Document:

exv4w1

Exhibit 4.1

CERTIFICATE OF DESIGNATIONS

of

SERIES A JUNIOR PARTICIPATING

PREFERRED STOCK

of

HARRIS STRATEX NETWORKS, INC.

(Pursuant to Section 151 of the

Delaware General Corporation Law)

     Harris Stratex Networks, Inc., a corporation organized and existing under the General
Corporation Law of the State of Delaware (hereinafter called the “Corporation”), DOES
HEREBY CERTIFY that pursuant to the authority vested in the Board of Directors of the Corporation
(hereinafter called the “Board of Directors” or the “Board”) by the Amended and
Restated Certificate of Incorporation of the Corporation, and in accordance with the provisions of
Section 151 of the General Corporation Law of the State of Delaware, the Board of Directors on
April 20, 2009 adopted a resolution providing for the authorization of a series of preferred stock,
as follows:

     RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors of
the Corporation in accordance with the provisions of the Amended and Restated Certificate of
Incorporation, the Board of Directors hereby creates a series of preferred stock, par value $0.01
per share (the “Series A Junior Participating Preferred Stock”), of the Corporation and
hereby states the designation and number of shares, and fixes the relative rights, preferences, and
limitations thereof as follows:

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

     Section 2. Dividends and Distributions. Subject to the rights of the holders of any
shares of any series of preferred stock (or any similar stock) ranking prior and superior to the
Series A Junior Participating Preferred Stock with respect to dividends, the holders of shares of
Series A Junior Participating Preferred Stock, in preference to the holders of common stock, par
value $0.01 per share (the “Common Stock”), of the Corporation, and of any other junior
stock, shall be entitled to receive, when, as and if declared by the Board of Directors out of
funds legally available for the purpose, quarterly dividends payable in cash on the first day of
March, June, September and December in each year (each such date being referred to herein as a
“Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date
after the first issuance of a share or fraction of a share of Series A

 

-2-

Junior Participating Preferred Stock, in an amount per share (rounded to the nearest cent)
equal to the greater of (a) $1.00 or (b) subject to the provision for adjustment hereinafter set
forth, one thousand (1,000) times the aggregate per share amount of all cash dividends, and one
thousand (1,000) times the aggregate per share amount (payable in kind) of all non-cash dividends
or other distributions, other than a dividend payable in shares of Common Stock or a subdivision of
the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common
Stock since the immediately preceding Quarterly Dividend Payment Date or, with respect to the first
Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of
Series A Junior Participating Preferred Stock. In the event the Corporation shall at any time
declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a
subdivision or combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the amount to which
holders of shares of Series A Junior Participating Preferred Stock were entitled immediately prior
to such event under clause (b) of the preceding sentence shall be adjusted by multiplying such
amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event.

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

     Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Junior
Participating Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of
issue of such shares, unless the date of issue of such shares is prior to the record date for the
first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue
from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment
Date or is a date after the record date for the determination of holders of shares of Series A
Junior Participating Preferred Stock entitled to receive a quarterly dividend and before such
Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and
be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not
bear interest. Dividends paid on the shares of Series A Junior Participating Preferred Stock in an
amount less than the total amount of such dividends at the time accrued and payable on such shares
shall be allocated pro rata on a share-by-share basis among all such shares at the time
outstanding. The Board of Directors may fix a record date for the determination of holders of
shares of Series A Junior Participating Preferred Stock entitled to receive payment of a dividend
or distribution declared thereon, which record date shall be not more than 60 days prior to the
date fixed for the payment thereof.

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

     Subject to the provision for adjustment hereinafter set forth, each share of Series A Junior
Participating Preferred Stock shall entitle the holder thereof to one thousand votes on all matters
submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at
any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or
effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a
greater or

 

-3-

lesser number of shares of Common Stock, then in each such case the number of votes per share
to which holders of shares of Series A Junior Participating Preferred Stock were entitled
immediately prior to such event shall be adjusted by multiplying such number by a fraction, the
numerator of which is the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were outstanding
immediately prior to such event.

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

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

     Section 4. Certain Restrictions. Whenever quarterly dividends or other dividends or
distributions payable on the Series A Junior Participating Preferred Stock as provided in Section 2
are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or
not declared, on shares of Series A Junior Participating Preferred Stock outstanding shall have
been paid in full, the Corporation shall not:

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

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

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

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

 

-4-

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

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

     Section 6. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution
or winding up of the Corporation, no distribution shall be made (1) to the holders of shares of
stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the
Series A Junior Participating Preferred Stock unless, prior thereto, the holders of shares of
Series A Junior Participating Preferred Stock shall have received $1,000.00 per share, plus an
amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to
the date of such payment, provided that the holders of shares of Series A Junior Participating
Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the
provision for adjustment hereinafter set forth, equal to one thousand (1,000) times the aggregate
amount to be distributed per share to holders of shares of Common Stock, or (2) to the holders of
shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or
winding up) with the Series A Junior Participating Preferred Stock, except distributions made
ratably on the Series A Junior Participating Preferred Stock and all such parity stock in
proportion to the total amounts to which the holders of all such shares are entitled upon such
liquidation, dissolution or winding up. In the event the Corporation shall at any time declare or
pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number
of shares of Common Stock, then in each such case the aggregate amount to which holders of shares
of Series A Junior Participating Preferred Stock were entitled immediately prior to such event
under the proviso in clause (1) of the preceding sentence shall be adjusted by multiplying such
amount by a fraction the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event.

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

 

-5-

denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

     Section 8. No Redemption. The shares of Series A Junior Participating Preferred
Stock shall not be redeemable.

     Section 9. Rank. The Series A Junior Participating Preferred Stock shall rank, with
respect to the payment of dividends and the distribution of assets, junior to all series of any
other class of the Corporation’s preferred stock.

     Section 10. Amendment. The Amended and Restated Certificate of Incorporation of the
Corporation shall not be amended in any manner which would materially alter or change the powers,
preferences or special rights of the Series A Junior Participating Preferred Stock so as to affect
them adversely without the affirmative vote of the holders of at least a majority of the
outstanding shares of Series A Junior Participating Preferred Stock, voting together as a single
class.

[remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the Company by
its Chief Executive Officer and President, this 20th day of April 2009.

	 	 	 	 	 
	HARRIS STRATEX NETWORKS, INC.

 	 	 
	/s/ Harald J. Braun
 	 	 
	Harald J. Braun 	 	 
	Chief Executive Officer and Presidentexv4w2

Exhibit 4.2

HARRIS STRATEX NETWORKS, INC.

and

MELLON INVESTOR SERVICES LLC

as Rights Agent

Rights Agreement

Dated as of April 20, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	SECTION 1.

	 	CERTAIN DEFINITIONS
	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 2.

	 	APPOINTMENT OF RIGHTS AGENT
	 	 	4	 
	 
	 	 	 	 	 	 
	SECTION 3.

	 	ISSUE OF RIGHT CERTIFICATES
	 	 	4	 
	 
	 	 	 	 	 	 
	SECTION 4.

	 	FORM OF RIGHT CERTIFICATES
	 	 	6	 
	 
	 	 	 	 	 	 
	SECTION 5.

	 	COUNTERSIGNATURE AND REGISTRATION
	 	 	6	 
	 
	 	 	 	 	 	 
	SECTION 6.

	 	TRANSFER, SPLIT UP, COMBINATION AND EXCHANGE OF RIGHT CERTIFICATES; MUTILATED, DESTROYED, LOST OR STOLEN RIGHT CERTIFICATES
	 	 	7	 
	 
	 	 	 	 	 	 
	SECTION 7.

	 	EXERCISE OF RIGHTS; PURCHASE PRICE; EXPIRATION DATE OF RIGHTS
	 	 	7	 
	 
	 	 	 	 	 	 
	SECTION 8.

	 	CANCELLATION AND DESTRUCTION OF RIGHT CERTIFICATES
	 	 	8	 
	 
	 	 	 	 	 	 
	SECTION 9.

	 	AVAILABILITY OF PREFERRED SHARES
	 	 	9	 
	 
	 	 	 	 	 	 
	SECTION 10.

	 	PREFERRED SHARES RECORD DATE
	 	 	9	 
	 
	 	 	 	 	 	 
	SECTION 11.

	 	ADJUSTMENT OF PURCHASE PRICE, NUMBER OF SHARES OR NUMBER OF RIGHTS
	 	 	9	 
	 
	 	 	 	 	 	 
	SECTION 12.

	 	CERTIFICATE OF ADJUSTED PURCHASE PRICE OR NUMBER OF SHARES
	 	 	14	 
	 
	 	 	 	 	 	 
	SECTION 13.

	 	CONSOLIDATION, MERGER OR SALE OR TRANSFER OF ASSETS OR EARNING POWER
	 	 	15	 
	 
	 	 	 	 	 	 
	SECTION 14.

	 	FRACTIONAL RIGHTS AND FRACTIONAL SHARES
	 	 	18	 
	 
	 	 	 	 	 	 
	SECTION 15.

	 	RIGHTS OF ACTION
	 	 	19	 
	 
	 	 	 	 	 	 
	SECTION 16.

	 	AGREEMENT OF RIGHT HOLDERS
	 	 	19	 
	 
	 	 	 	 	 	 
	SECTION 17.

	 	RIGHT CERTIFICATE HOLDER NOT DEEMED A STOCKHOLDER
	 	 	20	 
	 
	 	 	 	 	 	 
	SECTION 18.

	 	CONCERNING THE RIGHTS AGENT
	 	 	20	 
	 
	 	 	 	 	 	 
	SECTION 19.

	 	MERGER OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT
	 	 	21	 
	 
	 	 	 	 	 	 
	SECTION 20.

	 	DUTIES OF RIGHTS AGENT
	 	 	21	 
	 
	 	 	 	 	 	 
	SECTION 21.

	 	CHANGE OF RIGHTS AGENT
	 	 	23	 

i

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	SECTION 22.

	 	ISSUANCE OF NEW RIGHT CERTIFICATES
	 	 	24	 
	 
	 	 	 	 	 	 
	SECTION 23.

	 	REDEMPTION
	 	 	24	 
	 
	 	 	 	 	 	 
	SECTION 24.

	 	EXCHANGE
	 	 	25	 
	 
	 	 	 	 	 	 
	SECTION 25.

	 	NOTICE OF CERTAIN EVENTS
	 	 	26	 
	 
	 	 	 	 	 	 
	SECTION 26.

	 	NOTICES
	 	 	26	 
	 
	 	 	 	 	 	 
	SECTION 27.

	 	SUPPLEMENTS AND AMENDMENTS
	 	 	27	 
	 
	 	 	 	 	 	 
	SECTION 28.

	 	SUCCESSORS
	 	 	27	 
	 
	 	 	 	 	 	 
	SECTION 29.

	 	DETERMINATIONS AND ACTIONS BY THE BOARD OF DIRECTORS OF THE COMPANY
	 	 	27	 
	 
	 	 	 	 	 	 
	SECTION 30.

	 	BENEFITS OF THIS RIGHTS AGREEMENT
	 	 	27	 
	 
	 	 	 	 	 	 
	SECTION 31.

	 	SEVERABILITY
	 	 	28	 
	 
	 	 	 	 	 	 
	SECTION 32.

	 	GOVERNING LAW
	 	 	28	 
	 
	 	 	 	 	 	 
	SECTION 33.

	 	COUNTERPARTS
	 	 	28	 
	 
	 	 	 	 	 	 
	SECTION 34.

	 	DESCRIPTIVE HEADINGS
	 	 	28	 
	 
	 	 	 	 	 	 
	SECTION 35.

	 	FORCE MAJEURE
	 	 	28	 

	 	 	 
	Exhibit A

	 	Form of Certificate of Designations of Series A Junior Participating Preferred Stock
	Exhibit B

	 	Form of Right Certificate
	Exhibit C

	 	Summary of Rights to Purchase Preferred Shares

ii

 

RIGHTS AGREEMENT

          Rights Agreement, dated as of April 20, 2009, by and between Harris Stratex Networks, Inc., a
Delaware corporation (the “Company”), and Mellon Investor Services LLC, a New Jersey
limited liability company (the “Rights Agent”).

          The Board of Directors of the Company has authorized and directed the issuance, and declared a
dividend, of one preferred share purchase right (a “Right”) for each Common Share
outstanding as of the close of business on May 4, 2009 (the “Record Date”). Each Right
represents the right to purchase one one-thousandth of a Preferred Share, upon the terms and
subject to the conditions set forth in the form of Certificate of Designations attached hereto as
Exhibit A authorized by the Board of Directors of the Company on April 20, 2009 upon the
terms and subject to the conditions hereinafter set forth. The Board of Directors of the Company
has further authorized and directed the issuance of one Right with respect to each Common Share
that shall become outstanding between the Record Date and the earliest of the Distribution Date,
the Redemption Date and the Expiration Date.

          Accordingly, 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 Rights Agreement, the following
terms have the meanings indicated:

          (a) “Acquiring Person” shall mean any Person who or which, together with its
Affiliates and Associates, shall be the Beneficial Owner of 15% or more of the Common Shares then
outstanding, but shall not include (i) the Company, any Subsidiary of the Company, any employee
benefit plan of the Company or of any Subsidiary of the Company, or any Person holding Common
Shares for or pursuant to the terms of any such plan, (ii) any Person who or which becomes the
Beneficial Owner of 15% or more of the Common Shares then outstanding as the result of a reduction
in the outstanding Common Shares resulting from acquisition of Common Shares by the Company, unless
and until such Person becomes the Beneficial Owner of any additional Common Shares, other than
pursuant to a stock dividend or stock split, (iii) any Person who or which the Board of Directors
of the Company determines, in good faith, became an Acquiring Person inadvertently, if such Person
divests as promptly as practicable a sufficient number of Common Shares so that such Person would
no longer be an Acquiring Person, (iv) any Person who or which the Board of Directors of the
Company determines, prior to the time such Person would otherwise be an Acquiring Person, should be
exempted from the definition of Acquiring Person, provided, however, that the Board of Directors
may make such exemption subject to such conditions, if any, which the Board of Directors may
determine, or (v) Harris Corporation, provided that the foregoing exclusion of Harris Corporation
shall apply solely during the period from the initial issuance of the Rights until the first date
(the “Harris Spin-Off Date”) on which Harris Corporation no longer holds shares of Class A
common stock and/or Class B common stock constituting 15% or more of the aggregate number of the
outstanding shares of common stock, par value $0.01 per share, of the Company of all classes.

          (b) “Affiliate” and “Associate” shall have the respective meanings ascribed to
such terms in Rule 12b-2 under the Exchange Act.

          (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 beneficially owns,
directly or indirectly;

 

-2-

               (ii) which such Person or any of such Person’s Affiliates or Associates 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 (other than customary agreements with and between
underwriters and selling group members with respect to a bona fide public offering of securities),
or upon the exercise of conversion rights, exchange rights, rights (other than the Rights),
warrants or options, or otherwise, provided, however, that a Person shall not be deemed the
Beneficial Owner of, or to Beneficially Own, securities tendered pursuant to a tender or exchange
offer made by or on behalf of such Person or any of such Person’s Affiliates or Associates until
such tendered securities are accepted for purchase or exchange or (B) the right to vote pursuant to
any agreement, arrangement or understanding, provided, however, that a Person shall not be deemed
the Beneficial Owner of, or to Beneficially Own, any security if the agreement, arrangement or
understanding to vote such security (1) arises solely from a revocable proxy or consent given to
such Person in response to a public proxy or consent solicitation made pursuant to, and in
accordance with, the applicable rules and regulations promulgated under the Exchange Act and (2) is
not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor
report); or

               (iii) which are beneficially owned, directly or indirectly, by any other Person with which
such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or
understanding (other than customary agreements with and between underwriters and selling group
members with respect to a bona fide public offering of securities) for the purpose of acquiring,
holding, voting (except to the extent contemplated by the proviso to Section 1(c)(ii)(B))
or disposing of any securities of the Company; provided, however, that for purposes of determining
Beneficial Ownership of securities under this Rights Agreement, officers and directors of the
Company or, until the Harris Spin-Off Date, Harris Corporation, shall not, solely by reason of
their status as such, constitute a group (notwithstanding that they may be Associates of one
another or may be deemed to constitute a group for purposes of Section 13(d) of the Exchange Act),
and no officer or director of the Company or, until the Harris Spin-Off Date, Harris Corporation,
shall, solely by reason of his or her status as such, be deemed to own shares owned by another
officer or director of the Company or Harris Corporation (notwithstanding that they may be
Associates of one another or may be deemed to be members of a group for purposes of Section 13(d)
of the Exchange Act).

               (iv) Notwithstanding anything in this definition of Beneficial Ownership to the contrary, the
phrase “then outstanding,” when used with reference to a Person’s Beneficial Ownership of
securities of the Company, shall mean the number of such securities then issued and outstanding
together with the number of such securities not then actually issued and outstanding which such
Person would be deemed to Beneficially Own hereunder.

          (d) “Business Day” shall mean any day other than a Saturday, a Sunday, or a day on
which banking institutions in New York, New York, New Jersey or San Francisco, California 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., San Francisco,
California time, on such date; provided, however, that, if such date is not a Business Day, it
shall mean 5:00 p.m., San Francisco, California time, on the next succeeding Business Day.

          (f) “Common Shares” shall mean the shares of Class A common stock, par value $0.01 per
share, of the Company, except that “Common Shares” when used with reference to any Person other
than the Company shall mean the capital stock (or equity interest) with the greatest voting power
of such other Person or, if such other Person is a Subsidiary of another Person, the Person or
Persons which ultimately control such first-mentioned Person.

 

-3-

          (g) “Company” shall have the meaning set forth in the preamble hereof.

          (h) “current per share market price” shall have the meaning set forth in Section
11(d) hereof.

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

          (j) “equivalent preferred shares” shall have the meaning set forth in Section
11(b) hereof.

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

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

          (m) “Expiration Date” shall mean the Close of Business on January 20, 2010.

          (n) “NASDAQ” shall mean The Nasdaq Stock Market LLC.

          (o) “NYSE” shall mean New York Stock Exchange LLC.

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

          (q) “Preferred Shares” shall mean shares of Series A Junior Participating Preferred
Stock, par value $0.01 per share, of the Company having the rights and preferences set forth in the
form of Certificate of Designations of Series A Junior Participating Preferred Stock attached
hereto as Exhibit A.

          (r) “Purchase Price” shall initially be $40.00 for each one one-thousandth of a
Preferred Share purchasable pursuant to the exercise of a Right, and shall be subject to adjustment
from time to time as provided in Sections 11 or 13 hereof.

          (s) “Record Date” shall have the meaning set forth in the second paragraph hereof.

          (t) “Redemption Date” shall mean the time at which the Rights are redeemed as provided
in Section 23 hereof.

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

          (v) “Right” shall have the meaning set forth in the second paragraph hereof.

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

          (x) “Rights Agent” shall have the meaning set forth in the preamble hereof.

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

          (z) “Stock Acquisition Date” shall mean the first date of public announcement
(including, without limitation, by a filing under the Exchange Act) by the Company or an Acquiring
Person that an Acquiring Person has become such or such earlier date as a majority of the Board of
Directors of the Company shall become aware of the existence of an Acquiring Person.

 

-4-

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

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

          Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent
to act as rights agent for the Company in accordance with the express 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, upon ten (10) days’ prior written
notice to the Rights Agent. The Rights Agent shall have no duty to supervise, and shall in no event
be liable for, the acts or omissions of any such co-rights agent.

          Section 3. Issue of Right Certificates.

          (a) Until the earlier of (i) the Close of Business on the tenth (10th) Business Day
following the Stock Acquisition Date or (ii) the Close of Business on the tenth (10th)
Business Day (or such later date, if any, as the Board of Directors may determine prior to such
time as any Person becomes an Acquiring Person) after the date that any Person (other than the
Company, any Subsidiary of the Company, any employee benefit plan of the Company or of any
Subsidiary of the Company or any Person holding Common Shares for or pursuant to the terms of any
such plan) commences, or after the first public announcement of the intention of any Person (other
than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or of any
Subsidiary of the Company or any Person holding Common Shares for or pursuant to the terms of any
such plan) to commence, a tender or exchange offer the consummation of which would result in any
Person becoming the Beneficial Owner of 15% or more of the outstanding Common Shares, in each case,
including any such date which is after the date of this Rights Agreement and prior to the issuance
of the Rights (the earlier of such dates being herein referred to as the “Distribution
Date”), (A) the Rights will be evidenced (subject to the provisions of Section 3(c)
hereof) by the balances indicated in the book-entry account system of the transfer agent for the
Common Shares registered in the names of the holders thereof (which Common Shares shall also be
deemed to represent Right Certificates) or, in the case of certificated shares, certificates for
Common Shares registered in the names of the holders thereof (which certificates shall also be
deemed to be Right Certificates) and not by separate Right Certificates and (B) the right to
receive Right Certificates will be transferable only in connection with the transfer of Common
Shares. As soon as practicable after the Distribution Date, the Company will prepare and execute,
the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights
Agent will, if requested and provided with all necessary information, send) by first-class,
insured, postage-prepaid mail, to each record holder of Common Shares as of the Close of Business
on the Distribution Date (other than the Person(s) specified in the last sentence of Section
11(a)(ii) hereof), at the address of such holder shown on the records of the Company or the
transfer agent or registrar for the Common Shares, a Right Certificate, in substantially the form
of Exhibit B hereto (a “Right Certificate”), evidencing one Right for each Common
Share so held. As of and after the Distribution Date, the Rights will be evidenced solely by such
Right Certificates, and the Rights will be transferable only separately from the transfer of the
Common Shares. The Company shall promptly notify the Rights Agent in writing upon the occurrence
of the Distribution Date, and, if such notification is given orally, the Company shall confirm the
same in writing on or prior to the Business Day next following. Until such notice is received by
the Rights Agent, the Rights Agent may presume conclusively for all purposes that the Distribution
Date has not occurred.

          (b) The Company will make available, as promptly as practicable following the Record Date, a
Summary of Rights to Purchase Preferred Shares, in substantially the form of Exhibit C
hereto, to any holder of Rights who may so request from time to time prior to the Expiration Date.
With respect to

 

-5-

certificates for Common Shares outstanding as of the Record Date, until the Distribution Date
(or, if earlier, any Redemption Date or the Expiration Date), the Rights will be evidenced by the
balances indicated in the book-entry account system of the transfer agent for the Common Shares or,
in the case of certificated shares, such certificates and the registered holders of the Common
Shares shall also be the registered holders of the associated Rights. Until the Distribution Date
(or, if earlier, any Redemption Date or the Expiration Date), the surrender for transfer of any
certificate for Common Shares in respect of which Rights have been issued shall also constitute the
transfer of the Rights associated with such Common Shares.

          (c) Rights shall be issued in respect of all Common Shares which are issued (whether
originally issued or from the Company’s treasury) after the Record Date but prior to the earliest
of the Distribution Date, the Redemption Date or the Expiration Date and shall be evidenced by
legends in substantially the following forms:

               (i) Confirmation and account statements sent to holders of Common Shares in book-entry form
(which Common Shares shall also be deemed to represent certificates for Rights) shall bear a legend
in substantially the following form:

“The shares of Class A Common Stock, par value $0.01 per share, of Harris Stratex
Networks, Inc., (the “Company”) entitle the holder thereof to certain rights as set
forth in a Rights Agreement between the Company and Mellon Investor Services LLC, as
the Rights Agent, dated as of April 20, 2009 (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 the shares to which this statement
relates. The Company will mail to the holder of shares to which this statement
relates a copy of the Rights Agreement without charge promptly after receipt of a
written request therefor. Under certain circumstances, as set forth in the Rights
Agreement, rights issued to an any Person who becomes an Acquiring Person (as
defined in the Rights Agreement), including such rights held by a subsequent holder,
may be null and void.”

With respect to Common Shares in book-entry form for which there has been sent a confirmation or
account statement containing the foregoing legend, until the Distribution Date (or, if earlier, any
Redemption Date or the Expiration Date), the Rights associated with the Common Shares shall be
evidenced by such Common Shares alone and registered holders of Common Shares shall also be the
registered holders of the associated Rights, and the transfer of any of such Common Shares shall
also constitute the transfer of the Rights associated with the Common Shares represented thereby.
In the event that the Company purchases or acquires any Common Shares after the Record Date but
prior to the Distribution Date, any Rights associated with such Common Shares shall be deemed
cancelled and retired so that the Company shall not be entitled to exercise any Rights associated
with the Common Shares which are no longer outstanding.

               (ii) In the case of certificated shares, certificates representing such Common Shares shall
bear a legend in substantially the following form:

“This certificate also evidences and entitles the holder hereof to certain rights as
set forth in a Rights Agreement by and between Harris Stratex Networks, Inc. (the
“Company”) and Mellon Investor Services LLC, as the Rights Agent, dated as of April
20, 2009 (the “Rights Agreement”), the terms of which are hereby incorporated herein
by reference and a copy of which is on file at the principal offices of the Company.
Under

 

-6-

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 after receipt of a written request therefor. Under
certain circumstances, as set forth in the Rights Agreement, rights issued to any
Person who becomes an Acquiring Person (as defined in the Rights Agreement),
including such rights held by a subsequent holder, may become null and void.”

With respect to such certificates containing the foregoing legend, until the Distribution Date (or,
if earlier, any Redemption Date or the Expiration Date), the Rights associated with the Common
Shares represented by such certificates shall be evidenced by such certificates alone, and the
surrender for transfer of any such certificate shall also constitute the transfer of the Rights
associated with the Common Shares represented thereby. In the event that the Company purchases or
acquires any Common Shares after the Record Date but prior to the Distribution Date, any Rights
associated with such Common Shares shall be deemed cancelled and retired so that the Company shall
not be entitled to exercise any Rights associated with the Common Shares which are no longer
outstanding.

          Section 4. Form of Right Certificates. The Right Certificates (and the forms of
election to purchase Preferred Shares and of assignment to be printed on the reverse thereof) shall
be substantially the same as Exhibit B hereto and may have such marks of identification or
designation and such legends, summaries or endorsements printed thereon as the Company may deem
appropriate (but which do not affect the rights, duties or responsibilities of the Rights Agent)
and as are not inconsistent with the provisions of this Rights Agreement, or as may be required to
comply with any applicable law or with any rule or regulation made pursuant thereto or with any
rule or regulation of any stock exchange or automated quotation system on which the Rights may from
time to time be listed, or to conform to usage. Subject to the provisions of Sections 11
and 22 hereof, the Right Certificates shall entitle the holders thereof to purchase such
number of one one-thousandths of a Preferred Share as shall be set forth therein at the price per
one one-thousandth of a Preferred Share set forth therein, but the number of one one-thousandths of
a Preferred Share and the Purchase Price shall be subject to adjustment as provided herein.

          Section 5. Countersignature and Registration.

          (a) The Right Certificates shall be executed on behalf of the Company by its Chairman or Vice
Chairman of the Board of Directors, Chief Executive Officer, its President, or any of its Executive
Vice Presidents, either manually or by facsimile signature, and the Chief Financial Officer or
Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary of the Company,
either manually or by facsimile signature, and shall have affixed thereto the Company’s seal or a
facsimile thereof. 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 who
shall have signed any of the Right Certificates shall cease to be such officer of the Company
before countersignature by the Rights Agent and issuance and delivery by the Company, such Right
Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by
the Company with the same force and effect as though the Person who signed such Right Certificates
had not ceased to be such officer of the Company; and any Right Certificate may be signed on behalf
of the Company by any Person who, at the actual date of the execution of such Right Certificate,
shall be a proper 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, and receipt by the Rights Agent of notice to that effect
and all other relevant information referred to in Section 3(a), the Rights Agent will keep
or cause to be kept, at its office designated for such purpose, books for registration and transfer
of the Right

 

-7-

Certificates issued hereunder. Such books shall show the names and addresses of the respective
holders of the Right Certificates, the number of Rights evidenced on its face by each of the Right
Certificates and the date of each of the Right Certificates.

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

          (a) Subject to the provisions of Section 14 hereof, at any time after the Close of
Business on the Distribution Date, and at or prior to the Close of Business on the earlier of the
Redemption Date or the Expiration Date, any Right Certificate or Right Certificates (other than
Right Certificates representing Rights that have become null and void pursuant to Section
11(a)(ii) hereof or that have been exchanged pursuant to Section 24 hereof) may be
transferred, split up, combined or exchanged for another Right Certificate or Right Certificates
entitling the registered holder to purchase a like number of one one-thousandths of a Preferred
Share as the Right Certificate or Right Certificates surrendered then entitled such holder to
purchase. Any registered holder desiring to transfer, split up, combine or exchange any Right
Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent,
and shall surrender the Right Certificate or Right Certificates to be transferred, split up,
combined or exchanged at the office of the Rights Agent designated for such purpose. The Right
Certificates are transferable only on the registry books of the Rights Agent. Neither the Rights
Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer
of any such surrendered Right Certificate or Certificates until the registered holder thereof shall
have (i) properly completed and duly signed the certificate contained in the form of assignment set
forth on the reverse side of each such Right Certificate, (ii) provided such additional evidence of
the identity of the Beneficial Owner (or former Beneficial Owner) as the Company or the Rights
Agent shall reasonably request, and (iii) paid a sum sufficient to cover any tax or charge that may
be imposed in connection with any transfer, split up, combination or exchange of Right Certificates
as required by Section 9(b) hereof. Thereupon the Rights Agent shall, subject to
Section 7(e), Section 14 and Section 24 hereof, countersign and deliver to
the Person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so
requested, registered in such name or names as may be designated by the surrendering registered
holder. The Rights Agent shall have no duty or obligation to take any action under any section of
this Rights Agreement which requires the payment by a Rights holder of applicable taxes and/or
charges unless and until it is satisfied that all such taxes and/or charges have been paid. The
Rights Agent shall promptly forward any such sum collected by it to the Company or to such Persons
as the Company shall specify by written notice.

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

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

          (a) The registered holder of any Right Certificate may exercise the Rights evidenced thereby
(except as otherwise provided herein), in whole or in part, at any time after the Distribution
Date, upon surrender of the Right Certificate, with the form of election to purchase on the reverse
side thereof properly completed and duly executed, to the Rights Agent at the office of the Rights
Agent designated for such purpose, together with payment of the Purchase Price for each one
one-thousandth of a Preferred Share as to which the Rights are exercised, and an amount equal to
any tax or charge required to be paid

 

-8-

under Section 9(b) hereof, by certified check, cashier’s check, bank draft or money
order payable to the order of the Company, at or prior to the earliest of (i) the Expiration Date,
(ii) the Redemption Date or (iii) the time at which such Rights are exchanged as provided in
Section 24 hereof.

          (b) The Purchase Price 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 properly completed and duly executed, accompanied by payment of the Purchase
Price for the shares to be purchased and an amount equal to any applicable tax or charge required
to be paid by the holder of such Right Certificate in accordance with Section 9(b) hereof
by certified check, cashier’s check, bank draft or money order payable to the order of the Company,
subject to Section 20(h) hereof, the Rights Agent shall thereupon promptly (i) (A)
requisition from any transfer agent of the Preferred Shares certificates for the number of
Preferred Shares to be purchased and the Company hereby irrevocably authorizes any such transfer
agent to comply with all such requests or (B) requisition from the depositary agent depositary
receipts representing such number of one one-thousandths of a Preferred Share as are to be
purchased (in which case certificates for the Preferred Shares represented by such receipts shall
be deposited by the transfer agent of the Preferred Shares with such depositary agent) and the
Company hereby directs such depositary agent to comply with such request; (ii) when necessary,
requisition from the Company the amount of cash to be paid in lieu of issuance of fractional shares
in accordance with Section 14 hereof; (iii) promptly after receipt of such certificates or
depositary receipts, cause the same to be delivered to or upon the order of the registered holder
of such Right Certificate, registered in such name or names as may be designated by such holder;
and (iv) when necessary, after receipt, promptly deliver such cash to or upon the order of the
registered holder of such Right Certificate.

          (d) In case the registered holder of any Right Certificate shall exercise less than all the
Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the Rights
remaining unexercised shall be issued by the Rights Agent to the registered holder of such Right
Certificate or to such holder’s duly authorized assigns, subject to the provisions of Section
14 hereof.

          (e) Notwithstanding anything in this Rights Agreement to the contrary, neither the Rights
Agent nor the Company shall be obligated to undertake any action with respect to a registered
holder of Rights or other securities upon the occurrence of any purported exercise as set forth in
this Section 7 unless such registered holder shall, in addition to having complied with the
requirements of Section 7(a) hereof, have (i) properly completed and duly signed the
certificate contained in the form of election to purchase set forth on the reverse side of the
Rights Certificate surrendered for such exercise and (ii) provided such additional evidence of the
identity of the Beneficial Owner (or former Beneficial Owner) thereof and of the Rights evidenced
thereby and of the Affiliates and Associates of such Beneficial Owner (or former Beneficial Owner)
as the Company or the Rights Agent shall reasonably request.

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

 

-9-

          Section 9. Availability of Preferred Shares.

          (a) The Company covenants and agrees that it will cause to be reserved and kept available out
of its authorized and unissued Preferred Shares or any Preferred Shares held in its treasury, the
number of Preferred Shares that will be sufficient to permit the exercise in full of all
outstanding Rights in accordance with Section 7 hereof. The Company covenants and agrees
that it will take all such action as may be necessary to ensure that all securities delivered upon
exercise of Rights shall, at the time of delivery of the certificates for such securities (subject
to payment of the Purchase Price), be duly and validly authorized and issued and fully paid and
nonassessable.

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

          (c) The Company will use its best efforts to ensure that any securities issued pursuant hereto
are issued in compliance with all applicable laws.

          Section 10. Preferred Shares Record Date. Each Person in whose name any certificate
or entry in the book-entry account system of the transfer agent for Preferred Shares is issued upon
the exercise of Rights shall for all purposes be deemed to have become the holder of record of the
Preferred Shares represented thereby on, and such certificate or entry in the book-entry account
system of the transfer agent shall be dated, the date upon which the Right Certificate evidencing
such Rights was duly surrendered and payment of the Purchase Price (and any applicable taxes or
charges) was duly made; provided, however, that if the date of such surrender and payment is a date
on which the Preferred Shares transfer books of the Company are closed, such Person shall be deemed
to have become the record holder of such shares on, and such certificate or entry in the book-entry
account system of the transfer agent shall be dated, the next succeeding Business Day on which the
Preferred Shares transfer books of the Company are open. Prior to the exercise of the Rights
evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a
holder of Preferred 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 of Shares or Number of Rights. The
Purchase Price, the number of Preferred 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 Rights Agreement (A)
declare a dividend on the Preferred Shares payable in Preferred Shares, (B) subdivide the
outstanding Preferred Shares, (C) combine the outstanding Preferred Shares into a smaller number of
Preferred Shares or (D) issue any shares of its capital stock in a reclassification of the
Preferred Shares (including any such reclassification in connection with a consolidation or merger
in which the Company

 

-10-

is the continuing or surviving corporation), except as otherwise provided in this Section
11(a), the Purchase Price in effect at the time of the record date for such dividend or the
effective date of such subdivision, combination or reclassification, and the number and kind of
shares of capital stock issuable on such date, shall be proportionately adjusted so that the holder
of any Right exercised after such time shall be entitled to receive the aggregate number and kind
of shares of capital stock which, if such Right had been exercised immediately prior to such date
and at a time when the Preferred Shares transfer books of the Company were open, such holder would
have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision,
combination or reclassification; provided, however, that in no event shall the consideration to be
paid upon the exercise of one Right be less than the aggregate par value of the shares of capital
stock of the Company issuable upon exercise of one Right.

               (ii) Subject to Section 24 hereof, if at any time after the date of this Rights
Agreement any Person becomes an Acquiring Person, each holder of a Right shall thereafter have a
right to receive, upon exercise thereof at a price equal to the then current Purchase Price
multiplied by the number of one one-thousandths of a Preferred Share for which a Right is then
exercisable, in accordance with the terms of this Rights Agreement and in lieu of Preferred Shares,
such number of Common Shares as shall equal the result obtained by (A) multiplying the then-current
Purchase Price by the number of one one-thousandths of a Preferred Share for which a Right is then
exercisable and dividing that product by (B) 50% of the then current per share market price of the
Company’s Common Shares (determined pursuant to Section 11(d) hereof) on the date of the
occurrence of such event; provided, however, that if the transaction that would otherwise give rise
to the foregoing adjustment is also subject to the provisions of Section 13 hereof, then
only the provisions of Section 13 hereof shall apply and no adjustment shall be made
pursuant to this Section 11(a)(ii). In the event that any Person shall become an Acquiring
Person and the Rights shall then be outstanding, the Company shall not take any action that would
eliminate or diminish the benefits intended to be afforded by the Rights. Notwithstanding anything
in this Rights Agreement to the contrary, from and after the occurrence of such event, any Rights
that are or were acquired or Beneficially Owned by any Acquiring Person (or any Associate or
Affiliate of such Acquiring Person) shall be null and void (without any further action) and any
holder of such Rights shall thereafter have no right whatsoever with respect to such Rights under
any provision of this Rights Agreement or otherwise. No Right Certificate shall be issued pursuant
to Section 3 hereof that represents Rights Beneficially Owned by an Acquiring Person whose
Rights would be null and void pursuant to the preceding sentence or any Associate or Affiliate or
nominee thereof; no Right Certificate shall be issued at any time upon the transfer of any Rights
to an Acquiring Person whose Rights would be null and void pursuant to the preceding sentence or
any Associate or Affiliate thereof or to any nominee of such Acquiring Person, Associate or
Affiliate; and any Right Certificate delivered to the Rights Agent for transfer to an Acquiring
Person whose Rights would be null and void pursuant to the preceding sentence or any Associate or
Affiliate thereof or to any nominee of such Acquiring Person, Associate or Affiliate shall be
cancelled. The Company shall give the Rights Agent written notice of the identity of any such
Acquiring Person, Associate or Affiliate, or the nominee of any of the foregoing, and the Rights
Agent may rely on such notice in carrying out its duties under this Rights Agreement and shall be
deemed not to have any knowledge of the identity of any such Acquiring Person, Associate or
Affiliate, or the nominee of any of the foregoing unless and until it shall have received such
notice.

               (iii) If there shall not be sufficient Common Shares issued but not outstanding or authorized
but unissued to permit the exercise in full of the Rights in accordance with the foregoing
subparagraph (ii), the Company shall take all such action as may be necessary to authorize
additional Common Shares for issuance upon exercise of the Rights. If the Company shall, after good
faith effort, be unable to take all such action as may be necessary to authorize such additional
Common Shares, the Company shall substitute, for each Common Share that would otherwise be issuable
upon exercise of a Right, a number of Preferred Shares or fraction thereof (or a security with
substantially similar rights, privileges, preferences, voting power and economic rights) such that
the current per share market price of

 

-11-

one Preferred Share (or such other security) multiplied by such number or fraction is equal to
the current per share market price of one Common Share as of the date of issuance of such Preferred
Shares or fraction thereof (or other security).

          (b) In case the Company shall fix a record date for the issuance of rights, options or
warrants to all holders of Preferred Shares entitling them (for a period expiring within forty-five
(45) calendar days after such record date) to subscribe for or purchase Preferred Shares (or shares
having the same rights, privileges and preferences as the Preferred Shares (“equivalent
preferred shares”)) or securities convertible into Preferred Shares or equivalent preferred
shares at a price per Preferred Share or equivalent preferred share (or having a conversion price
per share, if a security convertible into Preferred Shares or equivalent preferred shares) less
than the then current per share market price of the Preferred Shares on such record date, the
Purchase Price to be in effect after such record date shall be determined by multiplying the
Purchase Price in effect immediately prior to such record date by a fraction, the numerator of
which shall be the number of Preferred Shares outstanding on such record date plus the number of
Preferred Shares which the aggregate offering price of the total number of Preferred Shares and/or
equivalent preferred shares so to be offered (and/or the aggregate initial conversion price of the
convertible securities so to be offered) would purchase at such current market price and the
denominator of which shall be the number of Preferred Shares outstanding on such record date plus
the number of additional Preferred Shares and/or equivalent preferred shares to be offered for
subscription or purchase (or into which the convertible securities so to be offered are initially
convertible); provided, however, that in no event shall the consideration to be paid upon the
exercise of one Right be less than the aggregate par value of the shares of capital stock of the
Company issuable upon exercise of one Right. In case such subscription price may be paid in a
consideration part or all of which shall be in a form other than cash, the value of such
consideration shall be as determined in good faith by the Board 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 the Rights. Preferred Shares owned by or held for the account
of the Company shall not be deemed outstanding for the purpose of any such computation. Such
adjustment shall be made successively whenever such a record date is fixed; and in the event that
such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the
Purchase Price which would then be in effect if such record date had not been fixed.

          (c) In case the Company shall fix a record date for the making of a distribution to all
holders of the Preferred Shares (including any such distribution made in connection with a
consolidation or merger in which the Company is the continuing or surviving corporation) of
evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend
payable in Preferred Shares) or 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 then current per share market price of the Preferred
Shares on such record date, less the fair market value (as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement filed with the
Rights Agent and shall be binding on the Rights Agent and holders of the Rights) of the portion of
the assets or evidences of indebtedness so to be distributed or of such subscription rights or
warrants applicable to one Preferred Share and the denominator of which shall be such current per
share market price of the Preferred Shares; provided, however, that in no event shall the
consideration to be paid upon the exercise of one Right be less than the aggregate par value of the
shares of capital stock of the Company to be issued upon exercise of one Right. Such adjustments
shall be made successively whenever such a record date is fixed; and in the event that such
distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price
which would then be in effect if such record date had not been fixed.

 

-12-

          (d) (i) For the purpose of any computation hereunder, the “current per share market
price” of any security (a “Security” for the purpose of this Section 11(d)(i))
on any date shall be deemed to be the average of the daily closing prices per share of such
Security for the thirty (30) consecutive Trading Days immediately prior to but not including such
date; provided, however, that in the event that the current per share market price of the Security
is determined during a period following the announcement by the issuer of such Security of (A) a
dividend or distribution on such Security payable in shares of such Security or securities
convertible into such shares, or (B) any subdivision, combination or reclassification of such
Security and prior to the expiration of thirty (30) Trading Days after but not including the
ex-dividend date for such dividend or distribution, or the record date for such subdivision,
combination or reclassification, then, and in each such case, the current per share market price
shall be appropriately adjusted to reflect the current market price per share equivalent of such
Security. The closing price for each day shall be the last sale price, regular way, recorded at or
prior to 4:00 p.m., New York time or, in case no such sale takes place on such day, the average of
the closing bid and asked prices, regular way, reported at 4:00 p.m., New York time, in either
case, as reported (w) by the principal consolidated transaction reporting system with respect to
securities listed or admitted to trading on the NASDAQ Stock Market, or (x) if the Security is not
listed or admitted to trading on the NASDAQ Stock Market, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal national securities
exchange on which the Security is listed or admitted to trading or, if the Security is not listed
or admitted to trading on any national securities exchange, the last quoted price at or prior to
4:00 p.m., New York time or, if not so quoted, the average of the high bid and low asked prices in
the over-the-counter market, as reported as of 4:00 p.m., New York time by NASDAQ or such other
system then in use, or, if on any such date the Security is not quoted by any such organization,
the average of the closing bid and asked prices as furnished by a professional market maker making
a market in the Security selected by the Board of Directors of the Company. If on any such date no
such market maker is making a market in the Security, the fair value of the Security on such date
as determined in good faith by the Board 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 Security is listed or admitted to trading is open for the transaction of business or, if the
Security is not listed or admitted to trading on any national securities exchange, a Business Day.

               (ii) For the purpose of any computation hereunder, the “current per share market price” of the
Preferred Shares shall be determined in accordance with the method set forth in Section
11(d)(i) hereof. If the Preferred Shares are not publicly traded, the “current per share market
price” of the Preferred Shares shall be conclusively deemed to be the current per share market
price of the Common Shares as determined pursuant to Section 11(d)(i) hereof (appropriately
adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date
hereof), multiplied by one thousand. If neither the Common Shares nor the Preferred Shares are
publicly held or so listed or traded, “current per share market price” shall mean the fair value
per share as determined in good faith by the Board of Directors of the Company, whose determination
shall be described in a statement filed with the Rights Agent.

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

 

-13-

          (f) If, as a result of an adjustment made pursuant to Section 11(a) hereof, the holder
of any Right thereafter exercised shall become entitled to receive any shares of capital stock of
the Company other than Preferred Shares, thereafter the number of such other shares so receivable
upon exercise of any Right shall be subject to adjustment from time to time in a manner and on
terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares
contained in Section 11(a) through (c), inclusive, hereof and the provisions of
Sections 7, 9, 10 and 13 hereof with respect to the Preferred
Shares shall apply on like terms to any such other shares.

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

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

          (i) The Company may elect on or after the date of any adjustment of the Purchase Price to
adjust the number of Rights in substitution for any adjustment in the number of one one-thousandths
of a Preferred Share purchasable upon the exercise of a Right. Each of the Rights outstanding after
such adjustment of the number of Rights shall be exercisable for the number of one one-thousandths
of a Preferred Share for which a Right was exercisable immediately prior to such adjustment. Each
Right held of record prior to such adjustment of the number of Rights shall become that number of
Rights (calculated to the nearest one millionth) obtained by dividing the Purchase Price in effect
immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately
after adjustment of the Purchase Price. The Company shall make a public announcement (with prompt
written notice thereof to the Rights Agent) of its election to adjust the number of Rights,
indicating the record date for the adjustment, and, if known at the time, the amount of the
adjustment to be made. This record date may be the date on which the Purchase Price is adjusted or
any day thereafter, but, if the Right Certificates have been issued, shall be at least 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 delivered by the Company, and countersigned and delivered
by the Rights Agent, in the manner provided for herein and shall be registered in the names of the
holders of record of Right Certificates on the record date specified in the public announcement.

          (j) Irrespective of any adjustment or change in the Purchase Price or the number of one
one-thousandths of a Preferred Share issuable upon the exercise of the Rights, the Right
Certificates theretofore and thereafter issued may continue to express the Purchase Price and the
number of one one-

 

-14-

thousandths of a Preferred Share which were expressed in the initial Right Certificates issued
hereunder, but, nevertheless, shall represent the Rights as so adjusted.

          (k) Before taking any action that would cause an adjustment reducing the Purchase Price below
one one-thousandth of the then par value, if any, of the Preferred Shares issuable upon exercise of
the Rights, the Company shall take any corporate action which may, in the opinion of its counsel,
be necessary in order that the Company may validly and legally issue fully paid and nonassessable
Preferred Shares at such adjusted Purchase Price.

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

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

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

          Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an
adjustment is made or any event affecting the Rights or their exercisability (including, without
limitation, an event which causes the Rights to become null and void) occurs as provided in
Section 11 or Section 13 hereof, the Company shall promptly (a) prepare a
certificate setting forth such adjustment or describing such event, and a brief, reasonably
detailed statement of the facts, computations and methodology accounting for such adjustment, (b)
file with the Rights Agent and with each transfer agent for the Common Shares or the Preferred
Shares a copy of such certificate and (c) if a Distribution Date has

 

-15-

occurred, mail a brief summary thereof to each holder of a Right Certificate in accordance
with Section 25 hereof. Notwithstanding the foregoing sentence, the failure of the Company
to make such certification or give such notice shall not affect the validity of or the force or
effect of the requirement for such adjustment. Any adjustment to be made pursuant to Section
11 or Section 13 hereof shall be effective as of the date of the event giving rise to
such adjustment. The Rights Agent shall be fully protected in relying on any such certificate and
on any adjustment or statement therein contained and shall have no duty or liability with respect
to and shall not be deemed to have knowledge of any adjustment or any such event unless and until
it shall have received such certificate.

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

     (a) In the event, directly or indirectly, at any time after a Person has become an Acquiring
Person, (i) the Company shall consolidate with, or merge with and into, any other Person, (ii) any
Person shall consolidate with the Company, or merge with and into the Company and the Company shall
be the continuing or surviving corporation of such merger and, in connection with such merger, all
or part of the Common Shares shall be changed into or exchanged for stock or other securities of
any other Person (or the Company) or cash or any other property or (iii) the Company shall sell or
otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one or
more transactions, assets or earning power aggregating 50% or more of the assets or earning power
of the Company and its Subsidiaries (taken as a whole) to any other Person other than the Company
or one or more of its wholly owned Subsidiaries, then, and in each such case, proper provision
shall be made so that:

          (w) each holder of a Right (except as otherwise provided herein) shall thereafter have the
right to receive, upon the exercise thereof at a price equal to the then-current Purchase Price
multiplied by the number of one one-thousandths of a Preferred Share for which a Right is then
exercisable, in accordance with the terms of this Rights Agreement and in lieu of Preferred Shares,
such number of validly issued, fully paid, nonassessable and freely tradable Common Shares of the
Principal Party (as defined below) not subject to any liens, encumbrances, rights of first refusal
or other adverse claims, as shall equal the result obtained by (A) multiplying the then current
Purchase Price by the number of one one-thousandths of a Preferred Share for which a Right is then
exercisable and dividing that product by (B) 50% of the then current per share market price of the
Common Shares of Principal Party (determined pursuant to Section 11(d) hereof) on the date
of consummation of such consolidation, merger, sale or transfer, provided that the Purchase Price
and the number of Common Shares of such Principal Party issuable upon exercise of each Right shall
be further adjusted as provided in Section 11(f) hereof to reflect any events occurring in
respect of such Principal Party after the date of such consolidation, merger, sale or transfer;

          (x) the issuer of such Common Shares 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 Rights Agreement;

          (y) the term “Company” shall thereafter be deemed to refer to such issuer; and

          (z) such Principal Party shall take such steps (including, but not limited to, the reservation
of a sufficient number of its Common Shares) in connection with such consummation as may be
necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as
reasonably may be, in relation to the Common Shares thereafter deliverable upon the exercise of the
Rights.

The Company shall not consummate any such consolidation, merger, sale or transfer unless prior
thereto the Company and Principal Party shall have executed and delivered to the Rights Agent a
supplemental agreement so providing. The Company shall not enter into any transaction of the kind
referred to in this

 

-16-

Section 13 if at the time of such transaction there are any rights, warrants, instruments
or securities outstanding or any agreements or arrangements which, as a result of the consummation
of such transaction, would eliminate or substantially diminish the benefits intended to be afforded
by the Rights. The provision of this Section 13 shall similarly apply to successive mergers
or consolidations or sales or other transfers. The provisions of Section 11(a)(ii) hereof
shall be of no effect following the occurrence of any event described in clause (i), (ii) or (iii)
above of this Section 13(a).

     (b) “Principal Party” shall mean:

     (i) in the case of any transaction described in clauses (i) or (ii) of the first
sentence of Section 13(a) hereof: (A) the Person that is the issuer of the
securities into which the Common Shares are converted in such merger or consolidation, or,
if there is more than one such issuer, the issuer of the Common Shares of which have the
greatest aggregate market value of shares outstanding, or (B) if no securities are so
issued, (x) the Person that is the other party to the merger, if such Person survives said
merger, or, if there is more than one such Person, the Person the shares of common stock of
which have the greatest aggregate market value of shares outstanding or (y) if the Person
that is the other party to the merger does not survive the merger, the Person that does
survive the merger (including the Company if it survives) or (z) the Person resulting from
the consolidation; and

     (ii) in the case of any transaction described in clause (iii) of the first sentence in
Section 13(a) hereof, the Person that is the party receiving the greatest portion of
the assets or earning power transferred pursuant to such transaction or transactions, or, if
each Person that is a party to such transaction or transactions receives the same portion of
the assets or earning power so transferred or if the Person receiving the greatest portion
of the assets or earning power cannot be determined, whichever of such Persons is the issuer
of common stock having the greatest aggregate market value of shares outstanding;

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

     (c) The Company shall not consummate any consolidation, merger, sale or transfer referred to
in Section 13(a) hereof unless prior thereto the Company and the Principal Party involved
therein shall have executed and delivered to the Rights Agent an agreement confirming that the
requirements of Section 13(a) hereof shall promptly be performed in accordance with their
terms and that such consolidation, merger, sale or transfer of assets shall not result in a default
by the Principal Party under this Rights Agreement as the same shall have been assumed by the
Principal Party pursuant to Section 13(a) hereof and providing that, as soon as practicable
after executing such agreement pursuant to this Section 13, the Principal Party will:

 

-17-

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

     (ii) use its best efforts, if the common stock of the Principal Party shall be listed
or admitted to trading on the NYSE or on another national securities exchange, to list or
admit to trading (or continue the listing of) the Rights and the securities purchasable upon
exercise of the Rights on the NYSE or such securities exchange, or, if the common stock of
the Principal Party shall not be listed or admitted to trading on the NYSE or a national
securities exchange, to cause the Rights and the securities receivable upon exercise of the
Rights to be reported by such other system then in use;

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

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

     (d) In case the Principal Party has a provision in any of its authorized securities or in its
certificate of incorporation or by-laws or other instrument governing its affairs, which provision
would have the effect of (i) causing such Principal Party to issue (other than to holders of Rights
pursuant to this Section 13), in connection with, or as a consequence of, the consummation
of a transaction referred to in this Section 13, shares of common stock or common stock
equivalents of such Principal Party at less than the current per share market price (determined
pursuant to Section 11(d) hereof) or securities exercisable for, or convertible into,
common stock or common stock equivalents of such Principal Party at less than such current per
share market price, or (ii) providing for any special payment, tax or similar provision in
connection with the issuance of the common stock of such Principal Party pursuant to the provisions
of this Section 13, then, in such event, the Company hereby agrees with each holder of
Rights that it shall not consummate any such transaction unless prior thereto the Company and such
Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement
providing that the provision in question of such Principal Party shall have been canceled, waived
or amended, or that the authorized securities shall be redeemed, so that the applicable provision
will have no effect in connection with, or as a consequence of, the consummation of the proposed
transaction.

     (e) The Company covenants and agrees that it shall not, at any time after a Person first
becomes an Acquiring Person, enter into any transaction of the type contemplated by Sections
13(a)(i)-(iii) hereof if (i) at the time of or immediately after such consolidation, merger,
sale, transfer or other transaction there are any rights, warrants or other instruments or
securities outstanding or agreements in effect which would substantially diminish or otherwise
eliminate the benefits intended to be afforded by the Rights, (ii) prior to, simultaneously with or
immediately after such consolidation, merger, sale, transfer or other transaction, the stockholders
of the Person who constitutes, or would constitute, the Principal Party for purposes of Section
13(b) hereof shall have received a distribution of Rights previously owned by such Person or
any of its Affiliates or Associates or (iii) the form or nature of organization of the Principal
Party would preclude or limit the exercisability of the Rights.

 

-18-

          Section 14. Fractional Rights and Fractional Shares.

          (a) The Company shall not be required to issue fractions of Rights or to distribute Right
Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be
paid to the registered holders of the Right Certificates with regard to which such fractional
Rights would otherwise be issuable, an amount in cash equal to the same fraction of the current
market value of a whole Right. For the purposes of this Section 14(a), the current market
value of a whole Right shall be the closing price of the Rights for the Trading Day immediately
prior to the date on which such fractional Rights would have been otherwise issuable. The closing
price for any day shall be the last sale price, regular way reported at or prior to 4:00 p.m., New
York time, or, in case no such sale takes place on such day, the average of the closing bid and
asked prices, regular way reported at or prior to 4:00 p.m., New York time, in either case, as
reported in the principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the NASDAQ Stock Market or, if the Rights are not listed or
admitted to trading on the NASDAQ Stock Market, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal national securities
exchange on which 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 reported at or prior
to 4:00 p.m., New York time, or, if not so quoted, the average of the high bid and low asked prices
in the over-the-counter market, as reported at or prior to 4:00 p.m., New York time, by the NASDAQ
or such other system then in use or, if on any such date the Rights are not quoted by any such
organization, the average of the closing bid and asked prices reported at or prior to 4:00 p.m.,
New York time 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.

          (b) The Company shall not be required to issue fractions of Preferred Shares (other than
fractions which are integral multiples of one one-thousandth of a Preferred Share) upon exercise of
the Rights or to distribute certificates or make any entries in the book-entry account system of
the transfer agent which evidence fractional Preferred Shares (other than fractions which are
integral multiples of one one-thousandth of a Preferred Share). Fractions of Preferred Shares in
integral multiples of one one-thousandth of a Preferred Share may, at the election of the Company,
be evidenced by depositary receipts, pursuant to an appropriate agreement between the Company and a
depositary selected by it; provided that such agreement shall provide that the holders of such
depositary receipts shall have all the rights, privileges and preferences to which they are
entitled as Beneficial Owners of the Preferred Shares represented by such depositary receipts. In
lieu of fractional Preferred Shares that are not integral multiples of one one-thousandth of a
Preferred Share, the Company shall pay to the registered holders of Right Certificates at the time
such Rights are exercised as herein provided an amount in cash equal to the same fraction of the
current market value of one Preferred Share. For the purposes of this Section 14(b), the
current market value of a Preferred Share shall be the closing price of a Preferred Share (as
determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day
immediately prior to the date of such exercise.

          (c) The Company shall not be required to issue fractions of Common Shares or to distribute
certificates or make any entries in the book-entry account system of the transfer agent which
evidence fractional Common Shares. In lieu of such fractional Common Shares, the Company shall pay
to the registered holder of the Right Certificates at the time such Rights are exercised as herein
provided an amount of cash equal to the same fraction of the current per share market value of a
whole Common Share. For the purpose of this Section 14(c), the current per share market
value of a Common Share (as defined pursuant to Section 11(d)(i) hereof) shall be for the
Trading Day immediately prior to the date of such exercise.

 

-19-

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

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

          Section 15. Rights of Action. All rights of action in respect of this Rights
Agreement, except the rights of action given to the Rights Agent under Section 18 and
Section 20 hereof, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of the Common Shares);
and any registered holder of any Right Certificate (or, prior to the Distribution Date, of the
Common Shares), without the consent of the Rights Agent or of the holder of any other Right
Certificate (or, prior to the Distribution Date, of the Common Shares), may, in such holder’s own
behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action
or proceeding against the Company to enforce, or otherwise act in respect of, such holder’s right
to exercise the Rights evidenced by such Right Certificate in the manner provided in such Right
Certificate and in this Rights Agreement. Without limiting the foregoing or any remedies available
to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have
an adequate remedy at law for any breach by the Company of this Rights Agreement and will be
entitled to specific performance of the obligations under, and injunctive relief against actual or
threatened violations by the Company of the obligations of any Person subject to, this Rights
Agreement. Notwithstanding anything in this Rights 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 Rights Agreement by reason of any
preliminary or permanent injunction or other order, judgment, decree or ruling (whether
interlocutory or final) issued by a court or by a governmental, regulatory, self-regulatory or
administrative agency or commission, or any statute, rule, regulation or executive order
promulgated or enacted by any governmental authority, prohibiting or otherwise restraining
performance of such obligation.

          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 evidenced by the balances indicated in
the book-entry account system of the transfer agent for the Common Shares registered in the names
of the holders of the Common Shares thereof (which Common Shares shall also be deemed to represent
certificates for Rights) or, in the case of certificated shares, the certificates for the Common
Shares registered in the names of the holders of the Common Shares thereof (which certificates for
shares of Common Shares shall also constitute certificates for Rights) and each Right will be
transferable only in connection with the transfer of the Common Shares;

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

 

-20-

          (c) the Company and the Rights Agent may deem and treat the Person in whose name the Right
Certificate (or, prior to the Distribution Date, the associated balance indicated in the book-entry
account system of the transfer agent for the Common Shares or, in the case of certificated shares,
the associated Common Shares certificate) is registered as the absolute owner thereof and of the
Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Right
Certificate or the associated balance indicated in the book-entry account system of the transfer
agent for the Common Shares or, in the case of certificated shares, the associated Common Shares
certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever,
and neither the Company nor the Rights Agent shall be affected by any notice to the contrary.

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

          Section 18. Concerning the Rights Agent

          (a) The Company agrees to pay to the Rights Agent reasonable compensation for all services
rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable
expenses and counsel fees and other disbursements incurred in the preparation, delivery, amendment,
administration and execution of this Rights Agreement and the exercise and performance of its
duties hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it
harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement,
cost or expense (including, without limitation, reasonable fees and expenses of legal counsel)
incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent
(which gross negligence, willful misconduct or bad faith must be determined by a final,
non-appealable judgment of a court of competent jurisdiction), for any action taken, suffered or
omitted by the Rights Agent in connection with the acceptance, administration, exercise and
performance of its duties under this Rights Agreement, including the costs and expenses of
defending against any claim of liability in the premises. The costs and expenses incurred in
enforcing this right of indemnification shall be paid by the Company. The provisions of this
Section 18 and Section 20 shall survive the termination of this Rights Agreement,
the exercise or expiration of the Rights and the resignation, replacement or removal of the Rights
Agent.

          (b) The Rights Agent shall be authorized and protected and shall incur no liability for, or in
respect of any action taken, suffered or omitted by it in connection with its acceptance and
administration of this Rights Agreement and the exercise and performance of its duties hereunder,
in reliance upon any Right Certificate or certificate for the Preferred Shares or Common Shares or
any balance indicated in the book-entry account system of the transfer agent, or, for other
securities of the Company, instrument of assignment or transfer, power of attorney, endorsement,
affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document
believed by it to be genuine and to be signed, executed and, where necessary, verified or
acknowledged, by the proper Person or Persons, or otherwise upon the advice of counsel as set forth
in Section 20 hereof. The Rights Agent shall not be deemed to have knowledge of any event
of which it was supposed to receive notice thereof hereunder, and the Rights Agent shall be fully
protected and shall incur no liability for failing to take action in connection therewith unless
and until it has received such notice in writing.

 

-21-

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

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

          (b) In case at any time the name of the Rights Agent shall be changed and at such time any of
the Right Certificates shall have been countersigned but not delivered, the Rights Agent may adopt
the countersignature under its prior name and deliver the 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 Rights Agreement.

          Section 20. Duties of Rights Agent. The Rights Agent undertakes to perform only the
express duties and obligations imposed by this Rights Agreement (and no implied duties) 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 (which legal counsel may be an employee of
the Rights Agent or legal counsel for the Company), and the advice or opinion of such counsel shall
be full and complete authorization and protection to the Rights Agent and the Rights Agent shall
incur no liability for, in respect of or as to any action taken, suffered or omitted by it without
bad faith and in accordance with such advice or opinion.

          (b) Whenever in the performance of its duties under this Rights Agreement the Rights Agent
shall deem it necessary or desirable that any fact or matter (including, without limitation, the
identity of an Acquiring Person and the determination of the current per share market price of any
security) be proved or established by the Company prior to taking, suffering or omitting to take
any action hereunder, such fact or matter (unless other evidence in respect thereof be herein
specifically prescribed) may be deemed to be conclusively proved and established by a certificate
signed by any one of the Chairman of the Board of Directors, Chief Executive Officer, the
President, any Executive Vice President, the Treasurer or the Secretary of the Company and
delivered to the Rights Agent; and such certificate shall be full and complete authorization and
protection to the Rights Agent and the Rights Agent shall incur no liability for or in respect of
any action taken, suffered or omitted by it without bad faith under the provisions of this Rights
Agreement in reliance upon such certificate.

          (c) The Rights Agent shall be liable hereunder to the Company and any other Person only for
its own gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or
willful misconduct must be determined by a final, non-appealable judgment of a court of competent

 

-22-

jurisdiction). Anything to the contrary notwithstanding, in no event shall the Rights Agent
be liable for special, punitive, indirect, consequential or incidental loss or damage of any kind
whatsoever (including but not limited to lost profits), even if the Rights Agent has been advised
of the likelihood of such loss or damage. Any liability of the Rights Agent under this Rights
Agreement will be limited to three times the amount of annual fees paid by the Company to the
Rights Agent hereunder.

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

          (e) The Rights Agent shall not have any liability for or be under any responsibility in
respect of the validity of this Rights 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 Rights Agreement or in any Right
Certificate; nor shall it be responsible for any change in the exercisability of the Rights
(including the Rights becoming void pursuant to Section 11(a)(ii) hereof) or any change or
adjustment in the terms of the Rights (including the manner, method or amount thereof) provided for
in Sections 3, 11, 13, 23 or 24 hereof, or the ascertaining
of the existence of facts that would require any such change or adjustment (except with respect to
the exercise of Rights evidenced by Right Certificates after actual notice pursuant to Section
12, upon which the Rights Agent may rely, that such change or adjustment is required); nor
shall it by any act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any Preferred Shares or Common Shares to be issued pursuant to this
Rights Agreement or any Right Certificate or as to whether any Preferred Shares or Common Shares
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 Rights Agreement.

          (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties hereunder from any one of the Chairman of the Board of Directors,
Chief Executive Officer, the President, any Executive Vice President, the Secretary, the Chief
Financial Officer or the Treasurer of the Company, and to apply to such officers for advice or
instructions in connection with its duties, and such instructions shall be full authorization and
protection to the Rights Agent and the Rights Agent shall not be liable for or in respect of any
action taken, suffered or omitted by it without bad faith and in accordance with instructions of
any such officer or for any delay in acting while waiting for those instructions. The Rights Agent
shall be fully authorized and protected in relying upon the most recent instructions received by
any such officer. Any application by the Rights Agent for written instructions from the Company
may, at the option of the Rights Agent, set forth in writing any action proposed to be taken,
suffered or omitted by the Rights Agent under this Rights Agreement and the date on and/or after
which such action shall be taken or suffered or such omission shall be effective. The Rights Agent
shall not be liable for any action taken or suffered by, or omission of, the Rights Agent in
accordance with a proposal included in any such application on or after the date specified in such
application (which date shall not be less than five (5) Business Days after the date any officer of
the Company actually receives such application, unless any such officer shall have consented in
writing to an earlier date) unless, prior to taking any such action (or the effective date in the
case of an omission), the Rights Agent shall have received written instructions in response to such
application specifying the action to be taken, suffered or omitted.

 

-23-

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

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

          (j) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it
or perform any duty hereunder either itself (through its directors, officers and employees) or by
or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for
any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the
Company or any other Person resulting from any such act, default, neglect or misconduct, absent
gross negligence, bad faith or willful misconduct in the selection and continued employment thereof
(which gross negligence, bad faith or willful misconduct must be determined by a final,
non-appealable judgment of a court of competent jurisdiction).

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

          Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent
may resign and be discharged from its duties under this Rights Agreement upon 30 days’ notice in
writing mailed to the Company and to each transfer agent of the Common Shares or Preferred Shares
known to the Rights Agent by registered or certified mail, and to the holders of the Right
Certificates by first-class mail. In the event the transfer agency relationship in effect between
the Company and the Rights Agent terminates, the Rights Agent will be deemed to have resigned
automatically and be discharged from its duties under this Rights Agreement as of the effective
date of such termination, and the Company shall be responsible for sending any required notice. 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 Shares or Preferred Shares 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 giving
notice of such removal or after it has been notified in writing of such resignation or incapacity
by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate (who or
which shall, with such notice, submit such holder’s 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 Person, or an Affiliate of such a Person,
organized and doing business under the laws of the United States or of any state of the United
States, in good standing, which is authorized under such laws to exercise corporate trust or stock
transfer powers and is subject to supervision or examination by federal or state authority and
which has at the time of its appointment as Rights Agent, including its Affiliates, a combined
capital and surplus of at least $50 million). After appointment, the successor Rights Agent shall
be vested with the same powers, rights, duties and

 

-24-

responsibilities as if it had been originally named as Rights Agent without further act or
deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any
property at the time held by it hereunder, and execute and deliver any further assurance,
conveyance, act or deed necessary for the purpose. Not later than the effective date of any such
appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and
each transfer agent of the Common Shares or Preferred Shares, 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 Rights Agreement or of the Rights to the contrary, the Company may, at its
option, issue new Right Certificates evidencing Rights in such form as may be approved by the Board
of Directors of the Company to reflect any adjustment or change in the Purchase Price and the
number or kind or class of shares or other securities or property purchasable under the Right
Certificates made in accordance with the provisions of this Rights Agreement.

          Section 23. Redemption.

          (a) The Board of Directors of the Company may, at its option, at any time prior to the
Distribution Date, redeem all but not less than all the then outstanding Rights at a redemption
price of $0.01 per Right, appropriately adjusted to reflect any stock split, stock combination,
stock dividend or similar transaction occurring after the date hereof (such redemption price being
hereinafter referred to as the “Redemption Price”). The redemption of the Rights by the
Board of Directors of the Company may be made effective at such time, on such basis and with such
conditions as the Board of Directors of the Company, in its sole discretion, may establish.
Notwithstanding anything to the contrary in this Rights Agreement, the Rights shall not be
exercisable after the first occurrence of the event described in Section 11(a)(ii) hereof
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, Common Shares (based on the current market price 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 pursuant to paragraph (a) of this Section 23, and without any
further action and without any notice, the right to exercise the Rights will terminate and the only
right thereafter of the holders of Rights shall be to receive the Redemption Price. The Company
shall promptly give public notice of any such redemption (with prompt written notice thereof to the
Rights Agent); provided, however, that the failure to give, or any defect in, any such notice shall
not affect the legality or validity of such redemption. Within 10 days after such action of the
Board of Directors of the Company ordering the redemption of the Rights, the Company shall mail a
notice of redemption to all the holders of the then outstanding Rights at their last addresses as
they appear upon the registry books of the Rights Agent or, prior to the Distribution Date, on the
registry books of the transfer agent for the Common Shares. Any notice which is mailed in the
manner herein provided shall be deemed given, whether or not the holder receives the notice. Each
such notice of redemption will state the method by which the payment of the Redemption Price will
be made. Neither the Company nor any of its Affiliates or Associates may redeem, acquire or
purchase for value any Rights at any time in any manner other than that specifically set forth in
this Section 23 or in Section 24 hereof, and other than in connection with the
purchase of Common Shares prior to the Distribution Date.

 

-25-

          Section 24. Exchange.

          (a) The Board of Directors of the Company may, at its option, at any time after any Person
becomes an Acquiring Person, exchange all or part of the then outstanding and exercisable Rights
(which shall not include Rights that have become null and void pursuant to the provisions of
Section 11(a)(ii) hereof) for Common Shares at an exchange ratio of one Common Share per
Right, appropriately adjusted to reflect any adjustment in the number of Rights pursuant to
Section 11(i) 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 Person holding Common Shares 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 Shares then outstanding.

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

          (c) In the event that there shall not be sufficient Common Shares issued but not outstanding
or authorized but unissued to permit any exchange of Rights as contemplated in accordance with this
Section 24, the Company shall take all such action as may be necessary to authorize
additional Common Shares for issuance upon exchange of the Rights. In the event the Company shall,
after good faith effort, be unable to take all such action as may be necessary to authorize such
additional Common Shares, the Company shall substitute, for each Common Share that would otherwise
be issuable upon exchange of a Right, a number of Preferred Shares or fraction thereof (or a
security with substantially similar rights, privileges, preferences, voting power and economic
rights) such that the current per share market price of one Preferred Share (or other such
security) multiplied by such number or fraction is equal to the current per share market price of
one Common Share as of the date of issuance of such Preferred Shares or fraction thereof (or other
such security).

          (d) The Company shall not be required to issue fractions of Common Shares or to distribute
certificates or make any entries in the book-entry account system of the transfer agent for the
Common Shares which evidence fractional Common Shares. In lieu of such fractional Common Shares,
the Company shall pay to the registered holders of the Right Certificates with regard to which such
fractional Common Shares would otherwise be issuable an amount in cash equal to the same fraction
of the current market value of a whole Common Share. For the purposes of this paragraph (d), the
current market value of a whole Common Share shall be the closing price of a Common Share (as
determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day
immediately prior to the date of exchange pursuant to this Section 24.

 

-26-

          Section 25. Notice of Certain Events.

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

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

          Section 26. Notices. Notices or demands authorized by this Rights 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:

Harris Stratex Networks, Inc.

120 Rose Orchard Way

San Jose, CA 95134

Attention: Chief Executive Officer

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

Mellon Investor Services LLC

525 Market Street, Suite 3500

San Francisco, CA 94105

Attention: Relationship Manager

 

-27-

with a copy to:

Mellon Investor Services LLC

Newport Office Center VII

480 Washington Boulevard

Jersey City, New Jersey 07310

Attention: General Counsel

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

          Section 27. Supplements and Amendments. The Board of Directors of the Company may
from time to time supplement or amend this Rights Agreement without the approval of any holders of
Right Certificates in order to cure any ambiguity, to correct or supplement any provision contained
herein which may be defective or inconsistent with any other provisions herein, or to make any
other provisions with respect to the Rights which the Board of Directors of the Company may deem
necessary or desirable, any such supplement or amendment to be evidenced by a writing signed by the
Company and the Rights Agent, provided, however, from and after the Distribution Date, this Rights
Agreement shall not be amended in any manner which would adversely affect the interests of the
holders of Rights (other than an Acquiring Person or Affiliate or Associate thereof). Upon
delivery of a certificate from an appropriate officer of the Company that states that the proposed
supplement or amendment complies with this Section 27, the Rights Agent shall execute such
supplement or amendment. Notwithstanding anything contained in this Rights Agreement to the
contrary, the Rights Agent may, but shall not be obligated to, enter into any supplement or
amendment that affects the Rights Agent’s own rights, duties, obligations or immunities under this
Rights Agreement.

          Section 28. Successors. All the covenants and provisions of this Rights 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 of the Company.
Except as otherwise specifically provided herein, the Board of Directors of the Company shall have
the exclusive power and authority to administer this Rights Agreement and to exercise all rights
and powers specifically granted to the Board of Directors of the Company or to the Company
hereunder, or as may be necessary or advisable in the administration of this Rights Agreement,
including, without limitation, the right and power (i) to interpret the provisions of this Rights
Agreement, and (ii) to make all determinations deemed necessary or advisable for the administration
of this Rights Agreement. All such actions, calculations, interpretations and determinations
(including, for purposes of clause (B) below, all omissions with respect to the foregoing) which
are done or made by the Board of Directors of the Company shall (A) be final, conclusive and
binding on the Company, the Rights Agent, the holders of the Rights and all other parties, and (B)
not subject the Board of Directors of the Company or any member thereof to any liability to the
holders of the Rights. The Rights Agent is entitled to always assume the Company’s Board of
Directors acted in good faith and shall be fully protected and incur no liability in reliance
thereon.

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

 

-28-

exclusive benefit of the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, the Common Shares).

          Section 31. Severability. If any term, provision, covenant or restriction of this
Rights Agreement is held by a court of competent jurisdiction or other authority to be invalid,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this
Rights Agreement shall remain in full force and effect and shall in no way be affected, impaired or
invalidated; provided, however, that if such excluded provision shall affect the rights,
immunities, duties or obligations of the Rights Agent, the Rights Agent shall be entitled to resign
immediately.

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

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

          Section 34. Descriptive Headings. Descriptive headings of the several Sections of
this Rights Agreement are inserted for convenience only and shall not control or affect the meaning
or construction of any of the provisions hereof.

          Section 35. Force Majeure. Notwithstanding anything to the contrary contained
herein, the Rights Agent shall not be liable for any delays or failures in performance resulting
from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts,
shortage of supply, breakdowns or malfunctions, interruptions or malfunctions of computer
facilities, or loss of data due to power failures or mechanical difficulties with information
storage or retrieval systems, labor difficulties, war, or civil unrest.

[remainder of page intentionally left blank]

 

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

	 	 	 	 	 
	 	HARRIS STRATEX NETWORKS, INC.

 	 
	 	By:  	/s/ Harald J. Braun
 	 
	 	 	Name:  	Harald J. Braun 	 
	 	 	Title:  	Chief Executive Officer and President 	 
	 
	 	MELLON INVESTOR SERVICES LLC,

as Rights Agent

 	 
	 	By:  	/s/ Asa Drew
 	 
	 	 	Name:  	Asa Drew 	 
	 	 	Title:  	Assistant Vice President 	 
	 

 

Exhibit A

FORM OF

CERTIFICATE OF DESIGNATIONS

of

SERIES A JUNIOR PARTICIPATING

PREFERRED STOCK

of

HARRIS STRATEX NETWORKS, INC.

(Pursuant to Section 151 of the

Delaware General Corporation Law)

     Harris Stratex Networks, Inc., a corporation organized and existing under the General
Corporation Law of the State of Delaware (hereinafter called the “Corporation”), DOES
HEREBY CERTIFY that pursuant to the authority vested in the Board of Directors of the Corporation
(hereinafter called the “Board of Directors” or the “Board”) by the Amended and
Restated Certificate of Incorporation of the Corporation, and in accordance with the provisions of
Section 151 of the General Corporation Law of the State of Delaware, the Board of Directors on
April 20, 2009 adopted a resolution providing for the authorization of a series of preferred stock,
as follows:

     RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors of
the Corporation in accordance with the provisions of the Amended and Restated Certificate of
Incorporation, the Board of Directors hereby creates a series of preferred stock, par value $0.01
per share (the “Series A Junior Participating Preferred Stock”), of the Corporation and
hereby states the designation and number of shares, and fixes the relative rights, preferences, and
limitations thereof as follows:

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

     Section 2. Dividends and Distributions. Subject to the rights of the holders of any
shares of any series of preferred stock (or any similar stock) ranking prior and superior to the
Series A Junior Participating Preferred Stock with respect to dividends, the holders of shares of
Series A Junior Participating Preferred Stock, in preference to the holders of common stock, par
value $0.01 per share (the “Common Stock”), of the Corporation, and of any other junior
stock, shall be entitled to receive, when, as and if declared by the Board of Directors out of
funds legally available for the purpose, quarterly

 

 

-2-

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

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

     Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Junior
Participating Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of
issue of such shares, unless the date of issue of such shares is prior to the record date for the
first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue
from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment
Date or is a date after the record date for the determination of holders of shares of Series A
Junior Participating Preferred Stock entitled to receive a quarterly dividend and before such
Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and
be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not
bear interest. Dividends paid on the shares of Series A Junior Participating Preferred Stock in an
amount less than the total amount of such dividends at the time accrued and payable on such shares
shall be allocated pro rata on a share-by-share basis among all such shares at the time
outstanding. The Board of Directors may fix a record date for the determination of holders of
shares of Series A Junior Participating Preferred Stock entitled to receive payment of a dividend
or distribution declared thereon, which record date shall be not more than 60 days prior to the
date fixed for the payment thereof.

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

     Subject to the provision for adjustment hereinafter set forth, each share of Series A Junior
Participating Preferred Stock shall entitle the holder thereof to one thousand votes on all matters
submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at
any time

 

-3-

declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a
subdivision or combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the number of votes per
share to which holders of shares of Series A Junior Participating Preferred Stock were entitled
immediately prior to such event shall be adjusted by multiplying such number by a fraction, the
numerator of which is the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were outstanding
immediately prior to such event.

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

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

     Section 4. Certain Restrictions. Whenever quarterly dividends or other dividends or
distributions payable on the Series A Junior Participating Preferred Stock as provided in Section 2
are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or
not declared, on shares of Series A Junior Participating Preferred Stock outstanding shall have
been paid in full, the Corporation shall not:

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

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

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

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

 

 

-4-

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

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

     Section 6. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution
or winding up of the Corporation, no distribution shall be made (1) to the holders of shares of
stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the
Series A Junior Participating Preferred Stock unless, prior thereto, the holders of shares of
Series A Junior Participating Preferred Stock shall have received $1,000.00 per share, plus an
amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to
the date of such payment, provided that the holders of shares of Series A Junior Participating
Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the
provision for adjustment hereinafter set forth, equal to one thousand (1,000) times the aggregate
amount to be distributed per share to holders of shares of Common Stock, or (2) to the holders of
shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or
winding up) with the Series A Junior Participating Preferred Stock, except distributions made
ratably on the Series A Junior Participating Preferred Stock and all such parity stock in
proportion to the total amounts to which the holders of all such shares are entitled upon such
liquidation, dissolution or winding up. In the event the Corporation shall at any time declare or
pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number
of shares of Common Stock, then in each such case the aggregate amount to which holders of shares
of Series A Junior Participating Preferred Stock were entitled immediately prior to such event
under the proviso in clause (1) of the preceding sentence shall be adjusted by multiplying such
amount by a fraction the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event.

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

 

 

-5-

denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

     Section 8. No Redemption. The shares of Series A Junior Participating Preferred
Stock shall not be redeemable.

     Section 9. Rank. The Series A Junior Participating Preferred Stock shall rank, with
respect to the payment of dividends and the distribution of assets, junior to all series of any
other class of the Corporation’s preferred stock.

     Section 10. Amendment. The Amended and Restated Certificate of Incorporation of the
Corporation shall not be amended in any manner which would materially alter or change the powers,
preferences or special rights of the Series A Junior Participating Preferred Stock so as to affect
them adversely without the affirmative vote of the holders of at least a majority of the
outstanding shares of Series A Junior Participating Preferred Stock, voting together as a single
class.

[remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the Company by
its                                         , this       day of April 2009.

	 	 	 	 	 
	HARRIS STRATEX NETWORKS, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

 

 

Exhibit B

Form of Right Certificate

Certificate No. R-

                     Rights

NOT EXERCISABLE AFTER JANUARY 20, 2010 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS ARE
SUBJECT TO REDEMPTION AT $0.01 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT.

Right Certificate

Harris Stratex Networks, 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 20, 2009 (the
“Rights Agreement”), between Harris Stratex Networks, Inc., a Delaware corporation (the
“Company”), and Mellon Investors Services LLC, a New Jersey limited liability company (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., San Francisco, California
time, on January 20, 2010 at the office of the Rights Agent designated for such purpose, or at the
office of its successor as Rights Agent, one one-thousandth of a fully paid non-assessable share of
Series A Junior Participating Preferred Stock of the Company, par value $0.01 per share (the
“Preferred Shares”), at a purchase price of $40.00 per one one-thousandth of a Preferred
Share (the “Purchase Price”), upon presentation and surrender of this Right Certificate
with the Form of Election to Purchase duly executed. The number of Rights evidenced by this Right
Certificate (and the number of one one-thousandths of a Preferred Share which may be purchased upon
exercise hereof) set forth above, and the Purchase Price set forth above, are the number and
Purchase Price as of April 20, 2009, based on the Preferred Shares as constituted at such date. As
provided in the Rights Agreement, the Purchase Price and the number of one one-thousandths of a
Preferred Share which may be purchased upon the exercise of the Rights evidenced by this Right
Certificate are subject to modification and adjustment upon the happening of certain events.

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

     This Right Certificate, with or without other Right Certificates, upon surrender at the office
of the Rights Agent designated for such purpose, may be exchanged for another Right Certificate or
Right Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like
aggregate number of Preferred Shares as the Rights 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.

 

 

-2-

     Subject to the provisions of the Rights Agreement, the Rights evidenced by this Right
Certificate (i) may be redeemed by the Company at a redemption price of $0.01 per Right or (ii) may
be exchanged, in whole or in part, for Preferred Shares or shares of the Company’s Common Stock,
par value $0.01 per share.

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

     No holder of this Right Certificate shall be entitled to vote or receive dividends or be
deemed for any purpose the holder of the Preferred Shares or of any other securities of the Company
which may at any time be issuable on the exercise hereof, nor shall anything contained in the
Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the
rights of a 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.

 

 

-3-

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

Dated as of                     , 20     .

	 	 	 	 	 
	 	HARRIS STRATEX NETWORKS, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COUNTERSIGNED:

MELLON INVESTOR SERVICES LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

[Form of Reverse Side of Right Certificate]

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder desires to transfer the Right Certificate.)

     FOR VALUE RECEIVED

 

hereby sells, assigns and transfers unto
 

 

 

(Please print name and address of transferee)

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

	 	 	 
	Date:
	 	 
	 

	 	 
	Signature:
	 	 
	 

	 	 

Signature Guaranteed:

     Signatures must be guaranteed by an eligible guarantor institution (a bank, stockbroker,
savings and loan association or credit union with membership in an approved signature guarantee
medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934.

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

	 	 	 
	Date:
	 	 
	 

	 	 
	Signature:
	 	 
	 

	 	 

The signature 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.

 

 

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to exercise Rights

represented by the Right Certificate.)

To:                     

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

Please insert social security

or other identifying number:                                                                                                                                                                         

	 	 	 	 	 
	 	 	 
	
 	 	 
	(Please print name and address) 	 	 
	 	 	 
	
 	 	 
	 	 	 

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

Please insert social security

or other identifying number:                                                                                                                                                                         

	 	 	 	 	 
	 	 	 
	
 	 	 
	(Please print name and address) 	 	 
	 
	
 	 	 
	 	 	 

	 	 	 
	Dated:
	 	 
	 

	 	 
	Signature:
	 	 
	 

	 	 

Signature Guaranteed:

     Signatures must be guaranteed by an eligible guarantor institution (a bank, stockbroker,
savings and loan association or credit union with membership in an approved signature guarantee
medallion program) pursuant to Rule 17Ad-15 of the Securities Act of 1934.

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

	 	 	 
	Dated:
	 	 
	 

	 	 
	Signature:
	 	 
	 

	 	 

 

 

-6-

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

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

 

 

Exhibit C

SUMMARY OF RIGHTS TO PURCHASE

PREFERRED SHARES

     On April 20, 2009 the Board of Directors of Harris Stratex Networks, Inc. (the
“Company”) authorized and declared the issuance of one preferred share purchase right (a
“Right”) for each share of Class A common stock, par value $0.01 per share (the “Common
Shares”), of the Company outstanding as of the close of business on May 4, 2009 (the
“Record Date”). Each Right entitles the registered holder to purchase from the Company one
one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.01 per
share (the “Preferred Shares”), of the Company at a price of $40.00 per one one-thousandth
of a Preferred Share (the “Purchase Price”), subject to adjustment. The description and
terms of the Rights are set forth in a Rights Agreement (the “Rights Agreement”) between
the Company and Mellon Investor Services LLC, as Rights Agent (the “Rights Agent”).

Distribution Date; Exercisability

     Initially,
the Rights will be attached to all Common Shares and no separate
Rights certificates will be issued. The Rights will be evidenced
only by the balances indicated in the book-entry account system of the transfer agent for the
Common Shares or, in the case of certificated Common Shares, the certificates that represent such
Common Shares. Separate certificates evidencing
the Rights (“Right Certificates”) will be mailed to holders of record of the Common Shares
as of the close of business on the earlier to occur of (i) the tenth business day following a
public announcement that a person or group of affiliated or associated persons (an “Acquiring
Person”) other than an Exempted Entity (as defined below) has acquired beneficial ownership of
15% or more of the outstanding Common Shares or (ii) the tenth business day (or such later date as
the Board of Directors of the Company may determine prior to such time as any person becomes an
Acquiring Person) following the commencement of, or announcement of an intention to make, a tender
offer or exchange offer the consummation of which would result in the beneficial ownership by a
person or group of 15% or more of the outstanding Common Shares (the earlier of such dates being
the “Distribution Date”).

     “Exempted Entity” means (i) the Company, any subsidiary of the Company, any employee
benefit plan of the Company or of any subsidiary of the Company, or any entity holding Common
Shares for or pursuant to the terms of any such plan, (ii) any Person who becomes the owner of 15%
or more of the Common Shares as the result of a reduction in the outstanding Common Shares,
(iii) any Person who or which the Board of Directors of the Company determines, in good faith,
became an Acquiring Person inadvertently, (iv) any Person who or which the Board of Directors of
the Company determines, prior to the time such Person would otherwise be an Acquiring Person,
should be exempted from the definition of Acquiring Person and (v) Harris Corporation, provided
that the foregoing exclusion of Harris Corporation shall apply solely during the period from the
initial issuance of the Rights until the first date on which Harris Corporation no longer holds
shares of Class A common stock and/or Class B common stock constituting 15% or more of the
aggregate number of the outstanding shares of common stock, par value $0.01 per share, of the
Company of all classes.

     The Rights Agreement provides that, until the Distribution Date (or earlier redemption or
expiration of the Rights), (i) the Rights will be transferred with and only with the Common Shares,
(ii) balances in the book-entry account system of the transfer agent for the Common Shares or, in
the case of certificated Common Shares, the certificates that represent such Common Shares issued
after the Record Date upon transfer or new issuance of Common Shares, will contain a notation
incorporating the Rights Agreement by reference and (iii) the surrender for transfer of any
certificates for Common Shares outstanding as of the Record Date or
the transfer of Common Shares
in the book-entry account system of

 

 

the transfer agent for the Common Shares will also constitute
the transfer of the Rights associated with the Common Shares represented by such certificate.

     The Rights are not exercisable until the Distribution Date.

Flip-In

     If a person or group becomes an Acquiring Person at any time after the date of the Rights
Agreement (with certain limited exceptions), each holder of a Right will thereafter have the right
to receive, upon exercise, Common Shares (or, in certain circumstances, Preferred Shares or other
similar securities of the Company) having a value equal to two times
the Purchase Price.
Notwithstanding any of the foregoing, following the existence of an Acquiring Person, all Rights
that are, or (under certain circumstances specified in the Rights Agreement) were, beneficially
owned by any Acquiring Person will be null and void.

     For
example, at a Purchase Price of $40.00 per Right, each Right not owned by an Acquiring
Person following an event set forth in the preceding paragraph would entitle its holder to purchase
$80.00 worth of Common Shares (or other consideration, as noted above). Assuming a value of $12.00
per Common Share at such time, the holder of each valid Right would be entitled to purchase 6.67
Common Shares for $40.00.

Flip-Over

     In the event that the Company is acquired in a merger or other business combination
transaction or 50% or more of its consolidated assets or earning power are sold after a person or
group has become an Acquiring Person, proper provision will be made so that each holder of a Right
will thereafter have the right to receive, upon the exercise thereof
at the then current Purchase
Price, that number of shares of common stock of the acquiring company which at the time of such
transaction will have a market value of two times the Purchase Price.

Exchange

     At any time after any person or group becomes an Acquiring Person and prior to the acquisition
by such person or group of 50% or more of the outstanding Common Shares, the Board of Directors of
the Company may exchange the Rights (other than Rights owned by such person or group which will
have become void), in whole or in part, at an exchange ratio of one Common Share, or one
one-thousandth of a Preferred Share (or of a share of a class or series of the Company’s preferred
stock having equivalent rights, preferences and privileges), per Right (subject to adjustment).

Redemption

     At any time prior to the Distribution Date, the Board of Directors of the Company may redeem
the Rights, in whole but not in part, at a price of $0.01 per Right (the “Redemption
Price”). The redemption of the Rights may be made effective at such time on such basis with
such conditions as the Board of Directors, in its sole discretion, may establish. Immediately upon
any redemption of the Rights, the right to exercise the Rights will terminate and the only right of
the holders of Rights will be to receive the Redemption Price. Notwithstanding anything in the
Rights Agreement, the “flip-in” provision (described above) would not be triggered until the Board
of Directors’ right of redemption described in this paragraph has expired.

2

 

Expiration

     The Rights will expire on January 20, 2010, unless redeemed or exchanged prior to such
expiration date, as described above.

Amendment

     The terms of the Rights may be amended by the Board of Directors of the Company without the
consent of the holders of the Rights, except that from and after the Distribution Date no such
amendment may adversely affect the interests of the holders of the Rights (other than the Acquiring
Person).

Adjustment

     The number of outstanding Rights and the number of one one-thousandths of a Preferred Share
issuable upon exercise of each Right are subject to adjustment under certain circumstances.

Preferred Stock

     Because of the nature of the Preferred Shares’ dividend, liquidation and voting rights, the
value of the one one-thousandth interest in a Preferred Share purchasable upon exercise of each
Right should approximate the value of one Common Share.

Rights of Holders

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

Further Information

     A
copy of the Rights Agreement is attached as an Exhibit to a Current Report on Form 8-K
filed with the Securities and Exchange Commission on April 22, 2009. A copy of the Rights
Agreement is available free of charge from the Company. This summary description of the Rights does
not purport to be complete and is qualified in its entirety by reference to the Rights Agreement,
which is hereby incorporated herein by reference.

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]