Document:

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                                                              Exhibit 4.1 to 8-K

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                                 TERADYNE, INC.
                                       AND
                               FLEET NATIONAL BANK
                                 AS RIGHTS AGENT

                                   ----------

                                RIGHTS AGREEMENT

                          DATED AS OF NOVEMBER 17, 2000

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                                TABLE OF CONTENTS
                                -----------------

                                                                            PAGE
                                                                            ----

SECTION 1.   CERTAIN DEFINITIONS.............................................  1

SECTION 2.   APPOINTMENT OF RIGHTS AGENT.....................................  5

SECTION 3.   ISSUANCE OF RIGHT CERTIFICATES..................................  5

SECTION 4.   FORM OF RIGHT CERTIFICATES......................................  6

SECTION 5.   COUNTERSIGNATURE AND REGISTRATION...............................  6

SECTION 6.   TRANSFER, SPLIT UP, COMBINATION AND EXCHANGE OF RIGHT
             CERTIFICATES; MUTILATED, DESTROYED, LOST OR STOLEN
             RIGHT CERTIFICATES..............................................  7

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

SECTION 8.   CANCELLATION AND DESTRUCTION OF RIGHT CERTIFICATES..............  9

SECTION 9.   STATUS AND AVAILABILITY OF PREFERRED SHARES.....................  9

SECTION 10.  COMMON SHARES RECORD DATE....................................... 10

SECTION 11.  ADJUSTMENT OF PURCHASE PRICE, NUMBER OF SHARES OR
             NUMBER OF RIGHTS................................................ 11

SECTION 12.  CERTIFICATE OF ADJUSTMENT....................................... 17

SECTION 13.  CONSOLIDATION, MERGER OR SALE OR TRANSFER OF ASSETS
             OR EARNING POWER................................................ 17

SECTION 14.  FRACTIONAL RIGHTS AND FRACTIONAL SHARES......................... 18

SECTION 15.  RIGHTS OF ACTION................................................ 19

SECTION 16.  AGREEMENT OF RIGHT HOLDERS...................................... 19

SECTION 17.  RIGHT CERTIFICATE HOLDER NOT DEEMED A STOCKHOLDER............... 20

SECTION 18.  CONCERNING THE RIGHTS AGENT..................................... 20

SECTION 19.  MERGER OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT....... 21

SECTION 20.  DUTIES OF RIGHTS AGENT.......................................... 21

SECTION 21.  CHANGE OF RIGHTS AGENT.......................................... 23

SECTION 22.  ISSUANCE OF NEW RIGHT CERTIFICATES.............................. 23

SECTION 23.  REDEMPTION AND TERMINATION...................................... 24

SECTION 24.  EXCHANGE.........................................................25

SECTION 25.  NOTICE OF CERTAIN EVENTS........................................ 25

SECTION 26.  NOTICES......................................................... 26

SECTION 27.  SUPPLEMENTS AND AMENDMENTS...................................... 27

SECTION 28.  SUCCESSORS...................................................... 27

SECTION 29.  BENEFITS OF THIS AGREEMENT...................................... 27

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SECTION 30.  SEVERABILITY.................................................... 27

SECTION 31.  GOVERNING LAW................................................... 28

SECTION 32.  COUNTERPARTS.................................................... 28

SECTION 33.  DESCRIPTIVE HEADINGS............................................ 28

SECTION 34.  ADMINISTRATION.................................................. 28

EXHIBITS:
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Exhibit A    Form of Rights Certificate
Exhibit B    Summary of Rights to Purchase Common Shares

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                                RIGHTS AGREEMENT

         Agreement, dated as of November 17, 2000, between Teradyne, Inc., a
Massachusetts corporation (the "COMPANY"), and Fleet National Bank, Inc., as
rights agent (the "RIGHTS AGENT").

         WHEREAS, effective November 16, 2000, the Board of Directors of the
Company has authorized and declared a dividend of one common share purchase
right (a "RIGHT") for each share of Common Stock, par value $0.125 per share, of
the Company (a "COMMON SHARE") outstanding on the Close of Business on November
27, 2000 (the "RECORD DATE") and has authorized the issuance of one Right with
respect to each additional Common Share that shall become outstanding between
the Record Date and the earliest of (a) the Close of Business on the
Distribution Date, (b) the Redemption Date and (c) the Close of Business on the
Final Expiration Date. Each Right represents the right to purchase one Common
Share, or such different amount and/or kind of securities as shall be
hereinafter provided.

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

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

         "ACQUIRING PERSON" shall mean any Person who or which, together with
all Affiliates and Associates of such Person, shall be the Beneficial Owner of
20% or more of the Common Shares of the Company then outstanding but shall not
include (i) the Company, (ii) any Subsidiary of the Company, (iii) any employee
benefit plan of the Company or any Subsidiary of the Company, or (iv) any entity
holding Common Shares for or pursuant to the terms of any such employee benefit
plan. Notwithstanding the foregoing:

                  (1)      no Person shall become an "ACQUIRING PERSON" as the
         result of an acquisition of Common Shares by the Company which, by
         reducing the number of shares outstanding, increases the proportionate
         number of shares beneficially owned by such Person to 20% (or such
         other percentage as would otherwise result in such person becoming an
         Acquiring Person) or more of the Common Shares of the Company then
         outstanding; PROVIDED, HOWEVER, that if a Person shall so become the
         Beneficial Owner of 20% (or such other percentage) or more of the
         Common Shares of the Company then outstanding by reason of an
         acquisition of Common Shares by the Company and shall, after such share
         purchases by the Company, become the Beneficial Owner of an additional
         1% of the outstanding Common Shares of the Company, then such Person
         shall be deemed to be an "ACQUIRING PERSON"; and

                  (2)      if the Board of Directors of the Company determines
         in good faith that a Person who would otherwise be an "ACQUIRING
         PERSON," as defined pursuant to the foregoing provisions of this
         paragraph, has become such inadvertently, and such Person divests as
         promptly as practicable a sufficient number of Common Shares so that
         such

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         Person would no longer be an "ACQUIRING PERSON," as defined pursuant to
         the foregoing provisions of this paragraph, then such Person shall not
         be deemed to have become an "ACQUIRING PERSON" for any purposes of this
         Agreement.

         "AFFILIATE" and "ASSOCIATE" shall have the respective meanings ascribed
to such terms in Rule 12b-2 of the Exchange Act and the Regulations under the
Exchange Act, as in effect on the date of this Agreement.

         A Person shall be deemed the "BENEFICIAL OWNER" of and shall be deemed
to "BENEFICIALLY OWN" any securities:

                  (i)      which such Person or any of such Person's Affiliates
         or Associates beneficially owns, directly or indirectly, for purposes
         of Section 13(d) of the Exchange Act and Rule 13d-3 of the Exchange Act
         Regulations (or any comparable or successor law or regulation);

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

                  (iii)    which are beneficially owned, directly or indirectly,
         by any other Person (or any Affiliate or Associate thereof) with which
         such Person or any of such Person's Affiliates or Associates has any
         agreement, arrangement or understanding (other than customary
         agreements with and between underwriters and selling group members with
         respect to a bona fide public offering of securities), written or
         otherwise, for the purpose of acquiring, holding, voting (except to the
         extent contemplated by the proviso to section (B) of the immediately
         preceding paragraph (ii)) or disposing of any securities of the
         Company; PROVIDED, HOWEVER, that in no case shall an officer or
         director of the Company be deemed (A) the Beneficial Owner of any
         securities beneficially owned by another

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         officer or director of the Company solely by reason of actions
         undertaken by such persons in their capacity as officers or directors
         of the Company or (B) the Beneficial Owner of securities held of record
         by the trustee of any employee benefit plan of the Company or any
         Subsidiary of the Company for the benefit of any employee of the
         Company or any Subsidiary of the Company, other than an officer or
         director, by reason of any influence that such officer or director may
         have over the voting of the securities held in the plan.

         Notwithstanding anything in this definition of Beneficial Ownership to
the contrary, the phrase "then outstanding," when used with reference to a
Person's Beneficial Ownership of securities of the Company, shall mean the
number of such securities then issued and outstanding together with the number
of such securities not then actually issued and outstanding which such Person
would be deemed to own beneficially hereunder.

         "BUSINESS DAY" shall mean any day other than a Saturday, Sunday, or a
day on which banking institutions in the Commonwealth of Massachusetts are
authorized or obligated by law or executive order to close.

         "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.

         "COMMON SHARES" when used with reference to the Company shall mean the
shares of common stock, par value $0.125 per share, of the Company. "COMMON
SHARES" when used with reference to any Person other than the Company shall mean
the capital stock (or equity interest) with the greatest voting power of such
other Person or, if such other Person is a Subsidiary of another Person, the
Person or Persons which ultimately control such first-mentioned Person.

         "COMMON STOCK EQUIVALENTS" shall have the meaning set forth in Section
11(a)(iii)(B)(3) hereof.

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

         "CURRENT PER SHARE MARKET PRICE" shall have the meaning set forth in
Section 11(d) hereof.

         "CURRENT VALUE" shall have the meaning set forth in Section
11(a)(iii)(A)(1) hereof.

         "DISTRIBUTION DATE" shall have the meaning set forth in Section 3(a)
hereof.

         "EQUIVALENT COMMON SHARES" shall have the meaning set forth in Section
11(b) hereof.

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

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

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         "EXCHANGE RATIO" shall have the meaning set forth in Section 24(a)
hereof.

         "FINAL EXPIRATION DATE" shall mean November 27, 2010.

         "PERSON" shall mean any individual, firm, corporation, partnership,
limited partnership, limited liability partnership, business trust, limited
liability company, unincorporated association or other entity, and shall include
any successor (by merger or otherwise) of such entity.

         "PURCHASE PRICE" shall have the meaning set forth in Section 7(b)
hereof.

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

         "REDEMPTION PRICE" shall have the meaning set forth in Section 23(a)
hereof.

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

         "REDEMPTION DATE" shall have the meaning set forth in Section 23(b)
hereof.

         "RIGHT CERTIFICATE" shall mean a certificate evidencing a Right in
substantially the form of EXHIBIT A hereto.

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

         "SECTION 11(a)(ii) TRIGGER DATE" shall have the meaning set forth in
Section 11(a)(iii) hereof.

         "SHARES ACQUISITION DATE" shall mean the earlier of the date of (i) the
public announcement by the Company or an Acquiring Person that an Acquiring
Person has become such or (ii) the public disclosure of facts by the Company or
an Acquiring Person indicating that an Acquiring Person has become such.

         "SPREAD" shall have the meaning set forth in Section 11(a)(iii)(A)(2)
hereof.

         "SUBSIDIARY" of any Person shall mean any Person of which a majority of
the voting power of the voting equity securities or equity interest is owned,
directly or indirectly, by such Person.

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

         "SUMMARY OF RIGHTS" shall mean the Summary of Rights to Purchase Common
Shares in substantially the form of EXHIBIT B hereto.

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

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         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 Shares) in accordance with the terms and conditions
hereof, and the Rights Agent hereby accepts such appointment. The Company may
from time to time appoint such co-Rights Agents as it may deem necessary or
desirable, 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. ISSUANCE OF RIGHT CERTIFICATES.

                  (a)      Until the earlier of (i) the Close of Business on the
Shares Acquisition Date or (ii) the tenth Business Day (or such later date as
may be determined by action of the Board of Directors prior to such time as any
Person becomes an Acquiring Person) after the date of the commencement by any
Person (other than the Company, any Subsidiary of the Company, any employee
benefit plan of the Company or of any Subsidiary of the Company or any entity
holding Common Shares for or pursuant to the terms of any such plan) of, or of
the first public announcement of the intention of any Person (other than any of
the Persons referred to in the preceding parenthetical) to commence, a tender or
exchange offer the consummation of which would result in any Person becoming the
Beneficial Owner of Common Shares aggregating 20% or more of the then
outstanding Common Shares (such date being herein referred to as the
"DISTRIBUTION DATE"), (x) the Rights will be evidenced (subject to the
provisions of Section 3(b) hereof) by the certificates for Common Shares
registered in the names of the holders thereof (which certificates shall also be
deemed to be Right Certificates) and not by separate Right Certificates, and (y)
the right to receive Right Certificates will be transferable only in connection
with the transfer of Common Shares. As soon as practicable after the
Distribution Date, the Company will prepare and execute, the Rights Agent will
countersign, and the Company will send or cause to be sent (and the Rights Agent
will, if requested, send) by first-class, insured, postage-prepaid mail, to each
record holder of Common Shares as of the Close of Business on the Distribution
Date, at the address of such holder shown on the records of the Company, a Right
Certificate evidencing one Right for each Common Share so held. As of the
Distribution Date, the Rights will be evidenced solely by such Right
Certificates.

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

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                  (c)      Certificates for Common Shares which become
outstanding (including, without limitation, reacquired Common Shares referred to
in the last sentence of this paragraph (c)) after the Record Date but prior to
the earliest of (i) the Close of Business on the Distribution Date, (ii) the
Redemption Date or (iii) the Close of Business on the Final Expiration Date
shall have impressed on, printed on, written on or otherwise affixed to them the
following legend:

                  This certificate also evidences and entitles the holder hereof
                  to certain Rights as set forth in a Rights Agreement between
                  Teradyne, Inc. and Fleet National Bank, dated as of November
                  17, 2000 (the "RIGHTS AGREEMENT"), the terms of which are
                  hereby incorporated herein by reference and a copy of which is
                  on file at the principal executive offices of Teradyne, Inc.
                  Under certain circumstances, as set forth in the Rights
                  Agreement, such Rights will be evidenced by separate
                  certificates and will no longer be evidenced by this
                  certificate. Teradyne, Inc. will mail to the holder of this
                  certificate a copy of the Rights Agreement without charge
                  after receipt of a written request therefor. Under certain
                  circumstances, as set forth in the Rights Agreement, Rights
                  that are or were acquired or beneficially owned by Acquiring
                  Persons (as defined in the Rights Agreement) may become null
                  and void.

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

         Section 4. FORM OF RIGHT CERTIFICATES. The Right Certificates (and the
forms of election to purchase Common Shares and of assignment to be printed on
the reverse thereof) shall be substantially the same as EXHIBIT A hereto and may
have such marks of identification or designation and such legends, summaries or
endorsements printed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Agreement, or as may be required to
comply with any applicable law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange or transaction
reporting system on which the Rights may from time to time be listed, or to
conform to usage. Subject to the other provisions of this Agreement, the Right
Certificates shall entitle the holders thereof to purchase such number of Common
Shares as shall be set forth therein at the Purchase Price, but the number of
Common Shares and the Purchase Price shall be subject to adjustment as provided
herein.

         Section 5. COUNTERSIGNATURE AND REGISTRATION.

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                  (a)      The Right Certificates shall be executed on behalf of
the Company by its President or any Vice President, and by its Treasurer or any
Assistant Treasurer, either manually or by facsimile signature, shall have
affixed thereto the Company's seal or a facsimile thereof, and shall be attested
by the Clerk or any Assistant Clerk of the Company, either manually or by
facsimile signature. The Right Certificates shall be countersigned by the Rights
Agent and shall not be valid for any purpose unless so countersigned, either
manually or by facsimile. In case any officer of the Company who shall have
signed any of the Right Certificates shall cease to be such officer of the
Company before countersignature by the Rights Agent and issuance and delivery by
the Company, such Right Certificates, nevertheless, may be countersigned by the
Rights Agent and issued and delivered by the Company with the same force and
effect as though the person who signed such Right Certificates had not ceased to
be such officer of the Company; and any Right Certificate may be signed on
behalf of the Company by any person who, at the actual date of the execution of
such Right Certificate, shall be a proper officer of the Company to sign such
Right Certificate, although at the date of the execution of this Rights
Agreement any such person was not such an officer.

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

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

                  (a)      Subject to the provisions of Section 14 hereof, at
any time after the Close of Business on the Distribution Date, and prior to the
earlier of the Redemption Date or the Close of Business on the Final Expiration
Date, any Right Certificate or Right Certificates (other than Right Certificates
representing Rights that have become void pursuant to Section 11(a)(ii) hereof
or that have been exchanged pursuant to Section 24 hereof) may be transferred,
split up, combined or exchanged for another Right Certificate or Right
Certificates, entitling the registered holder to purchase a like number of
Common Shares as the Right Certificate or Right Certificates surrendered then
entitled such holder to purchase. Any registered holder desiring to transfer,
split up, combine or exchange any Right Certificate or Right Certificates shall
make such request in writing delivered to the Rights Agent, and shall surrender
the Right Certificate or Right Certificates to be transferred, split up,
combined or exchanged at the principal office of the Rights Agent. Thereupon the
Rights Agent shall countersign and deliver to the person entitled thereto a
Right Certificate or Right Certificates, as the case may be, as so requested.
The Company may require payment of a sum sufficient for any tax or governmental
charge that may be imposed in connection with any transfer, split up,
combination or exchange of Right Certificates.

                  (b)      Upon receipt by the Company and the Rights Agent of
evidence reasonably satisfactory to them of the loss, theft, destruction or
mutilation of a Right Certificate,

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and, in case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to them, and, at the Company's request, reimbursement to the
Company and the Rights Agent of all reasonable expenses incidental thereto, and
upon surrender to the Rights Agent and cancellation of the Right Certificate if
mutilated, the Company will make and deliver a new Right Certificate of like
tenor to the Rights Agent for delivery to the registered holder in lieu of the
Right Certificate so lost, stolen, destroyed or mutilated.

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

                  (a)      The registered holder of any Right Certificate (other
than a holder whose Rights have become void pursuant to Section 11(a)(ii) hereof
or have been exchanged pursuant to Section 24 hereof) may exercise the Rights
evidenced thereby in whole or in part at any time after the Distribution Date
upon surrender of the Right Certificate, with the form of election to purchase
on the reverse side thereof duly executed, to the Rights Agent at its principal
office, together with payment of the Purchase Price for each Common Share as to
which the Rights are exercised, prior to the Close of Business on the Final
Expiration Date.

                  (b)      The purchase price for each Common Share to be
purchased upon the exercise of a Right shall initially be Five Hundred Forty
Dollars ($540.00) (the "PURCHASE PRICE"), shall be subject to adjustment from
time to time as provided in Sections 11 and 13 hereof and shall be payable in
lawful money of the United States of America in accordance with paragraph (c)
below.

                  (c)      Upon receipt of a Right Certificate representing
exercisable Rights, with the form of election to purchase and certificate duly
executed, accompanied by payment of the Purchase Price for the number of Common
Shares to be purchased, and an amount equal to any applicable transfer tax
required, to be paid by the holder of such Right Certificate in accordance with
Section 9 hereof in cash, or by certified check, cashier's check or money order
payable to the order of the Company, the Rights Agent shall thereupon promptly
(i) (A) requisition from any transfer agent of the Common Shares certificates
for the number of Common Shares to be purchased and the Company hereby
irrevocably authorizes its transfer agent to comply with all such requests, or
(B) requisition from any depository agent for the Common Shares depository
receipts representing such number of Common Shares as are to be purchased (in
which case certificates for the Common Shares represented by such receipts shall
be deposited by the transfer agent with the depository agent) and the Company
hereby directs the depository agent to comply with such request, (ii) when
appropriate, requisition from the Company the amount of cash to be paid in lieu
of issuance of fractional Common Shares in accordance with Section 14 hereof,
(iii) after receipt of such certificates or depository receipts, cause the same
to be delivered to or upon the order of the registered holder of such Right
Certificate, registered in such name or names as may be designated by such
holder and (iv) when appropriate, after receipt, deliver such cash to or upon
the order of the registered holder of such Right Certificate.

                  (d)      In case the registered holder of any Right
Certificate shall exercise less than all the Rights evidenced thereby, a new
Right Certificate evidencing Rights equivalent to the Rights remaining
unexercised shall be issued by the Rights Agent to the registered holder of such

                                      -8-
<PAGE>   12

Right Certificate or to such registered holder's duly authorized assigns,
subject to the provisions of Section 14 hereof.

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

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

         Section 9. STATUS AND AVAILABILITY OF COMMON SHARES.

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

                  (b)      Following the later of (i) the Distribution Date and
(ii) the termination of any period during which the exercisability of the Rights
are suspended, and for so long as the shares of Common Stock and other
securities issuable and deliverable upon the exercise of the Rights may be
listed on any national securities exchange, the Company shall use its best
efforts to cause all shares reserved for such issuance to be listed on such
exchange upon official notice of issuance upon such exercise.

                  (c)      The Company shall use its best efforts to (i) file,
as soon as practicable following the earliest date after the first occurrence of
a Triggering Event in which the consideration to be delivered by the Company
upon exercise of the Rights has been determined in accordance with this
Agreement, a registration statement under the Act, with respect to the Common
Stock or other securities purchasable upon exercise of the Rights on an
appropriate form, (ii) cause such registration statement to become effective as
soon as practicable after such filing, and (iii) cause such registration
statement to remain effective (with a prospectus at all

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<PAGE>   13

times meeting the requirements of the Act) until the earlier of (A) the date as
of which the Rights are no longer exercisable for such securities, and (B) the
Final Expiration Date. The Company will also take such action as may be
appropriate under, or to ensure compliance with, the securities or "blue sky"
laws of the various states in connection with the exercisability of the Rights.
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(c), the exercisability of the Rights in order to prepare and file such
registration statement and permit it to become effective. In addition, if the
Company shall determine that a registration statement is required following the
Distribution Date, the Company may temporarily suspend the exercisability of the
Rights until such time as a registration statement has been declared effective.
Upon any suspension of the exercisability of the Rights referred to in this
Section 9(c), the Company shall issue a public announcement stating that the
exercisability of the Rights has been temporarily suspended, as well as a public
announcement at such time as the suspension is no longer in effect.
Notwithstanding any provision of this Agreement to the contrary, 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 exercise thereof shall not be permitted
under the applicable law or a registration statement shall not have been
declared effective.

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

                  (e)      The Company covenants and agrees that it will use its
best efforts to cause to be reserved and kept available, out of its authorized
and unissued Common Shares or any Common Shares held in its treasury, the number
of Common Shares that will be sufficient to permit the exercise in full of all
outstanding Rights in accordance with Section 7 hereof. Upon the occurrence of
any events resulting in an increase in the aggregate number of Common Shares (or
other equity securities of the Company) issuable upon exercise of all
outstanding Rights above the number then reserved, the Company shall use its
best efforts to make appropriate increases in the number of shares so reserved.

         Section 10. COMMON SHARES RECORD DATE. Each person in whose name any
certificate for Common Shares is issued upon the exercise of Rights shall for
all purposes be deemed to have become the holder of record of the Common Shares
represented thereby on, and such certificate shall be dated, the date upon which
the Right Certificate evidencing such Rights was

                                      -10-
<PAGE>   14

duly surrendered and payment of the Purchase Price (and any applicable transfer
taxes) was made; PROVIDED, however, that if the date of such surrender and
payment is a date upon which the Common Stock (or other securities, as the case
may be) transfer books of the Company are closed, such Person shall be deemed to
have become the record holder of such shares on, and such certificate shall be
dated, the next succeeding Business Day on which the Common Stock (or other
securities, as the case may be) transfer books of the Company are open. Prior to
the exercise of the Rights evidenced thereby, the holder of a Right Certificate
shall not be entitled to any rights of a holder of Common Shares for which the
Rights shall be exercisable, including, without limitation, the right to vote,
to receive dividends or other distributions or to exercise any preemptive
rights, and shall not be entitled to receive any notice of any proceedings of
the Company, except as provided herein.

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

                  (a)      (i)      In the event the Company shall at any time
after the date of this Agreement (A) declare a dividend on the Common Shares
payable in Common Shares, (B) subdivide the outstanding Common Shares, (C)
combine the outstanding Common Shares into a smaller number of Common Shares or
(D) issue any shares of its capital stock in a reclassification of the Common
Shares (including any such reclassification in connection with a consolidation
or merger in which the Company is the continuing or surviving corporation),
except as otherwise provided in this Section 11(a), the Purchase Price in effect
at the time of the record date for such dividend or of the effective date of
such subdivision, combination or reclassification, and the number and kind of
shares of capital stock issuable on such date, shall be proportionately adjusted
so that the holder of any Right exercised after such time shall be entitled to
receive the aggregate number and kind of shares of capital stock which, if such
Right had been exercised immediately prior to such date, such holder would have
owned upon such exercise and been entitled to receive by virtue of such
dividend, subdivision, combination or reclassification; PROVIDED, HOWEVER, that
in no event shall the consideration to be paid upon the exercise of one Right be
less than the aggregate par value of the shares of capital stock of the Company
issuable upon exercise of one Right. If an event occurs which would require an
adjustment under both this Section 11(a)(i) and Section 11(a)(ii), the
adjustment provided for in this Section 11(a)(i) shall be in addition to, and
shall be made prior, to any adjustment required pursuant to Section 11(a)(ii).

                           (ii)     Subject to the following paragraph of this
subparagraph (ii) and to Section 24 of this Agreement, in the event any Person
shall become an Acquiring Person, each holder of a Right shall thereafter have a
right to receive, upon exercise thereof at a price equal to the then current
Purchase Price multiplied by the number of Common Shares for which a Right is
then exercisable, in accordance with the terms of this Agreement, such number of
Common Shares of the Company as shall equal the result obtained by (x)
multiplying the then current Purchase Price by the number of Common Shares for
which a Right is then exercisable and dividing that product by (y) 50% of the
then current per share market price of the Company's Common Shares (determined
pursuant to Section 11(d) hereof) on the date such Person became

                                      -11-
<PAGE>   15

an Acquiring Person. In the event that any Person shall become an Acquiring
Person and the Rights shall then be outstanding, the Company shall not take any
action that would eliminate or diminish the benefits intended to be afforded by
the Rights.

         From and after the occurrence of such an event, any Rights that are or
were acquired or beneficially owned by such Acquiring Person (or any Associate
or Affiliate of such Acquiring Person) on or after the earlier of (x) the date
of such event and (y) the Distribution Date shall be void and any holder of such
Rights shall thereafter have no right to exercise such Rights under any
provision of this Agreement. No Right Certificate shall be issued pursuant to
Section 3 that represents Rights beneficially owned by an Acquiring Person whose
Rights would be void pursuant to the preceding sentence or any Associate or
Affiliate thereof; no Right Certificate shall be issued at any time upon the
transfer of any Rights to an Acquiring Person whose Rights would be void
pursuant to the preceding sentence or any Associate or Affiliate thereof or to
any nominee of such Acquiring Person, Associate or Affiliate; and any Right
Certificate delivered to the Rights Agent for transfer to an Acquiring Person
whose Rights would be void pursuant to the preceding sentence or any Associate
or Affiliate thereof shall be canceled.

                           (iii)    In the event that the number of Common
Shares which are authorized by the Company's certificate of incorporation and
not outstanding or subscribed for, or reserved or otherwise committed for
issuance for purposes other than upon exercise of the Rights, are not sufficient
to permit the holder of each Right to purchase the number of Common Shares to
which he would be entitled upon the exercise in full of the Rights in accordance
with the foregoing subparagraph (ii) of paragraph (a) of this Section 11, or
should the Board of Directors so elect, the Company shall: (A) determine the
excess of (1) the value of the Common Shares issuable upon the exercise of a
Right (calculated as provided in the last sentence of this subparagraph (iii))
pursuant to Section 11(a)(ii) hereof (the "CURRENT VALUE") over (2) the Purchase
Price (such excess, the "Spread"), and (B) with respect to each Right, make
adequate provision to substitute for such Common Shares, upon payment of the
applicable Purchase Price, any one or more of the following having an aggregate
value determined by the Board of Directors to be equal to the Current Value: (1)
cash, (2) a reduction in the Purchase Price, (3) Common Shares or other equity
securities of the Company (including, without limitation, shares, or units of
shares, of preferred stock which the Board of Directors of the Company has
determined to have the same value as shares of Common Stock (such shares of
preferred stock, "COMMON STOCK EQUIVALENTS")), (4) debt securities of the
Company, (5) other assets, any combination of the foregoing, having an aggregate
value equal to the Current Value, where such aggregate value has been determined
by the Board of Directors of the Company, based upon the advice of a nationally
recognized investment banking firm selected by the Board of Directors of the
Company; PROVIDED, HOWEVER, if the Company shall not have made adequate
provision to deliver value pursuant to clause (B) above within thirty (30) days
following the first occurrence of an event triggering the rights to purchase
Common Shares described in Section 11(a)(ii) (the "SECTION 11(a)(ii) TRIGGER
DATE"), then the Company shall be obligated to deliver, upon the surrender for
exercise of a Right and without requiring payment of the Purchase Price, shares
of Common Stock (to the extent available) and then, if necessary, cash, which
shares and cash have an aggregate value equal to the Spread. If the Board of
Directors of the Company shall determine in good faith that it is likely that
sufficient additional Common Shares could be authorized for

                                      -12-
<PAGE>   16

issuance upon exercise in full of the Rights, the thirty (30) day period set
forth above may be extended to the extent necessary, but not more than ninety
(90) days after the Section 11(a)(ii) Trigger Date, in order that the Company
may seek stockholder approval for the authorization of such additional shares
(such period, as it may be extended, the "SUBSTITUTION PERIOD"). To the extent
that the Company determines that some action need be taken pursuant to the first
and/or second sentences of this Section 11(a)(iii), the Company (x) shall
provide, subject to the last paragraph of Section 11(a)(ii) hereof, that such
action shall apply uniformly to all outstanding Rights, and (y) may suspend the
exercisability of the Rights until the expiration of the Substitution Period in
order to seek any authorization of additional shares and/or to decide the
appropriate form of distribution to be made pursuant to such first sentence and
to determine the value thereof. In the event of any such suspension, the Company
shall make a public announcement, and shall deliver to the Rights Agent a
statement, stating that the exercisability of the Rights has been temporarily
suspended. At such time as the suspension is no longer in effect, the Company
shall make another public announcement, and deliver to the Rights Agent a
statement, so stating. For purposes of this Section 11(a)(iii), the value of the
Common Shares shall be the current per share market price (as determined
pursuant to Section 11(d) hereof) of the Common Shares on the Section 11(a)(ii)
Trigger Date and the value of any Common Stock Equivalent shall be deemed to
have the same value as the Common Shares on such date.

                           (b)      In the event that the Company shall fix a
record date for the issuance of rights, options or warrants to all holders of
Common Shares entitling them (for a period expiring within 45 calendar days
after such record date) to subscribe for or purchase Common Shares (or shares
having the same rights, privileges and preferences as the Common Shares
("EQUIVALENT COMMON SHARES")) or securities convertible into Common Shares or
Equivalent Common Shares at a price per Common Share or Equivalent Common Share
(or having a conversion price per share, if a security convertible into Common
Shares or Equivalent Common Shares) less than the then current per share market
price of the Common Shares (as defined in Section 11(d)) on such record date,
the Purchase Price to be in effect after such record date shall be adjusted 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 Common Shares
outstanding on such record date plus the number of Common Shares which the
aggregate offering price of the total number of Common Shares and/or Equivalent
Common Shares so to be offered (and/or the aggregate initial conversion price of
the convertible securities so to be offered) would purchase at such current
market price and the denominator of which shall be the number of Common Shares
outstanding on such record date plus the number of additional Common Shares
and/or Equivalent Common Shares to be offered for subscription or purchase (or
into which the convertible securities so to be offered are initially
convertible); PROVIDED, HOWEVER, that in no event shall the consideration to be
paid upon the exercise of one Right be less than the aggregate par value of the
shares of capital stock of the Company issuable upon exercise of one Right. In
case such subscription price may be paid in a consideration part or all of which
shall be in a form other than cash, the value of such consideration shall be as
determined in good faith by the Board of Directors of the Company, whose
determination shall be described in a statement filed with the Rights Agent.
Common Shares owned by or held for the account of the Company shall not be
deemed outstanding for the purpose of any such computation. Such adjustment
shall be made successively whenever such a record date is fixed; and in the
event that such rights, options or warrants are not so issued, the

                                      -13-
<PAGE>   17

Purchase Price shall be adjusted to be the Purchase Price which would then be in
effect if such record date had not been fixed.

                  (c)      In case the Company shall fix a record date for the
making of a distribution to all holders of the Common Shares (including any such
distribution made in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation) of evidences of indebtedness
or assets (other than a regular quarterly cash dividend or a dividend payable in
Common Shares) or subscription rights or warrants (excluding those referred to
in Section 11(b) hereof), the Purchase Price to be in effect after such record
date shall be determined by multiplying the Purchase Price in effect immediately
prior to such record date by a fraction, the numerator of which shall be the
then current per share market price of the Common Shares on such record date,
less the fair market value (as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement
filed with the Rights Agent) of the portion of the assets or evidences of
indebtedness so to be distributed or of such subscription rights or warrants
applicable to one Common Share and the denominator of which shall be such
current per share market price of the Common Shares; PROVIDED, HOWEVER, that in
no event shall the consideration to be paid upon the exercise of one Right be
less than the aggregate par value of the shares of capital stock of the Company
to be issued upon exercise of one Right. Such adjustments shall be made
successively whenever such a record date is fixed; and in the event that such
distribution is not so made, the Purchase Price shall again be adjusted to be
the Purchase Price which would then be in effect if such record date had not
been fixed.

                  (d)      For the purpose of any computation hereunder, the
"CURRENT PER SHARE MARKET PRICE" of any security (a "SECURITY" for the purpose
of this Section 11(d)) on any date shall be deemed to be the average of the
daily closing prices per share of such Security for the 30 consecutive Trading
Days (as such term is hereinafter defined) immediately prior to such date;
PROVIDED, HOWEVER, that in the event that the current per share market price of
the Security is determined during a period following the announcement by the
issuer of such Security of (A) a dividend or distribution on such Security
payable in shares of such Security or securities convertible into such shares,
or (B) any subdivision, combination or reclassification of such Security and
prior to the expiration of 30 Trading Days after the ex-dividend date for such
dividend or distribution, or the record date for such subdivision, combination
or reclassification, then, and in each such case, the current per share market
price shall be appropriately adjusted to reflect the current market price per
share equivalent of such Security. The closing price for each day shall be the
last sale price, regular way, or, in case no such sale takes place on such day,
the average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with respect
to securities listed or admitted to trading on the New York Stock Exchange, or
if the 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 the Security is listed or admitted to trading or, if the Security is
not listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by NASDAQ or such other
system then in use, or, if on any such date the Security is not quoted by any
such organization,

                                      -14-
<PAGE>   18

the average of the closing bid and asked prices as furnished by a professional
market maker making a market in the Security selected by the Board of Directors
of the Company. The term "TRADING DAY" shall mean a day on which the principal
national securities exchange on which the Security is listed or admitted to
trading is open for the transaction of business or, if the Security is not
listed or admitted to trading on any national securities exchange, a Business
Day. If the Common Shares are not publicly held or so listed or traded, "CURRENT
PER SHARE MARKET PRICE" shall mean the fair value per share as determined in
good faith by the Board of Directors of the Company, whose determination shall
be described in a statement filed with the Rights Agent.

                  (e)      No adjustment in the Purchase Price shall be required
unless such adjustment would require an increase or decrease of at least 1% in
the Purchase Price; PROVIDED, HOWEVER, that any adjustments which by reason of
this Section 11(e) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment. All calculations under this
Section 11 shall be made to the nearest cent. Notwithstanding the first sentence
of this Section 11(e), any adjustment required by this Section 11 shall be made
no later than three years from the date of the transaction which requires such
adjustment.

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

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

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

                  (i)      The Company may elect on or after the date of any
adjustment of the Purchase Price to adjust the number of Rights in substitution
for any adjustment in the number of Common Shares 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 Common Shares

                                      -15-
<PAGE>   19

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

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

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

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

                  (m)      Anything in this Section 11 to the contrary
notwithstanding, the Company shall be entitled to make such reductions in the
Purchase Price, in addition to those adjustments expressly required by this
Section 11, as and to the extent that it in its sole discretion shall

                                      -16-
<PAGE>   20

determine to be advisable in order that any (i) combination or subdivision of
the Common Shares, (ii) issuance wholly for cash of any Common Shares at less
than the current market price, (iii) issuance wholly for cash of Common Shares
or securities which by their terms are convertible into or exchangeable for
Common Shares, (iv) dividends on Common Shares payable in Common Shares or (v)
issuance of any rights, options or warrants referred to hereinabove in Section
11(b), hereafter made by the Company to holders of its Common Shares shall not
be taxable to such stockholders.

         Section 12. CERTIFICATE OF ADJUSTMENT. Whenever an adjustment is made
as provided in Sections 11 and 13 hereof, the Company shall promptly (a) prepare
a certificate setting forth such adjustment, and a brief statement of the facts
accounting for such adjustment, (b) file with the Rights Agent and with each
transfer agent for the Common Shares a copy of such certificate and (c) mail a
brief summary thereof to each holder of a Right Certificate in accordance with
Section 25 hereof. Notwithstanding the foregoing sentence, the failure by the
Company to make such certification or give such notice shall not affect the
validity of or the force or effect of the requirement for such adjustment. The
Rights Agent shall be fully protected in relying on any such certificate and on
any adjustment therein contained.

         Section 13. CONSOLIDATION, MERGER OR SALE OR TRANSFER OF ASSETS OR
EARNING POWER. In the event that, at any time after a Person becomes an
Acquiring Person (other than a subsidiary of the Company), directly or
indirectly, (i) the Company shall consolidate with, or merge with and into, any
other Person, (ii) any Person shall consolidate with the Company, or merge with
and into the Company and the Company shall be the continuing or surviving
corporation of such merger and, in connection with such merger, all or part of
the Common Shares shall be changed into or exchanged for stock or other
securities of any other Person (or the Company) or cash or any other property,
or (iii) the Company shall sell or otherwise transfer (or one or more of its
Subsidiaries shall sell or otherwise transfer), in one or more transactions,
assets or earning power aggregating 50% or more of the assets or earning power
of the Company and its Subsidiaries (taken as a whole) to any other Person other
than the Company or one or more of its wholly-owned Subsidiaries, then, and in
each such case, proper provision shall be made so that (A) each holder of a
Right (except as otherwise provided herein) shall thereafter have the right to
receive, upon the exercise thereof at a price equal to the then current Purchase
Price multiplied by the number of Common Shares for which a Right is then
exercisable, in accordance with the terms of this Agreement and in lieu of
Common Shares, such number of Common Shares of such other Person (including the
Company as successor thereto or as the surviving corporation) as shall equal the
result obtained by (x) multiplying the then current Purchase Price by the number
of Common Shares for which a Right is then exercisable and dividing that product
by (y) 50% of the then current per share market price of the Common Shares of
such other Person (determined pursuant to Section 11(d) hereof) on the date of
consummation of such consolidation, merger, sale or transfer; (B) the issuer of
such Common Shares shall thereafter be liable for, and shall assume, by virtue
of such consolidation, merger, sale or transfer, all the obligations and duties
of the Company pursuant to this Agreement; (C) the term "COMPANY" shall
thereafter be deemed to refer to such issuer; and (D) such issuer shall take
such steps (including, but not limited to, the reservation of a sufficient
number of its Common Shares in accordance with Section 9 hereof) in connection
with such consummation as may be necessary to assure that the provisions hereof

                                      -17-
<PAGE>   21

shall thereafter be applicable, as nearly as reasonably may be, in relation to
the Common Shares thereafter deliverable upon the exercise of the Rights. The
Company covenants and agrees that it shall not consummate any such
consolidation, merger, sale or transfer unless prior thereto the Company and
such issuer shall have executed and delivered to the Rights Agent a supplemental
agreement so providing. The Company shall not enter into any transaction of the
kind referred to in this Section 13 if at the time of such transaction there are
any rights, warrants, instruments or securities outstanding or any agreements or
arrangements which, as a result of the consummation of such transaction, would
eliminate or substantially diminish the benefits intended to be afforded by the
Rights. The provisions of this Section 13 shall similarly apply to successive
mergers or consolidations or sales or other transfers. For purposes hereof, the
"EARNING POWER" of the Company and its Subsidiaries shall be determined in good
faith by the Company's Board of Directors on the basis of the operating earnings
of each business operated by the Company and its Subsidiaries during the three
fiscal years preceding the date of such determination (or, in the case of any
business not operated by the Company or any Subsidiary during three full fiscal
years preceding such date, during the period such business was operated by the
Company or any Subsidiary).

         Section 14. FRACTIONAL RIGHTS AND FRACTIONAL SHARES.

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

                  (b)      The Company shall not be required to issue fractions
of Common Shares upon exercise of the Rights or to distribute certificates which
evidence fractional Common Shares. In lieu of fractional Common Shares, the
Company shall pay to each registered holder of

                                      -18-
<PAGE>   22

Right Certificates at the time such Rights are exercised as herein provided an
amount in cash equal to the same fraction of the current market value of one
Common Share as the fraction of one Common Share that such holder would
otherwise receive upon the exercise of the aggregate number of rights exercised
by such holder. For the purposes of this Section 14(b), the current market value
of a Common Share shall be the closing price of a Common Share (as determined
pursuant to the second sentence of Section 11(d) hereof) for the Trading Day
immediately prior to the date of such exercise.

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

         Section 15. RIGHTS OF ACTION. All rights of action in respect of this
Agreement, excepting the rights of action given to the Rights Agent under
Section 18 hereof, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of the
Common Shares); and any registered holder of any Right Certificate (or, prior to
the Distribution Date, of the Common Shares) may, without the consent of the
Rights Agent or of the holder of any other Right Certificate (or, prior to the
Distribution Date, of the Common Shares), on his own behalf and for his own
benefit, enforce, and may institute and maintain any suit, action or proceeding
against the Company to enforce, or otherwise act in respect of, his right to
exercise the Rights evidenced by such Right Certificate in the manner provided
in such Right Certificate and in this Agreement. Without limiting the foregoing
or any remedies available to the holders of Rights, it is specifically
acknowledged that the holders of Rights would not have an adequate remedy at law
for any breach of this Agreement and will be entitled to specific performance of
the obligations under, and injunctive relief against actual or threatened
violations of the obligations of any Person subject to, this Agreement.

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

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

                  (b)      after the Distribution Date, the Right Certificates
are transferable only on the registry books maintained by the Rights Agent if
surrendered at the principal office of the Rights Agent, duly endorsed or
accompanied by a proper instrument of transfer with a completed form of
certification; and

                  (c)      the Company and the Rights Agent may deem and treat
the person in whose name the Right Certificate (or, prior to the Distribution
Date, the associated Common Shares certificate) is registered as the absolute
owner thereof and of the Rights evidenced thereby (notwithstanding any notations
of ownership or writing on the Right Certificates or the associated Common
Shares certificate made by anyone other than the Company or the Rights Agent)
for all

                                      -19-
<PAGE>   23

purposes whatsoever, and neither the Company nor the Rights Agent shall be
affected by any notice to the contrary.

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

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

         Section 18. CONCERNING THE RIGHTS AGENT.

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

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

                                      -20-
<PAGE>   24

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

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

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

         Section 20. DUTIES OF RIGHTS AGENT. The Rights Agent undertakes the
duties and obligations expressly set forth in this Agreement and no implied
duties or obligations shall be read into this Agreement against the Rights
Agent. The Rights Agent shall perform those duties and obligations upon the
following terms and conditions, by all of which the Company and the holders of
Right Certificates, by their acceptance thereof, shall be bound:

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

                  (b)      Whenever in the performance of its duties under this
Agreement the Rights Agent shall deem it necessary or desirable that any fact or
matter be proved or established by the Company prior to taking or suffering any
action hereunder, such fact or matter (unless other evidence in respect thereof
be herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by any one of the President, any Vice
President, the Treasurer or any Assistant Treasurer, or the Clerk or any
Assistant Clerk of the Company and delivered to the Rights Agent; and such
certificate shall be full authorization to the

                                      -21-
<PAGE>   25

Rights Agent for any action taken or suffered in good faith by it under the
provisions of this Agreement in reliance upon such certificate.

                  (c)      The Rights Agent shall be liable hereunder only for
its own 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 Right Certificates (except as to its countersignature thereof) or be
required to verify the same, but all such statements and recitals are and shall
be deemed to have been made by the Company only.

                  (e)      The Rights Agent shall not be under any
responsibility in respect of the validity of this Agreement or the execution and
delivery hereof (except the due execution hereof by the Rights Agent) or in
respect of the validity or execution of any Right Certificate (except its
countersignature thereof); nor shall it be responsible for any breach by the
Company of any covenant or condition contained in this Agreement or in any Right
Certificate; nor shall it be responsible for any adjustment required under the
provisions of Sections 11 or 13 hereof or responsible for the manner, method or
amount of any such adjustment or the ascertaining of the existence of facts that
would require any such adjustment (except with respect to the exercise of Rights
evidenced by Right Certificates after actual notice of any such adjustment); nor
shall it by any act hereunder be deemed to make any representation or warranty
as to the authorization or reservation of any Common Shares to be issued
pursuant to this Agreement or any Right Certificate or as to whether any Common
Shares will, when so 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 one of the President, any Vice President, the Clerk or any Assistant Clerk,
or the Treasurer or any Assistant Treasurer of the Company, and to apply to such
officers for advice or instructions in connection with its duties, and it shall
not be liable for any action taken or suffered to be taken by it in good faith
in accordance with instructions of any such officer.

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

                                      -22-
<PAGE>   26

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

         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 Shares by registered or certified mail, and to the holders of the
Right Certificates by first-class mail. The Company may remove the Rights Agent
or any successor Rights Agent upon 30 days' notice in writing, mailed to the
Rights Agent or successor Rights Agent, as the case may be, and to each transfer
agent of the Common Shares by registered or certified mail, and to the holders
of the Right Certificates by first-class mail. If the Rights Agent shall resign
or be removed or shall otherwise become incapable of acting, the Company shall
appoint a successor to the Rights Agent. If the Company shall fail to make such
appointment within a period of 30 days after giving notice of such removal or
after it has been notified in writing of such resignation or incapacity by the
resigning or incapacitated Rights Agent or by the holder of a Right Certificate
(who shall, with such notice, submit his Right Certificate for inspection by the
Company), then the registered holder of any Right Certificate may apply to any
court of competent jurisdiction for the appointment of a new Rights Agent. Any
successor Rights Agent, whether appointed by the Company or by such a court,
shall be a corporation organized and doing business under the laws of the United
States or of any state of the United States, in good standing, having an office
in 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 $100 million. After
appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as Rights
Agent without further act or deed; but the predecessor Rights Agent shall
deliver and transfer to the successor Rights Agent any property at the time held
by it hereunder, and execute and deliver any further assurance, conveyance, act
or deed necessary for the purpose. Not later than the effective date of any such
appointment the Company shall file notice thereof in writing with the
predecessor Rights Agent and each transfer agent of the Common Shares, and mail
a notice thereof in writing to the registered holders of the Right Certificates.
Failure to give any notice provided for in this Section 21, however, or any
defect therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent, as
the case may be.

         Section 22. ISSUANCE OF NEW RIGHT CERTIFICATES. Notwithstanding any of
the provisions of this Agreement or of the Rights to the contrary, the Company
may, at its option, issue new Right Certificates evidencing Rights in such form
as may be approved by its Board of Directors to reflect any adjustment or change
in the Purchase Price and the number or kind or class of shares or other
securities or property purchasable under the Right Certificates made in
accordance with the provisions of this Agreement. In addition, in connection
with the issuance

                                      -23-
<PAGE>   27

or sale of shares of Common Stock following the Distribution Date and prior to
the Final Expiration Date, the Company (a) shall, with respect to shares of
Common Stock so issued or sold pursuant to the exercise of stock options or
under any employee benefit plan or arrangement or upon the exercise, conversion
or exchange of securities of the Company currently outstanding or issued at any
time in the future by the Company and (b) may, in any other case, if deemed
necessary or appropriate by the Board of Directors of the Company, issue Rights
Certificate representing the appropriate number of Rights in connection with
such issuance or sale; PROVIDED, HOWEVER, that (i) no such Rights Certificate
shall be issued and this sentence shall be null and void ab initio if, and to
the extent that, such issuance or this sentence would create a significant risk
of or result in material adverse tax consequences to the Company or the Person
to whom such Rights Certificate would be issued or would create a significant
risk of or result in such options' or employee plans' or arrangements' failing
to qualify for otherwise available special tax treatment and (ii) no such Rights
Certificate shall be issued if, and to the extent that, appropriate adjustment
shall otherwise have been made in lieu of the issuance thereof.

         Section 23. REDEMPTION AND TERMINATION.

                  (a)      The Board of Directors of the Company may, at its
option, at any time prior to such time as any Person becomes an Acquiring
Person, redeem all but not less than all of the then outstanding Rights at a
redemption price of $0.001 per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date
hereof (such redemption price being hereinafter referred to as the "REDEMPTION
PRICE"). The redemption of the Rights by the Board of Directors may be made
effective at such time, on such basis and subject to such conditions as the
Board of Directors in its sole discretion may establish.

                  (b)      Immediately upon the time of the effectiveness of the
redemption of the Rights pursuant to paragraph (a) of this Section 23 or such
earlier time as may be determined by the Board of Directors of the Company in
the action ordering such redemption (although not earlier than the time of such
action) (such time the "REDEMPTION DATE"), and without any further action and
without any notice, the right to exercise the Rights shall terminate and the
only right thereafter of the holders of Rights shall be to receive the
Redemption Price. The Company shall promptly give public notice of any such
redemption; PROVIDED, HOWEVER, that the failure to give, or any defect in, any
such notice shall not affect the validity of such redemption. Within 10 days
after such action of the Board of Directors ordering the redemption of the
Rights pursuant to paragraph (a), the Company shall mail a notice of redemption
to all the holders of the then outstanding Rights at their last addresses as
they appear upon the registry books of the Rights Agent or, prior to the
Distribution Date, on the registry books of the transfer agent for the Common
Shares. Any notice which is mailed in the manner herein provided shall be deemed
given, whether or not the holder receives the notice. If the payment of the
Redemption Price is not included with such notice, each such notice shall state
the method by which the payment of the Redemption Price will be made. Neither
the Company nor any of its Affiliates or Associates may redeem, acquire or
purchase for value any Rights at any time in any manner other than that
specifically set forth in this Section 23 or in Section 24 hereof, other than in
connection with the purchase of Common Shares prior to the Distribution Date.

                                      -24-
<PAGE>   28

                  (c)      The Company may, at its option, pay the Redemption
Price in cash, shares of Common Stock (based on the current per share market
price, as defined in Section 11(d) hereof, of the Common Stock at the time of
redemption) or any other form of consideration deemed appropriate by the Board
of Directors of the Company.

         Section 24. EXCHANGE.

                  (a)      The Board of Directors of the Company may, at its
option, at any time after any Person becomes an Acquiring Person, exchange all
or part of the then outstanding and exercisable Rights (which shall not include
Rights that have become void pursuant to the provisions of Section 11(a)(ii)
hereof) for Common Shares at an exchange ratio of one Common Share per Right,
appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof (such exchange ratio being
hereinafter referred to as the "EXCHANGE RATIO"). Notwithstanding the foregoing,
the Board of Directors shall not be empowered to effect such exchange at any
time after any Person (other than the Company, any Subsidiary of the Company,
any employee benefit plan of the Company or any such Subsidiary, or any entity
holding Common Shares for or pursuant to the terms of any such plan), together
with all Affiliates and Associates of such Person, becomes the Beneficial Owner
of a majority of the Common Shares then outstanding.

                  (b)      Immediately upon the action of the Board of Directors
of the Company ordering the exchange of any Rights pursuant to 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 Common Shares equal to
the number of such Rights held by such holder multiplied by the Exchange Ratio.
The Company shall promptly give public notice of any such exchange; PROVIDED,
HOWEVER, that the failure to give, or any defect in, such notice shall not
affect the validity of such exchange. The Company promptly shall mail a notice
of any such exchange to all of the holders of such Rights at their last
addresses as they appear upon the registry books of the Rights Agent. Any notice
which is mailed in the manner herein provided shall be deemed given, whether or
not the holder receives the notice. Each such notice of exchange will state the
method by which the exchange of the Common Shares for Rights will be effected
and, in the event of any partial exchange, the number of Rights which will be
exchanged. Any partial exchange shall be effected pro rata based on the number
of Rights (other than Rights which have become void pursuant to the provisions
of Section 11(a)(ii) hereof) held by each holder of Rights.

                  (c)      In the event that there shall not be sufficient
Common Shares or common stock equivalents authorized by the Company's
certificate of incorporation and not outstanding or subscribed for, or reserved
or otherwise committed for issuance for purposes other than upon exercise of
Rights, to permit any exchange of Rights as contemplated in accordance with this
Section 24, the Company shall use its best efforts to take all such action as
may be necessary to authorize additional Common Shares or common stock
equivalents for issuance upon exchange of the Rights.

         Section 25. NOTICE OF CERTAIN EVENTS.

                                      -25-
<PAGE>   29

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

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

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

                           Teradyne, Inc.
                           321 Harrison Avenue
                           Boston, MA  02118
                           Attention:  President

                           Copy to:

                           Testa, Hurwitz & Thibeault, LLP

                                      -26-
<PAGE>   30

                           125 High Street
                           Boston, Massachusetts  02110
                           Attention:  William B. Asher, Esq.

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

                           Fleet National Bank
                           c/o EquiServe Limited Partnership
                           150 Royal Street
                           Canton, MA  02021
                           Attention:  Shareholder Services Division

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

         Section 27. SUPPLEMENTS AND AMENDMENTS. The Company may from time to
time, and the Rights Agent shall, if the Company so directs, supplement or amend
this Agreement without the approval of any holders of Right Certificates in
order to cure any ambiguity, to correct or supplement any provision contained
herein which may be defective or inconsistent with any other provisions herein,
or to make any change to or delete any provision hereof or to adopt any other
provisions with respect to the Rights which the Company may deem necessary or
desirable; PROVIDED, HOWEVER, that from and after such time as any Person
becomes an Acquiring Person, this Agreement shall not be amended or supplemented
in any manner which would adversely affect the interests of the holders of
Rights (other than an Acquiring Person and its Affiliates and Associates). Any
supplement or amendment authorized by this Section 27 will be evidenced by a
writing signed by the Company and the Rights Agent.

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

         Section 29. BENEFITS OF THIS AGREEMENT. Nothing in this Agreement shall
be construed to give to any person or entity other than the Company, the Rights
Agent and the registered holders of the Right Certificates (and, prior to the
Distribution Date, the Common Shares) any legal or equitable right, remedy or
claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the registered holders of
the Right Certificates (and, prior to the Distribution Date, the Common Shares).

         Section 30. SEVERABILITY. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or

                                      -27-
<PAGE>   31

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 materially
and 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. Without limiting the foregoing, if any provision
requiring that a determination made by less than the entire Board is held by a
court of competent jurisdiction or other authority to be invalid, void or
unenforceable, such determination shall then be made by the entire Board.

         Section 31. GOVERNING LAW. This Agreement and each Right 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 such Commonwealth applicable to
contracts to be made and performed entirely within such Commonwealth.

         Section 32. 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 33. 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.

         Section 34. ADMINISTRATION. The Board of Directors of the Company shall
have the exclusive power and authority to administer and interpret the
provisions of this Agreement and to exercise all rights and powers specifically
granted to the Board of Directors or the Company or as may be necessary or
advisable in the administration of this Agreement. All such actions,
calculations, determinations and interpretations which are done or made by the
Board of Directors in good faith shall be final, conclusive and binding on the
Company, the Rights Agent, the holders of the Rights and all other parties and
shall not subject the Board of Directors to any liability to the holders of the
Rights.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -28-
<PAGE>   32

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

Attest:                                       TERADYNE, INC.

/s/ Stuart M. Osattin                         By: /s/ George W. Chamillard
---------------------------                       ------------------------------
Name:  Stuart M. Osattin                          Name: George W. Chamillard
Title: Treasurer                                  Title: Chief Executive Officer
                                                         and President

Attest:                                       FLEET NATIONAL BANK

/s/ Geraldine Murray                          By: /s/ Margaret Prentice
---------------------------                       ------------------------------
Name: Geraldine Murray                            Name: Margaret Prentice
Title: Account Manager                            Title: Managing Director

                                      -29-
<PAGE>   33

                                                                       EXHIBIT A
Form of Right Certificate
Certificate No. R- _______ Rights

NOT EXERCISABLE AFTER NOVEMBER 27, 2010 OR EARLIER IF REDEMPTION OR EXCHANGE
OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.001 PER RIGHT AND TO EXCHANGE
ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES,
RIGHTS THAT ARE OR WERE ACQUIRED OR BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR
ANY ASSOCIATES OR AFFILIATES THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
AGREEMENT) OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID.

                                Right Certificate
                                 TERADYNE, 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 November 17, 2000 (the "RIGHTS AGREEMENT"),
between Teradyne, Inc., a Massachusetts corporation (the "COMPANY"), and Fleet
National Bank (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 November 27, 2010, at the
principal office of the Rights Agent, or at the office of its successor as
Rights Agent, one share of Common Stock, par value $0.125 per share (the "COMMON
SHARES"), of the Company, at a purchase price of $540.00 per Common Share (the
"PURCHASE PRICE"), upon presentation and surrender of this Right Certificate
with the certification and the Form of Election to Purchase duly executed. The
number of Rights evidenced by this Right Certificate (and the number of Common
Shares which may be purchased upon exercise hereof) set forth above, and the
Purchase Price set forth above, are the number and Purchase Price as of November
27, 2000, based on the Common Shares as constituted at such date. As provided in
the Rights Agreement, the Purchase Price and the number of Common Shares which
may be purchased upon the exercise of the Rights evidenced by this Right
Certificate are subject to modification and adjustment upon the happening of
certain events.

         From and after the occurrence of an event described in Section
11(a)(ii) of the Rights Agreement, if the Rights evidenced by this Right
Certificate are or were at any time on or after the earlier of (x) the date of
such event and (y) the Distribution Date (as such term is defined in the Rights
Agreement) acquired or beneficially owned by an Acquiring Person or an Associate
or Affiliate of an Acquiring Person (as such terms are defined in the Rights
Agreement), such Rights shall become void, and any holder of such Rights shall
thereafter have no right to exercise such Rights.

         This Right Certificate is subject to all of the terms, provisions and
conditions of the

                                      A-1
<PAGE>   34

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

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

         Subject to the provisions of the Rights Agreement, at the Company's
option, the Rights evidenced by this Certificate (i) may be redeemed by the
Company at a redemption price of $0.001 per Right or (ii) may be exchanged in
whole or in part for shares of the Company's Common Stock, par value $0.125 per
share.
         No fractional Common Shares will be issued upon the exercise of any
Right or Rights evidenced hereby, but in lieu thereof a cash payment will be
made, as provided in the Rights Agreement.

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

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

                                      A-2
<PAGE>   35

         WITNESS the facsimile signature of the proper officers of the Company
and its corporate seal. Dated as of November __, 2000.

Attest:                                           TERADYNE, INC.

By: _____________________________                 By: __________________________
Name:                                             Name:
Title:                                            Title:

Countersigned:

FLEET NATIONAL BANK

By: _________________________
    Authorized Signature

                                      A-3
<PAGE>   36

                    Form of Reverse Side of Right Certificate

                               FORM OF ASSIGNMENT

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

         FOR VALUE RECEIVED _________________________________ hereby sells,
assigns and transfers unto______________________________________________________
                        (Please print name and address of transferee)

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

Dated: _____________ ___, _____

                                             ___________________________________
                                             Signature

Signature Guaranteed:

         Signatures must be guaranteed by a member firm of a registered national
securities exchange, a member of the National Association of Securities Dealers,
Inc., or a commercial bank or trust company having an office or correspondent in
the United States.

                                   -----------

                                   CERTIFICATE

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

                                              _________________________________
                                              Signature

                                   -----------

                                     A-4
<PAGE>   37

               Form of Reverse Side of Right Certificate continued

                          FORM OF ELECTION TO PURCHASE

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

To Teradyne, Inc.:

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

Please insert social security
or other identifying number

________________________________________________________________________________
(Please print name and address)
________________________________________________________________________________

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

Please insert social security
or other identifying number

________________________________________________________________________________
(Please print name and address)
________________________________________________________________________________

________________________________________________________________________________

Dated: _____________ ___, _____

                                             ___________________________________
                                             Signature

Signature Guaranteed:

         Signatures must be guaranteed by a member firm of a registered national
securities exchange, a member of the National Association of Securities Dealers,
Inc., or a commercial bank or trust company having an office or correspondent in
the United States.

                                      A-5
<PAGE>   38

              Form of Reverse Side of Right Certificate - continued
              -----------------------------------------------------

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

                                             ___________________________________
                                             Signature

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

                                     NOTICE

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

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

                                      A-6
<PAGE>   39

                                                                       EXHIBIT B

                                 TERADYNE, INC.
                          SUMMARY OF RIGHTS TO PURCHASE
                                  COMMON SHARES

         On November 16,2000, the Board of Directors of Teradyne, Inc. declared
a dividend of one common share purchase right (a "RIGHT") for each outstanding
share of common stock, par value $0.125 per share (the "COMMON SHARES")
outstanding on November 27 2000 (the "RECORD DATE") to the stockholders of
record on that date. Each Right entitles the registered holder to purchase from
the Company one Common Share, at a price of $540.00 per Common Share (the
"PURCHASE PRICE"), subject to adjustment. The description and terms of the
Rights are set forth in a Rights Agreement (the "RIGHTS AGREEMENT") between the
Company and Rights Agents (the "RIGHTS AGENT").

         Until the earlier to occur of (i) a public announcement that a person
or group of affiliated or associated persons (an "ACQUIRING PERSON") has
acquired beneficial ownership of 20% or more of the outstanding Common Shares or
(ii) 10 business days (or such later date as may be determined by action of the
Board of Directors prior to such time as any Person becomes an Acquiring Person)
following the commencement of, or announcement of an intention to make, a tender
offer or exchange offer the consummation of which would result in the beneficial
ownership by a person or group of 20% or more of such outstanding Common Shares
(the earlier of such dates being called the "DISTRIBUTION DATE"), the Rights
will be evidenced, with respect to any of the Common Share certificates
outstanding as of the Record Date, by such Common Share certificate with a copy
of this Summary of Rights attached thereto.

         The Rights Agreement provides that, until the Distribution Date, the
Rights will be transferred with and only with the Common Shares. Until the
Distribution Date (or earlier redemption or expiration of the Rights), new
Common Share certificates issued after the Record Date or upon transfer or new
issuance of Common Shares will contain a notation incorporating the Rights
Agreement by reference. Until the Distribution Date (or earlier redemption or
expiration of the Rights), the surrender for transfer of any certificates for
Common Shares outstanding as of the Record Date, even without such notation or a
copy of this Summary of Rights being attached thereto, will also constitute the
transfer of the Rights associated with the Common Shares represented by such
certificate. As soon as practicable following the Distribution Date, separate
certificates evidencing the Rights ("RIGHT CERTIFICATES") will be mailed to
holders of record of the Common Shares as of the Close of Business on the
Distribution Date and such separate Right Certificates alone will evidence the
Rights.
         The Rights are not exercisable until the Distribution Date. The Rights
will expire on November 27, 2010 (the "FINAL EXPIRATION DATE"), unless the Final
Expiration Date is extended or unless the Rights are earlier redeemed by the
Company, in each case, as described below.

                                      B-1
<PAGE>   40

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

         From and after the occurrence of an event described in Section
11(a)(ii) of the Rights Agreement, if the Rights evidenced by this Right
Certificate are or were at any time on or after the earlier of (x) the date of
such event and (y) the Distribution Date (as such term is defined in the Rights
Agreement) acquired or beneficially owned by an Acquiring Person or an Associate
or Affiliate of an Acquiring Person (as such terms are defined in the Rights
Agreement), such Rights shall become void, and any holder of such Rights shall
thereafter have no right to exercise such Rights.

         In the event that, at any time after a Person becomes an Acquiring
Person, the Company is acquired in a merger or other business combination
transaction or 50% or more of its consolidated assets or earning power are sold,
proper provision will be made so that each holder of a Right will thereafter
have the right to receive, upon the exercise thereof at the then current
exercise price of the Right, that number of shares of common stock of the
acquiring company which at the time of such transaction will have a market value
of two times the exercise price of the Right. In the event that any person
becomes an Acquiring Person, proper provision shall be made so that each holder
of a Right, other than Rights beneficially owned by the Acquiring Person and its
Affiliates and Associates (which will thereafter be void), will thereafter have
the right to receive upon exercise that number of Common Shares having a market
value of two times the exercise price of the Right. If the Company does not have
sufficient Common Shares to satisfy such obligation to issue Common Shares, or
if the Board of Directors so elects, the Company shall deliver upon payment of
the exercise price of a Right an amount of cash or securities equivalent in
value to the Common Shares issuable upon exercise of a Right; provided that, if
the Company fails to meet such obligation within 30 days following the later of
(x) the first occurrence of an event triggering the right to purchase Common
Shares and (y) the date on which the Company's right to redeem the Rights
expires, the Company must deliver, upon exercise of a Right but without
requiring payment of the exercise price then in effect, Common Shares (to the
extent available) and cash equal in value to the difference between the value of
the Common Shares otherwise issuable upon the exercise of a Right and the
exercise price then in effect. The Board of Directors may extend the 30-day
period described above for up to an additional 90 days to permit the taking of
action that may be necessary to authorize sufficient additional Common Shares to
permit the issuance of Common Shares upon the exercise in full of the Rights.

                                      B-2
<PAGE>   41

         At any time after any Person becomes an Acquiring Person and prior to
the acquisition by any person or group of a majority of the outstanding Common
Shares, the Board of Directors of the Company may exchange the Rights (other
than Rights owned by such person or group which have become void), in whole or
in part, at an exchange ratio of one Common Share per Right (subject to
adjustment).

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

         At any time prior to the time any Person becomes an Acquiring Person,
the Board of Directors of the Company may redeem the Rights in whole, but not in
part, at a price of $0.001 per Right (the "REDEMPTION PRICE"). The redemption of
the Rights may be made effective at such time, on such basis and with such
conditions as the Board of Directors in its sole discretion may establish.
Immediately upon any redemption of the Rights, the right to exercise the Rights
will terminate and the only right of the holders of Rights will be to receive
the Redemption Price.

         The terms of the Rights may be amended by the Board of Directors of the
Company without the consent of the holders of the Rights, except that from and
after such time as any person becomes an Acquiring Person no such amendment may
adversely affect the interests of the holders of the Rights (other than the
Acquiring Person and its Affiliates and Associates).

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

         A copy of the Agreement has been filed with the Securities and Exchange
Commission as an Exhibit to a Registration Statement on Form 8-A dated November
20, 2000. A copy of the Agreement is available free of charge from the Company.
This summary description of the Rights does not purport to be complete and is
qualified in its entirety by reference to the Agreement, which is hereby
incorporated herein by reference.

                                      B-3<PAGE>

                                     FORM OF
                                SUPPLY AGREEMENT

                  This Supply Agreement (the "Agreement"), is made and entered
into as of ______________, 2000 (the "Effective Date"), by and between Cytomedix
GmbH, a Switzerland corporation ("Cytomedix"), and Curative Health Services,
Inc., a Minnesota corporation ("Curative").

                                    RECITALS

                  WHEREAS, Cytomedix and Curative are parties to that certain
Asset Purchase Agreement dated as of October 12, 2000 (the "Asset Purchase
Agreement"), pursuant to which Cytomedix and its Affiliates have agreed to
purchase certain assets of Curative as set forth therein; and

                  WHEREAS, pursuant to Section 2.7(a)(x) of the Asset Purchase
Agreement, it is a condition to the closing of the transactions described in the
Asset Purchase Agreement that the parties hereto enter into this Agreement;

                                    AGREEMENT

                  NOW, THEREFORE, for and in consideration of the premises and
the mutual covenants contained herein, and for other good and valuable
consideration, the receipt, adequacy and legal sufficiency of which are hereby
acknowledged, the parties do hereby agree as follows:

                                   ARTICLE I.
                                   DEFINITIONS

                  For purposes of this Agreement, the following terms and
variations thereof have the meanings specified or referred to in this Article I:

                  "Affiliates" - any person or entity which directly or
indirectly controls, is controlled by, or is under common control with a party
hereto. For purposes of this Agreement, "control" shall mean the legal,
beneficial or equitable ownership directly or indirectly of more than fifty
percent (50%) of the aggregate of all voting equity interests rights in such
entity.

                  "Best Efforts" - the efforts that a prudent person desirous of
achieving a result would use in similar circumstances to ensure that such result
is achieved as expeditiously as possible; provided, however, that a person
required to use Best Efforts under this Agreement will not be required to
dispose of or make any change to its business, or expend any material funds or
incur any other material burden.

                  "Blood Processing Facilities Costs and Expenses" - the direct
Facility-specific costs and expenses associated with the operation of the
Facilities and the production of Procuren.

                  "Clinical Trial" - any clinical trial conducted by Cytomedix
in connection with its efforts to receive FDA approval of Procuren or its
ongoing development efforts with respect to Procuren.

                  "Excluded Facilities" - the blood processing facilities
located in Oregon, Maryland, Iowa, and New Hampshire.

                  "Facilities" - the blood processing facilities to be owned and
operated by Seller in the Procuren States as listed on Schedule A attached
hereto, but excluding the Excluded Facilities.

                                       1
<PAGE>

                   "Facility Lease Costs " - the rent payable by Cytomedix for
any portion of the period for which it is not occupying the Facility under any
Seller Lease as in effect as of the date hereof with respect to which (i) a
consent to assignment has not been obtained at Closing (as defined in the Asset
Purchase Agreement), (ii) the lessor has delivered a notice to vacate or similar
instrument and (iii) Cytomedix has relocated from such Facility as a result
thereof.

                  "FDA" - the United States Food and Drug Administration, or any
successor agency.

                  "Governmental Action" - any legislation, regulation, rule or
procedure passed, adopted or implemented after the date hereof by any federal,
state or local government, legislative body, agency (including the FDA), or
other governmental entity, or any decision, finding or action by any agency,
court or other third party which, if or when implemented, would, in the
reasonable determination of either party, (a) prevent Cytomedix from
manufacturing Procuren or otherwise performing its obligations hereunder, or (b)
prevent Curative from using Procuren at its wound treatment centers or otherwise
performing its obligations hereunder.

                  "Procuren" - Procuren(R), a thrombin-induced platelet
releasate.

                  "Procuren Costs" - the amount equal to (i) $22.49 per dose of
Procuren sold hereunder with respect to the first 275,000 doses sold to Curative
hereunder during any calendar year, and (ii) $16.25 per dose of Procuren with
respect to any additional doses sold to Curative hereunder during any calendar
year, plus fifty percent (50%) of the Facility Lease Costs amortized over a 24
month period from the date of Cytomedix's incurrence of such costs.

                  "Procuren Operations" - the development, manufacturing,
marketing, licensing and distribution of Procuren.

                  "Procuren States" - the states identified on Schedule B
attached hereto in which Curative currently distributes and sells Procuren,
excluding the states in which the Excluded Facilities are located, as such
states may change from time to time pursuant to the provisions herein.

                  "Technical Costs and Expenses" - the direct costs and expenses
associated with (i) quality control, quality assurance and direct corporate
support and (ii) management personnel related to the Procuren Operations.

                  "United States" - the United States of America, including any
territories or possessions thereof.

                                   ARTICLE II.
                            OBLIGATIONS OF CYTOMEDIX

                  Section 2.1 Supply of Procuren. During the Term, subject to
Section 2.2, Cytomedix shall use its Best Efforts to supply Curative with such
quantities of Procuren as to supply one hundred percent (100%) of Curative's
total requirements for Procuren in the Procuren States for use in connection
with Curative's wound care centers, all on the terms and conditions herein.

                  Section 2.2 Net Loss Procuren States.

                           (a) Notwithstanding Section 2.1, Cytomedix shall,
                  subject to Section 2.2(d) below, have no obligation to supply
                  Procuren to Curative in any Procuren State in which,

                                       2
<PAGE>

                  during any two (2) consecutive calendar quarters, Cytomedix's
                  Blood Processing Facilities Costs in connection with the
                  Procuren Operations in such state have exceeded the revenue
                  received by Cytomedix in connection with the sale of Procuren
                  to Curative in such state (such difference, the "Procuren
                  State Deficiency") (any such state, a "Net-Loss Procuren
                  State").

                           (b) Notwithstanding Section 2.1, Cytomedix shall,
                  subject to Section 2.2(e) below, have no obligation to supply
                  Procuren to Curative in any or all of the Procuren States, in
                  the event that, during any two (2) consecutive calendar
                  quarters, the sum of (i) the Blood Processing Facilities Costs
                  in the Procuren States, plus the Technical Costs and Expenses,
                  have exceeded (ii) the revenue received by Cytomedix in
                  connection with the sale of Procuren to Curative in the
                  Procuren States (such difference, the "National Deficiency")
                  (any state designated by Cytomedix pursuant to the terms of
                  this Section 2.2(b), a "Designated Net-Loss Procuren State");
                  provided, however, that Cytomedix may only designate Procuren
                  States as Designated Net-Loss Procuren States to the extent
                  that, during the previous two (2) calendar quarters, the
                  revenue received by Cytomedix from the sale of Procuren in the
                  Procuren States not designated as Designated Net-Loss Procuren
                  States does not exceed (a) the Blood Processing Costs and
                  Expenses in the Procuren States not designated as Designated
                  Net-Loss Procuren States, plus (b) the Technical Costs and
                  Expenses.

                           (c) Within thirty (30) days after the end of each
                  calendar quarter, Cytomedix shall provide Curative with
                  written notice of any Procuren State (such notice, the
                  "Net-Loss Notice") that is a Net-Loss Procuren State or a
                  Designated Net-Loss Procuren State based upon the results of
                  the previous two (2) consecutive calendar quarters, together
                  with written documentation showing the basis upon which such
                  determination has been made. At such time, Cytomedix shall
                  have no further obligation to supply Procuren to Curative in
                  such Net-Loss Procuren State or Designated Net-Loss Procuren
                  State, as the case may be, except as set forth in Sections
                  2.2(d) and 2.2(e) below; provided, however, that Cytomedix
                  shall be obligated to supply Procuren pursuant to any Orders
                  already submitted by Curative.

                           (d) Notwithstanding Section 2.2(a), Cytomedix shall
                  be obligated to continue to supply Procuren in any Net-Loss
                  Procuren State, in the event that, within fifteen (15) days of
                  Curative's receipt of the Net-Loss Notice:

                                    (i) Curative pays Cytomedix the amount of
                           the Procuren State Deficiency with respect to the two
                           (2) previous calendar quarters. In such event,
                           Cytomedix shall be obligated to supply Procuren to
                           Curative in such Net-Loss Procuren State until such
                           time, if any, that Curative elects not to pay the
                           amount of any Procuren State Deficiency with respect
                           to the two (2) previous calendar quarters (to the
                           extent not already paid by Curative pursuant to an
                           earlier Net-Loss Notice) pursuant to a subsequent
                           Net-Loss Notice; or

                                    (ii) Curative notifies Cytomedix in writing
                           that the exclusive supply obligation set forth in
                           Section 2.3 below will no longer apply with respect
                           to such Net-Loss Procuren State and that Cytomedix
                           may sell Procuren to any person in such state.

                                       3
<PAGE>

                           (e) Notwithstanding Section 2.2(b), Cytomedix shall
                  be obligated to continue to supply Procuren in any Designated
                  Net-Loss Procuren State in the event that, within fifteen (15)
                  days of Curative's receipt of the Net-Loss Notice:

                                    (i) Curative pays Cytomedix the amount of
                           the National Deficiency, with respect to the two (2)
                           previous calendar quarters. In such event, Cytomedix
                           shall be obligated to supply Procuren to Curative in
                           such Designated Net-Loss Procuren State until such
                           time, if any, that Curative elects not to pay the
                           amount of any National Deficiency with respect to the
                           two (2) previous calendar quarters (to the extent not
                           already paid by Curative pursuant to an earlier
                           Net-Loss Notice) pursuant to a subsequent Net-Loss
                           Notice; or

                                    (ii) Curative notifies Cytomedix in writing
                           that the exclusive supply obligation set forth in
                           Section 2.3 below will no longer apply with respect
                           to such Designated Net-Loss Procuren State and that
                           Cytomedix may sell Procuren to any person in such
                           state.

                           (f) Nothing contained herein to the contrary, in the
                  event that there are any consents to assignment with respect
                  to the real property leases relating to the Facilities that
                  have not been obtained at Closing (as defined in the Asset
                  Purchase Agreement) and the owner of the real property has
                  delivered a notice to vacate or similar instrument to
                  Cytomedix and Cytomedix has relocated from such Facility as
                  the result thereof, Cytomedix shall have no obligation to
                  supply Curative with Procuren in such state until such time
                  that Cytomedix is able to relocate such Facility and resume at
                  a new Facility the Procuren Operations as were previously
                  conducted.

                  Section 2.3 Exclusive Supply Obligation. During the Term,
Cytomedix shall not sell or distribute Procuren to any person in the United
States other than Curative; provided, however, that the foregoing restriction
shall not apply to the distribution of Procuren by Cytomedix to any third party
in connection with any Clinical Trial. Nothing in this Agreement restricts the
ability of Cytomedix to sell or distribute Procuren in any country other than
the United States. The provisions of this Section 2.3 shall terminate upon FDA
approval of Procuren, if any.

                  Section 2.4 Protocols. During the Term, Cytomedix shall
furnish Curative with all the necessary protocols and procedures relating to
Procuren at such time as such protocols and procedures become available.

                                  ARTICLE III.
                                     PAYMENT

                  Section 3.1 Purchase Price. The purchase price for the
Procuren (the "Purchase Price") to be supplied hereunder shall be set at the
sole discretion of Cytomedix and shall be payable as set forth in Section 3.2
below; provided, however, that prior to the receipt of FDA approval of Procuren,
if any, if the Purchase Price exceeds the Procuren Costs, Cytomedix shall rebate
such difference to Curative either by cash payment or credit against the Monthly
Charges as defined in Section 3.2 below.

                  Section 3.2 Payment. Cytomedix shall send Curative an invoice
on a monthly basis, in arrears, for the Procuren supplied to Curative and any
other expenses payable by Curative during the immediately preceding calendar
month (such amount owed by Curative, the "Monthly Charges"), together with a
report showing the calculation of the Monthly Charges for such month. Curative
shall

                                       4
<PAGE>

pay the Monthly Charges to Cytomedix within thirty (30) days of the date of
invoice therefor. If the Monthly Charges remain unpaid after thirty (30) days of
the date of invoice, interest shall accrue on such unpaid amount at the lower of
(a) fifteen percent (15%) per annum, or (b) the highest rate permitted by law,
until paid.

                  Section 3.3 Cancellation; Unsuitability for Use.

                           (a) Except as set forth in Section 3.3(b) or 3.3(c)
                  below, if Curative cancels any Order for any reason or if any
                  Procuren supplied hereunder is unsuitable for the treatment of
                  patients as the result of any action or inaction by Curative,
                  Curative shall reimburse Cytomedix for all indirect and direct
                  costs incurred by Cytomedix in connection with the manufacture
                  of such Procuren.

                           (b) If any Procuren supplied hereunder is unsuitable
                  for the treatment of patients as the result of any action or
                  inaction by Cytomedix, Curative shall have no obligation to
                  pay the Purchase Price with respect to such Procuren.

                           (c) If any Procuren supplied hereunder is unsuitable
                  for the treatment of patients and the parties are unable to
                  determine the cause of such unsuitability, Curative shall pay
                  fifty percent (50%) all indirect and direct costs incurred by
                  Cytomedix in connection with the manufacture of such Procuren.

                           (d) In any such event, any adjustment to the Purchase
                  Price shall be reflected in the invoice sent by Cytomedix to
                  Curative pursuant to Section 3.2.

                  Section 3.4 Taxes. In addition to the prices and charges
specified herein, the amount of any present or future sales, use, excise,
personal property, duty, ad valorem or similar tax or assessment (other than
taxes based on Cytomedix's net income) applicable to the sale of the Procuren
hereunder to Curative shall be paid by Curative when due. If Curative is exempt
from sales tax by its status as a distributor, Curative shall provide evidence
of a sales tax exemption certificate or reseller's registration number.

                                  ARTICLE IV.
                                ORDERS; DELIVERY

                  Section 4.1 Orders. Curative shall initiate all orders of
Procuren by submitting a written order (the "Order") to Cytomedix for the
purchase of Procuren which shall specify or contain (a) the quantity of units to
be purchased, (b) the scheduled delivery date (which shall in no event be a date
earlier than fourteen (14) days from the date the blood of the patient necessary
for the manufacture of Procuren is received by Cytomedix or such other time
period as set forth in Exhibit 5.1 hereof), (c) the address for shipment, and
(d) such other information reasonably requested by Cytomedix, together with
sufficient quantities of the blood of the patient necessary for the manufacture
of Procuren. In all such cases, such blood shall be shipped by Curative to
Cytomedix according to the instructions of Cytomedix.

                  Section 4.2 Delivery of Procuren. Within fourteen (14) days
from the date the blood of the patient necessary for the manufacture of Procuren
is received by Cytomedix or such other time period as set forth in Exhibit 5.1
hereof, Cytomedix shall deliver Procuren to the address specified in the Order
along with the Procuren Release Test Results, substantially in the form attached
hereto as Exhibit 4.2. Curative shall be notified of such shipment and shall be
provided with the name of the common carrier and the package tracking number.
Freight charges shall be paid by Cytomedix. Title and risk of

                                       5
<PAGE>

loss with respect to the Procuren supplied hereunder shall pass to Curative at
the point of delivery at the address specified in the Order. In the event
Cytomedix fails to deliver Procuren within the time period set forth above and
the Procuren is unsuitable for treatment as the result of such delay or if any
Procuren supplied by Cytomedix is otherwise unsuitable for treatment as the
result of any action or inaction by Cytomedix, (a) Curative shall have no
obligation to pay the Purchase Price in connection with the Order of such
Procuren as set forth in Section 3.3(b), and (b) if Curative submits another
Order for the same patient, Cytomedix shall promptly redeliver Procuren with
respect to such patient for the Purchase Price and on the other terms and
conditions herein. Cytomedix's obligation to redeliver Procuren as set forth
above shall be Curative's sole remedy in the event any Procuren supplied
hereunder is unsuitable for treatment as the result of any late delivery or
other action or inaction by Cytomedix.

                  Section 4.3 Notification. Each party shall provide the other
party with notice of any adverse experience involving Procuren resulting in
serious injury or death as soon as possible but in any event within twenty-four
(24) hours after such party receives notice of such occurrence, whether in the
United States or any foreign country, and whether sold by such party or any
third party.

                  Section 4.4 Transportation of Blood and Procuren. Curative
acknowledges and agrees that until such time, if any, that Procuren receives FDA
approval (or such earlier time that Cytomedix provides written notice that the
restrictions of this Section 4.4 no longer apply), Curative shall not transport
Procuren across the border of any state for any reason whatsoever.

                  Section 4.5 Product Labeling. In order to comply with
applicable law and in order to protect Cytomedix from claims and liabilities,
Curative's communications and representations to customers shall be true,
accurate, complete and consistent with the labeling of Procuren. Curative shall
not modify, repackage, adulterate, misbrand, alter or add labels to or remove
labels from any Procuren without the prior written approval of Cytomedix.

                                   ARTICLE V.
                         REPRESENTATIONS AND WARRANTIES

                  Section 5.1 Representations and Warranties of Cytomedix.
Cytomedix represents and warrants that the Procuren to be supplied hereunder
will be manufactured in accordance with the specifications set forth in Exhibit
5.1 attached hereto, as it may be amended from time to time.

                  Section 5.2 Limitation of Warranty. EXCEPT AS SET FORTH IN
SECTION 5.1 ABOVE, CYTOMEDIX MAKES NO EXPRESS OR IMPLIED WARRANTIES OR
REPRESENTATIONS WITH RESPECT TO THE PROCUREN TO BE SUPPLIED HEREUNDER OR
OTHERWISE IN CONNECTION WITH THIS AGREEMENT, INCLUDING ANY WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY WARRANTY RELATING TO
THE EFFICACY OF PROCUREN OR ANY WARRANTY OF NONINFRINGEMENT OF THE RIGHTS OF ANY
THIRD PARTY, AND ALL SUCH WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED. CYTOMEDIX
MAKES NO WARRANTY, EXPRESS OR IMPLIED, TO ANY PERSON OR ENTITY OTHER THAN
CURATIVE CONCERNING PROCUREN. CURATIVE ACKNOWLEDGES THAT THIS LIMITATION OF
WARRANTY IS A MATERIAL INDUCEMENT FOR CYTOMEDIX TO ENTER INTO THIS AGREEMENT.

                  Section 5.3 Survival. The provisions of this Article V shall
survive the termination of this Agreement.

                                       6
<PAGE>

                                   ARTICLE VI.
                                 CONFIDENTIALITY

                  Each party acknowledges that any information concerning the
other party received in connection with this Agreement shall be deemed
"Confidential and Proprietary Information" (provided that information contained
within the Assets (as defined in the Asset Purchase Agreement) transferred to
Cytomedix shall not be deemed Confidential and Proprietary Information of
Curative). Except as otherwise set forth herein, each party agrees that it shall
not permit the duplication, use or disclosure of any such Confidential and
Proprietary Information to any person or entity (other than its own employees or
agents who must have such information for any proper purpose), unless (a)
authorized in writing and signed by the other party, or (b) legally required to
disclose such information, provided that the party availing itself of this
exception has promptly notified the other party of such required disclosure and
has used commercially reasonable efforts to lawfully avoid or limit such
disclosure. Confidential and Proprietary Information does not include any
information which, at the time of disclosure, is generally known by the public
through no breach of the disclosing party. The provisions of this Article VI
survive the expiration or termination of this Agreement.

                                  ARTICLE VII.
                                    INSURANCE

                  During the Term, each party shall, at its sole cost and
expense, maintain Comprehensive Public General Liability Insurance, including
contractual liability, product liability, and personal injury coverage, with a
minimum combined single limit of $1,000,000 per occurrence, $3,000,000 per year,
and naming the other party as an additional insured. Each party shall provide
the other party with a Certificate of Insurance evidencing such coverage upon
request thereof by such party. Each party shall give the other party at least
thirty (30) days' prior written notice of the expiration or cancellation of, or
any material change in, any insurance policy required to be maintained by such
party pursuant to the terms of this Agreement.

                                  ARTICLE VIII.
                               RECORDS AND AUDITS

                  Section 8.1 Maintenance of Records by Curative; Audits.

                           (a) Curative shall maintain (i) full and accurate
                  books and records in connection with the performance of its
                  duties hereunder, including a record of the locations at which
                  Procuren is utilized, and (ii) full and accurate patient
                  records in connection with the usage of Procuren at any wound
                  treatment centers of Curative (the "Patient -------- Data").
                  All such books and records shall be kept and maintained for at
                  least the greater of (1) three (3) years after the termination
                  of this Agreement, or (2) the minimum amount of time required
                  by law. Cytomedix shall have the right, during Curative's
                  business hours upon reasonable prior notice to Curative, to
                  inspect any of the books and records referenced above,
                  including the Patient Data, subject to any applicable laws.
                  Cytomedix shall have the right to access and use the Patient
                  Data for any lawful purpose, including getting data to support
                  any necessary filings with the FDA, subject to any applicable
                  laws.

                           (b) Cytomedix shall be entitled to conduct an audit,
                  from time to time, of Curative's methods and procedures in
                  connection with the blood product supplied by Curative for the
                  manufacture of Procuren to assure compliance with this
                  Agreement and

                                       7
<PAGE>

                  product specifications. Cytomedix may engage an independent
                  third party auditor to conduct such audits. Curative shall
                  cooperate with Cytomedix and its designated auditor in the
                  performance of such audits and shall take prompt and
                  appropriate action to correct any deficiencies discovered by
                  Cytomedix or its auditor. Curative shall be entitled to
                  receive a copy of any audit reports produced by or on behalf
                  of Cytomedix hereunder.

                  Section 8.2 Maintenance of Records by Cytomedix; Audits.

                           (a) Cytomedix shall maintain full and accurate books
                  and records in connection with the performance of its duties
                  hereunder. All such books and records shall be kept and
                  maintained for at least the greater of (a) three (3) years
                  after the termination of this Agreement, or (b) the minimum
                  amount of time required by law. Curative shall have the right,
                  during Cytomedix's business hours upon reasonable prior notice
                  to Cytomedix, to inspect any of the books and records
                  referenced above, subject to any applicable laws.

                           (b) Until such time, if any, that Procuren receives
                  FDA approval, Curative shall be entitled to conduct an audit,
                  from time to time, of Cytomedix's methods and procedures in
                  connection with the manufacture of Procuren hereunder to
                  assure compliance with this Agreement and product
                  specifications. Curative may engage an independent third party
                  auditor to conduct such audits. Cytomedix shall cooperate with
                  Curative and its designated auditor in the performance of such
                  audits and shall take prompt and appropriate action to correct
                  any deficiencies discovered by Curative or its auditor.
                  Cytomedix shall be entitled to receive a copy of any audit
                  reports produced by or on behalf of Curative hereunder.

                                   ARTICLE IX.
                                  IMPROVEMENTS

                  Section 9.1 Definition. For the purposes of this Article IX,
"Improvements" shall mean any development, enhancement, or modification in the
Procuren product or its process for manufacturing that arises on or after the
Effective Date and results from the work of any employee or consultant of
Curative.

                  Section 9.2 Title to Improvements. Cytomedix shall have the
right, but not the obligation, to take Curative's right, title and interest in
and to any Improvements, whereupon the same, as more specifically set forth in
Section 9.3 below, shall be incorporated into the definition of Procuren patents
and know-how included within the Assets (as defined in the Asset Purchase
Agreement) transferred to Cytomedix under the Asset Purchase Agreement. Curative
shall fully disclose any such Improvements to Cytomedix in writing within sixty
(60) days after their actual or constructive reduction to practice. The writing
shall include, if appropriate and without limitation, any drawings, laboratory
notes, methods, processes, samples, materials and specification in Curative's
possession or control. Curative shall promptly respond and assist Cytomedix or
any of its attorneys responsible for evaluating the patentability of such
Improvements and shall make available, at no cost to Curative, knowledgeable
persons, including without limitation, the inventor, to consult with Cytomedix
regarding the nature and details of all Improvements.

                  Section 9.3 Notification by Cytomedix. Cytomedix shall, upon
receipt of any written notice from Curative pursuant to Section 9.2, notify
Curative whether Cytomedix desires to take Curative's right, title and interest
in and to such Improvements. If so, any such Improvements that

                                       8
<PAGE>

constitute, in Cytomedix's sole discretion, patentable inventions shall
thereupon be incorporated into the definition of Procuren patents included
within the Assets transferred to Cytomedix under the Asset Purchase Agreement,
provided that Cytomedix, within one (1) year or such longer period consented to
by Curative (which consent shall not be unreasonably withheld), files an
application for one (1) or more U.S. and/or foreign patents and thereafter in
good faith prosecutes and, if one or more patents are issued, maintains, patent
protection in respect to such Improvements. Any Improvements that do not, in
Cytomedix's sole discretion, constitute patentable inventions shall be
incorporated into the definition of know-how included within the Assets
transferred to Cytomedix under the Asset Purchase Agreement. Curative shall
execute any necessary documents and cooperate in good faith to the extent that
Cytomedix may reasonably require in order to enable Cytomedix to fully enforce
and exercise its rights to such Improvements. During the time allowed for filing
an application for a U.S. and/or foreign patent with respect to any
Improvements, Curative shall refrain from any activity, including without
limitation, the sale, offer for sale, public use, or disclosure of said
Improvements, that could foreseeably cause forfeiture of patent rights therein.

                                   ARTICLE X.
                             LIMITATION OF LIABILITY

                  Section 10.1 Limitation on Types of Damages. NOTWITHSTANDING
ANY PROVISION OF THIS AGREEMENT TO THE CONTRARY, NEITHER PARTY SHALL BE LIABLE
TO THE OTHER PARTY FOR ANY SPECIAL, INCIDENTAL, INDIRECT, PUNITIVE OR
CONSEQUENTIAL DAMAGES, WHETHER FORESEEABLE OR NOT, ARISING OUT OF, OR IN
CONNECTION WITH SUCH PARTY'S FAILURE TO PERFORM ITS RESPECTIVE OBLIGATIONS OR
BREACH OF ITS RESPECTIVE REPRESENTATIONS HEREUNDER.

                  Section 10.2 Limitation on Amount of Damages. IN NO EVENT
SHALL CYTOMEDIX BE LIABLE TO CURATIVE IN CONNECTION WITH THIS AGREEMENT IN AN
AGGREGATE AMOUNT THAT EXCEEDS THE TOTAL AMOUNT PAID BY CURATIVE TO CYTOMEDIX
PURSUANT TO THE TERMS HEREIN.

                  Section 10.3 Survival. The provisions of this Article X
survive the expiration or termination of this Agreement.

                                   ARTICLE XI.
                                 INDEMNIFICATION

                  Section 11.1 Indemnification by Curative. Subject to Article
X, Curative shall fully defend and hold Cytomedix and its Affiliates, and their
respective directors, stockholders, employees, officers and agents harmless from
any and all claims, demands, damages, liabilities, costs or expenses (including
attorneys' fees and expenses) arising out of or in connection with (a) the
negligent, reckless or intentional acts or omissions of Curative or its agents,
or (b) the breach by Curative of any representation, warranty, covenant or
obligation in this Agreement.

                  Section 11.2 Indemnification by Cytomedix. Subject to Article
X, Cytomedix shall fully defend and hold Curative and its Affiliates, and their
respective directors, stockholders, employees, officers and agents harmless from
any and all claims, demands, damages, liabilities, costs or expenses (including
attorneys' fees and expenses) arising out of or in connection with (a) the
negligent, reckless or intentional acts or omissions of Cytomedix or its agents,
or (b) the breach by Cytomedix of any representation, warranty, covenant or
obligation in this Agreement.

                                       9
<PAGE>

                  Section 11.3 Procedure for Indemnification - Third Party
Claims.

                           (a) Promptly after receipt by an indemnified party
                  under Section 11.1 or 11.2 of notice of the commencement of
                  any proceeding ("Proceeding") against it by a third party,
                  such indemnified party shall, if a claim is to be made against
                  an indemnifying party under such Sections, give notice to the
                  indemnifying party of the commencement of such Proceeding, but
                  the failure to notify the indemnifying party does not relieve
                  the indemnifying party of any liability that it may have to
                  any indemnified party, except to the extent that the
                  indemnifying party demonstrates that the defense of such
                  action is prejudiced by the indemnified party's failure to
                  give such notice.

                           (b) If an indemnified party gives notice to the
                  indemnifying party of the commencement of a Proceeding
                  referred to in Section 11.3(a), the indemnifying party is
                  entitled to participate in such Proceeding and, to the extent
                  that it wishes to assume the defense of such Proceeding with
                  counsel satisfactory to the indemnified party and, after
                  notice from the indemnifying party to the indemnified party of
                  its election to assume the defense of such Proceeding, the
                  indemnifying party is not, as long as it diligently conducts
                  such defense, liable to the indemnified party under this
                  Article XI for any fees of other counsel or any other expenses
                  with respect to the defense of such Proceeding, in each case
                  subsequently incurred by the indemnified party in connection
                  with the defense of such Proceeding, other than reasonable
                  costs of investigation (unless (i) the indemnifying party is
                  also a party to such Proceeding and the indemnified party
                  determines in good faith that joint representation would be
                  inappropriate, or (ii) the indemnifying party fails to provide
                  reasonable assurance to the indemnified party of its financial
                  capacity to defend such Proceeding and provide indemnification
                  with respect to such Proceeding). If the indemnifying party
                  assumes the defense of a Proceeding, (x) it will be
                  conclusively established for purposes of this Agreement that
                  the claims made in that Proceeding are within the scope of and
                  subject to indemnification; (y) no compromise or settlement of
                  such claims may be effected by the indemnifying party without
                  the indemnified party's consent unless (A) there is no finding
                  or admission of any violation of legal requirements or any
                  violation of the rights of any person and no effect on any
                  other claims that may be made against the indemnified party,
                  and (B) the sole relief provided is monetary damages that are
                  paid in full by the indemnifying party; and (z) the
                  indemnified party will have no liability with respect to any
                  compromise or settlement of such claims effected without its
                  consent. If notice is given to an indemnifying party of the
                  commencement of any Proceeding and the indemnifying party does
                  not, within ten (10) days after the indemnified party's notice
                  is given, give notice to the indemnified party of its election
                  to assume the defense of such Proceeding, the indemnifying
                  party will be bound by any determination made in such
                  Proceeding or any compromise or settlement effected by the
                  indemnified party.

                           (c) Notwithstanding the foregoing, if an indemnified
                  party determines in good faith that there is a reasonable
                  probability that a Proceeding may adversely affect it other
                  than as a result of monetary damages for which it would be
                  entitled to indemnification under this Agreement, the
                  indemnified party may, by notice to the indemnifying party,
                  assume the exclusive right to defend, compromise, or settle
                  such Proceeding, but the indemnifying party will not be bound
                  by any determination of a Proceeding so defended for the
                  purposes of this Agreement or any compromise or settlement
                  effected without its consent (which may not be unreasonably
                  withheld).

                                       10
<PAGE>

                  Section 11.4 Procedure For Indemnification - Other Claims. A
claim for indemnification for any matter not involving a third-party claim may
be asserted by notice to the party from whom indemnification is sought.

                  Section 11.5 Survival. The provisions of this Article XI
survive the expiration or termination of this Agreement.

                                  ARTICLE XII.
                              TERM AND TERMINATION

                  Section 12.1 Term. Unless earlier terminated pursuant to
Sections 12.2 or 12.3 below, this Agreement commences upon the Effective Date
and terminates upon Cytomedix's written notice to Curative of the occurrence of
a Triggering Event (such period, the "Term"). For purposes of this Section 12.1,
a "Triggering Event" constitutes any reasonable determination by Cytomedix that
FDA approval of Procuren is not likely to be obtained. Notwithstanding the
foregoing, upon the receipt of FDA approval of Procuren, if any, the Term
extends for a period of one (1) year from the date of FDA approval and
thereafter may be extended for successive terms of one (1) year each upon the
mutual consent of the parties hereto.

                  Section 12.2 Termination by Cytomedix. Cytomedix may terminate
this Agreement:

                           (a) If Curative fails to pay any amounts owed
                  hereunder when due and does not cure such non-payment within
                  thirty (30) days thereof; or

                           (b) Upon thirty (30) days' prior written notice to
                  Curative, if Curative breaches any of its other material
                  obligations hereunder and fails to cure such breach by the end
                  of such thirty (30) day period.

                  Section 12.3 Termination by Curative. Curative may terminate
this Agreement upon thirty (30) days' prior written notice to Cytomedix, if
Cytomedix breaches any of its other material obligations hereunder and fails to
cure such breach by the end of such thirty (30) day period. In addition,
Curative may terminate this Agreement for any reason upon ninety (90) days'
prior written notice to Cytomedix.

                  Section 12.4 Termination or Modification in the Event of
Governmental Action. If the parties receive notice of any Governmental Action,
the parties shall attempt in good faith to amend this Agreement in order to
comply with the Governmental Action. If the parties, acting in good faith, are
unable to agree to amendments necessary to comply with the Governmental Action
or if the parties determine in good faith that compliance with the Governmental
Action is impossible or unfeasible, this Agreement shall terminate at the end of
ten (10) days after written notice thereof by either party. Neither party shall
be in breach of this Agreement or liable to the other party as the result of the
termination of this Agreement pursuant to this Section 12.4. In addition,
nothing contained herein to the contrary, Cytomedix shall have no obligation to
supply Procuren to Curative in, and this Agreement shall otherwise terminate
with respect to, any Procuren State in which (a) Cytomedix determines in good
faith that it is impossible or unfeasible to supply Procuren to Curative
hereunder as the result of any Governmental Action or (b) Cytomedix otherwise
determines in good faith that the continued operation of the Procuren Operations
therein would result in Cytomedix being in violation of any applicable law,
regulation, rule or other legal requirement applicable to it. Cytomedix shall
promptly notify Curative of such determination with respect to any Procuren
State.

                                       11
<PAGE>

                  Section 12.5 Remedies upon Termination. Termination of this
Agreement shall not limit either party from pursuing any other remedies
otherwise available to it, including, without limitation, injunctive relief.

                  Section 12.6 Effect of Termination. In the event of notice of
termination, each party shall continue to perform its obligations hereunder up
to the date of termination. Upon termination, except as otherwise provided
herein, the obligations of the parties hereunder shall cease; provided, however,
that Cytomedix shall be obligated to supply Procuren pursuant to any Orders
received by Cytomedix prior to the date of termination. Following termination of
this Agreement, Curative shall promptly pay Cytomedix any money then due and
owing upon receipt of invoice therefor.

                                  ARTICLE XIII.
                                  MISCELLANEOUS

                  Section 13.1 Force Majeure. Neither party shall be in default
by reason of any failure in performance of this Agreement if such failure arises
out of causes beyond the control of such nonperforming party, including, but not
restricted to, acts of God, acts of government, insurrections, fires, floods,
accidents, epidemics, quarantines, restrictions, strikes, freight embargoes,
inability to secure materials or transportation facilities, or any and all other
causes beyond the party's reasonable control.

                  Section 13.2 No Joint Venture. Nothing herein shall create any
association, partnership, joint venture or agency relationship between the
parties hereto or any third party.

                  Section 13.3 Further Assurances. The parties shall cooperate
reasonably with each other in connection with any steps required to be taken as
part of their respective obligations under this Agreement, and the parties agree
(a) to furnish upon request to each other such further information, (b) to
execute and deliver to each other such other documents, and (c) to do such other
acts and things, all as the other party may reasonably request for the purpose
of carrying out the intent of this Agreement.

                  Section 13.4 Compliance with Legal Requirements.

                           (a) Curative covenants that it shall comply in all
                  material respects with all Federal, state or local laws,
                  regulations, ordinances or other legal requirements in
                  connection with the transportation, storage, use, resale and
                  disposal of Procuren and the performance of its duties
                  hereunder.

                           (b) Cytomedix covenants that it shall comply in all
                  material respects with all Federal, state or local laws,
                  regulations, ordinances or other legal requirements in
                  connection with the storage and manufacture of Procuren and
                  the performance of its duties hereunder.

                  Section 13.5 Notices. All notices, consents, waivers, and
other communications under this Agreement must be in writing and are deemed to
have been duly given when (a) delivered by hand with written confirmation of
receipt, (b) sent by facsimile with confirmation of transmission by the
transmitting equipment, (c) five (5) days after delivery, if sent by certified
mail, return receipt requested, or (d) one (1) day after delivery, if sent by a
nationally recognized overnight delivery service, return receipt requested, in
each case to the appropriate addresses, or facsimile numbers set forth below (or
to such other addresses, facsimile numbers or as a party may designate by notice
to the other parties):

                                       12
<PAGE>

            Cytomedix:       Cytomedix GmbH
                             c/o Cytomedix, Inc.
                             Three Parkway North
                             Deerfield, Illinois 60015
                             Attention: Christopher J. Caywood
                             Vice President of Strategy and Business Development
                             Fax: (847) 405-7801

            with a copy to:  Latham & Watkins
                             1001 Pennsylvania Ave., N.W.
                             Suite 1300
                             Washington, D.C. 20004
                             Attention: Stuart S. Kurlander, Esq.
                             Fax: (202) 637-2201

            Curative:        Curative Health Services, Inc.
                             150 Motor Parkway
                             Hauppauge, New York 11788
                             Attention: William Tella
                             Sr. Vice President of Business Development
                             Fax: (631) 233-8107

            with a copy to:  Dorsey & Whitney LLP
                             250 Park Avenue
                             New York, New York 10177
                             Attention: Seth I. Truwit, Esq.
                             Fax: (212) 953-7201

                  Section 13.6 Waiver. The rights and remedies of the parties to
this Agreement are cumulative and not alternative. Neither the failure nor any
delay by any party in exercising any right under this Agreement operates as a
waiver of such right, and no single or partial exercise of any such right
precludes any other or further exercise of such right or the exercise of any
other right. To the maximum extent permitted by applicable law, (a) no claim or
right arising out of this Agreement can be discharged by one party, in whole or
in part, by a waiver or renunciation of the claim or right unless in writing
signed by the other party; (b) no waiver that may be given by a party will be
applicable except in the specific instance for which it is given; and (c) no
notice to or demand on one party will be deemed to be a waiver of any obligation
of such party or of the right of the party giving such notice or demand to take
further action without notice or demand as provided in this Agreement.

                  Section 13.7 Entire Agreement and Modification. This Agreement
and the Asset Purchase Agreement constitute the entire agreement between the
parties with respect to the subject matter of this Agreement and supersede all
prior written and oral agreements and understandings between the parties with
respect to the subject matter of this Agreement. This Agreement may not be
amended except by a written agreement signed on behalf of each of the parties
hereto.

                  Section 13.8 Assignment. No party to this Agreement may
assign, transfer, or otherwise dispose of any of its rights, duties, or
obligations hereunder without the prior written consent of the other party
hereto; provided, however, that (a) either party may assign, transfer, or
otherwise dispose of any of its rights, duties or obligations hereunder to any
of its Affiliates without the prior

                                       13
<PAGE>

consent of the other party, and (b) Cytomedix may subcontract any of its
manufacturing obligations hereunder (provided that in any such case the
assigning or subcontracting party shall continue to be liable for its
obligations hereunder), provided that no such assignment or delegation pursuant
to clauses (a) or (b) shall relieve either party from any of its obligations
hereunder. Subject to the foregoing, this Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their permitted successors
and assigns.

                  Section 13.9 Severability. If any provision of this Agreement
is held invalid or unenforceable by any court of competent jurisdiction, the
other provisions of this Agreement remain in full force and effect. The parties
further agree that if any provision contained herein is, to any extent, held
invalid or unenforceable in any respect under the laws governing this Agreement,
they shall take any actions necessary to render the remaining provisions of this
Agreement valid and enforceable to the fullest extent permitted by law and, to
the extent necessary, shall amend or otherwise modify this Agreement to replace
any provision contained herein that is held invalid or unenforceable with a
valid and enforceable provision giving effect to the intent of the parties.

                  Section 13.10 No Third Party Beneficiary. No provision of this
Agreement shall create, or be deemed to create, any legal or equitable right in
any person not a party to this Agreement or give any such person any claim
against any party to this Agreement that such party would not have but for this
Agreement.

                  Section 13.11 Section Headings; Construction. The headings of
Articles and Sections in this Agreement are provided for convenience only and
will not affect its construction or interpretation. All words used in this
Agreement will be construed to be of such gender or number as the context
requires. The language used in the Agreement shall be construed, in all cases,
according to its fair meaning, and not for or against any party hereto. The
parties acknowledge that each party has reviewed this Agreement and that rules
of construction to the effect that any ambiguities are to be resolved against
the drafting party shall not be available in the interpretation of this
Agreement.

                  Section 13.12 Governing Law; Jurisdiction. This Agreement is
to be governed by and construed under the laws of the State of New York without
regard to conflicts of laws principles that would require the application of any
other law. The parties agree that the state and federal courts located in New
York County, New York, shall be the sole venue and shall have sole jurisdiction
for the resolution of all disputes arising hereunder.

                  Section 13.13 Execution of Agreement, Counterparts. This
Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original copy of this Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement. The exchange
of copies of this Agreement and of signature pages by facsimile transmission
shall constitute effective execution and delivery of this Agreement as to the
parties and may be used in lieu of the original Agreement for all purposes.
Signatures of the parties transmitted by facsimile shall be deemed to be their
original signatures for any purpose whatsoever.

                  [remainder of page intentionally left blank]

                                       14
<PAGE>

                      [signature page to Supply Agreement]

                  IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first written above.

                                       CYTOMEDIX:
                                       CYTOMEDIX GMBH

                                       By:
                                          -------------------------------------
                                       Name:
                                            -----------------------------------
                                       Its:
                                           ------------------------------------

                                       CURATIVE:
                                       CURATIVE HEALTH SERVICES, INC.

                                       By:
                                          -------------------------------------
                                       Name:
                                            -----------------------------------
                                       Its:
                                           ------------------------------------

                                       15
<PAGE>

                   EXHIBIT 4.2 - PROCUREN RELEASE TEST RESULTS

Attached

                                       16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}]]