after the Record Time, the Company will make a summary of the terms of the Rights
available to any holder of Rights who may so request from time to time prior to the Expiration Time. 
 2.2 Legend on Common
Stock Certificates. Certificates for the Common Stock issued (whether originally issued or from the Company’s treasury) on or after the Record Time but prior to the Separation Time shall evidence one Right for each share of Common Stock
represented thereby and shall have impressed on, printed on, written on or otherwise affixed to them substantially the following legend: 

Until the Separation Time (as defined in the Rights Agreement referred to below), this certificate also evidences and entitles the holder hereof to
certain Rights as set forth in a Stockholder Protection Rights Agreement, dated as of October 28, 2011 (as such may be amended from time to time, the “Rights Agreement”), between Optical Cable Corporation (the “Company”) and
American Stock Transfer & Trust Company, LLC, as Rights Agent, the terms of which are hereby incorporated herein by reference and a copy 

  
 13 

 
of which is on file at the principal executive offices of the Company. Under certain circumstances, as set forth in the Rights Agreement, such Rights may be redeemed, may become exercisable for
securities or assets of the Company or securities of another entity, may be exchanged for shares of Common Stock or other securities or assets of the Company, may expire, may become null and void (including, if they are “Beneficially
Owned” by an “Acquiring Person” or an “Affiliate” or “Associate” thereof (as such terms are defined in the Rights Agreement, or by any transferee of any of the foregoing)) or may be evidenced by separate
certificates and may no longer be evidenced by this certificate. The Company will mail or arrange for the mailing of a copy of the Rights Agreement to the holder of this certificate without charge after the receipt of a written request therefor.

 Certificates representing shares of Common Stock that are issued and outstanding at the Record Time shall evidence one Right
for each share of Common Stock evidenced thereby notwithstanding the absence of the foregoing legend. Notwithstanding the foregoing, neither the omission of a legend nor the inclusion of a legend that makes reference to a rights agreement other than
the Agreement shall affect the enforceability of any part of this Agreement or the rights of any holder of Rights. 
 If the
Common Stock issued after the Record Time but prior to the Separation Time shall be uncertificated, the registration of such Common Stock on the stock transfer books of the Company shall evidence one Right for each share of Common Stock represented
thereby. The Company shall mail or arrange for the mailing of a copy of this Agreement to any Person that holds Common Stock, as evidenced by the registration of the Common Stock in the name of such Person on the stock transfer books of the Company,
without charge after the receipt of a written request therefor, and the Company shall cause the transfer agent for the Common Stock to include on each direct registration account statement with respect to the Common Stock issued prior to the
Separation Time an appropriate notation to reflect the issuance of the Rights. 

  
 14 

 2.3 Exercise of Rights; Separation of Rights. 

(a) Subject to Sections 3.1, 5.1 and 5.10 and subject to adjustment as herein set forth, each Right will entitle the holder thereof, at
or after the Separation Time and prior to the Expiration Time, to purchase, for the Exercise Price, one one-thousandth of a share of Preferred Stock. 
 (b) Until the Separation Time, (i) no Right may be exercised and (ii) each Right will be evidenced by the certificate for the associated share of Common Stock (or, if the Common Stock shall be
uncertificated, by the registration of the associated Common Stock on the stock transfer books of the Company and the confirmation thereof provided for in Section 2.2), and will be transferable only together with, and will be transferred by a
transfer (whether with or without such letter or confirmation) of, such associated share. 
 (c) Subject to the terms and
conditions hereof, at or after the Separation Time and prior to the Expiration Time, the Rights (i) may be exercised pursuant to Section 2.3(d) below and (ii) may be transferred independent of shares of Common Stock. Promptly
following the Separation Time (provided that the Board of Directors has not elected to exchange all of the then outstanding Rights pursuant to Section 3.1(c)), the Rights Agent or the transfer agent for the Common Stock, if requested by the
Company and provided with the necessary information, will mail to each holder of record of Common Stock as of the Separation Time (other than any Person whose Rights have become null and void pursuant to Section 3.1(b)), at such holder’s
address as shown by the records of the Company (and the Company hereby agrees to furnish copies of such records to the Rights Agent for this purpose), (x) a certificate (a “Rights Certificate”) in substantially the form of Exhibit A
hereto appropriately completed, representing the number of Rights held by such holder at the Separation Time and having such marks of identification or 

  
 15 

 
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 and as do not affect
the rights, liabilities, responsibilities or duties of the Rights Agent, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any national securities exchange or
quotation system on which the Common Stock or the Rights may from time to time be listed or traded (“Trading Regulation”), or to conform to usage, and (y) a disclosure statement describing the Rights; provided, however, that the
Company shall have no obligation to distribute Rights Certificates to any Acquiring Person or Affiliate or Associate of an Acquiring Person or any transferee of any of the foregoing. Receipt of a Rights Certificate by any Person shall not preclude a
later determination that such Rights are null and void pursuant to Section 3.1(b). To the extent applicable, the Company may implement such procedures as it deems appropriate, in its sole discretion, to minimize the possibility that Rights are
received by Persons with respect to whom Rights would be null and void under Section 3.1(b). 
 (d) Subject to the terms
and conditions hereof, Rights may be exercised on any Business Day at or after the Separation Time and prior to the Expiration Time by submitting to the Rights Agent the Rights Certificate evidencing such Rights with an Election to Exercise (an
“Election to Exercise”) substantially in the form attached to the Rights Certificate duly executed and properly completed, accompanied by payment in cash, or by certified or official bank check or money order payable to the order of the
Company, of a sum equal to the Exercise Price multiplied by the number of Rights being exercised and a sum sufficient to cover any tax or charge that may be payable in respect of any transfer involved in the transfer or delivery of Rights
Certificates or the issuance or delivery of certificates (or, if uncertificated, the registration on the stock transfer books of the Company) for shares or depositary receipts (or both) in a name other than that of the holder of the Rights being
exercised. 

  
 16 

 (e) Upon receipt of a Rights Certificate, with a duly executed and properly completed
Election to Exercise accompanied by payment as set forth in Section 2.3(d), and subject to the terms and conditions hereof, the Rights Agent will thereupon promptly (i)(A) requisition from the transfer agent for the Common Stock certificates
evidencing such number of shares or other securities to be purchased or, in the case of uncertificated shares or other securities, requisition from the transfer agent a notice setting forth such number of shares or other securities to be purchased
for which registration will be made on the stock transfer books of the Company (the Company hereby irrevocably authorizing the transfer agent to comply with all such requisitions), and (B) if the Company elects pursuant to Section 5.5 not
to issue certificates (or effect registrations on the stock transfer books of the Company) representing fractional shares, requisition from the depositary selected by the Company depositary receipts representing the fractional shares to be purchased
(the Company hereby irrevocably authorizes each depositary to comply with all such requisitions); (ii) when necessary to comply with this Agreement, requisition from the Company the amount of cash to be paid in lieu of fractional shares in
accordance with Section 5.5; (iii) after receipt of such certificates, depositary receipts and/or notices, cause the same to be delivered to or upon the order of the registered holder of such Rights Certificate, registered in such name or
names as may be designated by such holder; and (iv) when necessary to comply with this Agreement, after receipt, promptly deliver such cash to or upon the order of the registered holder of such Rights Certificate. 

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

  
 17 

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

(h) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake
any action with respect to the exercise or assignment of a Rights Certificate unless the registered holder of such Rights Certificate shall have (i) duly executed and properly completed the certificate following the Form of Assignment or the
Form of Election to Exercise, as applicable, set forth on the reverse side of the Rights Certificate surrendered for such exercise or assignment; (ii) provided such additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) thereof 

  
 18 

 
and of the Rights evidenced thereby, and the Affiliates and Associates of such Beneficial Owner or former Beneficial Owner, as the Company or the Rights Agent may reasonably request; and
(iii) paid a sum sufficient to cover any tax or charge that may be imposed in connection with any transfer, split up, combination or exchange of Right Certificates as required under Section 2.3(d). 

2.4 Adjustments to Exercise Price; Number of Rights. 
 (a) In the event that the Company shall at any time after the Record Time and prior to the Separation Time (i) declare or pay a dividend on the Common Stock payable in Common Stock,
(ii) subdivide the outstanding Common Stock or (iii) combine the outstanding Common Stock into a smaller number of shares of Common Stock, (x) the Exercise Price in effect after such event will be equal to the Exercise Price in effect
immediately prior to such event divided by the number of shares of Common Stock, including any fractional shares in lieu of which such holder received cash (the “Expansion Factor”), that a holder of one share of Common Stock immediately
prior to such dividend, subdivision or combination would hold thereafter as a result thereof, (y) each Right held prior to such event will become that number of Rights equal to the Expansion Factor, and the adjusted number of Rights will be
deemed to be distributed among the shares of Common Stock with respect to which the original Rights were associated (if they remain outstanding) and the shares issued in respect of such dividend, subdivision or combination, so that each such share
of Common Stock will have exactly one Right associated with it and (z) the number of one one-thousandths of a share of Preferred Stock purchasable after such event upon proper exercise of each Right will be equal to the number of one
one-thousandths of a share of Preferred Stock so purchasable immediately prior to such event divided by the Expansion Factor. Each adjustment made pursuant to this paragraph shall be made as of the payment or effective date for the applicable
dividend, subdivision or combination. 

  
 19 

 In the event that the Company shall at any time after the Record Time and prior to the
Separation Time issue any shares of Common Stock otherwise than in a transaction referred to in the preceding paragraph, each such share of Common Stock so issued shall automatically have one new Right associated with it, which Right shall be
evidenced by the certificate representing such share (or, if the Common Stock shall be uncertificated, such Right shall be evidenced by the registration of such Common Stock on the stock transfer books of the Company and the confirmation thereof
provided for in Section 2.2). Rights shall be issued by the Company in respect of shares of Common Stock that are issued or sold by the Company after the Separation Time only to the extent provided in Section 5.3. 

(b) In the event that the Company shall at any time after the Record Time and prior to the Separation Time issue or distribute any
securities or assets in respect of, in lieu of or in exchange for the Common Stock (other than pursuant to any non-extraordinary periodic cash dividend or a dividend paid solely in Common Stock), whether by dividend, in a reclassification or
recapitalization (including, without limitation, any such transaction involving a merger, consolidation or statutory share exchange), or otherwise, the Company shall make such adjustments, if any, in the Exercise Price, number of Rights and/or
securities or other property purchasable upon exercise of Rights as the Board of Directors, in its sole discretion, may deem to be appropriate under the circumstances in order to adequately protect the interests of the holders of Rights generally,
and the Company and the Rights Agent shall amend this Agreement as necessary to provide for such adjustments. 
 (c) In the
event that the Company shall at any time after the date of this Agreement (A) declare a dividend on the shares of Preferred Stock payable in shares of Preferred Stock, (B) subdivide the outstanding shares of Preferred Stock,
(C) combine the outstanding 

  
 20 

 
shares of Preferred Stock into a smaller number of shares of Preferred Stock or (D) issue any shares of its capital stock in a reclassification or recapitalization of the shares of Preferred
Stock (including, without limitation, any such transaction in connection with a merger, consolidation or statutory share exchange) the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such
subdivision, combination, reclassification or recapitalization 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 that, if such Right had been exercised immediately prior to such date and at a time when the Preferred Stock transfer books of the Company were open, such holder would have owned upon
such exercise and been entitled to receive by virtue of such dividend, subdivision, combination, reclassification or recapitalization. 
 (d) In the event that the Company shall at any time after the date of this Agreement issue or distribute any securities or assets in respect of, in lieu of or in exchange for the Preferred Stock (other
than pursuant to any non-extraordinary periodic cash dividend or a transaction described in Section 2.4(c)), whether by dividend or otherwise, the Company shall make such adjustments, if any, in the Exercise Price, number of Rights and/or
securities or other property purchasable upon exercise of Rights as the Board of Directors, in its sole discretion, may deem to be appropriate under the circumstances in order to adequately protect the interests of the holders of Rights generally,
and the Company and the Rights Agent shall amend the Agreement as necessary to provide for such adjustments. 
 (e) Each
adjustment to the Exercise Price made pursuant to this Section 2.4 shall be calculated to the nearest cent. Whenever an adjustment to the Exercise Price is made 

  
 21 

 
pursuant to this Section 2.4, the Company shall (i) promptly prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for such adjustment, and
(ii) promptly file with the Rights Agent and with the transfer agent for the Common Stock a copy of such certificate. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment or statement therein
contained and shall have no duty or liability with respect to, and shall not be deemed to have knowledge of, any adjustment or any such event unless and until it shall have received such a certificate. 

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

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

  
 22 

 2.6 Execution, Authentication, Delivery and Dating of Rights Certificates.

 (a) The Rights Certificates shall be executed on behalf of the Company by its Chairman of the Board, its Chief Executive
Officer, its President, any of its Vice Presidents or its Treasurer and by its Secretary or one of its Assistant Secretaries. The signature of any of these officers on the Rights Certificates may be manual or facsimile. Rights Certificates bearing
the manual or facsimile signatures of individuals who were at any time the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the countersignature and
delivery of such Rights Certificates. 
 (b) Promptly after the Separation Time, the Company will notify in writing the Rights
Agent of such Separation Time (and if such notification is given orally, the Company shall confirm same in writing on or prior to the Business Day next following) and will deliver Rights Certificates executed by the Company to the Rights Agent for
countersignature, and, subject to Section 3.1(b), the Rights Agent shall countersign (either manually or by facsimile) and deliver such Rights Certificates to the holders of the Rights pursuant to Section 2.3(c). Until the written notice
provided for in this Section 2.6 is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that the Separation Time has not occurred. No Rights Certificate shall be valid for any purpose unless countersigned
(either manually or by facsimile) by the Rights Agent. 
 (c) Each Rights Certificate shall be dated the date of
countersignature thereof. 
 2.7 Registration, Registration of Transfer and Exchange. 

(a) After the Separation Time, the Company will cause to be kept a register (the “Rights Register”) in which, subject to such
reasonable regulations as it may prescribe, the Company will provide for the registration and transfer of Rights. The Rights Agent is hereby 

  
 23 

 
appointed “Rights Registrar” for the purpose of maintaining the Rights Register for the Company and registering Rights and transfers of Rights after the Separation Time as herein
provided. In the event that the Rights Agent shall cease to be the Rights Registrar, the Rights Agent will have the right to examine the Rights Register at all reasonable times after the Separation Time. The Rights Certificates are transferable only
on the Rights Register maintained by the Rights Registrar. 
 After the Separation Time and prior to the Expiration Time, upon
surrender for registration of transfer or exchange of any Rights Certificate, and subject to the provisions of Sections 2.7(c) and (d), the Company will execute, and the Rights Agent will countersign and, if requested and provided with all necessary
information, deliver, in the name of the holder or the designated transferee or transferees, as required pursuant to the holder’s instructions, one or more new Rights Certificates evidencing the same aggregate number of Rights as did the Rights
Certificate so surrendered. 
 (b) Except as otherwise provided in Section 3.1(b), all Rights issued upon any registration
of transfer or exchange of Rights Certificates shall be the valid obligations of the Company, and such Rights shall be entitled to the same benefits under this Agreement as the Rights surrendered upon such registration of transfer or exchange.

 (c) Every Rights Certificate surrendered for registration of transfer or exchange shall be duly endorsed, or be accompanied
by a written instrument of transfer in form satisfactory to the Company or the Rights Agent, as the case may be, duly executed by the holder thereof or such holder’s attorney-in-fact duly authorized in writing. As a condition to the issuance of
any new Rights Certificate under this Section 2.7, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed 

  
 24 

 
in relation thereto. The Rights Agent shall have no duty or obligation under any section of this Agreement that requires the payment of taxes or charges unless and until it is satisfied that all
such taxes and/or charges have been paid. 
 (d) The Company shall not register the transfer or exchange of any Rights that have
become null and void under Section 3.1(b), been exchanged under Section 3.1(c) or been redeemed under Section 5.1. 
 2.8 Mutilated, Destroyed, Lost and Stolen Rights Certificates. 
 (a) If any
mutilated Rights Certificate is surrendered to the Rights Agent prior to the Expiration Time, then, subject to Sections 3.1(b), 3.1(c) and 5.1, the Company shall execute and the Rights Agent shall countersign and deliver in exchange therefor a new
Rights Certificate evidencing the same number of Rights as did the Rights Certificate so surrendered. 
 (b) If there shall be
delivered to the Company and the Rights Agent prior to the Expiration Time (i) evidence to their satisfaction of the destruction, loss or theft of any Rights Certificate, and (ii) such security or indemnity as may be required by them to
hold each of them and any of their agents harmless, then, subject to Sections 3.1(b), 3.1(c) and 5.1 and in the absence of written notice to the Company or the Rights Agent that such Rights Certificate has been acquired by a bona fide purchaser, the
Company shall execute and upon its written request the Rights Agent shall countersign and, if requested and provided with all necessary information, deliver, in lieu of any such destroyed, lost or stolen Rights Certificate, a new Rights Certificate
evidencing the same number of Rights as did the Rights Certificate so destroyed, lost or stolen. 
 (c) As a condition to the
issuance of any new Rights Certificate under this Section 2.8, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the
fees and expenses of the Rights Agent) connected therewith. 

  
 25 

 (d) Every new Rights Certificate issued pursuant to this Section 2.8 in lieu of any
destroyed, lost or stolen Rights Certificate shall evidence an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Rights Certificate shall be at any time enforceable by anyone, and, subject to
Section 3.1(b) shall be entitled to all the benefits of this Agreement equally and proportionately with any and all other Rights duly issued hereunder. 
 2.9 Persons Deemed Owners. Prior to due presentment of a Rights Certificate (or, prior to the Separation Time, the associated Common Stock certificate or notice of transfer, if uncertificated) for
registration of transfer, the Company, the Rights Agent and any agent of the Company or the Rights Agent may deem and treat the Person in whose name such Rights Certificate (or, prior to the Separation Time, such Common Stock certificate or Common
Stock registration, if uncertificated) is registered as the absolute owner thereof and of the Rights evidenced thereby for all purposes whatsoever, including the payment of the Redemption Price, and neither the Company nor the Rights Agent shall be
affected by any notice to the contrary. As used in this Agreement, unless the context otherwise requires, the term “holder” of any Rights shall mean the registered holder of such Rights (or, prior to the Separation Time, the associated
shares of Common Stock). 
 2.10 Delivery and Cancellation of Certificates. All Rights Certificates surrendered upon
exercise or for registration of transfer or exchange shall, if surrendered to any Person other than the Rights Agent, be delivered to the Rights Agent and, in any case, shall be promptly cancelled by the Rights Agent. The Company may at any time
deliver to the Rights Agent for 

  
 26 

 
cancellation any Rights Certificates previously countersigned and delivered hereunder that the Company may have acquired in any manner whatsoever, and all Rights Certificates so delivered shall
be promptly cancelled by the Rights Agent. No Rights Certificates shall be countersigned in lieu of or in exchange for any Rights Certificates cancelled as provided in this Section 2.10, except as expressly permitted by this Agreement. The
Rights Agent shall destroy all cancelled Rights Certificates and deliver to the Company a certificate attesting to such destruction. 
 2.11 Agreement of Rights Holders. Every holder of Rights by accepting the Rights consents and agrees with the Company and the Rights Agent and with every other holder of Rights that: 

(a) prior to the Separation Time, each Right will be transferable only together with, and will be transferred by a transfer of, the
associated share of Common Stock; 
 (b) as of and after the Separation Time, the Rights Certificates will be transferable only
on the Rights Register as provided herein; 
 (c) prior to due presentment of a Rights Certificate (or, prior to the Separation
Time, the associated Common Stock certificate or Common Stock registration, if uncertificated) for registration of transfer, the Company, the Rights Agent and any agent of the Company or the Rights Agent may deem and treat the Person in whose name
the Rights Certificate (or, prior to the Separation Time, the associated Common Stock certificate or Common Stock registration, if uncertificated) is registered as the absolute owner thereof and of the Rights evidenced thereby for all purposes
whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary; 
 (d) Rights that are
Beneficially Owned by certain Persons will, under the circumstances set forth in Section 3.1(b), become null and void; 

  
 27 

 (e) this Agreement may be supplemented or amended from time to time in accordance with its
terms; 
 (f) the Board of Directors (or any committee thereof, to the extent delegated any such power and authority by the
Board of Directors) shall have the exclusive power and authority delegated to it pursuant to Section 5.14; and 
 (g)
notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any holder of a Right or other Person as a result of its inability to perform any of its obligations under this
Agreement by reason of any preliminary or permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or
executive order promulgated or enacted by any governmental authority, prohibiting or otherwise restraining performance of such obligation; provided, however, that the Company shall use its best efforts to have any such order, decree or ruling lifted
or otherwise overturned as soon as possible. 
 ARTICLE III 

ADJUSTMENTS TO THE RIGHTS IN 
 THE EVENT OF CERTAIN TRANSACTIONS 
 3.1 Flip-in. 

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

  
 28 

 
of the events described in Section 2.4(a) or (b), or any analogous event, shall have occurred with respect to the Common Stock). The foregoing notwithstanding, Rights shall not be
exercisable pursuant to this Section 3.1 until the Separation Time shall have occurred.  
 (b) Notwithstanding the
foregoing, any Rights that are or were Beneficially Owned on or after the Flip-in Date by (i) an Acquiring Person or an Affiliate or Associate thereof, (ii) a transferee of an Acquiring Person or an Affiliate or Associate thereof who
becomes a transferee after the Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person or an Affiliate or Associate thereof who becomes a transferee prior to or concurrently with the Acquiring Person becoming such and
receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom the Acquiring Person has any continuing
agreement, arrangement or understanding, whether or not in writing, regarding the transferred Rights, or (B) a transfer which the Board of Directors has determined is part of a plan, arrangement or understanding which has as a primary purpose
or effect the avoidance of this Section 3.1(b), shall become null and void and any holder of such Rights (including transferees, whether direct or indirect, of any such Persons) shall thereafter have no right to exercise or transfer such Rights
under any provision of this Agreement. If any Rights Certificate is presented for assignment or exercise and the Person presenting the same will not complete the certification set forth at the end of the Form of Assignment or Form of Notice of
Election to Exercise or, if requested, will not provide such additional evidence, including, without limitation, the identity of the Beneficial Owners and their Affiliates and Associates (or former Beneficial Owners and their Affiliates and
Associates) as the Company shall reasonably request in order to determine if such Rights are null and void, then the Company shall be entitled conclusively to 

  
 29 

 
deem the Rights to be Beneficially Owned by an Acquiring Person or an Affiliate or Associate thereof or a transferee of any of the foregoing and accordingly will deem the Rights evidenced thereby
to be null and void and not transferable, exercisable or exchangeable. The Company shall use all reasonable efforts to insure that the provisions of this Section 3.1(b) are complied with, but shall have no liability to any holder of Rights or
any other Person as a result of its failure to make any determinations with respect to an Acquiring Person or any of its Affiliates, Associates or their respective transferees hereunder. 

(c) The Board of Directors may, at its option, at any time after a Flip-in Date and prior to the time that an Acquiring Person, together
with all Affiliates and Associates of such Person, becomes the Beneficial Owner of more than 50% of the outstanding shares of Common Stock, elect to exchange all (but not less than all) of the then outstanding Rights (which shall not include Rights
that have become null and void pursuant to the provisions of Section 3.1(b)) for shares of Common Stock at an exchange ratio of one share of Common Stock per Right, appropriately adjusted in order to protect the interests of holders of Rights
generally in the event that on or after the Separation Time any of the events described in Section 2.4(a) or (b), or any analogous event, shall have occurred with respect to the Common Stock (such exchange ratio, as adjusted from time to time,
being hereinafter referred to as the “Exchange Ratio”). Immediately upon the action of the Board of Directors electing to exchange the Rights, without any further action and without any notice, the right to exercise the Rights will
terminate and each Right (other than Rights that have become null and void pursuant to Section 3.1(b)), whether or not previously exercised, will thereafter represent only the right to receive a number of shares of Common Stock equal to the
Exchange Ratio. The exchange of the Rights by the Board of Directors may be made effective at such time, on such basis and with such conditions as the 

  
 30 

 
Board of Directors in its sole discretion may establish. Promptly after the action of the Board of Directors electing to exchange the Rights, the Company shall give written notice thereof
(specifying the steps to be taken to receive shares of Common Stock in exchange for Rights) to the Rights Agent and the holders of the Rights (other than Rights that have become null and void pursuant to Section 3.1(b)) outstanding immediately
prior thereto by mailing such notice in accordance with Section 5.9; provided, however, that the failure to give, or any defect in, such notice shall not affect the validity of such exchange. Following the action of the Board of Directors
ordering the exchange of any Rights pursuant to this Section 3.1(c), the Company may implement such procedures as it deems appropriate, in its sole discretion, for the purpose of ensuring that the Common Stock (or such other consideration)
issuable upon an exchange pursuant to this Section 3.1(c) is not received by holders of Rights that have become null and void pursuant to Section 3.1(b). 
 Before effecting an exchange pursuant to this Section 3.1(c), the Board of Directors may direct the Company to enter into a Trust Agreement in such form and with such terms as the Board of Directors
shall then approve (the “Trust Agreement”). If the Board of Directors so directs, the Company shall enter into the Trust Agreement and shall issue to the trust created by such agreement (the “Trust”) all or a portion (as
designated by the Board of Directors) of the shares of Common Stock (or other securities) issuable pursuant to the exchange, and all holders of Rights entitled to receive such shares or securities pursuant to the exchange shall be entitled to
receive such shares or securities (and any dividends paid or distributions made thereon after the date on which such shares are deposited in the Trust) only from the Trust and solely upon compliance with the relevant terms and provisions of the
Trust Agreement. 

  
 31 

 Prior to effecting an exchange and registering shares of Common Stock (or other such
securities) in any Person’s name, including any nominee or transferee of a Person, the Company may require (or cause the trustee of the Trust to require), as a condition thereof, that any holder of Rights provide evidence, including, without
limitation, the identity of the Beneficial Owners thereof and their Affiliates and Associates (or former Beneficial Owners thereof and their Affiliates and Associates) as the Company shall reasonably request in order to determine if such Rights are
null and void. If any Person shall fail to comply with such request, the Company shall be entitled conclusively to deem the Rights formerly held by such Person to be null and void pursuant to Section 3.1(b) and not transferable or exercisable
or exchangeable in connection herewith. 
 Any shares of Common Stock or other securities issued at the direction of the Board
of Directors in connection herewith shall be validly issued, fully paid and nonassessable shares of Common Stock or of such other securities (as the case may be). 
 Each Person in whose name any certificate for such shares is issued (or for whom any registration on the stock transfer books of the Company is made) upon the exchange of Rights pursuant to
Section 3.1(c) or (d) shall for all purposes be deemed to have become the holder of record of the shares represented thereby on, and such certificate (or registration on the stock transfer books of the Company) shall be dated (or
registered) as of, the date upon which the Rights Certificate evidencing such Rights was duly exchanged (or deemed exchanged by the Company) and payment of any applicable taxes and other governmental charges payable by the holder was made; provided,
however, that if the date of such exchange and payment is a date upon which the stock 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 (or registration on
the stock transfer books of the Company) shall be dated (or registered) as of the next succeeding Business Day on which the stock transfer books of the Company are open. 

  
 32 

 (d) Whenever the Company shall become obligated under Section 3.1(a) or (c) to
issue shares of Common Stock upon exercise of or in exchange for Rights, the Company, as determined by the Board of Directors, may substitute therefor shares of Preferred Stock, at a ratio of one one-thousandth of a share of Preferred Stock for each
share of Common Stock so issuable, subject to equitable adjustment as appropriate (as determined in good faith by the Board of Directors). 
 (e) In the event that there shall not be sufficient authorized but unissued shares of Common Stock or Preferred Stock of the Company to permit the exercise in full of the Rights in accordance with
Section 3.1(a) (or, if the Company so elects to make the exchange referred to in Section 3.1(c), to permit the issuance of all shares pursuant to the exchange), the Company shall either (i) call a meeting of stockholders seeking
approval to cause sufficient additional shares to be authorized (provided that if such approval is not obtained the Company will take the action specified in clause (ii) of this sentence) or (ii) take such action as shall be necessary to
ensure and provide, as and when and to the maximum extent permitted by applicable law and any agreements or instruments in effect on the Flip-in Date (and remaining in effect) to which it is a party, that each Right shall thereafter constitute the
right to receive (x) in the case of any exercise in accordance with Section 3.1(a), at the Company’s option as determined by the Board of Directors, either (A) in return for the Exercise Price, debt or equity securities or other
assets (or a combination thereof) having a fair value equal to twice the Exercise Price, or (B) without payment of consideration (except as may be required for the valid issuance of securities or otherwise required by applicable law), debt or
equity securities or other assets (or a combination thereof) having a fair value equal to the Exercise Price, or (y) in the case of an exchange of Rights in accordance with Section 3.1(c), debt or equity securities or other 

  
 33 

 
assets (or a combination thereof) having a fair value equal to the product of the Market Price of a share of Common Stock on the Stock Acquisition Announcement Date multiplied by the Exchange
Ratio in effect on the Flip-in Date, where in any case set forth in (x) or (y) above the fair value of such debt or equity securities or other assets (or a combination thereof) shall be as determined in good faith by the Board of Directors
after consultation with a nationally recognized investment banking firm. 
 3.2 Flip-over. 

(a) Prior to the Expiration Time, the Company shall not enter into any agreement with respect to, consummate or permit to occur any
Flip-over Transaction or Event unless and until it shall have entered into a supplemental agreement with the Flip-over Entity, for the benefit of the holders of the Rights (the terms of which shall be reflected in an amendment to this Agreement
entered into with the Rights Agent), providing that, upon consummation or occurrence of the Flip-over Transaction or Event, (i) each Right shall thereafter constitute the right to purchase from the Flip-over Entity, upon exercise thereof in
accordance with the terms hereof, that number of shares of Flip-over Stock of the Flip-over Entity having an aggregate Market Price on the date of consummation or occurrence of such Flip-over Transaction or Event equal to twice the Exercise Price
for an amount in cash equal to the Exercise Price (such right to be appropriately adjusted in order to protect the interests of the holders of Rights generally in the event that after such date of consummation or occurrence any of the events
described in Section 2.4(a) or (b), or any analogous event, shall have occurred with respect to the Flip-over Stock), and (ii) the Flip-over Entity shall thereafter be liable for, and shall assume, by virtue of such Flip-over Transaction
or Event and such supplemental agreement, all the obligations and duties of the Company pursuant to this Agreement. 

  
 34 

 (b) Prior to the Expiration Time, unless the Rights are redeemed by the Company pursuant to
Section 5.1 pursuant to an election made by the Company prior to a Flip-in Date, the Company shall not enter into any agreement with respect to, consummate or permit to occur any Flip-over Transaction or Event if (i) at the time thereof
there are any rights, warrants or securities outstanding or any other arrangements, agreements or instruments that would eliminate or otherwise diminish in any material respect the benefits intended to be afforded by this Rights Agreement to the
holders of Rights upon consummation of such transaction; (ii) prior to, simultaneously with or immediately after such Flip-over Transaction or Event, the stockholders of the Person who constitutes, or would constitute, the Flip-over Entity
shall have received a distribution of Rights previously owned by such Person or any of its Affiliates or Associates; or (iii) the form or nature of organization of the Flip-over Entity would preclude or limit the exercisability of the Rights.

 (c) The provisions of this Section 3.2 shall apply to successive Flip-over Transactions or Events. 

ARTICLE IV 

THE RIGHTS AGENT 
 4.1 General. 
 (a) The Company hereby appoints the Rights Agent to act as
agent for the Company in accordance with the express terms and conditions hereof (and no implied terms or conditions), and the Rights Agent hereby accepts such appointment. The Company 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, including but not limited to reasonable fees and 

  
 35 

 
expenses of its counsel and other disbursements incurred in connection with the preparation, negotiation, delivery, amendment, administration and execution of this Agreement and the exercise and
performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or expense (including, without
limitation, the reasonable fees and expenses of legal counsel) incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent for any action taken, suffered, or omitted to be taken by the Rights Agent in
connection with the acceptance and administration of this Agreement, or in the exercise or performance of its duties hereunder, including, without limitation, the costs and expenses of defending against any claim of liability. The costs and expenses
of enforcing this right of indemnification shall also be paid by the Company. The provisions of this Section 4.1 and Section 4.3 (including the provisions relating to indemnification of the Rights Agent) shall survive the termination of
this Agreement, the exercise or expiration of the Rights and the resignation, replacement or removal of the Rights Agent hereunder, including, without limitation, the reasonable costs and expenses of defending against a claim of liability hereunder.
Notwithstanding anything to the contrary in this Agreement, any references in this Agreement to the Rights Agent’s gross negligence, bad faith, or willful misconduct shall be deemed to be as determined by a final, non-appealable judgment of a
court of competent jurisdiction. 
 (b) The Rights Agent may conclusively rely upon and shall be protected and shall incur no
liability for or in respect of any action taken, suffered or omitted to be taken by it in connection with its acceptance and administration of this Agreement and the exercise and performance of its duties hereunder in reliance upon any certificate
for securities (or registration on the stock transfer books of the Company) purchasable upon exercise of Rights, Rights 

  
 36 

 
Certificate, certificate 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 4.3.
The Rights Agent shall not be deemed to have knowledge of any event of which it was supposed to receive notice thereof hereunder, and the Rights Agent shall be fully protected and shall incur no liability for failing to take any action in connection
therewith, unless and until it has received such notice. 
 4.2 Merger or Consolidation or Change of Name of Rights
Agent. 
 (a) Any Person into which the Rights Agent or any successor Rights Agent may be merged or with which it may be
consolidated or converted, or any Person resulting from any merger, consolidation or conversion to which the Rights Agent or any successor Rights Agent is a party, or any Person succeeding to the stockholder services business of the Rights Agent or
any successor Rights Agent, will be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that such Person would be eligible for
appointment as a successor Rights Agent under the provisions of Section 4.4. If at the time such successor Rights Agent succeeds to the agency created by this Agreement any of the Rights Certificates have been countersigned but not delivered,
any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Rights Certificates so countersigned; and if at that time any of the Rights Certificates have not been countersigned, any successor
Rights Agent may countersign such Rights Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent, and in all such cases such Rights Certificates will have the full force and effect provided in the
Rights Certificates and in this Agreement. 

  
 37 

 (b) If at any time the name of the Rights Agent is changed and at such time any of the
Rights Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned, and if at that time any of the Rights Certificates shall not
have been countersigned, the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name, and in all such cases such Rights Certificates shall have the full force and effect provided in the Rights
Certificates and in this Agreement. 
 4.3 Duties of Rights Agent. The Rights Agent undertakes to perform only the duties
and obligations expressly imposed by this Agreement (and no implied duties or obligations) upon the following terms and conditions, all of which the Company and the holders of Rights Certificates, by their acceptance thereof, shall be bound:

 (a) The Rights Agent may consult with legal counsel (who may be legal counsel for the Company and/or an employee of the
Rights Agent), and the advice or opinion of such counsel will be full and complete authorization and protection to the Rights Agent, and the Rights Agent shall incur no liability for or in respect of any action taken, suffered, or omitted to be
taken by it in accordance with such advice or opinion. 
 (b) Whenever in the performance of its duties under this Agreement the
Rights Agent deems it necessary or desirable that any fact or matter be proved or established by the Company prior to taking, suffering or omitting to take any action hereunder, such fact or matter (unless other evidence in respect thereof be herein
specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by a person believed by 

  
 38 

 
the Rights Agent to be the Chairman of the Board, the Chief Executive Officer, any Vice President, the Treasurer or the Secretary of the Company and delivered to the Rights Agent, and such
certificate will be full and complete authorization and protection to the Rights Agent, and the Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted to be taken by it under the provisions of this Agreement
in reliance upon such certificate. 
 (c) The Rights Agent will be liable hereunder to the Company and any other Person only for
its own gross negligence, bad faith or willful misconduct. Notwithstanding anything in this Agreement to the contrary, in no event shall the Rights Agent be liable for special, punitive, indirect, incidental or consequential loss or damage of any
kind whatsoever (including but not limited to lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damage and regardless of the form of the action. 

(d) The Rights Agent will not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in
the certificates, if any, for securities purchasable upon exercise of Rights or the Rights Certificates (except its countersignature thereof) or be required to verify the same, and all such statements and recitals are and will be deemed to have been
made by the Company only. 
 (e) The Rights Agent shall not have any liability for or be under any responsibility in respect of
the validity of this Agreement or the execution and delivery hereof (except the due authorization, execution and delivery hereof by the Rights Agent) or in respect of the validity or execution of any certificate, if any, for securities purchasable
upon exercise of Rights or Rights Certificate (except its countersignature thereof); nor will it be responsible for any breach by the Company of any covenant or failure by the Company to satisfy conditions contained in this Agreement or in any
Rights Certificate; nor will it be responsible for any 

  
 39 

 
change in the exercisability or exchangeability of the Rights (including, without limitation, the Rights becoming null and void pursuant to Section 3.1(b)) or any change or adjustment in the
terms of the Rights (including, without limitation, any adjustment required under the provisions of Section 2.4, 3.1 or 3.2) or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts
that would require any such adjustment (except with respect to the exercise of Rights evidenced by Right Certificates after receipt of a certificate furnished pursuant to Section 2.4, describing any such change or adjustment, upon which the
Rights Agent may rely); nor will it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any securities purchasable upon exercise of Rights or any Rights Certificate or as to whether any
securities purchasable upon exercise of Rights will, when issued, be duly and validly authorized, executed, issued and delivered and fully paid and nonassessable. 
 (f) The 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 its duties under this Agreement. 
 (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any person believed by the Rights Agent to be the Chairman of the
Board, the Chief Executive Officer, the President, any Vice President, the Chief Financial Officer, the Treasurer or the Secretary of the Company, and to apply to such persons for advice or instructions in connection with its duties, and such
instructions shall be full authorization and protection to the Rights Agent and the Rights Agent shall not be liable for any action taken, suffered or omitted to be taken by it in accordance with

  
 40 

 
instructions of any such person. The Rights Agent shall be fully authorized and protected in relying upon the most recent instructions received by any such officer. Any application by the Rights
Agent for written instructions from the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken, suffered or omitted to be taken by the Rights Agent under this Agreement and the date on or after which
such action shall be taken, suffered or such omission shall be effective. The Rights Agent shall not be liable for any action taken or suffered by, or omission of, the Rights Agent in accordance with a proposal included in any such application on or
after the date specified in such application (which date shall not be less than ten Business Days after, but not including, the date that any officer of the Company actually receives such application, unless any such officer shall have consented in
writing to an earlier date) unless, prior to taking any such action (or the effective date in the case of an omission), the Rights Agent shall have received, in response to such application, written instructions with respect to the proposed action
or omission specifying a different action to be taken, suffered or omitted to be taken. 
 (h) The Rights Agent and any
stockholder, Affiliate, director, officer, agent or employee of the Rights Agent (in each case, other than an Acquiring Person) may buy, sell or deal in Common Stock, Rights or other securities of the Company or become pecuniarily interested in any
transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent or any
such stockholder, Affiliate, director, officer, agent or employee from acting in any other capacity for the Company or for any other Person. 

  
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 (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 will not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the
Company or any other Person resulting from any such act, default, neglect or misconduct, absent gross negligence, bad faith or willful misconduct in the selection and continued employment thereof. 

(j) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate attached to the
form of assignment or form of election to purchase, as the case may be, has not been completed, the Rights Agent shall not take any further action with respect to such requested exercise or transfer without first consulting with the Company.

 (k) No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder or in the exercise of its rights if it reasonably believes, after consultation with counsel, that repayment of such funds or adequate indemnification against such risk or
liability is not assured to it. 
 4.4 Change of Rights Agent. The Rights Agent may resign and be discharged from its
duties under this Agreement upon 60 days’ notice (or such lesser notice as is acceptable to the Company) in writing mailed to the Company and to each transfer agent of Common Stock known to the Rights Agent by registered or certified mail, and
to the holders of the Rights in accordance with Section 5.9. The Company may remove the Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent and to each transfer agent of the Common Stock by registered or certified
mail, and to the holders of the Rights in accordance with Section 5.9. If the 

  
 42 

 
Rights Agent should resign or be removed or otherwise become incapable of acting, the Company will appoint a successor to the Rights Agent. If the Company fails to make such appointment within a
period of 30 days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of any Rights (which holder shall, with such notice,
submit such holder’s Rights Certificate for inspection by the Company), then the holder of any Rights or the Rights Agent may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent,
whether appointed by the Company or by such a court, shall be (A) a Person organized and doing business under the laws of the United States or any state of the United States, in good standing, which is authorized under such laws to exercise the
powers of the Rights Agent contemplated by this Agreement and is subject to supervision or examination by federal or state authority or (B) an Affiliate of a Person described in clause (A) of this sentence. After appointment, the successor
Rights Agent will be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed, and 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 will file notice thereof in
writing with the predecessor Rights Agent and each transfer agent of the Common Stock. Failure to give any notice provided for in this Section 4.4, however, or any defect therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 

  
 43 

 ARTICLE V 
 MISCELLANEOUS 
 5.1 Redemption. 

(a) The Board of Directors may, at its option, at any time prior to a Flip-in Date, elect to redeem all (but not less than all) of the
then outstanding Rights at the Redemption Price and the Company, at its option, may pay the Redemption Price either in cash or shares of Common Stock or other securities of the Company deemed by the Board of Directors, in its sole discretion, to be
at least equivalent in value to the Redemption Price. 
 (b) Immediately upon the action of the Board of Directors electing to
redeem the Rights pursuant to Section 5.1(a) (or, if the resolution of the Board of Directors electing to redeem the Rights states that the redemption will not be effective until the occurrence of a specified future time or event, upon the
occurrence of such future time or event), without any further action and without any notice, the right to exercise the Rights will terminate and each Right, whether or not previously exercised, will thereafter represent only the right to receive the
Redemption Price in cash or securities, as determined by the Board of Directors. Promptly after the Rights are redeemed, the Company shall give notice of such redemption to the Rights Agent and the holders of the then outstanding Rights by mailing
such notice in accordance with Section 5.9. 
 5.2 Expiration. The Rights and this Agreement shall expire at the
Expiration Time and no Person shall have any rights pursuant to this Agreement or any Right after the Expiration Time, except, if the Rights have been exchanged or redeemed, as provided in Section 3.1 or 5.1 respectively. 

5.3 Issuance of New Rights Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary,
the Company may, at its option, issue new 

  
 44 

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

5.4 Supplements and Amendments. The Company and the Rights Agent may from time to time supplement or amend this Agreement without
the approval of any holders of Rights (i) prior to the Flip-in Date, in any respect, and (ii) from and after the Flip-in Date, to make any changes that the Company may deem necessary or desirable (x) that shall not materially
adversely affect the interests of the holders of Rights generally (other than the Acquiring Person 

  
 45 

 
or any Affiliate or Associate thereof or certain of their transferees), (y) in order to cure any ambiguity; or (z) to correct or supplement any provision contained herein that may be
inconsistent with any other provisions herein or otherwise defective, including, without limitation, any change in order to satisfy any applicable law, rule or regulation, including, without limitation, any Trading Regulation on any applicable
exchange so as to allow trading of the Company’s securities thereon; provided, however, that no supplement or amendment pursuant to clause (ii) of this sentence may cause the Rights again to become redeemable or cause this Agreement again
to become amendable other than in accordance with this sentence. Any supplement or amendment authorized by this Section 5.4 will be evidenced by a writing signed by the Company and the Rights Agent. The Rights Agent will duly execute and
deliver any supplement or amendment hereto requested by the Company in writing, provided that the Company has delivered to the Rights Agent a certificate from an appropriate officer of the Company that states that the proposed supplement or
amendment complies with the terms of this Agreement. Notwithstanding anything in this Agreement to the contrary, the Rights Agent may, but shall not be obligated to enter into any supplement or amendment that affects the Rights Agent’s own
rights, duties, immunities or obligations under this Agreement. 
 5.5 Fractional Shares. If the Company elects not to
issue certificates representing (or register on the stock transfer books of the Company) fractional shares upon exercise, redemption or exchange of Rights, the Company shall, in lieu thereof, in the sole discretion of the Board of Directors, either
(a) evidence such fractional shares by depositary receipts issued pursuant to an appropriate agreement between the Company and a depositary selected by it providing that each holder of a depositary receipt shall have all of the rights,
privileges and preferences to which such holder would be entitled as a beneficial owner of such fractional share, or (b) pay to the 

  
 46 

 
registered holder of such Rights the appropriate fraction of the Market Price per share in cash. Whenever a payment for fractional Rights or fractional shares of Common Stock or Preferred Stock
is to be made by the Rights Agent, the Company shall promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to such payments and the prices and/or formulas utilized in calculating such
payments, and provide sufficient monies to the Rights Agent in the form of fully collected funds to make such payments. The Rights Agent shall be fully protected in relying upon such certificate and shall have no duty with respect to, and shall not
be deemed to have knowledge of any payment for fractional Rights or fractional shares or Common Stock or Preferred Stock under any section of this Agreement relating to the payment of fractional Rights or fractional shares of Common Shares or
Preferred Shares unless and until the Rights Agent shall have received such a certificate and sufficient monies. 
 5.6
Rights of Action. Subject to the terms of this Agreement, rights of action in respect of this Agreement, other than rights of action vested solely in the Rights Agent, the Board of Directors or the Company, are vested in the respective
holders of the Rights; and any holder of any Rights, without the consent of the Rights Agent or of the holder of any other Rights, may, on such holder’s own behalf and for such holder’s own benefit and the benefit of other holders of
Rights, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, such holder’s right to exercise such holder’s Rights in the manner provided in such
holder’s Rights Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any
breach of this Agreement and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened violations of the obligations of any Person subject to, this Agreement. 

  
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 5.7 Holder of Rights Not Deemed a Stockholder. No holder, as such, of any Rights
shall be entitled to vote, receive dividends or be deemed for any purpose to be the holder of shares or any other securities that may at any time be issuable on the exercise of such Rights, nor shall anything contained herein or in any Rights
Certificate be construed to confer upon the holder of any Rights, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or
to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in Section 5.8), or to receive dividends or subscription rights, or otherwise, until such Rights
shall have been exercised or exchanged in accordance with the provisions hereof. 
 5.8 Notice of Proposed Actions. In
case the Company shall propose on or after the Flip-in Date and prior to the Expiration Time (i) to effect or permit a Flip-over Transaction or Event or (ii) 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, in accordance with Section 5.9, and to the Rights Agent a written a notice of such proposed action, which shall specify the date on which such Flip-over Transaction or Event,
liquidation, dissolution, or winding up is to take place, and such notice shall be so given at least 20 Business Days prior to, but not including, the date of the taking of such proposed action. 

5.9 Notices. Notices or demands authorized or required by this Agreement to be given or made by the Rights Agent or by the holder
of any Rights to or on the Company shall be sufficiently given or made if delivered or sent by recognized national overnight delivery service or first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights
Agent) as follows: 
 Optical Cable Corporation 
 5290 Concourse Drive 
 Roanoke, Virginia 24019 

Attention:  Neil D. Wilkin, Jr. 

  
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 Subject to the provisions of Section 4.4, any notice or demand authorized or required
by this Agreement to be given or made by the Company or by the holder of any Rights to or on the Rights Agent shall be sufficiently given or made if delivered or sent by recognized national overnight delivery service or first-class mail, postage
prepaid, addressed (until another address is filed in writing with the Company) as follows: 
 American Stock Transfer & Trust Company,
LLC 
 6201 15th Avenue 

Brooklyn, NY 11219 
 Attention: Corporate Trust
Department 
 with a copy to: 
 American Stock Transfer & Trust Company, LLC 
 6201
15th Avenue 

Brooklyn, NY 11219 
 Attention: General Counsel 
 Notices or demands authorized or required by this
Agreement to be given or made by the Company or the Rights Agent to or on the holder of any Rights shall be sufficiently given or made if delivered or sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder
as it appears upon the registry books of the Rights Agent or, prior to the Separation Time, on the registry books of the transfer agent for the Common Stock. Any notice that is mailed in the manner herein provided shall be deemed given, whether or
not the holder receives the notice. 
 5.10 Suspension of Exercisability or Exchangeability. Notwithstanding any
provisions in this Agreement to the contrary, to the extent that the Board of Directors determines in good 

  
 49 

 
faith that some action will or need be taken pursuant to, or in order to properly give effect to, Sections 2.3, 3.1, 4.4 or to comply with federal or state securities laws or applicable Trading
Regulations, the Company may suspend the exercisability or exchangeability of the Rights for a reasonable period sufficient to allow it to take such action or comply with such laws or Trading Regulations. In the event of any such suspension, the
Company shall issue as promptly as practicable a public announcement (with prompt written notice to the Rights Agent) stating that the exercisability or exchangeability of the Rights has been temporarily suspended. Notice thereof pursuant to
Section 5.9 shall not be required. Upon such suspension, any rights of action vested in a holder of Rights shall be similarly suspended. 
 Failure to give a notice pursuant to the provisions of this Agreement shall not affect the validity of any action taken hereunder. 
 5.11 Costs of Enforcement. The Company agrees that if the Company or any other Person the securities of which are purchasable upon exercise of Rights fails to fulfill any of its obligations
pursuant to this Agreement, then the Company or such Person will reimburse the holder of any Rights for the costs and expenses (including legal fees) incurred by such holder in actions to enforce such holder’s rights pursuant to any Rights or
this Agreement. 
 5.12 Successors. All the covenants and provisions of this Agreement by or for the benefit of the
Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 
 5.13
Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company, the Rights Agent and the holders of the Rights any legal or equitable right, remedy or claim under this Agreement and this
Agreement shall be for the sole and exclusive benefit of the Company, the Rights Agent and the holders of the Rights. 

  
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 5.14 Determination and Actions by the Board of Directors, etc. For all purposes of
this Agreement, any calculation of the number of shares of Common Stock or any other class of capital stock outstanding at any particular time, including, without limitation, for purposes of determining the particular percentage of such outstanding
shares of Common Stock of which any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) under the Exchange Act. The Board of Directors (or any committee thereof, to the extent delegated such
power and authority by the Board of Directors) 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 (i) interpret the provisions of this Agreement and (ii) make all determinations and calculations deemed necessary or advisable for the
administration or implementation of this Agreement, including, without limitation, the right to determine the Rights to be null and voided pursuant to Section 3.1, after taking into account the purpose of this Agreement and the Company’s
interest in maintaining an orderly trading market in the outstanding shares of Common Stock. All such actions, interpretations, calculations and determinations done or made by the Board of Directors or the committee, as the case may be, shall
(x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other Persons, and (y) not subject the Board of Directors or any of the directors to any liability to the holders of the Rights.

 5.15 Fiduciary Responsibilities of the Board of Directors. Nothing contained in this Agreement shall, or shall be
deemed or construed to, be in derogation of the obligations of the Board of Directors to exercise its fiduciary duties. Without limiting the foregoing, nothing contained herein shall be deemed or construed to suggest or imply that the Board of
Directors 

  
 51 

 
shall not be entitled to reject any offer to acquire the Company or to recommend that stockholders of the Company reject any offer, or to take any other action, with respect to any offer or any
proposal to acquire the Company that the Board of Directors believes is necessary or appropriate in the exercise of such fiduciary duties. 
 5.16 Descriptive Headings; Section References. Descriptive headings appear herein for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.
Where a reference in this Agreement is made to a Section, such reference shall be to a Section of this Agreement unless otherwise indicated. 
 5.17 GOVERNING LAW; EXCLUSIVE JURISDICTION. 
 (a) THIS AGREEMENT AND EACH
RIGHT ISSUED HEREUNDER SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE COMMONWEALTH OF VIRGINIA AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SUCH STATE APPLICABLE TO CONTRACTS TO BE MADE AND
PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED, HOWEVER, THAT ALL PROVISIONS REGARDING THE RIGHTS, DUTIES, OBLIGATIONS AND LIABILITIES OF THE RIGHTS AGENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE. 
 (b) (i) THE COMPANY AND EACH HOLDER OF RIGHTS
HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE CIRCUIT COURT OF ROANOKE, VIRGINIA, OR, IF SUCH COURT SHALL LACK JURISDICTION, THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF VIRGINIA,

  
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OVER ANY SUIT, ACTION, OR PROCEEDING ARISING OUT OF OR RELATING TO OR CONCERNING THIS AGREEMENT. The Company and each holder of Rights acknowledge that the forum designated by this paragraph
(b) has a reasonable relation to this Agreement, and to such Persons’ relationship with one another. 
 (ii) The
Company and each holder of Rights hereby waive, to the fullest extent permitted by applicable law, any objection which they now or hereafter have to personal jurisdiction or to the laying of venue of any such suit, action or proceeding brought in
any court referred to in paragraph (b)(i). The Company and each holder of Rights undertake not to commence any action subject to this Agreement in any forum other than the forum described in this paragraph (b). The Company and each holder of Rights
agree that, to the fullest extent permitted by applicable law, a final and non-appealable judgment in any such suit, action, or proceeding brought in any such court shall be conclusive and binding upon such Persons. 

5.18 Counterparts. This Agreement may be executed in any number of counterparts (including by facsimile and .pdf) and each of such
counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute one and the same instrument. 
 5.19 Severability. If any term, covenant, restriction or provision hereof or the application thereof to any circumstance shall, in any jurisdiction and to any extent, be invalid or unenforceable,
such term, covenant, restriction or provision shall be ineffective as to such jurisdiction to the extent of such invalidity or unenforceability without invalidating or rendering unenforceable the remaining terms, covenants, restrictions and
provisions hereof or the application of such term, covenant, restriction or provision to circumstances other than those as to which it is held invalid or unenforceable; provided, however, that if any such excluded term, covenant, restriction or
provision shall adversely affect the rights, immunities, duties or obligations of the Rights Agent, the Rights Agent shall be entitled to resign immediately. 

  
 53 

 5.20 USA PATRIOT Act. Each Person that is a party hereto acknowledges that the Rights
Agent is subject to the customer identification program (“Customer Identification Program”) requirements under the USA PATRIOT Act and its implementing regulations, and that the Rights Agent must obtain, verify and record information that
allows the Rights Agent to identify each such person or entity. Accordingly, prior to accepting an appointment hereunder, the Rights Agent may request information from any such person or entity that will help the Rights Agent to identify such person
or entity, including, without limitation, as applicable, such person or entity’s physical address, tax identification number, organizational documents, certificate of good standing, license to do business, or any other information that the
Rights Agent deems necessary. Each Person that is a party hereto acknowledges that the Rights Agent cannot accept an appointment hereunder unless and until the Rights Agent verifies each such person or entity’s identity in accordance with the
Customer Identification Program requirements. 
 [Execution page follows.] 

  
 54 

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

			
	OPTICAL CABLE CORPORATION
		
	By:	 	 /s/ Tracy G. Smith

	Name:	 	 Tracy G. Smith

	Title:	 	 Senior Vice President and
Chief Financial Officer

 AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC 

 

			
	By:	 	 /s/ Barbara J. Robbins

	Name:	 	 Barbara J. Robbins

	Title:	 	 Vice President

 [Signature Page to Stockholder Protection Rights Agreement] 

  
 55 

 EXHIBIT A 
 [Form of Rights Certificate] 
 Certificate No.
W-            Rights 
 THE RIGHTS ARE SUBJECT TO REDEMPTION OR
MANDATORY EXCHANGE, AT THE OPTION OF THE COMPANY, ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. RIGHTS “BENEFICIALLY OWNED” BY “ACQUIRING PERSONS” OR “AFFILIATES” OR “ASSOCIATES” THEREOF (AS SUCH TERMS ARE
DEFINED IN THE RIGHTS AGREEMENT) OR TRANSFEREES OF ANY OF THE FOREGOING WILL BE NULL AND VOID. 
 Rights Certificate 

Optical Cable Corporation 
 This certifies that
                                         
                   , or registered assigns, is the registered holder of the number of Rights set forth above, each of which entitles the registered holder
thereof, subject to the terms, provisions and conditions of the Stockholder Protection Rights Agreement, dated as of October 28, 2011 (as amended from time to time, the “Rights Agreement”), between Optical Cable Corporation, a
Virginia corporation (the “Company”), and American Stock Transfer & Trust Company LLC, a New York limited liability trust company, as Rights Agent (the “Rights Agent”, which term shall include any successor Rights Agent
under the Rights Agreement), to purchase from the Company at any time after the Separation Time (as such term is defined in the Rights Agreement) and prior to the Expiration Time (as such term is defined in the Rights Agreement), one one-thousandth
of a fully paid share of Series A Participating Preferred Stock, no par value (the “Preferred Stock”), of the Company (subject to adjustment as provided in the Rights Agreement) at the Exercise Price referred to below, upon presentation
and surrender of this Rights Certificate with the Form of Election to Exercise duly executed and properly completed at the office of the Rights Agent designated for such purpose. The Exercise Price shall initially be $25 per Right and shall be
subject to adjustment in certain events as provided in the Rights Agreement. 
 In certain circumstances described in the Rights
Agreement, the Rights evidenced hereby may entitle the registered holder thereof to purchase securities of an entity other than the Company or securities of the Company other than Preferred Stock or assets of the Company, all as provided in the
Rights Agreement. This Rights Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Rights Certificates. Copies of the Rights
Agreement are on file at the principal office of the Company and are available without cost upon written request. 

  
 56 

 This Rights Certificate, with or without other Rights Certificates, upon surrender at the
office of the Rights Agent designated for such purpose, may be exchanged for another Rights Certificate or Rights Certificates of like tenor evidencing an aggregate number of Rights equal to the aggregate number of Rights evidenced by the Rights
Certificate or Rights Certificates so surrendered. If this Rights Certificate shall be exercised in part, the registered holder shall be entitled to receive, upon surrender hereof, another Rights Certificate or Rights Certificates for the number of
whole Rights not exercised. Subject to the provisions of the Rights Agreement, each Right evidenced by this Certificate may be (a) redeemed by the Company under certain circumstances, at its option, at a redemption price of $0.0001 per Right,
or (b) exchanged by the Company under certain circumstances, at its option, for one share of Common Stock or one one-thousandth of a share of Preferred Stock per Right (or, in certain cases, other securities or assets of the Company), subject
in each case to adjustment in certain events as provided in the Rights Agreement. No holder of this Rights Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of any securities that may at any
time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election
of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights
Agreement), or to receive dividends or subscription rights, or otherwise, until the Rights evidenced by this Rights Certificate shall have been exercised or exchanged as provided in the Rights Agreement. This Rights Certificate shall not be valid or
obligatory for any purpose until it shall have been countersigned (either manually or by facsimile) by the Rights Agent. 

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

Date:              

 

			
	ATTEST:
	
	OPTICAL CABLE CORPORATION
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	Countersigned:

 AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, as Rights Agent 

 

			
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 57 

 [Form of Reverse Side of Rights Certificate] 

FORM OF ASSIGNMENT 
 (To be executed by the registered holder if such 
 holder desires to transfer this
Rights Certificate.) 
 FOR VALUE RECEIVED
                                         
                                         
                                         
              hereby sells, assigns and transfers unto
                                         
            
  
  

(Please print name 
  

 
 and address of transferee)

 this Rights Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint
                                         
                        as Attorney-in-fact, to transfer the within Rights Certificate on the books of the within-named Company, with
full power of substitution. 
 Dated:             ,
             
 Signature Guaranteed:
                                         
                                         
       
 Signature 
 (Signature must correspond to name 
 as written upon the face of this 

Rights Certificate in every particular, 
 without alteration or enlargement or 
 any change whatsoever) 

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

  
 58 

 (To be completed if true) 

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

  

			
	  
	 	
	Signature	 	

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

  
 59 

 [To be attached to each Rights Certificate] 

FORM OF ELECTION TO EXERCISE 
 (To be executed if holder desires to 
 exercise the Rights.) 

 

	 	TO:	Optical Cable Corporation 

 The
undersigned hereby irrevocably elects to exercise
                                         
                    whole Rights represented by the attached Rights Certificate to purchase the shares of Series A Participating Preferred Stock or such
other securities or assets as may then be issuable upon the exercise of such Rights and requests that certificates for such shares be issued in the name of: 
  

							
	  
	 		 	
	 Address:
	 		 	
	  
	 		 	
	Social Security or Other Taxpayer	 		 	
	 Identification Number:
	 		 	

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

			
	  
	 	
	 Address:
	 	
	  
	 	
	Social Security or Other Taxpayer	 	
	 Identification Number:
	 	
	Dated:             ,     	 	

  

					
	Signature Guaranteed:	  	  
	  	

			
	Signature	 	
	(Signature must correspond to name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever)	 	

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

  
 60 

 (To be completed if true) 

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

  

			
	  
	  	
	Signature	  	

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

  
 61Supplemental Executive Retirement Income Plan as Amended

 Exhibit 10.1 
 SUPPLEMENTAL EXECUTIVE RETIREMENT INCOME PLAN 
 FOR NON-REPRESENTED
EMPLOYEES OF 
 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 

AND ITS AFFILIATES 
 Effective as of May 31, 2011 

 TABLE OF CONTENTS 

 

							
	Section 1.	    	 Definitions
	  	 	3	  
			
	Section 2.	    	 Additional Service Credit Participants
	  	 	9	  
			
	Section 3.	    	 Additional Service Credit Supplemental Retirement Benefit
	  	 	10	  
			
	Section 4.	    	 Additional Service Credit Supplemental Surviving Spouse Benefit
	  	 	13	  
			
	Section 5.	    	 Additional Limited Benefits
	  	 	14	  
			
	Section 6.	    	 Administration of the Plan
	  	 	20	  
			
	Section 7.	    	 Claims Procedure and Status Determination
	  	 	21	  
			
	Section 8.	    	 Amendment or Termination
	  	 	22	  
			
	Section 9.	    	 General Provisions
	  	 	22	  
			
	Section 10.	    	 Miscellaneous
	  	 	24	  
			
		    	 Schedule A
	  	 	25	  
			
	.	    	 Schedule B
	  	 	26	  

 SUPPLEMENTAL EXECUTIVE RETIREMENT INCOME PLAN 

FOR NON-REPRESENTED EMPLOYEES OF 
 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 
 AND ITS AFFILIATES

 Public Service Enterprise Group Incorporated had previously established two supplemental executive retirement plans for
certain of its and its affiliates’ non-represented employees: the Limited Supplemental Benefits Plan for Certain Employees of Public Service Enterprise Group Incorporated and its Subsidiaries (the “Limited Plan”) and the Mid-Career
Hire Supplemental Retirement Income Plan for Selected Employees of Public Service Enterprise Group Incorporated and its Affiliates (the “Mid-Career Plan”). These Plans were established for the purpose of assisting in attracting and
retaining a stable pool of key managerial and professional talent and developing long-term key employee commitment by providing specified supplemental retirement income benefits for certain employees who participate in one of the Company’s
qualified defined benefit retirement plans, the Pension Plan of Public Service Enterprise Group Incorporated (the “Pension Plan”) or the Cash Balance Pension Plan of Public Service Enterprise Group Incorporated (the “Cash Balance
Plan”). 
 The Limited Plan and the Mid-Career Plan were each intended to constitute an unfunded plan of deferred
compensation for a select group of management or highly compensated employees for purposes of Title 1 of ERISA. Effective as of December 1, 2009, the Limited Plan and the Mid-Career Plan (together, the “Prior Plans”) were merged into
a single plan, this Supplemental Executive Retirement Income Plan for Non-Represented Employees of Public Service Enterprise Group Incorporated and Its Affiliates (“Plan”). The merger of these plans was not intended to change the
eligibility of or benefits payable to the participants in the Prior Plans. 
 The Plan was amended effective January 1,
2011 to reflect that participation as to the Mid-Career Hire benefit was frozen. 
 Effective as of January 1, 2012, the
benefit formula under the Pension Plan is changing from a 5-year final average pay formula to a 7-year final average pay formula. The change in the benefit formula under the Pension Plan affects the benefits provided under the Plan. Accordingly, the
Plan is being amended effective January 1, 2012 to reflect these changes. 
 Section 1. Definitions 

When used herein, the words and phrases hereinafter defined shall have the following meanings unless a different meaning is clearly
required by the context of this Plan: 
 1.1 “Affiliate” shall mean (a) any organization while it is a
member of a controlled group of corporations (as defined in Code Section 414(b)) which includes the Company; or (b) any trades or businesses (whether or not incorporated) while they are under common control (as defined in Code
Section 414(c), as modified by Code Section 415(h)) with the Company. 

 1.2 “Beneficiary” shall mean any person or persons selected by a
Participant on a form provided by the Company who may become eligible to receive the benefits provided under this Plan in the event of such Participant’s death. 
 1.3 “Benefit Commencement Date” shall mean the date on which a Participant’s Supplemental Retirement Benefit shall commence or be paid under this Plan. 

1.4 “Board” or “Board of Directors” shall mean the Board of Directors of Public Service Enterprise
Group Incorporated. 
 1.5 “Cash Balance Plan” shall mean the Cash Balance Pension Plan of Public Service
Enterprise Group Incorporated and each predecessor, successor or replacement plan. 
 1.6 “CEO” shall mean the
Chief Executive Officer of Public Service Enterprise Group Incorporated. If Public Service Enterprise Group Incorporated shall have no designated Chief Executive Officer, “CEO” shall mean the President of Public Service Enterprise Group
Incorporated. 
 1.7 “Change in Control” shall, for the purposes of the Subsection 11.2 of this Plan, mean the
occurrence of any of the following events: 
  

	 	(i)	any “person” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended from time to time (the “Act”)) is or
becomes the beneficial owner within the meaning of Rule 13d-3 under the Act (a “Beneficial Owner”), directly or indirectly, of the Company’s securities of (not including in the securities beneficially owned by such person any
securities acquired directly from the Company or its Affiliates) representing 25% or more of the combined voting power of the Company’s then outstanding securities, excluding any person who becomes such a Beneficial Owner in connection with a
transaction described in clause (A) of paragraph (iii) below; or 

  

	 	(ii)	the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on December 15, 1998, constitute
the Board of Directors and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of
directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who
either were directors on December 15, 1998 or whose appointment, election or nomination for election was previously so approved or recommended; or 

  
 4 

	 	(iii)	there is consummated a merger or consolidation of the Company or any direct or indirect wholly owned subsidiary of the Company with any other corporation, other than
(A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any subsidiary of the Company, at least 75% of the
combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (B) a merger or consolidation effected to implement a recapitalization of the
Company (or similar transaction) in which no person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of the Company’s then outstanding securities; or

  

	 	(iv)	the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by
the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 75% of the combined voting power of the voting
securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale. 

Notwithstanding the foregoing subparagraphs (i), (ii), (iii) and (iv), a “Change in Control” shall not be deemed to have
occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Company immediately prior to such transaction or series of transactions continue
to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions. 

1.8 “Code” shall mean the Internal Revenue Code of 1986, as amended. A reference to a section of the Code` shall also
refer to any regulations and other guidance issued under that section. 
 1.9 “Committee” or “Employee
Benefits Committee” shall mean the Employee Benefits Committee of the Company. 

  
 5 

 1.10 “Company” shall mean Public Service Enterprise Group Incorporated and
each Participating Affiliate. 
 1.11 “Compensation” with respect to any Participant shall mean the total
remuneration paid for services rendered to the Company, determined without regard to the exclusion of any amounts pursuant to Subsection 1.10(a) of the Pension Plan or Subsection 1.1(m)(1) of the Cash Balance Plan, but excluding: 

 

	 	(a)	the Company’s cost for any public or private employee benefit plan other than elective contributions that are made by the Company on behalf of a Participant that
are not includable in income under Section 125, 132(f), or 401(k) of the Code; and 

  

	 	(b)	all awards to the Participant under the Company’s Long-Term Incentive Compensation Plan. 

For purposes of calculating the supplemental retirement benefit payable pursuant to Section 3 of this Plan to a Participant who is a
participant in the Cash Balance Plan, Compensation shall include amounts paid in 2006 or later years under the SMICP, the MICP or the ER&T Program. Compensation for any such year shall not exceed 150 percent of the Participant’s annual
base salary in effect as of January 1 of that year. 
 1.12 “Credited Service” shall mean the aggregate of
all periods of employment with the Company, an Affiliate or former Affiliate and all periods of additional service credit granted to Participants listed on Schedule A by the Company for which a Participant will be given credit in computing his/her
Supplemental Retirement Benefit. 
 1.13 “Employee” shall mean any individual in the employ of the Company or a
Participating Affiliate who is not included within a unit of employees covered by a collective bargaining agreement and who is receiving remuneration for personal services rendered to the Company or Participating Affiliate other than (a) solely
as a director of the Company or a Participating Affiliate, (b) as a consultant, (c) as an independent contractor, (d) an individual who is a “leased employee” within the meaning of Code section 414(n), or (e) any
other individual engaged by the Company or Participating Affiliate in a relationship that the Company characterizes as other than an employment relationship or who has waived his/her rights to coverage as an employee (regardless of whether a
determination is made by the Internal Revenue Service or other governmental agency or court after the individual is engaged to perform such services that the individual is an employee of the Company or Participating Affiliate for the purposes of the
Code or otherwise). 
 1.14 “Employee Benefits Policy Committee” shall mean the Employee Benefits Policy
Committee of the Company. 
 1.15 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
amended. A reference to a section of ERISA shall also refer to any regulations and other guidance issued under that section. 

  
 6 

 1.16 “ER&T Program” shall mean the PSEG Power LLC Incentive
Compensation Program for PSEG Energy Resources & Trade LLC Employees and each predecessor, successor or replacement plan. 
 1.17 “Human Resources Department” shall mean the Human Resources Department of the Company’s subsidiary, PSEG Services Corporation. 

1.18 “LTIP” shall mean the Public Service Enterprise Group Incorporated 2004 Long-Term Incentive Plan and each
predecessor, successor or replacement plan. 
 1.19 “MICP” shall mean the Public Service Enterprise Group
Incorporated Management Incentive Compensation Plan and each predecessor, successor or replacement plan. 
 1.20 “Normal
Retirement Date” shall mean the first day of the month coinciding with or next following a Participant’s attainment of age 65. In the case of a Participant who is employed after attaining age 65, Normal Retirement Date shall mean the
first day of the month coinciding with or next following the date on which the Participant’s Separation from Service occurs. 
 1.21 “Participant” shall mean any Employee or former Employee who meets the requirements of Subsections 2 or 5 of this Plan. 

1.22 “Participating Affiliate” shall mean any Affiliate of the Company which (a) is the sponsor or a Participating
Affiliate of the Pension Plan and/or the Cash Balance Plan; (b) adopts this Plan with the approval of the Board of Directors; (c) authorizes the Board of Directors and the Employee Benefits Committee to act for it in all matters arising
under or with respect to this Plan; and (d) complies with such other terms and conditions relating to this Plan as may be imposed by the Board of Directors. 
 1.23 “Pension Plan” shall mean the Pension Plan of Public Service Enterprise Group Incorporated and each predecessor, successor or replacement plan. 

1.24 “Pension Plan Retirement Benefit” shall mean the aggregate annual benefit payable to a Participant pursuant to the
Pension Plan or the Cash Balance Plan, as the case may be, by reason of the Participant’s termination of employment with the Company and all Affiliates for any reason other than death. 

1.25 “Pension Plan Surviving Spouse Benefit” shall mean the aggregate annual benefit payable to the Surviving Spouse of
a Participant pursuant to the Pension Plan or the Cash Balance Plan, as the case may be, in the event of the death of the Participant at any time prior to commencement of payment of the Participant’s Pension Plan Retirement Benefit. 

1.26 “Plan” shall mean this Supplemental Executive Retirement Income Plan for Non-Represented Employees of Public
Service Enterprise Group Incorporated and Its Affiliates. 
 1.27 “Plan Year” shall mean the calendar year.

  
 7 

 1.28 “Retirement” shall mean: 

 

	 	(a)	in the case of a Participant who is a participant in the Pension Plan, a Separation from Service either (1) after attaining age 65; or (2) following the
date when the sum of the Participant’s age and credited service (as defined in the Pension Plan) equals or exceeds 80. 

  

	 	(b)	in the case of a Participant who is a participant in the Cash Balance Plan, a Separation from Service after either (1) attaining age 65; or (2) attaining age
55 and completing five or more years of credited service (as defined in the Cash Balance Plan). 

 1.29
“Reinstatement Plan” shall mean the Retirement Income Reinstatement Plan for Non-Represented Employees of Public Service Enterprise Group Incorporated and its Affiliates. 

1.30 “Reinstatement Plan Retirement Benefit” shall mean the aggregate annual benefit payable to a Participant pursuant
to the Reinstatement Plan for any reason other than death. 
 1.31 “Reinstatement Plan Surviving Spouse
Benefit” shall mean the aggregate annual benefit payable to the Surviving Spouse of a Participant pursuant to the Reinstatement Plan in the event of the death of the Participant at any time prior to commencement of payment of his
Reinstatement Plan Retirement Benefit. 
 1.32 “Retirement Plans” shall mean all qualified or nonqualified
retirement benefits plans maintained by employers other than the Company or any of its Affiliates. 
 1.33
“SMICP” shall mean the Public Service Enterprise Group Incorporated Senior Management Incentive Compensation Plan and each predecessor, successor or replacement plan. 

1.34 “Separation from Service” shall mean, subject to subsections (a) and (b), a Participant’s termination
from employment with the Company and all Affiliates, whether by retirement or resignation from or discharge by the Company or an Affiliate. 
  

	 	(a)	A Separation from Service shall be deemed to have occurred if a Participant and the Company or any Affiliate reasonably anticipates, based on the facts and
circumstances, that either: 

  

	 	(i)	the Participant will not provide any additional services for the Company or an Affiliate after a certain date; or 

 

	 	(ii)	the level of bona fide services performed by the Participant after a certain date will permanently decrease to no more than 50 percent of the average level of bona
fide services performed by the Participant over the immediately preceding 36 months. 

  
 8 

	 	(b)	If a Participant is absent from employment due to military leave, sick leave or any other bona fide leave of absence authorized by the Company or an Affiliate and there
is a reasonable expectation that the Participant will return to perform services for the Company or an Affiliate, a Separation from Service will not occur until the later of: 

 

	 	(i)	the first date immediately following the date that is six months after the date that the Participant was first absent from employment; or 

 

	 	(ii)	the date the Participant no longer retains a right to reemployment, to the extent the Participant retains a right to reemployment with the Company or any Affiliates
under applicable law or by contract. 

 If a Participant fails to return to work upon the expiration of any
military leave, sick leave or other bona fide leave of absence where such leave is for less than six months, the Separation from Service shall occur as of the date of the expiration of such leave. 

1.35 “Specified Employee” shall mean any individual who is a key employee (as defined in Section 416(i) of the Code
without regard to Section 416(i)(5)) of the Code) of the Company at any time during the 12-month period ending on each December 31 (the “identification date”). If an individual is a key employee as of an identification date, the
individual shall be treated as a Specified Employee for the 12-month period beginning on the April 1 following the identification date. Notwithstanding the foregoing, an individual shall not be treated as a Specified Employee unless any stock
of the Company or an Affiliate is publicly traded on an established securities market or otherwise. 
 1.36
“Supplemental Retirement Benefit” shall mean the benefit payable to a Participant pursuant to this Plan by reason of the Participant’s Separation from Service with the Company and all Affiliates for any reason other than death.

 1.37 “Surviving Spouse” shall mean a person who is married to a Participant or is the domestic partner in a
legally recognized same sex civil union under applicable state law of a Participant at the date of the Participant’s death. 
 1.38 “Supplemental Surviving Spouse Benefit” shall mean the benefit payable to a Surviving Spouse pursuant to this Plan. 

1.39 “Voting Stock” shall mean the outstanding stock of a corporation entitled to vote in the election of the directors
of that corporation 
 Section 2. Additional Service Credit Participants 

2.1 Each Employee who is selected by the CEO to participate in this Plan and be granted extra service credit shall be listed in Schedule
A. Upon selection for participation in the 

  
 9 

 
Plan, the CEO shall designate the number of years of additional Credited Service to which such Participant shall be entitled to be credited in calculating his/her Supplemental Retirement Benefit
under Section 3 of this Plan. Schedule A shall include the name of each selected Participant and the number of years of additional Credited Service to which each such Participant shall be entitled to be credited. 

Each Participant listed on Schedule A that incurs a Separation from Service after becoming vested in his benefits payable under the
Pension Plan or the Cash Balance Plan shall be eligible to receive a Supplemental Retirement Benefit pursuant to Section 3 of this Plan. The Surviving Spouse of a Participant described in the preceding sentence who dies prior to commencement of
payment of his Reinstatement Plan Retirement Benefit shall be eligible to receive a Supplemental Surviving Spouse Benefit pursuant to Section 4 of this Plan. 
 Effective January 1, 2011, no Employee shall become a Participant in the Plan with respect to benefits provided in Sections 2 through 4 of the Plan. 

Section 3. Additional Service Credit Supplemental Retirement Benefit 

3.1 The Additional Service Credit Supplemental Retirement Benefit payable to an eligible Participant under this section shall be equal to
the excess of (a) over (b) where: 
  

	 	(a)	is the sum of (i) the amount of Pension Plan Retirement Benefit or Cash Balance Pension Plan Retirement Benefit, and (ii) the amount of Reinstatement Plan
Supplemental Retirement Benefit to which the Participant would have been entitled as of his/her Normal Retirement Date if such benefits were computed with the additional years of Credited Service provided for in Subsections 5.4(a)(i)(y) and
5.4(b)(i)(y) of this Plan; and 

  

	 	(b)	is the sum of: (i) the Pension Plan Retirement Benefit or Cash Balance Pension Plan Retirement Benefit, or (ii) and Reinstatement Plan Retirement Benefit,
actually payable to the Participant or payable to a third party on the Participant’s behalf as of his/her Normal Retirement Date. 

 For Pension Plan Participants who incur a Separation from Service after December 31, 2011, the additional years of Credited Service shall be applied to the 7-year final average pay formula for the
Pension Plan Retirement Benefit and Reinstatement Plan Supplemental Retirement Benefit. 
 The amounts described in (a) and
(b) shall be computed as of the date of Separation from Service of the Participant with the Company and all Affiliates in the form of a single life annuity payable over the lifetime of the Participant only commencing on his/her Normal
Retirement Date. 

  
 10 

 This Additional Service Credit Supplemental Retirement Benefit shall be calculated as a
single life annuity commencing on the Participant’s Normal Retirement Date. If payment of a Participant’s Additional Service Credit Supplemental Retirement Benefit commences or is paid before his/her Normal Retirement Date, the benefit
amount calculated pursuant to this paragraph (a) shall be reduced for early commencement in accordance with the early retirement reduction factors applicable to calculation of the Participant’s benefit under the Pension Plan or Cash
Balance Plan, as applicable. 
 3.2 The Additional Service Credit Supplemental Retirement Benefit payable to a Participant shall
be paid as follows: 
  

	 	(a)	If the Participant’s Separation from Service occurs prior to Retirement, the present value of his/her Additional Service Credit Supplemental Retirement Benefit
shall be paid in a single lump sum distribution. 

  

	 	(b)	Except as provided in Subsection 3.2(e), if the Participant’s Separation from Service occurs on or after his/her Retirement, the Participant may elect to receive
his/her Additional Service Credit Supplemental Retirement Benefit in the form of a single life annuity or a joint and survivor annuity. 

  

	 	(i)	The single life annuity option is an annuity providing equal monthly payments for the lifetime of the Participant with no survivor benefits. 

 

	 	(ii)	The joint and survivor annuity option is a reduced monthly benefit payable to the Participant for life and to a surviving named Beneficiary for the lifetime of the
Beneficiary in an amount equal to 50 percent, 75 percent, or 100 percent (as elected by the Participant) of the amount payable during the Participant’s lifetime. 

 

	 	(c)	A Participant may elect an annuity form of payment pursuant to paragraph (b) at any time before his Benefit Commencement Date, provided that any election shall
also apply to any benefits payable to the Participant under the Reinstatement Plan and Section 5 of this Plan. If a Participant fails to make a timely election, his Additional Service Credit Supplemental Retirement Benefit shall be paid in the
form of: 

  

	 	(i)	a single life annuity, if he/she is not married as of his Benefit Commencement Date; or 

 

	 	(ii)	a 50 percent joint and survivor annuity with his/her spouse as Beneficiary, if he/she is married as of his Benefit Commencement Date. 

  
 11 

	 	(d)	If a Participant elects a joint and survivor annuity, but his/her Beneficiary dies before the Participant’s Benefit Commencement Date, the Participant’s
Additional Service Credit Supplemental Retirement Benefit shall be paid in the form of a single life annuity unless the Participant validly elects a new form of payment pursuant to this subsection. 

 

	 	(e)	Notwithstanding paragraphs (b), (c) and (d), if the Participant’s total vested benefit under this Plan, as presently valued at the time of commencement of the
payment of such benefit, does not exceed $30,000, his/her benefit shall be paid in a single lump sum distribution. 

 3.3 Except as otherwise provided in this subsection, payment of a Participant’s Additional Service Credit Supplemental Retirement Benefit shall commence or shall be made as of the last day of the
month in which the Participant’s Separation from Service occurs or as soon as administratively practicable after such date, but in no event later than the last day permitted under Section 409A of the Code for treating a delayed payment as
having been made on such payment date. 
 If the Participant is a Specified Employee, payment of the Participant’s
Additional Service Credit Supplemental Retirement Benefit shall commence or shall be made as of the last day of the month coinciding with or next following the six-month anniversary of the Participant’s Separation from Service. In any case
where the payment of benefits is delayed pursuant to this paragraph, the Participant’s Additional Service Credit Supplemental Retirement Benefit shall be calculated as of the last day of the month in which the Participant’s Separation from
Service occurs. Any annuity payments to which the Participant would be entitled during the first six months after his/her Separation from Service shall be accumulated and paid to the Participant without interest as of the last day of the month
coinciding with or next following the six-month anniversary of his Separation from Service. If the Participant’s Additional Service Credit Supplemental Retirement Benefit is payable in the form of a lump sum distribution, the benefit shall be
increased with interest at the rate of the first segment rate as determined pursuant to Section 417(e)(3)(C) and (D) of the Code for the second month preceding the first day of the Plan Year in which the Separation from Service occurs.

 Payment of the Participant’s benefit shall not be delayed or accelerated, except as provided in this subsection. If the
Committee determines that a delay or acceleration of a Participant’s benefit complies with the requirements of Section 409A of the Code (including an acceleration to pay employment taxes), the Committee may either delay or accelerate the
payment of the benefit in accordance with the terms of Section 409A of the Code as it deems advisable in its sole discretion. If any payment is delayed in accordance with this paragraph, the Plan shall pay such delayed payments without interest
following the expiration of the delay. 
 3.4 An Additional Service Credit Supplemental Retirement Benefit which is payable in
any form other than a single life annuity shall be the actuarial equivalent of the Additional Service Credit Supplemental Retirement Benefit set forth in Subsection 3.1 above as determined by the same actuarial adjustments as those specified in the
Pension Plan or Cash Balance Plan, as applicable, with respect to determination of the amount of retirement benefits payable pursuant 

  
 12 

 
to the Pension Plan or Cash Balance Plan, as applicable, on the date for commencement of payment hereunder. 
 3.5 If a Participant earns a further Additional Service Credit Supplemental Retirement Benefit after a Separation from Service, any annuity benefits being paid to the Participant shall be increased to
reflect such additional accruals as of the January 1 following the Plan Year in which such additional benefit accrues. If the Participant received a lump sum distribution of his/her Additional Service Credit Supplemental Retirement Benefit as
of the earlier Separation from Service, the value of the additional accruals shall be paid to him/her in a lump sum distribution as of the January 1 following the Plan Year in which such additional benefit accrues. 

Section 4. Additional Service Credit Supplemental Surviving Spouse Benefit 

4.1 If a Participant dies prior to commencement of payment of his/her Pension Plan Retirement Benefit under circumstances in which a
Pension Plan Surviving Spouse Benefit is payable to his/her Surviving Spouse, then an Additional Service Credit Supplemental Surviving Spouse Benefit shall be payable to his/her Surviving Spouse as hereinafter provided. This Additional Service
Credit Supplemental Surviving Spouse Benefit shall be equal to the excess of (a) over (b) where: 
  

	 	(a)	is the sum of: (i) the amount of the Pension Plan Surviving Spouse Benefit or Cash Balance Pension Plan Surviving Spouse Benefit, and (ii) the amount of
Reinstatement Plan Surviving Spouse Benefit to which the Surviving Spouse would have been entitled under the Pension Plan and the Reinstatement Plan, as applicable, as of the Participant’s Normal Retirement Date if such benefits were computed
with the additional years of Credited Service provided for in Subsections 5.4(a)(i)(y) and 5.4(b)(i)(y); and 

  

	 	(b)	is the sum of: (i) the Pension Plan Surviving Spouse Benefit or Cash Balance Pension Plan Surviving Spouse Benefit, and (ii) Reinstatement Plan Surviving
Spouse Benefit actually payable to the Surviving Spouse as of the Participant’s Normal Retirement Date. 

The Additional Service Credit Supplemental Surviving Spouse Benefit shall be calculated as a single life annuity commencing on the
Participant’s Normal Retirement Date. If payment of the Additional Service Credit Supplemental Surviving Spouse Benefit commences or is paid before the Participant’s Normal Retirement Date, the benefit amount calculated pursuant to this
subsection shall be reduced for early commencement in accordance with the reduction factors applicable to calculation of a Pension Plan Surviving Spouse Benefit. 
 4.2 The Additional Service Credit Supplemental Surviving Spouse Benefit shall be paid as follows: 

  
 13 

	 	(a)	If the Participant’s death occurs prior to Retirement, the present value of the Additional Service Credit Supplemental Surviving Spouse Benefit shall be paid in a
single lump sum distribution. 

  

	 	(b)	If the Participant’s death occurs on or after Retirement, the Additional Service Credit Supplemental Surviving Spouse Benefit shall be payable in monthly
installments over the life of the Surviving Spouse. Notwithstanding the preceding sentence, if the present value of the total benefit payable to the Surviving Spouse under this Plan does not exceed $20,000, the benefit payable shall be made in a
single lump sum distribution 

 4.3 Payment of the Additional Service Credit Supplemental Surviving Spouse Benefit
shall commence or shall be made as of the last day of the month in which the Participant’s death occurs or as soon as administratively practicable after such date, but in no event later than the last day permitted under Section 409A of the
Code for treating a delayed payment as having been made on such payment date. 
 Section 5. Additional Limited Benefits

 5.1 Each Employee nominated by the CEO and designated by the Employee Benefits Policy Committee shall be a Schedule B
Participant and shall be eligible to the benefits provided for in this Section 5. The CEO shall nominate such select and key Employees based upon such criteria as he shall deem appropriate due to the Employee’s responsibilities and
opportunity to contribute substantially to the financial and operating objectives of the Company. The names of all Participants designated hereunder shall be listed in Schedule B to this Plan. 

5.2. If a Schedule B Participant dies while in the active employment of the Company or an Affiliate, the Company shall provide a death
benefit to such Participant’s Beneficiary in an amount equal to 150% of the annual rate of salary of the Participant in effect at the date of death, adjusted to the nearest $1,000. Payment shall be made in a lump sum as of the first day of the
month following the Participant’s date of death or as soon as administratively practicable after such date, but in no event later than the last day permitted under Code Section 409A for treating a delayed payment as having been made on
such payment date. 
 5.3 At Retirement, the Company shall provide each Schedule B Participant with an additional limited
retirement benefit calculated as provided in this Section 5. 
 Notwithstanding any other provision of this Plan to the
contrary, the benefit hereunder payable to Frederick W. Lark and Richard D. Quinn, III, each of whom commenced a phased retirement during 2008, shall be calculated as of December 31, 2008 and shall be paid commencing as of January 31,
2009. 

  
 14 

 5.4 The additional limited retirement benefit shall be calculated as follows: 

 

	 	(a)	Pension Plan Participants: 

  

	 	(i)	The Participant’s Compensation shall be multiplied by an amount equal to one one-hundredth of the sum of (x) the number of the Participant’s years
of credited service under the Pension Plan at Retirement (including any additional years of age and service provided to the Participant in accordance with any employment, change in control, or similar arrangement applicable to the Participant so
long as the Participant incurs a termination of service from the Company and its Affiliates during the two-year period commencing upon the date of a Change in Control), (y) the number of any additional years of service credit to which
the Participant may be entitled from the Company under Section 2 of this Plan or any written arrangement with the Company or an Affiliate (excluding any written arrangement between the Company or an Affiliate and the Participant relating to a
Change in Control), and (z) 30; but, in no event, shall the multiple be greater than 0.75. 

  

	 	(ii)	 The amount determined under subparagraph (i) of this Subsection 5.4(a) shall be reduced by the sum of (x) the amount the
Participant would be entitled to at Retirement as an annual pension benefit under the Pension Plan and Section 3 of this Plan and the Reinstatement Plan calculated as a single life annuity payable at the Participant’s Normal Retirement
Date (as defined under the Pension Plan) without reduction for any pre-retirement survivor’s option coverage or any reduction for early retirement, (y) 100% of the amount of the unreduced annual Social Security benefit to which the
Participant would be entitled at age 65 (or such other age which may be established by the Social Security Administration from time to time as the earliest age at which a Participant may receive an unreduced benefit thereunder), assuming that the
Participant has no earnings from the date of Retirement to age 65 (or such other applicable age), or, if greater, any disability benefit under Social Security to which the Participant may be entitled, and (z) the aggregate of the annual
benefits to which the Participant is entitled under all Retirement Plans as of the date the Participant is employed by the Company or an Affiliate, such Social Security Benefits and benefits under all Retirement Plans to be calculated as single life
annuities without any reductions, under rules, procedures and equivalents determined by the Committee. To determine the amounts referred to under (y) and (z) above, the Participant shall file a declaration of all such amounts with the
Human Resources Department in such form as 

  
 15 

	 	
the Committee may require from time to time. No benefit shall be paid under the Plan until such a declaration, in satisfactory form, shall be so filed. If a Participant is granted a disability
Social Security benefit, he/she shall notify the Company thereof within 30 days thereof, and the Participant’s retirement benefit under this section of the Plan shall be adjusted accordingly. The Company shall be entitled to rely on such
statements in making payment, and if any such statement is incorrect or is not furnished, the Company shall be entitled to reimbursement from the Participant, the Beneficiary or their legal representatives for any overpayment and may reduce or
suspend future payments to recover any such overpayment. In the event it is established to the satisfaction of the Committee, in its sole discretion, that any such statement was intentionally false or omitted, the Participant or Beneficiary shall be
entitled to no further payments under this section of the Plan, and the Company shall be entitled to recover any payments made hereunder. 

  

	 	(iii)	For Participants who incur a Separation from Service after December 31, 2011, the number of any additional years of service credited to a Participant under
Subsection 5.4(a)(i)(y) of the Plan that a Participant may be entitled from the Company under Section 2 of this Plan or any written arrangement with the Company or an Affiliate shall be applied to the 7-year final average pay formula. The 30
points credited to a Participant under Subsection 5.4(a)(i)(z) of the Plan shall be prorated based on the number of actual years of Credited Service that a Participant has as of December 31, 2011 and has during the period beginning on
January 1, 2012 and ending on the date he/she incurs a Separation from Service, without regard to any additional years of service credited to the Participant under Subsection 5.4(a)(i)(y) and without regards to any cap on Credited Service.

  

	 	(b)	Cash Balance Plan Participants: 

  

	 	(i)	 The Participant’s Compensation shall be multiplied by an amount equal to one one-hundredth of the sum of (x) the number of the
Participant’s years of service under the Pension Plan with which such Participant would have been credited at Retirement had the Participant participated in the Pension Plan from his/her date of hire and including any additional years of age
and service provided to the participant in accordance with any employment, change in control, or similar arrangement applicable to the Participant so long as the Participant incurs a termination of service from the Company and its Affiliates during
the two-year period commencing upon the date of a Change in Control, (y) the number 

  
 16 

	 	
of any additional years of service credit to which the Participant may be entitled from the Company under Section 3 of this Plan or any written arrangement with the Company or an Affiliate
(excluding any written arrangement between the Company or an Affiliate relating to a Change in Control) and (z) 30; but, in no event, shall the multiple be greater than 0.75. 

 

	 	(ii)	The amount determined under subparagraph (i) of this Subsection 8.4(b) shall be reduced by the sum of (x) the amount the Participant would be entitled
to at Retirement as an annual pension benefit under the Cash Balance Plan and Section 3 of this Plan and the Reinstatement Plan calculated as a single life annuity payable at the Participant’s Normal Retirement Date (as defined under the
Cash Balance Plan), (y) 100% of the amount of the unreduced annual Social Security benefit to which the Participant would be entitled at age 65 (or such other age which may be established by the Social Security Administration from time
to time as the earliest age at which a Participant may receive an unreduced benefit thereunder), assuming that the Participant has no earnings from the date of Retirement to age 65 (or such other applicable age), or, if greater, any disability
benefit under Social Security to which the Participant may be entitled, and (z) the aggregate of the annual benefits to which the Participant is entitled under all Retirement Plans as of the date the Participant is employed by the
Company or an Affiliate, such Social Security Benefits and benefits under all Retirement Plans to be calculated as single life annuities without any reductions, under rules, procedures and equivalents determined by the Committee. To determine the
amounts referred to under (y) and (z) above, the Participant shall file a declaration of all such amounts with the Human Resources Department in such form as the Committee may require from time to time. No benefit shall be paid under the
Plan until such a declaration, in satisfactory form, shall be filed. If a Participant is granted a disability Social Security benefit, he shall notify the Company thereof within 30 days thereof, and the Participant’s retirement benefit under
this Plan shall be adjusted accordingly. The Company shall be entitled to rely on such statements in making payment, and if any such statement is incorrect or is not furnished, the Company shall be entitled to reimbursement from the Participant, the
Beneficiary or their legal representatives for any overpayment and may reduce or suspend future payments to recover any such overpayment. In the event it is established to the satisfaction of the Committee, in its sole discretion, that any such
statement was intentionally false or omitted, the Participant or Beneficiary shall be entitled to no further payments under this section of the Plan, and the Company shall be entitled to recover any payments made hereunder. 

  
 17 

	 	(iii)	For Participants who incur a Separation from Service after December 31, 2011, the number of any additional years of service credited to a Participant under
Subsection 5.4(b)(i)(y) of the Plan that a Participant may be entitled from the Company under Section 2 of this Plan or any written arrangement with the Company or an Affiliate shall be applied to the 7-year final average pay formula. The 30
points credited to a Participant under Subsection 5.4(b)(i)(z) of the Plan shall be prorated based on the number of actual years of Credited Service that a Participant has as of December 31, 2011 and has during the period beginning on
January 1, 2012 and ending on the date he/she incurs a Separation from Service, without regard to any additional years of service credited to the Participant under Subsection 5.4(b)(i)(y) and without regards to any cap on Credited Service.

  

	 	(c)	The annual amount determined under this Subsection 5.4 shall be paid in the form of a life annuity; either a single life annuity or a joint and survivor annuity, as
elected by the Participant. 

  

	 	(i)	The single life annuity option is an annuity providing equal monthly payments for the lifetime of the Participant with no survivor benefits. 

 

	 	(ii)	The joint and survivor annuity option is a reduced monthly benefit payable to the Participant for life and to a surviving named Beneficiary for the lifetime of the
Beneficiary in an amount equal to 50%, 75%, or 100% (as elected by the Participant) of the amount payable during the Participant’s lifetime. 

 Notwithstanding the preceding provisions, if the present value of the Participant’s total vested benefit under this Plan does not exceed $30,000, his/her benefit shall be paid a single lump sum
distribution. 
  

	 	(d)	A Participant may elect an annuity form of payment pursuant to paragraph (c) at any time before his Benefit Commencement Date. If a Participant fails to make a
timely election, his/her retirement benefit shall be paid in the form of: 

  

	 	(i)	a single life annuity, if he/she is not married as of his/her benefit commencement date; or 

 

	 	(ii)	a 50 percent joint and survivor annuity with his/her spouse as Beneficiary, if he/she is married as of his benefit commencement date. 

  
 18 

	 	(e)	Except as otherwise provided in this paragraph (e), payment of a Participant’s additional limited retirement benefit shall commence or shall be made as of the
last day of the month in which the Participant’s Retirement occurs or as soon as administratively practicable after such date, but in no event later than the last day permitted under Code Section 409A for treating a delayed payment as
having been made on such payment date. 

 If the Participant is a Specified Employee, payment of the
Participant’s additional limited retirement benefit shall commence or shall be made as of the last day of the month coinciding with or next following the six-month anniversary of the Participant’s Retirement date. In any case where the
payment of benefits is delayed pursuant to this paragraph, the Participant’s additional limited retirement benefit shall be calculated as of the last day of the month in which the Participant’s Retirement occurs. Any annuity payments to
which the Participant would be entitled during the first six months after his Retirement shall be accumulated and paid to the Participant without interest as of the last day of the month coinciding with or next following the six-month anniversary of
his Retirement. If the Participant’s additional limited retirement benefit is payable in the form of a lump sum distribution, the benefit shall be increased with interest at the first segment rate as determined pursuant to Code
Section 417(e)(3)(C) and (D) for the second month preceding the first day of the Plan Year in which the Retirement occurs. 
 Payment of the Participant’s benefit shall not be delayed or accelerated, except as provided in this subsection. If the Committee determines that a delay or acceleration of a Participant’s
benefit complies with the requirements of Code Section 409A (including an acceleration to pay employment taxes), the Committee may either delay or accelerate the payment of the benefit in accordance with the terms of Code Section 409A as
it deems advisable in its sole discretion. If any payment is delayed in accordance with this paragraph, the Plan shall pay such delayed payments without interest following the expiration of the delay. 

 

	 	(f)	If a Participant earns an additional limited retirement benefit after a Retirement, any annuity benefits being paid to the Participant shall be increased to reflect
such additional accruals as of the January 1 following the Plan Year in which such additional limited retirement benefit accrues. If the Participant received a lump sum distribution of his additional limited retirement benefit as of the earlier
Retirement, the value of the additional accruals shall be paid to him in a lump sum distribution as of the January 1 following the Plan Year in which such additional benefit accrues. 

Notwithstanding the foregoing, if a Participant named in Subsection 5.3 earns an additional retirement benefit after December 31,
2008, the 

  
 19 

 
additional accruals shall be payable as of the Participant’s Retirement as otherwise provided in this Section 5. 
 Section 6. Administration of the Plan 
 6.1 The Committee shall be the
named fiduciary of this Plan responsible for the general operation and administration of this Plan and for carrying out the provisions thereof. The Committee shall have discretionary authority to construe the terms of this Plan and shall be the
final arbiter of any question that may arise under this Plan. 
 6.2 The Committee shall adopt such rules and procedures as it
deems necessary and advisable to administer this Plan and to transact its business. Subject to the other requirements of this Section 6, the Committee may— 
  

	 	(a)	employ agents to carry out non-fiduciary responsibilities; 

  

	 	(b)	employ agents to carry out fiduciary responsibilities (other than trustee responsibilities as defined in Section 405(c)(3) of ERISA); 

 

	 	(c)	consult with counsel, who may be counsel to the Company or an Affiliate; and 

 

	 	(d)	provide for the allocation of fiduciary responsibilities (other than trustee responsibilities as defined in Section 405(c)(3) of ERISA) among its members.

 However, any action described in paragraphs (b) or (d) of this Subsection 6.2, and any modification
or rescission of any such action, may be effected by the Committee only by a resolution approved by a majority of the Committee. The Committee shall be entitled to rely conclusively upon all tables, valuations, certificates, opinions and reports
furnished by any actuary, accountant, controller, counsel or other person employed or engaged by the Committee with respect to this Plan. 
 6.3 The Committee shall keep written minutes of all its proceedings, which shall be open to inspection by the Board of Directors. In the case of any decision by the Committee with respect to a claim for
benefits under this Plan, such Committee shall include in its minutes a brief explanation of the grounds upon which such decision was based. 
 6.4 In performing their duties, the members of the Committee shall act solely in the interest of the Participants in this Plan and their Beneficiaries and 

 

	 	(a)	for the exclusive purpose of providing benefits to Participants and their Beneficiaries; 

  
 20 

	 	(b)	with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would
use in the conduct of an enterprise of alike character and with like aims; and 

  

	 	(c)	in accordance with the documents and instruments governing this Plan insofar as such documents and instruments are consistent with the provisions of Title I of ERISA.

 6.5 In addition to any other duties the Committee may have, the Committee shall review the performance of all
persons to whom the Committee shall have delegated or allocated fiduciary duties pursuant to the provisions of this Section 6. 
 6.6 The Company agrees to indemnify and reimburse, to the fullest extent permitted by law, members of the Committee, directors and employees of the Company and its Affiliates, and all such former members,
directors and employees, for any and all expenses, liabilities or losses arising out of any act or omission relating to the rendition of services for or the management and administration of this Plan. 

6.7 No member of the Committee nor any delegate thereof shall be personally liable by virtue of any contract, agreement or other
instrument made or executed by him/her or on his/her behalf in such capacity. 
 Section 7. Claims Procedure and Status
Determination 
 7.1 Claims for benefits under this Plan and requests for a status determination shall be filed in writing
with the Company. 
 7.2 In the case of a claim for benefits, written notice shall be given to the claiming Participant or
Beneficiary of the disposition of such claim, setting forth specific reasons for any denial of such claim in whole or in part. If a claim is denied in whole or in part, the notice shall state that such Participant or Beneficiary may, within sixty
days of the receipt of such denial, request in writing that the decision denying the claim be reviewed by the Committee and provide the Committee with information in support of his/her position by submitting such information in writing to the
Secretary of the Committee. 
 7.3 The Committee shall review each claim for benefits which has been denied in whole or in part
and for which such review has been requested and shall notify, in writing, the affected Participant or Beneficiary of its decision and the reasons therefor. 
 7.4 In the case of a request for status determination, written notice shall be given to the requesting person within a reasonable time setting forth specific reasons for the decision. 

  
 21 

 Section 8. Amendment or Termination 

8.1 The Company reserves the right to amend or terminate this Plan when, in the sole opinion of the Company, such amendment or
termination is advisable. Any such amendment or termination shall be made pursuant to a resolution of the Board or of the Employee Benefits Policy Committee and shall be effective as provided for in such resolution. 

8.2 No amendment or termination of this Plan shall directly or indirectly deprive any current or former Participant, Beneficiary or
Surviving Spouse of a previously acquired right unless such Participant or Beneficiary or legal representative shall consent to such change. Provided, further, however, that after a Change in Control, this Plan may not be terminated nor the benefit
calculation reduced with respect to any Participant in the Plan on the date of such Change in Control unless such Participant or his/her Beneficiary or his/her legal representative shall consent to such change. No right to a death benefit under
Subsection 5.2 of this Plan shall accrue until a Schedule B Participant’s death and no right to an additional limited retirement benefit under Subsection 5.3 of this Plan shall accrue until a Schedule B Participant’s Retirement.

 8.3 In the event of a Plan termination, vested benefits hereunder shall be distributed in a single lump sum as soon as
practicable after the date the Plan is terminated if such distribution is permitted because the Plan is terminated in accordance with the termination provisions of Section 409A of the Code and related regulations or, in other cases, at the
earliest time otherwise permitted under the terms of the Plan in accordance with Section 409A of the Code and related regulations. 
 Section 9. General Provisions 
 9.1 This Plan at all times shall be
entirely unfunded and no provision shall at any time be made with respect to segregating any assets of the Company or any Affiliate for payment of any benefits hereunder. No Participant, Beneficiary, Surviving Spouse or any other person shall have
any interest in any particular assets of the Company or any Affiliate by reason of the right to receive a benefit under this Plan and any such Participant, Beneficiary, Surviving Spouse or other person shall have only the rights of a general
unsecured creditor with respect to any rights under the Plan. 
 9.2 Except as otherwise expressly provided herein, all terms
and conditions of the Pension Plan or the Cash Balance Plan, as the case may be, applicable to a Pension Plan Retirement Benefit or a Pension Plan Surviving Spouse Benefit shall also be applicable to a Supplemental Retirement Benefit or a
Supplemental Surviving Spouse Benefits payable hereunder. Any Pension Plan Retirement Benefit or Pension Plan Surviving Spouse Benefit, or any other benefit payable under the Pension Plan or the Cash Balance Plan, as the case may be, shall be paid
solely in accordance with the terms and conditions of the Pension Plan or the Cash Balance Plan, as the case may be, and nothing in this Plan shall operate or be construed in any way to modify, amend or affect the terms and provisions of the Pension
Plan or the Cash Balance Plan, as the case may be. 

  
 22 

 9.3 Nothing contained in this Plan shall constitute a guaranty by the Company or any other
entity or person that the assets of the Company or any Affiliate will be sufficient to pay any benefit hereunder. 
 9.4 No
Participant or Surviving Spouse shall have any right to a benefit under this Plan except in accordance with the terms of this Plan. The payment of any death or survivorship benefit under this Plan shall be contingent upon such evidence of death as
may be reasonably required by the Committee. 
 9.5 This Plan shall not constitute a contract for the continued employment of
any Participant by the Company or any Affiliate. The Company and each Affiliate reserve the right to modify a Participant’s Compensation at any time and from time to time as it considers appropriate and to terminate any Participant’s
employment for any reason at any time notwithstanding the Plan. 
 9.6 No interest of any person or entity in, or right to
receive a benefit under, this Plan shall be subject in any manner to sale, transfer, assignment, pledge, attachment, garnishment or other alienation or encumbrance of any kind; nor any such interest or right to receive a benefits be taken, either
voluntarily or involuntarily, for the satisfaction of the debts of, or other obligations or claims against, such person or entity, including claims for alimony, support, separate maintenance and claims in bankruptcy proceedings. 

9.7 This Plan shall be construed and administered under the laws of the United States and the State of New Jersey to the extent not
superseded by Federal law. This Plan is specifically intended to comply with the provisions of the American Jobs Creation Act of 2004 (the “AJCA”) and Section 409A of the Code and it shall automatically incorporate all applicable
restrictions of the AJCA, the Code and its related regulations, and the Company will amend the Plan to the extent necessary to comply with those requirements. The timing under which a Participant will have a right to receive any payment under this
Plan will be deemed to be automatically modified, and a Participant’s rights under the Plan limited to conform to any requirements under, the AJCA or the Code. 
 9.8 Actuarial assumptions to determine the present value of any benefit hereunder shall be the same as used to determine the present value of benefits under the Pension Plan or the Cash Balance Plan, as
the case may be. 
 9.9 If any person entitled to a benefit payment under this Plan is deemed by the Committee to be incapable
of personally receiving and giving a valid receipt for such payment, then, unless and until claim therefor shall have been made by a duly appointed guardian or other legal representative of such person, the Committee may provide for such payment or
any part thereof to be made to any other person or institution then contributing toward or providing for the care and maintenance of such person. Any such payment shall be a payment for the account of such person and a complete discharge of any
liability of the Company and this Plan therefor. 

  
 23 

 9.10 The Plan shall inure to the benefit of and be binding upon the Company, its successors
and assigns, including but not limited to any corporation which may acquire all or substantially all of the Company’s assets or businesses or with or into or which the Company may be consolidated or merged. 

9.11 Any notice to a Participant, a Beneficiary or any legal representative hereunder shall be given in writing, by personal delivery,
overnight express service or by United States mail, postage prepaid, addressed to such person’s last known address. Any notice to the Company or the Committee hereunder (including the filing of beneficiary designations) shall be given by
delivering it in person or by overnight express service, or depositing it in the United States mail, postage prepaid, to the Secretary of the Employee Benefits Committee, Public Service Enterprise Group Incorporated, 80 Park Plaza, T10B, P.O. Box
1171, Newark, New Jersey, 07101. 
 9.12 Each Participant shall keep the Company informed of his/her current address and the
current address of his/her spouse. The Company shall not be obligated to search for the whereabouts of any person. If the location of a Participant is not made known to the Company within three (3) years after the date on which payment of the
Participant’s Supplemental Retirement Benefit may first be made, payment may be made as though the Participant had died at the end of the three-year period. If, within one additional year after such three-year period has elapsed, or, within
three years after the actual death of a Participant, the Company is unable to locate any Surviving Spouse of the Participant, then the Company shall have no further obligation to pay any benefit hereunder to such Participant or Surviving Spouse or
any other person and such benefit shall be irrevocably forfeited. 
 9.13 Failure by the Company or the Committee to insist upon
strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of any such term, covenant or condition, nor shall any waiver or relinquishment of any right or power hereunder at any one or more times be deemed a
waiver or relinquishment of any such right or power at any other time or times. 
 9.14 The invalidity or unenforceability of
any provision hereof shall in no way affect the validity or enforceability of any other provision of this Plan. 
 9.15
Notwithstanding any of the preceding provisions of this Plan, none of the Company, the Committee or any individual acting as an employee or agent of the Company or the Committee shall be liable to any Participant, former Participant, Surviving
Spouse or any other person for any claim, loss, liability or expense incurred in connection with this Plan. 

Section 10. Miscellaneous 
 10.1 As used herein, words in the masculine gender shall include the feminine and the singular shall include the plural, and vice versa, unless otherwise required by the context. Any headings used herein
are included for ease of reference only and are not to be construed so as to alter the terms hereof. 

  
 24 

 MID-CAREER HIRE PLAN 

SCHEDULE A 

PARTICIPANTS 
  

			
	 NAME
	 	 TITLE

		
	1. Booth, Brian C.	 	Director – NOS
	2. Bruecks, Michael	 	Director Security
	3. Canziani, Richard M.	 	Mgr. Maintenance Services
	4. Davison, Paul J.	 	Director NOS
	5. Dorsa Caroline	 	EVP & CFO (PSEG)
	6. Izzo, Ralph	 	Chairman of Board, President & CEO-PSEG
	7. Joyce, Thomas P.	 	President and CNO – Nuclear
	8. Knaide, Kenneth M.	 	Dir. Engineering HC
	9. Lopriore, Richard P.	 	President – Fossil
	10. Pendleton, Donald D.	 	Health & Safety Administrator
	11. Sheridan Jr., Ronald P.	 	CFAM Manager – Maintenance/WM/Projects

 Revised – May 7, 2010 

  
 25 

 LIMITED SUPPLEMENTAL BENEFIT PLAN 

SCHEDULE B 

PARTICIPANTS 
  

			
	 NAME
	 	 TITLE

		
	1. Bishop, Craig, J.	 	Director – Business Solutions R
	2. Braun, Robert C. (eff. 3/5/12)	 	SVP – Nuclear Operations
	3. Brina, Cora	 	VP – HR Client Services
	4. Brockman, Kenneth E.	 	Manager – Risk Mgmt.
	5. Cardenas, Jorge L.	 	VP – Gas Delivery
	6. Castellano, Raymond C.	 	Principal
	7. Doherty, John F.	 	Associate Gen. Environ. Counsel
	8. Dorsa Caroline (eff. 4/25/14)	 	EVP & CFO (PSEG)
	9. Duddy, Kevin P.	 	Director Business Ops & HR Strategy
	10. Fedak, Edward C.	 	Associate Gen. Corp Counsel
	11. Frese, William E.	 	General Litigation Counsel
	12. Graziano, Joseph	 	Director – Investments
	13. Guida, Arthur S.	 	Director External Affairs & CMT Dev.
	14. Izzo, Ralph	 	Chairman of Board, President & CEO-PSEG
	15. Joyce, Thomas P. (eff. 9/22/11)	 	President and CNO – Nuclear
	16. Krueger, Jr. Robert C.	 	VP – Assistant Controller – Tax
	17. LaRocca, Peter W.	 	Disability Mgr.
	18. LaRossa, Ralph A.	 	President & COO
	19. Leibowitz, Donald S.	 	Associate Gen. Corp Counsel
	20. Levis, William (eff. 1/16/13)	 	President & COO
	21. Leyden, Shawn P.	 	VP – Commercial
	22. Loxley, Colin J.	 	Distribution Business Team Leader R
	23. Lynk, III, Frederick A.	 	Mgr. Mkt. Strategy & Planning
	24. MacDonald, Joan c.	 	Dir. Portfolio Management
	25. MacPhee, John P.	 	Associate Gen. Enviro Counsel
	26. Mack, Ronald J.	 	Medical Director
	27. Mahoney, Hugh	 	Ethnics Compliance Counsel
	28. Mazzeo, Frank	 	Principal
	29. McLaughlin, Patricia R.	 	VP – Fin – Energy Holdings & Serv. Corp.
	30. Mehrberg, Randall E. (eff. 9/8/13)	 	EVP Strategy & Dev & Pres. PSEG Hold
	31. Mnich, Lorraine	 	Mgr. Corp Capital Invest
	32. Morrison, John W.	 	Technical Specialist
	33. Orticelle, Arthur	 	Division Manager – Electric
	34. Oster, Steven B.	 	Dir. Quantitative Analysis
	35. Pego, Margaret M.	 	SVP – HR & Chief HR Officer
	36. Perry, John F. (eff. 3/12/12)	 	VP – Hope Creek
	37. Preston, Bruce	 	Dir. Environ Projects & Permitting
	38. Quinn, Kevin J.	 	VP – Corporate Strategy

  
 26 

			
	39. Scarlata, John P.	 	VP – Gas Supply
	40. Schroeder, Brian H.	 	Mgr. IT Asset Management R
	41. Senkewicz, John W.	 	Mgr. E&G Bus. Service Marketing
	42. Smith, J. Brian	 	VP – Communications and Advertising.
	43. Solowski, Stanley J.	 	Dir. Projects
	44. Sugam, Richard J.	 	Dir. EH&S Compliance & Planning
	45. Svenson, Eric B.	 	VP – Policy & Environ., Health & Safety
	46. Tripodi, Raymond A.	 	Mgr. Transmission Permitting
	47. Tuosto, Michael R.	 	General Manager Public Affairs
	48. Wernsing, Richard W.	 	RCM Expert
	49. Weyant, Donald W.	 	Regulatory LDR
	50. Wohlfarth, David W.	 	VP – Gas Supply, PSEG ER&T

 Revised – May 7, 2010 

  
 27

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