Document:

Exhibit 4-T(2)

 

THIS SECURITY
IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.  THIS SECURITY MAY NOT BE TRANSFERRED TO, OR
REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF ANY PERSON
OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF, AND NO SUCH TRANSFER MAY BE
REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF, TRANSFER OF, OR
IN EXCHANGE FOR, OR IN LIEU OF, THIS SECURITY WILL BE A GLOBAL SECURITY SUBJECT
TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

 

THIS NOTE (OR
ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO OR FOR THE
ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE NEXT SENTENCE.
BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER:

 

(a)           REPRESENTS THAT (a) IT IS A “QUALIFIED
INSTITUTION BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (A “QIB”),
(b) IT HAS ACQUIRED THIS NOTE AN OFFSHORE TRANSACTION IN COMPLIANCE WITH
REGULATION S UNDER THE SECURITIES ACT OR (c) IT IS AN INSTITUTIONAL “ACCREDITED
INVESTOR” (AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) OR REGULATION D UNDER
THE SECURITIES ACT) (AN “IAI”);

 

(b)           AGREES THAT IT WILL NOT RESELL OR
OTHERWISE TRANSFER THIS NOTE EXCEPT (a) TO DANA CORPORATION OR ANY OF ITS
SUBSIDIARIES, (b) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QIB
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (c) IN AN OFFSHORE TRANSACTION MEETING THE
REQUIREMENTS OF RULE 903 OR 904 OF THE SECURITIES ACT, (d) IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (e) TO AN IAI
THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING
CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS NOTE
(THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS
IN RESPECT OF A TOTAL PRINCIPAL AMOUNT OF NOTES LESS THAN $250,000, AN OPINION
OF COUNSEL ACCEPTABLE TO DANA CORPORATION THAT SUCH TRANSFER IS IN COMPLIANCE
WITH THE SECURITIES ACT, (f) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF
COUNSEL ACCEPTABLE TO DANA CORPORATION) OR (g) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH THE APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE
JURISDICTION; AND

 

 

(c)           AGREES THAT IT WILL DELIVER TO EACH
PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

 

AS USED HEREIN, THE TERMS “OFFSHORE
TRANSACTION” AND “UNITED STATES” HAVE THE MEANINGS GIVEN TO THEM BY RULE 902 OF
REGULATION S UNDER THE SECURITIES ACT OF 1933. THE INDENTURE CONTAINS A
PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE
IN VIOLATION OF THE FOREGOING.

 

 

IN WITNESS
WHEREOF THIS INSTRUMENT HAS BEEN DULY EXECUTED IN ACCORDANCE WITH THE
INDENTURE.

 

	
   

  	
  DANA
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ A. Glenn
  Paton

  	
   

  
	
   

  	
  A. Glenn
  Paton, Vice President-Treasurer

  

 

Trustee’s Certificate of Authentication

 

This is one of
the Notes of the series designated therein referred to in the within-mentioned
Indenture.

 

	
  Dated: 

  	
  12/10/04

  	
   

  	
   

  	
  CITIBANK,
  N.A.,

  
	
   

  	
   

  	
  As Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Nancy
  Forte

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signatory

  

 

 

DANA CORPORATION 

 

5.85% Senior Note due 2015

 

CUSIP No. U23447 AG 7

ISIN: USU23447 AG73

 

	
  No. S-1

  	
   

  	
  $8,250,000

  

 

Dana
Corporation, a corporation duly organized and existing under the laws of the
Commonwealth of Virginia (hereinafter called the “Company”, which term includes
any successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to Cede & Co. or registered assigns, the
principal sum of EIGHT MILLION TWO HUNDRED AND FIFTY THOUSAND AND DOLLARS on
January 15, 2015 and to pay interest thereon on January 15 and July 15 in each
year, commencing on July 15, 2005, at the rate of 5.85% per annum, until the
principal hereof is paid or made available for payment, and at the rate equal
to the coupon rate for each Note, compounded semi-annually, on any overdue
principal and premium and on any overdue installment of interest.  The interest so payable, and punctually paid
or duly provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Note (or one or more Predecessor
Notes) is registered at the close of business on the Regular Record Date for
such interest, which will be the January 1 or July 1 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date.  Any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this
Note (or one or more Predecessor Notes) is registered at the close of business
on a Special Record Date, for the payment of such Defaulted Interest to be
fixed by the Trustee, notice whereof will be given to Holders of Notes of this
series not less than 10 calendar days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the
requirements of any Notes exchange on which the Notes of this series may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in said Indenture.

 

Payment of the
principal of (and premium if any) and any such interest on this Note will be
made at the office or agency of the Company maintained for the purpose in New
York, New York, in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts;
provided, however, that at the option of the Company payment of interest may be
made by check mailed to the address of the Person entitled thereto as such
address appears in the Note Register.

 

REFERENCE IS
HEREBY MADE TO THE FURTHER PROVISIONS SET FORTH ON THE REVERSE HEREOF.  SUCH PROVISIONS WILL FOR ALL PURPOSES HAVE
THE SAME EFFECT AS THOUGH FULLY SET FORTH IN THIS PLACE.

 

This Note will
not be valid or become obligatory for any purpose until the certificate of
authentication herein has been signed manually by the Trustee under the
Indenture referred to on the reverse side hereof.

 

 

IN WITNESS WHEREOF,
THIS INSTRUMENT HAS BEEN DULY EXECUTED IN ACCORDANCE WITH THE INDENTURE.

 

	
   

  	
  DANA
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

Trustee’s Certificate of Authentication

 

This is one of
the Notes of the series designated therein referred to in the within-mentioned
Indenture.

 

	
   

  	
  CITIBANK,
  N.A.,

  
	
   

  	
  As Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

 

[REVERSE  SIDE OF NOTE]

 

DANA CORPORATION

 

5.85% Senior Note due 2015

 

This Note is
one of a duly authorized issue of Notes of the Company (herein called the “Notes”)
and to be issued in one or more series under an Indenture, dates as of December
10,  2004 (herein called the “Base
Indenture”) as supplemented by a Supplemental Indenture, dated as of December
10, 2004 (the “Supplemental Indenture” and together with the Base Indenture, the
“Indenture”), between the Company and Citibank, N.A., as Trustee (herein called
the “Trustee”, which term includes any successor trustee under the Indenture),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties,
and immunities thereunder of the Company, the Trustee, and the Holders of the
Notes and of the terms upon which the Notes are, and are to be, authenticated
and delivered.  This Note is one of the series
designated on the face hereof, initially limited in aggregate principal amount
to $450 million.

 

The Notes of
this series are subject to redemption at any time, in whole or in part, upon at
least 30 calendar days’ notice by mail. 
The Company will pay a redemption price equal to the sum of the
principal amount of the Notes being redeemed (plus any interest that accrued
before the redemption date) and any “make-whole amount” with respect to the
Notes.  Interest installments on a Note
specified to be due on or before such redemption date will be payable to the
Holders of record on the relevant record date.

 

The “make-whole
amount” means the amount by which (1) the aggregate present value (as of the
redemption date) of the principal being redeemed and the remaining payments of
interest to the stated maturity date (excluding the interest that accrued
before the redemption date) payable on that principal had the redemption not
been made, determined by discounting the principal and interest on a semi-annual
basis in the “reinvestment rate” (as described below) from the dates on which
the principal and interest would have been payable to the redemption date,
exceeds (2) the aggregate principal amount of the Notes being redeemed.

 

The
reinvestment rate is determined on the third business day before the notice of
redemption is given to participants and is equal to the Treasury Yield plus
0.25%.

 

The “Treasury
Yield” means the yield on Treasury Notes at a constant maturity corresponding
to the remaining life to the stated maturity (as of the redemption date,
rounded to the nearest month) of the principal being redeemed.

 

The Treasury
Yield will equal the arithmetic mean of the yields published in the statistical
release (identified below) under the heading “Week Ending” for “U.S. Government
Securities — Treasury Constant Maturities” with a maturity equal to such
remaining life. If no published maturity exactly corresponds with such
remaining life, then the Company will interpolate or extrapolate the Treasury
Yield on a straight line basis from the arithmetic mean of the yields for the
next shortest and longest published maturities.

 

 

The
statistical release is the release designated “H.15(19)” or any successor
publication published weekly by the Board of Governors of the Federal Reserve
System which re-ports yields on actively traded United States government
Securities adjusted to constant maturities. 
If no statistical release is published at the time of any redemption of
the Notes or if the for-mat or content of the statistical release changes so as
to preclude a determination of the Treasury Yield in the above manner, the
Company will designate a reasonably comparable index.  For calculating the reinvestment rate, the
Company will use the most recent statistical release published before the date
of determination of the make-whole amount.

 

In the event
of redemption of this Note in part only, a new Note or Notes of this series and
of like tenor for the unredeemed portion hereof will be issued in the name of
the Holder hereof upon the cancellation hereof.

 

The Indenture
contains provisions for defeasance at any time of (a) the entire indebtedness
evidenced by this Note or (b) certain restrictive covenants and Events of
Default with respect to this Note, in each case upon compliance with certain
conditions set forth in the Indenture.

 

If an Event of
Default with respect to Notes of this series shall occur and be continuing, the
principal amount of any accrued but unpaid interest on the Notes of this series
may be declared due and payable in the manner and with the effect provided in
the Indenture.

 

The Indenture
permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of
the Holders of the Notes of each series to be affected under the Indenture at
any time by the Company and the Trustee with the consent of the Holders of a
majority in principal amount of the Notes at the time Outstanding of each
series to be affected. The Indenture also contains provisions permitting the
Holders of specified percentages in principal amount of the Notes of each
series at the time Outstanding, on behalf of the Holders of all Notes of such
series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their
consequences.  Any such consent or waiver
by the Holder of this Note will be conclusive and binding upon such Holder and
upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Note.

 

As provided in
and subject to the provisions of the Indenture, the Holder of this Note will
not have the right to institute any proceeding with respect to the Indenture or
for the appointment of a receiver or trustee or for any other remedy
thereunder, unless such Holder shall have previously given the Trustee written
notice of a continuing Event of Default with respect to the Notes of this
series, the Holders of not less than 25% in principal amount of the Notes of
this series at the time Outstanding shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default as Trustee
and offered the Trustee indemnity satisfactory to it, and the Trustee shall not
have received from the Holders of a majority in principal amount of Notes of
this series at the time Outstanding a direction inconsistent with such request
and shall have failed to institute such proceeding for 60 calendar days after
receipt of such notice, request, and offer of indemnity.  The foregoing will apply to any suit
instituted by 

 

 

the Holder of this Note for the
enforcement of any payment of principal hereof or any premium or interest
hereon on or after the respective due dates expressed herein.

 

No reference
herein to the Indenture and no provision of this Note or of the Indenture will
alter or impair the obligation of the company, which is absolute and
unconditional, to pay the principal of and any premium and interest on this
Note at the times, place, and rate, and in the coin or currency, herein
prescribed.

 

As provided in
the Indenture and subject to certain limitations therein set forth, the
transfer of this Note is registerable in the Security Register, upon surrender
of this Note for registration of transfer at the office or agency of the
Company in any place where the principal of and any premium and interest on
this Note are payable, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Notes of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.

 

Pursuant to,
but subject to the exceptions in, the Registration Rights Agreement, the Company
shall be obligated to consummate an Exchange Offer pursuant to which the Holder
of this Note shall have the right to exchange this Note for a Note of the
Company with the same maturity which shall have been registered under the
Securities Act, in like principal amount and having terms identical in all
material respects to this Note (except that such Note shall not be entitled to
additional interest and shall not contain terms with respect to transfer
restrictions). The Holders shall be entitled to receive certain additional
interest in the event such Exchange Offer is not consummated or the Notes are
not offered for resale and upon certain other conditions, all pursuant to and
in accordance with the terms of the Registration Rights Agreement.(1)

 

The Notes of
this series are issuable only in full registered form without coupons, in a
minimum denomination of US $2,000 and integral multiples of $1,000 above that
(or comparable amounts in foreign currency. 
As provided in the Indenture and subject to certain limitations therein
set forth, Notes of this series are exchangeable for a like aggregate principal
amount of Notes of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

 

No service
charge will be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

 

Prior to due
presentment of this Note for registration of transfer, the Company, the
Trustee, and any agent of the Company of the Trustee may treat the Person in
whose name this Note is registered as the owner hereof for all purposes,
whether or not this Note shall be overdue, and neither the Company, the Trustee,
nor any such agent will be affected by notice to the contrary.

 

(1)                                  This
Section not to appear on Exchange Securities or Additional Securities unless
required by the terms of such Additional Securities.

 

 

Pursuant to a
recommendation promulgated by the Committee on Uniform Note Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Notes and
the Trustee may use CUSIP numbers in notices of redemption as a convenience to
the Holders. No representation is made as to the accuracy of such numbers
either as printed on the Notes or as contained in any notice of redemption and
reliance may be placed only on the other identification numbers placed thereon.

 

All terms used
in this Note that are defined in the Indenture will have the respective
meanings assigned to them in the Indenture.

 

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:
(I) or (we) assign and transfer this Note to

 

	
   

  
	
  (Insert assignee’s soc. sec. or
  tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
  (Print or type assignee’s name,
  address and zip code)

  
	
   

  
	
  and irrevocably appoint

  
	
   

  
	
   

  
	
  to transfer this Security on the books of the Company. The agent may
  substitute another to act for him.

  

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name appears on the face of this Note)

  
	
   

  	
   

  
	
  Signature guarantee:

  	
   

  
						

 

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR

REGISTRATION OF TRANSFER RESTRICTED NOTES

 

DANA CORPORATION

4500 Dorr Street

Toledo, Ohio 43615

 

 

Attention: Chief
Financial Officer

 

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, New York 10013

 

Attention: Citibank
Agency & Trust

 

Re:
CUSIP #

 

Reference is hereby
made to that certain Indenture dated December 10, 2004 (the “Base
Indenture”) between Dana Corporation (the “Company”)
and Citibank,
N.A., as trustee (the “Trustee”) as supplemented by the Supplement Indenture dated December 10, 2004
(the “Supplemental Indenture” and together with the Base Indenture, the “Indenture”). Capitalized terms used but not defined herein shall have the meanings set
forth in the Indenture.

 

This certificate
relates to $            
principal amount of Notes held in book-entry form by the undersigned.

 

The undersigned
                        
(transferor) (check one box below):

 

hereby requests the Trustee to exchange or register
the transfer of a Note or Notes to
                          
(transferee).

 

In connection with
any transfer of any of the Notes evidenced by this certificate occurring prior
to the expiration of the periods referred to in Rule 144(k) under the
Securities Act of 1933, as amended, the undersigned confirms that such Notes are
being transferred in accordance with its terms:

 

CHECK ONE
BOX BELOW:

 

(1)                                  o                                    to the Company or
any of its subsidiaries; or

 

(2)                                  o                                    pursuant to an
effective registration statement under the Securities Act of 1933, as amended;
or

 

 

(3)                                  o                                    inside the United
States to a “qualified institutional buyer” (as defined in Rule 144A under the
Securities Act of 1933, as amended) that purchases for its own account or for
the account of a qualified institutional buyer to whom notice is given that
such transfer is being made in reliance on Rule 144A under the Securities Act
of 1933, as amended, in each case pursuant to and in compliance with Rule 144A
thereunder.

 

(4)                                  o                                    inside the United
States to an institutional “accredited investor” (as defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act of 1933, as amended) that has
furnished to the Trustee a signed letter containing certain representations and
agreements (the form of which letter is attached to the Indenture as Exhibit D
and which may be obtained from the Trustee); or

 

(5)                                  o                                    outside the United
States in an offshore transaction within the meaning of Regulation S under the
Securities Act of 1933, as amended, in compliance with Rule 904 thereunder.

 

Unless one of the
boxes is checked, the Securities Registrar will refuse to register any of the Notes
evidenced by this certificate in the name of any person other than the
registered holder thereof.

 

	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  
	
  Signature
  Guarantee:

  	
   

  
	
   

  	
  (Signature
  must be guaranteed by a participant in a recognized signature guarantee
  medallion program)

  
				

 

TO BE COMPLETED BY
PURCHASER IF (3) ABOVE IS CHECKED.

 

The undersigned represents and warrants that it is
purchasing this Note for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A under the Securities Act
of 1933, as amended (“Rule 144A”), and is aware that the sale to it is being
made in reliance on Rule 144A and acknowledges that it has received such
information regarding the Company as the undersigned has requested pursuant to
Rule I44A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing
representations in order to claim the exemption from registration provided by
Rule 144A.

 

 

 

	
   

  	
  [Name of Transferee]

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE:
  To be executed by an executive officer

  
					

 

 

SCHEDULE OF EXCHANGES OF NOTES

 

The following exchanges of a part of this
Global Security for other Securities have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of Decrease in

  Principal Amount of

  this Global Note

  	
   

  	
  Amount of Increase in

  Principal Amount of this

  Global Note

  	
   

  	
  Principal Amount of

  this Global Note

  Following Such

  Decrease (or Increase)

  	
   

  	
  Signature of

  Authorized Officer of

  Trustee or

  Custodian<Page>

                                                                     EXHIBIT 4.1

                         PATRIOT NATIONAL BANCORP, INC.

                                       and

                         REGISTRAR AND TRANSFER COMPANY

                                 as Rights Agent

                                RIGHTS AGREEMENT

                           dated as of April 19, 2004

<Page>

                                      INDEX

<Table>
<Caption>
Page                       Heading
----                       -------
<S>             <C>
Section 1.      Certain Definitions

Section 2.      Appointment of Rights Agent

Section 3.      Issue of Right Certificates

Section 4.      Form of Right Certificates

Section 5.      Countersignature and Registration

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

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

Section 8.      Cancellation and Destruction of Right Certificates

Section 9.      Reservation and Availability of Capital Stock

Section 10.     Common Stock Record Date

Section 11.     Adjustment of Purchase Price, Number and Kind of Shares or
                Number of Rights

Section 12.     Certificate of Adjusted Purchase Price or Number of Shares
                or Common Stock Equivalents

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

Section 14.     Fractional Rights and Fractional Shares

Section 15.     Rights of Action

Section 16.     Agreement of Right Holders

Section 17.     Right Certificate Holder Not Deemed a Stockholder

Section 18.     Concerning the Rights Agent

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

Section 20.     Duties of Rights Agent
</Table>

                                       -i-
<Page>

<Table>
<Caption>
Page            Heading
----            -------
<S>             <C>
Section 21.     Change of Rights Agent

Section 22.     Issuance of New Right Certificates

Section 23.     Redemption

Section 24.     Exchange

Section 25.     Notice of Proposed Actions

Section 26.     Notices

Section 27.     Supplements and Amendments

Section 28.     Successors

Section 29.     Determinations and Actions by the Board of Directors, etc.

Section 30.     Benefits of This Agreement

Section 31.     Severability

Section 32.     Governing Law

Section 33.     Counterparts

Section 34.     Descriptive Headings

Testimonium and Signatures

Exhibit A -     Form of Right Certificate

Exhibit B -     Summary of Rights to Purchase Common Shares
</Table>

                                      -ii-
<Page>

                                RIGHTS AGREEMENT

     This Rights Agreement dated as of April 19, 2004 between PATRIOT NATIONAL
BANCORP, INC., a Connecticut corporation (the "Company"), and REGISTRAR AND
TRANSFER COMPANY, a New Jersey corporation, as Rights Agent (the "Rights
Agent").

                              W I T N E S S E T H:

     WHEREAS, on April 15, 2004 the Board of Directors of the Company authorized
and declared, effective as of April 19, 2004, a dividend distribution of one
Right (hereafter referred to as a "Right") for each outstanding share of the
Common Stock, par value $2.00 per share, of the Company (the "Common Stock")
outstanding at the close of business on April 29, 2004 (hereinafter referred to
as the "Record Date") (other than shares of such Common Stock held in the
Company's treasury on such date) and has authorized the issuance of one Right
(as such number may hereafter be adjusted pursuant to the provisions of Section
11(p) hereof) in respect of each share of Common Stock of the Company that shall
become outstanding after the Record Date (whether originally issued or delivered
from the Company's treasury) and on or prior to the earlier of the Distribution
Date and the Expiration Date (as such terms are hereinafter defined), each Right
representing the right to purchase 8.152 shares of the Company's Common Stock
upon the terms and subject to the conditions hereinafter set forth (the
"Rights");

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

     Section 1.   CERTAIN DEFINITIONS. For purposes of this Agreement, the
following terms have the meanings indicated;

            (a)   "Acquiring Person" shall mean any Person (as hereinafter
     defined) who or which, together with all Affiliates (as hereinafter
     defined) and Associates (as hereinafter defined) of such Person, shall be
     the Beneficial Owner (as hereinafter defined) of 15% or more of the shares
     of Common Stock then outstanding, but shall not include (i) the Company,
     (ii) any Subsidiary (as hereinafter defined) of the Company, (iii) any
     employee benefit plan of the Company or any Subsidiary of the Company, or
     any entity (including its Affiliates) organized, appointed or established
     for or pursuant to the terms of any such plan acting solely in its capacity
     (or their capacities) under such plan, (iv) any Person who becomes the
     Beneficial Owner of 15% or more of the shares of Common Stock then
     outstanding as the result of an acquisition of Common Stock by the Company
     which, by reducing the number of shares outstanding, increases the
     proportionate number of shares beneficially owned by such Person to 15% or
     more of the shares of Common Stock then outstanding; PROVIDED, HOWEVER,
     that if a Person becomes the Beneficial Owner of 15% or more of the shares
     of Common Stock then outstanding by reason of share acquisitions

                                       -1-
<Page>

     by the Company and shall, after such acquisitions, become the Beneficial
     Owner of any additional shares of Common Stock, then such Person shall be
     deemed to be an "Acquiring Person", or (v) any Person who in the good faith
     determination of the Board of Directors of the Company, has become the
     Beneficial Owner of 15% or more of the shares of Common Stock then
     outstanding inadvertently, and such Person divests as promptly as
     practicable (and in any event within ten Business Days after notification
     by the Company) a sufficient number of shares of Common Stock so that such
     Person would no longer be an Acquiring Person for the purposes of this
     paragraph. Angelo De Caro, Chairman of the Company, shall not be considered
     an Acquiring Person for the purposes of this Agreement.

            (b)   "Affiliate", "Associate" and "Control" shall have the
     respective meanings ascribed to such terms in Rule l2b-2 of the General
     Rules and Regulations under the Securities Exchange Act of 1934, as amended
     (the "Exchange Act"), as in effect on the date hereof.

            (c)   A Person shall be deemed the "Beneficial Owner" of, and shall
     be deemed to "beneficially own", any securities:

                  (i)    which such Person or any of such Person's Affiliates or
            Associates, directly or indirectly, beneficially owns (as determined
            pursuant to Rule 13d-3 of the General Rules and Regulations under
            the Exchange Act as in effect on the date of this Agreement) or has
            the right to dispose of;

                  (ii)   which such Person or any of such Person's Affiliates or
            Associates, directly or indirectly, has (A) the right to acquire
            (whether such right is exercisable immediately or only after the
            passage of time) pursuant to any agreement, arrangement or
            understanding (whether or not in writing), or upon the exercise of
            conversion rights, exchange rights, rights (other than the Rights),
            warrants or options, or otherwise; or (B) the right to vote,
            including pursuant to any agreement, arrangement or understanding
            (whether or not in writing); PROVIDED, HOWEVER, that a Person shall
            not be deemed the "Beneficial Owner" of or to "beneficially own" any
            security under this clause (B) as a result of an agreement,
            arrangement or understanding to vote such security if such
            agreement, arrangement or understanding (1) arises solely from a
            revocable proxy given in response to public proxy solicitation made
            pursuant to, and in accordance with, the applicable rules and
            regulations under the Exchange Act and (2) is not also then
            reportable by such Person on Schedule 13D under the Exchange Act (or
            any comparable or successor report); or

                  (iii)  which are beneficially owned, directly or indirectly,
            by any other Person (or any Affiliate or Associate thereof) with
            which such Person or any of such Person's Affiliates or Associates
            has any agreement, arrangement or understanding (whether or not in
            writing) for the purpose of acquiring, holding, voting (except
            pursuant to a revocable proxy as described in paragraph 1(c)(ii)(B)
            hereof) or disposing of any voting securities of the Company.

                                       -2-
<Page>

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

            (e)   "Close of business" on any given date shall mean 5:00 p.m.,
     Eastern time, on such date; PROVIDED, HOWEVER, that if such date is not a
     Business Day it shall mean 5:00 p.m., Eastern time, on the next succeeding
     Business Day.

            (f)   "Common Stock" shall mean the Common Stock, par value $2.00
     per share, of the Company, except that "Common Stock" when used with
     reference to any Person other than the Company shall mean the capital stock
     of such Person with the greatest voting power, or the equity securities or
     other equity interest having power to control or direct the management, of
     such Person.

            (g)   "Common Stock Equivalent" shall mean a share, or depositary
     receipt exchangeable for a fraction of a share, of any authorized class or
     series of preferred stock of the Company having dividend, voting,
     liquidation and other rights which result, in the judgment of the Board of
     Directors, in such share, or depositary receipt, being approximately
     equivalent in value to one share of Common Stock as of the date of
     occurrence of a Section 11(a) (ii) Event (as such term is hereinafter
     defined) (the "Event Date"); PROVIDED, HOWEVER, that, if there is no
     authorized class or series of preferred stock of the Company or if in the
     judgment of the Board of Directors there are not sufficient authorized but
     unissued shares of preferred stock available for the creation of Common
     Stock Equivalents, "Common Stock Equivalent" shall mean such cash,
     reduction in Purchase Price (as such term is hereinafter defined), other
     equity securities, debt securities, other assets or any combination of the
     foregoing, that the Board of Directors shall determine to be approximately
     equivalent in value to one share of Common Stock as of the Event Date.

            (h)   "Continuing Director" shall mean (i) any member of the Board
     of Directors of the Company, while such Person is a member of the Board,
     who is not an Acquiring Person or an Affiliate or Associate of an Acquiring
     Person or a representative or nominee of an Acquiring Person or of any such
     Affiliate or Associate, and was a member of the Board prior to the time any
     Person becomes an Acquiring Person, and (ii) any Person who subsequently
     becomes a member of the Board, while such Person is a member of the Board,
     who is not an Acquiring Person or an Affiliate or Associate of an Acquiring
     Person or a representative or nominee of an Acquiring Person or of any such
     Affiliate or Associate, if such Person's nomination for election or
     election to the Board is recommended or approved by a majority of the
     Continuing Directors.

            (i)   "Distribution Date" shall have the meaning defined in
     Section 3 hereof.

            (j)   "Event Date" shall have the meaning defined in Section 1(g)
     hereof.

            (k)   "Exchange" and "Exchange Ratio" shall have the respective
     meanings

                                       -3-
<Page>

                  defined in Section 24 hereof.

            (l)   "Exchange Date" shall have the meaning defined in Section 7(a)
     hereof.

            (m)   "Expiration Date" and "Final Expiration Date" shall have the
     respective meanings defined in Section 7(a) hereof.

            (n)   "Person" shall mean any individual, firm, limited liability
     company, corporation, partnership or other entity.

            (o)   "Purchase Price" shall have the meaning defined in Section 7
     hereof.

            (p)   "Section 11(a) (ii) Event" shall mean the event described in
     Section 11(a) (ii).

            (q)   "Stock Acquisition Date" shall mean the first date of public
     announcement (which, for purposes of this definition, shall include,
     without limitation, the filing of a report pursuant to Section 13(d) under
     the Exchange Act or pursuant to a comparable successor statute) by the
     Company or an Acquiring Person indicating that an Acquiring Person has
     become such.

            (r)   "Subsidiary" of any Person shall mean any other Person of
     which securities or other ownership interests having ordinary voting power,
     in the absence of contingencies, to elect a majority of the board of
     directors or other Persons performing similar functions as a board of
     directors are at the time directly or indirectly owned by such first
     Person, or which is otherwise controlled by such first Person.

            (s)   "Trading Day" shall have the meaning defined in Section 11(d)
     hereof.

            (t)   "Triggering Event" shall mean any Section 11(a) (ii) Event or
     any event described in Section 13(a)(i), (ii) or (iii) hereof.

     Section 2.   APPOINTMENT OF RIGHTS AGENT. The Company hereby appoints the
Rights Agent to act as agent for the Company and the holders of the Rights (who,
in accordance with Section 3 hereof, shall prior to the Distribution Date also
be the holders of the Common Stock) in accordance with the terms and conditions
hereof, and the Rights Agent hereby accepts such appointment. The Company may
from time to time appoint such Co-Rights Agents as it may deem necessary or
desirable. In the event the Company appoints one or more Co-Rights Agents, the
respective duties of the Rights Agent and any Co-Rights Agents shall be as the
Company shall determine.

     Section 3.   ISSUE OF RIGHTS CERTIFICATES.

            (a)   Until the earliest of (i) the close of business on the tenth
     Business Day after the Stock Acquisition Date (or, if the tenth Business
     Day after the Stock Acquisition Date occurs before the Record Date, the
     close of business on the Record Date); or (ii) the

                                       -4-
<Page>

     close of business on the tenth Business Day (or such later Business Day as
     may be determined by action of the Board of Directors of the Company prior
     to such time as any Person becomes an Acquiring Person) after the date of
     the commencement of a tender or exchange offer by any Person (other than
     the Company) if, upon consummation thereof, such Person would be an
     Acquiring Person (including any such date which is after the date of this
     Agreement and prior to the issuance of the Rights); or (iii) the tenth
     Business Day (or such later Business Day as may be determined by action of
     the Board of Directors of the Company prior to such time as any person
     becomes an Acquiring Person) after the filing by any Person (other than the
     Company) of a registration statement under the Securities Act of 1933, as
     amended, with respect to a contemplated exchange offer to acquire (when
     added to any shares as to which such person is the beneficial owner
     immediately prior to such filing) beneficial ownership of 15% or more of
     the issued and outstanding shares of Common Stock; the earliest of such
     dates being herein referred to as the "Distribution Date"), (x) the Rights
     will be evidenced (subject to the provisions of paragraph (b) of this
     Section 3) by the certificates for the Common Stock registered in the names
     of the holders of the Common Stock (which certificates for Common Stock
     shall be deemed also to be Right Certificates) and not by separate Right
     Certificates, and (y) the Rights will be transferable only in connection
     with the transfer of the underlying shares of Common Stock. As soon as
     practicable after the Company has notified the Rights Agent of the
     occurrence of the Distribution Date, the Rights Agent will send, by
     first-class, insured, postage prepaid mail, to each record holder of the
     Common Stock as of the close of business on the Distribution Date, at the
     address of such holder shown on the records of the Company, one or more
     right certificates, in substantially the form of Exhibit A hereto (the
     "Right Certificates"), evidencing one Right for each full share of Common
     Stock so held, subject to adjustment as provided herein. In the event that
     an adjustment in the number of Rights per share of Common Stock has been
     made pursuant to Section 11(p) hereof, at the time of distribution of the
     Right Certificates, the Company shall make the necessary and appropriate
     rounding adjustments (in accordance with Section 14(a) hereof) so that the
     Right Certificates representing only whole numbers of Rights are
     distributed and cash is paid in lieu of any fractional Rights. As of and
     after the Distribution Date, the Rights will be evidenced solely by such
     Right Certificates.

            (b)   As soon as practicable after the Record Date, the Company will
     send a copy of a Summary of Rights to Purchase Common Stock, in
     substantially the form of Exhibit B hereto (the "Summary of Rights"), by
     first-class, postage prepaid mail, to each record holder of the Common
     Stock as of the close of business on the Record Date at the address of such
     holder shown on the records of the Company. With respect to certificates
     for the Common Stock outstanding as of the Record Date, until the
     Distribution Date (or the earlier redemption, exchange or expiration of the
     Rights), the Rights will be evidenced by such certificates for the Common
     Stock registered in the names of the holders of the Common Stock together
     with a copy of the Summary of Rights, and the registered holders of the
     Common Stock shall also be registered holders of the associated Rights.
     Until the Distribution Data (or the earlier redemption, exchange or
     expiration of the Rights), the transfer of any of the certificates for the
     Common Stock outstanding as of the Record Date with or without a copy of
     the Summary of Rights attached thereto, shall also constitute the transfer
     of the Rights associated with the Common Stock represented

                                       -5-
<Page>

     by such certificates.

            (c)   Rights shall be issued in respect of all shares of Common
     Stock which become outstanding after the Record Date but on or prior to the
     Distribution Date (or the earlier redemption, exchange or expiration of the
     Rights). Certificates representative of such shares of Common Stock shall
     be deemed also to be certificates for Rights and shall have impressed on,
     printed on, written on or otherwise affixed to them the following legend:

            This certificate also evidences and entitles the holder hereof to
            certain Rights as set forth in a Rights Agreement between Patriot
            National Bancorp, Inc. and Registrar and Transfer Company, dated as
            of April 19, 2004 (the "Rights Agreement"), the terms of which are
            hereby incorporated herein by reference and a copy of which is on
            file at the principal executive offices of the Company. Under
            certain circumstances, as set forth in the Rights Agreement, such
            Rights will be evidenced by separate certificates and will no longer
            be evidenced by this certificate. The Company will mail to the
            holder of this certificate a copy of the Rights Agreement without
            charge promptly after receipt of a written request therefor. As
            described in the Rights Agreement, Rights beneficially owned by (i)
            an Acquiring Person or any Associate or Affiliate thereof (as such
            terms are defined in the Rights Agreement), (ii) a transferee of an
            Acquiring Person (or of any such Associate or Affiliate) who becomes
            a transferee after the Acquiring Person becomes such is designated
            as such, or (iii) under certain circumstances, a transferee of an
            Acquiring Person (or of any such Associate or Affiliate) who becomes
            a transferee before or concurrently with the Acquiring Person
            becoming such, shall become null and void.

     With respect to such certificates containing the foregoing legend, until
the Distribution Date (or the earlier redemption, exchange or expiration of the
Rights) the Rights associated with the Common Stock represented by such
certificates shall be evidenced by such certificates alone, and the transfer of
any of such certificates shall also constitute the transfer of the Rights
associated with the Common Stock represented by such certificates.

     Section 4.   FORM OF RIGHT CERTIFICATES.

            (a)   The Right Certificates (and the forms of election to purchase
     and of assignment and the certificates to be printed on the reverse
     thereof) shall be substantially in the form of Exhibit A hereto and may
     have such marks of identification or designation and such legends,
     summaries or endorsements printed thereon as the Company may deem
     appropriate and as are not inconsistent with the provisions of this
     Agreement, or as may be required to comply with any applicable law, rule or
     regulation or with any rule or regulation of any stock exchange on which
     the Rights may from time to time be listed, or to conform to usage. Subject
     to the provisions of Section 11 and Section 22 hereof, the Right
     Certificates, whenever distributed, shall be dated as of the Record Date
     and on their

                                       -6-
<Page>

     face shall entitle the holders thereof to purchase such number of shares of
     Common Stock as shall be set forth therein at the price set forth therein
     (such exercise price per share, the "Purchase Price"), but the amount and
     type of securities purchasable upon the exercise of each Right and the
     Purchase Price thereof shall be subject to adjustment as provided herein.

            (b)   Any Right Certificate issued pursuant to Section 3(a), Section
     11(i) or Section 22 hereof that represents Rights beneficially owned by:
     (i) an Acquiring Person or any Associate or Affiliate of an Acquiring
     Person, (ii) a transferee of an Acquiring Person (or of any such Associate
     or Affiliate) who becomes a transferee after the Acquiring Person becomes
     such, or (iii) a transferee of an Acquiring Person (or of any such
     associate of Affiliate) who becomes a transferee prior to or concurrently
     with the Acquiring Person becoming such and receive 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 such Acquiring Person has any continuing agreement,
     arrangement or understanding regarding the transferred Rights or (B) a
     transfer which the Board of Directors of the Company has determined is part
     of a plan, arrangement or understanding which has as a primary purpose or
     effect the voidance of Section 7(e) hereof, and any Right Certificate
     issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange,
     replacement or adjustment of any other Right Certificate referred to in
     this sentence, shall contain (to the extent feasible) the following legend:

            The Rights represented by this Right Certificate are or were
            Beneficially Owned by a Person who was or became an Acquiring Person
            or an Affiliate or Associate of an Acquiring Person (as such terms
            are defined in the Rights Agreement). Accordingly, this Right
            Certificate and the Rights represented hereby may become null and
            void in the circumstances specified in Section 7(e) of the Rights
            Agreement.

     Section 5.   COUNTERSIGNATURE AND REGISTRATION.

            (a)   The Right Certificates shall be executed on behalf of the
     Company by its Chairman of the Board, its President or any Vice President,
     either manually or by facsimile signature, and shall have affixed thereto
     the Company's seal or a facsimile thereof which shall be attested by the
     Secretary or an Assistant Secretary of the Company, either manually or by
     facsimile signature. The Right Certificates shall be manually countersigned
     by the Rights Agent and shall not be valid for any purpose unless so
     countersigned. In case any officer of the Company whose manual or facsimile
     signature is affixed to the Right Certificates shall cease to be such
     officer of the Company before countersignature by the Rights Agent and
     issuance and delivery by the Company, such Right Certificates,
     nevertheless, may be countersigned by the Rights Agent, issued and
     delivered with the same force and effect as though the Person who signed
     such Right Certificates had not ceased to be such officer of the Company.
     Any Right Certificate may be signed on behalf of the Company by any Person
     who, at the actual date of the

                                       -7-
<Page>

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

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

     Section 6.   TRANSFER, SPLIT UP, COMBINATION AND EXCHANGE OF RIGHT
CERTIFICATES; MUTILATED, DESTROYED, LOST OR STOLEN RIGHT CERTIFICATES.

            (a)   Subject to the provisions of Section 4(b), Section 7(e) and
     Section 14 hereof, at any time after the close of business on the
     Distribution Date, and at or prior to the close of business on the
     Expiration Date (as such term is defined in Section 7(a) hereof), any Right
     Certificate or Right Certificates may be transferred, split up, combined or
     exchanged for another Right Certificate or Right Certificates, entitling
     the registered holder to purchase a like number of shares of Common Stock
     (or, following a Triggering Event, Common Stock, other securities, cash or
     assets, as the case may be) as the Right Certificate or Right Certificates
     surrendered then entitled such holder (or former holder in the case of a
     transfer) to purchase. Any registered holder desiring to transfer, split
     up, combine or exchange any Right Certificate or Certificates shall make
     such request in writing delivered to the Rights Agent, and shall surrender
     the Right Certificate or Right Certificates to be transferred, split up,
     combined or exchanged at the principal office or offices of the Rights
     Agent designated for such purpose. Neither the Rights Agent nor the Company
     shall be obligated to take any action whatsoever with respect to the
     transfer of any such surrendered Right Certificate until the registered
     holder shall have completed and signed the certificate contained in the
     form of assignment on the reverse side of such Right Certificate and shall
     have provided such additional evidence of the identity of the Beneficial
     Owner (or former Beneficial Owner) or Affiliates or Associates thereof as
     the Company shall reasonably request. Thereupon the Rights Agent shall,
     subject to Section 4(b), Section 7(e) and Section 14 hereof, countersign
     and deliver to the Person entitled thereto a Right Certificate or Right
     Certificates, as the case may be, as so requested. The Company may require
     payment of a sum sufficient to cover any tax or governmental charge that
     may be imposed in connection with any transfer, split up, combination or
     exchange of Right Certificates.

            (b)   Upon receipt by the Company and the Rights Agent of evidence
     reasonably satisfactory to them of the loss, theft, destruction or
     mutilation of a Right Certificate, and, in case of loss, theft or
     destruction, of indemnity or security reasonably satisfactory to them, and,
     at the Company's request, reimbursement to the Company and the Rights Agent
     of all reasonable expenses incidental thereto, and upon surrender to the
     Rights Agent and cancellation of the Right Certificate if mutilated, the
     Company will

                                       -8-
<Page>

     make and deliver a new Right Certificate of like tenor to the Rights Agent
     for countersignature and delivery to the registered owner in lieu of the
     Right Certificate so lost, stolen, destroyed or mutilated.

     Section 7.   EXERCISE OF RIGHTS; PURCHASE PRICE; EXPIRATION OF RIGHTS.

            (a)   The Rights shall not be exercisable prior to the Distribution
     Date. Subject to Section 7(e) hereof, the registered holder of any Right
     Certificate may exercise the Rights evidenced thereby (except as otherwise
     provided herein including, without limitation, the restrictions on
     exercisability set forth in Section 9(c), Section 11(a) (iii), Section
     23(a) and Section 24 hereof) in whole or in part at any time after the
     Distribution Date upon surrender of the Right Certificate, with the form of
     election to purchase and the certificate on the reverse side thereof duly
     executed, to the Rights Agent at the principal office or offices of the
     Rights Agent designated for such purpose, together with payment of the
     aggregate Purchase Price with respect to the total number of shares of
     Common Stock (or other securities or property, as the case may be) as to
     which such surrendered Rights are then exercisable, at or prior to the
     earliest of (i) the close of business on April 19, 2014 (the "Final
     Expiration Date"), (ii) the time at which the Rights are redeemed as
     provided in Section 23 hereof, or (iii) the time at which the Rights are
     exchanged as provided in Section 24 hereof (the "Exchange Date") (the
     earliest of (i), (ii) and (iii) being herein referred to as the "Expiration
     Date").

            (b)   The Purchase Price for each share of Common Stock pursuant to
     the exercise of a Right shall initially be $7.36, shall be subject to
     adjustment from time to time as provided in Section 11 and Section 13(a)
     hereof and shall be payable in lawful money of the United States of America
     in accordance with paragraph (c) below.

            (c)   Upon receipt of a Right Certificate representing exercisable
     Rights, with the form of election to purchase and the certificate duly
     executed, accompanied by payment, with respect to each Right so exercised,
     of the Purchase Price per share of Common Stock (or other shares,
     securities or property, as the case may be) to be purchased, and an amount
     equal to any applicable transfer tax, in cash, or in the form of a
     certified check or money order payment to the order of the Company, the
     Rights Agent shall, subject to Section 20(k) hereof, thereupon promptly (i)
     requisition from any transfer agent of the Common Stock (or make available,
     if the Rights Agent is the transfer agent therefor) certificates for the
     total number of shares of Common Stock to be purchased and the Company
     hereby irrevocably authorizes its transfer agent to comply with all such
     requests, (ii) requisition from the Company the amount of cash, if any, to
     be paid in lieu of issuance of fractional shares in accordance with Section
     14 hereof, (iii) promptly after receipt of such certificates cause the same
     to be delivered to or upon the order of the registered holder of such Right
     Certificate, registered in such name or names as may be designated by such
     holder, and (iv) after receipt thereof, promptly deliver such cash, if any,
     to or upon the order of the registered holder of such Right Certificate. In
     the event that the Company is obligated to issue other securities of the
     Company, pay cash and/or distribute other property pursuant to Section
     11(a) hereof, the Company will make

                                       -9-
<Page>

     all arrangements necessary so that such other securities, cash and/or other
     property are available for distribution by the Rights Agent, if and when
     appropriate.

            (d)   In case the registered holder of any Right Certificate shall
     exercise less than all the Rights evidenced thereby, a new Right
     Certificate evidencing Rights equivalent to the Rights remaining
     unexercised shall be issued by the Rights Agent and delivered to, or upon
     the order of, the registered holder of such Right Certificate, registered
     in such name or names as may be designated by such holder, subject to the
     provisions of Section 14 hereof.

            (e)   Notwithstanding anything in this Agreement to the contrary,
     from and after the first occurrence of a Section 11(a)(ii) Event, any
     Rights beneficially owned by (i) an Acquiring Person or an Associate or
     Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person
     (or of any such Associate or Affiliate) who becomes a transferee after the
     Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person
     (or of any such Associate or Affiliate) who becomes a transferee prior to
     or concurrently with the Acquiring Person becoming such and receives such
     Rights pursuant to either (A) a transfer (whether or not for consideration)
     from the Acquiring Person (or from any such Associate or Affiliate) to
     holders of equity interests in such Acquiring Person (or in any such
     Associate or Affiliate) or to any Person with whom the Acquiring Person (or
     any such Associate or Affiliate) has any continuing agreement, arrangement
     or understanding regarding the transferred Rights or (B) a transfer which
     the Board of Directors of the Company has determined (whether before or
     after such transfer) is part of a plan, arrangement or understanding which
     has as a primary purpose or effect the avoidance of this Section 7(e),
     shall become null and void without any further action and no holder of such
     Rights shall have any rights whatsoever with respect to such Rights,
     whether under any provision of this Agreement or otherwise. No Right
     Certificate shall be issued pursuant to Section 3 hereof that represents
     Rights beneficially owned by an Acquiring Person or any Associate or
     Affiliate thereof and no Right Certificate shall be issued at any time upon
     the transfer of any Rights to an Acquiring Person or any Affiliate or
     Associate thereof or to any nominee of such Acquiring Person, Associate or
     Affiliate. Any Right Certificate delivered to the Rights Agent for transfer
     to any of the foregoing Persons, or which represents void Rights, shall be
     canceled. The Company shall use all reasonable efforts to insure that the
     provisions of this Section 7(e) are complied with, but shall have no
     liability to any holder of Right Certificates or other Person as a result
     of its failure to make any determinations with respect to an Acquiring
     Person or its Affiliates and Associates or any transferee of any of them
     hereunder.

            (f)   Notwithstanding anything in this Agreement to the contrary,
     neither the Rights Agent nor the Company shall be obligated to undertake
     any action with respect to a registered holder of Rights upon the
     occurrence of any purported transfer as set forth in Section 6 hereof or
     exercise as set forth in this Section 7 unless such registered holder shall
     have (i) completed and signed the certificate contained in the form of
     election to purchase set forth on the reverse side of the Right Certificate
     surrendered for such exercise and (ii) provided such additional evidence of
     the identity of the Beneficial Owner (or former Beneficial Owner) or
     Affiliates or Associates thereof as the Company

                                      -10-
<Page>

     shall reasonably request.

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

     Section 9.   RESERVATION AND AVAILABILITY OF CAPITAL STOCK.

            (a)   The Company covenants and agrees that it will cause to be
     reserved and kept available out of its currently authorized and unissued
     shares of Common Stock the number of shares of Common Stock that, as
     provided in this Agreement, including Section 11(a) (iii) hereof, will be
     sufficient to permit to the maximum extent possible the exercise of all
     outstanding Rights; PROVIDED, HOWEVER, that if the Company does not have
     sufficient authorized and unissued shares of Common Stock as of the date of
     this Agreement or at any other time, the Company will use its best efforts
     to amend its Certificate of Incorporation to increase the authorized number
     of shares to an amount sufficient to permit to the maximum extent possible
     the exercise of all outstanding Rights.

            (b)   So long as the Common Stock issuable and deliverable upon the
     exercise of Rights may be listed on any national securities exchange
     (including the National Association of Securities Dealers, Inc. Automated
     Quotation System or such other system then in use), the Company shall use
     its best efforts to cause, from and after such time as the Rights became
     exercisable, all shares reserved for such issuance to be listed on such
     exchange upon official notice of issuance upon such exercise.

            (c)   The Company shall use its best efforts to (i) file, as soon as
     practicable following the earliest date after the occurrence of a Section
     11(a)(ii) Event as of which the consideration to be delivered by the
     Company upon exercise of the Rights has been determined in accordance with
     Section 11(a)(ii) or Section 11(a)(iii) hereof, or as soon as is required
     by law following the Distribution Date, as the case may be, a registration
     statement under the Securities Act of 1933, as amended (the "Act"), with
     respect to the securities purchasable upon exercise of the Rights on an
     appropriate form, (ii) cause such registration statement to become
     effective as soon as practicable after such filing, and (iii) cause such
     registration statement to remain effective (with a prospectus at all times
     meeting the requirements of the Act) until the earlier of (A) the date as
     of which the Rights are no longer exercisable for such securities and (B)
     the Expiration Date. The Company will also take such action as may be
     appropriate under, or to ensure compliance

                                      -11-
<Page>

     with, the securities or "blue sky" laws of the various states in connection
     with the exercisability of the Rights. The Company may temporarily suspend,
     for a period of time not to exceed 90 days after the date set forth in
     clause (i) of the first sentence of this Section 9(c), the exercisability
     of the Rights in order to prepare and file such registration statement and
     permit it to become effective. Upon any such suspension, the Company shall
     issue a public announcement stating that the exercisability of the Rights
     has been temporarily suspended, as well as a public announcement at such
     time as the suspension is no longer in effect. Notwithstanding any such
     provision of this Agreement to the contrary, the Rights shall not be
     exercisable in any jurisdiction if the requisite qualification in such
     jurisdiction shall not have been obtained, the exercise thereof shall not
     be permitted under applicable law or a registration statement shall not
     have been declared effective. Nothing herein shall require the Company to
     bear the expense of obtaining registration if the cost of such registration
     in a particular jurisdiction presents an unreasonable burden on the Company
     under the circumstances.

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

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

     Section 10.  COMMON STOCK RECORD DATE. Each Person in whose name any
certificate for a share of Common Stock (and/or other securities, as the case
may be) is issued upon the exercise of Rights shall for all purposes be deemed
to have become the holder of record of such shares of Common Stock (and/or other
securities, as the case may be) represented thereby on, and such certificate
shall be dated, the date upon which the Right Certificate evidencing such Rights
was duly surrendered and payment of the Purchase Price (and any applicable
transfer taxes) was made; PROVIDED, HOWEVER, that if the date of such surrender
and payment is a date upon which the Common 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 shall be dated, the next succeeding Business Day
on which the Common Stock transfer books of the Company

                                      -12-
<Page>

are open. Prior to the exercise of the Rights evidenced thereby, the holder of a
Right Certificate shall not be entitled to any rights of a stockholder of the
Company with respect to shares for which the Rights shall be exercisable,
including, without limitation, the right to vote, to receive dividends or other
distributions or to exercise any preemptive rights, and shall not be entitled to
receive any notice of any proceedings of the Company, except as provided herein.

     Section 11.  ADJUSTMENT OF PURCHASE PRICE; NUMBER AND KIND OF SHARES OR
NUMBER OF RIGHTS. The Purchase Price, the number and kind of shares covered by
each Right and the number of Rights outstanding are subject to adjustment from
time to time as provided in this Section 11.

            (a)   (i)    In the event the Company shall at any time after the
     date of this Agreement (A) declare a dividend on the Common Stock payable
     in shares of Common Stock, (B) subdivide the outstanding Common Stock, (C)
     combine the outstanding Common Stock into a smaller number of shares, or
     (D) issue any shares of its capital stock in a reclassification of the
     Common Stock (including any such reclassification in connection with a
     consolidation or merger in which the Company is the continuing or surviving
     corporation) except as otherwise provided in this Section 11(a) and Section
     7(e) hereof, the Purchase Price in effect at the time of the record date
     for such dividend or of the effective date of such subdivision, combination
     or reclassification, and the number and kind of shares of Common Stock or
     capital stock, as the case may be, issuable on such date, shall be
     proportionately adjusted so that the holder of any Right exercised after
     such time shall be entitled to receive, upon payment of the Purchase Price
     then in effect, the aggregate number and kind of shares of Common Stock or
     capital stock, as the case may be, which, if such Right had been exercised
     immediately prior to such date and at a time when the Common Stock transfer
     books of the Company were open, such holder would have owned upon such
     exercise and been entitled to receive by virtue of such dividend,
     subdivision, combination or reclassification.

                  (ii)   In the event that any Person, alone or together with
     its Affiliates and Associates or otherwise, shall become an Acquiring
     Person (a "Section 11(a)(ii) Event"), then proper provision shall promptly
     be made so that each holder of a Right, except as provided below and in
     Section 7(e) hereof, shall thereafter have a right to receive, upon
     exercise thereof at the then current Purchase Price multiplied by the
     number of Shares of Common Stock for which a Right is then exercisable, in
     accordance with the terms of this Agreement, such number of shares of
     Common Stock of the Company as shall equal the result obtained by (x)
     multiplying the then current Purchase Price by the number of shares of
     Common Stock for which a Right is then exercisable and (y) dividing that
     product by 50% of the current market price per share of the Common Stock
     (determined pursuant to Section 11(d)) on the date of the occurrence of the
     Section 11(a) (ii) Event; PROVIDED, HOWEVER, that the Rights shall not be
     exercisable hereunder (a) until after the Distribution Date as provided in
     Section 7(a) hereof, (b) until the expiration of any applicable redemption
     period as provided in Section 23(a), and (c) if the event causing such
     Person to become an Acquiring Person is a transaction set forth in Section
     13(a) hereof, then such provisions shall apply.

                                      -13-
<Page>

                  (iii)  In the event that the number of shares of Common Stock
     which are authorized by the Company's certificate of incorporation but not
     outstanding or reserved for issuance for purposes other than upon exercise
     of the Rights is not sufficient to permit the exercise in full of the
     Rights in accordance with the foregoing subparagraph (ii) of this Section
     11(a)(ii), proper provision shall promptly be made so that each holder of a
     Right, except as provided in Section 7(e) hereof, shall, in the discretion
     of the Company's Board of Directors, thereafter have a right to receive,
     upon exercise thereof in accordance with the terms of this Agreement, such
     number of Common Stock Equivalents or the maximum number of shares of
     Common Stock available for issuance to such holder at a reduced Purchase
     Price which reflects a per share Purchase Price of 50% of current market
     value as determined pursuant to Section 11(a)(ii) above.

            (b)   In case the Company shall fix a record date for the issuance
     of rights, options or warrants (other than the Rights) to all holders of
     Common Stock entitling them to subscribe for or purchase (for a period
     expiring within 45 calendar days after such record date) Common Stock (or
     securities having the same rights, privileges and preferences as the shares
     of Common Stock ("equivalent common stock") or securities convertible into
     Common Stock or equivalent common stock at a price per share of Common
     Stock or per share of equivalent common stock (or having a conversion or
     exercise price per share, if a security convertible into or exercisable for
     Common Stock or equivalent common stock) less than the current market price
     (as determined pursuant to Section 11(d) hereof) per share of Common Stock
     on such record date, the Purchase Price to be in effect after such record
     date shall be determined by multiplying the Purchase Price in effect
     immediately prior to such date by a fraction, the numerator of which shall
     be the number of shares of Common Stock outstanding on such record date,
     plus the number of shares of Common Stock which the aggregate offering
     price of the total number of shares of Common Stock and/or equivalent
     common stock so to be offered (and/or the aggregate initial conversion
     price of the convertible securities so to be offered) would purchase at
     such current market price and the denominator of which shall be the number
     of shares of Common Stock outstanding on such record date plus the number
     of additional shares of Common Stock and/or equivalent common stock to be
     offered for subscription or purchase (or into which the convertible
     securities so to be offered are initially convertible). In case such
     subscription price may be paid by delivery of consideration part or all of
     which shall be in a form other than cash, the value of such consideration
     shall be as determined in good faith by the Board of Directors of the
     Company, whose determination shall be described in a statement filed with
     the Rights Agent and shall be binding on the Rights Agent and the holders
     of Rights. Shares of Common Stock owned by or held for the account of the
     Company shall not be deemed outstanding for the purpose of any such
     computation. Such adjustment shall be made successively whenever such a
     record date is fixed; and in the event that such rights or warrants are not
     so issued, the purchase Price shall be adjusted to be the Purchase Price
     which would then be in effect if such record date had not been fixed.

            (c)   In case the Company shall fix a record date for the making of
     a distribution to all holders of Common Stock (including any such
     distribution made in connection with a consolidation or merger in which the
     Company is the continuing or

                                      -14-
<Page>

     surviving corporation) of evidences of indebtedness, cash (other than a
     regular periodic cash dividend out of the earnings or retained earnings of
     the Company), assets (other than a dividend payable in Common Stock, but
     including any dividend payable in stock other than Common Stock) or
     convertible securities, subscription rights or warrants (excluding those
     referred to in Section 11(b) hereof), the Purchase Price to be in effect
     after such record date shall be determined by multiplying the Purchase
     Price in effect immediately prior to such record date by a fraction, the
     numerator of which shall be the current market price (as determined
     pursuant to Section 11(d) hereof) per share of Common Stock on such record
     date, less the fair market value (as determined in good faith by the Board
     of Directors of the Company, whose determination shall be described in a
     statement filed with the Rights Agent and shall be binding on the Rights
     Agent and the holders of Rights) of the portion of the cash, assets or
     evidences of indebtedness so to be distributed or of such convertible
     securities, subscription rights or warrants applicable to one share of
     Common Stock and the denominator of which shall be such current market
     price (as determined pursuant to Section 11(d) hereof) per share of Common
     Stock. Such adjustments shall be made successively whenever such a record
     date is fixed; and in the event that such distribution is not so made, the
     Purchase Price shall again be adjusted to be the Purchase Price which would
     then be in effect if such record date had not been fixed.

            (d)   For the purpose of any computation hereunder, the "current
     market price" per share of Common Stock on any date shall be deemed to be
     the average of the daily closing prices per share of such Common Stock for
     the 30 consecutive Trading Days (as such term is hereinafter defined)
     immediately prior to such date; PROVIDED, HOWEVER, that in the event that
     the current market price per share of the Common Stock is determined during
     a period following the announcement by the issuer of such Common Stock of
     (A) a dividend or distribution on such Common Stock payable in shares of
     such Common Stock or securities convertible into shares of such Common
     Stock (other than the Rights), or (B) any subdivision, combination or
     reclassification of such Common Stock, and prior to the expiration of the
     requisite 30 Trading Day period, as set forth above, after the ex-dividend
     date for such dividend or distribution, or the record date for such
     subdivision, combination or reclassification, then, and in each such case,
     the "current market price" shall be properly adjusted to take into account
     ex-dividend trading. The closing price for each day shall be the last sale
     price, regular way, or, in case no such sale takes place on such day, the
     average of the closing bid and asked prices, regular way, in either case as
     reported in the principal consolidated transaction reporting system with
     respect to securities listed or admitted to trading on the New York Stock
     Exchange or, if the shares of Common Stock are not listed or admitted to
     trading on the New York Stock Exchange, as reported in the principal
     consolidated transaction reporting system with respect to securities listed
     on the principal national securities exchange on which the shares of Common
     Stock are listed or admitted to trading or, if the shares of Common Stock
     are not listed or admitted to trading on any national securities exchange,
     the last quoted price or, if not so quoted, the average of the high bid and
     low asked prices in the over-the-counter market, as reported by the
     National Association of Securities Dealers, Inc. Automated Quotation System
     ("NASDAQ") or such other system then in use, or, if on any such date the
     shares of Common Stock are not quoted by any such organization, the

                                      -15-
<Page>

     average of the closing bid and asked prices as furnished by a professional
     market maker making a market in the Common Stock selected by the Board of
     Directors of the Company. If on any such date no market maker is making a
     market in the Common Stock, the fair value of such shares on such date as
     determined in good faith by the Board of Directors of the Company shall be
     used. The term "Trading Day" shall mean a day on which the principal
     national securities exchange on which the shares of Common Stock are listed
     or admitted to trading or traded is open for the transaction of business
     or, if the shares of Common Stock are not listed or admitted to trading on
     any national securities exchange, a Business Day. If the Common Stock is
     not publicly held or not so listed or traded, "current market price" per
     share shall mean the fair value per share as determined in good faith by
     the Board of Directors of the Company, or, if at the time of such
     determination there is an Acquiring Person, by a majority of the Continuing
     Directors then in office, or if there are no Continuing Directors, by a
     nationally recognized investment banking firm selected by the Board of
     Directors, which determination shall be described in a statement filed with
     the Rights Agent and shall be conclusive for all purposes.

            (e)   Anything herein to the contrary notwithstanding, no adjustment
     in the Purchase Price shall be required unless such adjustment would
     require an increase or decrease of at least 1% in the Purchase Price;
     PROVIDED, HOWEVER, that any adjustments which by reason of this Section
     11(e) are not required to be made shall be carried forward and taken into
     account in any subsequent adjustment. All calculations under this Section
     11 shall be made to the nearest cent or to the nearest ten-thousandth of a
     share of Common Stock. Notwithstanding the first sentence of this Section
     11(e), any adjustment required by this Section 11 shall be made no later
     than the earlier of (i) three years from the date of the transaction which
     mandates such adjustment or (ii) the Expiration Date.

            (f)   In the event that at any time, as a result of an adjustment
     made pursuant to Section 11(a) (ii), Section 11(a) (iii), Section 13(a) or
     Section 24 hereof, the holder of any Right shall be entitled to receive
     upon exercise of such Right any shares of capital stock other than shares
     of Common Stock, thereafter the number of such other shares so receivable
     upon exercise of any Right and the Purchase Price thereof shall be subject
     to adjustment from time to time in a manner and on terms as nearly
     equivalent as practicable to the provisions with respect to the Common
     Stock contained in Sections 11(a), (b), (c) , (e) , (g) , (h) , (i), (j) ,
     (k), (l) and (m), and the provisions of Sections 6, 7, 9, 10, 13 and 14
     with respect to the Common Stock shall apply on like terms to any such
     other shares.

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

            (h)   Unless the Company shall have exercised its election as
     provided in Section 11(i), upon each adjustment of the Purchase Price as a
     result of the calculations

                                      -16-
<Page>

     made in Section 11(b) and (c), each Right outstanding immediately prior to
     the making of such adjustment shall thereafter evidence the right to
     purchase, at the adjusted Purchase Price, that number of shares of Common
     Stock (calculated to the nearest ten thousandth) obtained by (i)
     multiplying (x) the number of shares covered by a Right immediately prior
     to this adjustment by (y) the Purchase Price in effect immediately prior to
     such adjustment of the Purchase Price and (ii) dividing the product so
     obtained by the Purchase Price in effect immediately after such adjustment
     of the Purchase Price.

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

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

            (k)   Before taking any action that would cause an adjustment
     reducing the Purchase Price below the then par value, if any, of a share of
     Common Stock issuable upon exercise of the Rights, the Company shall take
     any corporate action which may, in the opinion of its counsel, be necessary
     in order that the Company may validly and

                                      -17-
<Page>

     legally issue fully paid and nonassessable shares of Common Stock at such
     adjusted Purchase Price.

            (l)   In any case in which this Section 11 shall require that an
     adjustment in the Purchase Price be made effective as of a record date for
     a specified event, the Company may elect to defer until the occurrence of
     such event the issuance to the holder of any Right exercised after such
     record date the number of shares of Common Stock and other capital stock or
     securities of the Company, if any, issuable upon such exercise over and
     above the number of shares of Common Stock and other capital stock or
     securities of the Company, if any, issuable upon such exercise on the basis
     of the Purchase Price in effect prior to such adjustment; PROVIDED,
     HOWEVER, that the Company shall deliver to such holder a due bill or other
     appropriate instrument evidencing such holder's right to receive such
     additional shares (fractional or otherwise) or securities upon the
     occurrence of the event requiring such adjustment.

            (m)   Anything in this Section 11 to the contrary notwithstanding,
     the Company shall be entitled to make such reductions in the Purchase
     Price, in addition to those adjustments expressly required by this Section
     11, as and to the extent that in their good faith judgment the Board of
     Directors of the Company in its sole discretion shall determine to be
     advisable in order that any (i) consolidation or subdivision of the Common
     Stock, (ii) issuance wholly for cash of any Common Stock at less than the
     current market price, (iii) issuance wholly for cash or Common Stock or
     securities which by their terms are convertible into or exchangeable for
     Common Stock, (iv) stock dividends or (v) issuance of rights, options or
     warrants referred to hereinabove in this Section 11, hereafter made by the
     Company to the holders of its Common Stock, shall not be taxable to such
     stockholders.

            (n)   The Company covenants and agrees that it shall not at any time
     after the Distribution Date (i) consolidate with any other Person (other
     than a Subsidiary of the Company in a transaction that complies with
     Section 11(o) hereof), (ii) merge with or into (other than a Subsidiary of
     the Company in a transaction that complies with Section 11(o) hereof), or
     (iii) sell or transfer (or permit any Subsidiary to sell or transfer) in
     one transaction, or a series of related transactions, assets, cash flow or
     earning power aggregating more than 50% of the assets, cash flow or earning
     power of the Company and its Subsidiaries (taken as a whole), to any other
     Person or Persons (other than the Company and/or any of its Subsidiaries in
     one or more transactions each of which complies with Section 11 (o)
     hereof), if (x) at the time of or immediately after such consolidation,
     merger or sale there are any rights, warrants or other instruments
     outstanding or agreements or arrangements in effect which would
     substantially diminish or otherwise eliminate the benefits intended to be
     afforded by the Rights or (y) prior to, simultaneously with or immediately
     after such consolidation, merger or sale, the stockholders of a Person who
     constitutes, or would constitute, the "Principal Party" for the purposes of
     Section 13(a) hereof shall have received a distribution of Rights
     previously owned by such Person or any of its Affiliates and Associates.

            (o)   The Company covenants and agrees that after the earlier of the
     Stock

                                      -18-
<Page>

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

            (p)   Anything in this Agreement to the contrary notwithstanding, in
     the event that the Company shall at any time after the date hereof and
     prior to the Distribution Date (i) declare a dividend on the outstanding
     shares of Common Stock payable in shares of Common Stock, (ii) subdivide
     the outstanding Common Stock, or (iii) combine the outstanding Common Stock
     into a smaller number of shares, the number of Rights associated with each
     share of Common Stock then outstanding, or issued or delivered thereafter
     but prior to the Distribution Date, shall be proportionately adjusted so
     that the number of Rights thereafter associated with each share of Common
     Stock following any such event shall equal the result obtained by
     multiplying the number of Rights associated with each share of Common Stock
     immediately prior to such event by a fraction the numerator of which shall
     be the total number of shares of Common Stock outstanding immediately
     following the occurrence of the event and the denominator of which shall be
     the total number of shares of Common Stock outstanding immediately prior to
     the occurrence of such event.

     Section 12.  CERTIFICATE OF ADJUSTED PURCHASE PRICE OR NUMBER OF SHARES OR
COMMON STOCK EQUIVALENTS. Whenever an adjustment is made as provided in Sections
11, 13, 23 and 24 hereof, the Company shall (a) promptly prepare a certificate
setting forth such adjustment and a brief statement of the facts accounting for
such adjustment, (b) promptly file with the Rights Agent and with each transfer
agent for the Common Stock a copy of such certificate and (c) mail a brief
summary thereof to each holder of a Right Certificate (or, if prior to the
Distribution Date, to each holder of a certificate representing shares of Common
Stock) in accordance with Section 26 hereof. The Rights Agent shall be fully
protected in relying on any such certificate and on any adjustment therein
contained.

     Section 13.  CONSOLIDATION, MERGER OR SALE OF ASSETS OR EARNING POWER.

            (a)   In the event that, following the earlier of the Distribution
     Date and the Stock Acquisition Date, directly or indirectly, (x) the
     Company shall consolidate with, or merge with and into, any other Person
     (other than a Subsidiary of the Company in a transaction that complies with
     Section 11(o) hereof), and the Company shall not be the continuing or
     surviving corporation of such consolidation or merger, (y) any Person
     (other than a Subsidiary of the Company in a transaction that complies with
     Section 11(o) hereof) shall merge with and into the Company, and the
     Company shall be the continuing or surviving corporation of such merger
     and, in connection with such merger, all or part of the Common Stock shall
     be changed into or exchanged for stock or other securities of any other
     Person or cash or any other property, or (z) the Company shall sell or
     otherwise transfer (or one or more of its Subsidiaries shall sell or
     otherwise transfer), in one transaction or a series of related
     transactions, assets, cash flow or earning power aggregating more than 50%
     of the assets, cash flow or earning power of the Company

                                      -19-
<Page>

     and its Subsidiaries (taken as a whole) to any other Person or Persons
     (other than a Subsidiary of the Company in a transaction that complies with
     Section 11(o) hereof), then, and in each such case, proper provision shall
     be made so that: (i) each holder of a Right, except as provided in Section
     7(e) hereof, shall thereafter have the right to receive, upon the exercise
     thereof at the then current Purchase Price multiplied by the number of
     shares of Common Stock for which a Right is then exercisable (without
     taking into account any adjustment previously made pursuant to Section
     11(a) (ii) or 11(a) (iii)), in accordance with the terms of this Agreement,
     such number of validly authorized and issued, fully paid and nonassessable
     shares of freely tradeable Common Stock of the Principal Party (as
     hereinafter defined), not subject to any rights of call or first refusal,
     liens, encumbrances or other claims, as shall be equal to the result
     obtained by (1) multiplying the then current Purchase Price by the number
     of shares of Common Stock for which a Right is then exercisable (without
     taking into account any adjustment previously made pursuant to Section
     11(a) (ii) or 11(a) (iii)) and dividing that product by (2) 75% of the
     current market price (determined pursuant to Section 11(d) (i) hereof) per
     share of the Common Stock of such Principal Party on the date of
     consummation of such consolidation, merger, sale or transfer; (ii) the
     Principal Party shall thereafter be liable for, and shall assume, by virtue
     of such consolidation, merger, sale or transfer, all the obligations and
     duties of the Company pursuant to this Agreement; (iii) the term "Company"
     shall thereafter be deemed to refer to such Principal Party, it being
     specifically intended that the provisions of Section 11 hereof shall apply
     to such Principal Party; (iv) such Principal Party shall take such steps
     (including, but not limited to, the authorization and reservation of a
     sufficient number of shares of its Common Stock to permit exercise of all
     outstanding Rights in accordance with this Section 13(a)) in connection
     with such consummation as may be necessary to assure that the provisions
     hereof shall thereafter be applicable, as nearly as reasonably may be, in
     relation to the shares of its Common Stock thereafter deliverable upon the
     exercise of the Rights; and (v) the provisions of Section 11(a)(ii) hereof
     shall be of no effect following the fist occurrence of any event set forth
     in clauses (x), (y) or (z) of this Section 13.

            (b)   "Principal Party" shall mean

                         (1)   in the case of any transaction described
                  in clause (x) or (y) of the first sentence of Section 13(a),
                  the Person that is the issuer of any securities into which
                  shares of Common Stock of the Company are converted in such
                  merger or consolidation, and if no securities are so issued,
                  the Person that is the other party to the merger or
                  consolidation; and

                         (2)   in the case of any transaction described in
                  clause (z) of the first sentence of Section 13(a), the Person
                  that is the party receiving the greatest portion of the assets
                  or earning power transferred pursuant to such transaction or
                  transactions;

     PROVIDED, HOWEVER, that in any such case, (x) if the Common Stock of such
     Person is not at such time and has not been continuously over the preceding
     12-month period

                                      -20-
<Page>

     registered under Section 12 of the Exchange Act, and such person is a
     direct or indirect Subsidiary of another Person the Common Stock of which
     is and has been so registered, "Principal Party" shall refer to such other
     Person; and (y) in case such Person is a Subsidiary, directly or
     indirectly, of more than one Person, the Common Stocks of two or more of
     which are and have been so registered, "Principal Party" shall refer to
     whichever of such Persons is the issuer of the Common Stock having the
     greatest aggregate market value.

            (c)   The Company shall not consummate any such consolidation,
     merger, sale or transfer unless the Principal Party shall have a sufficient
     number of authorized shares of its Common Stock which have not been issued
     or reserved for issuance to permit the exercise in full of the Rights in
     accordance with this Section 13 and unless prior thereto the Company and
     such Principal Party shall have executed and delivered to the Rights Agent
     a supplemental agreement providing for the terms set forth in paragraphs
     (a) and (b) of this Section 13 and further providing that, as soon as
     practicable after the date of any consolidation, merger or sale of assets
     mentioned in paragraph (a) of this Section 13, the Principal Party will:

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

                         (ii)  take all such other action as may be necessary to
                  enable the Principal Party to issue the securities purchasable
                  upon exercise of the Rights, including but not limited to the
                  registration or qualification of such securities under all
                  requisite securities laws of jurisdictions of the various
                  states and the listing of such securities on such exchanges
                  and trading markets as may be necessary or appropriate; and

                         (iii) will deliver to holders of the Rights historical
                  financial statements for the Principal Party and each of its
                  Affiliates which comply in all respects with the requirements
                  for registration on Form 10 under the Exchange Act.

     The provisions of this Section 13 shall similarly apply to successive
mergers or consolidations or sales or other transfers. If any event described in
Section 13 (a) (x), (y) or (z) shall occur at any time after the occurrence of a
Section 11(a) (ii) Event, the Rights which have not theretofore been exercised
shall thereafter become exercisable in the manner described in Section 13 (a).

     Section 14.  FRACTIONAL RIGHTS AND FRACTIONAL SHARES.

            (a)   The Company shall not issue fractions of Rights or distribute
     Right

                                      -21-
<Page>

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

            (b)   The Company shall not issue fractions of shares of Common
     Stock upon exercise of the Rights or distribute certificates which evidence
     fractional shares of Common Stock. In lieu of fractional shares of Common
     Stock, the Company shall pay to the registered holders of Right
     Certificates at the time such Right Certificates are exercised as herein
     provided an amount in cash equal to the same fraction of the current market
     value of one share of Common Stock. For purposes of this Section 14(b), the
     current market value of one share of Common Stock shall be the closing
     price of a share of Common Stock (as determined pursuant to Section 11(d)
     hereof) for the Trading Day immediately prior to the date of such exercise.

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

     Section 15.  RIGHTS OF ACTION. All rights of action in respect of this
Agreement are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of
Common Stock) and any registered holder of any Right Certificate (or, prior to
the Distribution Date, of the Common Stock), without the consent of the Rights
Agent or of the holder of any other Right Certificate (or, prior to the
Distribution Date, of the Common Stock), may, in his own behalf and for his own
benefit, enforce, and may institute and maintain any suit, action or proceeding
against the Company to enforce, or otherwise act in respect of, his right to
exercise the Rights evidenced by such Right Certificate in the manner provided
in such Right Certificate and in this Agreement. Without limiting the foregoing
or any

                                      -22-
<Page>

remedies available to the holders of Rights, it is specifically acknowledged
that the holders of Rights would not have an adequate remedy at law for any
breach of this Agreement and will be entitled to specific performance of the
obligations under, and injunctive relief against actual or threatened violations
of the obligations of, any Person subject to this Agreement.

     Section 16.  AGREEMENT OF RIGHT HOLDERS. Every holder of a Right by
accepting the same consents and agrees with the Company and the Rights Agent and
with every other holder of a Right that:

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

            (b)   after the Distribution Date, the Right Certificates are
     transferable only on the registry books of the Rights Agent if surrendered
     at the principal office or offices of the Rights Agent designated for such
     purposes, duly endorsed or accompanied by a proper instrument of transfer
     and with the appropriate certificates fully executed;

            (c)   subject to Section 6(a) and Section 7(f) hereof, the Company
     and the Rights Agent may deem and treat the Person in whose name the Right
     Certificate (or, prior to the Distribution Date, the associated Common
     Stock certificate) is registered as the absolute owner thereof and of the
     Rights evidenced thereby (notwithstanding any notations of ownership or
     writing on the Right Certificates or the associated Common Stock
     certificate made by anyone other than the Company or the Rights Agent) for
     all purposes whatsoever, and neither the Company nor the Rights Agent,
     subject to the last sentence of Section 7(e) hereof, shall be affected by
     any notice to the contrary; and

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

     Section 17.  RIGHT CERTIFICATE HOLDER NOT DEEMED A STOCKHOLDER. No holder,
as such, of any Right Certificate shall be entitled to vote, receive dividends
or be deemed for any purpose the holder of the number of shares of Common Stock
or any other securities of the Company which may at any time be issuable on the
exercise of the Rights represented thereby, nor shall anything contained herein
or in any Right Certificate be construed to confer upon the holder of any Right
Certificate, as such, any of the rights of a stockholder of the Company or any
right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in Section 25), or to receive

                                      -23-
<Page>

dividends or subscription rights, or otherwise, until the Right or Rights
evidenced by such Right Certificate shall have been exercised in accordance with
the provisions hereof.

     Section 18.  CONCERNING THE RIGHTS AGENT.

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

     (b)    The Rights Agent shall be protected and shall incur no liability for
     or in respect of any action taken, suffered or omitted by it in connection
     with its administration of this Agreement in reliance upon any Right
     Certificate or certificate for Common Stock or for other securities of the
     Company, instrument of assignment or transfer, power of attorney,
     endorsement, affidavit, letter, notice, direction, consent, certificate,
     statement, or other paper or document believed by it to be genuine and to
     be signed, executed and, where necessary, verified or acknowledged, by the
     proper Person or Persons.

     Section 19.  MERGER OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT.

            (a)   Any corporation into which the Rights Agent or any successor
     Rights Agent may be merged or with which it may be consolidated, or any
     corporation resulting from any merger or consolidation to which the Rights
     Agent or any successor Rights Agent shall be a party, or any corporation
     succeeding to the corporate trust or stock transfer business of the Rights
     Agent or any successor Rights Agent, shall be the successor to the Rights
     Agent under this Agreement without the execution or filing of any paper or
     any further act on the part of any of the parties hereto, provided that
     such corporation would be eligible for appointment as a successor Rights
     Agent under the provisions of Section 21. In case at the time such
     successor Rights Agent shall succeed to the agency created by this
     Agreement, any of the Right Certificates shall have been countersigned but
     not delivered, any such successor Rights Agent may adopt the
     countersignature of the predecessor Rights Agent and deliver such Right
     Certificates so countersigned; and in case at that time any of the Right
     Certificates shall not have been countersigned, any successor Rights Agent
     may countersign such Right Certificates either in the name of the
     predecessor Rights Agent or in the name of the successor Rights Agent; and
     in all such cases such Right Certificates shall have the full force
     provided in the Right Certificates and in this Agreement.

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

                                      -24-
<Page>

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

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

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

            (b)   Whenever in the performance of its duties under this Agreement
     the Rights Agent shall deem it necessary or desirable that any fact or
     matter (including, without limitation, the identity of any "Acquiring
     Person" and the determination of "current market price" and Common Stock
     Equivalent) be proved or established by the Company prior to taking or
     suffering any action hereunder, such fact or matter (unless other evidence
     in respect thereof be herein specifically prescribed) may be deemed to be
     conclusively proved and established by a certificate signed by the Chairman
     of the Board, the President or any Vice President and by the Treasurer or
     any Assistant Treasurer or the Secretary or any Assistant Secretary of the
     Company and delivered to the Rights Agent; and such certificate shall be
     full authorization to the Rights Agent for any action taken or suffered in
     good faith by it under the provisions of this Agreement in reliance upon
     such certificate.

            (c)   The Rights Agent shall be liable hereunder only for its own
     negligence, bad faith or willful misconduct.

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

            (e)   The Rights Agent shall not be under any responsibility in
     respect of the validity of this Agreement or the execution and delivery
     hereof (except the due execution hereof by the Rights Agent) or in respect
     of the validity or execution of any Right Certificate (except its
     countersignature thereof); nor shall it be responsible for any breach by
     the Company of any covenant or condition contained in this Agreement or in
     any Right Certificate; nor shall it be responsible for any change in the
     exercisability of the Rights (including the Rights becoming void pursuant
     to Section 7(e) hereof) or any adjustment in the terms of the Rights
     (including the manner, method or amount thereof) provided for in Sections
     3, 11, 13, 23 or 24, or the ascertaining of the existence of facts

                                      -25-
<Page>

     that would require any such adjustment (except with respect to the exercise
     of Rights evidenced by Right Certificates after actual notice of any such
     adjustment); nor shall it by any act hereunder be deemed to make any
     representation or warranty as to the authorization or reservation of any
     shares of Common Stock to be issued pursuant to this Agreement or any Right
     Certificate or as to whether any shares of Common Stock will, when issued,
     be validly authorized and issued, fully paid and nonassessable.

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

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

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

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

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

            (k)   If, with respect to any Right 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
     either not been completed or indicates an affirmative response to any item
     therein, the Rights Agent shall not take any further

                                      -26-
<Page>

     action with respect to such requested exercise or transfer without first
     consulting with the Company.

     Section 21.  CHANGE OF RIGHTS AGENT. The Rights Agent or any successor
Rights Agent may resign and be discharged from its duties under this Agreement
upon 30 days' notice in writing mailed to the Company and to each transfer agent
of the Common Stock by registered or certified mail and to the holders of the
Right Certificates by first-class mail. The Company may remove the Rights Agent
or any successor Rights Agent upon 30 days' notice in writing, mailed to the
Rights Agent or successor Rights Agent, as the case may be, and to each transfer
agent of the Common Stock by registered or certified mail and to the holders of
the Right Certificates by first-class mail. If the Rights Agent shall resign or
be removed or shall otherwise become incapable of acting, the Company shall
appoint a successor to the Rights Agent. If the Company shall fail to make such
appointment within a period of 30 days after such removal or after it has been
notified in writing of such resignation or incapacity by the resigning or
incapacitated Rights Agent or by the holder of a Right Certificate (who shall,
with such notice, submit his Right Certificate for inspection by the Company),
then the registered holder of any Right Certificate may apply to any court of
competent jurisdiction for the appointment of a new Rights Agent. Any successor
Rights Agent, whether appointed by the Company or by such a court, shall be (a)
a corporation organized and doing business under the laws of the United States
or of any state of the United States, in good standing, having a principal
office in the State of Connecticut or New York, which is authorized under such
laws to exercise stock transfer or corporate trust powers and is subject to
supervision or examination by federal or state authority and which has at the
time of its appointment as Rights Agent a combined capital and surplus of at
least $50,000,000 or (b) an Affiliate of a corporation described in clause (a)
of this sentence. After appointment, the successor Rights Agent shall be vested
with the same powers, rights, duties and responsibilities as if it had been
originally named as Rights Agent without further act or deed; but the
predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for that purpose. Not later
than the effective date of any such appointment, the Company shall file notice
thereof in writing with the predecessor Rights Agent and each transfer agent of
the Common Stock and mail a notice thereof in writing to the registered holders
of the Right Certificates. Failure to give any notice provided for in this
Section 21, however, or any defect therein, shall not affect the legality or
validity of the resignation or removal of the Rights Agent or the appointment of
the successor Rights Agent, as the case may be.

     Section 22.  ISSUANCE OF NEW RIGHT CERTIFICATES. Notwithstanding any of the
provisions of this Agreement or of the Rights to the contrary, the Company may,
at its option, issue new Right Certificates evidencing Rights in such form as
may be approved by its Board of Directors to reflect any adjustment or change in
the Purchase Price and the number or kind or class of shares of stock or other
securities or property purchasable under the Right Certificates made in
accordance with the provisions of this Agreement. In addition, in connection
with the issuance or sale of shares of Common Stock following the Distribution
Date and prior to the earliest of the redemption, exchange or expiration of the
Rights, the Company (a) shall, with respect to shares of Common Stock so issued
or sold pursuant to the exercise of employee stock options or under or to any
employee plan, profit sharing trust or other arrangement outstanding, granted or
awarded as of the Distribution Date, or upon the exercise, conversion or
exchange of

                                      -27-
<Page>

securities issued by the Company prior to such date, and (b) may, in any other
case, if deemed necessary or appropriate by a majority of Continuing Directors,
issue Right Certificates representing the appropriate number of Rights in
connection with such issuance or sale; PROVIDED, HOWEVER, that (i) no such Right
Certificate shall be issued if, and to the extent that, the Company shall be
advised by counsel that such issuance would create a significant risk of
material adverse tax consequences to the Company or the person to whom such
Right Certificate would be issued, and (ii) no such Right Certificate shall be
issued if, and to the extent that, appropriate adjustment shall otherwise have
been made in lieu of the issuance thereof.

     Section 23.  REDEMPTION.

     (a)    The Board of Directors of the Company may, at its option, at any
     time prior to the earlier of (i) the close of business on the tenth
     Business Day after the Stock Acquisition Date (or such later date as
     determined by the Company in accordance with Section 27 hereof) or (ii) the
     Final Expiration Date, redeem all but not less than all the then
     outstanding Rights at a redemption price of $.00l per Right appropriately
     adjusted to reflect any stock split, stock dividend, reclassification or
     similar transaction occurring after the date hereof (such redemption price
     being hereinafter referred to as the "Redemption Price"); PROVIDED,
     HOWEVER, that if the Board of Directors of the Company authorizes
     redemption of the Rights at or after the time a Person becomes an Acquiring
     Person, then there must be Continuing Directors then in office and such
     authorization shall require the concurrence of a majority of such
     Continuing Directors. Notwithstanding anything in this Agreement to the
     contrary, the Rights shall not be exercisable after the first occurrence of
     a Section 11(a) (ii) Event until such time as the Company's right of
     redemption hereunder has expired. The Company may, at its option, pay the
     Redemption Price in cash, shares of Common Stock (based on the "current
     market price," as defined in Section 11(d) hereof, of the Common Stock at
     the time of redemption) or any other form of consideration deemed
     appropriate by the Board of Directors.

            (b)   Immediately upon the action of the Board of Directors of the
     Company ordering the redemption of the Rights and without any further
     action and without any notice, the right to exercise the Rights will
     terminate and the only right thereafter of the holders of Rights shall be
     to receive the Redemption Price for each Right so held. Promptly after the
     action of the Board of Directors ordering the redemption of the Rights, the
     Company shall give notice of such redemption to the Rights Agent and the
     holders of the then outstanding Rights by mailing such notice to all such
     holders at their last addresses as they appear upon the registry books of
     the Rights Agent or, prior to the Distribution Date, on the registry books
     of the Transfer Agent for the Common Stock. Any notice which is mailed in
     the manner herein provided shall be deemed given, whether or not the holder
     receives the notice. Each such notice of redemption will state the method
     by which the payment of the Redemption Price will be made. Neither the
     Company nor any of its Subsidiaries may redeem, acquire or purchase for
     value any Rights at any time in any manner other than that specifically set
     forth in this Section 23 or in Section 24 hereof, and other than in
     connection with the purchase or other acquisition of shares of Common Stock
     prior to the Distribution Date.

                                      -28-
<Page>

Section 24. EXCHANGE.

            (a)   The Board of Directors of the Company may, at its option, at
     any time after any Person becomes an Acquiring Person, exchange all or part
     of the then outstanding and exercisable Rights (which shall not include
     Rights that have become void pursuant to the provisions of Section 7(e)
     hereof) for Common Stock at an exchange ratio of one share of Common Stock
     per Right, appropriately adjusted to reflect any stock split, stock
     dividend or similar transaction occurring after the date hereof (such
     exchange ratio being hereinafter referred to as the "Exchange Ratio").
     Notwithstanding the foregoing, the Board of Directors of the Company shall
     not be empowered to effect such exchange at any time after any Person
     (other than the Company, any Subsidiary of the Company, any employee
     benefit plan of the Company or any such Subsidiary, or any entity holding
     Common Stock for or pursuant to the terms of any such plan), together with
     all Affiliates and Associates of such Person, becomes the Beneficial Owner
     of 50% or more of the Common Stock then outstanding.

            (b)   Immediately upon the action of the Board of Directors of the
     Company ordering the exchange of any Rights pursuant to subsection (a) of
     this Section 24 and without any further action and without any notice, the
     right to exercise such Rights shall terminate and the only right thereafter
     of a holder of such Rights shall be to receive that number of shares of
     Common Stock equal to the number of such Rights held by such holder
     multiplied by the Exchange Ratio. The Company shall promptly give public
     notice of any such exchange; provided, however, that the failure to give,
     or any defect in, such notice shall not affect the validity of such
     exchange. The Company promptly shall mail a notice of any such exchange to
     all of the holders of such Rights at their last addresses as they appear
     upon the registry books of the Rights Agent. Any notice which is mailed in
     the manner herein provided shall be deemed given, whether or not the holder
     receives the notice. Each such notice of exchange will state the method by
     which the exchange of the Common Stock for Rights will be effected and, in
     the event of any partial exchange, the number of Rights which will be
     exchanged. Any partial exchange shall be effected pro rata based on the
     number of Rights (other than Rights which have become void pursuant to the
     provisions of Section 7(e) hereof) held by each holder of Rights.

            (c)   In the event that there shall not be sufficient shares of
     Common Stock issued but not outstanding or authorized but unissued to
     permit any exchange of rights as contemplated in accordance with this
     Section 24, the Company shall take all such action as may be necessary to
     authorize additional shares of Common Stock for issuance upon exchange of
     the Rights.

            (d)   The Company shall not be required to issue fractions of shares
     of Common Stock or to distribute certificates which evidence fractional
     shares of Common Stock. In lieu of such fractional shares of Common Stock,
     there shall be paid to the registered holders of the Rights Certificates
     with regard to which such fractional shares of Common Stock would otherwise
     be issuable, an amount in cash equal to the same

                                      -29-
<Page>

     fraction of the current market value of a whole share of Common Stock. For
     the purposes of this subsection (d), the current market price of a whole
     share of Common Stock shall be the closing price of a share of Common Stock
     (as determined pursuant to Section 11(d) hereof) for the Trading Day
     immediately prior to the date of exchange pursuant to this Section 24.

            (e)   In any exchange pursuant to this Section 24, the Company, at
     its option, may substitute Common Stock Equivalents for each share of
     Common Stock, as appropriately adjusted to reflect stock splits, stock
     dividends and other similar transactions after the date hereof. In such
     event, "Event Date" as provided in the definition of Common Stock
     Equivalents in Section 1(g) hereof shall mean the Trading Day immediately
     prior to the date of exchange pursuant to this Section 24.

Section 25. NOTICE OF PROPOSED ACTIONS.

            (a)   In case the Company shall propose, at any time after the
     Distribution Date, (i) to pay any dividend payable in stock of any class to
     the holders of Common Stock or to make any other distribution to the
     holders of Common Stock (other than a regular quarterly cash dividend out
     of earnings or retained earnings of the Company), or (ii) to offer to the
     holders of its Common Stock rights or warrants to subscribe for or to
     purchase any additional shares of Common Stock or shares of stock of any
     class or any other securities, rights or options, or (iii) to effect any
     reclassification of its Common Stock (other than a reclassification
     involving only the subdivision of outstanding shares of Common Stock), or
     (iv) to effect any consolidation or merger into or with any other Person
     (other than the Company and/or any of its Subsidiaries in one or more
     transactions each of which complies with Section 11(o) hereof), or to
     effect any sale or other transfer (or to permit one or more of its
     Subsidiaries to effect any sale or other transfer), in one transaction or a
     series of related transactions, of more than 50% of the assets, cash flow
     or earning power of the Company and its Subsidiaries (taken as a whole) to
     any other Person or Persons (other than the Company and/or any of its
     Subsidiaries in one or more transactions each of which complies with
     Section 11(o) hereof), or (v) to effect the liquidation, dissolution or
     winding up of the Company, then, in each such case, the Company shall give
     to each holder of a Right, to the extent feasible and in accordance with
     Section 26, a notice of such proposed action, which shall specify the
     record date for the purposes of such stock dividend, distribution of rights
     or warrants, or the date on which such reclassification, consolidation,
     merger, sale, transfer, liquidation, dissolution, or winding up is to take
     place and the date of participation therein by the holders of Common Stock,
     if any such date is to be fixed, and such notice shall be so given in the
     case of any action covered by clause (i) or (ii) above at least 20 days
     prior to the record date for determining holders of the Common Stock for
     purposes of such action, and in the case of any such other action, at least
     20 days prior to the date of the taking of such proposed action or the date
     of participation therein by the holders of Common Stock, whichever shall be
     the earlier. The failure to give notice required by this Section 25 or any
     defect therein shall not affect the legality or validity of the action
     taken by the Company or the vote upon any such action.

                                      -30-
<Page>

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

     Section 26.  NOTICES. Notices or demands authorized by this Agreement to be
given or made by the Rights Agent or by the holder of any Right Certificate to
or on the Company shall be sufficiently given or made if sent by first-class
mail, postage prepaid, addressed (until another address is filed in writing with
the Rights Agent) as follows:

                  Patriot National Bancorp, Inc.
                  900 Bedford Street
                  Stamford, Connecticut 06901

                  Attention:    Corporate Secretary

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

                  Registrar and Transfer Company
                  10 Commerce Drive
                  Cranford, New Jersey 07016

                  Attention: Michael Adamo

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

     Section 27.  SUPPLEMENTS AND AMENDMENTS. Prior to the Distribution Date and
subject to the penultimate sentence of this Section 27, the Company and the
Rights Agent shall, if the Company so directs, supplement or amend any provision
of this Agreement (whether or not adverse to the holders of Rights) without the
approval of any holders of Rights. From and after the Distribution Date and
subject to the penultimate sentence of this Section 27, the Company and the
Rights Agent shall, if the Company so directs, supplement or amend this
Agreement without the approval of any holders of Rights in order (i) to cure any
ambiguity, (ii) to correct or supplement any provision contained herein which
may be defective or inconsistent with any other provisions herein, (iii) to
shorten or lengthen any time period hereunder, or reinstate any expired
redemption rights, or (iv) to change or supplement the provisions hereof in any
manner which the Company may deem necessary or desirable and which shall not
materially adversely affect the interests of the holders of Rights Certificates
(other than an Acquiring Person or an

                                      -31-
<Page>

Affiliate or Associate of an Acquiring Person); PROVIDED, HOWEVER, that in the
case of any amendment or supplement described in clauses (iii) and (iv) of this
Section 27, such supplement or amendment shall be effective only if there are
Continuing Directors then in office and shall require the concurrence of a
majority of such Continuing Directors if such supplement or amendment occurs at
or after the time a Person becomes an Acquiring Person. Upon the delivery of a
certificate from an appropriate officer of the Company which states that the
proposed supplement or amendment is in compliance with the terms of this Section
27, the Rights Agent shall execute such supplement or amendment. Notwithstanding
anything contained in this Agreement to the contrary, no supplement or amendment
shall be made which decreases the Redemption Price. Prior to the Distribution
Date, the interests of the holders of Rights shall be deemed coincident with the
interests of the holders of Common Stock.

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

     Section 29.  DETERMINATIONS AND ACTIONS BY THE BOARD OF DIRECTORS, ETC. For
all purposes of this Agreement, any calculation of the number of shares of
Common Stock outstanding at any particular time, including 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 l3d-3(d)(1)(i) of the General Rules and Regulations
under the Exchange Act. The Board of Directors of the Company (with, where
specifically provided for herein, the concurrence of the Continuing Directors)
shall have the exclusive power and authority to administer this Agreement and to
exercise all rights and powers specifically granted to the Board (with, where
specifically provided for herein, the concurrence of the Continuing Directors)
or to the Company, or as may be necessary or advisable in the administration of
this Agreement, including without limitation, the right and power to (i)
interpret the provisions of this Agreement and (ii) make all determinations
deemed necessary or advisable for the administration of this Agreement
(including a determination to redeem or not redeem the Rights, to exchange or
not to exchange the Rights or to amend the Agreement). All such actions,
calculations, interpretations and determinations (including, for purposes of
clause (y) below, all omissions with respect to the foregoing) which are done or
made by the Board (or, where specifically provided for herein, by the Continuing
Directors) in good faith, shall (x) be final, conclusive and binding on the
Company, the Rights Agent, the holders of the Rights and all other parties, and
(y) not subject to the Board or the Continuing Directors to any liability to the
holders of the Right.

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

     Section 31.  SEVERABILITY. If any term, provision, covenant or restriction
of this Agreement is held by a court of competent jurisdiction or other
authority to be invalid, void or

                                      -32-
<Page>

unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated; provided, however, that
notwithstanding anything in this Agreement to the contrary, if any such term,
provision, covenant or restriction is held by such court or authority to be
invalid, void or unenforceable and the Board of Directors of the Company
determines in its good faith judgment that severing the invalid language from
this Agreement would adversely affect the purpose or effect of this Agreement,
the right of redemption set forth in Section 23 hereof shall be reinstated and
shall not expire until the close of business on the tenth Business Day following
the date of such determination by the Board of Directors. Without limiting the
foregoing, if any provision requiring a specific group of directors of the
Company to act is held by any court of competent jurisdiction or other authority
to be invalid, void or unenforceable, such determination shall then be made by
the Board of Directors of the Company in accordance with applicable law and the
Company's Certificate of Incorporation, as amended, and By-laws.

     Section 32.  GOVERNING LAW. This Agreement, each Right and each Right
Certificate issued hereunder shall be deemed to be a contract made under the
laws of the State of New Jersey and for all purposes shall be governed by and
construed in accordance with the laws of such state applicable to contracts to
be made and performed entirely within such state.

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

     Section 34.  DESCRIPTIVE HEADINGS. The captions herein and in the table of
contents hereto are included for convenience of reference only, do not
constitute a part of this Agreement and shall be ignored in the construction and
interpretation hereof.

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

Attest:                                 PATRIOT NATIONAL BANCORP, INC.

By /s/ Sarah Allen                      By /s/ Charles F. Howell
   ---------------------------             ----------------------------------
Name:  Sarah Allen                      Name:  Charles F. Howell
Title: Assistant Vice President         Title: President

Attest:                                 REGISTRAR AND TRANSFER COMPANY

By /s/ Mary Rose Cascaes                By /s/ William P. Tatler
   ---------------------------             ----------------------------------
Name:  Mary Rose Cascaes                Name:  William P. Tatler
Title: Executive Vice President and     Title: Vice President
       Assistant Secretary

<Page>

                                    EXHIBIT A

                            Form of Right Certificate

Certificate No. R-                                            ____________Rights

     NOT EXERCISABLE AFTER APRIL 19, 2014 OR EARLIER IF REDEEMED OR EXCHANGED BY
     THE COMPANY. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE
     COMPANY, AT $.001 PER RIGHT, AND TO EXCHANGE AT THE OPTION OF THE COMPANY,
     ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. AS DESCRIBED IN THE RIGHTS
     AGREEMENT, RIGHTS BENEFICIALLY OWNED BY (1) AN ACQUIRING PERSON OR ANY
     ASSOCIATE OR AFFILIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
     AGREEMENT), (2) A TRANSFEREE OF AN ACQUIRING PERSON (OR OF ANY SUCH
     ASSOCIATE OR AFFILIATE) WHO BECOMES A TRANSFEREE AFTER THE ACQUIRING PERSON
     BECOMES SUCH, OR (3) UNDER CERTAIN CIRCUMSTANCES, A TRANSFEREE OF AN
     ACQUIRING PERSON (OR OF ANY SUCH ASSOCIATE OF AFFILIATE) WHO BECOMES A
     TRANSFEREE BEFORE OR CONCURRENTLY WITH THE ACQUIRING PERSON BECOMING SUCH,
     SHALL BECOME NULL AND VOID.

                                RIGHT CERTIFICATE

                         PATRIOT NATIONAL BANCORP, INC.

     This certifies that _________________________, or registered assigns, is
the registered owner of the number of Rights set forth above, each of which
entitles the owner thereof, subject to the terms, provisions and conditions of
the Rights Agreement, dated as of April 19, 2004 (the "Rights Agreement"),
between PATRIOT NATIONAL BANCORP, INC., a Connecticut corporation (the
"Company"), and REGISTRAR AND TRANSFER COMPANY, a New Jersey corporation (the
"Rights Agent"), to purchase from the Company at any time after the Distribution
Date (as such term is defined in the Rights Agreement) and prior to 5:00 p.m.
(Eastern time) on April 19, 2014 (unless such date is extended prior thereto by
the Board of Directors) at the office or offices of the Rights Agent designated
far such purpose, or its successors as Rights Agent, one fully paid,
non-assessable share of Common Stock (the "Common Stock") of the Company, at a
cash purchase price of $7.36 per share (the "Purchase Price"), upon presentation
and surrender of this Right Certificate with the Form of Election to Purchase
and the related Certificate on the reverse hereof duly executed. The number of
Rights evidenced by this Right Certificate (and the number of shares which may
be purchased upon exercise thereof) set forth above, and the Purchase Price per
share set forth above, are the number and Purchase Price as of April 19, 2004.

<Page>

     Upon the occurrence of a Section 11(a) (ii) Event (as such term is defined
in the Rights Agreement), if the Rights evidenced by this Right Certificate are
beneficially owned by (i) an Acquiring Person or an Affiliate or Associate of
any such Acquiring Person (as such terms are defined in the Rights Agreement),
(ii) a transferee of an Acquiring Person (or of any such Affiliate or Associate)
who becomes a transferee after the Acquiring Person becomes such), or (iii)
under certain circumstances specified in the Rights Agreement, a transferee of
an Acquiring Person (or of any such Affiliate or Associate) who becomes a
transferee before or concurrently with the Acquiring Person becoming such), such
Rights shall become null and void and no holder of this Right Certificate shall
have any right with respect to such Rights from and after the occurrence of such
Section 11(a) (ii) Event.

     As provided in the Rights Agreement, the Purchase Price and the number and
kind of shares of Common Stock or other securities which may be purchased upon
the exercise of the Rights evidenced by this Right Certificate are subject to
modification and adjustment upon the happening of certain events.

     This Right Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates, which
limitations of rights include the temporary suspension of the exercisability of
such Rights under the specific circumstances set forth in the Rights Agreement.
Copies of the Rights Agreement are on file at the above-mentioned office of the
Rights Agent and are also available upon written request to the Company.

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

     Subject to the provisions of the Rights Agreement, the Rights evidenced by
this Certificate (i) may be redeemed by the Company at its option at a
redemption price of $ .001 per Right or (ii) may be exchanged by the Company, at
its option, for shares of the Company's Common Stock, par value $2.00 per share
(or, in certain circumstances, Common Stock Equivalents (as such term is defined
in the Rights Agreement).

     No fractional shares of Common Stock will be issued upon the exercise of
any Right or Rights evidenced hereby, but in lieu thereof a cash payment will be
made, as provided in the

<Page>

Rights Agreement.

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

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

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

ATTEST:                               PATRIOT NATIONAL BANCORP, INC.

--------------------------            -----------------------------
Secretary                             Name:

(Seal)

Countersigned:

[-------------------------]

---------------------------
as Rights Agent

By -------------------------
     Authorized Signature

<Page>

                   [FORM OF REVERSE SIDE OF RIGHT CERTIFICATE]

                               FORM OF ASSIGNMENT

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

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

Dated: ______________, 20_.

                                            -----------------------------
Signature Guaranteed:                       Signature

<Page>

             [FORM OF REVERSE SIDE OF RIGHT CERTIFICATE, CONTINUED]

                            CERTIFICATE OF ASSIGNMENT

     The undersigned hereby certifies by checking the appropriate boxes that:

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

     (2) after due inquiry and to the best knowledge of the undersigned, the
Rights evidenced by this Right Certificate _____ are/ _____ are not being sold,
assigned and transferred to a Person who is an Acquiring Person, an Affiliate or
Associate of an Acquiring Person or a nominee of any such Acquiring Person,
Affiliate or Associate.

Dated: ____________, 20__             ----------------------------
                                      Signature

Signature Guaranteed:

                                     NOTICE

     THE SIGNATURES TO THE FOREGOING ASSIGNMENT AND CERTIFICATE MUST CORRESPOND
TO THE NAME AS WRITTEN UPON THE FACE OF THIS RIGHT CERTIFICATE IN EVERY
PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER.

<Page>

                          FORM OF ELECTION TO PURCHASE
                 (To be executed if holder desires to exercise
                  Rights represented by the Right Certificate.)

To:  Patriot National Bancorp, Inc.

     The undersigned hereby irrevocably elects to exercise ___________________
Rights represented by this Right Certificate to purchase the shares at Common
Stock issuable upon the exercise of the Rights (or such other securities of the
Company or of any other person which may be issuable upon the exercise of the
Rights) and requests that certificates for such shares be issued in the name of
and delivered to:

Please insert social security or other identifying number: ____________________

________________________________________________________________________________
                         (Please print name and address)

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

Please insert social security or other identifying number: ____________________

________________________________________________________________________________
                         (Please print name and address)

Dated: _________________, 20__.

                                        ---------------------------------
                                               Signature

Signature Guaranteed:

<Page>

                      CERTIFICATE FOR ELECTION TO PURCHASE

     The undersigned hereby certifies by checking the appropriate boxes that:

     (1) the Rights evidenced by this Right Certificate ____ are/ ____ are not
being exercised by or on behalf of a Person who is or was an Acquiring Person or
an Affiliate or Associate of any such Acquiring Person (as such terms are
defined in the Rights Agreement);

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

Dated: ___________, 20__.                     -----------------------------
                                              Signature

Signature Guaranteed:

                                     NOTICE

THE SIGNATURE TO THE FOREGOING ELECTION TO PURCHASE AND CERTIFICATE MUST
CORRESPOND TO THE NAME AS WRITTEN UPON THE FACE OF THIS RIGHT CERTIFICATE IN
EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER.

<Page>

                                    EXHIBIT B

                        PATRIOT NATIONAL BANCORP, INC.
                   SUMMARY OF RIGHTS TO PURCHASE COMMON SHARES

     On April 15, 2004, the Board of Directors of Patriot National Bancorp, Inc.
(the "Company") declared, effective as of April 19, 2004, a dividend
distribution of one Right for each outstanding share of Common Stock of the
Company. The dividend is payable on April 29, 2004 to the stockholders of record
as of the close of business on such date (the "Record Date"). Each Right
entitles the registered holder to purchase from the Company one share of the
Company's Common Stock, $2.00 par value (the "Common Stock"), at a price of
$7.36 (the "Purchase Price"), subject to adjustment. The description and terms
of the Rights are set forth in a Rights Agreement, dated as of April 19, 2004
(the "Rights Agreement"), between the Company and Registrar and Transfer Company
(the "Rights Agent").

      The Rights will be evidenced, with respect to any of the Company's Common
Stock certificates outstanding as of the Record Date, by such Common Stock
certificate and this Summary until the earliest of (i) the tenth Business Day
after a public announcement that a person or group of affiliated or associated
persons acquired, or obtained the right to acquire, beneficial ownership of 15%
or more of the outstanding shares of Common Stock of the Company (an "Acquiring
Person"); (ii) the tenth Business Day (or such later day as may be determined by
action of the Board of Directors of the Company prior to such time as any person
becomes an Acquiring Person) after the date of the commencement of a tender or
exchange offer by any person (other than the Company) if, upon consummation such
person would be an Acquiring Person; and (iii) the tenth Business Day (or such
later day as may be determined by action of the Board of Directors of the
Company prior to such time as any person becomes an Acquiring Person) after the
filing by any Person (other than the Company) of a registration statement under
the Securities Act of 1933, as amended, with respect to a contemplated exchange
offer to acquire (when added to any shares as to which such person is the
beneficial owner immediately prior to such filing) beneficial ownership of 15%
or more of the issued and outstanding shares of Common Stock (the earliest of
such dates being called the "Distribution Date"). The date of announcement of
the existence of an Acquiring Person referred to in clause (i) above is
hereinafter referred to as the "Stock Acquisition Date."

     The Rights Agreement provides that, until the Distribution Date, the Rights
will be transferred with and only with the Company's Common Stock. New Common
Stock certificates issued after the Record Date upon transfer or new issuance of
the Company's Common Stock will contain a notation incorporating the Rights
Agreement by reference. Until the Distribution Date, the surrender for transfer
of any of the Common Stock certificates outstanding as of the Record Date will
also constitute the transfer of the Rights associated with the Common Stock

<Page>

represented by such certificate and the number of Rights associated with each
share of Common Stock shall be proportionately adjusted in the event of any
dividend in Common Stock on the Common Stock or subdivision, combination or
reclassification of the Common Stock. As soon as practicable following the
Distribution Date, separate certificates evidencing the Rights ("Right
Certificates") will be mailed to holders of record of the Company's Common Stock
as of the close of business on the Distribution Date and such separate
certificates alone will evidence Rights.

     The Rights are not exercisable until the Distribution Date. The Rights will
expire on April 19, 2014, unless earlier redeemed or exchanged by the Company as
described below.

     The Purchase Price payable, and the number of shares of Common Stock or
other securities or property issuable, upon exercise of the Rights are subject
to adjustment from time to time to prevent dilution in the event of a stock
dividend on, or a subdivision, combination or reclassification of, the Common
Stock. The Company has agreed to reserve and keep available out of its currently
authorized and unissued shares of Common Stock the number of shares of Common
Stock that will be sufficient to permit to the maximum extent possible the
exercise of all outstanding Rights. Since the Company currently does not have
such number of shares available to place in reserve, the Company has undertaken
to use its best efforts to amend its Certificate of Incorporation to increase
the authorized number of shares to an amount sufficient to permit the exercise
of all outstanding Rights. In the event the Company does not receive shareholder
approval to amend its Certificate of Incorporation, the Rights Agreement
provided that each holder of a Right shall, in the discretion of the Board of
Directors, have a right to receive, upon exercise of the Rights, such number of
Common Stock Equivalents, as defined in the Rights Agreement, or the maximum
number of shares of Common Stock available for issuance to such holder at a
reduced Purchase Price, which reflects a per share Purchase Price of 50% of
current market value as determined in the Rights Agreement.

     In the event that any Person becomes an Acquiring Person, then ten Business
Days after such date, each holder of a Right, other than the Acquiring Person
(whose Rights would thereafter be null and void) and certain of its transferees,
would thereafter have the right to receive upon exercise that number of shares
of the Company's Common Stock having a market value of twice the exercise price
of the Right (i.e., a 50% discount to market value); if insufficient share are
available to satisfy the Right, the Company may substitute other consideration,
as appropriate, or make an adjustment to the exercise price of the Right to
achieve substantially the intended economic benefit to shareholders (other than
the Acquiring Person) of the 50% discount.

     In the event that, following the earlier of the Distribution Date and the
Stock Acquisition Date, the Company (i) merges with or into another Person and
the Company either is not the surviving corporation or is the surviving
corporation but all of its Common Stock is exchanged for cash or securities of
the other Person, or (ii) sells more than 50% of its assets, cash flow or
earning power to any Person, then each holder of a Right, other than an
Acquiring Person (whose Rights would be null and void), would have the right to
receive, upon the exercise thereof at the then current exercise price of the
Right, that number of shares of common stock of the surviving company (or its
parent company or other controlling entity) which at the time of such
transaction would have a market value of four times the exercise price of the
Right.

                                      -42-
<Page>

     With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments require an adjustment of at least 1% in
such Purchase Price. No fractional shares of Common Stock will be issued and, in
lieu thereof, if necessary, an adjustment in cash will be made based on the
market price of the Common Shares on the last trading date prior to the date of
exercise.

     At any time prior to the earlier of (i) the tenth Business Day after the
Stock Acquisition Date or (ii) April 19, 2014, the Company may redeem the Rights
in whole, but not in part, at a price of $ .001 per Right (payable in cash,
shares of Common Stock or other consideration), appropriately adjusted to
reflect any stock split, stock dividend or similar transaction occurring after
the date hereof (the "Redemption Price"). Immediately upon the action of the
Company electing to redeem the Rights, the right to exercise the Rights will
terminate and the only right of the holders of Rights will be to receive the
Redemption Price.

     In the event that any Person becomes an Acquiring Person, the Company may
exchange all or part of the Rights (other than those held by the Acquiring
Person) for Common Stock at an exchange ratio of one share of Common Stock per
Right (the "Exchange Ratio"), appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring after the date hereof.
Immediately upon the action of the Company electing to exchange the Rights, the
right to exercise the Rights will terminate and the only right of the holders of
Rights will be to receive that number of shares of Common Stock determined by
reference to the Exchange Ratio.

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

     The terms of the Rights may be amended by the Company and the Rights Agent,
provided that following the Distribution Date, the amendment does not materially
adversely affect the interests of the holders of the Rights (other than an
Acquiring Person) and provided that no amendment shall be made which decreases
the Redemption Price.

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

                                      -43-

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