Document:

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                                                                     Exhibit 4.5

               THE NATIONAL CITY SAVINGS AND INVESTMENT PLAN NO. 3

                             (Effective May 1, 2001)

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               THE NATIONAL CITY SAVINGS AND INVESTMENT PLAN NO. 3

                  National City Corporation, a Delaware corporation, hereby
adopts this profit sharing plan to be known as The National City Savings and
Investment Plan No. 3 (the "Plan") effective May 1, 2001.

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                   ARTICLE I. - DEFINITIONS AND CONSTRUCTION
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         1.1 DEFINITIONS. The following terms when used in the Plan and the
Trust Agreement with initial capital letters, unless the context clearly
indicates otherwise, shall have the following respective meanings:

         (1) ACCOUNT AND SUB-ACCOUNT: As defined in Section 5.2.

         (2) ADMINISTRATOR OR PLAN ADMINISTRATOR: The Administrator of the Plan,
as defined in ERISA Section 3(16)(A) and Code Section 414(g), shall be the
Company, which may delegate all or any part of its powers, duties and
authorities in such capacity (without ceasing to be the Administrator of the
Plan) as hereinafter provided.

         (3) BEFORE-TAX CONTRIBUTIONS: Before-Tax Contributions provided for in
Section 3.1.

         (4) BENEFICIARY: A Participant's Death Beneficiary or any other person
who, after the death of a Participant, is entitled to receive any benefit
payable with respect to such Participant.

         (5) BREAK IN SERVICE AND 1-YEAR BREAK IN SERVICE: An Employee or former
Employee incurs a Break in Service or a 1-Year Break in Service if he terminates
employment with the Controlled Group in an Employment Year and completes not
more than 500 Hours of Service in such Employment Year or in any succeeding
Employment Year.

         (6) BUSINESS DAY: Each day during which both the Trust Department of
the Trustee and the New York Stock Exchange are open for regular conduct of
business.

         (7) CAPITAL PRESERVATION FUND: (a) One of the Investment Funds provided
for under the Plan. The Capital Preservation Fund shall be invested and
reinvested principally in "Guaranteed Investment Contracts" and "Bank Investment
Contracts", as defined below, but, shall not be invested in any security or
obligations of any Controlled Group Member. Obligations

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or instruments which are appropriate investments for the Money Market Fund may
be purchased and held in the Capital Preservation Fund pending the selection and
purchase of suitable investments under the preceding sentence or for the purpose
of maintaining sufficient liquidity to provide for the payment of withdrawals,
or for transfers, from the Capital Preservation Fund and for expenses incurred
in connection with the investment and management of the Capital Preservation
Fund. Investments of the Capital Preservation Fund shall be held to maturity
under usual circumstances. The Trustee shall at all times have the
responsibility of maintaining in cash and readily marketable investments such
part of the investments of the Capital Preservation Fund as shall be deemed by
the Trustee to be necessary to provide adequately for the needs of Participants
who have amounts invested in the Capital Preservation Fund and to prevent
inequities between such Participants.

                  (b) The term, "Guaranteed Investment Contract" shall mean an
insurance contract or annuity approved by applicable state authority or which
will upon appropriate submission be so approved and which meets the following
requirements: (i) the contract agreement is for a stated period of time; (ii)
interest is guaranteed by the insurer at a fixed or predetermined rate for that
period of time; (iii) principal amounts may be distributed upon maturity of the
contract or during the contract period as provided in the contract; and (iv)
withdrawal of some or all of the principal before maturity is permitted, but
subject to such restrictions as are stated in the contract.

                  (c) The term "Bank Investment Contract" shall mean an
agreement with a federally insured bank or savings and loan association ("Bank
or S/L") pursuant to which the Trustee agrees to deposit funds of the Capital
Preservation Fund with such Bank or S/L under the following general terms and
conditions: (i) the deposit shall be a time deposit (a deposit which shall not
be payable until the passage of a stated period of time); (ii) interest shall be

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payable at a fixed or predetermined rate for that period of time; (iii)
principal amounts may be distributed at the end of the stated period of time or
prior thereto as provided in the agreement; and (iv) withdrawal of some or all
of the principal before the end of the stated period of time is permitted, but
subject to such restrictions as are stated in the agreement.

         (8) CODE: The Internal Revenue Code of 1986, as it has been and may be
amended from time to time.

         (9) COMMITTEE: The committee established by the Company, certain
powers, duties and authorities of which are provided for in Article X. The
Committee shall be a Named Fiduciary hereunder.

         (10) COMPANY: National City Corporation (a Delaware corporation) a bank
holding company located in Cleveland, Ohio. The Company shall be the Plan
Administrator and a Named Fiduciary hereunder.

         (11) CONTROLLED GROUP: The Employers and any and all other
corporations, trades and/or businesses, the employees of which, together with
Employees of an Employer, are required by Code Sections 414(b), (c), (m) or (o)
to be treated as if they were employed by a single employer.

         (12) CONTROLLED GROUP MEMBER: Each corporation or unincorporated trade
or business that is or was a member of the Controlled Group, but only during
such period as it is or was such a member of the Controlled Group.

         (13) COVERED EMPLOYEE: (a) An Employee employed by the Military Banking
Division of National City Bank of Indiana at a location within the United
States, but excluding: (i) any person employed as a student intern, (ii) any
person who is a law enforcement officer employed by a local, county or state
government and who is hired by an Employer to perform off-duty security
services, (iii) any person who is an Employee of an Employer who is included in
its

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Special Project Employee Employment classification, (iv) an Employee who is a
nonresident alien and who receives no earned income (within the meaning of Code
Section 911(d)(2)) from the Controlled Group from sources within the United
States (within the meaning of Code Section 861(a)(3)), or (v) any person who is
a leased employee (within the meaning of Section 1.1(21)).

                  (b) Notwithstanding the foregoing provisions of this
Subsection, in the event of acquisition by an Employer of all or part of the
operating assets of another business organization (which is not an Employer) or
a merger of such another business organization with an Employer, the Company
shall determine whether or not individuals who are employed in the business
operation(s) thus acquired or resulting and who would otherwise satisfy the
definition of the term Covered Employee hereunder should be considered Covered
Employees under the Plan; provided, however, that to the extent any individual
employed in such a business operation is not considered a Covered Employee
pursuant to this sentence, his employment in such business operation shall be
deemed employment in the employ of a Controlled Group Member; and, provided
further, that no action shall be taken pursuant to this sentence which would
discriminate in favor of Highly Compensated Employees.

         (14) CREDITED COMPENSATION: (a) Regular salary and regular
straight-time hourly wages paid by an Employer to an Employee. Unless otherwise
provided in the Plan, an Employee's Credited Compensation shall be calculated
prior to any reduction thereof made pursuant to a Salary Reduction Agreement
under the Plan or pursuant to any agreement under Code Section 125. In addition,
"Credited Compensation" shall include Variable Pay paid by an Employer to an
Employee; provided, however, that except as provided in the following sentence,
the amount of Variable Pay included in an Employee's Credited Compensation shall
be limited to $75,000.

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                  (a) Notwithstanding the foregoing provisions of this
Subsection, Credited Compensation of an Employee taken into account for any
purpose for any Plan Year shall not exceed the annual compensation limitation in
effect for such Year under Code Section 401(a)(17), as adjusted by the
Commissioner of Internal Revenue for increases in the cost of living in
accordance with Code Section 401(a)(17)(B). The annual compensation limitation
in effect for a calendar year applies to any period, not exceeding 12 months,
over which compensation is determined (determination period) beginning in such
calendar year. If a determination period consists of fewer than 12 months, the
annual compensation limit will be multiplied by a fraction, the numerator of
which is the number of months in the determination period, and the denominator
of which is 12.

                  (b) Any reference in this Plan to the limitation under Code
Section 401(a)(17) shall mean the annual compensation limit set forth in this
provision.

         (15) DEATH BENEFICIARY: A Participant's Spouse or, if he has no Spouse
or if his Spouse consents (in the manner hereinafter described in this
Subsection) to the designation hereinafter provided for in this Subsection, such
person or persons (natural or legal) other than, or in addition to, his Spouse
as may be designated by a Participant as his Death Beneficiary under the Plan.
Such a designation may be made, revoked or changed (without the consent of any
previously designated Death Beneficiary, except as otherwise provided herein)
only by an instrument (in form provided by the Committee) which is signed by the
Participant, which, if he has a Spouse, includes his Spouse's written consent to
the action to be taken pursuant to such instrument (unless such action results
in the Spouse being named as the Participant's sole Death Beneficiary), and
which is filed with the Committee before the Participant's death. A Spouse's
consent required by this Subsection shall be signed by the Spouse, shall
acknowledge the effect of such consent, shall be witnessed by any person
designated by the Committee as a Plan

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representative or by a notary public and shall be effective only with respect to
such Spouse. A Spouse's consent is not required if it is established to the
satisfaction of a Plan representative that the consent cannot be obtained
because there is no Spouse, because the Spouse cannot be located, or because of
such other circumstances as the Secretary of the Treasury may prescribe by
regulations. In default of such a designation and at any other time when there
is no existing Death Beneficiary designated by the Participant, his Death
Beneficiary shall be, in the following order of priority: his surviving Spouse,
his surviving children (both natural and adopted), his surviving parents or his
estate. If, under the preceding sentence, the Death Beneficiary consists of a
class of two or more persons, such persons shall share equally in benefits under
the Plan. A person designated by a Participant as his Death Beneficiary who
ceases to exist prior to or on the date of the Participant's death shall cease
to be a Death Beneficiary. If a Death Beneficiary is a natural person who dies
after the Participant's death, the Death Beneficiary shall be the estate of such
deceased Death Beneficiary. In any case in which the Committee concludes it
cannot determine whether a Death Beneficiary designated by a Participant
survived the Participant, it shall be conclusively presumed that such Death
Beneficiary died before the Participant.

         (16) DEFERRAL-ONLY PARTICIPANT: An Employee who has become and
continues to be a Deferral-Only Participant of the Plan in accordance with the
provisions of Section 2.6. A Deferral-Only Participant shall cease to be a
Deferral-Only Participant at the time he becomes a Participant in accordance
with the provisions of the Plan.

         (17) DISABILITY: The physical or mental impairment of a presumably
permanent and continuous nature which renders a Participant incapable of
performing the duties the Participant is employed to perform for his Employer
when such impairment commences, all as determined by the Committee upon the
basis of evidence submitted to it by the Participant or the Participant's
physician within a reasonable time after the Committee requests such evidence.

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         (18) EARLY RETIREMENT AGE AND EARLY RETIREMENT DATE: A Participant
shall attain Early Retirement Age upon his attainment of age 55 and completion
of 10 Employment Years and a Participant's Early Retirement Date shall be the
first day of the calendar month following the Participant's attainment of Early
Retirement Age.

         (19) ELIGIBLE EMPLOYEE: An Employee who is eligible for participation
in the Plan in accordance with the provisions of Article II.

         (20) EMPLOYEE: An employee of a Controlled Group Member and, to the
extent required by Code Section 414(n), any person who is a "leased employee" of
a Controlled Group Member. For purposes of this Subsection, a "leased employee"
means any person who, pursuant to an agreement between a Controlled Group Member
and any other person ("leasing organization"), has performed services for the
Controlled Group Member on a substantially full-time basis for a period of at
least one year, and such services are performed under the primary direction or
control of the Controlled Group Member. Contributions or benefits provided a
leased employee by the leasing organization which are attributable to services
performed for a Controlled Group Member will be treated as provided by the
Controlled Group Member. A leased employee will not be considered an Employee of
a Controlled Group Member, however, if (a) leased employees do not constitute
more than 20 percent of the Controlled Group Member's nonhighly compensated work
force (within the meaning of Code Section 414(n)(5)(C)(ii)) and (b) such leased
employee is covered by a money purchase pension plan maintained by the leasing
organization that provides (i) a nonintegrated employer contribution rate of at
least 10 percent of Credited Compensation, (ii) immediate participation and
(iii) full and immediate vesting.

         (21) EMPLOYER: National City Bank of Indiana and any other corporation
or business organization adopting the Plan pursuant to Article XII. However, in
the case of any person which adopts or has adopted the Plan and which ceases or
has ceased to exist, ceases to be

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a member of the Controlled Group or withdraws or is eliminated from the Plan, it
shall not thereafter be an Employer.

         (22) EMPLOYER CONTRIBUTIONS: Matching Employer Contributions provided
for in Section 3.5 and Qualified Nonelective Contributions provided for in
Section 3.8.

         (23) EMPLOYMENT YEAR: The 12-month period beginning on the first day an
Employee performs an Hour of Service for a Controlled Group Member after
initially becoming an Employee (or after again becoming an Employee following a
Break in Service) and each subsequent 12-month period.

         (24) ENROLLMENT DATE: The first day of any calendar month following an
Employee's completion of the eligibility requirements of Article II.

         (25) EQUITY FUND: One of the Investment Funds provided under the Plan.
The Equity Fund shall be invested and reinvested only in common or capital
stocks, or in bonds, debentures or preferred stocks convertible into common or
capital stocks, or in any partnership or limited partnership the purposes of
which are to invest or reinvest the partnership assets in any such securities,
but the Equity Fund shall not be invested in any security of a Controlled Group
Member. However, obligations or instruments which are appropriate investments
for the Money Market Fund may be purchased and held in the Equity Fund pending
the selection and purchase of suitable investments under the preceding sentence.

         (26) ERISA: The Employee Retirement Income Security Act of 1974, as
amended.

         (27) FIDUCIARY: Any person who (a) exercises any discretionary
authority or discretionary control respecting management of the Plan or
exercises any authority or control respecting management or disposition of the
Trust Fund, (b) renders investment advice for a fee or other compensation,
direct or indirect, with respect to the Trust Fund, or has authority or

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responsibility to do so, or (c) has any discretionary authority or discretionary
responsibility in the administration of the Plan or the Trust Fund. The term
"Fiduciary" shall also include any person to whom a Named Fiduciary delegates
any of its or his fiduciary responsibilities hereunder in accordance with the
provisions of the Plan or Trust Agreement as long as such designation is in
effect.

         (28) FIXED INCOME FUND: One of the Investment Funds provided under the
Plan. The Fixed Income Fund shall be invested and reinvested only in those
bonds, obligations, notes, debentures, mortgages, preferred stocks, or other
tangible or intangible property or interest in property, either real or
personal, the income or return from which is fixed, limited or determinable in
advance by the terms of the contract, document or instrument creating or
evidencing such property or interest in property, or by the terms of acquisition
thereof but shall not be invested in any security of a Controlled Group Member.
However, obligations or instruments which are appropriate investments for the
Money Market Fund may be purchased and held in the Fixed Income Fund pending the
selection and purchase of suitable investments under the preceding sentence.

         (29) HARDSHIP: Immediate and heavy financial need on the part of a
Participant for:

                  (a) expenses for medical care described in Code Section 213(d)
previously incurred by the Participant, the Participant's Spouse, or any
dependents of the Participant (as defined in Code Section 152), or expenses
necessary for these persons to obtain such medical care;

                  (b) costs directly related to the purchase (excluding mortgage
payments) of a principal residence for the Participant;

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                  (c) the payment of tuition and related educational fees for
the next twelve months of post-secondary education for the Participant, the
Participant's Spouse, the Participant's children or the Participant's dependents
(as defined in Code Section 152);

                  (d) payments necessary to prevent the eviction of the
Participant from his principal residence or foreclosure on the mortgage of the
Participant's principal residence;

                  (e) repayment when due of any indebtedness incurred by the
Participant or any dependents of the Participant (as defined in Code Section
152) to avoid insolvency; or

                  (f) any other financial need which the Commissioner of
Internal Revenue, through the publication of revenue rulings, notices and other
documents of general applicability, may from time to time designate as a deemed
immediate and heavy financial need as provided in Treasury Regulations Section
1.401(k)-l(d)(2)(iv)(C).

         (30) HIGHLY COMPENSATED EMPLOYEE: (a) For a particular Plan Year, any
Employee who, (i) during the current or the preceding Plan Year, was at any time
a 5 percent owner (as such term is defined in Code Section 416(i)(1)), or (ii)
for the preceding Plan Year received compensation from the Controlled Group in
excess of the amount in effect for such Plan Year under Code Section
414(q)(1)(B) and was in the top paid group of Employees for such Plan Year;

                  (b) "Highly Compensated Employee" shall include a former
Employee whose Termination of Employment occurred prior to the Plan Year and who
was a Highly Compensated Employee for the Plan Year in which his Termination of
Employment occurred or for any Plan Year ending on or after his 55th birthday.

                  (c) For the purposes of this Subsection, the term
"compensation" shall mean an Employee's compensation under Section 4.9(3)
(subject to the limitations described in

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Section 1.1(14)(b)) and the term "top-paid group of Employees" shall mean that
group of Employees of the Controlled Group consisting of the top 20 percent
(20%) of such Employees when ranked on the basis of compensation paid by the
Controlled Group during the Plan Year.

         (31) HOUR OF SERVICE: (a) An Employee shall be credited with one Hour
of Service for each hour for which he is paid or entitled to payment by a
Controlled Group Member: (i) for the performance of duties as an Employee; (ii)
for other than the performance of duties (for reasons such as vacation, sickness
or disability); or (iii) for back pay, irrespective of mitigation of damages,
awarded or agreed to by a Controlled Group Member. With respect to each Employee
whose compensation is not determined on the basis of certain amounts for each
hour worked during a given period and for whom hours of work are not required to
be counted and recorded by any federal law (other than ERISA), Hours of Service
shall be credited on the basis of 190 Hours of Service per month if he is paid
on a monthly basis, 45 Hours of Service per week if he is paid on a weekly
basis, or 10 Hours of Service per day if he is paid on a daily basis, for each
month, week or day (as the case may be) for which he receives compensation from
any Controlled Group Member. Employees shall be credited with Hours of Service
at the rates described in the preceding sentence for leaves of absence of up to
12 months or such longer period as may be required by law to be counted for this
purpose. No hour shall be counted more than once or be counted as more than one
Hour of Service, even though more than straight-time pay may be paid for it.

                  (b) If an Employee is absent from work for any period in
accordance with an Employer's approved maternity or paternity leave policy (i)
by reason of the pregnancy of such Employee, (ii) by reason of the birth of a
child of such Employee, (iii) by reason of the placement of a child with such
Employee, (iv) for purposes of caring for a child for a period beginning
immediately following the birth or placement of such child, of (v) by reason of
any

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absence granted or taken in partial or complete compliance with The Family and
Medical Leave Act of 1993 or required to be provided in accordance with the
Americans With Disabilities Act, such Employee shall be credited with Hours of
Service (solely for the purposes of determining whether he or she has incurred a
Break in Service) equal to the number of Hours of Service which otherwise would
normally have been credited to him but for such absence, or if the number of
such Hours of Service is not determinable, 8 Hours of Service per normal workday
of such absence, provided, however, that the total number of Hours of Service
credited to an Employee under this paragraph by reason of any pregnancy, birth
or placement shall not exceed 501 Hours of Service. Hours of Service credited to
an Employee pursuant to this paragraph shall be treated as Hours of Service (A)
only in the Employment Year in which an absence from work described in this
paragraph begins, if the Employee would be prevented from incurring a Break in
Service in such Employment Year solely because he is credited with Hours of
Service during such absence pursuant to this paragraph, or (B) in any other
case, in the immediately following Employment Year. Hours of Service shall not
be credited to an Employee under this paragraph unless the Employee furnishes to
the Committee such timely information as the Committee may reasonably require to
establish that the Employee's absence from work is for a reason specified in
this paragraph and the number of days for which there was such an absence.

         (32) INVESTMENT FUND OR FUNDS: The Capital Preservation Fund, Equity
Fund, Fixed Income Fund, NCC Stock Fund, Money Market Fund and any other fund
established by the Committee under Section 5.1.

         (33) INVESTMENT MANAGER: The person who, with respect to an Investment
Fund, has the discretion to determine which assets in such Fund shall be sold
(or exchanged) and what investments shall be acquired for such Fund. Such person
must (a) be either registered as an investment advisor under the Investment
Advisors Act of l940, a bank as defined thereunder or an

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insurance company qualified to manage, acquire or dispose of Plan assets under
the laws of more than one state, and (b) acknowledge in writing that he or it is
a Fiduciary with respect to the Plan.

         (34) LOAN ACCOUNT: The separate recordkeeping account within a
Participant's Account established by the Administrator pursuant to Section 6.13.

         (35) MATCHING ALLOCATION: Any allocation made to a Participant's
Account on account of the Participant's Before-Tax Contributions.

         (36) MATCHING EMPLOYER CONTRIBUTIONS: Employer Contributions provided
for in Section 3.5.

         (37) MONEY MARKET FUND: One of the Investment Funds provided for under
the Plan. The Money Market Fund shall be invested and reinvested principally in
bonds, notes or other evidence of indebtedness which are payable on demand
(including variable amount notes) or which have a maturity date not exceeding
one day after the date of purchase by such Fund or, in case of an investment
(pursuant to Section 5.1(2)(a)) in an NCB Investment Trust Fund, which are
payable by such NCB Investment Trust Fund.

         (38) NAMED FIDUCIARIES: The Committee, the Company, the Investment
Manager, the Trustee, the Participants to the extent provided in Article XV, and
each other person designated as a Named Fiduciary by the Committee pursuant to
the power of delegation reserved to the Committee in Article X.

         (39) NCB INVESTMENT TRUST FUND: Any fund now or hereafter established
under the trust instrument executed by National City Bank on December 4, 1956,
and now entitled DECLARATION OF TRUST ESTABLISHING NCC INVESTMENT FUND FOR
RETIREMENT TRUSTS, as such trust instrument has been or may be amended and/or
restated.

         (40) NCC STOCK: Common Stock of National City Corporation, a Delaware
corporation.

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         (41) NCC STOCK FUND: One of the Investment Funds provided for under the
Plan. The NCC Stock Fund shall be invested and reinvested only in shares of
common stock issued by the Company. However, obligations or instruments which
are appropriate investments for the Money Market Fund may be purchased and held
in the NCC Stock Fund pending the purchase of shares of such common stock.

         (42) NORMAL RETIREMENT AGE AND NORMAL RETIREMENT DATE: A Participant
shall attain Normal Retirement Age upon his attainment of age 65 and a
Participant's Normal Retirement Date shall be the first day of the calendar
month following the Participant's attainment of Normal Retirement Age.

         (43) NPI STOCK: Common Stock of National Processing, Inc., an Ohio
Corporation.

         (44) NPI STOCK FUND: One of the Investment Funds provided under the
Plan. The majority of the assets of the NPI Stock Fund will normally be invested
in shares of NPI Stock. However, the NPI Stock Fund will also hold cash for fund
liquidity purposes. Pending the purchase of NPI Stock, the fund may also invest
in obligations or instruments which are appropriate investments for the Money
Market Fund. Depending on the frequency and volume with which NPI Stock is
publicly traded, the percentage of NPI Stock Fund assets held in cash or money
market instruments may be significant.

         (45) PARTICIPANT: An Employee or former Employee who has become and
continues to be a Participant of the Plan in accordance with the provisions of
Article II or a Covered Employee who has made a Transfer Contribution.

         (46) PLAN: The National City Savings and Investment Plan No. 3, the
terms and provisions of which are herein set forth, as the same may be amended,
supplemented or restated from time to time.

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         (47) PLAN YEAR: A calendar year.

         (48) QUALIFIED NONELECTIVE CONTRIBUTIONS: A contribution made by an
Employer pursuant to Section 3.8 that (a) Participants eligible to share therein
may not elect to receive in cash until distribution from the Plan, (b) are
nonforfeitable when made, (c) are distributable only in accordance with the
distribution rules applicable to Before-Tax Contributions and (d) are paid to
the Trust Fund during the Plan Year for which made or within the time following
the close of such Plan Year which is prescribed by law for the filing by an
Employer of its federal income tax return (including extensions thereof).

         (49) SALARY REDUCTION AGREEMENT: An arrangement pursuant to which an
Employee agrees to reduce, or to forego an increase in, his Credited
Compensation and his Employer agrees to contribute to the Trust the amount so
reduced or foregone as a Before-Tax Contribution.

         (50) SPECIAL PROJECT EMPLOYEE: An Employee hired for the performance of
duties relating to a specific, non-recurring project, and who is advised at or
prior to the commencement of his or her employment that such employment will
automatically terminate upon the completion of such project.

         (51) SPOUSE: The person to whom an Employee is legally married at the
specified time; provided, however, that a former Spouse may be treated as a
Spouse or surviving Spouse to the extent required under the terms of a
"qualified domestic relations order" (as such term is defined in Code Section
414(p)).

         (52) TRANSFER CONTRIBUTIONS: The Contributions provided for in Section
3.4.

         (53) TRUST AND TRUST FUND: The trust estate held by the Trustee under
the provisions of the Plan and the Trust Agreement, without distinction as to
principal or income.

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         (54) TRUST AGREEMENT: The Trust Agreement or Agreements between the
Company and the Trustee or Trustees, as such Trust Agreement or Agreements may
be amended or restated from time to time, or any trust agreement or agreements
superseding the same. Each Trust Agreement is hereby incorporated in the Plan by
reference.

         (55) TRUSTEE: The trustee or trustees under the Trust Agreement or its
or their successor or successors in trust under such Trust Agreement.

         (56) VALUATION DATE: The last Business Day of each calendar month and
any other Business Day(s) on which the Committee determines that the Investment
Funds shall be valued.

         (57) VESTED INTEREST: The entire amount of a Participant's Account
which has not previously been withdrawn by him or distributed to or for him and
which is nonforfeitable. All amounts credited to a Participant's Account shall
be 100% nonforfeitable at all times.

         (58) VARIABLE PAY: Except as provided in the following sentence, the
term "Variable Pay" shall mean any overtime pay, bonuses, commissions, incentive
compensation payments or other forms of special compensation paid in cash by an
Employer to an Employee. Automobile allowances, parking allowances, relocation
expense payments, tuition reimbursements, signing bonuses, business expense
reimbursements, the value of flex-vacation sold, Employer-paid club dues, cash
payments upon the exercise of stock appreciation rights, cash payments upon the
exercise of or disposition of stock options, dividends paid upon restricted
stock, cash payments under any long-term incentive plan, deferred cash payments,
Mexican tax refunds, medical supplemental adjustment payments and amounts not
taxable to an Employee shall not be included in Variable Pay.

         1.2 CONSTRUCTION. (1) Unless the context otherwise indicates, the
masculine wherever used in the Plan or Trust Agreement shall include the
feminine and neuter, the singular

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shall include the plural and words such as "herein", "hereof", "hereby",
"hereunder" and words of similar import refer to the Plan as a whole and not to
any particular part thereof.

         (2) Where headings have been supplied to portions of the Plan and the
Trust Agreement (other than the headings to the Subsections in Section 1.1),
they have been supplied for convenience only and are not to be taken as limiting
or extending the meaning of any of such portions of such documents.

         (3) Wherever the word "person" appears in the Plan, it shall refer to
both natural and legal persons.

         (4) A number of the provisions hereof and of the Trust Agreement are
designed to contain provisions required or contemplated by certain federal laws
and/or regulations thereunder. All such provisions herein and in the Trust
Agreement are intended to have the meaning required or contemplated by such
provisions of such law or regulations and shall be construed in accordance with
valid regulations and valid published governmental rulings and interpretations
of such provisions. In applying such provisions hereof or of the Trust
Agreement, each Fiduciary may rely (and shall be protected in relying) on any
determination or ruling made by any agency of the United States Government that
has authority to issue regulations, rulings or determinations with respect to
the federal law thus involved.

         (5) Except to the extent federal law controls, the Plan and Trust
Agreement shall be governed, construed and administered according to the laws of
the State of Ohio. All persons accepting or claiming benefits under the Plan or
Trust Agreement shall be bound by and deemed to consent to their provisions.

                                       18
<PAGE>   20

                  ARTICLE II. - ELIGIBILITY AND PARTICIPATION
                  -------------------------------------------

         2.1 ELIGIBLE EMPLOYEES. An Employee shall become an Eligible Employee
under the Plan on the first Enrollment Date on which he meets the following
requirements:

                  (1) he is a Covered Employee (including such an Employee who
     is on a leave of absence),

                  (2) he has attained age 21, and

                  (3) he has completed a period of at least one Employment Year.

         2.2 COMMENCEMENT OF PARTICIPATION. Any Eligible Employee described in
Section 2.1 may enroll as a Participant in the Plan on the Enrollment Date on
which he is initially eligible or on any subsequent Enrollment Date by either
(A) filing with an Employer or the Committee in the month preceding such Date
(in accordance with rules established by the Committee) an enrollment form
prescribed by the Committee which form shall include (1) the effective date on
which the Eligible Employee is to become a Participant, (2) his election,
commencing on or after such effective date, to have Before-Tax Contributions
made by or for him to the Trust, (3)(a) his authorization, if any, to his
Employer to withhold from his unreduced Credited Compensation for each pay
period, commencing on or after such effective date, any designated Before-Tax
Contributions and to pay the same to the Trust Fund and/or (b) his agreement, if
any, commencing on or after such effective date, to reduce, or to forego an
increase in, his unreduced Credited Compensation and to have his Employer
contribute the same as Before-Tax Contributions to the Trust Fund, and (4) his
direction that the Before-Tax Contributions made by or for him be invested in
any one of the investment options permitted by Section 5.5, or (B) if available
to the Participant, enrolling as a Participant in the Plan by means of a voice
response telephonic system, established and supervised by the Committee, which

                                       19
<PAGE>   21

provides for the making of decisions (1) through (4) above by telephonic
communication, confirmed in a writing mailed to the Participant within three
days.

         2.3 DURATION OF PARTICIPATION. (1) Once an Eligible Employee becomes a
Participant, he shall remain a Participant so long as he continues to be an
Employee whether or not he continues to be an Eligible Employee, provided,
however, that if a Participant ceases to be an Eligible Employee (while
remaining an Employee), Before-Tax Contributions may not be made by or for him
pursuant to Section 3.1 until he again becomes an Eligible Employee and he again
enrolls as a Participant pursuant to Sections 2.2 and 3.1.

         (2) If an Account continues to be maintained for a former Employee
after his termination of employment with the Controlled Group, such former
Employee shall remain a Participant for all purposes of the Plan, other than for
the purposes of making, or having his Employer make, Participant or Employer
Contributions hereunder.

         2.4 ELIGIBILITY AFTER REEMPLOYMENT. If an Employee whose employment
with the Controlled Group was terminated is later reemployed, such earlier
period of employment shall be taken into account in computing eligibility to
participate. If such Employee satisfies the eligibility requirements of Section
2.1 (or, with respect to the Deferral-Only Participation, the eligibility
requirements of Section 2.6) as of date of his rehire, such Employee shall
become a Participant (or Deferral-Only Participant, as applicable) on the
Enrollment Date after he enrolls as a Participant pursuant to Section 2.2 (or,
as a Deferral-Only Participant, pursuant to Section 2.6).

         2.5 SPECIAL RULES FOR TRANSFERRED PARTICIPANTS. (1) In the event that a
Participant ceases to be an Eligible Employee hereunder due to a transfer of
employment to a classification of Employees that is eligible to participate in
another profit sharing retirement plan maintained by a Controlled Group Member
which is qualified under Code Sections 401(a) and 401(k) (a "Comparable Savings
Plan"), such Participant's Account shall be transferred to the

                                       20
<PAGE>   22

Comparable Savings Plan and such Participant shall no longer be considered a
Participant hereunder. Such transfer shall occur as of the day of such transfer
of employment.

         (2) In the event that an individual who is a participant in a
Comparable Savings Plan shall become an Eligible Employee hereunder, (a) any
elections made by the individual on his enrollment form under the Comparable
Savings Plan shall continue in effect under this Plan as of the date he becomes
an Eligible Employee, until changed or modified in accordance with the terms
hereof, (b) such individual's account from the Comparable Savings Plan shall be
transferred to his Account hereunder as of the day of such transfer of
employment, (c) the assets of such account shall be allocated to comparable
Sub-Accounts under this Plan and such transfer shall not be considered a
Transfer Contribution hereunder, (d) the provisions of any Appendix to such
Comparable Savings Plan which apply to any asset transferred to this Plan shall
continue to apply to such asset, and (e) to the extent required by applicable
law, the provisions of such Comparable Savings Plan shall continue to apply to
the assets transferred to this Plan.

         2.6 DEFERRAL-ONLY PARTICIPATION. Notwithstanding the provisions of
Section 2.2 above, an Employee who would be an Eligible Employee as described in
Section 2.1 but for his failure to satisfy the requirement under Subsection (3)
thereof, may enroll as a Deferral-Only Participant in the Plan on the first
Enrollment Date following the thirtieth (30th) day after he first performs an
Hour of Service for a Controlled Group Member or on any subsequent Enrollment
Date (other than any such Enrollment Date on which the Employee could enroll as
a Participant under Section 2.2 above) by either filing the forms described in
Section 2.2(A) or by enrolling by means of the voice response telephonic system
described in Section 2.2(B). A Deferral-Only Participant shall be entitled to
have Before-Tax Contributions made on his behalf in accordance with the
provisions of 3.1, 3.2 and 3.3 of the Plan. A Deferral-Only Participant shall
not be entitled to any Matching Employer Contributions under Section 3.6 of the
Plan (and no Before-

                                       21
<PAGE>   23

Tax Contributions by a Deferral-Only Participant shall be taken into account for
purposes of calculating the amount of any Matching Employer Contributions under
Section 3.5 of the Plan). A Deferral-Only Participant shall become a Participant
for purposes of Matching Employer Contributions as of the first Enrollment Date
following his completion of one Employment Year. For all other purposes, a
Deferral-Only Participant shall be treated as a Participant under the Plan.

                                       22
<PAGE>   24

                          ARTICLE III. - CONTRIBUTIONS
                          ----------------------------

         3.1 BEFORE-TAX CONTRIBUTIONS. Upon enrollment pursuant to Section 2.2,
a Participant shall agree pursuant to a Salary Reduction Agreement to have his
Employer make Before-Tax Contributions to the Trust of up to 12% of his
unreduced Credited Compensation (in 1% increments) by means of pay period
payments of the elected percentage. If a Participant's Before-Tax Contributions
must be reduced to comply with the requirements of Section 4.1 or 4.2 or the
requirements of applicable law, his Before-Tax Contributions shall be reduced to
the next highest 1% increment of his unreduced Credited Compensation permitted
by such Section or law.

         3.2 PAYMENTS TO TRUSTEE. Before-Tax Contributions made for a
Participant shall be transmitted by his Employer to the Trustee as soon as
practicable, but in any event not later than 30 days after the end of the
calendar month in which such Contributions are withheld or would otherwise have
been paid to the Participant.

         3.3 CHANGES IN, AND SUSPENSIONS OF, BEFORE-TAX CONTRIBUTIONS. (1) The
percentage or percentages designated by a Participant pursuant to Section 3.1
shall continue in effect, notwithstanding any changes in the Participant's
Credited Compensation. A Participant may, however, in accordance with the
percentages permitted by Section 3.1, change the percentage of his Before-Tax
Contributions as often as may be permitted by the Committee by either (A) the
completion and proper filing (pursuant to Committee rules) of election change
forms, or (B) if available to the Participant, effecting such change by means of
a voice response telephonic system, established and supervised by the Committee,
confirmed in a writing mailed to the Participant within three days.

         (2) A Participant may at any time suspend his Before-Tax Contributions
by notifying the Committee or his Employer, pursuant to Committee rules, of his
desire to suspend such contributions. The eligibility for, and entitlement to,
future Before-Tax Contributions of a

                                       23
<PAGE>   25

Participant who has suspended such Contributions shall be limited as provided in
rules established by the Committee.

         (3) The rules established by the Committee under this Section shall be
established and administered in a uniform and nondiscriminatory fashion and may
be amended from time to time in the sole and absolute discretion of the
Committee.

         3.4 TRANSFER CONTRIBUTIONS. (1) The Trustee shall, at the direction of
the Committee, receive and thereafter hold and administer as a part of the Trust
Fund for a Covered Employee (whether or not he has met the eligibility
requirements of Article II) all cash and other property which may be transferred
to the Trustee from a trust held under another plan in which the Covered
Employee was a participant, which meets the requirements of Code Sections 401(a)
and 501(a) (each such trust and plan being hereinafter in this Section called a
"Comparable Plan"). For purposes of this Subsection but not the following
Subsection (2), either the Comparable Plan must not be subject to the survivor
annuity requirements of Code Section 401(a)(11) or the transfer must comply with
the "elective transfer" requirements of Treasury Regulation Section 1.411(d)-4.

         (2) The Trustee shall also, at the direction of the Committee, accept
direct rollovers to the Plan pursuant to Code Sections 401(a)(31) and 402(c),
from any trust held under a Comparable Plan in which the Employee was a
participant provided that such direct rollover is made by a Covered Employee.
The Plan will accept such rollover contributions either entirely in cash or, in
a combination of cash and such other property (other than cash) as is acceptable
to the Committee.

         (3) A Participant who has ceased to be an Employee and who is eligible
for a lump sum distribution from the National City Non-Contributory Retirement
Plan may elect to transfer such lump sum distribution from the National City
Non-Contributory Retirement Plan to

                                       24
<PAGE>   26

the Plan in a direct rollover. The Trustee shall receive and thereafter hold and
administer as part of the Trust Fund for a Participant all cash transferred
pursuant to this Subsection (3).

         (4) Contributions made to the Trust Fund pursuant to Subsections (1),
(2) and (3) hereof shall be referred to as "Transfer Contributions." Transfer
Contributions will be permitted only in amounts in excess of $200 and shall be
in cash unless the Committee approves a Transfer Contribution of other property.
Such Transfer Contributions shall be allocated to such existing or new
Sub-Account(s) as the Trustee shall determine and shall be invested as specified
in Section 5.5. Subject to other provisions of the Plan and Trust Agreement, the
Trustee shall have authority to sell or otherwise convert to cash any property
transferred to it pursuant to this Section.

         3.5 AMOUNT OF MATCHING EMPLOYER CONTRIBUTIONS. Subject to the
provisions of the Plan and Trust Agreement, each Employer shall, as and to the
extent it lawfully may, contribute to the Trust Fund on account of each month,
Matching Employer Contributions in an amount equal to 115% of the Before Tax
Contributions for each such month for each Participant with respect to the first
6% of each such Participant's Credited Compensation. The Employer shall deliver
its Matching Employer Contribution to the Trust Fund at the same time as the
Before-Tax Contributions to which the Matching Employer Contributions relate are
delivered.

         3.6 ALLOCATION OF MATCHING EMPLOYER CONTRIBUTIONS. Each Employer's
Matching Employer Contributions made for a month shall be allocated and credited
to the Account of each Participant for whom Before-Tax Contributions were made
during such month, with each such Participant being credited with a portion of
the Employer's Matching Employer Contribution equal to the applicable percentage
(determined under Section 3.5) of his Before-Tax Contributions for the preceding
calendar month.

                                       25
<PAGE>   27

         3.7 REDUCTION OF EMPLOYER CONTRIBUTIONS. The amount of Employer
Contributions determined to be payable to the Trust Fund shall be reduced by
amounts which have been forfeited or held in a suspense account in accordance
with the terms of the Plan.

         3.8 QUALIFIED NONELECTIVE CONTRIBUTIONS. For any Plan Year, the
Employers may make a Qualified Nonelective Contribution (1) in such amount, (2)
for such Participants who are not Highly Compensated Employees for such Plan
Year and (3) in such proportions among such Participants as such Employer shall
deem necessary to cause Section 4.2 or 4.4 to be satisfied for such Plan Year.
Qualified Nonelective Contributions may be made irrespective of whether the
Employer has net earnings or retained earnings, and may be made in cash or other
property. Each Employer shall designate to the Trustee the Plan Year for which
and the Participants for whom any Qualified Nonelective Contribution is made.

         3.9 ALLOCATION OF QUALIFIED NONELECTIVE CONTRIBUTIONS. Qualified
Nonelective Contributions shall be allocated to the Accounts of Participants who
are designated by an Employer as eligible to share therein in such amounts as
such Employer directs.

         3.10 CONTRIBUTIONS IN NCC STOCK. Contributions made by the Employers
hereunder shall be made in cash or in shares of NCC Stock. If a Contribution is
made in the form of NCC Stock, such contribution shall be equal to the fair
market value of such NCC Stock. Fair market value of NCC Stock shall be equal to
the last quoted price of such Stock on the date of contribution.

                                       26
<PAGE>   28

         ARTICLE IV. - LIMITATIONS ON CONTRIBUTIONS
         ------------------------------------------

         4.1 EXCESS DEFERRALS. (1) Notwithstanding the provisions of Article
III, a Participant's Before-Tax Contributions for any taxable year of such
Participant shall not exceed the limitation in effect under Code Section 402(g).
Except as otherwise provided in this Section, a Participant's Before-Tax
Contributions for purposes of this Section shall include (a) any employer
contribution made under any qualified cash or deferred arrangement as defined in
Code Section 401(k) to the extent not includible in gross income for the taxable
year under Code Section 402 (a)(8) (determined without regard to Code Section
402(g)), (b) any employer contribution to the extent not includible in gross
income for the taxable year under Code Section 402(h)(1)(B) (determined without
regard to Code Section 402(g)) and (c) any employer contribution to purchase an
annuity contract under Code Section 403(b) under a salary reduction agreement
within the meaning of Code Section 3121(a)(5)(D).

         (2) In the event that a Participant's Before-Tax Contributions exceed
the amount described in Subsection (1) of this Section (hereinafter called the
"excess deferrals"), such excess deferrals (and any income allocable thereto)
shall be distributed to the Participant by April 15 following the close of the
taxable year in which such excess deferrals occurred if (and only if), by April
15 of such taxable year the Participant (a) allocates the amount of such excess
deferrals among the plans under which the excess deferrals were made and (b)
notifies the Committee of the portion allocated to this Plan.

         (3) In, the event that a Participant's Before-Tax Contributions under
this Plan exceed the amount described in Subsection (1) of this Section, or in
the event that a Participant's Before-Tax Contributions made under this Plan do
not exceed such amount but he allocates a portion of his excess deferrals to his
Before-Tax Contributions made to this Plan, Matching Employer Contributions, if
any, made with respect to such Before-Tax Contributions (and any

                                       27
<PAGE>   29

income allocable thereto) shall be forfeited and applied to reduce subsequent
Matching Employer Contributions required under the Plan.

         4.2 EXCESS BEFORE-TAX CONTRIBUTIONS.

         (1) Notwithstanding the provisions of Article III,

                  (a) the actual deferral percentage (as defined in Subsection
     (2) of this Section) for the group of Highly Compensated Eligible Employees
     (as defined in Subsection (3) of this Section) for any Plan Year shall not
     exceed the actual deferral percentage for all other Eligible Employees for
     such Plan Year multiplied by 1.25, or

                  (b) the excess of the actual deferral percentage for the group
     of Highly Compensated Eligible Employees for such Plan Year over the actual
     deferral percentage for all other Eligible Employees for such Plan Year
     shall not exceed 2 percentage points, and the actual deferral percentage
     for the group of Highly Compensated Eligible Employees for such Plan Year
     shall not exceed the actual deferral percentage for all other Eligible
     Employees for such Plan Year multiplied by 2.

If two or more plans which include cash or deferred arrangements are considered
as one plan for purposes of Code Sections 401(a)(4) or 410(b), such arrangements
included in such plans shall be treated as one arrangement for the purposes of
this Subsection; and if any Highly Compensated Eligible Employee is a
participant under two or more cash or deferred arrangements of the Controlled
Group, all such arrangements shall be treated as one cash or deferred
arrangement for purposes of determining the deferral percentage with respect to
such Highly Compensated Eligible Employee.

         (2) For the purposes of this Section, the actual deferral percentage
for a specified group of Eligible Employees for a Plan Year shall be the average
of the ratios (calculated separately for each Eligible Employee in such group)
of (a) the amount of Before-Tax

                                       28
<PAGE>   30

Contributions and, at the election of an Employer, any Qualified Nonelective
Contributions actually paid to the Trust for each such Eligible Employee for
such Plan Year (including any "excess deferrals" described in Section 4.1) to
(b) the Eligible Employee's compensation for such Plan Year. For the purposes of
this Section and Section 4.3, the term "compensation" shall mean the sum of an
Eligible Employee's compensation under Section 4.9(3) and his Before-Tax
Contributions (subject to the limitations described in Section 1.1(14)(b)).

         (3) For the purposes of this Section, the term "Highly Compensated
Eligible Employee" for a particular Plan Year shall mean any Highly Compensated
Employee who is an Eligible Employee.

         (4) In the event that excess contributions (as such term is hereinafter
defined) are made to the Trust for any Plan Year, then, prior to March 15 of the
following Plan Year, such excess contributions (and any income allocable
thereto) shall be distributed to the Highly compensated Eligible Employees on
the basis of the respective portions of the excess contributions attributable to
each such Eligible Employee. For the purposes of this Subsection the term
"excess contributions" shall mean, for any Plan Year, the excess of (a) the
aggregate amount of Before-Tax Contributions actually paid to the Trust on
behalf of Highly Compensated Eligible Employees for such Plan Year over (b) the
maximum amount of such Before-Tax Contributions permitted for such Plan Year
under Subsection (1) of this Section, determined by reducing Before-Tax
Contributions made on behalf of Highly Compensated Eligible Employees in order
of the dollar amount of Before-Tax Contributions made on behalf of Highly
Compensated Eligible Employees beginning with the highest of Before-Tax
Contributions.

         (5) Matching Allocations made with respect to a Participant's excess
contributions (and any income allocable thereto) shall be forfeited and applied
to reduce subsequent Matching Employer Contributions required under the Plan.

                                       29
<PAGE>   31

         (6) The limitations set forth in subsections (1), (2), (3), (4) and (5)
above shall not apply to any Participant to the extent that the Plan satisfies
the alternative method for meeting the actual deferral percentage test as set
forth in Code Section 401(k)(12). At least 30 days, but not more than 90 days
before the beginning of each Plan Year, the Company will provide each Eligible
Employee a comprehensive notice of the employee's rights and obligations under
the Plan, written in a manner calculated to be understood by the average
Eligible Employee. If an employee becomes eligible after the 90th day before the
beginning of the Plan Year and does not receive the notice for that reason, the
notice must be provided no more than 90 days before the employee becomes
eligible but not later than the date the employee become eligible.

         4.3 EXCESS MATCHING ALLOCATIONS. (1) Notwithstanding the provisions of
Article III, the contribution percentage (as defined in Subsection (2) of this
Section) for the group of Highly Compensated Eligible Employees (as defined in
Section 4.2(3)) for such Plan Year shall not exceed the greater of (a) 125
percent of the contribution percentage for all other Eligible Employees or (b)
the lesser of 200 percent of the contribution percentage for all other Eligible
Employees, or the contribution percentage for all other Eligible Employees plus
2 percentage points. If two or more plans of the Controlled Group to which
matching contributions, employee after-tax contributions or before-tax
contributions (as defined in Section 4.1(1)) are made are treated as one plan
for purposes of Code Section 410(b), such plans shall be treated as one plan for
purposes of this Subsection; and if a Highly Compensated Eligible Employee
participates in two or more plans of the Controlled Group to which such
contributions are made, all such contributions shall be aggregated for purposes
of this Subsection.

         (2) For the purposes of this Section, the contribution percentage for a
specified group of Eligible Employees for a Plan Year shall be the average of
the ratios (calculated separately for each Eligible Employee in such group) of
(a) the Matching Allocations made under

                                       30
<PAGE>   32

the Plan for each such Eligible Employee for such Plan Year to (b) the Eligible
Employee's compensation (as defined, in Section 4.2(2)) for such Plan Year.

         (3) In the event that excess aggregate contributions (as such term is
hereinafter defined) are made to the Trust for any Plan Year, then, prior to
March 15 of the following Plan Year, such excess contributions (and any income
allocable thereto) shall be forfeited (if forfeitable) and applied as provided
in Section 3.7 or (if not forfeitable) shall be distributed to the Highly
Compensated Eligible Employees on the basis of the respective portions of the
excess contributions attributable to each such Eligible Employee. For the
purposes of this Subsection, the term "excess aggregate contributions" shall
mean, for any Plan Year, the excess of (a) the aggregate amount of the Matching
Allocations made for Highly Compensated Eligible Employees for such Plan Year
over (b) the maximum amount of such Matching Allocations permitted for such Plan
Year under Subsection (1) of this Section, determined by reducing Matching
Allocations made for Highly Compensated Eligible Employees in order of the
dollar amount of such Matching Allocations made for Highly Compensated Eligible
Employees beginning with the highest dollar amount of such Matching Allocations.

         (4) The determination of excess aggregate contributions under this
Section shall be made after (a) first determining the excess deferrals under
Section 4.1 and (b) then determining the excess contributions under Section 4.2.

         (5) The limitations set forth in subsections (1), (2), (3) and (4)
above shall not apply to any Participant to the extent that the Plan satisfies
one of the alternative methods for meeting the contribution percentage test as
set forth in Code Sections 401(m)(10) and 401(m)(11).

         4.4 MULTIPLE USE OF THE ALTERNATIVE LIMITATION.

                                       31
<PAGE>   33

         (1) Notwithstanding the provisions of Article III or the foregoing
provisions of this Article IV, if, after the application of Sections 4.1, 4.2
and 4.3, the sum of the actual deferral percentage and the contribution
percentage for the group of Highly Compensated Eligible Employees (as defined in
Section 4.2(3)) exceeds the aggregate limit (as defined in Subsection (2) of
this Section), then the contributions made for such Plan Year for Highly
Compensated Eligible Employees will be reduced so that the aggregate limit is
not exceeded. Such reductions shall be made first in Before-Tax Contributions
(but only to the extent that they are not matched by Matching Allocations) and
then in Matching Allocations. Reductions in contributions shall be made in the
manner provided in Section 4.2 or 4.3, as applicable. The amount by which each
such Highly Compensated Eligible Employee's contribution percentage amount is
reduced shall be treated as an excess contribution or an excess aggregate
contribution under Section 4.2 or 4.3, as applicable. For the purposes of this
Section, the actual deferral percentage and contribution percentage of the
Highly Compensated Eligible Employees are determined after any reductions
required to meet those tests under Sections 4.2 and 4.3. Notwithstanding the
foregoing provisions of this Section, no reduction shall be required by this
Subsection if either (a) the actual deferral percentage of the Highly
Compensated Eligible Employees does not exceed 1.25 multiplied by the actual
deferral percentage of the non-Highly Compensated Eligible Employees, or (b) the
contribution percentage of the Highly Compensated Eligible Employees does not
exceed 1.25 multiplied by the contribution percentage of the non-Highly
Compensated Eligible Employees.

         (2) For purposes of this Section, the term "aggregate limit" means the
sum of (a) 125% of the greater of (i) the actual deferral percentage of the
non-Highly Compensated Eligible Employees for the Plan Year, or (ii) the
contribution percentage of the non-Highly Compensated Eligible Employees for the
Plan Year, and (b) the lesser of (A) 200% of, or (B) two (2) plus, the lesser of
such actual deferral percentage or contribution percentage. If it would

                                       32
<PAGE>   34

result in a larger aggregate limit, the word "lesser" is substituted for the
word "greater" in part (a) of this Subsection, and the word "greater" is
substituted for the word "lesser" the second place such word appears in part (b)
of this Subsection.

         (3) The limitations set forth in subsections (1) and (2) above shall
not apply to any Participant to the extent that the Plan satisfies the
alternative method for meeting the actual deferral percentage test as set forth
in Code Section 401(k)(12) or one of the alternative methods for meeting the
contribution percentage test as set forth in Code Sections 401(m)(10) and
401(m)(11).

         4.5 MONITORING PROCEDURES. (1) In order to ensure that at least one of
the actual deferral percentages specified in Section 4.2(1) and at least one of
the contribution percentages specified in Section 4.3(1) and the aggregate limit
specified in Section 4.4(2) are satisfied for each Plan Year, the Company shall
monitor (or cause to be monitored) the amount of Before-Tax Contributions and
Matching Allocations being made to the Plan by or for each Eligible Employee
during each Plan Year. In the event that the Company determines that neither of
such actual deferral percentages, neither of such contribution percentages or
such aggregate limit will be satisfied for a Plan Year, and if the Committee in
its sole discretion determines that it is necessary or desirable, the Before-Tax
Contributions and/or the Matching Allocations made thereafter by or for each
Highly Compensated Eligible Employee (as defined in Section 4.2(3)) may be
reduced (pursuant to non-discriminatory rules adopted by the Company) to the
extent necessary to decrease the actual deferral percentage and/or the
contribution percentage for Highly Compensated Eligible Employees for such Plan
Year to a level which satisfies either of the actual deferral percentages,
either of the contribution percentages and/or the aggregate limit.

         (2) In order to ensure that excess deferrals (as such term is defined
in Section 4.1(2)) shall not be made to the Plan for any taxable year for any
Participant, the Company shall

                                       33
<PAGE>   35

monitor (or cause to be monitored) the amount of Before-Tax Contributions being
made to the Plan for each Participant during each taxable year and may take such
action (pursuant to non-discriminatory rules adopted by the Company) to prevent
Before-Tax Contributions made for any Participant under the Plan for any taxable
year from exceeding the maximum amount applicable under Section 4.1(1).

         (3) The actions permitted by this Section are in addition to, and not
in lieu of, any other actions that may be taken pursuant to other Sections of
the Plan or that may be permitted by applicable law or regulation in order to
ensure that the limitations described in Sections 4.1, 4.2, 4.3 and 4.4 are met.

         4.6 TESTING PROCEDURES. In applying the limitations set forth in
Sections 4.2, 4.3 and 4.4, the Company may, at its option, utilize such testing
procedures as may be permitted under Code Sections 401(a)(4), 401(k), 401(m) or
410(b) including, without limitation, (a) aggregation of the Plan with one or
more other qualified plans of the Controlled Group, (b) inclusion of qualified
matching contributions, qualified nonelective contributions or elective
deferrals described in, and meeting the requirements of, Treasury Regulations
under Code Sections 401(k) and 401(m) to any other qualified plan of the
Controlled Group in applying the limitations set forth in Sections 4.2, 4.3 and
4.4, or (c) any permissible combination thereof.

         4.7 LIMITATIONS ON EMPLOYER AND BEFORE-TAX CONTRIBUTIONS.
Notwithstanding any provision of the Plan to the contrary, any Before-Tax
Contributions or Employer Contributions hereunder for any Plan Year shall in no
event exceed the amount that would be deductible by an Employer for such Plan
Year for federal income tax purposes and each Before-Tax Contribution and
Employer Contribution to the Trust Fund made by any Employer is hereby
specifically conditioned upon such deductibility.

                                       34
<PAGE>   36

         4.8 RETURN OF CONTRIBUTIONS TO EMPLOYERS. (1) Except as specifically
provided in this Section or in the other Sections of the Plan, the Trust Fund
shall never inure to the benefit of the Employers and shall be held for the
exclusive purposes of providing benefits to Employees, Participants and their
Beneficiaries and defraying reasonable expenses of administering the Plan.

         (2) If an Employer Contribution to the Trust Fund is made by an
Employer by a mistake of fact, the excess of the amount contributed over the
amount that would have been contributed had there not occurred a mistake of fact
shall be returned to such Employer within one year after the payment of such
Contribution. If an Employer Contribution to the Trust Fund made by an Employer
which is conditioned upon the deductibility of the Contribution under Code
Section 404 (or any successor thereto) is not fully deductible under such Code
Section (or any successor thereto) such Contribution, to the extent the
deduction therefor is disallowed, shall be returned to the Employer within one
year after the disallowance of the deduction. Earnings attributable to Employer
Contributions returned to an Employer pursuant to this Subsection may not be
returned, but losses attributable thereto shall reduce the amount to be
returned; provided, however, that if the withdrawal of the amount attributable
to the mistaken or non-deductible contribution would cause the balance of the
individual Account of any Participant to be reduced to less than the balance
which would have been in such Account had the mistaken or non-deductible amount
not have been contributed, the amount to be returned to the Employer pursuant to
this Section shall be limited so as to avoid such reduction.

         4.9 MAXIMUM ADDITIONS. (1) Notwithstanding the provisions of Article
III or the foregoing provision of this Article IV, the maximum annual addition
(as defined in Subsection (2) of this Section) to a Participant's Account for
any Plan Year (which shall be the limitation year) shall in no event exceed the
lesser of (a) one-fourth of the dollar limitation in effect under Code Section
415(b)(1)(A) or (b) 25% of his compensation for such Plan Year.

                                       35
<PAGE>   37

         (2) For the purpose of this Section, the term "annual additions" means
the sum for any Plan Year of:

                  (a) all contributions (including, without limitation,
     Before-Tax Contributions made pursuant to Section 3.1) made by the
     Controlled Group which are allocated to the Participant's account pursuant
     to a defined contribution plan maintained by a Controlled Group Member,

                  (b) all employee contributions made by the Participant to a
     defined contribution plan maintained by a Controlled Group Member,

                  (c) all forfeitures allocated to the Participant's account
     pursuant to a defined contribution plan maintained by a Controlled Group
     Member,

                  (d) any amount allocated to an individual medical benefit
     account (as defined in Code Section 415(l)(2)) of the Participant which is
     part of a pension or annuity plan, and

                  (e) any amount attributable to medical benefits allocated to
     the Participant's account established under Code Section 419A(d)(1) if the
     Participant is or was a key-employee (as such term is defined in Code
     Section 416(i) during such Plan Year or any preceding Plan Year.

         (3) For the purposes of this Section, the term "compensation" shall
mean Compensation within the meaning of Code Section 415(c)(3) and regulations
thereunder.

         (4) If a Participant's annual additions would exceed the limitations of
Subsection (1) of this Section for a Plan Year as a result of the allocation of
forfeitures, a reasonable error in estimating the Participant's compensation, or
a reasonable error in determining the amount of Before-Tax Contributions that
may be made with respect to the Participant under the limitations of this
Section (or other facts and circumstances which the

                                       36
<PAGE>   38

Commissioner of Internal Revenue finds justify application of the following
rules of this Subsection), Employer Contributions allocable to such
Participant's Account for such Plan Year shall, to the extent necessary to cause
the limitations of Subsection (1) of this Section not to be exceeded for such
Plan Year, be held by the Trustee in a suspense account and shall be used to
reduce Employer Contributions for the next Plan Year (and succeeding Plan Years,
as necessary) for such Participant if such Participant is covered by the Plan at
the end of any such Plan Year; and if he is not covered by the Plan at the end
of any such Plan Year, such Employer Contributions held by the Trustee in such
suspense account shall be allocated and reallocated to the accounts of other
Participants, except that no such allocation or reallocation shall cause the
limitations of Subsection (1) of this Section to be exceeded for any such other
Participant for such Plan Year. Investment gains and losses shall not be
allocated to the suspense account during the period such suspense account is
required to be maintained pursuant to this Subsection. In the event of a
termination of the Plan, any then remaining balance of the suspense account, to
the extent it may not then be allocated to Participants, shall revert to the
Employers. If the allocation of such Employer Contributions to the suspense
account described in this Subsection is not sufficient to cause the limitations
of Subsection (1) of this Section not to be exceeded for such Plan Year,
Before-Tax Contributions made for such Participant for such Plan Year which
constitute part of the annual additions (together with any gains attributable
thereto) shall be returned to him to the extent necessary to effectuate such
reduction.

         4.10 DEFINITIONS. (1) For purposes of applying the limitations set
forth in Section 4.9, all qualified defined benefit plans (whether or not
terminated) ever maintained by one or more Controlled Group Members shall be
treated as one defined benefit plan, and all qualified defined contribution
plans (whether or not terminated) ever maintained by one or more Controlled
Group Members shall be treated as one defined contribution plan.

                                       37
<PAGE>   39

         (2) For purposes of this Section and Section 4.9, the term "Controlled
Group Member" shall be construed in light of Code Section 415(h).

         4.11 FUNDING POLICY. To the extent such has not already been done, the
Committee shall (1) determine, establish and carry out a funding policy and
method consistent with the objectives of the Plan and the requirements of
applicable law, and (2) furnish from time to time to the person responsible for
the investment of the assets held in the Trust Fund information such Committee
may have relative to the Plan's probable short-term and long-term financial
needs, including any probable need for short-term liquidity, and such
Committee's opinion (if any) with respect thereto.

                                       38
<PAGE>   40

                            ARTICLE V. - INVESTMENTS
                            ------------------------

         5.1 INVESTMENT FUNDS. (1) The Trust Fund (other than the portion of the
Trust Fund consisting of the Loan Accounts) shall be divided into the following
Investment Funds: the Equity Fund, the Fixed Income Fund, the Money Market Fund,
the NCC Stock Fund, the Capital Preservation Fund, and the NPI Stock Fund and
such other Investment Funds as the committee may in its discretion select or
establish. Before-Tax Contributions, Transfer Contributions and Employer
Contributions shall be invested therein as provided in Section 5.5. Subject to
the provisions of the Plan and Trust Agreement relating to the appointment of an
Investment Manager and to other applicable provisions of the Plan and Trust
Agreement, the Trustee shall hold, manage, administer, value, invest, reinvest,
account for and otherwise deal with each Investment Fund separately. Dividends,
interest, and other distributions received by the Trustee in respect of each
Investment Fund shall be reinvested in the same Investment Fund.

         (2) The Trustee shall invest and reinvest the principal and income of
each such Investment Fund and shall keep each such Investment Fund invested,
without distinction between principal and income, in such property, investments
and securities as the Trustee may deem suitable without regard to any percentage
or other limitation in any laws or rules of court applying to investments by
trust companies or trustees; but subject, however, to the terms of the Plan and
Trust Agreement and to the following provisions:

                  (a) All or any part of the Equity Fund, the Fixed Income Fund,
     the Capital Preservation Fund, the Money Market Fund or any other
     Investment Funds which the Committee shall in its discretion have selected
     or established may, in the discretion of the Trustee, be invested in the
     NCB Investment Trust Fund or in shares of mutual funds, including any such
     mutual fund which may be advised by the Trustee or an affiliate of the
     Trustee. Funds in the Fixed Income Fund, the Equity Fund and the Capital
     Preservation

                                       39
<PAGE>   41

     Fund shall not be invested in the NCB Investment Trust Fund or a mutual
     fund unless such NCB Investment Trust Fund or mutual fund consists of the
     same general types of investments as are permitted under such Funds. Funds
     in the Money Market Fund may not be invested in an NCB Investment Trust
     Fund or a mutual fund unless such NCB Investment Trust Fund or mutual fund
     consists generally of investments principally in bonds, notes or other
     evidences of indebtedness which are payable on demand (including variable
     amount notes) or which have a maturity date not exceeding 91 days after the
     date of purchase.

                  (b) The Trustee may make deposits or investments of funds in
     time or savings deposits or instruments of a Controlled Group Member,
     provided such funds are awaiting investment or distribution, and nothing
     contained in this Section shall serve to preclude or prohibit such deposits
     or investment of such funds.

                  (c) The determination of the Trustee as to whether an
     investment is within the category of investments which may be made for the
     Fixed Income Fund, the Equity Fund, the NCC Stock Fund, the Capital
     Preservation Fund or the Money Market Fund shall be conclusive.

                  (d) The Trustee in its discretion may keep such portion of the
     Investment Funds in cash as the Trustee may from time to time deem to be
     advisable and shall not be liable for interest on uninvested funds.

                  (e) The Trustee is authorized to commingle the assets of the
     Trust with other trusts through the medium of the NATIONAL CITY CORPORATION
     INVESTMENT TRUST FOR RETIREMENT TRUSTS established by a trust instrument
     executed by National City Corporation and National City Bank (the "NCC
     Investment Trust"). To the extent of the equitable share of the Trust in
     the National City Corporation Investment Trust for Retirement

                                       40
<PAGE>   42

     Trusts, the NCC Investment Trust, as such document has been or may be
     amended, and the trust created thereunder, shall be deemed part of this
     Plan and Trust.

         5.2 ACCOUNT; SUB-ACCOUNT. The Trustee shall establish and maintain, or
cause to be maintained, an Account for each Participant, which Account shall
reflect, pursuant to Sub-Accounts established and maintained thereunder, the
amount, if any, of the Participant's (a) Before-Tax Contributions, (b) Matching
Allocations, (c) Qualified Nonelective Contributions and (d) Transfer
Contributions (unless the Trustee determines to maintain the cash or property
transferred to the Trust Fund as a Transfer Contribution pursuant to one or more
of the foregoing Sub-Accounts). The Trustee shall also maintain, or cause to be
maintained, separate records which shall show (i) the portion of each such
Sub-Account invested in each Investment Fund and (ii) the amount of
contributions thereto, payments and withdrawals and loans therefrom and the
amount of income, expenses, gains and losses attributable thereto. The interest
of each Participant in the Trust Fund at any time shall consist of his Account
balance (as determined pursuant to Section 5.4) as of the last preceding
Valuation Date plus credits and minus debits to such Account since that Date
plus the value of the Participant's Loan Account on the last preceding Valuation
Date on which the Administrator valued such Loan Account pursuant to Section
6.13 plus any amounts credited to such Loan Account and not invested in any
Investment Fund.

         5.3 REPORTS. The Committee shall cause reports to be made at least
annually to each Participant and to the Beneficiary of each deceased Participant
as to the value of his Account and the amount of his Vested Interest. In
addition, the Committee shall cause such a report to be made to each Participant
who (a) requests such a report in writing (provided that only one report shall
be furnished a Participant upon such a request in any 12-month period), (b) has
terminated employment with the Controlled Group, or (c) incurs a Break in
Service.

                                       41
<PAGE>   43

         5.4 VALUATION OF INVESTMENT FUNDS. (1) As of each Valuation Date, the
Trustee shall determine the value of each Investment Fund in accordance with the
terms of this Section and the Trust Agreement. The Trustee shall determine, from
the change in value of each Investment Fund between the current Valuation Date
and the then last preceding Valuation Date, the net gain or loss of such
Investment Fund during such period resulting from expenses paid (including the
fees and expenses of the Trustee and Investment Manager, if any, which are to be
charged to such Investment Fund in accordance with the terms of the Plan and the
Trust Agreement) and realized and unrealized earnings, profits and losses of
such Investment Fund during such period. The transfer of funds to or from an
Investment Fund pursuant to Section 5.6, Participant or Employer Contributions
allocated to an Investment Fund, and payments, distributions and withdrawals
from an Investment Fund to provide benefits under the Plan for Participants or
Death Beneficiaries shall not be deemed to be earnings, profits, expenses or
losses of the Investment Fund.

         (2) After each Valuation Date, the net gain or loss of each Investment
Fund determined pursuant to Subsection (1) of this Section shall be allocated as
of such Valuation Date by the Trustee to the Accounts of Participants and
Beneficiaries in such Investment Fund in proportion to the amounts of such
Accounts invested in such Investment Fund on such Valuation Date, exclusive of
amounts to be credited but including amounts (other than the net loss, if any,
determined pursuant to Subsection (1) of this Section) to be debited to such
Accounts as of such Valuation Date.

         (3) Except as may otherwise be provided by the Committee, Before-Tax
Contributions, Matching Allocations, Qualified Nonelective Contributions and
Transfer Contributions shall be credited to each Participant's Account and
allocated to the appropriate Investment Fund as of the first business day
following the Valuation Date coincident with or next

                                       42
<PAGE>   44

following the date the Trustee has received such amounts and appropriate
instructions as to the allocation of such amounts among the Investment Funds.

         (4) The reasonable and equitable decision of the Trustee as to the
value of each Investment Fund as of each Valuation Date shall be conclusive and
binding upon all persons having any interest, direct or indirect, in such
Investment Fund.

         5.5 INVESTMENT OF BEFORE-TAX, TRANSFER AND EMPLOYER CONTRIBUTIONS. (1)
Each Participant may, pursuant to rules and procedures adopted by the Committee,
direct that Before-Tax and Transfer Contributions made by or for him and
repayments of a loan made pursuant to Section 6.13, shall be invested in any or
all of the Investment Funds. An investment option selected by a Participant
shall remain in effect and be applicable to all subsequent Before-Tax and
Transfer Contributions and loan repayments made by or for him unless and until
an investment change is made by him. Notwithstanding the foregoing provisions of
this subsection (1) to the contrary, a Participant may not direct the investment
of Transfer Contributions into the NPI Stock Fund.

         (2) An investment direction described in this Section may only be made
either (A) on a form supplied or approved by the Committee, signed by the
Participant and filed with the Committee or an Employer or (B) if available to
the Participant, by effecting such direction by means of electronic medium
including, but not limited to, a voice response telephonic system or personal
computer access to an internet website maintained on behalf of the Plan, with
confirmation by means of a writing mailed to the Participant within three days.
In the absence of an effective investment direction, Before-Tax and Transfer
Contributions and loan repayments shall be invested in the Money Market Fund.
Any cash received by the Trust between Valuation Dates may be temporarily
invested until the Valuation Date next following the date such cash is

                                       43
<PAGE>   45

received, at which time it shall be allocated among the Investment Funds in
accordance with the foregoing provisions of this Section.

         (3) A participant may change his investment direction with respect to
all subsequent Before-Tax and Transfer Contributions made by or for him either
(A) by filing with the Committee or his Employer, on a form supplied or approved
by the Committee or his Employer, a signed investment direction revision, or (B)
if available to the Participant, by effecting such change by means of a voice
response telephonic system established by and established by the Committee, with
confirmation by means of a writing mailed to the Participant within five days.
Only one such investment direction revision may be made by a Participant for any
calendar day. Such investment direction revision shall affect only amounts
contributed after the direction and prior to a subsequent direction.

         (4) All Employer Contributions shall be invested in the NCC Stock Fund.

         5.6 TRANSFERS OF INVESTMENTS. (1) Each Participant shall have the right
from time to time to elect that all or a part of his interest in one or more of
the Investment Funds (including amounts attributable to Employer Contributions)
be liquidated and the proceeds thereof reinvested in any of the other Investment
Funds other than the NPI Stock Fund. Such an investment-mix adjustment shall not
affect investment of amounts received in the Trust as contributions, which shall
continue to be invested pursuant to Section 5.5. Notwithstanding the foregoing
provisions of this Section, a Participant may not elect that any part of his
interest in the Capital Preservation Fund be liquidated and that the proceeds
thereof reinvested in the Money Market Fund or the Fixed Income Fund. Further,
notwithstanding the foregoing provisions of this Section, a Participant may not
elect that more than 20% of his interest in the NPI Stock Fund (or, if greater,
2 full units in the NPI Fund) be liquidated on any Business Day.

                                       44
<PAGE>   46

         (2) An investment-mix adjustment described in this Section may only be
made on either (A) a form supplied or approved by the Committee or an Employer,
signed by the Participant and flied with the Committee or his Employer or (B) if
available to the Participant, by effecting such adjustment by means of a voice
response telephonic system, established by and supervised by the Committee, with
written confirmation sent to the Participant within five days. Only one such
adjustment may be made by a Participant for any calendar day.

         (3) Any non-Participant, including, without limitation, a Beneficiary
of a deceased Participant or an alternate payee under a qualified domestic
relations order, shall have the same rights a Participant has under Subsections
(1) and (2) of this Section.

         5.7 COMMITTEE RULES AND DIRECTIONS TO TRUSTEE. (1) The Committee shall
adopt, and may amend from time to time, general rules of uniform application
which shall provide for the administration of each Investment Fund, including,
but not limited to, rules providing (a) for the time or times that an investment
direction or transfer pursuant to Sections 5.5 and 5.6 may be filed and be
effective; (b) for minimum limits (not in excess of $50) on the amount that may
be invested for one Participant at any one time in an Investment Fund and on the
amount that may be transferred from Investment Funds if such amount is less than
all of the Participant's interest in any such Fund; (c) for procedures pursuant
to which a Participant may designate the portion of his Before-Tax and Transfer
Contributions to be invested in such Investment Funds as he elects in terms of a
whole percentage of the amount to be invested; and (d) for any other matters
which the Committee deems necessary or advisable in the administration of any
Investment Fund.

         (2) The Committee shall give appropriate and timely directions to the
Trustee in order to permit the Trustee to give effect to the investment choice
and investment change elections made under Sections 5.5 and 5.6 and to provide
funds for distributions and withdrawals

                                       45
<PAGE>   47

pursuant to Article VI. Investments in and withdrawals from each Investment Fund
shall be made only as of a Valuation Date.

                                       46
<PAGE>   48

               ARTICLE VI. - DISTRIBUTIONS, WITHDRAWALS AND LOANS
               --------------------------------------------------

         6.1 DISTRIBUTIONS IN GENERAL. A Participant's interest in the Trust
Fund shall only be distributable as provided in this and the following Sections
of this Article. A Participant or Beneficiary who is eligible to receive a
distribution under applicable Sections of this Article shall obtain a blank
application for that purpose from the Committee and file with such Committee his
application in writing on such form, furnishing such information as such
Committee may reasonably require, including satisfactory proof of his age and
that of his Spouse (if applicable) and any authority in writing that the
Committee may request authorizing it to obtain pertinent information,
certificates, transcripts and/or other records from any public office.

         6.2 DISTRIBUTIONS ON DEATH. (1) If a Participant dies before the
payment or commencement of payment of his Vested Interest to him, his entire
Account, valued as of the next Valuation Date which is at least 30 days after
the date on which the Death Beneficiary files his application pursuant to
Section 6.1, shall be paid or commence to be paid to the Participant's Death
Beneficiary pursuant to Subsection (2) of this Section as soon as practicable
after such Valuation Date, but in no event shall payment be made or commenced
later than the time prescribed in Section 6.8(2) without regard to whether an
application has been filed.

         (2) In the event of the death of a Participant who dies under the
circumstances described in Subsection (1) of this Section, such Participant's
Account shall be paid to his Death Beneficiary under one of the following
methods as the Death Beneficiary shall elect:

                  (a) such amount shall be paid to him in a lump sum; or

                  (b) such amount shall be paid to him in such annual, quarterly
     or monthly installments, as elected by the Death Beneficiary, over a term
     certain not extending beyond the life expectancy of the Death Beneficiary.

                                       47
<PAGE>   49

         (3) If a Participant dies after the commencement of payments of his
Vested Interest to him in the form described in Section 6.3(l)(b), but before
all of such payments have been made, the undistributed portion of this Vested
Interest shall continue to be paid to his Death Beneficiary in the same manner
as originally elected by the Participant.

         (4) A Death Beneficiary who is currently receiving payments pursuant to
Subsection (2)(b) or (3) above may elect to withdraw all or any portion of the
deceased Participant's account payable to him under this Section 6.2 in the form
of a single sum payment or a distribution of NCC Stock. A Death Beneficiary
shall be limited to two such withdrawals in the same calendar year.

         6.3 DISTRIBUTIONS ON NORMAL OR EARLY RETIREMENT OR DISABILITY. (1) If a
Participant's termination of employment with the Controlled Group occurs (other
than by reason of his death) on or after his attainment of his Normal or Early
Retirement Age or by reason of his Disability, his entire Account, valued as of
the Valuation Date specified in Subsection (2) of this Section, shall be paid or
commence to be paid to him under one or a combination of the following methods
as the Participant shall elect upon application filed by him with the Committee
pursuant to Section 6.1:

                  (a) such amount shall be paid to him in a lump sum; or

                  (b) such amount shall be paid to him in such annual, quarterly
     or monthly installments, as elected by the Participant, over a term certain
     not extending beyond the life expectancy of the Participant or the joint
     life expectancy of the Participant and his Beneficiary.

         (2) Distributions pursuant to this Section shall be paid or commence to
be paid to a Participant as soon as practicable after, and shall be valued as
of, the next Valuation Date which is at least 30 days after the later of (a) the
date on which the Participant files his application

                                       48
<PAGE>   50

with the Committee pursuant to Section 6.1 or (b) the date of the Participant's
termination of employment from the Controlled Group, but in no event shall
payment be made or commenced later than the time prescribed in Section 6.8(2)
without regard to whether an application has been filed.

         (3) Notwithstanding anything in Subsections (1) or (2) above, a
Participant described in Subsection (1) of this Section may elect to withdraw
all or any portion of his Vested Interest in his Account in the form of a single
sum payment or a distribution of NCC Stock. A Participant shall be limited to
two such withdrawals in the same calendar year.

         (4) If a Participant described in Subsection (1) of this Section should
again become an Employee before his entire Account has been distributed, the
distribution of his Account shall cease until the Participant again terminates
his employment with the Controlled Group.

         6.4 DISTRIBUTION ON OTHER TERMINATION OF EMPLOYMENT. If a Participant's
termination of employment with the Controlled Group occurs under circumstances
other than those covered by Sections 6.2 and 6.3, his entire Vested Interest,
valued as of the Valuation Date coinciding with or next following the date
determined pursuant to Section 6.3(2), shall be paid to him in a lump sum at
such time as provided in Section 6.3(2).

         6.5 PAYMENT OF SMALL BENEFITS. Notwithstanding the foregoing provisions
of this Article, if the value of the Vested Interest of a Participant following
his termination of employment (whether by death or otherwise) does not exceed
$5,000 on the first Valuation Date next following such termination of
employment, such Vested Interest shall be paid to the Participant (or, if
applicable, his Beneficiary) in a lump sum within 90 days after such Valuation
Date.

                                       49
<PAGE>   51

         6.6 DISTRIBUTIONS-PURSUANT TO A QDRO. If a qualified domestic relations
order (as defined in Code Section 414(p)) so provides, the portion of a
Participant's Vested Interest payable to the alternate payee(s) may be
distributed to the alternate payee(s) at the time specified in such order,
regardless of whether the Participant is entitled to a distribution from the
Plan at such time. The portion of the Vested Interest so payable shall be valued
as of the Valuation Date coincident with or next following the date specified in
such order.

         6.7 DISTRIBUTION ON SALE OF ASSETS OR DISPOSITION OF BUSINESS.
Notwithstanding the preceding provisions of this Section, in the event that a
Participant's termination of employment with the Controlled Group is caused by
the disposition by an Employer of substantially all of the assets of a trade or
business, or its interest in a subsidiary, and such Participant continues
employment with the corporation acquiring such assets or such subsidiary, the
Participant, if he so elects on an application filed with the Committee pursuant
to Section 6.1, shall be entitled to a distribution of his Account valued as of
the Valuation Date specified in Section 6.3(2), provided, however, that such
Account may only be distributed in the form of a lump sum or in the form of NCC
Stock.

         6.8 LATEST TIME OF DISTRIBUTION. (1) Distributions under the Plan shall
occur or begin as provided in the preceding Sections of this Article, but in no
event later than 60 days after the close of the Plan Year in which the latest of
the following events occur: (a) the date on which the Participant attains age
65, (b) the 10th anniversary of the year in which the Participant commenced
participation in the Plan, or (c) the Participant's termination of employment
with the Controlled Group, provided that, except as provided in Subsection (2)
of this Section and Section 6.5, no distribution shall be required to be made or
commence until the Participant files his application with the Committee pursuant
to Section 6.1.

                                       50
<PAGE>   52

         (2) (a) Notwithstanding any other provision of the Plan, the entire
     Account of each Participant under the Plan who is a 5% owner (as defined in
     Code Section 416) (i) shall be distributed to him in a lump sum in cash not
     later than April 1 of the calendar year following the calendar year in
     which he attains age 70-1/2 and, with respect to Participants who are
     Employees, on December 31 of such year and each succeeding year, or (ii)
     shall commence to be distributed not later than the time specified in
     Clause (i) of this Paragraph (a) in the form specified in Section 6.3(1)(b)
     if such form is elected by the Participant in accordance with Section 6.3.
     In addition, the entire Account of any other Participant must be
     distributed or commence to be distributed not later than the April 1 of the
     calendar year following the later of (x) the calendar year in which the
     Participant attains age 70-1/2 or (y) the calendar year in which the
     Participant incurs a Termination of Employment.

                  (b) If distribution of a Participant's Account under the Plan
     has begun and such Participant dies before his entire interest has been
     distributed to him, the remaining portion of such Account shall be
     distributed to his Death Beneficiary at least as rapidly as under the
     method of distribution being used as of the date of his death.

                  (c) If a Participant dies before the distribution of his
     Account under the Plan has begun, the entire Account of the Participant
     shall be distributed to his Death Beneficiary by the December 31 of the
     year in which occurs the fifth anniversary of such Participant's death;
     provided, however, that such five-year rule shall not be applicable to any
     portion of the Participant's Account under the Plan which is payable to the
     Participant's Death Beneficiary if such portion is distributed in the form
     specified in Section 6.2(2)(b), and such distributions begin not later than
     the December 31 of the calendar year immediately following the calendar
     year in which the Participant died or, in

                                       51
<PAGE>   53

     the case of a Death Beneficiary who is the Participant's surviving Spouse,
     the December 31 of the calendar year in which the Participant would have
     attained age 70-1/2.

                  (d) Distributions under this Subsection shall be made in
     accordance with the provisions of Code Section 401(a)(9) and Treasury
     Regulations issued thereunder, which provisions are hereby incorporated
     herein by reference, provided that such provisions shall override the other
     distribution provisions of the Plan only to the extent that such other Plan
     provisions provide for distribution that is less rapid than required under
     such provisions of the Code and Regulations. Nothing contained in this
     Section shall be construed as providing any optional form of payment that
     is not available under the other distribution provisions of the Plan.

         6.9 WITHDRAWAL OF CONTRIBUTIONS UPON ATTAINMENT OF AGE 59-1/2. A
Participant who is an Employee and who is at least age 59-1/2 may elect to
withdraw all or any portion of his Vested Interest in his Account in the form of
a single sum payment or a distribution of NCC Stock. A Participant shall be
limited to two such withdrawals in the same calendar year. A Participant who
makes two such withdrawals in the same calendar year while he is an Employee
shall not be permitted to have any further Before-Tax Contributions made for him
for the remainder of such calendar year. Withdrawals pursuant to this Section
will be paid to the Participant as soon as practicable after, and shall be
valued as of, the next Valuation Date which is at least 30 days after the date
on which the Participant files an application for withdrawal with the Committee.

         6.10 WITHDRAWAL OF TRANSFER CONTRIBUTIONS. (1) A Participant, whether
or not he is an Employee, may elect to withdraw all or any portion of his
Transfer Contributions Sub-Account which is attributable to Transfer
Contributions described in Section 3.4.

                                       52
<PAGE>   54

         (2) Withdrawals pursuant to this Section shall be paid to the
Participant as soon as practicable after, and shall be valued as of, the next
Valuation Date, which is at least 30 days after the date on which the
Participant files an application for a withdrawal with the Committee.

         6.11 HARDSHIP WITHDRAWALS. A Participant who is an Employee and who has
obtained all distributions and withdrawals (other than for Hardship) and all
nontaxable loans then available under all plans maintained by the Controlled
Group may request, on a form provided by and filed with the Committee, a
withdrawal on account of Hardship of all or a part of his Before-Tax
Contributions Sub-Account (excluding any earnings allocated thereto). Upon
making a determination that the Participant is entitled to a withdrawal on
account of Hardship, the Committee shall direct the Trustee to distribute to
such Participant all or a portion of his Before-Tax Contributions Sub-Account
(excluding any earnings allocated thereto), provided that the amount of the
withdrawal shall not be in excess of the amount necessary to alleviate such
Hardship. If a withdrawal on account of Hardship is made by a Participant
pursuant to this Subsection, the following rules shall apply notwithstanding any
other provision of the Plan (or any other plan maintained by the Controlled
Group) to the contrary:

                  (a) the Participant is prohibited from making elective
     contributions and employee contributions to the Plan (or to any other
     qualified or nonqualified plan maintained by the Controlled Group) for a
     period of 12 months following receipt of the Hardship withdrawal; and

                  (b) the amount of the Participant's Before-Tax Contributions
     (and any comparable contributions to any other plan maintained by the
     Controlled Group) for the Participant's taxable year immediately following
     the taxable year of the Hardship withdrawal shall not be in excess of the
     applicable limit under Code Section 402(g) for

                                       53
<PAGE>   55

     such next taxable year less the amount of such Participant's Before-Tax
     Contributions (and any comparable contributions to any other plan
     maintained by the Controlled Group) for the taxable year of the Hardship
     withdrawal.

         6.12 MECHANICS OF MAKING DISTRIBUTIONS. (1) Where a distribution,
withdrawal or loan is to be made from the Trust Fund of only a portion of a
Participant's Vested Interest in the Trust Fund and such Interest is invested in
more than one of the Investment Funds, the Participant shall designate (on a
form approved by the Committee, signed by him and filed with the Committee)
which of the Funds should be liquidated in order to make such distribution. Such
a designation shall not be considered an investment direction or investment
transfer for the purpose of the limitations described in Sections 5.5, 5.6 and
5.7.

         (2) All distributions, withdrawals and loans shall be made in cash,
provided that if the Participant or Beneficiary so elects on a form provided by
the Committee, a distribution or withdrawal (but not a loan) may be made in the
form of full shares of NCC Stock, based on the fair market value of such Stock
(as determined by the Trustee in accordance with the provisions of the Trust
Agreement) on the Valuation Date as of which such distribution is made.

         6.13 LOANS TO PARTICIPANTS. (1) A Participant who is a "party in
interest" within the meaning of ERISA Section 3(14) may apply on a form provided
by the Committee for a loan from his Account. If the Committee determines that
the Participant is not in bankruptcy or similar proceedings and is entitled to a
loan in accordance with the following provisions of this Section, the Committee
shall direct the Trustee to make a loan to the Participant from his Account.
Each loan shall be charged against the Participant's Account as follows: first,
against the Participant's Before-Tax Contributions Sub-Account; second, to the
extent necessary, against the Participant's Matching Allocations Sub-Account;
third, to the extent necessary, against the

                                       54
<PAGE>   56

Participant's Transfer Contributions Sub-Account; fourth, to the extent
necessary against the Participant's Qualified Non-Elective Contributions
Sub-Account.

         (2) A Participant shall not be entitled to a loan under this Section
unless the Participant consents to (a) the use of the Participant's Account as
security as provided in Subsection (5)(c) of this Section and (b) the possible
reduction of the Participant's Account as provided in Subsection (6) of this
Section. Any consent required by the preceding sentences must be given within
the ninety day period preceding the disbursement of the loan proceeds.

         (3) Each loan shall be in an amount which is not less than $500. The
maximum loan to any Participant (when added to the outstanding balance of all
other loans to the Participant from all qualified employer plans (as defined in
Code Section 72(p)(4)) of the Controlled Group) shall be an amount which does
not exceed the lesser of

                  (a) $50,000, reduced by the excess (if any) of (i) the highest
     outstanding balance of such other loans during the one-year period ending
     on the day before the date on which such loan is made, over (ii) the
     outstanding balance of such other loans on the date on which such loan is
     made, or

                  (b) 50% of the value of such Participant's Account on the date
     on which such loan is made.

         (4) For each Participant for whom a loan is authorized pursuant to this
Section, the Administrator shall (a) direct the Trustee to liquidate the
Participant's interest in the Investment Funds as directed by the Participant
or, in the absence of such direction, on a pro-rata basis, to the extent
necessary to provide funds for the loan, (b) direct the Trustee to disburse such
funds to the Participant upon the Participant's execution of the promissory note
and security agreement referred to in Subsection (5)(d) of this Section, (c)
transmit to the Trustee the executed promissory note and security agreement
referred to in Subsection (5)(d) of this Section, and (d)

                                       55
<PAGE>   57

establish and maintain a separate recordkeeping account within the Participant's
Account (the "Loan Account") (i) which initially shall be in the amount of the
loan, (ii) to which the funds for the loan shall be deemed to have been
allocated and then disbursed to the Participant, (iii) to which the promissory
note shall be allocated and (iv) which shall show the unpaid principal of and
interest on the promissory note from time to time. All payments of principal and
interest by a Participant shall be credited initially to his Loan Account and
applied against the Participant's promissory note, and then invested in the
Investment Funds pursuant to the Participant's direction under Section 5.5. The
Administrator shall value each Participant's Loan Account for purposes of
Section 5.2 at such times as the Administrator shall deem appropriate, but not
less frequently than quarterly.

         (5) Loans made pursuant to this Section:

                  (a) shall be made available to all Participants on a
     reasonably equivalent basis;

                  (b) shall not be made available to Highly Compensated
     Employees in a percentage amount greater than the percentage amount made
     available to other Participants;

                  (c) shall be secured by the Participant's Loan Account; and

                  (d) shall be evidenced by a promissory note and security
     agreement executed by the Participant which provides for:

                  (i) the security referred to in paragraph (c) of this
         Subsection;

                  (ii) a rate of interest determined by the Committee in
         accordance with applicable law;

                  (iii) repayment within a specified period of time, which shall
         not extend beyond five years;

                                       56
<PAGE>   58

                  (iv) repayment in equal payments over the term of the loan,
         with payments not less frequently than quarterly; and

                  (v) for such other terms and conditions as the Committee shall
         determine, which shall include provision that:

                           (A) with respect to a Participant who is an Employee,
                  the loan will be repaid pursuant to authorization, by the
                  Participant of equal payroll deductions over the repayment
                  period sufficient to amortize fully the loan within the
                  repayment period, provided, however, the Committee may waive
                  the requirement of equal payroll deductions if the Employer
                  payroll through which the Participant is paid cannot
                  accommodate such deductions;

                           (B) the loan shall be prepayable in whole at any time
                  without penalty; and

                           (C) the loan shall be in default and become
                  immediately due and payable upon the first to occur of the
                  following events:

                                    (I) the Participant's failure to make
                           required payments on the promissory note; or

                                    (II) in the case of a Participant who is not
                           an Employee, distribution of his Account; or

                                    (III) in the case of a Participant who is an
                           Employee, termination of his employment with the
                           Controlled Group; or

                                    (IV) the Participant's death; or

                                    (V) the filing of a petition, the entry of
                           an order or the appointment of a receiver,
                           liquidator, trustee or other person in a

                                       57
<PAGE>   59

                           similar capacity, with respect to the Participant,
                           pursuant to any state or federal law relating to
                           bankruptcy, moratorium, reorganization, insolvency or
                           liquidation, or any assignment by the Participant for
                           the benefit of his creditors.

         (6) Notwithstanding any other provision of the Plan, a loan made
pursuant to this Section shall be a first lien against the Participant's Loan
Account. Any amount of principal or interest due and unpaid on the loan at the
time of any default on the loan shall be satisfied by deduction from the
Participant's Loan Account, and shall be deemed to have been distributed to the
Participant, as follows:

                  (a) in the case of a Participant who is an Employee and who is
     not, at the time of the default, eligible (without regard to the required
     filing of an application pursuant to Section 6.1) to receive distribution
     of his Account under the provisions of Article VI, other than Section 6.11,
     or by order of a court, at such time as he first becomes eligible (without
     regard to the required filing of an application pursuant to Section 6.1) to
     receive distribution of his Account under the provisions of Article VI,
     other than Section 6.11, or by order of a court; or

                  (b) in the case of any other Participant, immediately upon
     such default.

         (7) Notwithstanding any other provision of the Plan, loan repayments
will be suspended under the Plan as permitted under Code Section 414(u)(4) (for
Participants on a leave of absence for "qualified military service" (as defined
in Section 11.7)).

         6.14 DIRECT ROLLOVER PROVISIONS.

                  (a) Notwithstanding any provision of the Plan to the contrary
that would otherwise limit a Distributee's election under this Section 6.14, a
Distributee may elect, at the time and in the manner prescribed by the plan
administrator, to have any portion of an

                                       58
<PAGE>   60

Eligible Rollover Distribution paid directly to an Eligible Retirement Plan
specified by the Distributee in a Direct Rollover, provided, however, that if
such Direct Rollover is of a portion less than 100% of such Eligible Rollover
Distribution, such portion must equal or exceed $500 for this Section 6.14 to
apply.

                  (b) Definitions.

                  (1) ELIGIBLE ROLLOVER DISTRIBUTION: An Eligible Rollover
     Distribution is any distribution of all or any portion of the balance to
     the credit of the Distributee which equals or exceeds $200, except that an
     Eligible Rollover Distribution does not include: any distribution that is
     one of a series of substantially equal periodic payments (not less
     frequently than annually) made for the life (or life expectancy) of the
     Distributee or the joint lives (or joint life expectancies) of the
     Distributee and the Distributee's designated beneficiary, or for a
     specified period of ten years or more; any distribution to the extent such
     distribution is required under Code Section 401(a)(9); the portion of any
     distribution that is not includible in gross income (determined without
     regard to the exclusion for net unrealized appreciation with respect to
     employer securities); any "hardship distribution" (as defined in Code
     Section 401(k)); and such other amounts specified in Treasury Regulations
     and rulings, notices or announcements issued under Code Section 402(c).

                  (2) ELIGIBLE RETIREMENT PLAN: An Eligible Retirement Plan in
     an individual retirement account described in Code Section 408(a), an
     individual retirement annuity described in Code Section 408(b)), an annuity
     plan described in Code Section 403(a), or a qualified trust described in
     Code Section 401(a), that accepts the Distributee's Eligible Rollover
     Distribution. However, in the case of an Eligible Rollover Distribution to
     the surviving spouse, an Eligible Retirement Plan is an individual
     retirement account or individual retirement annuity.

                                       59
<PAGE>   61

                  (3) DISTRIBUTEE: A Distributee includes an employee or former
     employee. In addition, the employee's or former employee's surviving Spouse
     and the employee's or former employee's Spouse or former Spouse who is the
     alternate payee under a qualified domestic relations order, as defined in
     Code Section 414(p), are Distributees with regard to the interest of the
     spouse or former spouse.

                  (4) DIRECT ROLLOVER: A Direct Rollover is a payment by the
     Plan to the Eligible Retirement Plan specified by the Distributee.

                                       60
<PAGE>   62

                ARTICLE VII. - ADMINISTRATION OF THE TRUST FUND
                -----------------------------------------------

         7.1 APPOINTMENT OF TRUSTEE. The Company has appointed the Trustee to
act as such under the Plan and has executed the Trust Agreement with the
Trustee. The Company may, without the consent of any Participant or other
person, execute amendments to such Trust Agreement, execute such further
agreements as it in its sole discretion may deem necessary or desirable to carry
out the Plan, or at any time, in accordance with the terms of the Trust
Agreement, remove the Trustee and appoint a successor.

         7.2 DUTIES OF TRUSTEE. The Trustee shall invest Before-Tax
Contributions, Transfer Contributions and Employer Contributions paid to it and
earnings thereon in accordance with the Plan and Trust Agreement. The Trustee
shall also establish and maintain separate Accounts and Sub-Accounts for each
Participant in accordance with the Plan. The Trustee in its relation to the Plan
shall be entitled to all of the rights, privileges, immunities and benefits
conferred upon it by the Plan or Trust Agreement and shall be subject to all of
the duties imposed upon it by the Plan and Trust Agreement. The Trust Agreement
is hereby incorporated in the Plan by reference, and each Employer, by adopting
the Plan, approves the Trust Agreement and authorizes the Company to execute any
amendment or supplement thereto on its behalf.

         7.3 THE TRUST FUND. The Trust Fund shall be held by the Trustee for the
exclusive benefit of the Participants and their Beneficiaries and shall be
invested by the Trustee upon such terms and in such property as is provided in
the Plan and in the Trust Agreement. The Trustee shall, from time to time, make
payments, distributions and deliveries from the Trust Fund as provided in the
Plan.

         7.4 NO GUARANTEE AGAINST LOSS. (1) Neither the Trustee, any Employer,
the Committee nor any Investment Manager in any manner guarantees the Trust Fund
or any part

                                       61
<PAGE>   63

thereof against loss or depreciation. All persons having any interest in the
Trust Fund shall look solely to the Trust Fund for payment with respect to such
interest.

         (2) Neither the Company, the Committee, any Employer, the Trustee, nor
any officer or employee of any of them is authorized to advise a Participant as
to the manner in which contributions to the Plan and income thereon should be
invested and reinvested. The election of the Investment Fund or Funds in which a
Participant participates is his sole responsibility, and the fact that
designated Investment Funds are available to Participants for investment shall
not be construed as a recommendation for the investment of contributions
hereunder in all or any of such Funds.

         7.5 PAYMENT OF BENEFITS. All payments of benefits provided for by the
Plan shall be made solely out of the Trust Fund in accordance with instructions
given to the Trustee by the Committee pursuant to the terms of the Plan, and
neither any Employer, the Committee nor the Trustee shall be otherwise liable
for any benefits payable under the Plan.

         7.6 COMPENSATION AND EXPENSES. Any expenses paid by the Trustee in the
administration of any Investment Fund shall be charged to such Fund. The Trustee
shall be entitled to receive such reasonable compensation for its services as
may be agreed upon by it and the Company; provided, however, that no Employee
shall receive compensation from the Trust Fund for duties performed as a
Trustee. Such compensation and all other expenses of the Trustee and other
expenses necessary for the proper administration of the Plan and Trust Fund
shall be paid by the Trustee from the Trust Fund, unless the Company determines,
in its sole discretion, that all or any part of such compensation and expenses
shall be paid by the Employers. Notwithstanding the foregoing, any extraordinary
expenses incurred by the Trustee with respect to the interest of any person in
the Trust Fund may, in the discretion of the Trustee and with the approval of
the Committee, be charged to such person's interest in the Trust Fund. Taxes, if
any,

                                       62
<PAGE>   64

on any property held by the Trustee shall be paid out of the Trust Fund and
taxes, if any, other than transfer taxes, on distributions to a Participant or
Beneficiary of a Participant shall be paid by the Participant or the
Beneficiary, respectively.

         7.7 NO DIVERSION OF TRUST FUND. Except as specifically provided in
other Sections of the Plan, it shall be and it is hereby made impossible, at any
time prior to the satisfaction of all liabilities with respect to Employees and
their Beneficiaries under the Plan, for any part of the corpus or income of the
Trust Fund to be (within the taxable year or thereafter) used for, or diverted
to, purposes other than the exclusive benefit of Employees or their
Beneficiaries.

                                       63
<PAGE>   65

                       ARTICLE VIII. - INVESTMENT MANAGER
                       ----------------------------------

         8.1 DUTIES AND FUNCTIONS. (1) The Committee shall have the exclusive
authority and responsibility at any time or from time to time to appoint (and
revoke the appointment of) an Investment Manager under the Plan with respect to
the NCC Stock Fund and/or NPI Stock Fund. The Committee shall notify the Trustee
of any such appointment (or revocation thereof) in writing, and the Trustee may
rely upon any such appointment continuing in effect until it receives a written
notice from the Committee of its revocation. Any such Investment Manager shall
acknowledge in writing to the Committee and the Trustee that he or it is a
fiduciary with respect to the Plan.

         (2) Any such Investment Manager shall have the powers, functions,
duties and/or responsibilities of the Trustee relating to the investment and
reinvestment of the NCC Stock Fund and/or NPI Stock Fund (other than those
described in Article XV which shall remain with the Trustee) and shall exercise
such authority, power and discretion exclusively. Custody of the assets of the
NCC Stock Fund and/or NPI Stock Fund, however, shall remain with the Trustee who
shall be responsible therefor. In no instance shall the authority or discretion
of an Investment Manager with respect to the NCC Stock Fund and/or NPI Stock
Fund exceed the authority or discretion which the Trustee would have had with
respect to such Fund if there were no Investment Manager.

         (3) If an Investment Manager is so appointed (a) the Trustee shall not
be liable for any loss which may result by reason of any action taken by it in
accordance with a direction of an Investment Manager or by reason of any lack of
action by the Trustee upon the failure of an Investment Manager to exercise his
or its authority and discretion, (b) the Trustee shall not be required to accept
delivery of or pay for any security or other property purchased for the NCC
Stock Fund and/or NPI Stock Fund to the extent that the assets in such Fund are
insufficient to

                                       64
<PAGE>   66

pay for such security or other property, and (c) the Trustee shall be under no
duty or obligation to (i) invest or reinvest the NCC Stock Fund and/or NPI Stock
Fund except as directed by the Investment Manager thereof, (ii) make any
investment review or examination of the NCC Stock Fund and/or NPI Stock Fund or
recommendations with respect to such Fund, or (iii) advise the Committee of
directions received by the Trustee from an Investment Manager.

         8.2 COMPENSATION. The Investment Manager shall receive such reasonable
compensation as may be agreed upon by it and the Committee, and payment thereof
shall be made by the Employers.

                                       65
<PAGE>   67

                        ARTICLE IX. - CLAIMS PROCEDURES
                        -------------------------------

         9.1 METHOD OF FILING CLAIM. Any Participant or Beneficiary who believes
that he is entitled to receive a benefit under the Plan which he has not
received may file with the Committee a written claim specifying the basis for
his claim and the facts upon which he relies in making such claim. Such a claim
must be signed by the claimant or his authorized representative and shall be
deemed filed when delivered to any member of the Committee or its designee.

         9.2 NOTIFICATION TO CLAIMANT. Unless such claim is allowed in full by
the Committee, the Committee shall (within 90 days after such claim was filed,
plus an additional period of 90 days if required for processing and if notice of
the 90-day extension of time indicating the specific circumstances requiring the
extension and the date by which a decision shall be rendered is given to the
claimant within the first 90-day period) cause written notice to be mailed to
the claimant of the total or partial denial of such claim. Such notice shall be
written in a manner calculated to be understood by the claimant and shall state
(a) the specific reason(s) for the denial of the claim, (b) specific
reference(s) to pertinent provisions of the Plan and/or Trust Agreement on which
the denial of the claim was based, (c) a description of any additional material
or information necessary for the claimant to perfect the claim and an
explanation of why such material or information is necessary, and (d) an
explanation of the review procedure specified in Section 9.3. If a claimant does
not receive any notice from the Committee within 90 days after his claim is
filed with the Committee, his claim shall be deemed to have been denied.

         9.3 REVIEW PROCEDURE. Within six months after the denial of his claim,
the claimant may appeal such denial by filing with the Company his written
request for a review of his said claim. If the claimant does not file such a
request with the Company within such six-month period, the claimant shall be
conclusively presumed to have accepted as final and binding the initial decision
of the Committee on his claim. If such an appeal is so filed within such six

                                       66
<PAGE>   68

months, a Named Fiduciary designated by the Company shall (a) conduct a full and
fair review of such claim and (b) mail or deliver to the claimant a written
decision on the matter based on the facts and pertinent provisions of the Plan
and/or Trust Agreement within a period of 60 days after the receipt of the
request for review unless special circumstances require an extension of time, in
which case such decision shall be rendered not later than 120 days after receipt
of such request. If an extension of time for review is required, written notice
of the extension shall be furnished to the claimant prior to the commencement of
the extension. Such decision (i) shall be written in a manner calculated to be
understood by the claimant, (ii) shall state the specific reason(s) for the
decision, (iii) shall make specific reference(s) to pertinent provisions of the
Plan and/or Trust Agreement on which the decision is based and (iv) shall, to
the extent permitted by applicable law, be final and binding on all interested
persons. During such full review, the claimant or his duly authorized
representative shall be given an opportunity to review documents that are
pertinent to the claimant's claim and to submit issues and comments in writing.
If the decision on review is not furnished within such 60-day or 120-day period,
as the case may be, the claim shall be deemed denied on review.

         9.4 To the extent that a Named Fiduciary is designated by the Company
to conduct the review procedure, such Named Fiduciary shall have the same powers
to interpret the Plan and make factual findings with respect thereto as are
granted to the Committee under Section 10.11.

                                       67
<PAGE>   69

                    ARTICLE X. - ADMINISTRATION OF THE PLAN
                    ---------------------------------------
                         AND FIDUCIARY RESPONSIBILITIES
                         ------------------------------

         10.1 RESPONSIBILITY FOR ADMINISTRATION. Except to the extent that
particular responsibilities are assigned or delegated to other Fiduciaries
pursuant to the Trust Agreement, other Articles of the Plan or Section 10.3, the
Company (as the Administrator) shall be responsible for the administration of
the Plan. Each other Fiduciary shall have only such, powers duties,
responsibilities and authorities as are specifically conferred upon him or it
pursuant to provisions of the Plan or Trust Agreement. Any person may serve in
more than one fiduciary capacity with respect to the Plan or Trust Fund, if
pursuant to the Plan and/or Trust Agreement, he or it is assigned or delegated
any multiple fiduciary capacities.

         10.2 NAMED FIDUCIARIES. For the purposes of the Plan, the Named
Fiduciaries shall be the Committee, the Company, the Investment Manager, the
Trustee and to the extent provided in Article XV, the Participants. The Company
may, by written instrument, designate any other person or persons as a Named
Fiduciary or Named Fiduciaries to perform functions specified in such instrument
(or in a delegation pursuant to Section 10.3) which relate to the administration
of the Plan, provided such designee accepts such designation. Such a designation
may be terminated at any time by notice from the Company to the designee or by
notice from the designee to the Company.

         10.3 DELEGATION OF FIDUCIARY RESPONSIBILITIES. (1) The Committee or the
Company may delegate to any person or persons any one or more of its powers,
functions, duties and/or responsibilities with respect to the Plan or the Trust
Fund.

         (2) Any delegation pursuant to Subsection (1) of this Section, (a)
shall be signed on behalf of the Committee or the Company, and be delivered to
and accepted in writing by the delegatee, (b) shall contain such provisions and
conditions relating to such delegation as

                                       68
<PAGE>   70

the Committee or the Company deems appropriate, (c) shall specify the powers,
functions, duties and/or responsibilities therein delegated, (d) may be amended
from time to time by written agreement signed on behalf of the Committee or the
Company and by the delegatee and (e) may be revoked (in whole or in part) at any
time by written notice from one party to the other. A fully executed copy of any
instrument relating to any delegation (or revocation of any delegation) under
the Plan shall be filed with the Committee.

         10.4 IMMUNITIES. Except as otherwise provided in Section 10.5 or by
applicable law, (a) no Fiduciary shall have the duty to discharge any duty,
function or responsibility which is specifically assigned exclusively to another
Fiduciary or Fiduciaries by the terms of the Plan or Trust Agreement or is
delegated exclusively to another Fiduciary or Fiduciaries pursuant to procedures
for such delegation provided for in the Plan or Trust Agreement; (b) no
Fiduciary shall be liable for any action taken or not taken with respect to the
Plan or Trust Fund except for his own negligence or willful misconduct; (c) no
Fiduciary shall be personally liable upon any contract or other instrument made
or executed by him or on his behalf in the administration of the Plan or Trust
Fund; (d) no Fiduciary shall be liable for the neglect, omission or wrongdoing
of another Fiduciary; and (e) any Fiduciary may rely and shall be fully
protected in acting upon the advice of counsel, who may be counsel for any
Controlled Group Member, upon the records of a Controlled Group Member, upon the
opinion, certificate, valuation, report, recommendation or determination of the
certified public accountants appointed to audit a Controlled Group Member's
financial statements, or upon any certificate, statement or other representation
made by an Employee, a Participant, a Beneficiary or the Trustee concerning any
fact required to be determined under any of the provisions of the Plan.

         10.5 LIMITATION ON EXCULPATORY PROVISIONS. Notwithstanding any other
provision of the Plan or Trust Agreement, no provision of the Plan or Trust
Agreement shall be

                                       69
<PAGE>   71

construed to relieve (or have the effect of relieving) any Fiduciary from any
responsibility or liability for any obligation, responsibility or duty imposed
on such Fiduciary by Part 4 of Title 1 of ERISA.

         10.6 MEMBERSHIP OF THE COMMITTEE. The Committee shall be appointed by
the Board of Directors of the Company, which also shall provide for the number
of the members of the Committee and the manner of appointing and removing such
members. Any member of the Committee may resign by filing a written resignation
with the Company.

         10.7 ADMINISTRATIVE ASSISTANCE. The Committee may employ such clerical,
legal or other assistance as it deems necessary or advisable for the proper
administration of the Plan.

         10.8 COMPENSATION AND QUALIFICATION. The members of the Committee shall
serve without compensation for services hereunder. Participants of the Committee
shall not be disqualified from acting because of any interest, benefit or
advantage, inasmuch as it is recognized that the members may be Employees of the
Employers and Participants in the Plan, but no member of the Committee shall
vote or act in connection with the Committee's action relating solely to
himself. No bond or other security need be required of any Committee member in
such capacity or any jurisdiction.

         10.9 REVOCABILITY OF COMMITTEE ACTION. Any action taken by the
Committee with respect to the rights or benefits under the Plan of any
Participant or Beneficiary shall be revocable by the Committee as to payments or
distributions not theretofore made pursuant to such action, and appropriate
adjustments may be made in future payments or distributions to a Participant or
his Beneficiaries to offset any excess or underpayments theretofore made to such
Participant or his Beneficiaries.

                                       70
<PAGE>   72

         10.10 RULES AND PROCEDURES. The Committee may adopt rules for the
administration of the Plan and rules for its government and the conduct of its
business, including a rule authorizing one or more of its members or officers to
execute instruments in its behalf evidencing its action, and the Trustee may
rely upon any instrument signed by such person or persons so authorized as
properly evidencing the action of the Committee. Except as may otherwise be
provided by rules or procedures adopted by the Committee, the Committee may act
by majority action either at a meeting or in writing without a meeting and an
action evidenced by the signatures of a majority of the members of the Committee
shall be deemed to be the action of the Committee. Although various provisions
of the Plan provide for a filing with the Committee of various instruments, the
Committee may, by general announcement, specifically designate some other person
or persons, with whom or which such instruments may be filed.

         10.11 INTERPRETATION OF THE PLAN AND FINDINGS OF FACTS. The Committee
shall have sole and absolute discretion to interpret the provisions of the plan
(including, without limitation, by supplying omissions from, correcting
deficiencies in, or resolving inconsistencies or ambiguities in, the language of
the Plan), to make factual findings with respect to any issue arising under the
Plan, to determine the rights and status under the Plan of Participants and
other persons, to decide disputes arising under the Plan and to make any
determinations and findings (including factual findings) with respect to the
benefits payable thereunder and the persons entitled thereto as may be required
for the purposes of the Plan. In furtherance of, but without limiting, the
foregoing, the Committee is hereby granted the following specific authorities,
which it shall discharge in its sole and absolute discretion in accordance with
the terms of the Plan (as interpreted, to the extent necessary, by the
Committee):

                  (1) to resolve all questions (including factual questions)
     arising under the provisions of the Plan as to any individual's entitlement
     to become a Participant;

                                       71
<PAGE>   73

                  (2) to determine the amount of benefits, if any, payable to
     any person under the Plan (including to the extent necessary, making any
     factual findings with respect thereto); and

                  (3) to conduct the review procedure specified in Article IX.

All decisions of the Committee as to the facts of any case, as to the
interpretation of any provision of the Plan or its application to any case, and
as to any other interpretative matter or other determination or question under
the Plan shall be final and binding on all parties affected thereby, subject to
the provisions of Section 10.9 and Article IX. The Committee shall direct the
Trustee relative to benefits to be paid under the Plan and shall furnish the
Trustee with any information reasonably required by it for the purpose of paying
benefits under the Plan.

         10.12 DIRECTIONS TO TRUSTEE. The Committee shall direct the Trustee as
to the method of payment of, and the time at which, any benefit is to be paid to
a Participant or a Beneficiary from the Trust Fund and the particular Investment
Fund and Sub-Account from which each such payment is to be made. The Trustee
shall be entitled to rely conclusively on any such direction given to it by the
Committee in accordance with the provisions hereof.

                                       72
<PAGE>   74

                          ARTICLE XI. - MISCELLANEOUS
                          ---------------------------

         11.1 SPENDTHRIFT PROVISIONS. No right or interest of any kind of a
Participant or Beneficiary in the Trust Fund shall be anticipated, assigned
(either in law or equity), alienated or be subject to encumbrance, garnishment,
attachment, execution or levy of any kind, voluntary or involuntary, or any
other legal or equitable process, except in accordance with a qualified domestic
relations order as defined in Code Section 414(p). The Committee shall establish
procedures to determine the qualified status of domestic relations orders and to
administer distributions under such qualified orders in accordance with Code
Section 414(p). Notwithstanding any other provision of the Plan to the contrary,
the Plan shall honor a judgment, order, decree or settlement providing for the
offset of all or a part of a Participant's benefit under the Plan, to the extent
permitted under Code Section 401(a)(13)(C); provided that the requirements of
Code Section 401(a)(13)(C)(iii) relating to the protection of the Participant's
spouse (if any) are satisfied.

         11.2 FACILITY OF PAYMENT. In the event the Committee finds that any
Participant or Beneficiary to whom a benefit is payable under the Plan is (at
the time such benefit is payable) unable to care for his affairs because of
physical, mental or legal incompetence, the Committee, in its sole discretion,
may cause any payment due to him hereunder, for which prior claim has not been
made by a duly qualified guardian or other legal representative, to be paid to
the person or institution deemed by the Committee to be maintaining or
responsible for the maintenance of such Participant or Beneficiary; and any such
payment shall be deemed a payment for the account of such Participant or
Beneficiary and shall constitute a complete discharge of any liability therefor
under the Plan.

         11.3 NO ENLARGEMENT OF EMPLOYMENT RIGHTS. Nothing herein contained
shall constitute or be construed as a contract of employment between any
Employer and any Employee

                                       73
<PAGE>   75

or Participant and all Employees shall remain subject to discipline, discharge
and layoff to the same extent as if the Plan had never gone into effect. An
Employer by adopting the Plan, making contributions to the Trust Fund or taking
any other action with respect to the Plan does not obligate itself to continue
the employment of any Participant or Employee for any period or, except as
expressly provided in the Plan, to make any payments into the Trust Fund.

         11.4 MERGER OR TRANSFER OF ASSETS. There shall not be any merger or
consolidation of the Plan with, or the transfer of assets or liabilities of the
Plan to, any other plan, unless each Participant of the Plan would (if the Plan
then terminated) receive a benefit immediately after the merger, consolidation
or transfer which is equal to or greater than the benefit he would have been
entitled to receive immediately before the merger, consolidation, or transfer
(if the Plan had then terminated). The Company reserves the right to merge or
consolidate this Plan with, and to transfer the assets of the Plan to, any other
Plan, without the consent of any other Employer.

         11.5 ACTION BY COMPANY. Wherever the Company is authorized to act under
the Plan (including but not limited to any delegation of its fiduciary powers
and responsibilities under the Plan), such action shall be taken, unless
otherwise provided in the Plan, by written instrument executed by an officer of
the Company. The Trustee may rely on any instrument so executed as being validly
authorized and as properly evidencing the action of the Company.

         11.6 SEVERABILITY PROVISION. If any provision of the Plan or Trust
Agreement or the application thereof to any circumstance or person is invalid,
the remainder of the Plan or Trust Agreement and the application of such
provision to other circumstances or persons shall not be affected thereby.

         11.7 MILITARY SERVICE. Notwithstanding any provision of the Plan to the
contrary, contributions, benefits and service credit with respect to qualified
military service will

                                       74
<PAGE>   76

be provided in accordance with Code Section 414(u). "Qualified military service"
means any service in the uniformed services (as defined in chapter 43 of title
38 of the United States Code) by any individual if such individual is entitled
to reemployment rights under such chapter with respect to such service.

                                       75
<PAGE>   77

                         ARTICLE XII. - OTHER EMPLOYERS
                         ------------------------------

         12.1 ADOPTION BY OTHER EMPLOYERS. Any corporation or business
organization that is not an Employer may, with the consent of the Committee,
adopt the Plan and thereby become an Employer hereunder by executing an
instrument evidencing such adoption and filing a copy thereof with the Committee
and the Trustee. Such adoption may be subject to such terms and conditions as
the Committee requires and approves.

         12.2 WITHDRAWAL OF EMPLOYER. Any Employer (other than the Company)
which adopts the Plan may elect separately to withdraw from the Plan. Any such
withdrawal shall be expressed in an instrument executed by the withdrawing
Employer and filed with the Company and the Trustee. Such withdrawal shall
become effective when so filed unless some other effective date is designated in
the instrument and approved by the Committee. No such withdrawal shall decrease
the amount of Employer Contributions to be made by the Employer on account of
periods preceding such withdrawal. In the event of such a withdrawal of an
Employer, or in the event the Plan is terminated as to an Employer (but not all
the Employers) pursuant to Section 13.1, such Employer (herein called "former
Employer") shall cease to be an Employer, and Employer Contributions of such
former Employer and Before-Tax and Transfer Contributions of Employees of such
former Employer shall cease.

         12.3 WITHDRAWAL OF EMPLOYEE GROUP. Any Employer may elect to withdraw
from the Plan any designated group of its Employees while continuing to include
another group or other groups of its Employees within the Plan. Any such
withdrawal of a designated group of Employees shall be expressed in an
instrument executed by the Employer and filed with the Company (if the Employer
making such withdrawal is not the Company) and the Trustee. Such withdrawal
shall become effective when so filed unless some other effective date is
designated in the instrument and approved by the Committee. No such withdrawal
of a designated group of

                                       76
<PAGE>   78

Employees shall decrease the amount of Employer Contributions to be made by the
Employer in respect of Affected Employees on account of periods preceding such
withdrawal. In the event of such withdrawal by an Employer or in the event the
Plan is terminated by the Company as to a group of Employees of another Employer
pursuant to Section 13.1, Employer Contributions of the Employer in respect of
affected Employees and Before-Tax and Transfer Contributions of affected
Employees shall cease.

                                       77
<PAGE>   79

                    ARTICLE XIII. - AMENDMENT OR TERMINATION
                    ----------------------------------------

         13.1 RIGHT TO AMEND OR TERMINATE. Subject to the limitations of
Sections 4.8(1) and 7.7 of the Plan, the Company has reserved, and does hereby
reserve, the right at any time, by action of any Executive Vice President or any
officer of the Company who is senior to the Executive Vice Presidents of the
Company, without the consent of any other Employer or of the Participants,
Beneficiaries or any other person, (a) to terminate the Plan, in whole or in
part or as to any or all of the Employers or as to any designated group of
Employees, Participants and their Beneficiaries, or (b) to amend the Plan, in
whole or in part. No such termination or amendment shall decrease the amount of
Employer Contributions to be made by an Employer on account of any period
preceding such termination or amendment. The Plan may be amended only by the
Company.

         13.2 PROCEDURE FOR TERMINATION OR AMENDMENT. Any termination or
amendment of the Plan pursuant to Section 13.1 shall be expressed in an
instrument executed by the Trustee and two officers of the Company (at least one
of whom is an Executive Vice President or an officer senior to the Executive
Vice Presidents) and shall become effective as of the date designated in such
instrument or, if no date is so designated, on the date of its execution.

         13.3 DISTRIBUTION UPON TERMINATION. If the Plan shall be terminated by
the Company as to all Employers, Before-Tax, Transfer and Employer Contributions
to the Plan shall cease and, as soon as practicable after such termination, the
Trustee shall make distribution (if such distribution is permitted by applicable
law) to each Employee as if the Plan had not been terminated.

         13.4 AMENDMENT CHANGING VESTING SCHEDULE. (1) If any Plan amendment
changes any vesting schedule under the Plan each Participant having not less
than three years of service shall be permitted to elect, during the election
period described in Subsection (2) of this

                                       78
<PAGE>   80

Section, to have his nonforfeitable percentage computed under the Plan without
regard to such amendment.

         (2) Such election period shall begin on the date the Plan amendment is
adopted and shall end no earlier than the latest of the following dates: (a) the
date which is 60 days after the day the Plan amendment is adopted, (b) the date
which is 60 days after the day the Plan amendment becomes effective, or (c) the
date which is 60 days after the day the Participant is issued written notice of
the Plan amendment by the Committee or the Company. (3) For purposes of
Subsection (1) of this Section, a Participant shall be considered to have
completed three years of service if such Participant has completed three years
of service, whether or not consecutive, without regard to the exceptions of Code
Section 411(a)(4), prior to the expiration of the election period described in
Subsection (2) of this Section.

         13.5 NONFORFEITABLE AMOUNTS. Notwithstanding any other provision of the
Plan, upon the termination or partial termination of the Plan or upon complete
discontinuance of contributions under the Plan, the rights of all Employees to
benefits accrued to the date of such termination or partial termination or
discontinuance, to the extent then funded, or the amounts credited to the
Employees' Accounts, shall be nonforfeitable.

         13.6 PROHIBITION ON DECREASING ACCRUED BENEFITS. No amendment to the
Plan (other than an amendment described in Code Section 412(c)(8)) shall have
the effect of decreasing the accrued benefit of any Participant. For purposes of
the preceding sentence, a Plan amendment which has the effect of (a) eliminating
or reducing an early retirement benefit or a retirement-type subsidy (as defined
in regulations of the Secretary of the Treasury) or (b) eliminating an optional
form of benefit (except as permitted by any such regulations) with respect to
benefits attributable to service before the amendment, shall be treated as
decreasing accrued benefits, provided, however, that in the case of a
retirement-type subsidy this sentence shall apply

                                       79
<PAGE>   81

only with respect to a Participant who satisfies (either before or after the
amendment) the preamendment conditions for the subsidy.

                                       80
<PAGE>   82

                   ARTICLE XIV. - TOP-HEAVY PLAN REQUIREMENTS
                   ------------------------------------------

         14.1 DEFINITIONS. For the purposes of this Article, the following
terms, when used with initial capital letters, shall have the following
respective meanings:

         (1) AGGREGATION GROUP: Permissive Aggregation Group or Required
Aggregation Group, as the context shall require.

         (2) COMPENSATION: "Compensation" as defined in Section 4.9(3) (subject
to the limitations described in Section 1.1(14)(b)).

         (3) DEFINED BENEFIT PLAN: A qualified plan as defined in Code Section
414(j).

         (4) DEFINED CONTRIBUTION PLAN: A qualified plan as defined in Code
Section 414(i).

         (5) DETERMINATION DATE: For any Plan Year, the last day of the
immediately preceding Plan Year, except that in the case of the first Plan Year
of the Plan, the Determination Date shall be the last day of such first Plan
Year.

         (6) FORMER KEY EMPLOYEE: A Non-Key Employee with respect to a Plan Year
who was a Key Employee in a prior Plan Year. Such term shall also include his
Beneficiary in the event of his death.

         (7) KEY EMPLOYEE: An Employee or former Employee who is or was a
Participant and who, at any time during the current Plan Year or any of the four
preceding Plan Years, is (a) an officer of an Employer (limited to no more than
50 Employees or, if lesser, the greater of 3 Employees or 10 percent of the
Employees) having an annual Compensation greater than 50% of the dollar amount
in effect under Code Section 415(b)(1)(A) for any such Plan Year, (b) one of the
10 Employees owning (or considered as owning within the meaning of Code Section
318) the largest interests in an Employer and having annual Compensation of more
than the applicable dollar amount referred to in Section 4.9(1), (c) a 5-percent
owner (as such term is

                                       81
<PAGE>   83

defined in Code Section 416(i)(1)(B)(i) or (d) a 1-percent owner (as such term
is defined in Code Section 416(i)(1)(B)(ii)) having an annual Compensation of
more than $150,000. For purposes of clause (b) of this Subsection, if two
Employees have the same interest in an Employer, the Employee having greater
annual Compensation shall be treated as having a larger interest. The term "Key
Employee" shall also include such Employee's Beneficiary in the event of his
death. For purposes of this Subsection "Compensation" has the meaning given such
term by Code Section 414(q)(7).

         (8) NON-KEY EMPLOYEE: An Employee or former Employee who is or was a
Participant and who is not a Key Employee. Such term shall also include his
Beneficiary in the event of his death.

         (9) PERMISSIVE AGGREGATION GROUP: The group of qualified plans of an
Employer consisting of:

                  (a) the plans in the Required Aggregation Group; plus

                  (b) one (1) or more plans designated from time to time by the
     Committee that are not part of the Required Aggregation Group but that
     satisfy the requirements of Code Sections 401(a)(4) and 410 when considered
     with the Required Aggregation Group.

         (10) REQUIRED AGGREGATION GROUP: The group of qualified plans of an
Employer consisting of:

                  (a) each plan in which a Key Employee participates; plus

                  (b) each other plan which enables a plan in which a Key
     Employee participates to meet the requirements of Code Sections 401(a)(4)
     or 410.

         (11) TOP-HEAVY ACCOUNT BALANCE: A Participant's (including a
Participant who has received a total distribution from this Plan) or a
Beneficiary's aggregate balance standing to his account as of the Valuation Date
coinciding with or immediately preceding the Determination

                                       82
<PAGE>   84

Date (as adjusted by the amount of any Employer Contributions made or due to be
made after such Valuation Date but before the expiration of the extended payment
period in Code Section 412(c)(10)), provided, however, that such balance shall
include the aggregate distributions made to such Participant or Beneficiary
during the five (5) consecutive Plan Years ending with the Plan Year that
includes the Determination Date (including distributions under a terminated plan
which if it had not been terminated would have been included in a Required
Aggregation Group), and provided further that if an Employee or former Employee
has not performed services for any Employer maintaining the Plan at any time
during the 5-year period ending on the Determination Date, his account (and/or
the account of his Beneficiary) shall not be taken into account.

         (12) TOP-HEAVY GROUP: An Aggregation Group if, as of a Determination
Date, the aggregate present value of accrued benefits for Key Employees in all
plans in the Aggregation Group (whether Defined Benefit Plans or Defined
Contribution Plans) is more than sixty percent (60%) of the aggregate present
value of accrued benefits for all employees in such plans.

         (13) TOP-HEAVY PLAN: See Section 14.2.

         14.2 DETERMINATION OF TOP-HEAVY STATUS. (1) Except as provided by
Subsections (2) and (3) of this Section, the Plan shall be a Top-Heavy Plan if,
as of a Determination Date:

                  (a) the aggregate of Top-Heavy Account Balances for Key
     Employees is more than sixty percent (60%) of the aggregate of all
     Top-Heavy Account Balances, excluding for this purpose the aggregate
     Top-Heavy Account Balances of Former Key Employees; or

                  (b) if the Plan is included in a Required Aggregation Group
     which is a Top-Heavy Group.

                                       83
<PAGE>   85

         (2) If the Plan is included in a Required Aggregation Group which is
not a Top-Heavy Group, the Plan shall not be a Top-Heavy Plan notwithstanding
the fact that the Plan would otherwise be a Top-Heavy Plan under Paragraph (a)
of Subsection (1) of this Section.

         (3) If the Plan is included in a Permissive Aggregation Group which is
not a Top-Heavy Group, the Plan shall not be a Top-Heavy Plan notwithstanding
the fact that the Plan would otherwise be a Top-Heavy Plan under Subsection (1)
of this Section.

         14.3 TOP-HEAVY PLAN REQUIREMENTS. Notwithstanding any other provisions
of the Plan to the contrary, if the Plan is a Top-Heavy Plan for any Plan Year,
the Plan shall then satisfy the following requirements for such Plan Year:

         (1) The minimum contribution requirement as set forth in Section 14.4.

         (2) The adjustment to minimum benefits and allocations as set forth in
Section 14.5.

         14.4 MINIMUM CONTRIBUTION REQUIREMENT. If the Plan is a Top-Heavy Plan
for any Plan Year:

         (1) Each Non-Key Employee who is eligible to share in any Employer
Contribution for such Plan Year (or who would have been eligible to share in any
such Employer Contribution if a Before-Tax Contribution had been made for him
during such Plan Year) shall be entitled to receive an allocation of such
Employer Contribution, which is at least equal to three percent (3%) of his
Compensation for such Plan Year.

         (2) The three percent (3%) minimum contribution requirement under
Subsection (1) of this Section for a Non-Key Employee shall be increased to four
percent (4%) if the Employer maintains a Defined Benefit Plan which does not
cover such Non-Key Employee.

         (3) The percentage minimum contribution requirement set forth in
Subsections (1) and (2) of this Section with respect to a Plan Year shall not
exceed the percentage at which

                                       84
<PAGE>   86

Employer Contributions are made (or required to be made) under the Plan for such
Plan Year for the Key Employee for whom such percentage is the highest for such
Year.

         (4) The percentage minimum contribution requirement set forth in
Subsections (2) and (3) of this Section may also be reduced or eliminated in
accordance with Section 14.6(2).

         (5) For the purpose of Subsection (3) of this Section, contributions
taken into account shall include like contributions under all other Defined
Contribution Plans in the Required Aggregation Group, excluding any such plan in
the Required Aggregation Group if that plan enables a Defined Benefit Plan in
such Required Aggregation Group to meet the requirements of Code Sections
401(a)(4) or 410.

         (6) For the purpose of this Section, the term "Employer Contributions"
shall include Before-Tax Contributions made for an Employee.

         14.5 ADJUSTMENT TO MINIMUM BENEFITS AND ALLOCATIONS. If the Plan is a
Top-Heavy Plan for any Plan Year, and if the Employer maintains a Defined
Benefit Plan which could or does provide benefits to Participants in this Plan,
then the percentage minimum contribution requirement in Section 14.4(a) shall be
seven and one-half percent (7-1/2%) for a Non-Key Employee who is covered by
this Plan and the Defined Benefit Plan.

         14.6 COORDINATION WITH OTHER PLANS. (1) In applying this Article, an
Employer and all Controlled Group Members shall be treated as a single employer,
and the qualified plans maintained by such single employer shall be taken into
account.

         (2) In the event that another Defined Contribution Plan or Defined
Benefit Plan maintained by the Controlled Group provides contributions or
benefits on behalf of Participants in this Plan, such other plan(s) shall be
taken into account in determining whether this Plan satisfies Section 14.3; and
the minimum contribution required for a Non-Key Employee in this Plan under
Section 14.4 will be reduced or eliminated, in accordance with the requirements

                                       85
<PAGE>   87

of Code Section 416 and the Regulations thereunder, if a minimum contribution or
benefit is made or accrued in whole or in part in respect of such other plan(s).

         (3) Principles similar to those specifically applicable to this Plan
under this Article, and in general as provided for in Code Section 416 and the
Regulations thereunder, shall be applied to the other plan(s) required to be
taken into account under this Article in determining whether this Plan and such
other plan(s) meet the requirements of such Code Section 416 and the Regulations
thereunder.

                                       86
<PAGE>   88

                  ARTICLE XV. - PROVISIONS RELATING TO VOTING
                  -------------------------------------------
                         AND TENDER OFFERS FOR NCC STOCK
                         -------------------------------

         15.1 VOTING OF NCC STOCK. All voting rights on shares of NCC Stock held
by the Trustee shall be exercised by the Trustee only as directed by the
Participants and Beneficiaries with respect to allocated shares of NCC Stock,
and acting in their capacity as Named Fiduciaries (within the meaning of ERISA
Section 402) with respect to non-directed shares of NCC Stock, in accordance
with the following provisions of this Section:

         (1) As soon as practicable before each annual or special shareholders'
meeting of the Company, the Trustee shall furnish to each Participant a copy of
the proxy solicitation material sent generally to shareholders, together with a
form requesting confidential instructions on how the shares allocated to such
Participant's Account and a proportionate share (based on the amount of any
shares allocated to his Account) of any non-directed shares (including
fractional shares to 1/1000th of a share) are to be voted. The Company and the
Committee shall cooperate with the Trustee to ensure that Participants receive
the requisite information in a timely manner. Except as provided in Subsection
(d) of this Section, the materials furnished to the Participants shall include a
notice from the Trustee explaining each Participant's right to instruct the
Trustee with respect to the voting of shares. Upon timely receipt of such
instructions, the Trustee (after combining votes of fractional shares to give
effect to the greatest extent to Participants' instructions) shall vote the
shares as instructed. If voting instructions for shares of NCC Stock allocated
to the Account of any Participant are not timely received by the Trustee for a
particular shareholders' meeting, such shares shall not be voted in accordance
with the instructions but shall be voted as provided in Subsection (3) below.
The instructions received by the Trustee from Participants or Beneficiaries
shall be held by the Trustee in strict confidence and shall not be

                                       87
<PAGE>   89

divulged or released to any person including directors, officers or employees of
the Company, or of any other Employer, except as otherwise required by law.

         (2) With respect to all corporate matters submitted to Participants,
all shares of NCC Stock allocated to the Accounts of Participants shall be voted
only in accordance with the directions of such Participants as given to the
Trustee. Each Participant shall be entitled to direct the voting of shares of
NCC Stock (including fractional shares to 1/1000th of a share) allocated to his
Account. With respect to shares of NCC Stock allocated to the Account of a
deceased Participant, such Participant's Beneficiary shall be entitled to direct
the voting with respect to such allocated shares as if such Beneficiary were the
Participant.

         (3) Each Participant who has been allocated NCC Stock in his Account
and who is entitled to vote on any manner presented for a vote by the
shareholders also shall, as a Named Fiduciary, direct the Trustee with respect
to the vote of a portion of the shares of NCC Stock for which no timely
instructions were received. Such direction shall be with respect to such number
of votes equal to the total number of votes attributable to non-directed shares
of NCC Stock multiplied by a fraction, the numerator of which is the number of
shares of NCC Stock allocated to the Participant's Account and the denominator
of which is the total number of shares allocated to the Accounts of such
Participants who have provided directions to the Trustee with respect to
non-directed shares under this Subsection. Each Participant's voting
instructions shall be separately stated as to his allocated shares on the one
hand, and as a Named Fiduciary with respect of a portion of the non-directed
shares on the other hand. Fractional shares shall be rounded to the nearest
1/100th of a share.

         15.2 TENDER OFFERS. Except as otherwise expressly provided in the Plan,
the Trustee shall not sell, alienate, encumber, pledge, transfer or otherwise
dispose of or tender or withdraw, any shares of NCC Stock held by it under the
Plan. All tender or exchange decisions

                                       88
<PAGE>   90

with respect to NCC Stock held by the Plan shall be made only by the
Participants and Beneficiaries with respect to shares allocated to their
accounts, and Participants and Beneficiaries acting in their capacity as Named
Fiduciaries (within the meaning of ERISA Section 402) with respect to
non-directed shares in accordance with the following provisions of this Section:

         (1) In the event an offer shall be received by the Trustee (including a
tender offer for shares of NCC Stock subject to Section 14(d)(1) of the
Securities Exchange Act of 1934 or subject to Rule l3e-4 promulgated under that
Act, as those provisions may from time to time be amended) to purchase or
exchange any shares of NCC Stock held by the Plan, the Trustee shall advise each
Participant who has shares of NCC Stock credited to such Participant's Account
in writing of the terms of the offer as soon as practicable after its
commencement and shall furnish each Participant with a form by which he may
separately instruct the Trustee confidentially whether or not to tender or
exchange shares allocated to such Participant's Account and (based on any NCC
Stock allocated to such Participant's Account) a proportionate share of any
non-directed shares (including fractional shares to 1/1000th of a share). The
materials furnished to the Participants shall include:

                  (a) a notice from the Trustee explaining Participants' rights
     to instruct the Trustee with respect to allocated and non-directed shares
     as provided herein; and

                  (b) such related documents as are prepared by any person and
     provided to the shareholders of the Company pursuant to the Securities
     Exchange Act of 1934.

The Committee and the Trustee may also provide Participants with such other
material concerning the tender or exchange offer as the Trustee or the Committee
in its discretion determine to be appropriate; PROVIDED, HOWEVER, that prior to
any distribution of materials by the Committee, the Trustee shall be, furnished
with complete copies of all such materials. The

                                       89
<PAGE>   91

Company and the Committee shall cooperate with the Trustee to ensure that
Participants receive the requisite information in a timely manner.

         (2) The Trustee shall tender or not tender shares or exchange shares of
NCC Stock allocated to the Accounts of any Participant (including fractional
shares to 1/1000th of a share), only as and to the extent instructed by the
Participant. With respect to shares of NCC Stock allocated to the Account of a
deceased Participant, such Participant's Beneficiary shall be entitled to direct
the Trustee whether or not to tender or exchange such shares as if such
Beneficiary were the Participant. The instructions received by the Trustee from
Participants or Beneficiaries shall be held by the Trustee in strict confidence
and shall not be divulged or released to any person, including directors,
officers or employees of the Company, or of any other Employer, except as
otherwise required by law.

         (3) Each Participant who has been allocated NCC Stock in his Account
and who is entitled to direct the Trustee whether or not to tender or exchange
shares of NCC Stock allocated to his Accounts also shall direct the Trustee, as
a Named Fiduciary, with respect to the tender or exchange of a portion of the
shares of NCC Stock for which no timely instructions are received. Such
direction shall apply to such number of non-directed shares multiplied by a
fraction, the numerator of which is the number of shares of NCC Stock allocated
to the Participant's Account and the denominator of which is the total number of
shares of NCC Stock allocated to the Accounts of such Participants who have
provided directions to the Trustee with respect to non-directed shares under
this Subsection. Each Participant's directions shall be separately stated as to
his allocated shares on the one hand and as a Named Fiduciary with respect to a
portion of the non-directed shares on the other hand. Fractional shares shall be
rounded to the nearest 1/1000th of a share.

                                       90
<PAGE>   92

         (4) In the event, under the terms of a tender offer or otherwise, any
shares of NCC Stock tendered for sale, exchange or transfer pursuant to such
offer may be withdrawn from such offer, the Trustee shall follow such
instructions respecting the withdrawal of such securities from such offer in the
same manner and the same proportion as shall be timely received by the Trustee
from the Participants entitled under this Section to give instructions as to the
sale, exchange or transfer of securities pursuant to such offer.

         (5) In the event that an offer for fewer than all of the shares of NCC
Stock held by the Trustee shall be received by the Trustee, each Participant who
has been allocated any NCC Stock subject to such offer shall be entitled to
direct the Trustee as to the acceptance or rejection of such offer (as provided
by Subsections (l)-(4) of this Section) with respect to the largest portion of
such NCC Stock as may be possible given the total number or amount of shares of
Stock the Plan may sell, exchange or transfer pursuant to the offer based upon
the instructions received by the Trustee from all other Participants who shall
timely instruct the Trustee pursuant to this Section to sell, exchange or
transfer such shares pursuant to such offer, each on a PRO RATA basis in
accordance with the number or amount of such shares allocated to his Accounts.

         (6) In the event an offer shall be received by the Trustee and
instructions shall be solicited from Participants pursuant to Subsections
(l)-(4) of this Section regarding such offer, and prior to termination of such
offer, another offer is received by the Trustee for the securities subject to
the first offer, the Trustee shall use its best efforts under the circumstances
to solicit instructions from the Participants to the Trustee:

                  (a) with respect to securities tendered for sale, exchange or
     transfer pursuant to the first offer, whether to withdraw such tender, if
     possible, and, if withdrawn, whether to tender any securities so withdrawn
     for sale, exchange or transfer pursuant to the second offer and

                                       91
<PAGE>   93

                  (b) with respect to securities not tendered for sale, exchange
     or transfer pursuant to the first offer, whether to tender or not to tender
     such securities for sale, exchange or transfer pursuant to the second
     offer.

The Trustee shall follow all such instructions received in a timely manner from
Participants in the same manner and in the same proportion as provided in
Subsections (1)-(4) of this Section. With respect to any further offer for any
NCC Stock received by the Trustee and subject to any earlier offer (including
successive offers from one or more existing offerors), the Trustee shall act in
the same manner as described above.

         (7) A Participant's instructions to the Trustee to tender or exchange
shares of NCC Stock shall not be deemed a withdrawal or suspension from the Plan
or a forfeiture of any portion of the Participant's interest in the Plan. Funds
received in exchange for tendered shares shall be credited to the Account of the
Participant whose shares were tendered and shall be used by the Trustee to
purchase NCC Stock, as soon as practicable. In the interim, the Trustee shall
invest such funds in obligations or instruments which are appropriate
investments for the Money Market Fund.

         (8) Subject to any provisions of this Plan to the contrary, in the
event the Company initiates a tender or exchange offer, the Trustee may, in its
sole discretion, enter into an agreement with the Company not to tender or
exchange any shares of NCC Stock in such offer, in which event, the foregoing
provisions of this Section shall have no effect with respect to such offer and
the Trustee shall not tender or exchange any shares of NCC Stock in such offer.

                                       92
<PAGE>   94

         This National City Savings and Investment Plan No. 3 is hereby executed
at Cleveland, Ohio, this ___ day of _______________, ____ but effective as
otherwise herein set forth.

NATIONAL CITY BANK, TRUSTEE                 NATIONAL CITY CORPORATION

By                                          By
    ----------------------------               --------------------------------
    Title:                                     Title:

And                                         And
    ----------------------------               --------------------------------
    Title:                                     Title:<PAGE>   1
-----------------------------------------------------------------------------

                              MICROTEST, INC.

                                       and

                  AMERICAN STOCK TRANSFER & TRUST COMPANY,

                                 as RIGHTS AGENT

                                RIGHTS AGREEMENT

                            Dated as of April 4, 2001

------------------------------------------------------------------------------
<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                              PAGE

<S>                                                                           <C>
Section 1.  Certain Definitions.............................................    1

Section 2.  Appointment of Rights Agent.....................................    5

Section 3.  Issue of Rights Certificates....................................    6

Section 4.  Form of Rights Certificates.....................................    7

Section 5.  Countersignature and Registration...............................    8

Section 6.  Transfer, Split-Up, Combination and Exchange of Rights
            Certificates; Mutilated, Destroyed, Lost or Stolen
            Rights Certificates.............................................    9

Section 7.  Exercise of Rights; Purchase Price; Expiration Date of
            Rights..........................................................   10

Section 8.  Cancellation and Destruction of Rights Certificates.............   11

Section 9.  Reservation and Availability of Preferred Stock.................   12

Section 10. Preferred Stock Record Date.....................................   13

Section 11. Adjustment of Purchase Price, Number and Kind of Shares
            and Number of Rights............................................   13

Section 12. Certificate of Adjusted Purchase Price or Number of
            Shares..........................................................   21

Section 13. Consolidation, Merger or Sale or Transfer of Assets or
            Earning Power...................................................   22

Section 14. Fractional Rights and Fractional Shares.........................   25

Section 15. Rights of Action................................................   26

Section 16. Agreement of Rights Holders.....................................   26

Section 17. Rights Certificate Holder Not Deemed a Stockholder..............   27

Section 18. Concerning the Rights Agent.....................................   27

Section 19. Merger or Consolidation or Change of Name of Rights Agent.......   27

Section 20. Duties of Rights Agent..........................................   28

Section 21. Change of Rights Agent..........................................   30

Section 22. Issuance of New Rights Certificates.............................   31

Section 23. Redemption and Termination......................................   32

Section 24. Exchange........................................................   32

Section 25. Notice of Certain Events........................................   34

Section 26. Notices.........................................................   34

Section 27. Supplements and Amendments......................................   35

Section 28. Successors......................................................   36

Section 29. Determinations and Actions by the Board of Directors............   36

Section 30. Benefits of This Agreement......................................   36
</TABLE>

                                      -i-
<PAGE>   3
                                TABLE OF CONTENTS
                                   (CONTINUED)
<TABLE>
<CAPTION>
                                                                             PAGE
<S>                                                                           <C>
Section 31. Severability....................................................   36

Section 32. Governing Law...................................................   37

Section 33. Counterparts....................................................   37

Section 34. Descriptive Headings............................................   37
</TABLE>

                                      -ii-
<PAGE>   4
EXHIBITS

Exhibit A - Form of Certificate of Designation of Series A Junior Participating
            Preferred Stock
Exhibit B - Form of Rights Certificate
Exhibit C - Summary of Rights to Purchase Shares of Series A Preferred Stock

                                      iii
<PAGE>   5
                                RIGHTS AGREEMENT

            RIGHTS AGREEMENT ("Agreement"), dated as of April 4, 2001, between
Microtest, Inc., a Delaware corporation (the "Company"), and American Stock
Transfer & Trust Company, a New York banking corporation (the "Rights Agent").

            The Board of Directors of the Company has authorized and declared a
dividend of one right (each, a "Right") for each share of Common Stock (as
hereinafter defined) of the Company outstanding as of the Close of Business (as
hereinafter defined) on April 14, 2001 (the "Record Date"), each Right
representing the right to purchase one one-thousandth (subject to adjustment) of
a share of Preferred Stock (as hereinafter defined), upon the terms and subject
to the conditions herein set forth, and further authorized and directed the
issuance of one Right (subject to adjustment as provided herein) with respect to
each share of Common Stock that shall become outstanding between the Record Date
and the earliest of the Distribution Date, the Redemption Date or the Final
Expiration Date (as such terms are hereinafter defined); provided, however, that
Rights may be issued with respect to shares of Common Stock that shall become
outstanding after the Distribution Date and prior to the Expiration Date in
accordance with Section 22.

            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 Agreement, the
following terms have the meanings indicated:

            "Acquiring Person" shall mean any Person (as such term is
hereinafter defined) who or which, together with all Affiliates and Associates
(as such terms are hereinafter defined) of such Person, shall be the Beneficial
Owner (as such term is hereinafter defined) of 15% or more of the shares of
Common Stock of the Company then outstanding, but shall not include the Company,
any Subsidiary (as such term is hereinafter defined) of the Company, any
employee benefit plan of the Company or any Subsidiary of the Company, or any
entity holding shares of Common Stock for or pursuant to the terms of any such
plan. Notwithstanding the foregoing:

                  (i) no Person or Group (as such term is herein defined) shall
be deemed to be an "Acquiring Person" because as of the "Commencement Date" such
Person or Group beneficially owns 15% or more of the Common Stock of the Company
then outstanding; provided, however, that if any such Person or Group shall,
after the Commencement Date, become the Beneficial Owner of an additional 1% or
more of the Common Stock of the Company (other than pursuant to a dividend or
distribution paid or made by the Company on the outstanding Common Stock or
pursuant to a split or subdivision of the outstanding Common Stock, and
excluding any Common Stock over which such Person obtains beneficial ownership,
after the Commencement Date, as a result of any transfer from any other member
of the same Group), then such Person or Group shall be deemed to be an
"Acquiring Person." If any Person or Group transfers beneficial ownership of any
Common Stock of the Company held by such Person or Group to another Person or
Persons which, in turn, (i) are beneficially owned entirely by such transferor
or, if the transferor is a Group, are beneficially owned entirely by Persons who
are members of such Group, or (ii) beneficially own all of such transferor or,
if the transferor is a
<PAGE>   6
Group, beneficially own all of one or more of the Persons who are members of
such Group, the transferee shall, for purposes of the definition of "Acquiring
Person" in this Agreement, be deemed to have held all such transferred shares of
Common Stock since the date the shares were originally acquired by the
transferor. All shares of Common Stock of the Company beneficially owned by a
Person who is a member of a Group or by the estate or any beneficiaries of the
estate of a Person who is a member of a Group shall be deemed to be shares
beneficially owned by such Group.

                  (ii) no Person shall become an "Acquiring Person" as the
result of an acquisition of shares of Common Stock by the Company which, by
reducing the number of shares outstanding, increases the proportionate number of
shares beneficially owned by such Person to 15% or more of the shares of Common
Stock of the Company then outstanding; provided, however, that if a Person shall
become the Beneficial Owner of 15% or more of the shares of Common Stock of the
Company then outstanding, by reason of share purchases by the Company and shall,
after such share purchases by the Company, become the Beneficial Owner of any
additional shares of Common Stock of the Company (other than pursuant to a
dividend or distribution paid or made by the Company on the outstanding Common
Stock or pursuant to a split or subdivision of the outstanding Common Stock),
then such Person shall be deemed to be an "Acquiring Person" hereunder; and

                  (iii) if the Board of Directors of the Company determines in
good faith that a Person who would otherwise be an "Acquiring Person" became
such inadvertently (including, without limitation, because (A) such Person was
unaware that it beneficially owned a percentage of Common Stock that would
otherwise cause such Person to be an "Acquiring Person" or (B) such Person was
aware of the extent of its Beneficial Ownership of Common Stock but had no
actual knowledge of the consequences of such Beneficial Ownership under this
Agreement) and without any intention of changing or influencing control of the
Company, then such Person shall not be deemed to be or to have become an
"Acquiring Person" for any purposes of this Agreement unless and until such
Person shall have failed to divest itself, as soon as practicable (as
determined, in good faith, by the Board of Directors of the Company), of
Beneficial Ownership of a sufficient number of shares of Common Stock so that
such Person would no longer otherwise qualify as an "Acquiring Person."

            "Adjustment Shares" has the meaning set forth in Section 11(a)(ii).

            "Affiliate" and "Associate" shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under
the Exchange Act (as such term is hereinafter defined).

            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, for purposes of Section
13(d) of the Exchange Act and Rule 13d-3 thereunder (or any comparable or
successor law or regulation); or

                  (ii) which such Person or any of such Person's Affiliates or
Associates, directly or indirectly, has (A) the right to acquire (whether such
right is exercisable

                                       2
<PAGE>   7
immediately or only after the passage of time) pursuant to any agreement,
arrangement or understanding (whether or not in writing, other than customary
agreements with and between underwriters and selling group members with respect
to a bona fide public offering of securities), or upon the exercise of
conversion rights, exchange rights, rights (other than the Rights), warrants or
options, or otherwise; 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 further, however, that a Person shall not
be deemed the "Beneficial Owner" of, or to "beneficially own," any security
under this subparagraph (ii) as a result of an agreement, arrangement or
understanding to vote such security if such agreement, arrangement or
understanding: (x) arises solely from a revocable proxy given in response to a
public proxy or consent solicitation made pursuant to, and in accordance with,
the applicable provisions of the Exchange Act and the Exchange Act Regulations,
and (y) is not reportable by such Person on Schedule 13D under the Exchange Act
(or any comparable or successor report); or

                  (iii) which are beneficially owned, directly or indirectly, by
any other Person (or any Affiliate or Associate thereof) with which such Person
(or any of such Person's Affiliates or Associates) has any agreement,
arrangement or understanding (whether or not in writing, 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
subparagraph (ii) of this paragraph) or disposing of any securities of the
Company; provided, however, that in no case shall an officer or director of the
Company be deemed (A) the Beneficial Owner of any securities beneficially owned
by another officer or director of the Company solely by reason of actions
undertaken by such persons in their capacity as officers or directors of the
Company or (B) the Beneficial Owner of securities held of record by the trustee
of any employee benefit plan of the Company or any Subsidiary of the Company for
the benefit of any employee of the Company or any Subsidiary of the Company,
other than the officer or director, by reason of any influence that such officer
or director may have over the voting of the securities held in the plan.

            Notwithstanding anything in this definition of "Beneficial Owner"
and "beneficially own" to the contrary, the phrase "then outstanding," when used
with reference to a Person who is the Beneficial Owner 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.

            "Business Day" shall mean any day other than a Saturday, a Sunday,
or a day on which banking institutions in the State of Arizona or the state in
which the principal office of the Rights Agent is located are authorized or
obligated by law or executive order to close.

            "Close of Business" on any given date shall mean 5:00 P.M., Arizona
time, on such date; provided, however, that if such date is not a Business Day
it shall mean 5:00 P.M., Arizona time, on the next succeeding Business Day.

                                       3
<PAGE>   8
            "Commencement Date" shall mean the earlier of the date hereof or the
first public announcement of the adoption of this Agreement.

            "Common Stock" when used with reference to the Company shall mean
the shares of common stock, par value $0.001 per share, of the Company. "Common
Stock" when used with reference to any Person other than the Company shall mean
the capital stock (or other 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.

            "Company" shall have the meaning set forth in the recitals to this
Agreement.

            "current per share market price" shall have the meaning set forth in
Section 11(d)(i) hereof.

            "Current Value" shall have the meaning set forth in Section
11(a)(iii) hereof.

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

            "equivalent preferred stock" shall have the meaning set forth in
Section 11(b) hereof.

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

            "Exchange Act Regulations" shall mean the General Rules and
Regulations under the Exchange Act.

            "Expiration Date" shall have the meaning set forth in Section 7(a)
hereof.

            "Final Expiration Date" shall have the meaning set forth in Section
7(a) hereof.

            "Group" shall have the meaning ascribed to it in Rule 13d-5(b) of
the Exchange Act Regulations, as in effect on the date of this Agreement;
provided, however, a Group shall consist only of the members of the Group as of
the Commencement Date and such other Person as shall be deemed an Acquiring
Person.

            "NASDAQ" shall have the meaning set forth in Section 11(d) hereof.

            "Person" shall mean any individual, firm, corporation or other
entity, and shall include any successor (by merger or otherwise) of such entity.

            "Preferred Stock" shall mean shares of Series A Junior Participating
Preferred Stock, par value $0.01, of the Company having the rights and
preferences set forth in the Form of Certificate of Designation attached to this
Agreement as Exhibit A.

            "preferred stock equivalents" shall have the meaning set forth in
Section 11(a)(iii) hereof.

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

                                       4
<PAGE>   9
            "Record Date" shall have the meaning set forth in the recitals to
this Agreement.

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

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

            "Right" shall have the meaning set forth in the recitals to this
Agreement.

            "Rights Agent" shall have the meaning set forth in the recitals to
this Agreement.

            "Rights Certificate" shall have the meaning set forth in Section
3(a) hereof.

            "Section 11(a)(ii) Event" shall mean any event described in Section
11(a)(ii)(A), (B) or (C) hereof.

            "Section 11(a)(ii) Trigger Date" shall have the meaning set forth in
Section 11(a)(iii) hereof.

            "Section 13 Event" shall mean any event described in clause (x), (y)
or (z) of Section 13(a) hereof.

            "Section 24(a) Exchange Ratio" has the meaning set forth in Section
24(a) hereof.

            "Securities Act" shall mean the Securities Act of 1933, as amended.

            "Shares Acquisition Date" shall mean the first date of public
announcement (which, for purposes of this definition, shall include, without
limitation, a report filed pursuant to Section 13(d) of the Exchange Act) 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 shall become aware of the
existence of an Acquiring Person.

            "Spread" shall have the meaning set forth in Section 11(a)(iii)
hereof.

            "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, directly or indirectly, by such Person.

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

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

            "Triggering Event" shall mean any Section 11(a)(ii) Event or any
Section 13 Event.

            "Units" shall have the meaning set forth in Section 4(a) hereof.

      Section 2. Appointment of Rights Agent. The Company hereby appoints the
Rights Agent to act as agent for the Company and the holders of the Rights (who,
in accordance with Section 3 hereof, shall prior to the Distribution Date be the
holders of Common Stock) in

                                       5
<PAGE>   10
accordance with the terms and conditions hereof, and the Rights Agent hereby
accepts such appointment. The Company may from time to time appoint such
co-Rights Agents as it may deem necessary or desirable.

      Section 3.  Issue of Rights Certificates.

            (a) Until the earlier of (i) the Close of Business on the Shares
Acquisition Date and (ii) the Close of Business on the tenth Business Day (or
such later date as may be determined by action of the Company's Board of
Directors prior to such time as any Person becomes an Acquiring Person and of
which the Company will give the Rights Agent prompt written notice) after the
date that a tender or exchange offer by 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 entity holding shares of Common Stock for or
pursuant to the terms of any such plan) is first published or sent or given
within the meaning of Rule 14d-4(a) of the Exchange Act Regulations or any
successor rule or of 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 entity
holding shares of Common Stock for or pursuant to the terms of any such plan) to
commence, a tender or exchange offer, if upon consummation thereof such Person
would be the Beneficial Owner of 15% or more of the shares of Company Common
Stock then outstanding (the earlier of (i) and (ii) above being the
"Distribution Date"), (x) the Rights will be evidenced (subject to the
provisions of Section 3(b) hereof) by the certificates for shares of Common
Stock registered in the names of the holders thereof (which certificates shall
also be deemed to be Rights Certificates) and not by separate Rights
Certificates, and (y) the right to receive Rights Certificates will be
transferable only in connection with the transfer of shares of Common Stock. As
soon as practicable after the Distribution Date, the Company will notify the
Rights Agent thereof and 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 at the expense of the Company, send) by
first-class, insured, postage-prepaid mail, to each record holder of shares of
Common Stock as of the Close of Business on the Distribution Date, at the
address of such holder shown on the records of the Company, a Rights
Certificate, in substantially the form of Exhibit B hereto (a "Rights
Certificate"), evidencing one Right for each share of Common Stock so held. As
of the Distribution Date, the Rights will be evidenced solely by such Rights
Certificates.

            (b) On the Record Date, or as soon as practicable thereafter, the
Company will send a copy of a Summary of Rights to Purchase Shares of Preferred
Stock, in substantially the form of Exhibit C hereto (the "Summary of Rights"),
by first-class, postage-prepaid mail, to each record holder of shares of Common
Stock as of the Close of Business on the Record Date, at the address of such
holder shown on the records of the Company. With respect to certificates for
shares of Common Stock outstanding as of the Record Date, until the Distribution
Date, the Rights will be evidenced by such certificates registered in the names
of the holders thereof together with a copy of the Summary of Rights. Until the
Distribution Date (or, if earlier, the Expiration Date), the surrender for
transfer of any certificate for shares of Common Stock outstanding on the Record
Date, with or without a copy of the Summary of Rights attached thereto, shall
also constitute the transfer of the Rights associated with the shares of Common
Stock represented thereby.

                                       6
<PAGE>   11
            (c) Rights shall be issued in respect of all shares of Common Stock
issued or disposed of (including, without limitation, upon disposition of Common
Stock out of treasury stock or issuance or reissuance of Common Stock out of
authorized but unissued shares) after the Record Date but prior to the earlier
of the Distribution Date and the Expiration Date, or in certain circumstances
provided in Section 22 hereof, after the Distribution Date. Certificates issued
for Common Stock (including, without limitation, upon transfer of outstanding
Common Stock, disposition of Common Stock out of treasury stock or issuance or
reissuance of Common Stock out of authorized but unissued shares) after the
Record Date but prior to the earlier of the Distribution Date and the Expiration
Date, or in certain circumstances provided in Section 22 hereof, after the
Distribution Date shall have impressed on, printed on, written on or otherwise
affixed to them the following legend:

            This certificate also evidences and entitles the holder hereof to
            certain rights as set forth in a Rights Agreement between Microtest,
            Inc. (the "Company") and American Stock Transfer & Trust Company, as
            Rights Agent, dated as of April 4, 2001 and as amended from time to
            time (the "Rights Agreement"), the terms of which are hereby
            incorporated herein by reference and a copy of which is on file at
            the principal executive offices of the Company. Under certain
            circumstances, as set forth in the Rights Agreement, such Rights
            will be evidenced by separate certificates and will no longer be
            evidenced by this certificate. The Company will mail to the holder
            of this certificate a copy of the Rights Agreement without charge
            after receipt of a written request therefor. Under certain
            circumstances, as set forth in the Rights Agreement, Rights owned by
            or transferred to any Person who is or becomes an Acquiring Person
            (as defined in the Rights Agreement) and certain transferees thereof
            will become null and void and will no longer be transferable.

With respect to such certificates containing the foregoing legend, until the
Distribution Date the Rights associated with the Common Stock represented by
such certificates shall be evidenced by such certificates alone, and the
surrender for transfer of any such certificate, except as otherwise provided
herein, shall also constitute the transfer of the Rights associated with the
Common Stock represented thereby. In the event that the Company purchases or
otherwise acquires any Common Stock after the Record Date but prior to the
Distribution Date, any Rights associated with such Common Stock shall be deemed
canceled and retired so that the Company shall not be entitled to exercise any
Rights associated with the Common Stock which are no longer outstanding.

            Notwithstanding this paragraph (c), the omission of a legend shall
not affect the enforceability of any part of this Agreement or the rights of any
holder of the Rights.

      Section 4.  Form of Rights Certificates.

            (a) The Rights Certificates (and the forms of election to purchase
shares and of assignment to be printed on the reverse thereof) shall be
substantially the same as Exhibit B

                                       7
<PAGE>   12
hereto and may have such marks of identification or designation and such
legends, summaries or endorsements printed thereon as the Company may deem
appropriate and as are not inconsistent with the provisions of this Agreement,
or as may be required to comply with any applicable law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any stock
exchange or transaction reporting system on which the Rights may from time to
time be listed, or to conform to usage. Subject to the provisions of Section 11
and Section 22 hereof, the Rights Certificates shall entitle the holders thereof
to purchase such number of one one-thousandth of a share ("Units") of Preferred
Stock as shall be set forth therein at the price per Unit of Preferred Stock set
forth therein, but the number of such Units of Preferred Stock and the Purchase
Price shall be subject to adjustment as provided herein.

            (b) Any Rights Certificate issued pursuant hereto that represents
Rights beneficially owned by: (i) an Acquiring Person or any Associate or
Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or
of any such Associate or Affiliate) who becomes a transferee after the Acquiring
Person becomes such or (iii) a transferee of an Acquiring Person (or of any such
Associate or Affiliate) who becomes a transferee prior to or concurrently with
the Acquiring Person becoming such and receives such Rights pursuant to either
(A) a transfer (whether or not for consideration) from the Acquiring Person to
holders of equity interests in such Acquiring Person or to any Person with whom
such Acquiring Person has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (B) a transfer which the Board of Directors
of the Company has determined is part of a plan, arrangement or understanding
which has as a primary purpose or effect avoidance of Section 7(e) hereof shall
contain (to the extent feasible) the following legend:

            The Rights represented by this Rights Certificate are or were
            beneficially owned by a Person who was or became an Acquiring Person
            or an Affiliate or Associate of an Acquiring Person (as such terms
            are defined in the Rights Agreement, as amended, between Microtest,
            Inc. and American Stock Transfer & Trust Company, as Rights Agent,
            dated as of April 4, 2001 (the "Rights Agreement"). Accordingly,
            this Rights Certificate and the Rights represented hereby may become
            null and void in the circumstances specified in Section 7(e) of the
            Rights Agreement.

            Notwithstanding this paragraph 4(b), the omission of a legend shall
not affect the enforceability of any part of this Agreement.

      Section 5.  Countersignature and Registration.

            (a) The Rights Certificates shall be executed on behalf of the
Company by its Chairman of the Board, its President, any of its Vice Presidents,
or its Treasurer or Chief Financial Officer, either manually or by facsimile
signature, shall have affixed thereto the Company's seal or a facsimile thereof,
and shall be attested by the Secretary or an Assistant Secretary of the Company,
either manually or by facsimile signature. The Rights Certificates shall be
manually countersigned by the Rights Agent and shall not be valid for any
purpose unless countersigned. In case any officer of the Company who shall have
signed any of the Rights Certificates shall cease to be such officer of the
Company before countersignature by the Rights Agent and issuance and delivery by
the Company, such Rights Certificates, nevertheless,

                                       8
<PAGE>   13
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 Rights
Certificates had not ceased to be such officer of the Company; and any Rights
Certificate may be signed on behalf of the Company by any person who, at the
actual date of the execution of such Rights Certificate, shall be a proper
officer of the Company to sign such Rights Certificate, although at the date of
the execution of this Rights Agreement any such person was not such an officer.

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

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

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

            (b) Subject to the provisions of this Agreement, at any time after
the Distribution Date and prior to the Expiration Date, upon receipt by the
Company and the Rights Agent of evidence reasonably satisfactory to them of the
loss, theft, destruction or mutilation of a Rights Certificate, and, in case of
loss, theft or destruction, of indemnity or security reasonably satisfactory to
them, and, at the Company's request, reimbursement to the Company and the Rights
Agent of all reasonable expenses incidental thereto, and upon surrender to the
Rights Agent and cancellation of the Rights Certificate if mutilated, the
Company will make and deliver a new Rights Certificate of like tenor to the
Rights Agent for delivery to the registered holder in lieu of the Rights
Certificate so lost, stolen, destroyed or mutilated.

                                       9
<PAGE>   14
      Section 7.  Exercise of Rights; Purchase Price; Expiration Date of
Rights.

            (a) Except as provided in Sections 23(c) and 7(e), the registered
holder of any Rights 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 Rights Certificate, with the form of
election to purchase and certification on the reverse side thereof 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 Unit of
Preferred Stock (or other securities, cash or other assets, as the case may be)
as to which the Rights are exercised, at or prior to the earliest of (i) the
Close of Business on April 4, 2011 (the "Final Expiration Date"), (ii) the time
at which the Rights are redeemed as provided in Section 23 hereof (the
"Redemption Date"), or (iii) the time at which such Rights are exchanged as
provided in Section 24 hereof (the earlier of (i), (ii) and (iii) being the
"Expiration Date").

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

            (c) Upon receipt of a Rights Certificate representing exercisable
Rights, with the form of election to purchase duly executed, accompanied by
payment of the Purchase Price for the number of Units of Preferred Stock (or
other securities, cash or other assets, as the case may be) to be purchased and
an amount equal to any applicable transfer tax required to be paid by the holder
of such Rights Certificate in accordance with Section 9 hereof in cash, or by
certified check or cashier's check payable to the order of the Company, the
Rights Agent shall, subject to Section 20(k) hereof, thereupon promptly (i) (A)
requisition from any transfer agent of the Preferred Stock (or make available,
if the Rights Agent is the transfer agent for the Preferred Stock) a certificate
or certificates for the number of Units of Preferred Stock to be purchased and
the Company hereby irrevocably authorizes its transfer agent to comply with all
such requests or (B) if the Company shall have elected to deposit the total
number of Units of Preferred Stock issuable upon exercise of the Rights
hereunder with a depositary agent, requisition from the depositary agent of a
depositary receipt or depositary receipts representing such number of Units of
Preferred Stock as are to be purchased (in which case certificates for the Units
of Preferred Stock represented by such receipt or receipts shall be deposited by
the transfer agent with the depositary agent) and the Company hereby directs the
depositary agent to comply with such request, (ii) when appropriate, requisition
from the Company the amount of cash to be paid in lieu of issuance of fractional
shares in accordance with Section 14 hereof, (iii) after receipt of such
certificates or depositary receipts, cause the same to be delivered to or upon
the order of the registered holder of such Rights Certificate, registered in
such name or names as may be designated by such holder and (iv) when
appropriate, after receipt thereof, deliver such cash to or upon the order of
the registered holder of such Rights Certificate. The payment of the Purchase
Price (as such amount may be reduced (including to zero) pursuant to Section
11(a)(iii) hereof) may be made in cash or by certified bank check or bank draft
payable to the order of the Company. In the event that the Company is obligated
to issue other securities of the Company, pay cash and/or distribute other
property pursuant to Section 11(a) hereof, the Company will make all
arrangements necessary so that such other securities, cash and/or other property
are available for distribution by the Rights Agent, if and when appropriate.

                                       10
<PAGE>   15
            (d) In case the registered holder of any Rights Certificate shall
exercise less than all the Rights evidenced thereby, a new Rights Certificate
evidencing a number of Rights equivalent to the number of Rights remaining
unexercised shall be issued by the Rights Agent to the registered holder of such
Rights Certificate or to such registered holder's duly authorized assigns,
subject to the provisions of Section 14 hereof.

            (e) Notwithstanding anything in this Agreement to the contrary, from
and after the first occurrence of a Triggering Event, any Rights beneficially
owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring
Person, (ii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate) who becomes a transferee after the Acquiring Person becomes such,
(iii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate) who becomes a transferee prior to or concurrently with the Acquiring
Person becoming such and receives such Rights pursuant to either (A) a transfer
(whether or not for consideration) from the Acquiring Person to holders of
equity interests in such Acquiring Person or to any Person with whom the
Acquiring Person has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (B) a transfer which the Board of Directors
of the Company has determined is part of a plan, arrangement or understanding
which has as a primary purpose or effect the avoidance of this Section 7(e) or
(iv) any subsequent transferee shall become null and void without any further
action and no holder of such Rights shall have any rights whatsoever with
respect to such Rights, whether under any provision of this Agreement or
otherwise. The Company shall use all reasonable efforts to ensure that the
provisions of this Section 7(e) and Section 4(b) hereof are complied with, but
shall have no liability to any holder of Rights Certificates or to any other
Person as a result of its failure to make any determinations with respect to an
Acquiring Person or any of such Acquiring Person's Affiliates, Associates or
transferees hereunder.

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

      Section 8. Cancellation and Destruction of Rights Certificates. All Rights
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 Rights
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 Rights Certificate purchased or acquired by the
Company otherwise than upon the exercise thereof. The Rights Agent shall deliver
all cancelled Rights Certificates to the Company, or shall, at the written
request of the Company, destroy such cancelled Rights Certificates, and in such
case shall deliver a certificate of destruction thereof to the Company.

                                       11
<PAGE>   16
      Section 9.  Reservation and Availability of Preferred Stock.

            (a) The Company covenants and agrees that it will use its best
efforts to cause to be reserved and kept available out of and to the extent of
its authorized and unissued shares of Preferred Stock or any shares of Preferred
Stock held in its treasury, not reserved for another purpose, that will be
sufficient to permit the exercise in full of all outstanding Rights. Upon the
occurrence of any events resulting in an increase in the aggregate number of
shares of Preferred Stock (or other equity securities of the Company) issuable
upon exercise of all outstanding Rights above the number then reserved, the
Company shall make appropriate increases in the number of shares so reserved.

            (b) If the Units of Preferred Stock to be issued and delivered upon
the exercise of the Rights are at any time listed on a national securities
exchange or included for quotation on any transaction reporting system, the
Company shall during the period from the Distribution Date to the Expiration
Date use its best efforts to cause all shares reserved for such issuance to be
listed on such exchange or included for quotation on any such transaction
reporting system upon official notice of issuance upon such exercise.

            (c) The Company shall use its best efforts to (i) file, as soon as
practicable following the earliest date after the first occurrence of a Section
11(a)(ii) Event in which the consideration to be delivered by the Company upon
exercise of the Rights has been determined in accordance with Section 11(a)(iii)
hereof, or as soon as is required by law following the Distribution Date, as the
case may be, a registration statement under the Securities Act, with respect to
the securities purchasable upon exercise of the Rights on an appropriate form,
(ii) cause such registration statement to become effective as soon as
practicable after such filing and (iii) cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of the
Securities Act) until the earlier of (A) the date as of which the Rights are no
longer exercisable for such securities and (B) the Expiration Date. The Company
will also take such action as may be appropriate under, or to ensure compliance
with, the securities or "blue sky" laws of the various states in connection with
the exercisability of the Rights. Notwithstanding any provision of this
Agreement to the contrary, the Rights shall not be exercisable in any
jurisdiction, unless the requisite qualification in such jurisdiction shall have
been obtained, or an exemption therefrom shall be available and until a
registration statement has been declared effective.

            (d) The Company covenants and agrees that it will take all such
action as may be necessary to ensure that all Units of Preferred Stock (and,
following the occurrence of a Triggering Event, any other securities that may be
delivered upon exercise of Rights) shall, at the time of delivery of the
certificates for such Units of Preferred Stock or other securities (subject to
payment of the Purchase Price), be duly and validly authorized and issued and
fully paid and non-assessable.

            (e) The Company further covenants and agrees that it will pay when
due and payable any and all federal and state transfer taxes and charges which
may be payable in respect of the issuance or delivery of the Rights Certificates
or of any Units of Preferred Stock upon the exercise of Rights. The Company
shall not, however, be required to pay any transfer tax which may be payable in
respect of any transfer or delivery of Rights Certificates to a person other

                                       12
<PAGE>   17
than, or the issuance or delivery of certificates or depositary receipts for
Units of Preferred Stock in a name other than that of, the registered holder of
the Rights Certificate evidencing Rights surrendered for exercise or to issue or
to deliver any certificates or depositary receipts for Units of Preferred Stock
upon the exercise of any Rights until any such tax shall have been paid (any
such tax being payable by the holder of such Rights Certificate at the time of
surrender) or until it has been established to the Company's reasonable
satisfaction that no such tax is due.

      Section 10. Preferred Stock Record Date. Each Person in whose name any
certificate for Units of Preferred Stock (or, following the occurrence of a
Triggering Event, other securities) is issued upon the exercise of Rights shall
for all purposes be deemed to have become the holder of record of the Units of
Preferred Stock (or, following the occurrence of a Triggering Event, other
securities) represented thereby on, and such certificate shall be dated, the
date upon which the Rights Certificate evidencing such Rights was duly
surrendered and payment of the Purchase Price (and any applicable transfer
taxes) was made; provided, however, that if the date of such surrender and
payment is a date upon which the Preferred Stock (or, following the occurrence
of a Triggering Event, other securities) transfer books of the Company are
closed, such person shall be deemed to have become the record holder of such
shares on, and such certificate shall be dated, the next succeeding Business Day
on which the Preferred Stock transfer books of the Company are open; provided
further, however, that if delivery of Units of Preferred Stock is delayed
pursuant to Section 9(c), such Persons shall be deemed to have become the record
holders of such Units of Preferred Stock only when such Units of Preferred Stock
first become deliverable. Prior to the exercise of the Rights evidenced thereby,
the holder of a Rights Certificate shall not be entitled to any rights of a
stockholder of the Company with respect to securities 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. Prior to the exercise of the Rights evidenced thereby, the
holder of a Rights Certificate shall not be entitled to any rights of a holder
of a Unit of Preferred Stock for which the Rights shall be exercisable,
including, without limitation, the right to vote, to receive dividends or other
distributions or to exercise any preemptive rights, and shall not be entitled to
receive any notice of any proceedings of the Company, except as provided herein.

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

            (a)(i) In the event the Company shall at any time after the date of
this Agreement (A) declare a dividend on the Preferred Stock payable in shares
of Preferred Stock, (B) subdivide the outstanding shares of Preferred Stock, (C)
combine the outstanding Preferred Stock into a smaller number of shares
Preferred Stock or (D) issue any shares of its capital stock in a
reclassification of the Preferred Stock (including any such reclassification in
connection with a consolidation or merger in which the Company is the continuing
or surviving corporation), except as otherwise provided in this Section 11(a),
the Purchase Price in effect at the time of the record date for such dividend or
of the effective date of such subdivision, combination or reclassification, and
the number and kind of shares of capital stock issuable on such date, shall be
proportionately adjusted so that the holder of any Rights exercised after such
time shall be

                                       13
<PAGE>   18
entitled to receive the aggregate number and kind of shares of capital stock
which, if such Rights had been exercised immediately prior to such date and at a
time when the Preferred Stock transfer books of the Company were open, such
holder would have owned upon such exercise and been entitled to receive by
virtue of such dividend, subdivision, combination or reclassification; provided,
however, that in no event shall the consideration to be paid upon the exercise
of one Right be less than the aggregate par value of the shares of capital stock
of the Company issuable upon exercise of one Right. If an event occurs which
would require an adjustment under both this Section 11(a)(i) and Section
11(a)(ii), the adjustment provided for in this Section 11(a)(i) shall be in
addition to, and shall be made prior to, any adjustment required pursuant to
Section 11(a)(ii).

                  (ii) Subject to Section 24 of this Agreement, in the event
that (A) any Acquiring Person or any Associate or Affiliate of any Acquiring
Person, at any time after the date of this Agreement, directly or indirectly,
shall (1) merge into the Company or otherwise combine with the Company and the
Company shall be the continuing or surviving corporation of such merger or
combination and shares of Company Common Stock shall remain outstanding and
unchanged, (2) in one transaction or a series of transactions, transfer any
assets to the Company or any of its Subsidiaries in exchange (in whole or in
part) for shares of Company Common Stock, for other equity securities of the
Company or any such Subsidiary, or for securities exercisable for or convertible
into shares of equity securities of the Company or any of its Subsidiaries
(whether shares of Company Common Stock or otherwise) or otherwise obtain from
the Company or any of its Subsidiaries, with or without consideration, any
additional shares of such equity securities or securities exercisable for or
convertible into such equity securities other than pursuant to a pro rata
distribution to all holders of shares of Company Common Stock, (3) sell,
purchase, lease, exchange, mortgage, pledge, transfer or otherwise acquire or
dispose of, in one transaction or a series of transactions, to, from or with the
Company or any of its Subsidiaries or any employee benefit plan maintained by
the Company or any of its Subsidiaries or any trustee or fiduciary with respect
to such plan acting in such capacity, assets (including securities) on terms and
conditions less favorable to the Company or such Subsidiary or plan than those
that could have been obtained in arm's-length negotiations with an unaffiliated
third party, other than pursuant to a transaction set forth in Section 13(a)
hereof, (4) sell, purchase, lease, exchange, mortgage, pledge, transfer or
otherwise acquire or dispose of, in one transaction or a series of transactions,
to, from or with the Company or any of its Subsidiaries or any employee benefit
plan maintained by the Company or any of its Subsidiaries or any trustee or
fiduciary with respect to such plan acting in such capacity (other than
transactions, if any, consistent with those engaged in, as of the date hereof,
by the Company and such Acquiring Person or such Associate or Affiliate), assets
(including securities or intangible assets) having an aggregate fair market
value of more than $250,000, other than pursuant to a transaction set forth in
Section 13(a) hereof, (5) receive, or any designee, agent or representative of
such Acquiring Person or any Affiliate or Associate of such Acquiring Person
shall receive, any compensation from the Company or any of its Subsidiaries
other than compensation for full-time employment as a regular employee at rates
in accordance with the Company's (or its Subsidiaries') past practices, or (6)
receive the benefit, directly or indirectly (except proportionately as a holder
of shares of Company Common Stock or as required by law or governmental
regulation), of any loans, advances, guarantees, pledges or other financial
assistance or any tax credits or other tax advantages provided by the Company or
any of its Subsidiaries or any employee benefit plan maintained by the Company
or any of its Subsidiaries or any trustee or fiduciary with respect to

                                       14
<PAGE>   19
such plan acting in such capacity; or (B) any Person shall become an Acquiring
Person, unless the event causing the Person to become an Acquiring Person is a
transaction set forth in Section 13(a); or (C) during such time as there is an
Acquiring Person, there shall be any reclassification of securities (including
any reverse stock split), or recapitalization of the Company, or any merger or
consolidation of the Company with any of its Subsidiaries or any other
transaction or series of transactions involving the Company or any of its
Subsidiaries, other than a transaction or transactions to which the provisions
of Section 13(a) apply (whether or not with or into or otherwise involving an
Acquiring Person), which has the effect, directly or indirectly, of increasing
by more than 1% the proportionate share of the outstanding shares of any class
of equity securities of the Company or any of its Subsidiaries that is directly
or indirectly beneficially owned by any Acquiring Person or any Person or any
Associate or Affiliate of any Acquiring Person;

then promptly following the occurrence of an event described in Section
11(a)(ii)(A), (B) or (C) (a "Section 11(a)(ii) Event"), proper provision shall
be made so that (I) the Purchase Price shall be adjusted to be the Purchase
Price in effect immediately prior to the Section 11(a)(ii) Event multiplied by
the number of Units of Preferred Stock for which a Right was exercisable
immediately prior to such Section 11(a)(ii) Event, whether or not such Right was
then exercisable, and (II) each holder of a Right, (except as set forth in
paragraph 7(e) above), shall thereafter have the right to receive, upon exercise
thereof at a price equal to the Purchase Price (as so adjusted), in accordance
with the terms this Agreement and in lieu of Units of Preferred Stock, such
number of shares of Common Stock as shall equal the result obtained by dividing
the Purchase Price (as so adjusted) by 50% of the current per share market price
(determined pursuant to Section 11(d) hereof) for shares of Common Stock on the
date of such Triggering Event, subject to further adjustment as provided herein
(such number of shares of Common Stock being hereinafter referred to as the
"Adjustment Shares").

                  (iii) In the event that the number of shares of Common Stock
which are authorized by the Company's Certificate of Incorporation but not
outstanding or reserved for issuance for purposes other than upon exercise of
the Rights are not sufficient to permit the exercise in full of the Rights, or
if any necessary regulatory or other approval for such issuance has not been
obtained by the Company, the Company shall, in lieu of issuing shares of Common
Stock in accordance with Section 11(a)(ii) hereof: (A) determine the excess (the
"Spread) of (1) the value of the shares of Common Stock issuable upon the
exercise of a Right (the "Current Value") over (2) the Purchase Price (as
adjusted in accordance with the foregoing subparagraph (ii)) and (B) with
respect to each Right (other than the Rights which have become void pursuant to
paragraph 7(e) above), make adequate provision to substitute for such shares of
Common Stock, upon exercise of the Rights, (1) cash, (2) a reduction in the
Purchase Price, (3) other equity securities of the Company (including, without
limitation, shares or units of shares of any series of preferred stock
(including the Units of Preferred Stock), which the Board of Directors of the
Company has deemed to have the same value as the shares of Common Stock (such
shares or units of preferred stock are herein called "preferred stock
equivalents")), except to the extent that the Company has not obtained any
necessary regulatory approval for such issuance, (4) debt securities of the
Company, except to the extent that the Company has not obtained any necessary
regulatory approval for such issuance, (5) other assets or (6) any combination
of the foregoing, having an aggregate value equal to the Current Value, where
such aggregate value has been determined by the Board of Directors of the
Company based upon the advice of a nationally

                                       15
<PAGE>   20
recognized investment banking firm selected by the Board of Directors of the
Company; provided, however, if the Company shall not have made adequate
provision to deliver value pursuant to clause (B) above within thirty (30) days
following the later of (x) occurrence of a Section 11(a)(ii) Event, and (y) the
date on which the Company's right of redemption pursuant to Section 23(a)
expires (the later of (x) and (y) being referred to herein as the "Section
11(a)(ii) Trigger Date"), then the Company shall be obligated to deliver, upon
the surrender for exercise of a Right and without requiring payment of the
Purchase Price, shares of Common Stock (to the extent available), except to the
extent that the Company has not obtained any necessary regulatory or other
approval for such issuance, and then, if necessary, shares or fractions of
shares of preferred stock (to the extent available and if necessary regulatory
or other approvals have been obtained), and then, if necessary cash, which
shares and/or cash have an aggregate value equal to the Spread. If, upon the
occurrence of the Section 11(a)(ii) Trigger Date the Board of Directors shall
determine in good faith that it is likely that sufficient additional shares of
Common Stock could be authorized for issuance upon exercise in full of the
Rights, then, if the Board of Directors so elects, the thirty (30) day period
set forth above may be extended to the extent necessary, but not more than
ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that the
Company may seek stockholder approval for the authorization of such additional
shares (such thirty (30) day period, as it may be extended, is herein called the
"Substitution Period"). To the extent that the Company determines that some
action needs to be taken pursuant to the second and/or third sentence of this
Section 11(a)(iii), the Company (x) shall provide, subject to Section 11(a)(ii)
hereof and the last sentence of this Section 11(a)(iii) hereof, that such action
shall apply uniformly to all outstanding Rights and (y) may suspend the
exercisability of the Rights until the expiration of the Substitution Period in
order to seek any authorization of additional shares and/or to decide the
appropriate form of distribution to be made pursuant to such second sentence and
to determine the value thereof. In the event of any such suspension, the Company
shall issue a public announcement stating that the exercisability of the Rights
has been temporarily suspended, as well as a public announcement at such time as
the suspension is no longer in effect. For purposes of this Section 11(a)(iii),
the value of the shares of Common Stock shall be the current per share market
price (as determined pursuant to Section 11(d)) on the Section 11(a)(ii) Trigger
Date and the per share or fractional value of any preferred stock equivalent
shall be deemed to equal the current per share market price of the Common Stock.
The Board of Directors of the Company may, but shall not be required to,
establish procedures to allocate the right to receive shares of Common Stock
upon the exercise of the Rights among holders of Rights pursuant to this Section
11(a)(iii).

            (b) In the event that the Company shall fix a record date for the
issuance of rights, options or warrants to all holders of Units of Preferred
Stock entitling them (for a period expiring within 45 calendar days after such
record date) to subscribe for or purchase Units of Preferred Stock (or shares
having the same rights, privileges and preferences as the Preferred Stock
("equivalent preferred stock")) or securities convertible into Units of
Preferred Stock or equivalent preferred stock at a price per Unit of Preferred
Stock or equivalent preferred share (or having a conversion price per share, if
a security convertible into Units of Preferred Stock or equivalent preferred
stock) less than the then current per share market price of a Unit of Preferred
Stock (as determined pursuant to Section 11(d)) on such record date, the
Purchase Price to be in effect after such record date shall be determined by
multiplying the Purchase Price in effect immediately prior to such record date
by a fraction, the numerator of which shall be the number of Units of Preferred
Stock outstanding on such record date plus the number of Units of

                                       16
<PAGE>   21
Preferred Stock which the aggregate offering price of the total number of Units
of Preferred Stock and/or equivalent preferred stock so to be offered (and/or
the aggregate initial conversion price of the convertible securities so to be
offered) would purchase at such current market price and the denominator of
which shall be the number of Units of Preferred Stock outstanding on such record
date plus the number of additional Units of Preferred Stock and/or equivalent
preferred stock to be offered for subscription or purchase (or into which the
convertible securities so to be offered are initially convertible). In case such
subscription price may be paid 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. Units of
Preferred Stock owned by or held for the account of the Company shall not be
deemed outstanding for the purpose of any such computation. Such adjustment
shall be made successively whenever such a record date is fixed; and in the
event that such rights, 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 a distribution
to all holders of Units of Preferred Stock (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, cash (other
than a regular quarterly cash dividend) assets (other than a dividend payable in
Units of Preferred Stock but including any dividend payable in equity securities
other than Preferred Stock) or subscription rights or warrants (excluding those
referred to in Section 11(d) 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 (as determined pursuant to
Section 11(d)) of the Preferred Stock on such record date, less the fair market
value (as determined in good faith by the Board of Directors of the Company,
whose determination shall be described in a statement filed with the Rights
Agent and shall be binding on the Rights Agent and the holder of rights) of the
cash, assets or evidences of indebtedness to be distributed or of such
subscription rights or warrants distributable in respect of a share of Preferred
Stock and the denominator of which shall be such current per share market price
(as determined pursuant to Section 11(d)) of a share of Preferred Stock. Such
adjustments shall be made successively whenever such a record date is fixed; and
in the event that such distribution is not so made, the Purchase Price shall
again be adjusted to be the Purchase Price which would then be in effect if such
record date had not been fixed.

            (d)(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 (as such term is hereinafter defined) immediately prior to such
date; provided, however, that in the event that the "current per share market
price" of the 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 the ex-dividend
date for such dividend or distribution, or the record date for such subdivision,
combination or

                                       17
<PAGE>   22
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, or, in case no such sale takes place on such day,
the average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with respect
to securities listed or admitted to trading on the Nasdaq National Market System
("NASDAQ") or, if the Security is not listed or admitted to trading on the
NASDAQ, 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 or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by the NASDAQ 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 market maker is making
a market in the Security, the "current per share market price" of such Security
on such date as determined in good faith by the Board of Directors of the
Company as provided for above 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 Stock shall be determined in accordance
with the method set forth in Section 11(d)(i). If the "current per share market
price" of the Preferred Stock cannot be determined in the manner provided above
or if the Preferred Stock is not publicly held or listed or traded in a manner
described in clause (i) of this Section 11(d), the "current per share market
price" of the Preferred Stock shall be conclusively deemed to be an amount equal
to $1,000 (as such amount may be appropriately adjusted for such events as stock
splits, stock dividends and recapitalizations with respect to shares of Company
Common Stock occurring after the date of this Agreement) multiplied by the
current market price per share of Company Common Stock. If shares of neither the
Company Common Stock nor Preferred Stock is publicly held or so listed or
traded, "current per share market price" of the Preferred Stock shall mean the
fair value per share as determined in good faith by the Board of Directors of
the Company whose determination shall be described in a statement filed with the
Rights Agent and shall be binding on the Rights Agent and the holders of the
Rights.

            (e) No adjustment in the Purchase Price shall be required unless
such adjustment would require an increase or decrease of at least 1% in the
Purchase Price; provided, however, that any adjustments which by reason of this
Section 11(e) are not required to be made shall be carried forward and taken
into account in any subsequent adjustment. All calculations under this Section
11 shall be made to the nearest cent or to the nearest one one-thousandth of a
share of Preferred Stock or one one-hundredth 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 Expiration Date.

                                       18
<PAGE>   23
            (f) If as a result of an adjustment made pursuant to Section
11(a)(ii) hereof, the holder of any Rights thereafter exercised shall become
entitled to receive any shares of capital stock of the Company or another entity
other than Units of Preferred Stock, thereafter the number of such other shares
so receivable upon exercise of any Rights and the Purchase Price thereof shall
be subject to adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to the Preferred Stock
contained in Section 11(a), (b), (c), (d), (e), (g), (h), (i), (j), (k), (l) and
(m), and the provisions of Sections 7, 9, 10, 13 and 14 with respect to the
Preferred Stock shall apply on like terms to any such other shares.

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

            (h) Unless the Company shall have exercised its election as provided
in Section 11(i), upon each adjustment of the Purchase Price as a result of the
calculations made in Sections 11(b) and (c), each Right outstanding immediately
prior to the making of such adjustment shall thereafter evidence the right to
purchase, at the adjusted Purchase Price, that number of Units of Preferred
Stock (calculated to the nearest one-millionth of a share of Preferred Stock)
obtained by dividing (i) the product obtained by multiplying (x) the number of
Units of Preferred Stock covered by a Right immediately prior to this adjustment
by (y) the Purchase Price in effect immediately prior to such adjustment of the
Purchase Price by, (ii) 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 Units of Preferred Stock purchasable upon the
exercise of a Right. Each of the Rights outstanding after such adjustment of the
number of Rights shall be exercisable for the number of Units of Preferred Stock
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 one-thousandth)
obtained by dividing the Purchase Price in effect immediately prior to
adjustment of the Purchase Price by the Purchase Price in effect immediately
after adjustment of the Purchase Price. The Company shall make a public
announcement of its election to adjust the number of Rights, indicating the
record date for the adjustment, and, if known at the time, the amount of the
adjustment to be made. This record date may be the date on which the Purchase
Price is adjusted or any day thereafter, but, if the Rights Certificates have
been issued, shall be at least ten days later than the date of the public
announcement. If Rights 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 Rights
Certificates on such record date Rights 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
Rights Certificates held by such holders prior to the date of adjustment, and
upon surrender thereof, if required by the Company, new Rights Certificates
evidencing all the Rights to which such holders shall be entitled after such
adjustment. Rights Certificates to be so distributed shall be

                                       19
<PAGE>   24
issued, executed and countersigned in the manner provided for herein and shall
be registered in the names of the holders of record of Rights 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 Units of Preferred Stock issuable upon the exercise of the
Rights, the Rights Certificates theretofore and thereafter issued may continue
to express the Purchase Price per Unit or other measure and the number of Units
of Preferred Stock or other securities which were expressed in the initial
Rights Certificates issued hereunder.

            (k) Before taking any action that would cause an adjustment reducing
the Purchase Price below the then par value of the number of Units of Preferred
Stock of any other shares of capital stock issuable upon exercise of the Rights,
the Company shall take any corporate action which may, in the opinion of its
counsel, be necessary in order that the Company may validly and legally issue
fully paid and nonassessable number of Units of Preferred Stock or such other
shares of capital stock at such adjusted Purchase Price.

            (l) In any case in which this Section 11 shall require that an
adjustment in the Purchase Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event the issuing to the holder of any Rights exercised after such record date
of that number of Units of Preferred Stock and other capital stock or securities
of the Company, if any, issuable upon such exercise over and above the Units of
Preferred Stock and other capital stock or securities of the Company, if any,
issuable upon such exercise on the basis of the Purchase Price in effect prior
to such adjustment; provided, however, that the Company shall deliver to such
holder a due bill or other appropriate instrument evidencing such holder's right
to receive such additional shares (fractional or otherwise) 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 (i) consolidation or subdivision of the Preferred Stock, (ii)
issuance wholly for cash of any Unit of Preferred Stock at less than the current
market price, (iii) issuance wholly for cash of Preferred Stock or securities
which by their terms are convertible into or exchangeable for Preferred Stock,
(iv) dividends on Preferred Stock payable in Preferred Stock or (v) issuance of
rights, options or warrants referred to in this Section 11, hereafter made by
the Company to holders of Units of its Preferred Stock shall not be taxable to
such stockholders.

            (n) The Company shall not, at any time after the Distribution Date,
(i) consolidate with any other Person (other than a Subsidiary of the Company in
a transaction which complies with Section 11(o)), (ii) merge with or into any
other Person (other than a Subsidiary of the Company in a transaction which
complies with Section 11(o)), or (iii) sell or transfer (or permit any
Subsidiary to sell or transfer), in one transaction, or a series of
transactions, assets or earning power aggregating more than 50% of the assets or
earning power of the Company and its Subsidiaries (taken as a whole) to any
other Person or Persons (other than the Company and/or any of its Subsidiaries
in one or more transactions each of which

                                       20
<PAGE>   25
complies with Section 11(o)), if (x) at the time of or immediately after such
consolidation, merger or sale 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 or (y) prior to, simultaneously with or immediately after
such consolidation, merger or sale, the Person which constitutes, or would
constitute the "Principal Party" for purposes of Section 13(a) shall have
distributed or otherwise transferred to its stockholders or other persons
holding an equity interest in such Person Rights previously owned by such Person
or any of its Affiliates and Associates; provided, however, this Section 11(n)
shall not affect the ability of any Subsidiary of the Company to consolidate
with, merge with or into, or sell or transfer assets or earning power to, any
other Subsidiary of the Company.

            (o) After the Distribution Date, the Company shall not, except as
permitted by Section 23 or Section 26, take (or permit any Subsidiary to take)
any action if at the time such action is taken it is reasonably foreseeable that
such action will diminish substantially or otherwise eliminate the benefits
intended to be afforded by the Rights.

            (p) In the event that, at any time after the date of this Agreement
and prior to the Distribution Date, the Company shall (i) declare or pay any
dividend on outstanding shares of Common Stock payable in shares of Common Stock
or (ii) effect a subdivision, combination or consolidation of the Common Stock
(by reclassification or otherwise than by payment of dividends in shares of
Common Stock) into a greater or lesser number of shares of Common Stock, then in
any such case the number of Rights associated with each share of Common Stock
then outstanding, or issuable or deliverable thereafter, shall be
proportionately adjusted so that the number of Rights thereafter associated with
each such share of Common Stock following any such event shall equal the result
obtained by multiplying the number of Rights associated with each share of
Common Stock immediately prior to such event by a fraction, the numerator of
which is the total number of shares of Common Stock outstanding immediately
before such event and the denominator of which is the total number of shares of
Common Stock outstanding immediately after such event. The adjustments provided
for in this Section 11(p) 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 as provided in Sections 11 and 13 hereof, the
Company shall promptly (a) prepare a certificate setting forth such adjustment,
and a brief statement of the facts accounting for such adjustment, (b) file with
the Rights Agent and with each transfer agent for the shares of Common Stock or
Units of Preferred Stock a copy of such certificate and (c) mail a brief summary
thereof to each holder of a Rights Certificate in accordance with Section 25
hereof. Notwithstanding the foregoing sentence, the failure by 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. The Rights Agent
shall be fully protected in relying on any such certificate and on any
adjustment contained therein and shall not be deemed to have knowledge of such
adjustment unless and until it shall have received such certificate.

                                       21
<PAGE>   26
      Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning
Power.

            (a) Except as provided in Section 13(b) hereof, in the event that,
following a Shares Acquisition Date, directly or indirectly, (x) the Company
shall consolidate with, or merge with and into, any other Person (other than a
Subsidiary of the Company in a transaction which complies with Section 11(o)),
and the Company shall not be the continuing or surviving corporation of such
consolidation or merger, (y) any Person (other than a Subsidiary of the Company
in a transaction which complies with Section 11(o)) shall consolidate with the
Company, or merge with and into the Company and the Company shall be the
continuing or surviving corporation of such consolidation or merger and, in
connection with such consolidation or merger, all or part of the shares of
Common Stock shall be changed into or exchanged for stock or other securities of
any other Person or cash or any other property, or (z) the Company shall sell or
otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise
transfer) to any Person or Persons (other than a Subsidiary of the Company in a
transaction which complies with Section 11(o)), in one or more transactions,
directly or indirectly, assets or earning power aggregating 50% or more of the
assets or earning power of the Company and its Subsidiaries (taken as a whole),
(any such event being a "Section 13 Event"), then, and in each such case, proper
provision shall be made so that: (i) each holder of a Right, except as provided
in Section 7(e), shall thereafter have the right to receive, upon the exercise
thereof at the then current Purchase Price, and in accordance with the terms
hereof, such number of validly authorized and issued, fully paid, non-assessable
and freely tradeable shares of Common Stock of the Principal Party (as such term
is hereinafter defined), which shares shall not be subject to any liens,
encumbrances, rights of first refusal, transfer restrictions or other adverse
claims, as shall be equal to the result obtained by dividing the then current
Purchase Price (which, following the direct occurrence of a Section 13 Event,
shall be the "Purchase Price" for all purposes of this Agreement) by 50% of the
current per share market price (determined pursuant to Section 11(d)) of the
shares of Common Stock of such Principal Party on the date of consummation of
such Section 13 Event; (ii) such Principal Party shall thereafter be liable for,
and shall assume, by virtue of such Section 13 Event, all the obligations and
duties of the Company pursuant to this Agreement; (iii) the term "Company"
shall, for all purposes of this Agreement, thereafter be deemed to refer to such
Principal Party, it being specifically intended that the provisions of Section
11 shall apply only to such Principal Party following the first occurrence of a
Section 13 Event; (iv) such Principal Party shall take such steps (including,
but not limited to, the reservation of a sufficient number of shares of its
Common Stock) in connection with the consummation of any such transaction as may
be necessary to ensure that the provisions of this Agreement shall thereafter be
applicable to its shares of Common Stock thereafter deliverable upon the
exercise of the Rights; (v) the provisions of Section 11(a)(ii) shall be of no
further effect following the first occurrence of any Section 13 Event; (vi) the
Purchase Price (as theretofore adjusted) and number of shares of Common Stock of
such Principal Party so receivable upon exercise of a Right shall be subject to
further adjustment as appropriate in accordance with paragraph 11(f) hereof to
reflect any changes occurring in respect of the Common Stock of such Principal
Party after the occurrence of such Section 13 Event; and (vii) upon any
subsequent occurrence of any consolidation, merger, sale or transfer of assets
or other extraordinary transaction in respect of such Principal Party, each
holder of a Right shall thereupon be entitled to receive, upon exercise of a
Right and payment of the Purchase Price as provided in this Section 13(a), such
cash, shares, rights, warrants and other property which such holder would have
been entitled to receive had such holder, at the time of such transaction,

                                       22
<PAGE>   27
owned the Common Stock of the Principal Party receivable upon the exercise of a
Right pursuant to this Section 13(a) and such Principal Party shall take all
steps as may be necessary to permit the subsequent exercise of the Rights in
accordance with the terms hereof for such cash, shares, rights and other
property.

            (b)   "Principal Party" shall mean:

                  (i) in the case of any transaction described in clause (x) or
(y) of the first sentence of Section 13(a), (A) the Person that is the issuer of
any securities into which shares of Company Common Stock are converted in such
merger or consolidation, or, if there is more than one such issuer, the issuer
of shares of Common Stock that has the highest aggregate current market price
(determined pursuant to Section 11(d)) and (B) if no securities are so issued,
the Person that is the other party to such merger or consolidation, or, if there
is more than one such Person, the Person the Common Stock of which has the
highest aggregate current market price (determined pursuant to Section 11(d));
and

                  (ii) in the case of any transaction described in clause (z) of
the first sentence of Section 13(a), the Person that is the party receiving the
largest 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 transferred pursuant to such transaction or transactions or if the Person
receiving the largest portion of the assets or earning power cannot be
determined, whichever Person the Common Stock of which has the highest aggregate
current market price (determined pursuant to Section 11(d)); provided, however,
that in any such case, (1) if the Common Stock of such Person is not at such
time and has not been continuously over the preceding twelve-month period
registered under Section 12 of the Exchange Act ("Registered Common Stock"), or
such Person is not a corporation, and such Person is a direct or indirect
Subsidiary of another Person that has Registered Common Stock outstanding,
"Principal Party" shall refer to such other Person; (2) if the Common Stock of
such Person is not Registered Common Stock or such Person is not a corporation,
and such Person is a direct or indirect Subsidiary of another Person but is not
a direct or indirect Subsidiary of another Person which has Registered Common
Stock outstanding, "Principal Party" shall refer to the ultimate parent entity
of such first-mentioned Person; (3) if the Common Stock of such Person is not
Registered Common Stock or such Person is not a corporation, and such Person is
directly or indirectly controlled by more than one Person, and one or more of
such other Persons has Registered Common Stock outstanding, "Principal Party"
shall refer to whichever of such other Persons is the issuer of the Registered
Common Stock having the highest aggregate current per share market price
(determined pursuant to Section 11(d)); and (4) if the Common Stock of such
Person is not Registered Common Stock or such Person is not a corporation, and
such Person is directly or indirectly controlled by more than one Person, and
none of such other Persons has Registered Common Stock outstanding, "Principal
Party" shall refer to whichever ultimate parent entity is the corporation having
the greatest stockholders' equity or, if no such ultimate parent entity is a
corporation, shall refer to whichever ultimate parent entity is the entity
having the greatest net assets.

            (c) The Company shall not consummate any such consolidation, merger,
sale or transfer unless the Principal Party shall have a sufficient number of
authorized shares of Common Stock which have not been issued or reserved for
issuance to permit the exercise in full

                                       23
<PAGE>   28
of the Rights in accordance with this Section 13, and unless prior thereto the
Company and such Principal Party shall have executed and delivered to the Rights
Agent a supplemental agreement providing for the terms set forth in paragraphs
(a) and (b) of this Section 13 and further providing that the Principal Party
will:

                  (i) (A) file on an appropriate form, as soon as practicable
following the execution of such agreement, a registration statement under the
Securities Act with respect to the shares of Common Stock that may be acquired
upon exercise of the Rights, (B) cause such registration statement to remain
effective (and to include a prospectus complying with the requirements of the
Securities Act) until the Expiration Date, and (C) as soon as practicable
following the execution of such agreement take such action as may be required to
ensure that any acquisition of such shares of Common Stock upon the exercise of
the Rights complies with any applicable state securities or "blue sky" laws;

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

                  (iii) use its best efforts, if the Common Stock of the
Principal Party shall be listed or admitted to trading on the New York Stock
Exchange 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 New York Stock Exchange or such securities
exchange, or, if the Common Stock of the Principal Party shall not be listed or
admitted to trading on the New York Stock Exchange or a national securities
exchange, to cause the Rights and the securities receivable upon exercise of the
Rights to be authorized for quotation on NASDAQ or on such other system then in
use; and

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

            (d) In case the Principal Party which is to be a party to a
transaction referred to in this Section 13 has a provision in any of its
authorized securities or in its Certificate of Incorporation or Bylaws or other
instrument governing its corporate affairs, which provision would have the
effect of (i) causing such Principal Party to issue, in connection with, or as a
consequence of, the consummation of a transaction referred to in this Section
13, shares of Common Stock of such Principal Party at less than the then current
market price per share (determined pursuant to Section 11(d)) or securities
exercisable for, or convertible into, shares of Common Stock of such Principal
Party at less than such then current marker price (other than to holders of
Rights pursuant to this Section 13) or (ii) providing for any special payment,
tax or similar provisions in connection with the issuance of the shares of
Common Stock of such Principal Party pursuant to the provisions of this Section
13, then, in such event, the Company 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 cancelled, waived
or amended, or that the authorized securities shall be redeemed, so that the
applicable provision will

                                       24
<PAGE>   29
have no effect in connection with, or as a consequence of, the consummation of
the proposed transaction.

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

      Section 14. Fractional Rights and Fractional Shares.

            (a) The Company shall not be required to issue fractions of Rights
or to distribute Rights Certificates which evidence fractional Rights. In lieu
of such fractional Rights, there shall be paid to the registered holders of the
Rights Certificates with regard to which such fractional Rights would otherwise
be issuable, an amount in cash equal to the same fraction of the current market
value of a whole Right. For the purposes of this Section 14(a), the current
market value of a whole Right shall be the closing price of the Rights for the
Trading Day immediately prior to the date on which such fractional Rights would
have been otherwise issuable. The closing price for any day shall be the last
sale price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with respect
to securities listed or admitted to trading on the NASDAQ or, if the Rights are
not listed or admitted to trading on the NASDAQ, as reported in the principal
consolidated transaction reporting system with respect to securities listed on
the principal national securities exchange on which the Rights are listed or
admitted to trading or, if the Rights are not listed or admitted to trading on
any national securities exchange, the last quoted price or, if not so quoted,
the average of the high bid and low asked prices in the over-the-counter market,
as reported by NASDAQ or such other system then in use or, if on any such date
the Rights are not quoted by any such organization, the average of the closing
bid and asked prices as furnished by a professional market maker making a market
in the Rights selected by the Directors. 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 Stock (other than fractions which are integral multiples of one
one-thousandth of a share of Preferred Stock) or Common Stock upon exercise of
the Rights or to distribute certificates which evidence fractional Preferred
Stock (other than fractions which are integral multiples of one one-thousandth
of a share of Preferred Stock) or Common Stock. Fractions of Preferred Stock in
integral multiples of one one-thousandth of a share of Preferred Stock and
fractions of shares of Common Stock 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, however, 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 Stock or Common Stock represented by such
depositary receipts. In lieu of fractional shares of Preferred Stock that are
not integral multiples of one one-thousandth of a share of Preferred Stock or
fractional shares of Common Stock, the Company shall pay to the registered
holders of Rights Certificates at the time such Rights are exercised as herein
provided

                                       25
<PAGE>   30
an amount in cash equal to the same fraction of the current market value of one
share of Common Stock as determined pursuant to Section 11(d).

            (c) 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 provided above).

      Section 15. Rights of Action. All rights of action in respect of this
Agreement, excepting the rights of action given to the Rights Agent under
Section 18 hereof, are vested in the respective registered holders of the Rights
Certificates (and, prior to the Distribution Date, the registered holders of
certificates representing shares of Common Stock); and any registered holder of
any Rights Certificate (or, prior to the Distribution Date, a certificate
representing shares of Common Stock), without the consent of the Rights Agent or
of the holder of any other Rights Certificate (or, prior to the Distribution
Date, of a certificate representing shares of Common Stock), 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 Rights Certificate in the manner provided in such
Rights Certificate and in this Agreement. Without limiting the foregoing or any
remedies available to the holders of Rights, it is specifically acknowledged
that the holders of Rights would not have an adequate remedy at law for any
breach of this Agreement and will be entitled to specific performance of the
obligations hereunder, and injunctive relief against actual or threatened
violations of the obligations of any Person subject to this Agreement.

      Section 16. Agreement of Rights Holders. Every holder of a Right, by
accepting the same, consents and agrees with the Company and the Rights Agent
and with every other holder of a Right that:

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

            (b) after the Distribution Date, the Rights 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;

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

            (d) notwithstanding anything in this Agreement to the contrary,
neither the Company nor the Rights Agent shall have any liability to any holder
of a Right or other Person as a result of its inability to perform any of its
obligations under this Agreement by reason of any preliminary or permanent
injunction or other order, decree or ruling issued by a court of

                                       26
<PAGE>   31
competent jurisdiction or by a governmental, regulatory or administrative agency
or commission, or any statute, rule, regulation or executive order promulgated
or enacted by any governmental authority, prohibiting or otherwise restraining
performance of such obligation; provided, however, the Company must use its best
efforts to have any such order, decree or ruling lifted or otherwise overturned
as soon as possible.

      Section 17. Rights Certificate Holder Not Deemed a Stockholder. No holder,
as such, of any Rights Certificate shall be entitled to vote, receive dividends
or be deemed for any purpose the holder of the Units of Preferred Stock or any
other securities of the Company which may at any time be issuable upon the
exercise of the Rights represented thereby, nor shall anything contained herein
or in any Rights Certificate be construed to confer upon the holder of any
Rights 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 Rights Certificate shall have been exercised in accordance with the
provisions hereof.

      Section 18. Concerning the Rights Agent. The Company agrees to pay to the
Rights Agent reasonable compensation for all services rendered by it hereunder
and, from time to time, on demand of the Rights Agent, its reasonable expenses
and counsel fees and other disbursements incurred in the administration and
execution of this Agreement and the exercise and performance of its duties
hereunder. The Company also agrees to indemnify the Rights Agent for, and to
hold it harmless against, any loss, liability, or expense, incurred without
gross negligence, or willful misconduct on the part of the Rights Agent, for any
action taken, suffered or omitted by the Rights Agent in connection with the
execution, acceptance and administration of this Agreement and the exercise and
performance hereunder of its duties, including the costs and expenses of
defending against and appealing any claim of liability in the premises. The
indemnity provided herein shall survive the termination of this Agreement and
the expiration of the Rights. The costs and expenses incurred in enforcing this
right of indemnification shall be paid by the Company.

            The Rights Agent may conclusively rely upon and shall be protected
and shall incur no liability for, or in respect of any action taken, suffered or
omitted by it in connection with, its administration of this Agreement and the
exercise and performance of its duties hereunder in reliance upon any Rights
Certificate or certificate for Units of Preferred Stock or shares of Common
Stock or for other securities of the Company, instrument of assignment or
transfer, power of attorney, endorsement, affidavit, letter, notice, direction,
consent, certificate, statement, or other paper or document believed by it to be
genuine and to be signed, executed and, where necessary, verified or
acknowledged, by the proper person or persons, or otherwise upon the advice of
counsel as set forth in Section 20 hereof. Notwithstanding anything in this
Agreement to the contrary, in no event shall the Rights Agent be liable for
special, indirect or consequential loss or damage of any kind whatsoever
(including but not limited to lost profits), even if the Rights Agent has been
advised of the likelihood of such loss or damage and regardless of the form of
the action.

                                       27
<PAGE>   32
      Section 19. Merger or Consolidation or Change of Name of Rights
Agent.

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

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

      Section 20. Duties of Rights Agent. The Rights Agent undertakes the duties
and obligations imposed by this Agreement upon the following terms and
conditions and no implied duties or obligations shall be read into this
Agreement against the Rights Agent, by all of which the Company and the holders
of Rights Certificates, by their acceptance thereof, shall be bound:

            (a) Before the Rights Agent acts or refrains from acting, it may
consult with legal counsel of its choice (who may be 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 as to any action taken,
suffered or omitted by it in good faith and in accordance with such advice or
opinion.

            (b) Whenever in the administration, exercise and performance of its
duties under this Agreement the Rights Agent shall deem it necessary or
desirable that any fact or matter be proved or established by the Company prior
to taking, suffering or omitting 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, the Chief Executive Officer, the
President, any Vice President, the Treasurer or the Secretary of the Company and
delivered to the Rights Agent; and such certificate shall be full authorization
to the Rights Agent for any action taken, suffered or

                                       28
<PAGE>   33
omitted in good faith by it under the provisions of this Agreement in reliance
upon such certificate.

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

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

            (e) The Rights Agent shall not be under any liability or
responsibility in respect of the legality, validity or enforceability of this
Agreement or the execution and delivery hereof (except the due execution hereof
by the Rights Agent) or in respect of the legality, validity or enforceability
or the execution of any Rights Certificate (except its countersignature thereof
and has actual knowledge of such change or adjustment); nor shall it be liable
or responsible for any breach by the Company of any covenant or condition
contained in this Agreement or in any Rights Certificate; nor shall it be
responsible for any change in the exercisability of the Rights (including the
Rights becoming void pursuant to Section 11(a)(ii) hereof) or any adjustment in
the terms of the Rights (including the manner, method or amount thereof)
provided for in Section 3, 11, 13, 23 or 24, or the ascertaining of the
existence of facts that would require any such change or adjustment (except with
respect to the exercise of Rights evidenced by Rights Certificates after receipt
of the certificate described in Section 12 hereof or has actual knowledge of
such change or adjustment); nor shall it by any act hereunder be deemed to make
any representation or warranty as to the authorization or reservation of any
Units of Preferred Stock to be issued pursuant to this Agreement or any Rights
Certificate or as to whether any Preferred Stock or Common Stock will, when
issued, be validly authorized and issued, fully paid and nonassessable.

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

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

                                       29
<PAGE>   34
date any officer of the Company actually received 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 or omitted.

            (h) The Rights Agent and any stockholder, 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 Rights Agent
under this Agreement. Nothing herein shall preclude the Rights Agent from acting
in any other capacity for the Company or for any other legal entity.

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

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

            (k) If, with respect to any Rights Certificate surrendered to the
Rights Agent for exercise, transfer, split up, combination or exchange, the
certification on the form of assignment or form of election to purchase, as the
case may be, that the Rights evidenced by the Rights Certificate are not owned
by an Acquiring Person, or an Affiliate or Associate thereof, has either not
been completed or in any manner indicates any other response thereto, the Rights
Agent shall not take any further action with respect to such requested exercise,
transfer, split up, combination or exchange, without first consulting with the
Company.

            (l) The Rights Agent shall not be required to take notice or be
deemed to have any notice of any fact, event or determination (including,
without limitation, any dates or events defined in this Agreement or the
designation of any Person as an Acquiring Person, Affiliate or Associate) under
this Agreement unless and until the Rights Agent shall be specifically notified
in writing by the Company of such fact, event or determination.

      Section 21. Change of Rights Agent.

            The Rights Agent or any successor Rights Agent may resign and be
discharged from its duties under this Agreement upon thirty (30) days' notice in
writing mailed to the Company and to each transfer agent of the Common Stock or
Preferred Stock (as to which the Rights Agent has received prior written notice)
by registered or certified mail, and the Company shall mail notice thereof to
the holders of the Rights Certificates by first-class mail. The Company may
remove the Rights Agent or any successor Rights Agent upon thirty (30) days'

                                       30
<PAGE>   35
notice in writing, mailed to the Rights Agent or successor Rights Agent, as the
case may be, and to each transfer agent of the Common Stock or Preferred Stock
(as to which the Rights Agent has received prior written notice) by registered
or certified mail, and to the holders of the Rights 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 thirty
(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 Rights Certificate (who shall, with such
notice, submit such holder's Rights Certificate for inspection by the Company),
then the registered holder of any Rights 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
corporation organized and doing business under the laws of the United States or
of any state of the United States, in good standing, authorized under such laws
to exercise corporate trust or stock transfer powers, and subject to supervision
or examination by federal or state authority and which has at the time of its
appointment as Rights Agent a combined capital and surplus of at least $50
million. After appointment, the successor Rights Agent shall be vested with the
same powers, rights, duties and responsibilities as if it had been originally
named as Rights Agent without further act or deed; but the predecessor Rights
Agent shall deliver and transfer to the successor Rights Agent any property at
the time held by it hereunder, and execute and deliver any further assurance,
conveyance, act or deed necessary for the purpose. Not later than the effective
date of any such appointment the Company shall file notice thereof in writing
with the predecessor Rights Agent and each transfer agent of the Common Stock or
Preferred Stock, and mail a notice thereof in writing to the registered holders
of the Rights 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 Rights Certificates.

            Notwithstanding any of the provisions of this Agreement or of the
Rights to the contrary, the Company may, at its option, issue new Rights
Certificates evidencing Rights in such form as may be approved by its Board of
Directors to reflect any adjustment or change in the Purchase Price and the
number or kind or class of shares or other securities or property purchasable
under the Rights Certificates made in accordance with the provisions of this
Agreement. In addition, in connection with the issuance or sale of shares of
Common Stock following the Distribution Date and prior to the Expiration Date,
the Company (a) shall, with respect to shares of Common Stock so issued or sold
pursuant to the exercise of stock options or under any employee benefit plan or
arrangement or upon the exercise, conversion or exchange of securities of the
Company currently outstanding or issued at any time in the future by the Company
and (b) may, in any other case, if deemed necessary or appropriate by the Board
of Directors of the Company, issue Rights Certificates representing the
appropriate number of Rights in connection with such issuance or sale; provided,
however, that (i) no such Rights Certificate shall be issued and this sentence
shall be null and void and into if, and to the extent that, such issuance or
this sentence would create a significant risk of or result in material adverse
tax consequences to the Company or the Person to whom such Rights Certificate
would be issued or would create a significant risk of or result in such options'
or employee plans' or arrangements' failing to qualify for otherwise available
special tax treatment and (ii) no such

                                       31
<PAGE>   36
Rights Certificate shall be issued if, and to the extent that, appropriate
adjustment shall otherwise have been made in lieu of the issuance thereof.

      Section 23. Redemption and Termination.

            (a) The Company may, at its option, upon approval by the Board of
Directors of the Company, at any time prior to the earlier of (i) the Shares
Acquisition Date or (ii) the Final Expiration Date redeem all but not less than
all of the then outstanding Rights at a redemption price of $0.01 per Right,
appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof (such redemption price being
hereinafter referred to as the "Redemption Price"), and the Company may, at its
option, pay the Redemption Price either in cash, shares of Common Stock (based
on the current per share market price thereof (as determined pursuant to Section
11(d) hereof) at the time of redemption), or any other form of consideration
deemed appropriate by the Board of Directors. 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 in its sole discretion
may establish.

            (b) Immediately upon the action of the Board of Directors of the
Company ordering the redemption of the Rights pursuant to 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; provided, however, that the failure
to give, or any defect in, any such notice shall not affect the validity of such
redemption. Within 10 days after such action of the Board of Directors ordering
the redemption of the Rights, the Company shall give notice of such redemption
to the Rights Agent and 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 Stock. Any notice which is
mailed in the manner herein provided shall be deemed given, whether or not the
holder receives the notice. Each such notice of redemption will state the method
by which the payment of the Redemption Price will be made. Neither the Company
nor any of its 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 shares of Common Stock prior to the Distribution Date.

            (c) Notwithstanding anything contained in this Agreement to the
contrary, the Rights shall not be exercisable pursuant to Section 7(a) at any
time when the Rights are redeemable hereunder.

      Section 24. Exchange.

            (a) The Company, at its option, upon approval by the Board of
Directors of the Company, at any time after any Person becomes an Acquiring
Person, may exchange all or part of the then outstanding and exercisable Rights
(which shall not include Rights that have become void pursuant to the provisions
of Section 7(e) hereof) for shares of Common Stock at an exchange ratio equal to
(subject to adjustment to reflect stock splits, stock dividends and similar
transactions occurring after the date hereof), at the election and in the sole
discretion of the

                                       32
<PAGE>   37
Board of Directors or the Company, either (i) that number obtained by dividing
the Purchase Price by the then current per share market price per share of
Common Stock on the earlier of (A) the date on which any Person becomes an
Acquiring Person or (B) the date on which a tender or exchange offer by any
Person (other than the Company, any Subsidiary of the Company, any employee
benefit plan maintained by the Company or any of its Subsidiaries or any trustee
or fiduciary with respect to such plan acting in such capacity) is first
published or sent or given within the meaning of Rule 14d-4(a) of the Exchange
Act Regulations or any successor rule, if upon consummation thereof such Person
would be the Beneficial Owner of 15% or more of the shares of Common Stock then
outstanding or (ii) one share of Common Stock per Right (such exchange ratio
being hereinafter referred to as the "Section 24(a) Exchange Ratio").
Notwithstanding the foregoing, the Company may not effect such exchange at any
time after any Person (other than the Company, any Subsidiary of the Company,
any employee benefit plan maintained by the Company or any of its Subsidiaries,
or any trustee or fiduciary with respect to such plan acting in such capacity),
together with all Affiliates and Associates of such Person, becomes the
Beneficial Owner of 50% or more of the shares of Common Stock then outstanding.

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

            (c) In the event that the number of shares of Common Stock which are
authorized by the Company's Certificate of Incorporation but not outstanding or
reserved for issuance for purposes other than upon exercise of the Rights are
not sufficient to permit any exchange of Rights as contemplated in accordance
with this Section 24, the Company shall take all such action as may be necessary
to authorize additional shares of Common Stock for issuance upon exchange of the
Rights or make adequate provision to substitute (1) cash, (2) Units of Preferred
Stock or other shares or fractions of shares of Preferred Stock or other equity
securities of the Company, (3) debt securities of the Company, (4) other assets,
or (5) any combination of the foregoing, having an aggregate value equal to the
Adjustment Spread, where such aggregate value has been determined by the Board
of Directors of the Company. To the extent that the Company determines that some
action need be taken pursuant to subsection (a) of this Section 24, the Board of
Directors may temporarily suspend the exercisability of the Rights for a period
of up to sixty (60) days following the date on which the event described in
Section 24(a) shall have occurred, in order to seek any authorization of
additional shares of Common Stock or other securities and/or to decide the
appropriate form of distribution to be made pursuant to the above

                                       33
<PAGE>   38
provision and to determine the value thereof. In the event of any such
suspension, the Company shall issue a public announcement stating that the
exercisability of the Rights has been temporarily suspended.

            (d) The Company shall not be required to issue fractions smaller
than or to distribute certificates which evidence fractions smaller than one
share of Common Stock. In lieu thereof, the Company shall pay to the registered
holders of the Rights Certificates with regard to which such fractional shares
would otherwise be issuable an amount in cash equal to the same fraction of the
current market value (as determined pursuant to Section 11(d)(i) hereof) of one
share of Common Stock.

      Section 25. Notice of Certain Events.

            (a) In case the Company shall propose (i) to pay any dividend
payable in stock of any class to the holders of its Preferred Stock or to make
any other distribution to the holders of its Preferred Stock (other than a
regular quarterly cash dividend), (ii) to offer to the holders of its Preferred
Stock rights or warrants to subscribe for or to purchase any additional Units of
Preferred Stock or shares of stock of any class or any other securities, rights
or options, (iii) to effect any reclassification of its Preferred Stock (other
than a reclassification involving only the subdivision of outstanding Preferred
Stock), (iv) to effect any consolidation or merger into or with any other Person
(other than a Subsidiary of the Company in a transaction which complies with
Section 11(o)), 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 Stock payable in shares of Common Stock or to effect
a subdivision, combination or consolidation of the shares of Common Stock (by
reclassification or otherwise than by payment of dividends in shares of Common
Stock), then, in each such case, the Company shall give to each holder of a
Rights 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 shares of Common Stock and/or shares of Preferred
Stock, if any such date is to be fixed, and such notice shall be so given in the
case of any action covered by clause (i) or (ii) above at least ten (10) days
prior to the record date for determining holders of the shares of Preferred
Stock 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 shares of Common Stock
and/or shares of Preferred Stock, whichever shall be the earlier.

            (b) In case any of the events set forth in Section 11(a)(ii) hereof
shall occur, then the Company shall as soon as practicable thereafter give to
each holder of a Rights 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. In the event any Person becomes an Acquiring Person, the Company will
promptly notify the Rights Agent thereof.

                                       34
<PAGE>   39
      Section 26. Notices.

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

            Microtest, Inc.
            4747 North 22nd Street
            Phoenix, Arizona  85016
            Attention:  Secretary

Subject to the provisions of Section 21 hereof, any notice or demand authorized
by this Agreement to be given or made by the Company or by the holder of any
Rights Certificate to or on the Rights Agent shall be sent by registered or
certified mail and shall be deemed given upon receipt and addressed (until
another address is filed in writing with the Company) as follows:

            American Stock Transfer & Trust Company
            59 Maiden Lane
            New York, New York  10038
            Attention:  Karen A. Lazar, Account Executive

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

      Section 27. Supplements and Amendments.

            Prior to the Distribution Date, the Company may supplement or amend
this Agreement in any respect, without the approval of any holders of Rights, by
action of its Board of Directors, and the Rights Agent shall, if the Company so
directs and at the expense of the Company, execute such supplement or amendment.
From and after the Distribution Date, the Company may from time to time
supplement or amend this Agreement without the approval of any holders of
Rights, by action of its Board of Directors, in order (i) to cure any ambiguity,
(ii) to correct or supplement any provision contained herein which may be
defective or inconsistent with any other provisions herein, (iii) to shorten or
lengthen any time period hereunder or (iv) to change or supplement the
provisions hereunder in any manner which the Company may deem necessary or
desirable and which shall not adversely affect the interests of the holders of
Rights Certificates (other than an Acquiring Person or an Affiliate or Associate
of an Acquiring Person), including, without limitation, to change the Purchase
Price, the Redemption Price, any time periods herein specified, and any other
term hereof, any such supplement or amendment to be evidenced by a writing
signed by the Company and the Rights Agent; provided, however, that from and
after such time as any Person becomes an Acquiring Person, this Agreement shall
not be amended in any manner which would adversely affect the interests of the
holders of Rights. Upon receipt of a certificate from an appropriate officer of
the Company that the proposed supplement or amendment is consistent with this
Section 27 and, after such time as any Person

                                       35
<PAGE>   40
has become an Acquiring Person, that the proposed supplement or amendment does
not adversely affect the interests of the holders of Rights, the Rights Agent
shall execute such supplement or amendment. Notwithstanding anything in this
Agreement to the contrary, no supplement or amendment that changes the rights
and duties of the Rights Agent under this Agreement will be effective against
the Rights Agent without the execution of such supplement or amendment by the
Rights Agent.

      Section 28. Successors.

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

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

            For all purposes of this Agreement, any calculation of the number of
shares of Common Stock outstanding at any particular time, including for
purposes of determining the particular percentage of such outstanding shares of
Common Stock of which any Person is the Beneficial Owner, shall be made in
accordance with the last sentence of Rule 13d-3(d)(1)(i) of the Exchange Act.
The Board of Directors of the Company shall have the exclusive power and
authority to administer this Agreement and to exercise all rights and powers
specifically granted to the Board of Directors, or the Company, or as may be
necessary or advisable in the administration of this Agreement, including,
without limitation, the right and power to (i) interpret the provisions of this
Agreement and (ii) make all determinations deemed necessary or advisable for the
administration of this Agreement (including a determination to redeem or not
redeem the Rights or to amend the Agreement). All such actions, calculations,
interpretations and determinations (including, for purposes of clause (y) below,
all omissions with respect to the foregoing), which are done or made by the
Board of Directors in good faith, shall (x) be final, conclusive and binding on
the Company, the Rights Agent, the holders of the Rights Certificates and all
other parties and (y) not subject the Board of Directors to any liability to the
holders of the Rights.

      Section 30. Benefits of This Agreement.

            Nothing in this Agreement shall be construed to give to any person
or corporation other than the Company, the Rights Agent and the registered
holders of the Rights Certificates (and, prior to the Distribution Date, shares
of Common Stock) any legal or equitable right, remedy or claim under this
Agreement; but this Agreement shall be for the sole and exclusive benefit of the
Company, the Rights Agent and the registered holders of the Rights Certificates
(and, prior to the Distribution Date, shares of Common Stock).

      Section 31. Severability.

            If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction or other authority to be invalid, void
or unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated; provided, however, that
notwithstanding anything in this Agreement to the contrary, if any such term,
provision,

                                       36
<PAGE>   41
covenant or restriction is held by such court or authority to be invalid, void
or unenforceable and the Board of Directors of the Company determines in its
good faith judgment that severing the invalid language from this Agreement would
adversely affect the purpose or effect of this Agreement, the right of
redemption set forth in Section 23 hereof shall be reinstated and shall not
expire until the tenth Business Day following the date of such determination by
the Board of Directors of the Company.

      Section 32. Governing Law.

            This Agreement and each Rights 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.

      Section 33. Counterparts.

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

      Section 34. Descriptive Headings.

            Descriptive headings of the several sections of this Agreement are
inserted or convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

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

ATTEST:                                MICROTEST, INC.

By:  /s/ William R. Crowell            By:      /s/ Vincent C. Hren
    ---------------------------                --------------------------------
Name:   William R. Crowell             Name:    Vincent C. Hren
Title:  Secretary                      Title:   President and Chief Executive
                                                Officer

                                       AMERICAN STOCK TRANSFER & TRUST COMPANY,
                                       as Rights Agent

                                       By:      /s/ Herbert J. Lemmer
                                                --------------------------------
                                       Name:    Herbert J. Lemmer
                                       Title:   Vice President and General
                                                Counsel

                                       37
<PAGE>   42
                                                                       Exhibit A

                                      FORM

                                       OF

                           CERTIFICATE OF DESIGNATION

                                       OF

               SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

                                       OF

                              MICROTEST, INC.

                      (PURSUANT TO SECTION 151 OF THE
                     DELAWARE GENERAL CORPORATION LAW)

      Microtest, Inc., a corporation organized and existing under the General
Corporation Law of the State of Delaware (hereinafter called the "Corporation"),
hereby certifies that the following resolution was adopted by the Board of
Directors of the Corporation as required by Section 151 of the General
Corporation Law of the State of Delaware at a meeting duly called and held on
February 16, 2001;

      RESOLVED, that pursuant to the authority granted to and vested in the
Board of Directors of the Corporation (hereinafter called the "Board of
Directors" or the "Board") in accordance with the provisions of the Certificate
of Incorporation, as amended, the Board of Directors hereby creates a series of
Preferred Stock, par value $0.01 per share (the "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:

      Series A Junior Participating Preferred Stock:

      1. Designation and Amount. The shares of such series shall be designated
as "Series A Junior Participating Preferred Stock" (the "Series A Preferred
Stock") and the number of shares constituting the Series A Preferred Stock shall
be one hundred thousand (100,000). 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 Preferred Stock to a number less
than the number of shares then outstanding plus the number of shares reserved
for issuance upon the exercise of outstanding options, rights or warrants or
upon the conversion of any outstanding securities issued by the Corporation
convertible into Series A Preferred Stock.
<PAGE>   43
      2.    Dividends and Distributions.

            (a) 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 Preferred Stock with respect to dividends, each holder of a share of
Series A Preferred Stock, in preference to the holders of shares of Common
Stock, par value $0.001 per share (the "Common Stock"), of the Corporation, and
of any other junior stock, shall be entitled to receive, when declared by the
Board of Directors out of funds legally available for the purpose, quarterly
dividends payable in cash on the last business 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 Series A Preferred
Stock, in an amount per share (rounded to the nearest cent) equal to, 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 a share or fraction of Series A
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 Preferred
Stock were entitled immediately prior to such event under 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.

            (b) The Corporation shall declare a dividend or distribution on the
shares of Series A Preferred Stock as provided in paragraph (a) 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, however,
that, in the event no dividend or distribution shall have been declared on the
Common Stock during the period between any Quarterly Distribution Date and the
next subsequent Quarterly Dividend Payment Date, a dividend of $1.00 per share
of Series A Preferred Stock shall nevertheless be payable on such subsequent
Quarterly Dividend Payment Date.

            (c) Dividends shall begin to accrue and be cumulative on each
outstanding share of Series A Participating Preferred Stock from the Quarterly
Dividend Payment Date next preceding the date of issue of such share of Series A
Preferred Stock, unless the date of issue of such share is prior to the record
date for the first Quarterly Dividend Payment Date, in which case dividends on
such share shall begin to accrue from the date of issue of such share, 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 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.

                                       2
<PAGE>   44
Accrued but unpaid dividends shall not bear interest. Dividends paid on the
shares of Series A Preferred Stock in an amount less than the total amount of
such dividends at the time accrued and payable on such shares shall be allocated
pro rata on a share-by-share basis among all such shares at the time
outstanding. The Board of Directors may fix a record date for the determination
of holders of shares of Series A Preferred Stock entitled to receive payment of
a dividend or distribution declared thereon, which record date shall be not more
than 60 days prior to the date fixed for the payment thereof.

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

            (a) Subject to the provision for adjustment hereinafter set forth,
each share of Series A Preferred Stock shall entitle the holder thereof to One
Thousand (1,000) votes on all matters submitted to a vote of the stockholders of
the Corporation. In the event the Corporation shall at any time 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 Preferred Stock were entitled immediately prior to such event shall be
adjusted by multiplying such number by a fraction, the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

            (b) Except as otherwise provided herein, in 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 Preferred Stock and the holders of shares
of Common Stock and any other capital stock of the Corporation having general
voting rights shall vote together as one class on all matters submitted to a
vote of stockholders of the Corporation.

            (c) Except as set forth herein, or as otherwise provided by law,
holders of Series A 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.

      4.    Certain Restrictions.

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

                  (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 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

                                       3
<PAGE>   45
winding up) with the Series A Preferred Stock, except dividends paid ratably on
the shares of Series A 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 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 (either as to dividends or upon dissolution,
liquidation or winding up) to the Series A Preferred Stock; or

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

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

      5. Reacquired Shares. Any shares of Series A Preferred Stock purchased or
otherwise acquired by the Corporation in any manner whatsoever shall be retired
and cancelled promptly after the acquisition thereof. 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 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.

      6.    Liquidation, Dissolution or Winding Up.

      (a) Upon any liquidation, dissolution or winding up of the Corporation, no
distribution shall be made (i) to the holders of shares of stock ranking junior
(either as to dividends or upon liquidation, dissolution or winding up) to the
Series A Preferred Stock unless, prior thereto, the holders of shares of Series
A Preferred Stock shall have received One Thousand Dollars ($1,000) 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 Preferred Stock shall be entitled to receive an aggregate
amount per share, subject to the provision for adjustment hereinafter set forth,
equal to 1,000 times the aggregate amount to be distributed per share to holders
of shares of Common Stock (the "Series A Liquidation Preference"), or (ii) 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 Preferred Stock,
except distributions made ratably on the Series A 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

                                       4
<PAGE>   46
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 Preferred Stock were entitled immediately prior to
such event under the proviso in clause (i) 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 "Common Adjustment").

      (b) In the event, however, that there are not sufficient assets available
to permit payment in full to the Series A Liquidation Preference and the
liquidation preferences of all other series of Preferred Stock, if any, which
rank on a parity with the Series A Participating Preferred Stock, then such
remaining assets shall be distributed ratably to the holders of such parity
shares in proportion to their respective liquidation preferences.

      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
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 One Thousand (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 Preferred Stock shall be adjusted by multiplying
such amount by a fraction, the numerator of which is the number of shares of
Common Stock outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

      8.    No Redemption.  The shares of Series A Preferred Stock shall
not be subject to redemption by the Corporation.

      9. Rank. The Series A Preferred Stock shall rank, with respect to the
payment of dividends and the distribution of assets upon liquidation,
dissolution or winding up, junior to all series of the Corporation's Preferred
Stock, unless the terms of any such series shall provide otherwise, and shall
rank senior to the Common Stock as to such matters.

      10. Amendment. At any time that any shares of Series A Preferred Stock are
outstanding, the 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

                                       5
<PAGE>   47
Series A 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
Preferred Stock, voting separately as a single class.

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

      IN WITNESS WHEREOF, this Certificate of Designation has been executed on
behalf of the Corporation by its President and Chief Executive Officer and its
corporate seal attested by its Secretary this ____ day of ______________, 2001.

                                       MICROTEST, INC.

                                       By:    _________________________________
                                       Name:  Vincent C. Hren
                                       Title: President and Chief
                                       Executive Officer
Attest:

_______________________________
Name: William R. Crowell
Title:      Secretary

                                       6
<PAGE>   48
                                                                       Exhibit B

                           Form of Rights Certificate

Certificate No. R-                                             ________ Rights

            NOT EXERCISABLE AFTER APRIL 4, 2011 OR EARLIER IF REDEMPTION OR
            EXCHANGE OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT THE OPTION
            OF THE COMPANY AT $0.01 PER RIGHT AND TO EXCHANGE ON THE TERMS SET
            FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, AS SET
            FORTH IN THE RIGHTS AGREEMENT, RIGHTS BENEFICIALLY OWNED BY OR
            TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON OR
            AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE
            DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN SUBSEQUENT HOLDERS OF
            SUCH RIGHTS WILL BECOME NULL AND VOID. [THE RIGHTS REPRESENTED BY
            THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON
            WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE
            OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
            AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS
            REPRESENTED HEREBY HAVE BECOME NULL AND VOID IN THE CIRCUMSTANCES
            SPECIFIED IN SUCH AGREEMENT.]*

                               Rights Certificate
                                 MICROTEST, 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 4, 2001, as the same may amended from time to time
in accordance with its terms (the "Rights Agreement"), between Microtest, Inc.,
a Delaware corporation (the "Company"), and American Stock Transfer & Trust
Company, a New York banking corporation, as Rights Agent (the "Rights Agent"),
to purchase from the Company at any time after the Distribution Date (as such
term is defined in the Rights Agreement) and prior to 5:00 P.M., Arizona time,
on April 4, 2011 at the office or agency of the Rights Agent designated for such
purpose, or at the office of its successor as Rights Agent, one one-thousandth
(a "Unit") of a fully paid non-assessable share of Series A Junior Participating
Preferred Stock, par value $0.01 per share (the "Series A Preferred Stock") of
the Company, at a purchase price of $25.00 per Unit of Series A Preferred Stock
(the "Purchase Price"), upon

--------

*    The portion of the legend in bracket shall be inserted only if applicable
     and shall replace the preceding sentence.
<PAGE>   49
presentation and surrender of this Rights Certificate with the Form of Election
to Purchase duly executed. The number of Rights evidenced by this Rights
Certificate (and the number of Units of Series A Preferred Stock 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 4, 2001 based on the
Series A Preferred Stock as constituted at such date. As provided in the Rights
Agreement, the Purchase Price and the number of Units of Series A Preferred
Stock which may be purchased upon the exercise of the Rights evidenced by this
Rights Certificate are subject to modification and adjustment upon the happening
of certain events.

      This Rights Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Rights Certificates. Copies of
the Rights Agreement are on file at the principal executive offices of the
Company and the above-mentioned office or agency of the Rights Agent. The
Company will mail to the holder of the Rights Certificates a copy of the Rights
Agreement, without charge, after receipt of a written request therefor.

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

      Subject to the provisions of the Rights Agreement, the Rights evidenced by
this 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 shares of the
Company's Common Stock, $0.01 par value per share, shares of Series A Preferred
Stock, or other securities, debt instruments or assets of the Company.

      No fractional shares of Series A Preferred Stock will be issued upon the
exercise of any Rights or Rights evidenced hereby (other than fractions which
are integral multiples of one one-thousandth of a share of Series A Preferred
Stock, 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 Rights Certificate, as such, shall be entitled to vote
or receive dividends or be deemed for any purpose the holder of shares or Units
of Series A Preferred Stock or of any other securities of the Company which may
at any time be issuable on the exercise or exchange 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

                                       2
<PAGE>   50
or other actions affecting stockholders (except as provided in the Rights
Agreement), or to receive dividends or subscription rights, or otherwise, until
the Rights or Rights evidenced by this Rights Certificate shall have been
exercised or exchanged for shares of stock having such rights as provided in the
Rights Agreement.

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

      WITNESS the signature of the proper officers of the Company and its
corporate seal. Dated as of ___________, 2001.

                                       MICROTEST, INC.

                                       By:   __________________________________
                                       Name:
                                       Title:

ATTEST:

___________________________
Name:
Title: Secretary

Countersigned:

___________________________,
as Rights Agent

By:___________________________
      Authorized Signatory

                 FORM OF REVERSE SIDE OF RIGHTS CERTIFICATE
                               FORM OF ASSIGNMENT

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

      FOR VALUE RECEIVED                                  hereby sells,
assigns and transfers unto

            (Please print name and address of transferee)

      _____________ Rights represented by this Rights Certificate, together with
all right, title and interest therein, and does hereby irrevocably constitute
and appoint

                                       3
<PAGE>   51
__________________________ Attorney, to transfer the within Rights Certificate
on the books of the within-named Company, with full power of substitution.

Dated:__________________,

___________________________
Signature

Signature Guaranteed:

      Signatures must be guaranteed by a participant in a Securities
Transfer Association Inc. recognized signature guarantee medallion program.

                                       4
<PAGE>   52
                                  CERTIFICATION

      The undersigned hereby certifies that the Rights evidenced by this Rights
Certificate are not beneficially owned by, were not acquired by the undersigned
from, and are not being assigned to, an Acquiring Person or an Affiliate or
Associate thereof (as defined in the Rights Agreement).

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

           -----------------------------------------------------

                                     NOTICE

      The signature in the foregoing Form of Assignment must conform to the name
as written upon the face of this Rights 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
is not completed, the Company and the Rights Agent will deem the beneficial
owner of the Rights evidenced by this Rights Certificate to be an Acquiring
Person or an Affiliate or Associate thereof (as defined in the Rights Agreement)
and such Assignment will not be honored.

                                       5
<PAGE>   53
           FORM OF REVERSE SIDE OF RIGHTS CERTIFICATE - CONTINUED

                          FORM OF ELECTION TO PURCHASE

   (TO BE EXECUTED IF HOLDER DESIRES TO EXERCISE THE RIGHTS CERTIFICATE.)

      To MICROTEST, INC.:

      The undersigned hereby irrevocably elects to exercise Rights represented
by this Rights Certificate to purchase the Units of Series A Preferred Stock (or
other securities or property) issuable upon the exercise of such Rights and
requests that certificates for such Series A Preferred Stock (or other
securities) 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 Rights
Certificate, a new Rights 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 a participant in a Securities
Transfer Association Inc. recognized signature guarantee medallion program.

                                  CERTIFICATION

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

      ---------------------------------------
      Signature
<PAGE>   54
           -----------------------------------------------------
                                     NOTICE

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

      In the event the certification set forth above in 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 Rights
Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as
defined in the Rights Agreement) and such Election to Purchase will not be
honored.

                                       2
<PAGE>   55
                                                                       Exhibit C

                                 MICROTEST, INC.

                          SUMMARY OF RIGHTS TO PURCHASE
                       SHARES OF SERIES A PREFERRED STOCK

            On February 16, 2001, the Board of Directors of Microtest, Inc. (the
"Company") declared a dividend of one common stock purchase right (a "Right")
for each outstanding share of Common Stock (the "Common Stock"), par value
$0.001 per share, of the Company. The dividend is payable on April 14, 2001 (the
"Record Date") to the stockholders of record on that date. The description and
terms of the Rights are set forth in a Rights Agreement dated as of April 4,
2001, as the same may be amended from time to time (the "Rights Agreement"),
between the Company and American Stock Transfer & Trust Company, as Rights Agent
(the "Rights Agent"). Set forth below is a summary of the Rights and the Rights
Agreement.

            Each Right entitles the registered holder to purchase from the
Company one one-thousandth of a share (a "Unit") of Series A Junior
Participating Preferred Stock, par value $0.01 per share (the "Series A
Preferred Stock"), of the Company at a price of $25.00 per Unit (the "Purchase
Price"), subject to adjustment (or other securities or property of the Company,
as described herein).

            Until the earlier to occur of (i) the close of business on the first
date of a public announcement that a person or group of affiliated or associated
persons (an "Acquiring Person") has acquired beneficial ownership of 15% or more
of the outstanding Common Stock or (ii) 10 business days (or such later date as
may be determined by action of the Board of Directors 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 such outstanding Common Stock (the earlier of such dates
being called the "Distribution Date"), the Rights will be evidenced, with
respect to any of the Common Stock certificates outstanding as of the Record
Date, by such Common Stock certificate with a copy of the Summary of Rights
attached thereto.

            The Rights Agreement provides that, until the Distribution Date, the
Rights will be transferred with and only with the Common Stock. Until the
Distribution Date (or earlier redemption or expiration of the Rights), new
Common Stock certificates issued upon transfer or new issuance of Common Stock
will contain a notation incorporating the Rights Agreement by reference. Until
the Distribution Date (or earlier redemption or expiration of the Rights), the
surrender for transfer of any certificates for Common Stock, even without such
notation or a copy of this Summary of Rights being attached thereto, will also
constitute the transfer of the Rights associated with the Common Stock
represented by such certificate. As soon as practicable following the
Distribution Date, separate certificates evidencing the Rights ("Rights
Certificates") will be mailed to holders of record of the Common Stock as of the
Close of Business on the Distribution Date and such separate Rights Certificates
alone will evidence the Rights.
<PAGE>   56
            The Rights are not exercisable until the Distribution Date. The
Rights will expire at the close of business on April 4, 2011 (the "Final
Expiration Date"), unless the Final Expiration Date is extended or unless the
Rights are earlier redeemed or exchanged by the Company, in each case as
described below.

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

            The number of outstanding Rights and the number of Units of
Preferred Stock issuable upon exercise of each Right are also subject to
adjustment in the event of a stock split of the Common Stock or a stock dividend
on the Common Stock payable in Common Stock or subdivisions, consolidations or
combinations of the Common Stock occurring, in any such case, prior to the
Distribution Date.

            Units of Preferred Stock purchasable upon exercise of the Rights
will not be redeemable. Each Unit of Preferred Stock will be entitled to a
dividend equal to (and having priority over) any dividend declared per share of
Common Stock. In the event of liquidation, each Unit of Preferred Stock will be
entitled to a payment equal to (and having priority over) any payment made per
share of Common Stock. Each Unit of Preferred Stock will have one vote, voting
together with the Common Stock. Finally, in the event of any merger,
consolidation or other transaction in which shares of Common Stock are
exchanged, each Unit of Preferred Stock will be entitled to receive an amount
equal to the amount received per share of Common Stock. These rights are
protected by customary antidilution provisions.

            Because of the nature of the dividend, liquidation and voting
rights, the value of each Unit of Preferred Stock purchasable upon exercise of
the Rights should approximate the value of one share of Common Stock.

            In the event that, after the Rights become exercisable, the Company
is acquired in a merger or other business combination transaction with an
Acquiring Person or an affiliate thereof, or 50% or more of its consolidated
assets or earning power are sold to an Acquiring Person or an affiliate thereof,
proper provision will be made so that each holder of a Right will thereafter
have the right to receive, upon exercise thereof at the then current exercise
price of the Rights, 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 exercise price of the Rights.

            In the event that any person or group of affiliated or associated
persons becomes the beneficial owner of 15% or more of the outstanding shares of
Common Stock, proper provision shall be made so that each holder of a Right,
other than Rights beneficially owned by

                                       2
<PAGE>   57
the Acquiring Person (which will thereafter be void), will thereafter have the
right to receive upon exercise that number of shares of Common Stock (or cash,
other securities or property) having a market value of two times the exercise
price of the Rights.

            At any time after the acquisition by a person or group of affiliated
or associated persons of beneficial ownership of 15% or more of the outstanding
shares of Common Stock and prior to the acquisition by such person or group of
50% or more of the outstanding Common Stock, the Board of Directors of the
Company may exchange all or part of the Rights (other than Rights owned by such
person or group, which have become void) for shares of Common Stock (or other
securities, assets or property) at an exchange ratio (subject to adjustment)
which shall equal, subject to adjustment to reflect stock splits, stock
dividends and similar transactions occurring after the date hereof, either (A)
that number obtained by dividing the Purchase Price by the then current per
share market price per share of Common Stock on the earlier of (i) the date on
which any Person becomes an Acquiring Person or (ii) the date on which a tender
or exchange offer is announced by any Person, if upon consummation thereof such
Person would be the Beneficial Owner of 15% or more of the shares of Company
Common Stock then outstanding or (B) one share of Common Stock per Right, as
determined by the Board of Directors in its sole discretion.

            With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments require an adjustment of at least 1% in
such Purchase Price. No fractional shares of Preferred Stock will be issued
(other than fractions which are integral multiples of one one-thousandth of a
share of Preferred Stock, which may, at the election of the Company, be
evidenced by depositary receipts) and, in lieu thereof, an adjustment in cash
will be made based on the market price of the Units of Preferred Stock on the
last trading day prior to the date of exercise.

            At any time prior to the date that a person or group of affiliated
or associated persons acquire beneficial ownership of 15% or more of the
outstanding Common Stock, 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 and 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. The Rights are also redeemable under
other circumstances as specified in the Rights Agreement.

            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 a Distribution Date no such amendment may adversely affect the
interests of the holders of the Rights.

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

                                       3
<PAGE>   58
            The Rights have certain anti-takeover effects. The Rights will cause
substantial dilution to a person or group that attempts to acquire the Company
on terms not approved by the Company's Board of Directors, except pursuant to an
offer conditioned on a substantial number of rights being acquired. The Rights
should not interfere with any merger or other business combination approved by
the Board of Directors because the Rights may be redeemed by the Company at the
Redemption Price prior to the occurrence of a Distribution Date.

            A copy of the Rights Agreement has been filed with the Securities
and Exchange Commission as an Exhibit to a Registration Statement on Form 8-A,
and also as an Exhibit to a Current Report on Form 8-K. 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.

                                       4

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