Document:

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                             SUMMIT TECHNOLOGY, INC.

                                       and

                               Fleet National Bank

                                 as Rights Agent

                                  -----------

                                Rights Agreement

                           Dated as of March 28, 2000

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                                TABLE OF CONTENTS

<TABLE>
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Section                                                                                                         Page
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<S>                                                                                                              <C>
Section 1.  CERTAIN DEFINITIONS...................................................................................1

Section 2.  APPOINTMENT OF RIGHTS AGENT...........................................................................6

Section 3.  ISSUE OF RIGHTS CERTIFICATES..........................................................................6

Section 4.  FORM OF RIGHTS CERTIFICATES...........................................................................8

Section 5.  COUNTERSIGNATURE AND REGISTRATION.....................................................................9

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..................................................12

Section 9.  RESERVATION AND AVAILABILITY OF SHARES OF PREFERRED STOCK; OTHER COVENANTS...........................12

Section 10.  PREFERRED STOCK RECORD DATE; ETC....................................................................14

Section 11.  ANTIDILUTION ADJUSTMENTS............................................................................14

Section 12.  CERTIFICATE OF ADJUSTMENTS..........................................................................24

Section 13.  CONSOLIDATION, MERGER OR SALE OR TRANSFER OF ASSETS OR EARNING POWER................................24

Section 14.  FRACTIONAL RIGHTS AND FRACTIONAL SHARES.............................................................26

Section 15.  RIGHTS OF ACTION....................................................................................27

Section 16.  AGREEMENT OF RIGHTS HOLDERS.........................................................................27

Section 17.  RIGHTS CERTIFICATE HOLDER NOT DEEMED A STOCKHOLDER..................................................28

Section 18.  CONCERNING THE RIGHTS AGENT.........................................................................28
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<S>                                                                                                              <C>
Section 19.  MERGER OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT...........................................29

Section 20.  DUTIES OF RIGHTS AGENT..............................................................................30

Section 21.  CHANGE OF RIGHTS AGENT..............................................................................32

Section 22.  ISSUANCE OF NEW RIGHTS CERTIFICATES.................................................................33

Section 23.  REDEMPTION AND TERMINATION..........................................................................33

Section 24.  EXCHANGE............................................................................................34

Section 25.  NOTICE OF PROPOSED ACTIONS..........................................................................35

Section 26.  NOTICES.............................................................................................36

Section 27.  SUPPLEMENTS AND AMENDMENTS..........................................................................37

Section 28.  SUCCESSORS..........................................................................................37

Section 29.  DETERMINATIONS AND ACTIONS BY THE BOARD; ETC........................................................38

Section 30.  BENEFITS OF THIS AGREEMENT..........................................................................38

Section 31.  SEVERABILITY........................................................................................38

Section 32.  GOVERNING LAW.......................................................................................39

Section 33.  COUNTERPARTS........................................................................................39

Section 34.  DESCRIPTIVE HEADINGS................................................................................39
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                                RIGHTS AGREEMENT

     This Agreement dated as of March 28, 2000 is between Summit Technology,
Inc., a Massachusetts corporation (the "Company"), and Fleet National Bank
(f/k/a BankBoston, N.A.), as rights agent (the "Rights Agent").

                              W I T N E S S E T H:

     WHEREAS, on March 28, 2000 the Board of Directors of the Company (the
"Board") authorized the issuance of rights (collectively, the "Rights," and
individually a "Right"), each Right being a right to purchase, on the terms and
subject to the provisions of this Agreement, one one-thousandth of a share of
the Company's Preferred Stock; and

     WHEREAS, on March 28, 2000 (the "Declaration Date") the Board (a)
authorized and declared a dividend distribution of one Right for every share of
Common Stock, $.01 par value per share, of the Company outstanding at the Close
of Business (as hereinafter defined) on March 29, 2000 (the "Dividend Record
Date"), and (b) authorized the issuance of, and agreed to issue, one Right (as
such number may be adjusted in accordance with Section 11(i) or 11(p) hereof)
for every share of Common Stock of the Company issued between the Dividend
Record Date and the Distribution Date (as hereinafter defined).

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

Section 1.  CERTAIN DEFINITIONS.

     For purposes of this Agreement, the following terms have the meanings
indicated:

     (a)  "Acquiring Person" shall mean any Person who or which, together with
all Affiliates of such Person, shall be the Beneficial Owner of 15.0% or more of
the shares of Common Stock then outstanding, but shall not include (i) the
Company, (ii) any Subsidiary of the Company, (iii) any employee benefit plan of
the Company or of any Subsidiary of the Company, (iv) any Person organized,
appointed, or established by the Company or a Subsidiary of the Company pursuant
to the terms of any plan described in clause (iii) above, or (v) any such Person
who has reported or is required to report such ownership on Schedule 13G under
the Exchange Act (or any comparable or successor report) or on Schedule 13D
under the Exchange Act (or any comparable or successor report) which Schedule
13D does not state any intention to or reserve the right to control or influence
the management or policies of the Company or engage in any of the actions
specified in Item 4 of such Schedule (other than the disposition of the Common
Stock) and, within 10 Business Days of being requested by the Company to advise
it regarding the same, certifies to the Company that such Person acquired shares
of Common Stock in excess of 14.9% inadvertently or without knowledge of the
terms

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of the Rights and who, together with all of such Person's Affiliates, thereafter
does not acquire additional shares of Common Stock while the Beneficial Owner of
15.0% or more of the shares of Common Stock then outstanding, PROVIDED, HOWEVER,
that if the Person requested to so certify fails to do so within 10 Business
Days, then such Person shall become an Acquiring Person immediately after such
10 Business Day Period.

     (b)  "Act" shall mean the Securities Act of 1933 (or any successor act), as
amended and as may from time to time be in effect.

     (c)  "Affiliate," with respect to any Person, shall mean any other Person
who is, or who would be deemed to be, an "affiliate" or an "associate" of such
Person within the respective meanings ascribed to such terms in Rule 12b-2 of
the General Rules and Regulations under the Exchange Act, as such Rule is in
effect on the Declaration Date.

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

          (i)  which such Person or any of such Person's Affiliates has
     "beneficial ownership" of within the meaning of Rule 13d-3 of the General
     Rules and Regulations under the Exchange Act, as such Rule is in effect on
     the Declaration Date;

          (ii) which such Person or any of such Person's Affiliates has,
     directly or indirectly, the right to acquire (whether such right is
     exercisable immediately or after the passage of time) pursuant to any
     agreement, arrangement or understanding (whether or not in writing) or upon
     the exercise of conversion, exchange or other rights, warrants or options,
     or otherwise;

          (iii) which such Person or any of such Person's Affiliates has,
     directly or indirectly, the right to vote or dispose of, including pursuant
     to any agreement, arrangement or understanding (whether or not in writing);
     PROVIDED, HOWEVER, that a Person shall not be deemed the "Beneficial Owner"
     of, or to "beneficially own," any security for purposes of this Section
     1(d)(iii) as a result of an agreement, arrangement or understanding to vote
     such security if such agreement, arrangement or understanding: (A) 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 proxy solicitation rules and regulations promulgated under the
     Exchange Act or (B) is made in connection with, or is to otherwise
     participate in, a proxy or consent solicitation made, or to be made,
     pursuant to, and in accordance with, the applicable proxy solicitation
     rules and regulations promulgated under the Exchange Act, in either case
     described in clause (A) or (B) above, whether or not such agreement,
     arrangement or understanding is also then reportable by such Person on
     Schedule 13D under the Exchange Act (or any comparable or successor
     report); or

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          (iv) which are beneficially owned, directly or indirectly, by any
     other Person or any Affiliate thereof with which such Person or any of such
     Person's Affiliates has any agreement, arrangement or understanding
     (whether or not in writing), for the purpose of acquiring, holding, voting
     (except pursuant to a revocable proxy or in connection with a proxy or
     consent solicitation described in clause (A) or (B) of the proviso to
     Section 1(d)(iii) hereof) or disposing of any securities of the Company;

PROVIDED, HOWEVER, that for purposes of this Section 1(d) a Person shall not be
deemed the "Beneficial Owner" of, or to "beneficially own," (A) securities
tendered pursuant to a tender or exchange offer made by such Person or any of
such Person's Affiliates until such tendered securities are accepted for
purchase or exchange, (B) securities issuable upon exercise of Rights at any
time prior to the occurrence of a Common Stock Event, or (C) securities issuable
upon exercise of Rights which were held by a Person or its Affiliates prior to
the Distribution Date as long as such Person is not responsible for the
occurrence of the Common Stock Event giving rise to the Distribution Date; and
PROVIDED, FURTHER, HOWEVER, that nothing in this Section 1(d) shall cause a
Person engaged in business as an underwriter of securities to be the "Beneficial
Owner" of, or to "beneficially own," any securities acquired through such
Person's participation in good faith in a firm commitment underwriting until the
expiration of 40 days after the date of such acquisition.

     (e)  "Board" shall have the meaning set forth in the preamble to this
Agreement.

     (f)  "Business Day" shall mean any day other than a Saturday, Sunday or a
day on which banking institutions in The Commonwealth of Massachusetts or the
city in which the principal office of the Rights Agent is located are authorized
or obligated by law or executive order to close.

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

     (h)  "Closing Price" shall have the meaning set forth in Section 11(d)
hereof.

     (i)  "Common Stock" shall mean the Common Stock, $.01 par value per share,
of the Company, except that "Common Stock" when used with respect to any Person
other than the Company shall mean either (i) the common stock (or other capital
stock or shares of beneficial interest) of such Person with the greatest voting
power, or (ii) the equity securities or other equity interests having power to
control or direct the management and affairs of such Person, or if such Person
is a Subsidiary of another Person, the Person (A) who ultimately controls such
Person that is the Subsidiary and (B) which has outstanding such common stock
(or such other capital stock, equity securities or interests).

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     (j)  "Common Stock Equivalents" shall have the meaning set forth in Section
11(a)(iii) hereof.

     (k)  "Common Stock Event" shall mean the occurrence of any event described
in (i) Section 11(a)(ii) hereof or (ii) clause (a), (b) or (c) of the first
sentence of Section 13 hereof.

     (l)  "Company" shall have the meaning set forth in the preamble to this
Agreement.

     (m)  "Current Market Price" shall have the meaning set forth in Section
11(d) hereof.

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

     (o)  "Declaration Date" shall have the meaning set forth in the preamble to
this Agreement.

     (p)  "Directors" shall mean the members of the Board.

     (q)  "Disqualified Transferee" shall mean any Person who is a direct or
indirect transferee of any Right from an Acquiring Person or an Affiliate of an
Acquiring Person and became such a transferee (x) after the occurrence of a
Common Stock Event or (y) prior to or concurrently with the Acquiring Person
becoming such and received such Right pursuant to a transfer (whether or not for
value) (A) from the Acquiring Person to holders of its Common Stock or other
equity securities or to any Person with whom the Acquiring Person has any
continuing agreement, arrangement, or understanding (whether or not in writing)
regarding the transferred Right, or (B) which a majority of the Board reasonably
determines is part of a plan, arrangement, or understanding (whether or not in
writing) which has as a primary purpose or effect, the avoidance of Section 7(e)
hereof.

     (r)  "Distribution Date" shall mean the date which is the later of (A) the
earlier of (x) the 10th Business Day following the Stock Acquisition Date or (y)
the 10th Business Day following the Offer Commencement Date or (B) such
specified or unspecified date thereafter which is on or after the Dividend
Record Date, as may be determined by a majority of the Board.

     (s)  "Dividend Record Date" shall have the meaning set forth in the
preamble to this Agreement.

     (t)  "Equivalent Preferred Stock" shall have the meaning set forth in
Section 11(b) hereof.

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

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     (v)  "Exchange Act" shall mean the Securities Exchange Act of 1934 (or any
successor act), as in effect on the Declaration Date.

     (w)  "Exchange Ratio" shall have the meaning set forth in Section 24(a)
hereof.

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

     (y)  "Offer Commencement Date" shall mean the date of the commencement by
any Person, other than (i) the Company, (ii) a Subsidiary of the Company, (iii)
any employee benefit plan of the Company or of any Subsidiary of the Company or
(iv) any Person organized, appointed, or established by the Company or such
Subsidiary pursuant to the terms of any such plan, of a tender or exchange offer
(including when such offer is first published or sent or given within the
meaning of Rule 14d-2(a) of the General Rules and Regulations under the Exchange
Act) if upon consummation thereof such Person and Affiliates thereof would be
the Beneficial Owner of 15.0% or more of the then outstanding shares of Common
Stock (including any such date which is after the date of this Agreement and
prior to the issuance of the Rights on the Dividend Record Date or thereafter).

     (z)  "Officers' Certificate" has the meaning set forth in Section 20(b)
hereof.

     (aa) "Other Consideration" has the meaning set forth in Section 6(a)
hereof.

     (bb) "Person" shall mean a company, corporation, association, partnership,
joint venture, limited liability company, trust, estate, organization, business,
entity or individual.

     (cc) "Preferred Stock" shall mean the Series A Preferred Stock, par value
$.01 per share, of the Company, having the rights and preferences set forth in
the form of Certificate of Designation attached hereto as Exhibit A.

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

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

     (ff) "Rights" shall have the meaning set forth in the preamble to this
Agreement.

     (gg) "Rights Agent" shall have the meaning set forth in the preamble of
this Agreement subject to the appointment of a successor Rights Agent pursuant
to Section 21 hereof.

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

     (ii) "Stock Acquisition Date" shall mean the later of (i) the date of the
first public announcement by an Acquiring Person or the Company that an
Acquiring Person has become

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such (including the first date on which any filing with any governmental
authority disclosing that an Acquiring Person has become such becomes available
to the public), or (ii) the date on which an executive officer of the Company
has actual knowledge that an Acquiring Person has become such.

     (jj) "Subsidiary" shall mean, as of any date, any Person of which the
Company (or other specified Person) owns directly, or indirectly through a
Subsidiary or Subsidiaries, at least a majority of the outstanding capital stock
(or other shares of beneficial interest) entitled to vote generally, or holds
directly, or indirectly through a Subsidiary or Subsidiaries, at least a
majority of partnership or similar interests, or is a general partner, or of
which the Company (or other specified Person) owns voting securities sufficient
to elect at least a majority of the directors of such Person.

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

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

     (mm) "Trading Day" shall mean a day on which the principal national
securities exchange on which such security is listed or admitted to trading is
open for the transaction of business or, if such security is not listed or
admitted to trading on any national securities exchange, a day which is a
Business Day.

Section 2.  APPOINTMENT OF RIGHTS AGENT.

     The Company hereby appoints the Rights Agent to act as agent for the
Company and the holders of the Rights (who, in accordance with Section 3 hereof,
shall prior to the Distribution Date also be the holders of the Common Stock) in
accordance with the terms and conditions hereof, and the Rights Agent hereby
accepts such appointment. The Company may from time to time, upon prior written
notice to the Rights Agent, appoint such Co-Rights Agents as it may deem
necessary or desirable, upon ten (10) days' prior written notice to the Rights
Agent. The Rights Agent shall have no duty to supervise, and in no event be
liable for, the acts or omissions of any such Co-Rights Agent.

Section 3.  ISSUE OF RIGHTS CERTIFICATES.

     (a)  Until the Distribution Date, (i) the Rights will be evidenced (subject
to the provisions of Section 3(b) hereof) by the certificates representing
shares of Common Stock registered in the names of the holders of the Common
Stock (which certificates shall be deemed also to be certificates for the
associated Rights) and not by separate rights certificates, and (ii) the Rights
will be transferable only in connection with the transfer of the associated
shares of Common Stock. As soon as practicable after the Distribution Date, the
Rights Agent will send by first-class, insured, postage prepaid mail, to each
record holder of the Common

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Stock as of the Close of Business on the Distribution Date, at the address of
such holder shown on the stock transfer records of the Company, one or more
rights certificates, in substantially the form of Exhibit B hereto (the "Rights
Certificates"), evidencing in the aggregate that number of Rights to which such
holder is entitled in accordance with the provisions of this Agreement. As of
and after the Distribution Date, the Rights will be evidenced solely by such
Rights Certificates. The Rights are exercisable only in accordance with the
provisions of Section 7 hereof and are redeemable only in accordance with
Section 23 hereof.

     (b)  As soon as practicable after the Dividend Record Date, the Company
will cause a copy of a Summary of Rights, in substantially the form attached
hereto as Exhibit C (the "Summary of Rights"), to be sent by first-class,
postage prepaid mail, to each record holder of the Common Stock as of the Close
of Business on the Dividend Record Date, at the address of such holder shown on
the stock transfer records of the Company. With respect to certificates for the
Common Stock outstanding as of the Dividend Record Date, until the Distribution
Date, the Rights associated with the shares of Common Stock represented by such
certificates will be evidenced by such certificates for the Common Stock and the
registered holders of the Common Stock shall also be the registered holders of
the associated Rights. Until the Distribution Date (or the earlier redemption,
expiration or termination of the Rights), the surrender for transfer of any of
the certificates representing shares of the Common Stock outstanding on the
Dividend Record Date, with or without a copy of the Summary of Rights, shall
also constitute the transfer of the Rights associated with the Common Stock
represented by such certificate.

     (c)  Rights shall be issued in respect of all shares of Common Stock issued
(whether originally issued or delivered from the Company's treasury) after the
Dividend Record Date but prior to the earliest of (i) the Distribution Date,
(ii) the Expiration Date, or (iii) the redemption of the Rights. Certificates
representing such shares of Common Stock and certificates issued on transfer of
such shares of Common Stock, with or without a copy of the Summary of Rights,
prior to the Distribution Date (or earlier expiration or redemption of the
Rights) shall be deemed also to be certificates for the associated Rights, and
commencing as soon as reasonably practicable following the Dividend Record Date
shall bear the following legend (or a legend substantially in the form thereof):

     This certificate also evidences and entitles the holder to Rights set forth
     in a Rights Agreement between the issuer and Fleet National Bank, as Rights
     Agent (the "Rights Agent"), dated as of March 28, 2000 (the "Rights
     Agreement"), the terms of which are incorporated herein by reference and a
     copy of which is on file at the principal offices of both the issuer and
     the Rights Agent. The Rights Agent will mail to the registered holder of
     this certificate a copy of the Rights Agreement, as in effect on the date
     of mailing, without charge upon written request. Under certain
     circumstances set forth in the Rights Agreement, such Rights will be
     evidenced by separate certificates and will no longer be evidenced by this
     certificate. Under certain circumstances set forth in the Rights Agreement,
     Rights issued to, or held by any Person who is, was or becomes, or

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     acquires shares from, an Acquiring Person or any Affiliate of an Acquiring
     Person (as each such term is defined in the Rights Agreement and generally
     relating to the ownership or purchase of large shareholdings), whether
     currently held by or on behalf of such Person or Affiliate or by certain
     subsequent holders, may become null and void.

Until the Distribution Date or the earlier redemption, expiration or termination
of the Rights, the Rights associated with the Common Stock shall be evidenced by
the Common Stock certificates alone and the registered holders of Common Stock
shall also be the registered holders of the associated Rights, and the surrender
for transfer of any of such certificates shall also constitute the transfer of
the Rights associated with the Common Stock represented by such certificate.

Section 4.  FORM OF RIGHTS CERTIFICATES.

     (a)  The Rights Certificates (and the form of assignment and the form of
exercise notice and certificate to be printed on the reverse thereof) shall each
be substantially in the form set forth in Exhibit B hereto and may have such
marks of identification or designation and such legends, summaries or
endorsements printed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Agreement, or as may be required to
comply with any applicable law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which the Rights
may from time to time be listed or traded, or to conform to usage. Subject to
the provisions of Sections 11 and 22 hereof, the Rights Certificates, whenever
distributed, shall be dated as of the Dividend Record Date (or, if the shares
pursuant to which the Rights are attached are issued thereafter, such date of
issuance), shall include the date of countersignature and on their face shall
entitle the holders thereof to purchase such number of one one-thousandths of a
share of Preferred Stock as shall be set forth therein at the Purchase Price (as
hereinafter defined), but the amount and type of securities issuable upon the
exercise of each Right and the Purchase Price shall be subject to adjustment as
provided herein.

     (b)  Any Rights Certificate issued pursuant to Section 3(a) or 22 hereof
that represents Rights beneficially owned by (i) any Acquiring Person or any
Affiliate of an Acquiring Person, or (ii) any Disqualified Transferee, and any
other Rights Certificate issued pursuant to Section 6 or 11 hereof upon the
transfer, exchange, replacement, or adjustment of any such Rights Certificate,
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
     (which includes both affiliates and associates) of an Acquiring Person (as
     each such term is defined in the Rights Agreement between the issuer and
     Fleet National Bank, as Rights Agent, dated as of March 28, 2000 (the
     "Rights Agreement")). Accordingly, this Rights Certificate and the Rights
     represented hereby may become null and void in the circumstances

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     specified in Section 7(e) of the Rights Agreement. The Rights Agent will
     mail to the registered holder of this certificate a copy of the Rights
     Agreement, as in effect on the date of such mailing, without charge upon
     written request.

Section 5.  COUNTERSIGNATURE AND REGISTRATION.

     The Rights Certificates shall be executed on behalf of the Company by its
Chairman of the Board, President, or any Vice President, either manually or by
facsimile signature, and shall have affixed thereto the Company's seal or
facsimile thereof which shall be attested by the Treasurer or an Assistant
Treasurer of the Company, either manually or by facsimile signature. The Rights
Certificates shall be countersigned, either manually or by facsimile signature,
by the Rights Agent and shall not be valid for any purpose unless so
countersigned. In case any officer of the Company who shall have signed any of
the 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, may be countersigned by the Rights
Agent, issued, and delivered 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. 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 Agreement any such person was not
such an officer.

     Following the Distribution Date, the Rights Agent shall keep or cause to be
kept, at the office of the Rights Agent 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 countersignature thereof by the Rights Agent.

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 earlier of the Close of Business on the Expiration Date or the redemption
of the Rights, any Rights Certificate 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 one one-thousandths of a share of
Preferred Stock (or, following a Common Stock Event, Common Stock and/or such
other securities, cash, or other assets as shall be issuable in respect of the
Rights in accordance with the terms of this Agreement (such other securities,
cash or other assets being referred to herein as "Other Consideration")) as the
Rights Certificate surrendered then entitled such holder (or former holder in
the case of a transfer) to purchase. Any registered holder desiring to transfer,
split up, combine or exchange any Rights Certificate shall make such request in
writing delivered to the Rights Agent, and shall surrender the Rights
Certificate to

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be transferred, split up, combined, or exchanged at the office of the Rights
Agent designated for such purpose, accompanied by a signature guarantee and such
other documentation as the Rights Agent may reasonably request. 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 from whom the Rights evidenced by such Rights Certificate are to be
transferred (or the Beneficial Owner to whom such Rights are to be transferred)
or Affiliates thereof as the Company shall reasonably request. Thereupon,
subject to Sections 4(b), 7(e) and 14 hereof, the Company shall execute and the
Rights Agent shall 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 by the holders of Rights 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 which the
Company is not required to pay in accordance with Section 9(d) hereof.

     (b)  Upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation of
a Rights Certificate, and, in case of loss, theft or destruction, the receipt of
indemnity or security satisfactory to them, and upon 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, accompanied by a signature guarantee and such other documentation
as the Rights Agent may reasonably request, the Company will execute and deliver
a new Rights Certificate of like tenor to the Rights Agent for countersignature
and delivery to the registered owner in lieu of the Rights Certificate so lost,
stolen, destroyed, or mutilated.

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

     (a)  Except as otherwise provided herein, the registered holder of any
Rights Certificate may exercise the Rights evidenced thereby in whole or in part
at any time from and after the Distribution Date and at or prior to the Close of
Business on March 28, 2010 (the "Expiration Date") or the earlier redemption of
the Rights. Immediately after the Close of Business on the Expiration Date (or
the earlier redemption of the Rights), all Rights shall be extinguished and all
Rights Certificates shall become null and void. To exercise Rights, the
registered holder of the Rights Certificate evidencing such Rights shall
surrender such Rights Certificate, with the form of election to purchase on the
reverse side thereof and the certificate contained therein duly executed, to the
Rights Agent at the office of the Rights Agent designated for such purpose,
accompanied by a signature guarantee and such other documentation as the Rights
Agent may reasonably request, together with payment in cash, only if by
electronic or wire transfer, or by certified check or bank check, of the
Purchase Price with respect to the total number of one one-thousandths of a
share of Preferred Stock (or, after a Common Stock Event, shares and/or similar
units of Common Stock or Other

                                      -10-

<PAGE>   13

Consideration) as to which the Rights are exercised (which payment shall include
any additional amount payable by such Person in accordance with Section 9(d)
hereof). The Rights Agent shall promptly deliver to the Company all payments of
the Purchase Price received in respect of Rights Certificates accepted for
exercise.

     (b)  The purchase price for each one one-thousandth of a share of Preferred
Stock issuable pursuant to the exercise of a Right (the "Purchase Price") shall
initially be $90.00, shall be subject to adjustment as provided in Section 11
hereof, and shall be payable in lawful money of the United States of America.

     (c)  Upon receipt of a Rights Certificate representing the Rights, with the
form of election to purchase set forth on the reverse side thereof and the
certificate contained therein duly executed, accompanied by payment of the
Purchase Price, with respect to each Right so exercised, the Rights Agent,
subject to Sections 7(e), 11(a)(iii) and 20(k) hereof, shall thereupon promptly
(i) requisition from any transfer agent of the Preferred Stock (or Common Stock,
as the case may be) (or from the Company if there shall be no such transfer
agent, or make available if the Rights Agent is such transfer agent)
certificates for the total number of one one-thousandths of a share of Preferred
Stock (or Common Stock, as the case may be) to be purchased and the Company
hereby irrevocably authorizes such transfer agent to comply with any such
request, (ii) after receipt of such certificates, 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 in writing by such holder,
and (iii) when appropriate, requisition from the Company the amount of cash to
be paid in lieu of issuance of a fractional share in accordance with Section 14
hereof and after receipt promptly deliver such cash to or upon the order of the
registered holder of such Rights Certificate. After the occurrence of a Common
Stock Event, the Company shall make all necessary arrangements so that any Other
Consideration then deliverable in respect of the Rights is available for
distribution by the Rights Agent. For purposes of this Section 7, the Rights
Agent shall be entitled to rely, and shall be protected in relying, on an
Officers' Certificate from the Company to the effect that the Distribution Date
has occurred.

     (d)  Subject to Sections 4(b), 7(e) and 14 hereof, in case the registered
holder of any Rights Certificate shall exercise less than all the Rights
evidenced thereby, a new Rights Certificate evidencing Rights equivalent to the
Rights remaining unexercised shall be executed and delivered by the Company to
the Rights Agent and countersigned and delivered by the Rights Agent to the
registered holder of such Rights Certificate or to such holder's duly authorized
assigns.

     (e)  Notwithstanding anything in this Agreement to the contrary, from and
after the first occurrence of a Common Stock Event, any Rights beneficially
owned by (i) an Acquiring Person or an Affiliate of an Acquiring Person, or (ii)
a Disqualified 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

                                      -11-

<PAGE>   14

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
the Company shall have no liability to any holder of Rights Certificates or
other Person and none of the terms of this Agreement or the Rights shall be
deemed to be waived with respect to such holder or other Person as a result of
any failure by the Company to make any determinations with respect to an
Acquiring Person or any Affiliate of an Acquiring Person or Disqualified
Transferees hereunder or any failure to have a legend placed on any Rights
Certificate in accordance with Section 4(b) hereof or on any Common Stock
certificate in accordance with Section 3(c) hereof.

     (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 holder of any Rights Certificate upon the occurrence of any
purported exercise thereof unless such 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
from whom the Rights evidenced by such Rights Certificate are to be transferred
(or the Beneficial Owner to whom such Rights are to be transferred) or
Affiliates thereof as the Company shall reasonably request.

Section 8.  CANCELLATION AND DESTRUCTION OF RIGHTS CERTIFICATES.

     All Rights Certificates surrendered for the purpose of and accepted for
exercise, or surrendered for the purpose of redemption, transfer, split up,
combination or exchange shall, if surrendered to the Company or to any of its
agents (other than the Rights Agent), be delivered to the Rights Agent for
cancellation or in canceled form, or, if surrendered to the Rights Agent, shall
be canceled by it, and no Rights Certificates shall be issued in lieu thereof
except as expressly permitted by any of the provisions of this Agreement. The
Company shall deliver to the Rights Agent for cancellation and retirement, and
the Rights Agent shall so cancel and retire, any other Rights Certificates
purchased or retired by the Company otherwise than upon the exercise thereof.
The Rights Agent shall deliver all canceled Rights Certificates to the Company,
or may, at the written request of the Company, but shall not be required to,
destroy such canceled Rights Certificates, and in such case shall deliver a
certificate of destruction thereof to the Company.

Section 9.  RESERVATION AND AVAILABILITY OF SHARES OF PREFERRED STOCK; OTHER
            COVENANTS.

     (a)  The Company covenants and agrees that on and after the Distribution
Date, it shall use reasonable efforts to cause to be reserved and kept available
out of its authorized and unissued shares of Preferred Stock (or, following the
occurrence of a Common Stock Event, out of its authorized and unissued shares of
Common Stock and/or Other Consideration, or out of its authorized and issued
shares held in its treasury), the number of shares of Preferred Stock (or,
following a Common Stock Event, shares of Common Stock and/or Other

                                      -12-

<PAGE>   15

Consideration) that, except as provided in Section 11(a)(iii) hereof, would then
be sufficient to permit the exercise in full of all outstanding Rights;
PROVIDED, HOWEVER, that the reservation of such shares shall be subject and
subordinate to any other reservation of such shares made by the Company at any
time for any lawful purpose; PROVIDED, FURTHER, HOWEVER, that in no event shall
such failure to so reserve shares affect the rights of any holder of Rights
hereunder.

     (b)  The Company covenants and agrees that on and after the Distribution
Date so long as the Preferred Stock (or, following a Common Stock Event, shares
and/or similar units of Common Stock and/or Other Consideration) issuable upon
the exercise of Rights may be listed on any national securities exchange, the
Company shall use its best efforts to cause all shares (or similar units)
reserved for such issuance to be listed on such exchange upon official notice of
issuance upon such exercise.

     (c)  The Company covenants and agrees that it shall take all such action as
may be necessary to ensure that each one one-thousandth of a share of Preferred
Stock (or, following a Common Stock Event, each share and/or similar unit of
Common Stock or Other Consideration) delivered upon exercise of Rights shall, at
the time of delivery of the certificates for such shares (or units), subject to
payment in full of the Purchase Price, be duly and validly authorized and issued
and fully paid and nonassessable.

     (d)  The Company covenants and agrees that it shall pay when due and
payable any and all federal and state transfer taxes and similar charges which
may be payable in respect of the issuance or delivery of the Rights Certificates
or of any shares of Preferred Stock (or, following the occurrence of a Common
Stock Event, each share and/or similar unit of Common Stock or Other
Consideration) upon the exercise of Rights; PROVIDED, HOWEVER, that the Company
shall not be required to pay any transfer tax which may be payable in respect of
any transfer involved in the transfer or delivery of Rights Certificates or in
the issuance or delivery of certificates for any shares of Preferred Stock (or,
following the occurrence of a Common Stock Event, each share and/or similar unit
of Common Stock or Other Consideration) in a name other than that of the
registered holder of the Rights Certificate evidencing Rights surrendered for
exercise or to issue or deliver any certificates for any shares of Preferred
Stock (and, following the occurrence of a Common Stock Event, any shares and/or
similar units of Common Stock or Other Consideration) 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 thereof) or until
it has been established to the Company's satisfaction that no such tax is due.

     (e)  The Company shall use its best efforts (i) to file, as soon as
practicable following the earliest date after the first occurrence of a Common
Stock Event on which the consideration to be delivered by the Company upon
exercise of the Rights has been determined in accordance with this Agreement, or
as soon as is required by law following the Distribution Date, as the case may
be, a registration statement under the Act, with respect to the securities
issuable upon exercise of the Rights on an appropriate form, (ii) to cause such
registration

                                      -13-

<PAGE>   16

statement to become effective as soon as practicable after such filing, and
(iii) to cause such registration statement to remain effective (with a
prospectus at all times meeting the requirements of the Act) until the earlier
of (A) the date as of which the Rights are no longer exercisable for such
securities, or (B) the Expiration Date or earlier redemption of the Rights. 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 of the
United States in connection with the exercisability of the Rights. The Company
may temporarily suspend, for a period of time not to exceed ninety (90) days
after the date set forth in clause (i) of the first sentence of this Section
9(e), the exercisability of the Rights in order to prepare and file such
registration statement or to permit it to become effective. Upon any such
suspension, the Company shall issue a public announcement stating that the
exercisability of the Rights has been temporarily suspended. The Company shall
thereafter issue a public announcement at such time as the suspension is no
longer in effect. 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.

Section 10.  PREFERRED STOCK RECORD DATE; ETC.

     Each Person in whose name any certificate for any shares of Preferred Stock
(or, following the occurrence of a Common Stock Event, shares and/or similar
units of Common Stock or Other Consideration) is issued upon the exercise of
Rights shall for all purposes be deemed to have become the holder of record of
such shares of Preferred Stock (or such shares and similar units of Common Stock
and/or Other Consideration, as the case may be) represented thereby, and such
certificate shall be dated the date which is the later of (i) the date upon
which the Rights Certificate evidencing such Rights was duly surrendered, or
(ii) the date upon which payment of the Purchase Price (and any applicable
transfer taxes) in respect thereof was made; PROVIDED, HOWEVER, that if such
date is a date upon which the relevant transfer books of the Company are closed,
such Person shall be deemed to have become the record holder of such shares (or
Other Consideration) on, and such certificate shall be dated, the next
succeeding Business Day on which such transfer books of the Company are open;
PROVIDED, FURTHER, that the Company covenants and agrees that it shall not close
such transfer books for a period exceeding ten consecutive days. Prior to the
exercise of the Rights evidenced thereby (which shall be deemed to have occurred
on the date such certificate for shares and/or similar units of Preferred Stock,
Common Stock or Other Consideration shall be dated in accordance with this
Section 10), the holder of a Rights Certificate, as such, shall not be entitled
to any rights of a security holder of the Company with respect to the shares of
Preferred Stock or Common Stock (and/or such shares or similar units of Common
Stock or Other Consideration) 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 expressly
provided herein.

Section 11.  ANTIDILUTION ADJUSTMENTS.

                                      -14-

<PAGE>   17

     The Purchase Price and the number and kind 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 that the Company shall at any time after the
     Declaration Date (A) declare and pay a dividend on the Preferred Stock
     payable in shares of Preferred Stock, (B) subdivide the outstanding
     Preferred Stock, (C) combine the outstanding Preferred Stock into a smaller
     number of shares, or (D) issue, change, or alter any of its shares of
     capital stock in a reclassification or recapitalization (including any such
     reclassification in connection with a consolidation or merger in which the
     Company is the continuing or surviving Person), except as otherwise
     provided in this Section 11(a) and Section 7(e) hereof, then, and in each
     such case, the Purchase Price in effect at the time of the record date for
     such dividend or the effective time of such subdivision, combination,
     reclassification or recapitalization, and the number and kind of shares of
     capital stock issuable upon exercise of the Rights at such time, shall be
     proportionately adjusted so that the holder of any Right exercised after
     such time shall be entitled to receive the aggregate number and kind of
     shares of Preferred Stock or other capital stock which, if such Right had
     been exercised immediately prior to such time at the Purchase Price then in
     effect and at a time when the transfer books for the Preferred Stock (or
     other capital stock) of the Company were open, such holder would have owned
     upon such exercise and been entitled to receive by virtue of such dividend,
     subdivision, combination, reclassification or recapitalization. If an event
     occurs which would require an adjustment under both this Section 11(a)(i)
     and Section 11(a)(ii) hereof, the adjustment provided 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) hereof.

     (ii) In the event

               (A) any Person shall at any time after the Declaration Date
          become an Acquiring Person; or

               (B) any Acquiring Person or any Affiliate of any Acquiring
          Person, at any time after the Declaration Date, 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 the Common Stock of the
          Company shall remain outstanding and no shares thereof shall be
          changed or otherwise transformed into stock or other securities of any
          other Person or the Company or cash or any other property, (2) in one
          or more transactions, transfer any assets to the Company in exchange
          (in whole or in part) for shares of any class of its equity securities
          or for securities exercisable for or convertible into shares of any
          such class or otherwise obtain from the Company, with or without
          consideration, any additional shares of any such class or securities
          exercisable for or convertible into shares of any such

                                      -15-

<PAGE>   18

          class (other than as part of a pro rata distribution to all holders of
          such class), (3) sell, purchase, lease, exchange, mortgage, pledge,
          transfer or otherwise dispose (in one transaction or a series of
          transactions) to, from or with the Company or any of the Company's
          Subsidiaries, assets with an aggregate fair market value in excess of
          25% of the assets of the Company and its Subsidiaries determined on a
          consolidated basis on terms and conditions less favorable to the
          Company than the Company would be able to obtain through arm's-length
          negotiation with an unaffiliated third party, (4) receive any
          compensation from the Company or any of the Company's Subsidiaries
          other than compensation as a director of the Company or for full-time
          employment as a regular employee at rates in accordance with the
          Company's (or such Subsidiary's) past practices, (5) receive the
          benefit (except proportionately as a stockholder), of any loans,
          advances, guarantees, pledges or other financial assistance provided
          by the Company or any of its Subsidiaries on terms and conditions less
          favorable to the Company (or such Subsidiary) than the Company would
          be able to obtain through arm's-length negotiation with an
          unaffiliated third party or (6) commence a tender or exchange offer
          for securities of the Company; or

               (C) during such time as there is an Acquiring Person at any time
          after the Declaration Date, there shall be any reclassification of
          securities (including any combination thereof), or recapitalization of
          the Company, or any merger or consolidation of the Company with any of
          its Subsidiaries (whether or not with or into or otherwise involving
          an Acquiring Person or any Affiliate of an Acquiring Person), or any
          repurchase by the Company or any of its Subsidiaries of shares of the
          Common Stock of the Company, or any other class or series of
          securities issued by the Company, which reclassification,
          recapitalization, merger, consolidation or repurchase is effected at a
          time when a majority of the Board consists of persons who are the
          Acquiring Person or its Affiliates, or nominees or designees of any
          thereof, 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 or securities exercisable for or
          convertible into any class of equity securities of the Company or any
          of its Subsidiaries which is directly or indirectly owned by an
          Acquiring Person or any Affiliate of an Acquiring Person

     then, in each such case, upon the Close of Business 10 Business Days after
     the occurrence of such event, proper provision shall be made so that each
     holder of a Right, except as provided in Section 7(e) hereof, shall
     thereafter have the right to receive, upon exercise thereof at the Purchase
     Price in effect at the time of exercise in accordance with the terms of
     this Agreement, in lieu of a number of one one-

                                      -16-

<PAGE>   19

     thousandths of a share of Preferred Stock, such number of shares of Common
     Stock of the Company as shall equal the result obtained by (x) multiplying
     an amount equal to the then current Purchase Price by an amount equal to
     the number of one one-thousandths of a share of Preferred Stock for which a
     Right was or would have been exercisable immediately prior to the first
     occurrence of any such event whether or not such Right was then
     exercisable, and (y) dividing that product by 50% of the Current Market
     Price per share of the Common Stock of the Company (as defined in Section
     11(d) hereof) determined as of the date of such first occurrence.

          (iii) In lieu of issuing whole or fractional shares of Common Stock in
     accordance with Section 7(c) hereof, the Company shall (i) in the event
     that the number of shares of Common Stock which are authorized by the
     Company's charter 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 in accordance with Section 7(c) hereof, or
     (ii) if a majority of the Board determines that it would be appropriate and
     not contrary to the interests of the holders of Rights (other than any
     Acquiring Person or Disqualified Transferee or any Affiliate of the
     Acquiring Person or Disqualified Transferee), (A) determine an amount, if
     any, (the "Excess Amount") equal to the excess of (1) the value (the
     "Current Value") of the whole or fractional shares of Preferred Stock (or
     Common Stock) issuable upon the exercise of a Right in accordance with
     Section 7(c) hereof, over (2) the Purchase Price, and (B) with respect to
     each Right, (subject to Section 7(e) hereof) make adequate provision to
     substitute for such whole or fractional shares of Preferred Stock (or
     Common Stock), upon payment of the applicable Purchase Price, (1) cash, (2)
     a reduction in the Purchase Price, (3) Common Stock or other equity
     securities of the Company (including, without limitation, shares or units
     of Preferred Stock or preferred stock which the Board has deemed in good
     faith to have the same value as a share of Common Stock (such shares of
     preferred stock being referred to herein as "Common Stock Equivalents")),
     (4) debt securities of the Company, (5) other assets, or (6) any
     combination of the foregoing (which would include the additional
     consideration provided to any holder by reducing the Purchase Price) having
     an aggregate value equal to the Current Value, where such aggregate value
     has been determined by the Board; PROVIDED, HOWEVER, subject to the
     provisions of Section 9(e) hereof, that if the Company shall not have made
     adequate provision to deliver value pursuant to clause (B) above within 30
     days following the Close of Business 10 Business Days after the first
     occurrence of a Common Stock Event described in Section 11(a)(ii) hereof,
     then the Company shall be obligated to deliver, upon the surrender for
     exercise of a Right and without requiring payment of the Purchase Price,
     whole or fractional shares of Preferred Stock (or Common Stock) (to the
     extent available) and then, if necessary, cash, securities, and/or assets
     which in the aggregate are equal to the Excess Amount. If the Board shall
     determine in good faith that it is likely that sufficient additional shares
     of Common Stock or Common Stock Equivalents could be authorized for
     issuance upon exercise in full of the Rights, the 30-day period set forth
     above may be extended to the extent necessary, but not more than 90 days
     following the Close of Business 10 Business Days after the first occurrence
     of such a Common Stock Event (such 30 day period) as it may be extended to
     90 days, is referred to herein as the "Substitution Period"). To the extent
     that the

                                      -17-
<PAGE>   20

     Company determines that some action is to be taken pursuant to the
     preceding provisions of this Section 11(a)(iii), the Company (x) shall
     provide, subject to Section 7(e) hereof, that (except as to the form of
     consideration which shall be determined as appropriate by a majority of the
     Board) such action shall apply uniformly to all outstanding Rights which
     shall not have become null and void, 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 provisions 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. The Company shall thereafter
     issue a public announcement at such time as the suspension is no longer in
     effect. For purposes of this Section 11(a)(iii), the value of the Common
     Stock issuable upon exercise of a Right in accordance with Section 7(c)
     hereof shall be the Current Market Price per share of the Common Stock (as
     determined pursuant to Section 11(d) hereof) on the Close of Business 10
     Business Days after the date of the first occurrence of such a Common Stock
     Event and the value of any Common Stock Equivalent shall be deemed to be
     equal to the Current Market Price per share of the Common Stock on such
     date.

     (b)  In the event the Company shall, after the Dividend Record Date, fix a
record date for the issuance of any options, warrants, or other rights to all
holders of Preferred Stock entitling them (for a period expiring within 45
calendar days after such record date) to subscribe for or purchase (i) Preferred
Stock or (ii) shares having the same rights, privileges and preferences as the
shares of any number of one one-thousandths of a share of Preferred Stock
("Equivalent Preferred Stock") or (iii) securities convertible into Preferred
Stock or Equivalent Preferred Stock at a price per share of Preferred Stock or
Equivalent Preferred Stock (or having a conversion price per share of Preferred
Stock or Equivalent Preferred Stock, if a security is convertible into Preferred
Stock or Equivalent Preferred Stock) less than the Current Market Price per
share of Preferred Stock (determined in accordance with Section 11(d) hereof)
determined as of 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 shares of Preferred Stock outstanding on such record date
plus the number of shares of Preferred Stock and/or Equivalent Preferred Stock
which the aggregate minimum offering price of the total number of shares of one
one-thousandths of a share of Preferred Stock and/or Equivalent Preferred Stock
so to be offered (and/or the aggregate minimum conversion price of such
convertible securities so to be offered) would purchase at such Current Market
Price, and the denominator of which shall be the number of shares of Preferred
Stock outstanding on such record date plus the maximum number of additional
shares of Preferred Stock and/or Equivalent Preferred Stock to be offered for
subscription or purchase (or the maximum number of shares into which such
convertible securities so to be offered are convertible). In case such
subscription price may be paid by delivery of consideration part or all of which
shall be in a form other than cash, for purposes of this Section 11(b) the value
of such consideration

                                      -18-

<PAGE>   21

shall be the fair market value thereof as determined in good faith by the Board
(which determination shall be described in an Officers' Certificate filed with
the Rights Agent). Shares 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 options, warrants or other rights 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 (subject,
however, to such other adjustments as are provided herein).

     (c)  In the event that the Company shall, after the Dividend Record Date,
fix a record date for the making of a distribution to all holders of Preferred
Stock (including any such distribution made in connection with a consolidation
or merger in which the Company is the surviving or continuing Person) of
evidences of indebtedness, cash (other than cash dividends paid out of the
earnings or retained earnings of the Company and its Subsidiaries determined on
a consolidated basis in accordance with generally accepted accounting principles
consistently applied), other property (other than a dividend payable in a number
of one one-thousandths of a share of Preferred Stock, but including any dividend
payable in capital stock other than Preferred Stock), or subscription rights or
warrants (excluding those referred to in Section 11(b) hereof), the Purchase
Price to be in effect after such record date shall be determined by multiplying
the Purchase Price in effect immediately prior to such record date by a
fraction, of which the numerator shall be (i) the Current Market Price per share
of Preferred Stock (as defined in Section 11(d) hereof) determined as of such
record date, LESS (ii) the sum of (A) that portion of cash plus (B) the fair
market value, as determined in good faith by the Board (which determination
shall be described in an Officers' Certificate filed with the Rights Agent) of
that portion of such evidences of indebtedness, such other property, and/or such
subscription rights or warrants applicable to one share of Preferred Stock and
of which the denominator shall be such Current Market Price per share of the
Preferred Stock. Such adjustments shall be made successively whenever such a
record date is fixed; and in the event 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 (subject, however, to such
other adjustments as are provided herein).

     (d)  For purposes of any computation pursuant to Section 11(a)(iii) hereof,
the "Current Market Price" per share (or unit) of any security on any date shall
be deemed to be the average of the daily Closing Price of such security for the
10 consecutive Trading Days immediately after such date, and for the purpose of
any other computation hereunder, the "Current Market Price" per share (or unit)
of any security on any date shall be deemed to be the average of the daily
Closing Price of such security for the 20 consecutive Trading Days immediately
prior to such date; PROVIDED, HOWEVER, that in the event that the Current Market
Price per share of such security is determined during a period following the
announcement by the issuer of such security of (i) a dividend or distribution on
such security payable in shares (or units) of such security or securities
convertible into shares (or units) of such security, or (ii) any subdivision,
combination or reclassification of such security, and prior to the

                                      -19-

<PAGE>   22

expiration of such 10 Trading Days or 20 Trading Days after (A) the ex-dividend
date for such dividend or distribution, or (B) the record date for such
subdivision, combination or reclassification, as the case may be, then, and in
each such case, the "Current Market Price" shall be the Closing Price of such
security on the last day of such respective 10 Trading Day or 20 Trading Day
period. For purposes of this Agreement, the "Closing Price" of any security on
any day shall be the last sale price, regular way, with respect to shares (or
units) of such security, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, with respect to such
security, in either case as reported in the principal consolidated transaction
reporting system with respect to securities listed or admitted to trading on the
New York Stock Exchange; or, if such security is not listed or admitted to
trading on the New York Stock Exchange, as reported in the principal
consolidated transaction reporting system with respect to securities listed on
the principal national securities exchange on which such security is listed or
admitted to trading; or, if such security is not so listed or admitted to
trading, the last quoted sale price with respect to shares (or units) of such
security, or, if not so quoted, the average of the high bid and low asked prices
in the over-the-counter market with respect to shares (or units) of such
security, as reported by the National Association of Securities Dealers, Inc.
Automated Quotation System or such other similar system then in use; or, if on
any such date such security is not quoted by any such organization, the average
of the closing bid and asked prices with respect to shares (or units) of such
security, as furnished by a professional market maker making a market in such
security selected by the Board; or, if no such market maker is available, the
fair market value of shares (or units) of such security as of such day as
determined in good faith by the Board (which determination shall be described in
an Officers' Certificate filed with the Rights Agent); PROVIDED, HOWEVER, that
the "Closing Price" of one one-thousandth of a share of Preferred Stock as of
any Trading Day shall be equal to the Closing Price of a whole share of
Preferred Stock on such Trading Day divided by 1000; PROVIDED, FURTHER, that if
the Closing Price of such a share of Preferred Stock as of any Trading Day
cannot be reasonably determined by the foregoing provisions, the "Closing Price"
of one one-thousandth of a share of Preferred Stock on such Trading Date shall
be the Closing Price of a share of Common Stock on such Trading Day.

     (e)  No adjustment in the Purchase Price shall be required unless
adjustment would require an increase or decrease of at least 1% in such 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 (x) ten-thousandth of a share (or similar
unit) of Common Stock or securities other than Preferred Stock or Equivalent
Preferred Stock or (y) ten-millionth of a share of Preferred Stock or Equivalent
Preferred Stock. Notwithstanding the first sentence of this Section 11(e), any
adjustment required by this Section 11 shall be made no later than the earlier
of (i) three years from the date of the transaction which mandates the
adjustment or (ii) the Expiration Date. 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 required by this Section 11, as it
in its

                                      -20-

<PAGE>   23

discretion shall determine to be advisable in order that any dividends,
subdivision of shares, distribution of rights to purchase shares of beneficial
interest or other stock or securities, or distribution of securities convertible
into or exchangeable for stock hereafter made by the Company to its stockholders
shall not be taxable.

     (f)  In the event that at any time, as a result of an adjustment made in
respect of a Common Stock Event, the holder of any Right thereafter exercised
shall become entitled to receive any shares of capital stock of the Company
other than shares of Preferred Stock, thereafter the number of such other shares
so receivable upon exercise of any Right and the Purchase Price thereof shall be
subject to adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to such other shares
contained in Sections 11(a), (b), (c), (e), (g), (h), (i), (j), (k), (m) and (p)
hereof, and the provisions of Sections 7, 9, 10, 11(d), 13 and 14 hereof with
respect to the shares of 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 one one-thousandths of a
share of Preferred Stock purchasable from time to time hereunder upon exercise
of the Rights represented thereby, all subject to further adjustment as provided
herein.

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

     (i)  Assuming that no other adjustment pursuant to this Section 11 has been
made, the Company may elect on or after the date of any adjustment of the
Purchase Price to adjust the number of Rights in substitution for any adjustment
in the number of one one-thousandths of a share 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 one
one-thousandths of a share 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 ten-thousandth) obtained by dividing the Purchase
Price in effect immediately prior to such adjustment of the Purchase Price by
the Purchase Price in effect immediately after such adjustment of the Purchase
Price. The Company shall make a public announcement of its

                                      -21-

<PAGE>   24

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 10 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 so to be distributed shall be issued, executed,
and countersigned in the manner provided for herein (and may bear, at the option
of the Company, the adjusted Purchase Price) and shall be registered in the
names of the holders of record of 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 whole or fractional shares of Preferred Stock issuable upon exercise
of such Rights, the Rights Certificates theretofore and thereafter issued may
continue to express the Purchase Price per share and the number of one
one-thousandths of a share of Preferred Stock 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, if any, of the number of one
one-thousandths of a share of Preferred 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 such number of fully paid and nonassessable one one-thousandths of a share
of Preferred 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 Right exercised after such record date of the
number of one one-thousandths of a share of Preferred Stock or other capital
stock or securities of the Company, if any, issuable upon such exercise over and
above the number of one one-thousandths of a share of Preferred Stock or 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
securities upon the occurrence of the event requiring such adjustment.

                                      -22-
<PAGE>   25

     (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, by means of a resolution of the Board acting in good faith,
shall determine to be advisable in order that any consolidation or subdivision
of the Common Stock, issuance wholly for cash of any Common Stock at less than
the Current Market Price thereof, issuance wholly for cash of Common Stock (or
other securities which by their terms are convertible into or exchangeable for
Common Stock), dividends payable in shares of Common Stock or other capital
stock or shares of beneficial interest, or issuance of rights, options, or
warrants referred to hereinabove in this Section 11, hereafter made or declared
by the Company to the holders of its Common Stock, shall not be taxable to such
holders.

     (n)  The Company covenants and agrees that it shall not, at any time after
the Distribution Date, (i) consolidate with any other Person (other than a
Subsidiary of the Company in a transaction that complies with Section 11(o)
hereof), (ii) merge with or into any other Person (other than a Subsidiary of
the Company in a transaction which complies with Section 11(o) hereof), or (iii)
sell or transfer (or permit any Subsidiary to sell or transfer), in one
transaction or a series of related transactions, more than 25% of (A) the assets
(taken at net asset value as stated on the books of the Company and determined
on a consolidated basis in accordance with generally accepted accounting
principles consistently applied) or (B) the earning power of the Company and its
Subsidiaries (determined on a consolidated basis in accordance with generally
accepted accounting principles consistently applied) to any other Person or
Persons (other than the Company or any of its Subsidiaries in one or more
transactions each of which complies with Section 11(o) hereof), if (x) at the
time of or immediately after such consolidation, merger or sale, there are any
rights, warrants or other instruments or securities outstanding or agreements
(whether or not in writing) in effect that would substantially diminish or
otherwise eliminate the benefits intended to be afforded by the Rights or (y)
prior to, simultaneously with or immediately after such consolidation, merger or
sale, the stockholders of such other Person shall have received a distribution
of Rights previously owned by such Person or any of its Affiliates.

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

     (p)  Anything in this Agreement to the contrary notwithstanding, in the
event that the Company shall at any time after the Dividend Declaration Date and
prior to the Distribution Date (i) declare or pay a dividend on the outstanding
shares of Common Stock payable in shares of Common Stock, or (ii) effect a
subdivision, combination or consolidation of the outstanding Common Stock (by
reclassification or otherwise than by payment of dividends in shares of Common
Stock) into a greater or smaller number of shares, then in any such case, (i)

                                      -23-

<PAGE>   26

the number of one one-thousandths of a share of Preferred Stock purchasable
after such event upon proper exercise of each Right shall be determined by
multiplying the number of one one-thousandths of a share of Preferred Stock so
purchasable immediately prior to such event by a fraction the numerator of which
shall be the total number of shares of Common Stock outstanding immediately
prior to the occurrence of the event and the denominator of which shall be the
total number of shares of Common Stock outstanding immediately following the
occurrence of such event; and (ii) each share of Common Stock outstanding
immediately after such event shall have issued with respect to it that number of
Rights which each share of Common Stock outstanding immediately prior to such
event had issued with respect to it. 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 ADJUSTMENTS.

         Whenever an adjustment is made as provided in Section 11 or 13 hereof,
the Company shall (a) promptly prepare an Officers' Certificate setting forth
such adjustment, including any adjustment in Purchase Price, the number of
shares or Other Consideration payable, and a brief statement of the facts
accounting for such adjustment, (b) promptly file with the Rights Agent and with
each transfer agent for the Preferred Stock and Common Stock a copy of such
Officers' Certificate, and (c) mail a brief summary thereof to each registered
holder of a Rights Certificate in accordance with Section 26 hereof. The Rights
Agent shall be fully protected in relying on any such Officers' Certificate and
on any adjustment therein contained, and shall not be deemed to have knowledge
of any such adjustment unless and until it shall have received such an Officers'
Certificate.

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

     In the event that, following the Stock Acquisition Date, directly or
indirectly, (a) the Company shall consolidate with, or merge with and into, any
other Person (other than a Subsidiary of the Company in a transaction that
complies with Section 11(o) hereof) and the Company shall not be the continuing
or surviving Person of such consolidation or merger, (b) any Person (other than
a Subsidiary of the Company in a transaction that complies with Section 11(o)
hereof) shall consolidate with, or merge with and into, the Company, the Company
shall be the continuing or surviving Person of such consolidation or merger and,
in connection with such consolidation or merger, all or part of the Common Stock
of the Company shall be changed or otherwise transformed into other stock or
other securities of any other Person or the Company or cash or any other
property, or (c) the Company shall sell or otherwise transfer (or one or more of
its Subsidiaries shall sell or otherwise transfer), in one transaction or a
series of related transactions, more than 25% of (A) the assets (taken at net
asset value as stated on the books of the Company and determined on a
consolidated basis in accordance with generally accepted accounting principles
consistently applied) or (B) the earning power of the Company and its
Subsidiaries (determined on a consolidated basis in accordance with generally
accepted accounting principles consistently applied) to any Person

                                      -24-

<PAGE>   27

(other than the Company or any Subsidiary of the Company in one or more
transactions each of which complies with Section 11(o) hereof) then, from and
after such event, proper provision shall be made so that (i) each holder of a
Right, except as provided in Section 7(e) hereof, shall thereafter have the
right to receive, upon the exercise thereof at the Purchase Price in effect at
the time of such exercise in accordance with the terms of this Agreement, such
number of whole or fractional shares of validly authorized and issued, fully
paid, non-assessable, and freely tradeable Common Stock of such other Person (OR
in the case of a transaction or series of transactions described in clause (c)
above, the Person receiving the greatest amount of the assets or earning power
of the Company, OR if the Common Stock of such other Person is not and has not
been continuously registered under Section 12 of the Exchange Act for the
preceding 12-month period and such Person is a direct or indirect Subsidiary of
another Person, that other Person, OR if such other Person is a direct or
indirect Subsidiary of more than one other Person, the Common Stock of two or
more of which are and have been so registered, such other Person whose
outstanding Common Stock has the greatest aggregate value), free and clear of
any liens, encumbrances, rights of first refusal, or other adverse claims, as
shall be equal to the result obtained by (x) multiplying the Purchase Price in
effect immediately prior to the first occurrence of any Common Stock Event
described in this Section 13 by the number of one one-thousandths of a share of
Preferred Stock for which a Right is exercisable immediately prior to such first
occurrence (and without taking into account any prior adjustment made pursuant
to 11(a)(ii)) and (y) dividing that product by 50% of the Current Market Price
per share (as defined in Section 11(d) hereof) of the Common Stock of such other
Person determined as of the date of consummation of such consolidation, merger,
sale, or transfer; (ii) the issuer of such Common Stock shall thereafter be
liable for, and shall assume, by virtue of such consolidation, merger, sale, or
transfer, all the obligations and duties of the Company pursuant to this
Agreement; (iii) the term "Company" shall thereafter be deemed, for all purposes
of this Agreement, to refer to such issuer, it being specifically intended that
the provisions of Section 11 hereof (other than Section 11(a)(ii) hereof) shall
apply only to such issuer following the first occurrence of a Common Stock Event
described in this Section 13; (iv) such issuer shall take such steps (including,
but not limited to, the reservation of a sufficient number of shares of its
Common Stock) in connection with such consummation as may be necessary to assure
that the provisions hereof shall thereafter be applicable, as nearly as
reasonably may be, in relation to the whole or fractional shares of its Common
Stock thereafter deliverable upon the exercise of the Rights; and (v) the
provisions of Section 11(a)(ii) hereof shall be of no effect following the first
occurrence of any Common Stock Event described in clauses (a), (b) or (c) of
this Section 13. The Company shall not consummate any such consolidation,
merger, sale or transfer unless (i) such issuer shall have a sufficient number
of authorized shares of its Common Stock which have not been issued or reserved
for issuance as will permit the exercise in full of the Rights in accordance
with this Section 13, and (ii) prior thereto the Company and such issuer shall
have executed and delivered to the Rights Agent a supplemental agreement so
providing and further providing that as soon as practicable after the date of
any Common Stock Event described above in this Section 13 such issuer shall (A)
prepare and file a registration statement under the Act, with respect to the
Rights and the securities purchasable upon

                                      -25-

<PAGE>   28

exercise of the Rights on an appropriate form, and will use its best efforts to
cause such registration statement to (I) become effective as soon as practicable
after such filing and (II) remain effective (with a prospectus at all times
meeting the requirements of the Act) until the Expiration Date, and (B) will
deliver to holders of the Rights historical financial statements of such issuer
and each of its Affiliates which comply in all respects with the requirements
for registration on Form 10 under the Exchange Act. Furthermore, in case the
Person which is to be party to a transaction referred to in this Section 13 has
any provision in any of its authorized securities or in its charter or by-laws
or other agreement or instrument governing its affairs, which provision would
have the effect of causing such Person to issue, in connection with, or as a
consequence of, the consummation of a Common Stock Event described in clauses
(a), (b), or (c) of this Section 13, whole or fractional shares of Common Stock
of such Person at less than the then Current Market Price per share thereof (as
defined in Section 11(d) hereof), or to issue securities exercisable for, or
convertible into, Common Stock of such Person at less than such then Current
Market Price, then, in such event, the Company hereby agrees with each holder of
the Rights that it shall not consummate any such transaction unless prior
thereto the Company and such Person shall have executed and delivered to the
Rights Agent a supplemental agreement providing that such provision in question
shall have been canceled, waived, or amended so that it will have no effect in
connection with, or as a consequence of, the consummation of the proposed
transaction. The provisions of this Section 13 shall similarly apply to
successive mergers or consolidations or sales or other transfers. In the event
that a Common Stock Event described in this Section 13 shall occur at any time
after the occurrence of a Common Stock Event described in Section 11(a)(ii)
hereof, the Rights which have not theretofore been exercised shall thereafter
become exercisable, except as provided in Section 7(e) hereof, in the manner
described in this Section 13.

Section 14.  FRACTIONAL RIGHTS AND FRACTIONAL SHARES.

     (a)  The Company shall not be required to issue fractions of Rights or to
distribute fractions of Rights, except prior to the Distribution Date as
provided in Section 11(i) hereof, or to distribute Rights Certificates which
evidence fractional Rights. In lieu of issuing such fractional Rights, at the
election of the Company, there shall be paid to the registered holders of the
Rights 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.

     (b)  The Company shall not be required to issue fractions of shares of its
capital stock upon exercise of the Rights or to distribute certificates which
evidence fractional shares (other than, in each case with respect to Preferred
Stock or Equivalent Preferred Stock, fractions which are integral multiples of
one one-thousandth of a share of Preferred Stock or Equivalent Preferred Stock,
as the case may be). Fractions of shares of Preferred Stock or Equivalent
Preferred Stock, as the case may be, in integral multiples of one one-thousandth
of

                                      -26-

<PAGE>   29

a share of Preferred Stock or Equivalent Preferred Stock may, at the election of
the Company, be evidenced by depositary receipts, pursuant to an appropriate
agreement between the Company and a depository selected by it, provided that
such agreement shall provide that the holders of such depositary receipts shall
have all the rights, privileges and preferences to which they are entitled as
beneficial owners of the Preferred Stock or the Equivalent Preferred Stock
represented by such depositary receipts. In lieu of fractional shares, at the
election of the Company, there shall be paid to the registered holders of Rights
at the time such Rights are exercised as herein provided an amount in cash equal
to the same fraction of the current market value of a share of such capital
stock. For purposes of this Section 14(b), the current market value of a share
of such capital stock shall be the Closing Price of such capital stock for the
Trading Day immediately prior to the date of such exercise.

     (c)  The holder of a Right, by the acceptance of the Right, expressly
waives such holder's right to receive any fractional Rights or (except as
provided in Section 14(b) hereof) any fractional share upon exercise of a Right.

Section 15.  RIGHTS OF ACTION.

     Excepting the rights of action given the Rights Agent under Section 18
hereof and except as set forth in Section 20(l) hereof, all rights of action in
respect of this Agreement are vested in the registered holder of each Right; and
any registered holder of any Right, without the consent of the Rights Agent or
of the holder of any other Right, may, in its own behalf and for its 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 registered
holder's right to exercise the rights evidenced by such Right in the manner
provided in such Rights Certificate and in this Agreement, and the Company
hereby agrees to reimburse such registered holder for all expenses (including
reasonable attorneys' fees) incurred by such registered holder in connection
therewith. 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 the obligations
hereunder, and shall be entitled to injunctive relief against actual or
threatened violations of the obligations hereunder 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 Common Stock;

     (b)  from and after the Distribution Date, the Rights Certificates are
transferable only on the registry books of the Rights Agent if surrendered at
the principal office of the

                                      -27-

<PAGE>   30

Rights Agent, duly endorsed or accompanied by a proper instrument of transfer
with a form of assignment and certificate set forth on the reverse side thereof
duly executed, accompanied by a signature guarantee and such other documentation
as the Rights Agent may reasonably request;

     (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 a 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 Certificate
or, prior to the Distribution Date, 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 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 agrees to 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 otherwise be deemed for any purpose the holder of any
securities of the Company which may be issuable on 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 in
the election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any action by the Company, or
to receive notice of meetings or other actions affecting stockholders (except as
provided in Section 25 hereof), or to receive dividends or preemptive rights, or
otherwise, until the time specified in Section 10 hereof.

Section 18.  CONCERNING THE RIGHTS AGENT.

     The Company agrees to pay to the Rights Agent such reasonable compensation
as shall be agreed to in writing between the Company and the Rights Agent for
all services rendered by it hereunder and, from time to time, on demand of the
Rights Agent, its reasonable expenses and counsel fees and disbursements and
other disbursements incurred in the administration and

                                      -28-

<PAGE>   31

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 and all loss, liability, damages, claims or
expense, incurred without gross negligence, bad faith or willful misconduct on
the part of the Rights Agent, for anything done or omitted by the Rights Agent
in connection with the acceptance and administration of this Agreement,
including the costs and expenses (including reasonable attorneys' fees and
expenses) of defending against any claim of liability for any of the foregoing.

     The Rights Agent shall be protected and shall incur no liability for or in
respect of any action taken, suffered, or omitted by it in connection with its
administration of this Agreement in reliance upon any Rights Certificate or
certificate for any number of one one-thousandths of a share of Preferred Stock,
or for shares of Common Stock or for other securities of the Company, instrument
of assignment or transfer, power of attorney, endorsement, affidavit, letter,
notice, instruction, direction, consent, certificate, statement, or other paper
or document believed by it to be genuine and to be signed and executed by the
proper Person or Persons, and verified or acknowledged as required by this
Agreement.

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

     Any corporation into which the 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 shall be a party, or any corporation
succeeding to the shareholder services business of the 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, HOWEVER, 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 and 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.

     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 such 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.

                                      -29-
<PAGE>   32

Section 20.  DUTIES OF RIGHTS AGENT.

     The Rights Agent undertakes only the duties and obligations expressly
imposed upon it by this Agreement and no implied duties or obligations shall be
read into this Agreement against the Rights Agent. The Rights Agent shall
perform its duties and obligations hereunder upon the following terms and
conditions:

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

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

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

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

     (e)  The Rights Agent shall not be under any responsibility in respect of
the validity of this Agreement or the execution and delivery hereof (except the
due execution hereof by the Rights Agent) or in respect of the validity or
execution of any Rights Certificate (except its countersignature thereof); nor
shall it be responsible for any breach by the Company of any covenant or
condition contained in this Agreement or in any Rights Certificate; nor shall it
be responsible for any adjustment required under the provisions of Sections 11
or 13 hereof or be responsible for the manner, method or amount of any such
adjustment or procedures or the ascertaining of the existence of facts that
would require any such adjustment or procedure (except with respect to the
exercise of Rights evidenced by Rights Certificates after receipt of a
certificate delivered pursuant to Section 12 hereof, describing any such
adjustment or procedures); nor shall it by any act hereunder be deemed to make
any representation or

                                      -30-

<PAGE>   33

warranty as to the authorization or reservation of any Preferred Stock, Common
Stock or other securities to be issued pursuant to this Agreement or any Rights
Certificate or as to whether any shares of Common Stock, or any shares or
similar units of other securities, will, when issued, be validly authorized and
issued, fully paid, and nonassessable.

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

     (g)  The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from any
person believed by the Rights Agent to be the Chairman of the Board, the
President or any Vice President or the Secretary or any Assistant Secretary or
the Treasurer or any Assistant Treasurer of the Company, and to apply to such
officers for advice or instructions in connection with its duties, and it shall
not be liable for any action taken or suffered to be taken by it in good faith
in accordance with instructions of any such officer. 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 with respect to its duties or obligations under this Agreement
and the date on and/or after which such action shall be taken or omitted and the
Rights Agent shall not be liable for any action taken or omitted in accordance
with a proposal included in any such application on or after the date specified
therein (which date shall not be less than three Business Days after the date
any such officer actually receives such application, unless any such officer
shall have consented in writing to an earlier date) unless, prior to taking or
omitting any such action, the Rights Agent has received written instructions
from the Company 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 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, HOWEVER, that 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

                                      -31-

<PAGE>   34

hereunder or in the exercise of its rights if there shall be reasonable grounds
for believing that repayment of such funds or adequate indemnification against
such risk or liability is not reasonably assured to it.

     (k)  If, with respect to any Rights Certificate surrendered to the Rights
Agent for exercise or transfer, the certification appearing on the reverse side
thereof following the form of election to purchase has either not been completed
or indicates an affirmative response to clause 1 and/or 2 thereof, the Rights
Agent shall not take any further action with respect to such requested exercise
of transfer without first consulting with the Company.

     (l)  The provisions of this Section 20 are solely for the benefit of the
Rights Agent or the Company and any failure or omission under this Section 20
shall not affect the rights of the Company under this Agreement and neither the
Rights Agent nor the Company shall have any liability to any holder of Rights or
other Person on account of such failure or omission.

Section 21.  CHANGE OF RIGHTS AGENT.

     The Rights Agent or any successor Rights Agent may resign and be discharged
from its duties under this Agreement upon 30 days' notice in writing mailed to
the Company and to each transfer agent of the Common Stock by registered or
certified mail, and, subsequent to the Distribution Date, to the holders of the
Rights Certificates by first-class mail. The Company may remove the Rights Agent
or any successor Rights Agent upon 30 days' notice in writing, mailed to the
Rights Agent, to each transfer agent of the Common Stock by registered or
certified mail, and, subsequent to the Distribution Date, 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 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, the State of New York or The Commonwealth of Massachusetts
(or of any other State of the United States so long as such corporation is
authorized to do business as a banking institution in the State of New York or
The Commonwealth of Massachusetts), in good standing, having an office
designated for such purpose in the State of New York or The Commonwealth of
Massachusetts, which is authorized under such laws to exercise corporate trust
powers and is subject to supervision or examination by federal or state
authority and which has at the time of its appointment as Rights Agent a
combined capital and surplus of at least $50,000,000. 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

                                      -32-

<PAGE>   35

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; and,
except as the context herein otherwise requires, such successor Rights Agent
shall be deemed to be the "Rights Agent" for all purposes of this Agreement. Not
later than the effective date of any such appointment the Company shall file
notice thereof in writing with the predecessor Rights Agent and each transfer
agent of the Common Stock, and mail a notice thereof in writing to the
registered holders of the 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 the Board to reflect any
adjustment or change in the Purchase Price per share and the number or kind or
class of shares of stock 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 by the Company of shares of
Common Stock following the Distribution Date and prior to the redemption or
expiration of the Rights, the Company (a) shall, with respect to shares of
Common Stock so issued or sold pursuant to the exercise of stock options or
under any employee plan or arrangement, or upon the exercise, conversion or
exchange of securities hereinafter issued by the Company, and (b) may, in any
other case, if deemed necessary or appropriate by the Board, issue Rights
Certificates representing the appropriate number of Rights in connection with
such issuance or sale; PROVIDED, HOWEVER, that (i) no such Rights evidenced by a
Rights Certificate shall be issued if, and to the extent that, the Company shall
be advised by counsel that such issuance would create a significant risk of
material adverse tax consequences to the Company or the Person to whom such
Rights would be issued, and (ii) no such 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.

     The Board, by majority vote, may, at its option, at any time prior to the
earlier of (i) the Distribution Date or (ii) the Close of Business on the
Expiration Date, redeem all (but not less than all) of the then outstanding
Rights at a redemption price of $.01 per Right, appropriately adjusted to
reflect any stock split, stock dividend, combination of shares, or similar
transaction occurring after the date hereof (such redemption price being
hereinafter referred to as the "Redemption Price"). Immediately upon the taking
of such action ordering the redemption of all of the Rights, evidence of which
shall have been filed with the Rights Agent, and without any further action and
without any notice, the right to exercise the Rights so redeemed will terminate
and the only right thereafter of the holders of such Rights so

                                      -33-

<PAGE>   36

redeemed shall be to receive the Redemption Price (without the payment of any
interest thereon). Within 10 days after such action ordering the redemption of
all of the Rights, the Company shall give notice of such redemption to the
holders of the then outstanding Rights by mailing such notice to all such
holders at their last addresses as they appear upon the registry books of the
Rights Agent or, prior to the Distribution Date, on the registry books of the
transfer agent for the Common Stock. Any notice which is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the
notice. Each such notice of redemption shall state the method by which the
payment of the Redemption Price shall be made.

Section 24.  EXCHANGE.

     (a)  The Board, by majority vote, may, at its option, at any time after any
Person becomes an Acquiring Person, exchange all or part of the then outstanding
and exercisable Rights for shares of Common Stock at an exchange ratio of one
share of Common Stock per Right, appropriately adjusted to reflect any stock
split, stock dividend or similar transaction occurring after the date hereof
(such exchange ratio, as the same may be so adjusted from time to time, being
hereinafter referred to as the "Exchange Ratio"). Notwithstanding the foregoing,
the Board shall not be empowered to effect such exchange at any time after any
Person (other than (i) the Company, (ii) any Subsidiary of the Company, (iii)
any employee benefit plan of the Company or of any such Subsidiary, or (iv) any
entity holding Common Stock for or pursuant to the terms of any such plan),
together with all Affiliates of such Person, becomes the Beneficial Owner of 50%
or more of the Common Stock then outstanding.

     (b)  Immediately upon the action of the Board ordering the exchange of any
Rights pursuant to subsection (a) of this Section 24 and without any further
action and without any notice, the right to exercise such Rights shall terminate
and the only right thereafter of a holder of such Rights shall be to receive
that number of shares of Common Stock equal to the number of such Rights held by
such holder multiplied by the Exchange Ratio. The Company shall promptly give
public notice of any such exchange; PROVIDED, HOWEVER, that the failure to give,
or any defect in, such notice shall not affect the validity of such exchange.
The Company promptly shall mail a notice of any such exchange to all of the
holders of such Rights at their last addresses as they appear upon the registry
books of the Rights Agent. Any notice which is mailed in the manner herein
provided shall be deemed given, whether or not the holder receives the notice.
Each such notice of exchange shall state the method by which the exchange of the
Common Stock for Rights shall 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 any exchange pursuant to this Section 24, the Company, at its
option, may substitute shares of Preferred Stock (or shares of Equivalent
Preferred Stock) for shares of

                                      -34-

<PAGE>   37

Common Stock exchangeable for Rights, at the initial rate of one one-thousandth
of a share of Preferred Stock (or share of Equivalent Preferred Stock) for each
share of Common Stock, as appropriately adjusted to reflect adjustments in the
voting rights of shares of Preferred Stock pursuant to the terms thereof, so
that the fraction of a share of Preferred Stock delivered in lieu of each share
of Common Stock shall have the same voting rights as one share of Common Stock.

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

     (e)  The Company shall not be required to issue fractions of shares of
Common Stock or to distribute certificates which evidence fractional shares of
Common Stock. In lieu of such fractional shares of Common Stock, the Company
shall pay to each registered holder of a Rights Certificate with regard to which
a fractional share of Common Stock would otherwise be issuable an amount in cash
equal to the same fraction of the current market value of a whole share of
Common Stock. For the purposes of this paragraph (e), the current market value
of a whole share of Common Stock shall be the Closing Price of a share of Common
Stock (as determined pursuant to Section 11(d) hereof) for the Trading Day
immediately prior to the date of exchange pursuant to this Section 24.

Section 25.  NOTICE OF PROPOSED ACTIONS.

     In case the Company shall after the Distribution Date propose (a) 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 cash dividend out of earnings or the retained earnings of the Company),
or (b) to offer to the holders of its Preferred Stock rights or warrants to
subscribe for or to purchase any additional shares of Preferred Stock, Common
Stock or shares of stock of any other class or any other securities, rights, or
options, or (c) to effect any reclassification of the Preferred Stock (other
than a reclassification involving only the subdivision of outstanding shares of
Preferred Stock), or (d) to effect any consolidation or merger into or with, or
to effect any sale or other transfer (or to permit one or more of its
Subsidiaries to effect any sale or other transfer), in one transaction or a
series of related transactions, of more than 25% of (i) the assets of the
Company and its Subsidiaries (taken at net asset value as stated on the books of
the Company and determined on a consolidated basis in accordance with generally
accepted accounting principles consistently applied) or (ii) the earning power
of the Company and its Subsidiaries (determined on a consolidated basis in
accordance with generally accepted accounting principles consistently applied)
to any other Person or Persons, or (e) to effect the liquidation, dissolution or
winding up of the Company, then, in each such case, the Company shall give to
the Rights Agent and each holder of a Right, in accordance with Section 26
hereof, a notice of such proposed action,

                                      -35-

<PAGE>   38

which shall specify the record date for the purposes of such stock dividend,
distribution of rights or warrants, or the date on which such reclassification,
consolidation, merger, sale, transfer, liquidation, dissolution, or winding up
is to take place and the date of participation therein by the holders of
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 (a) or (b) above at least 20
days prior to the record date for determining holders of the Preferred Stock for
purposes of such action, and in the case of any such other action, at least 20
days prior to the date of the taking of such proposed action or the date of
participation therein by the holders of Common Stock whichever shall be the
earlier. The failure to give notice required by this Section 25 or any defect
therein shall not affect the legality or validity of the action taken by the
Company or the vote upon any such action.

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

     Notwithstanding anything in this Agreement to the contrary, prior to the
Distribution Date a filing by the Company with the Securities and Exchange
Commission shall constitute sufficient notice to the holders of securities of
the Company, including the Rights, for purposes of this Agreement and no other
notice need be given.

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 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:

            Summit Technology, Inc.
            21 Hickory Drive
            Waltham, MA  02451

            Attention:   General Counsel

            Copy to:     Keith F. Higgins, Esq.
                         Ropes & Gray
                         One International Place
                         Boston, MA  02110-2624

                                      -36-
<PAGE>   39

     Subject to the provisions of Sections 19 and 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 sufficiently
given or made if sent by first-class mail, postage prepaid, addressed (until
another address is filed in writing with the Company) as follows:

                  Fleet National Bank
                  c/o EquiServe Limited Partnership
                  150 Royall Street
                  Canton, MA 02021

                  Attn:  Client Administration
                  (Summit Technology, Inc. Rights Agreement)

     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 Board, upon the vote of a majority of
the Board, may from time to time supplement or amend this Agreement without the
approval of any holders of the Rights. From and after the Distribution Date, the
Board may, upon the vote of a majority of the Board, from time to time amend
this Agreement without the approval of any holders of the Rights in order (i) to
cure any ambiguity, (ii) to correct or supplement any provision contained herein
which may be defective or inconsistent with any other provisions herein, (iii)
to change any time period governing redemption of the Rights or any other time
period or (iv) to make any other provisions in regard to matters or questions
arising hereunder which the Board, upon the vote of a majority of the Board, may
deem necessary or desirable and which shall not adversely affect the interests
of the holders of the Rights (other than any Acquiring Person or Disqualified
Transferee or any Affiliate of an Acquiring Person or Disqualified Transferee).
Any amendment made pursuant to this Section 27 after a Stock Acquisition Date
shall require the approval of a majority of the Board. The Rights Agent shall
join with the Company in the execution and delivery of any such supplement or
amendment, unless such supplement or amendment affects any of the rights,
duties, or obligations of the Rights Agent hereunder, in which case the Rights
Agent may, but shall not be required to, join in such execution and delivery.

                                      -37-
<PAGE>   40

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; ETC.

     The Board shall have the exclusive power and authority to administer this
Agreement and to exercise all rights and powers specifically granted to the
Board, or to the Company, or as may be necessary or advisable in the
administration of this Agreement, including, without limitation, the right and
power to (i) interpret the provisions of this Agreement and (ii) make all
determinations deemed necessary or advisable for the administration of this
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 and
with the concurrence of a majority of the Board then in office shall (x) be
final, conclusive and binding on the Company, the Rights Agent, the holders of
the Rights and all other parties and (y) not subject any Director 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 other
than the Company, the Rights Agent, and the registered holders of the Rights
(and, prior to the Distribution Date, the associated shares of Common Stock) any
legal or equitable right, remedy, or claim under this Agreement or the Rights;
but this Agreement shall be for the sole and exclusive benefit of the Company,
the Rights Agent, and the registered holders of the Rights (and, prior to the
Distribution Date, the associated Common Stock).

Section 31.  SEVERABILITY.

     The invalidity or unenforceability of any term or provision hereof shall
not affect the validity or enforceability of any other term or provision hereof.
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, covenant or restriction is held by such court or authority to be
invalid, void or unenforceable and the Board determines in its good faith
judgment that severing the invalid language from this Agreement would adversely
affect the purpose or effect of this Agreement, the right of redemption set
forth in Section 23 hereof shall be reinstated and shall not expire until the
Close of Business on the tenth day following the date of such determination by
the Board.

                                      -38-

<PAGE>   41

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 Commonwealth of Massachusetts and
for all purposes shall be governed by and construed in accordance with the laws
of said Commonwealth applicable to contracts to be made and performed entirely
within said Commonwealth.

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
for convenience only and shall not control or affect the meaning or construction
of any of the provisions hereof.

                                      -39-

<PAGE>   42

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

                                        SUMMIT TECHNOLOGY, INC.

                                        By: /s/ Robert J. Palmisano
                                           ---------------------------
                                        Title: Chief Executive Officer

Attest:

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

                                        FLEET NATIONAL BANK

Attest:                                 By: /s/ Tyler Haynes
                                           ----------------------------
                                        Title: Managing Director

By: /s/ James A. Walsh
   ---------------------------
   Title: Account Manager

<PAGE>   43

                                                                       EXHIBIT A

               FORM OF CERTIFICATE OF DESIGNATION, PREFERENCES AND
                            RIGHTS OF PREFERRED STOCK

                                       of

                             SUMMIT TECHNOLOGY, INC.

                         Pursuant to Chapter 156B of the
                           Massachusetts General Laws

     Summit Technology, Inc., a corporation organized and existing under and by
virtue of the General Laws of the State of Massachusetts (the "Corporation")
DOES HEREBY CERTIFY:

     That pursuant to the authority conferred upon the Board of Directors (the
"Board of Directors") by the Articles of Organization, as amended, of the
Corporation, and in accordance with the provisions of Chapter 156B, Section 26
of the General Laws of the State of Massachusetts, the Board of Directors on
March 28, 2000 adopted a resolution providing for the authorization of a series
of Preferred Stock, par value $.01 per share (the "Preferred Stock") as follows:

     RESOLVED, that pursuant to the authority vested in the Board of Directors
     of this Corporation in accordance with the provisions of its Articles of
     Organization, as amended, a series of Preferred Stock of the Corporation be
     and it hereby is created, and that the designation and amount thereof and
     the voting powers, preferences and relative, participating, optional and
     other special rights of the shares of such series, and the qualifications,
     limitations or restrictions thereof are as follows:

     Section 1. DESIGNATION AND AMOUNT. The shares of such series shall be
designated as "Series A Preferred Stock" (the "Series A Stock") and the number
of shares constituting such series shall be 100,000. The number of shares of
Series A Stock may be increased or decreased by a resolution duly adopted by the
Board of Directors, but may not be decreased below the number of shares of
Series A Stock then outstanding plus the number of shares reserved for issuance
upon the exercise of outstanding options, rights or warrants or upon conversion
of any outstanding securities convertible into Series A Stock.

     Section 2. DIVIDENDS AND DISTRIBUTIONS.

          (a) Subject to the prior and superior rights of the holders of any
     shares of any series of Preferred Stock ranking prior and superior to the
     shares of Series A Stock with respect to dividends, the holders of shares
     of Series A Stock shall be entitled to

                                      A-1

<PAGE>   44

     receive, when, as and if declared by the Board of Directors out of funds
     legally available for the purpose, quarterly dividends payable in cash on
     the last day of March, June, September and December in each year (each such
     date being referred to herein as a "Quarterly Dividend Payment Date"),
     commencing on the first Quarterly Dividend Payment Date after the first
     issuance of a share or fraction of a share of Series A Stock, in an amount
     per share (rounded to the nearest cent) equal to the greater of (a) $1.00
     or (b) subject to the provision for adjustment set forth in Section 8
     hereof, 1000 times the aggregate per share amount of all cash dividends,
     and 1000 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, $.01 par value per share, of the Corporation (the
     "Common Stock") or a subdivision of the outstanding shares of Common Stock
     (by reclassification or otherwise), declared on the Common Stock since the
     immediately preceding Quarterly Dividend Payment Date or, with respect to
     the first Quarterly Dividend Payment Date, since the first issuance of any
     share or fraction of a share of Series A Stock.

          (b) The Corporation shall declare a dividend or distribution on the
     Series A Stock as provided in paragraph (a) of this Section 2 immediately
     after it declares a dividend or distribution on the Common Stock (other
     than a dividend payable in shares of or a subdivision with respect to
     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 Dividend Payment Date, a dividend of $1.00 per share
     on the Series A Stock shall nevertheless be payable on such subsequent
     Quarterly Dividend Payment Date.

          (c) Dividends shall begin to accrue and be cumulative on outstanding
     shares of Series A Stock from the Quarterly Dividend Payment Date next
     preceding the date of issue of such shares of Series A Stock, unless the
     date of issue of such shares is prior to the record date for the first
     Quarterly Dividend Payment Date, in which case dividends on such shares
     shall begin to accrue from the date of issue of such shares, or unless the
     date of issue is a Quarterly Dividend Payment Date or is a date after the
     record date for the determination of holders of shares of Series A Stock
     entitled to receive a quarterly dividend and before such Quarterly Dividend
     Payment Date, in either of which events such dividends shall begin to
     accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued
     but unpaid dividends shall not bear interest. Dividends paid on the shares
     of Series A 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 Stock entitled to receive payment of a
     dividend or distribution declared thereon, which record date shall be no
     more than 60 days prior to the date fixed for the payment thereof.

                                      A-2
<PAGE>   45

     Section 3. VOTING RIGHTS. The holders of shares of Series A Stock shall
have the following voting rights:

          (a) Subject to the provision for adjustment set forth in Section 8
     hereof, each share of Series A Stock shall entitle the holder thereof to
     one thousand votes on all matters submitted to a vote of the stockholders
     of the Corporation.

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

     Section 4. CERTAIN RESTRICTIONS

          (a) Whenever quarterly dividends or other dividends or distributions
     payable on the Series A 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 Stock outstanding shall have
     been paid in full, the Corporation shall not:

               (i) declare or pay dividends on, make any other distributions on,
          or redeem or purchase or otherwise acquire for consideration any
          shares of stock ranking junior (either as to dividends or upon
          liquidation, dissolution or winding up) to the Series A Stock;

               (ii) declare or pay dividends on or make any other distributions
          on any shares of stock ranking on a parity (either as to dividends or
          upon liquidation, dissolution or winding up) with the Series A Stock,
          except dividends paid ratably on the Series A 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 on a parity (either as to dividends or
          upon liquidation, dissolution or winding up) with the Series A Stock,
          provided that the Corporation may at any time redeem, purchase or
          otherwise acquire shares of any such parity stock (A) in exchange for
          shares of any stock of the Corporation ranking junior (either as to
          dividends or upon dissolution, liquidation or winding

                                      A-3

<PAGE>   46

          up) to the Series A Stock or (B) in accordance with subparagraph (iv)
          of this Section 4(a); or

               (iv) redeem or purchase or otherwise acquire for consideration
          any shares of Series A Stock, or any shares of stock ranking on a
          parity with the Series A 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 the outstanding shares of such stock 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.

          (b) 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.

     Section 5. REACQUIRED SHARES. Any shares of Series A Stock redeemed,
purchased or otherwise acquired by the Corporation in any manner whatsoever
shall be retired and canceled 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
to be created by resolution or resolutions of the Board of Directors, subject to
the conditions and restrictions on issuance set forth herein.

     Section 6. LIQUIDATION, DISSOLUTION OR WINDING UP.

          (a) Upon any liquidation (voluntary or otherwise), dissolution or
     winding up of the Corporation, no distribution shall be made to the holders
     of shares of Common Stock or any other stock of the Corporation ranking
     junior (upon liquidation, dissolution or winding up) to the Series A Stock
     unless, prior thereto, the holders of shares of Series A Stock shall have
     received $1000.00 per share plus an amount equal to all accrued and unpaid
     dividends and distributions thereon, whether or not declared, to the date
     of such payment (the "Series A Liquidation Preference"). Following the
     payment of the full amount of the Series A Liquidation Preference, no
     additional distributions shall be made to the holders of shares of Series A
     Stock unless, prior thereto, the holders of shares of Common Stock (which
     term shall include, for the purposes only of this Section 6, any series of
     the Corporation's Preferred Stock ranking on a parity with the Common Stock
     upon liquidation, dissolution or winding up) shall have received an amount
     per share (the "Common Adjustment") equal to the quotient obtained by
     dividing (i) the Series A Liquidation Preference by (ii) 1000 (as
     appropriately adjusted as set forth in Section 8 hereof to reflect such
     events as stock splits, stock dividends and recapitalizations with respect
     to the Common Stock; such

                                      A-4

<PAGE>   47

     number in this clause (ii), as the same may be adjusted from time to time,
     is hereinafter referred to as the "Adjustment Number". In the event,
     however, that there are not sufficient assets available to permit payment
     in full of the Common Adjustment, then any remaining assets shall be
     distributed ratably to the holders of Common Stock. Following the payment
     of the full amount of the Series A Liquidation Preference and the Common
     Adjustment in respect of all outstanding shares of Series A Stock and
     Common Stock, respectively, holders of shares of Series A Stock and holders
     of shares of Common Stock shall receive their ratable and proportionate
     share of any remaining assets to be distributed in the ratio of the
     Adjustment Number to one (1) with respect to such Series A Stock and Common
     Stock, on a per share basis, respectively.

          (b) In the event, however, that there are not sufficient assets
     available to permit payment in full of 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 Stock, then any remaining
     assets shall be distributed ratably to the holders of the Series A Stock
     and the holders of such parity stock in proportion to their respective
     liquidation preferences.

          (c) None of the merger or consolidation of the Corporation into or
     with any other entity, the sale of all or substantially all of the property
     and assets of the Corporation or the distribution to the stockholders of
     the Corporation of all or substantially all of the consideration for such
     sale, unless such consideration (apart from the assumption of liabilities)
     or the net proceeds thereof consists substantially entirely of cash, shall
     be deemed to be a liquidation, dissolution or winding up within the meaning
     of this Section 6.

          (d) Each share of Series A Stock shall stand on a parity with each
     other share of Series A Stock or any other series of the same class of
     Preferred Stock upon voluntary or involuntary liquidation, dissolution or
     distribution of assets or winding up of the Corporation.

     Section 7. CONSOLIDATION, MERGER, ETC. In case the Corporation shall enter
into any consolidation, merger, combination or other transaction in which the
outstanding 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 the
outstanding shares of Series A Stock shall at the same time be similarly
exchanged or changed in an amount per share (subject to the provision for
adjustment set forth in Section 8 hereof) equal to 1000 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.

     Section 8. CERTAIN ADJUSTMENTS. In the event the Corporation shall at any
time declare or pay any dividend on Common Stock payable in shares of Common
Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by

                                      A-5

<PAGE>   48

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 amounts set forth in Sections 2(a) and (b), 3(a), 6(a) and 7
hereof with respect to the multiple of (i) cash and non-cash dividends, (ii)
votes, (iii) the Series A Liquidation Preference and (iv) an aggregate amount of
stock, securities, cash and/or other property referred to in Section 7 hereof,
shall be adjusted by multiplying such amount by a fraction the numerator of
which is the number of shares of Common Stock outstanding immediately after such
event and the denominator of which is the number of shares of Common Stock that
were outstanding immediately prior to such event.

     Section 9. RANKING. The Series A Stock shall rank PARI PASSU with (or if
determined by the Board of Directors in any vote establishing any other series
of Preferred Stock, either senior and prior in preference to, or junior and
subordinate to, as the case may be) each other series of Preferred Stock of the
Corporation with respect to dividends and/or preference upon liquidation,
dissolution or winding up.

     Section 10. REDEMPTION. The shares of Series A Stock may be purchased by
the Corporation at such times and on such terms as may be agreed to between the
Corporation and the redeeming stockholder, subject to any limitations which may
be imposed by law or the Articles of Organization, as amended.

     Section 11. AMENDMENT. The Articles of Organization, as amended, of the
Corporation shall not be amended in any manner which would materially alter or
change the powers, preferences or special rights of the Series A Stock so as to
affect them adversely without the affirmative vote of the holders of two-thirds
or more of the outstanding shares of Series A Stock, voting together as a single
class.

     Section 12. FRACTIONAL SHARES. Series A Stock may be issued in fractions of
a share which 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
Stock.

                                      A-6

<PAGE>   49

     IN WITNESS WHEREOF, this Certificate of Designation was executed on behalf
of the Corporation by its Chief Executive Officer and attested by its Clerk on
_____________, 2000.

                                     By_____________________________
                                       Chief Executive Officer

Attest:

By___________________

  Clerk

[SEAL]

                                      A-7

<PAGE>   50

                                                                       EXHIBIT B

                           FORM OF RIGHTS CERTIFICATE

Certificate No. R-                                                _______ Rights

     NOT EXERCISABLE AFTER MARCH 28, 2010 OR EARLIER IF ORDER OF REDEMPTION IS
     GIVEN. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY,
     AT $.01 PER RIGHT ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER
     CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR
     AN AFFILIATE (WHICH INCLUDES AFFILIATES AND ASSOCIATES) OF AN ACQUIRING
     PERSON (AS EACH SUCH TERM IS DEFINED IN THE RIGHTS AGREEMENT) AND ANY
     SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID. THE RIGHTS SHALL
     NOT BE EXERCISABLE, AND SHALL BE VOID SO LONG AS HELD, BY A HOLDER IN ANY
     JURISDICTION WHERE THE REQUISITE QUALIFICATION TO THE ISSUANCE TO SUCH
     HOLDER, OR THE EXERCISE BY SUCH HOLDER, OF THE RIGHTS IN SUCH JURISDICTION
     SHALL NOT HAVE BEEN OBTAINED OR BE OBTAINABLE. [THE RIGHTS REPRESENTED BY
     THIS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR
     BECAME AN ACQUIRING PERSON OR AN AFFILIATE (WHICH INCLUDES AFFILIATES AND
     ASSOCIATES) OF AN ACQUIRING PERSON (AS EACH SUCH TERM IS DEFINED IN 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. THE RIGHTS AGENT WILL MAIL TO THE
     REGISTERED HOLDER OF THIS CERTIFICATE A COPY OF THE RIGHTS AGREEMENT, AS IN
     EFFECT ON THE DATE OF SUCH MAILING, WITHOUT CHARGE UPON WRITTEN REQUEST.]*

                               Rights Certificate

                             SUMMIT TECHNOLOGY, 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 March 28,

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

*    The portion of the legend in brackets shall be inserted only if applicable.

                                      B-1

<PAGE>   51

     2000 (the "Rights Agreement") between Summit Technology, Inc. (the
     "Company"), and Fleet National Bank, 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.
     (Boston, Massachusetts time) on March 28, 2010 (the "Expiration Date") at
     the office of the Rights Agent designated for such purpose, or its
     successors as Rights Agent, one one-thousandth of a share of the Series A
     Preferred Stock, with a par value of $.01 per share ("Preferred Stock"), of
     the Company per each Right represented hereby, at a purchase price of
     $___________ per share (the "Purchase Price") upon presentation and
     surrender of this Rights Certificate with the Form of Election to Purchase
     set forth on the reverse side hereof and the certificate contained therein
     duly completed and executed, accompanied by a signature guarantee and such
     other documentation as the Rights Agent may reasonably request. The number
     of Rights evidenced by this Rights Certificate (and the number of shares
     which may be purchased upon exercise thereof) set forth above, and the
     Purchase Price per share set forth above, are the number and Purchase Price
     as of March 29, 2000, based on the shares of Common Stock of the Company as
     constituted at such date.

     As more fully set forth in the Rights Agreement, upon the occurrence of a
Common Stock Event (as such term is defined in the Rights Agreement), if the
Rights evidenced by this Rights Certificate are beneficially owned by (i) an
Acquiring Person or an Affiliate of an Acquiring Person (as each such term is
defined in the Rights Agreement) or (ii) a Disqualified Transferee (as defined
in the Rights Agreement), such Rights shall automatically become null and void
and no holder hereof shall have any right with respect to such Rights from and
after the occurrence of such Common Stock Event.

     The Rights evidenced by this Rights Certificate shall not be exercisable,
and shall be void so long as held, by a holder in any jurisdiction where the
requisite qualification to the issuance to such holder, or the exercise by such
holder, of the Rights in such jurisdiction shall not have been obtained or be
obtainable.

     As provided in the Rights Agreement, the Purchase Price and the number of
whole or fractional shares of 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.

     In the circumstances described in Section 13 of the Rights Agreement, the
securities issuable upon the exercise of the Rights evidenced hereby shall be
the common stock or similar equity securities or equity interests of an entity
other than the Company.

     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

                                      B-2

<PAGE>   52

hereunder of the Rights Agent, the Company, and the holders of the Rights
Certificates, which limitations of rights include the temporary suspension of
the exercisability of such Rights under the specific circumstances set forth in
the Rights Agreement. Copies of the Rights Agreement are on file at the office
of the Rights Agent designated for such purpose and may be obtained by the
holder of any Rights upon written request to the Rights Agent.

     This Rights Certificate, with or without other Rights Certificates, upon
surrender at the office of the Rights Agent designated for such purpose,
accompanied by a signature guarantee and such other documentation as the Rights
Agent may reasonably request, 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 whole or fractional shares of
Preferred Stock (or other consideration, as the case may be) 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 Rights Certificate may be redeemed by the Company by a majority vote of the
Board (as defined in the Rights Agreement) then in office at any time prior to
the earlier of (i) the Distribution Date or (ii) the Close of Business (as
defined in the Rights Agreement) on the Expiration Date, at a redemption price
of $.01 per Right (which amount is subject to adjustment as provided in the
Rights Agreement).

     The Company is not obligated to issue whole or fractional shares of
Preferred Stock (or other securities) upon the exercise of any Right or Rights
evidenced hereby, but in lieu thereof a cash payment may be made at the election
of the Company, 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 Preferred Stock or
of any other securities of the Company which may at any time be issuable on the
exercise hereof, nor shall anything contained in the Rights Agreement or herein
be construed to confer upon the holder hereof, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any action by the Company, or to receive notice of meetings
or other actions affecting stockholders (except as provided in the Rights
Agreement), or to receive dividends or subscription rights, or otherwise, until
the Right or Rights evidenced by this Rights Certificate shall have been
exercised 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.

                                      B-3
<PAGE>   53

     WITNESS the facsimile signature of the proper officers and the seal of the
Company. Dated as of _________________, ____.

                                           SUMMIT TECHNOLOGY, INC.

                                           By______________________________
                                             Title:

ATTEST:

--------------------
Title:

Countersigned:

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

FLEET NATIONAL BANK, as Rights Agent

By____________________
  Authorized Signatory

  Date of Countersignature:

                                      B-4
<PAGE>   54

                  [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)

______________________________________________________________________ whose
social security or tax identification number is ______________, the Rights
evidenced by this Rights Certificate, together with all right, title and
interest herein, and does hereby irrevocably constitute and appoint
____________________ Attorney, to transfer the within Rights Certificate on the
books of the within-named Company, with full power of substitution.

Dated: _________________________, ____.

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

Signature Guaranteed:*

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

* Signature must be guaranteed by an "Eligible Guarantor Institution" (with
membership in an approved signature guarantee medallion program) pursuant to
Rule 17Ad-15 of the Securities Exchange Act of 1934.

                                      B-5
<PAGE>   55

                                   CERTIFICATE

     The undersigned hereby certifies by checking the appropriate boxes that:

     (1)  the Rights evidenced by this Rights Certificate [ ] are [ ] are not
being sold, assigned and transferred by or on behalf of a Person who is or was
an Acquiring Person or an Affiliate of an Acquiring Person (as each such term is
defined in the Rights Agreement); and

     (2)  after due inquiry and to the best knowledge of the undersigned, it [ ]
did [ ] did not acquire the Rights evidenced by this Rights Certificate after
the occurrence of a Common Stock Event from any Person who is, was or
subsequently became an Acquiring Person or an Affiliate of an Acquiring Person.

Dated:____________________                        ______________________________
                                                             Signature

Signature Guaranteed:*

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

                                     NOTICE

     The signature to the foregoing Assignment and Certificate must correspond
to the name as written upon the face of this Rights Certificate in every
particular, without alteration or enlargement or any change whatsoever.

                                      B-6
<PAGE>   56

                          FORM OF ELECTION TO PURCHASE

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

To Summit Technology, Inc.

     The undersigned hereby irrevocably elects to exercise _________________
Rights represented by this Rights Certificate to purchase the number of one
one-thousandths of a share of Preferred Stock (or other securities) issuable
upon the exercise of such Rights and requests that certificates for such shares
be issued in the name of:

Please insert social security
or other identifying number

_____________________________________________________________________________

_____________________________________________________________________________
                   (Please print name and address)

If such number of Rights shall not be all the Rights evidenced by this 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 must conform in all
                                           respects to name of holder as
                                           specified on the face of this Rights
                                           Certificate)

Signature Guaranteed:**

________________

** Signature must be guaranteed by an "Eligible Guarantor Institution" (with
membership in an approved signature guarantee medallion program) pursuant to
Rule 17Ad-15 of the Securities Exchange Act of 1934.

                                      B-7
<PAGE>   57

                                   CERTIFICATE

     The undersigned hereby certifies by checking the appropriate boxes that:

     (1) the Rights evidenced by this Rights Certificate [ ] are [ ] are not
being exercised by or on behalf of a Person who is or was an Acquiring Person or
an Affiliate of any such Acquiring Person (as each such term is defined in the
Rights Agreement); and

     (2) after due inquiry and to the best knowledge of the undersigned, it [ ]
did [ ] did not acquire the Rights evidenced by this Rights Certificate after
the occurrence of a Common Stock Event (as such term is defined in the Rights
Agreement) from any Person who is, was, or subsequently became an Acquiring
Person or an Affiliate of an Acquiring Person.

Dated: _________________, ____                    _________________________
                                                          Signature

Signature Guaranteed:***

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

*** Signature must be guaranteed by an "Eligible Guarantor Institution" (with
membership in an approved signature guarantees medallion program) pursuant to
Rule 17Ad-15 of the Securities Exchange Act of 1934.

                                      B-8

<PAGE>   58

                                                                       EXHIBIT C

                             SUMMIT TECHNOLOGY, INC.

                           SUMMARY OF PURCHASE RIGHTS

     On March 28, 2000, Summit Technology, Inc. declared a dividend distribution
of one preferred stock purchase right for each share of Common Stock. Each Right
entitles the registered holder to purchase from the Company after the
Distribution Date described below one-thousandth of a share of its Series A
Preferred Stock. The exercise price is $_____ for each one-thousandth share of
Preferred Stock. The distribution of Rights is payable on March 29, 2000 to the
record holders of Common Stock at the Close of Business on that date. One Right
will also be issued for each share of Common Stock issued between March 29, 2000
and the Distribution Date.

     Exercisability of the Rights; Distribution Date. The Rights are not
exercisable until the Distribution Date. The Distribution Date would occur, if
ever, ten business days after either of the following events:

     *    A public announcement that a person or group (an "Acquiring Person")
has acquired, or obtained the right to acquire, beneficial ownership of 15.0% or
more of the Company's outstanding Common Stock (the "Stock Acquisition Date") or

     *    The commencement or announcement of an intention to make a tender
offer or exchange offer that would result in a person or group owning 15.0% or
more of the Company's outstanding Common Stock.

     Mergers, Asset Sales and Self-Dealing Transactions. If after the Stock
Acquisition Date the Company is acquired in a merger or other business
combination, or 25% or more of its assets or earning power is sold, proper
provision is to be made so that each holder of a Right would have the right to
receive, upon exercise of the Right, that number of shares of common stock of
the acquiring company which at the time has a market value of two times the
exercise price of the Right.

     In the event that:

     (1) the Company is the surviving corporation in a merger with an Acquiring
Person and its Common Stock is not changed or exchanged, or

                                      C-1

<PAGE>   59

     (2) an Acquiring Person engages in one of a number of self-dealing
transactions specified in the Rights Agreement described below, or

     (3) during such time as there is an Acquiring Person any recapitalization,
reorganization or other transaction involving the Company occurs which result in
such Acquiring Person's ownership interest being increased by more than 1%,

then each holder of a Right would have the right to receive, upon exercise of
the Right, that number of shares of Common Stock (or, in certain circumstances,
cash, property or other securities of the Company) having a market value of two
times the exercise price of the Right.

     Following the occurrence of any of the events described in this section,
any Rights beneficially owned by any Acquiring Person would immediately become
null and void.

     Exchange Option. The Board may, at its option, at any time after any person
becomes an Acquiring Person, exchange all or part of the then outstanding and
exercisable Rights for shares of Common Stock at an exchange ratio of one share
of Common Stock per Right. The Board, however, may not effect an exchange at any
time after any person (other than (i) the Company, (ii) any subsidiary of the
Company, (iii) any employee benefit plan of the Company or any such subsidiary
or any entity holding Common Stock for or pursuant to the terms of any such
plan), together with all affiliates of such person, becomes the beneficial owner
of 50% or more of the Common Stock then outstanding. Immediately upon the action
of the Board ordering the exchange of any Rights and without any further action
and without any notice, the right to exercise such Rights will terminate and the
only right thereafter of a holder of such Rights will be to receive that number
of shares of Common Stock equal to the number of such Rights held by the holder.

     Transferability of Rights. Until the Distribution Date, the Common Stock
Certificates will evidence the Rights, and the transfer of the Common Stock
certificates will constitute a transfer of the Rights. After the Distribution
Date, separate certificates evidencing the Rights would be mailed to holders of
record of the Company's Common Stock as of the Close of Business on the
Distribution Date, and such separate Rights Certificates alone would evidence
the Rights.

     Redemption. The Board of Directors, by a majority vote, may redeem the
Rights at any time at a redemption price of $.01 per Right at any time before
the earlier of the Distribution Date or the close of business on the Expiration
Date described below. Immediately upon such redemption, the right to exercise
the Rights will terminate, and the Rights Holders will become entitled only to
receive the Redemption Price.

     Expiration Date of Rights. If not previously exercised or redeemed, the
Rights will expire on March 28, 2010.

                                      C-2
<PAGE>   60

     Anti-Dilution Adjustment. The exercise price, the redemption price, the
exchange ratio and the number of shares of the Preferred Stock or other
securities or property issuable upon exercise of the Rights are subject to
adjustment from time to time to prevent dilution under the following
circumstances:

     *    in the event of a stock dividend on, or a subdivision, combination or
reclassification of the Preferred Stock, or

     *    upon the grant to holders of the Preferred Stock of certain rights or
warrants to subscribe for shares of the Preferred Stock or convertible
securities at less than the current market price, or

     *    upon the distribution to holders of the Preferred Stock of evidences
of indebtedness or assets (excluding regular quarterly cash dividends out of the
earnings or retained earnings of the Company and dividends payable in shares of
Preferred Stock) or of subscription rights or warrants (other than those
referred to above).

     With certain exceptions, no adjustment in the exercise price will be
required until cumulative adjustments require an adjustment of at least 1% in
such price. At the Company's option, cash (based on the market price on the last
trading date prior to the date of the exercise) will be paid instead of issuing
fractional shares of any securities (other than fractional shares of Preferred
Stock in integral multiples of one-thousandth of a share).

     No Shareholder Rights. A Right holder, as such, has no rights as a
shareholder of the Company, including, without limitation, the right to vote or
receive dividends.

     Amendments. Any of the provisions of the Rights Agreement may be amended by
the Board of Directors prior to the Distribution Date without the approval of
any holders of the Rights. After the Distribution Date, the Board of Directors
may amend the Rights Agreement to cure any ambiguity, to make changes which do
not adversely affect the interests of holders of Rights (excluding the interests
of any Acquiring Person) or to shorten or lengthen any time period under the
Rights Agreement. A majority vote of the Board of Directors is required.

     Tax Consequences. Although the Company believes that neither the
distribution of the Rights nor the subsequent separation of the Rights on the
Distribution Date should be taxable to the stockholders or the Company,
stockholders may, depending upon the circumstances, realize taxable income upon
the occurrence of an event described under "Mergers, Asset Sales and
Self-Dealing Transactions."

     Rights Agreement. The terms of the Rights are set forth in a Rights
Agreement between the Company and Fleet National Bank, as Rights Agent. A copy
of the Rights Agreement is an Exhibit to Form 8-A filed with the Securities and
Exchange Commission. A

                                      C-3

<PAGE>   61

copy of the Rights Agreement is available free of charge from the Rights Agent
at the following address:

                           Fleet National Bank
                           c/o EquiServe Limited Partnership
                           150 Royall Street
                           Canton, MA  02021

                           Attn:  Client Administration
                           (Summit Technology, Inc. Rights Agreement)

This summary does not purport to be complete and is qualified in its entirety by
reference to the Rights Agreement, which is incorporated in this summary by
reference.

                                      C-4<PAGE>   1
                                                                   EXHIBIT 10.12

                      AMENDMENT TO TRANSACTION DOCUMENTS

         THIS AMENDMENT (referred to herein as this "Amendment"), dated as of
November 16, 1999, by and among PRIMARK CORPORATION, a Michigan corporation (the
"Borrower"), the Lenders party to the Revolving Credit Agreement referred to
below, the Lenders party to the Note Backup Agreement referred to below (such
agreements being referred to collectively as the "Credit Facilities"), and
MELLON BANK, N.A., a national banking association, as Agent under each such
Credit Facility.

                                    RECITALS:

     A. The Borrower has entered into (a) a Revolving Credit Agreement (as
amended, the "Revolving Credit Agreement") dated as of February 7, 1997 among
Primark Corporation (the "Borrower"), the Lenders parties thereto from time to
time, the Issuing Banks referred to therein, and Mellon Bank, N.A., as Agent,
and (b) a Note Backup Agreement (as amended, the "Note Backup Agreement") dated
as of February 7, 1997 among the Borrower, the Lenders parties thereto from time
to time, the Issuing Bank referred to therein, and Mellon Bank, N.A., as Agent
(collectively, the "Credit Facilities"). The Credit Facilities have been amended
by a letter agreement dated February 21, 1997, an Amendment to Transactions
Documents dated as of May 1, 1997, an Amendment to Transaction Documents dated
as of June 30, 1997, an Amendment to Transaction Documents dated as of December
1, 1997, an Agreement dated as of March 6, 1998 (which restated and superseded
all such prior amendments), an Amendment to Transaction Documents dated as of
May 8, 1998, an Amendment to Transaction Documents dated as of June 15, 1998, an
Amendment to Transaction Documents dated as of September 10, 1998 and a Consent
and Amendment to Transaction Documents dated as of December 10, 1998.

         B. The parties hereto desire to amend further the Credit Facilities as
set forth herein. Capitalized terms used herein and not otherwise defined shall
have the meanings given them in, or by reference in, the Collateral Agency
Agreement.

         NOW THEREFORE, the parties hereto, intending to be legally bound,
hereby agree as follows:

SECTION 1. LOANS, ADVANCES AND INVESTMENTS.

(a) Section 7.05 of each Credit Facility is amended by (i) relettering existing
clauses (k) and (l) as clauses (l) and (m) and (ii) by inserting the following
new clause (k):

         (k) Equity investment of up to [pound]3,500,000 in The Money Channel;

SECTION 2. EFFECTIVENESS AND EFFECT, ETC.

         (a) EFFECTIVENESS. This Amendment shall become effective on the date
when Mellon Bank, N.A., as Agent under each of the Revolving Credit Agreement
and the Note Backup Agreement, shall have received counterparts hereof duly
executed by the Borrower and by the "Required Lenders" and the "Agent" under
each of the Revolving Credit Agreement and the Note Backup Agreement.

         (b) EFFECT. The Revolving Credit Agreement and the Note Backup
Agreement, in the forms initially executed and as previously amended and as
amended hereby, are and shall continue to be

<PAGE>   2

in full force and effect, and are hereby in all respects ratified and confirmed.
Except to the extent expressly set forth herein, the execution delivery and
effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy under any of the foregoing agreements and instruments or
constitute a waiver of any provision of any of the foregoing agreements and
instruments.

SECTION 3. MISCELLANEOUS. This Amendment may be executed in any number of
counterparts and by the different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed to be an original and
all of which taken together shall constitute but one and the same document.
Section and other headings herein are for reference purposes only and shall not
affect the interpretation of this Amendment in any respect. This agreement shall
be governed by and construed in accordance with the laws of the Commonwealth of
Pennsylvania, without regard to choice of law rules. This Amendment is a
requested amendment within the meaning of Section 10.06(a) of each Credit
Facility.

                  [Remainder of page intentionally left blank]

                                       2

<PAGE>   3

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                           PRIMARK CORPORATION

                           By /s/ Stephen H. Curran
                              --------------------------------------------------
                              Name: Stephen H. Curran
                              Title:  EVP & CFO

                           MELLON BANK, N.A.,
                           Individually and as Agent under each
                           Credit Facility

                           By /s/ R.Jane Westrich
                              --------------------------------------------------
                              R. Jane Westrich
                              Vice President

CONSENTED AND AGREED:

BANKBOSTON, N.A.

By /s/ Jorge A. Schwarz
   --------------------------------
   Title: Director

NATIONSBANK, N.A.

By /s/ Michael R. Heredia
   --------------------------------
   Title: Managing Director

THE CHASE MANHATTAN BANK

By /s/ Robert Dellatorre
   --------------------------------
   Title: Asst. Vice President

                                       3
<PAGE>   4

FIRST AMERICAN NATIONAL BANK

By /s/ Hope Stewart
   --------------------------------
   Title:

WACHOVIA BANK, N.A.

By /s/ John Rafferty
   --------------------------------
   Title: SVP

FLEET NATIONAL BANK

By /s/ Deanne Horn
   --------------------------------
   Title: Vice President

THE HUNTINGTON NATIONAL BANK

By /s/ Robert Friend
   --------------------------------
   Title: Vice President

<PAGE>   5

                  AMENDMENT TO TRANSACTION DOCUMENTS AND WAIVER

     THIS AMENDMENT TO TRANSACTION DOCUMENTS AND WAIVER (referred to herein as
this "Amendment"), dated as of December 31, 1999, by and among PRIMARK
CORPORATION, a Michigan corporation (the "Borrower"), the Lenders party to the
Revolving Credit Agreement referred to below, the Lenders party to the Note
Backup Agreement referred to below (such agreements being referred to
collectively as the "Credit Facilities"), and MELLON BANK, N.A., a national
banking association, as Agent under each such Credit Facility.

                                   RECITALS:

         A. The Borrower has entered into (a) a Revolving Credit Agreement (as
amended, the "Revolving Credit Agreement") dated as of February 7, 1997 among
Primark Corporation (the "Borrower"), the Lenders parties thereto from time to
time, the Issuing Banks referred to therein, and Mellon Bank, N.A., as Agent,
and (b) a Note Backup Agreement (as amended, the "Note Backup Agreement") dated
as of February 7, 1997 among the Borrower, the Lenders parties thereto from time
to time, the Issuing Bank referred to therein, and Mellon Bank, N.A., as Agent
(collectively, the "Credit Facilities"). The Credit Facilities have been amended
by a letter agreement dated February 21, 1997, an Amendment to Transactions
Documents dated as of May 1, 1997, an Amendment to Transaction Documents dated
as of June 30, 1997, an Amendment to Transaction Documents dated as of December
1, 1997, an Agreement dated as of March 6, 1998 (which restated and superseded
all such prior amendments), an Amendment to Transaction Documents dated as of
May 8, 1998, an Amendment to Transaction Documents dated as of June 15, 1998, an
Amendment to Credit Facilities dated as of September 10, 1998, a Consent and
Amendment to Transaction Documents dated as of December 10, 1998 and an
Amendment to Transaction Documents dated as of November 16, 1999.

         B. The parties hereto desire to provide for the consent of the Required
Lenders to amend further the Credit Facilities as set forth herein. Capitalized
terms used herein and not otherwise defined shall have the meanings given them
in, or by reference in, the Credit Facilities.

         NOW THEREFORE, the parties hereto, intending to be legally bound,
hereby agree as follows:

SECTION 1. CERTAIN AMENDMENTS TO THE CREDIT FACILITIES.

(a) AMENDMENTS RELATING TO SCORELAB STOCK OPTIONS.

(i) Section 7.05 of each of the Revolving Credit Agreement and the Note Backup
Agreement is amended by relettering subsections (l) and (m) as subsections (m)
and (n), and by adding the following new subsection (l):

                  (l) Ownership of Shares of Capital Stock of, and capital
         contributions, loans and Advances to, Scorelab, Inc. so long as Primark
         and its Wholly-Owned Subsidiaries own 85% or more the Shares of Capital
         Stock of Scorelab, Inc.

(ii) Section 7.06 of each of the Revolving Credit Agreement and the Note Backup
Agreement is amended by (A) deleting the "and" at the end of subsection (b), (B)
deleting the period and substituting a semi-colon at the end of subsection (c)
and (C) adding the following new subsection (d):

                  (d) Scorelab, Inc. may (i) issue to employees up to 15% of its
         Shares of Capital Stock on a fully diluted basis pursuant to options
         granted pursuant to the Scorelab Stock Option Plan, (ii) repurchase
         such shares of Capital Stock from such employees to the extent required
         by the Scorelab Stockholders' Agreements and (iii) so long as no Event
         of Default or Potential Default shall exist on the date of such
         repurchase, or immediately thereafter and after giving effect thereto,
         repurchase such Shares of Capital Stock from such employees to the
         extent permitted by the Scorelab Stockholders' Agreements.

<PAGE>   6

(iii) Section 7.09 of each of the Revolving Credit Agreement and the Note Backup
Agreement is amended by relettering subsection (g) as subsection (h) and by
adding the following new subsection (g)

                  (g) Issuance of stock options by Scorelab, Inc. for up to 15%
         of its Shares of Capital Stock on a fully diluted basis pursuant to the
         Scorelab Stock Option Plan, issuance of Shares of Capital Stock by
         Scorelab, Inc. pursuant to such options and repurchase of Shares of
         Capital Stock of Scorelab, Inc. to the extent permitted by Section
         7.06.

(iv) The following new definitions are added to Annex A to each of the Revolving
Credit Agreement and the Note Backup Agreement

         "Scorelab Stock Option Plan" shall mean the 1999 Scorelab
         Stock Option Plan as in effect on the date hereof.

         "Scorelab Stockholders' Agreement" shall mean stockholders agreements
         between Scorelab and a Person acquiring Shares of Capital Stock of
         Scorelab pursuant to the Scorelab Stock Option Plan in the form
         attached to the Scorelab Stock Option Plan.

(b) EVERGREEN LETTERS OF CREDIT. Section 3.01(b) of the Revolving Credit
Agreement is deleted and the following is substituted:

                  (b) TERMS OF LETTERS OF CREDIT. The Borrower shall not request
         any Letter of Credit to be issued, nor shall the Issuing Banks be
         obligated to issue any Letter of Credit, except within the following
         limitations: each Letter of Credit (i) shall have an expiration date no
         later than the earlier of (A) 12 months after the date of issuance
         thereof, or (B) ten days before the Revolving Credit Maturity Date,
         (ii) shall be denominated in Dollars, (iii) shall be payable only
         against sight drafts (and not time drafts), and (iv) shall be in a
         minimum stated amount of $50,000. Letter of Credit Exposure with
         respect to evergreen Letters of Credit shall not exceed $1,500,000 in
         the aggregate at any time.

SECTION 2. WAIVER OF CONSOLIDATED FIXED CHARGE COVERAGE RATIO. The Lenders
hereby waive compliance with the requirements of Section 7.01(b) of each Credit
Facility at December 31, 1999, PROVIDED, the foregoing waiver will be effective
only if the Consolidated Fixed Charge Coverage Ratio for the period of four
consecutive fiscal quarters ending on December 31, 1999 shall not be less than
1.0 to 1.

SECTION 3. EFFECTIVENESS AND EFFECT, ETC.

(a) EFFECTIVENESS. This Amendment shall become effective as of December 31,
1999, on the date (the "Effective Date") when each of the following conditions
has been satisfied:

                  (i) Mellon Bank, N.A., as Agent under each of the Revolving
         Credit Agreement and the Note Backup Agreement and as Collateral Agent,
         shall have received counterparts hereof duly executed by the Borrower,
         by each of the "Required Lenders" and the "Agent" under each of the
         Revolving Credit Agreement and the Note Backup Agreement.

                  (ii) The Borrower shall have paid to the Agent, for the
         account of each Lender that executes and delivers a copy of this
         Amendment, an amendment and waiver fee equal to .05% of such Lender's
         Revolving Credit Committed Amount under the Revolving Credit Agreement
         as in effect on January 1, 2000.

In the event that the Effective Date occurs, the Agent shall promptly notify
each of the Lenders of such fact.

(b) EFFECT. The Revolving Credit Agreement, the Note Backup Agreement, the
Collateral Agency Agreement and the Borrower Pledge Agreement, in the forms
initially executed and as previously amended and as amended hereby, are and
shall continue to be in full force and effect, and are hereby in all respects
ratified and confirmed. Except to

                                       2

<PAGE>   7

the extent expressly set forth herein, the execution, delivery and effectiveness
of this Amendment shall not operate as a waiver of any right, power or remedy
under any of the foregoing agreements and instruments or constitute a waiver of
any provision of any of the foregoing agreements and instruments.

SECTION 4. MISCELLANEOUS. This Amendment may be executed in any number of
counterparts and by the different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed to be an original and
all of which taken together shall constitute but one and the same document.
Section and other headings herein are for reference purposes only and shall not
affect the interpretation of this Amendment in any respect. This Amendment shall
be governed by and construed in accordance with the laws of the Commonwealth of
Pennsylvania, without regard to choice of law rules. This Amendment is a
requested amendment within the meaning of Section 10.06(a) of each Credit
Facility.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       3
<PAGE>   8

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                           PRIMARK CORPORATION

                           By
                              --------------------------------------------------
                              Name: Stephen H. Curran
                              Title:  EVP & CFO

                           MELLON BANK, N.A.,
                           individually and as Agent under each
                           Credit Facility

                           By
                              --------------------------------------------------
                              R. Jane Westrich
                              Vice President

CONSENTED AND AGREED:

BANKBOSTON, N.A.

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

BANK OF AMERICA, N.A.

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

THE CHASE MANHATTAN BANK

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

FIRST AMERICAN NATIONAL BANK

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

                                       4

<PAGE>   9

WACHOVIA BANK, N.A.

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

FLEET NATIONAL BANK

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

THE HUNTINGTON NATIONAL BANK

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

                                       5

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