Document:

EX-4.1

 

Exhibit 4.1

 

 

STOCKHOLDER PROTECTION RIGHTS AGREEMENT

dated as of

October 16, 2006

between

CA, INC.

and

MELLON INVESTOR SERVICES LLC,

as Rights Agent

 

 

 

 

STOCKHOLDER PROTECTION RIGHTS AGREEMENT

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	ARTICLE I	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	DEFINITIONS	 	 	 	 
	 	 	 
	 	 	 	 
	1.1	 	Definitions
	 	 	2	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE II	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	THE RIGHTS	 	 	 	 
	 	 	 
	 	 	 	 
	2.1	 	Summary of Rights
	 	 	17	 
	2.2	 	Legend on Common Stock Certificates
	 	 	18	 
	2.3	 	Exercise of Rights; Separation of Rights
	 	 	19	 
	2.4	 	Adjustments to Exercise Price; Number of Rights
	 	 	22	 
	2.5	 	Date on Which Exercise is Effective
	 	 	24	 
	2.6	 	Execution, Authentication, Delivery and Dating of Rights Certificates
	 	 	24	 
	2.7	 	Registration, Registration of Transfer and Exchange
	 	 	25	 
	2.8	 	Mutilated, Destroyed, Lost and Stolen Rights Certificates
	 	 	26	 
	2.9	 	Persons Deemed Owners
	 	 	28	 
	2.10	 	Delivery and Cancellation of Certificates
	 	 	28	 
	2.11	 	Agreement of Rights Holders
	 	 	29	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE III	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	 ADJUSTMENTS TO THE RIGHTS IN THE EVENT OF CERTAIN TRANSACTIONS
	 	 	 	 
	 	 	 
	 	 	 	 
	3.1	 	Flip-in
	 	 	29	 
	3.2	 	Flip-over
	 	 	33	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE IV	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	THE RIGHTS AGENT	 	 	 	 
	 	 	 
	 	 	 	 
	4.1	 	General
	 	 	34	 
	4.2	 	Merger or Consolidation or Change of Name of Rights Agent
	 	 	35	 

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	 	 	 	 	Page
	4.3	 	Duties of Rights Agent
	 	 	37	 
	4.4	 	Change of Rights Agent
	 	 	40	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE V	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	MISCELLANEOUS	 	 	 	 
	 	 	 
	 	 	 	 
	5.1	 	Redemption
	 	 	42	 
	5.2	 	Expiration
	 	 	45	 
	5.3	 	Issuance of New Rights Certificates
	 	 	45	 
	5.4	 	Supplements and Amendments
	 	 	46	 
	5.5	 	Fractional Shares
	 	 	46	 
	5.6	 	Rights of Action
	 	 	47	 
	5.7	 	Holder of Rights Not Deemed a Stockholder
	 	 	48	 
	5.8	 	Notice of Proposed Actions
	 	 	48	 
	5.9	 	Notices
	 	 	49	 
	5.10	 	Suspension of Exercisability
	 	 	50	 
	5.11	 	Costs of Enforcement
	 	 	50	 
	5.12	 	Successors
	 	 	50	 
	5.13	 	Benefits of this Agreement
	 	 	50	 
	5.14	 	Determination and Actions by the Board of Directors, etc
	 	 	51	 
	5.15	 	Descriptive Headings; Section References
	 	 	51	 
	5.16	 	GOVERNING LAW
	 	 	52	 
	5.17	 	Counterparts
	 	 	52	 
	5.18	 	Severability
	 	 	52	 

EXHIBITS

			
	Exhibit A	 	Form of Rights Certificate (Together with Form of Election to Exercise)

			
	Exhibit B	 	Form of Certificate of Designation and Terms of Participating Preferred Stock

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STOCKHOLDER PROTECTION RIGHTS AGREEMENT

     STOCKHOLDER PROTECTION RIGHTS AGREEMENT (as amended from time to time, this “Agreement”),
dated as of October 16, 2006, between CA, Inc., a Delaware corporation (the “Company”), and Mellon
Investor Services LLC, a New Jersey limited liability company, as Rights Agent (the “Rights Agent”,
which term shall include any successor Rights Agent hereunder).

WITNESSETH:

     WHEREAS, the Rights Agreement (the “Existing Rights Agreement”), dated as of June 18, 1991, as
amended on May 17, 1995, May 23, 2001 and November 9, 2001, between the Company and Mellon Investor
Services LLC (as successor Rights Agent to Manufacturers Hanover Trust Company), is scheduled to
expire on the Close of Business of November 30, 2006;

     WHEREAS, the Company desires to enter into a Stockholder Protection Rights Agreement to become
effective immediately upon the expiration of the Existing Rights Agreement;

     WHEREAS, the Board of Directors of the Company has (a) authorized and declared a dividend of
one right (“Right”) in respect of each share of Common Stock (as hereinafter defined) held of
record as of the Close of Business (as hereinafter defined) on October 26, 2006 (the “Record
Time”), payable in respect of each such share upon the later of (i) certification by the NYSE (as
hereinafter defined) to the SEC (as hereinafter defined) that the Rights have been approved for
listing and registration and (ii) immediately following the expiration of the Existing Rights
Agreement (the “Payment Time”) and (b) as provided in Section 2.4, authorized the issuance of one
Right in respect of each share of Common Stock

 

 

issued after the Payment Time and prior to the Separation Time (as hereinafter defined) and,
to the extent provided in Section 5.3, each share of Common Stock issued after the Separation Time;

     WHEREAS, subject to the terms and conditions hereof, each Right entitles the holder thereof,
after the Separation Time, to purchase securities or assets of the Company (or, in certain cases,
securities of certain other entities) pursuant to the terms and subject to the conditions set forth
herein; and

     WHEREAS, the Company desires to appoint the Rights Agent to act on behalf of the Company, and
the Rights Agent is willing so to act, in connection with the issuance, transfer, exchange and
replacement of Rights Certificates (as hereinafter defined), the exercise of Rights and other
matters referred to herein;

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

ARTICLE I

DEFINITIONS

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

     “Acquiring Person” shall mean any Person who is or becomes the Beneficial Owner of 20% or more
of the outstanding shares of Common Stock; provided, however, that the term
“Acquiring Person” shall not include (a) the Company; (b) any Subsidiary of the Company; (c) any
employee stock ownership or other employee benefit plan of the Company or a Subsidiary of the
Company (or any entity or trustee holding shares of Common Stock for or pursuant to the terms of
any such plan or for the purpose of funding any such plan or funding

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other employee benefits for employees of the Company or of any Subsidiary of the Company); or
(d) any Person (i) who is the Beneficial Owner of 20% or more of the outstanding shares of Common
Stock on the date of this Agreement and who has continuously been since the date of this Agreement
the Beneficial Owner of 20% or more of the outstanding shares of Common Stock until such time
hereafter as such Person shall become the Beneficial Owner (other than by means of a stock
dividend, stock split or reclassification) of an additional .1% of the outstanding shares of Common
Stock, (ii) who becomes the Beneficial Owner of 20% or more of the outstanding shares of Common
Stock solely as a result of an acquisition by the Company of shares of Common Stock until such time
thereafter as such Person shall become the Beneficial Owner (other than by means of a stock
dividend, stock split or reclassification) of an additional .1% of the outstanding shares of Common
Stock while such Person is or as a result of which such Person becomes the Beneficial Owner of 20%
or more of the outstanding shares of Common Stock, (iii) who becomes the Beneficial Owner of 20% or
more of the outstanding shares of Common Stock but who (in the good faith determination of the
Board of Directors of the Company) acquired Beneficial Ownership of shares of Common Stock without
any plan or intention to seek or affect control of the Company, if such Person promptly divests, or
promptly enters into an agreement with, and satisfactory to, the Company, in its sole discretion,
to divest, and subsequently divests in accordance with the terms of such agreement (without
exercising or retaining any power, including voting power, with respect to such shares), sufficient
shares of Common Stock (or securities convertible into, exchangeable into or exercisable for,
Common Stock) so that such Person ceases to be the Beneficial Owner of 20% or more of the
outstanding shares of Common Stock or (iv) who Beneficially Owns shares of Common Stock consisting
solely of one or more of (A) shares of Common Stock Beneficially Owned pursuant to the grant

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or exercise of an option granted to such Person (an “Option Holder”) by the Company in
connection with an agreement to merge with, or acquire, the Company entered into prior to a Flip-in
Date, (B) shares of Common Stock (or securities convertible into, exchangeable into or exercisable
for Common Stock) Beneficially Owned by such Option Holder or its Affiliates or Associates at the
time of grant of such option and (C) shares of Common Stock (or securities convertible into,
exchangeable into or exercisable for Common Stock) acquired by Affiliates or Associates of such
Option Holder after the time of such grant which, in the aggregate, amount to less than 1% of the
outstanding shares of Common Stock. For the avoidance of doubt, (x) Walter Haefner (“Haefner”) and
his Affiliates and Associates shall not be or become an Acquiring Person on account of the
Beneficial Ownership of Common Stock by any of them, so long as Haefner and his Affiliates and
Associates (other than the Company and its Subsidiaries) do not, in the aggregate, Beneficially Own
more than the sum of 126,562,500 shares of Common Stock and that number of shares constituting .1%
of the outstanding shares of Common Stock; provided, however, that to the extent at
any time after the Record Time the Company shall (I) declare a dividend on the Common Stock payable
in shares of Common Stock, (B) subdivide the outstanding Common Stock, (C) combine the outstanding
shares of Common Stock or (D) issue any shares of its capital stock in a reclassification of the
Common Stock (including any such reclassification in connection with a consolidation or merger in
which the Company is the surviving corporation), the number of shares of Common Stock or capital
stock, as the case may be, which Haefner, together with his Affiliates and Associates, is entitled
to Beneficially Own without being deemed an “Acquiring Person” hereunder shall be proportionately
increased or decreased; and (y) no Successor of Haefner or any Affiliate or Associate of such
Successor, shall become an Acquiring Person on account of Common Stock received directly or
indirectly from

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Haefner, so long as such Successor, Affiliate or Associate does not thereafter acquire
Beneficial Ownership of, any additional shares of the Company’s Common Stock (other than pursuant
to stock dividends, stock splits and reclassifications of Common Stock as provided for above).

     “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule
12b-2 under the Exchange Act, as such Rule is in effect on the date of this Agreement.

     “Agreement” shall have the meaning set forth in the Preamble.

     A Person shall be deemed the “Beneficial Owner” of, and to have “Beneficial Ownership” of, and
to “Beneficially Own”, any securities (i) as to which such Person or any of such Person’s
Affiliates or Associates is or may be deemed to be, directly or indirectly, the beneficial owner of
pursuant to Rule 13d-3 and Rule 13d-5 under the Exchange Act, as such Rules are in effect on the
date of this Agreement, (ii) as to which such Person or any of such Person’s Affiliates or
Associates has the right to become Beneficial Owner (whether such right is exercisable immediately
or only after the passage of time or the occurrence of conditions) pursuant to any agreement,
arrangement or understanding, or upon the exercise of conversion rights, exchange rights, rights
(other than the Rights), warrants or options, or otherwise; provided, however, that
a Person shall not be deemed the “Beneficial Owner” or to have “Beneficial Ownership” of, or to
“Beneficially Own”, any security (i) solely because such security has been tendered pursuant to a
tender or exchange offer made by such Person or any of such Person’s Affiliates or Associates until
such tendered security is accepted for payment or exchange, (ii) acquired by a Person engaged in
business as an underwriter of securities through participation as an underwriter or selling group
member in good faith in a firm commitment underwriting until the expiration of 40 days after the
date of such acquisition or (iii) solely

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because such Person or any of such Person’s Affiliates or Associates has or shares the power
to vote or direct the voting of such security pursuant to a revocable proxy or consent given in
response to a public proxy or consent solicitation made to more than ten holders of shares of a
class of stock of the Company registered under Section 12 of the Exchange Act and pursuant to, and
in accordance with, the applicable rules and regulations under the Exchange Act, except if such
power (or the arrangements relating thereto) is then reportable under Item 6 of Schedule 13D under
the Exchange Act (or any similar provision of a comparable or successor statement).
Notwithstanding the foregoing, no officer or director of the Company shall be deemed to
Beneficially Own any securities of any other Person solely by virtue of any actions such officer or
director takes in such capacity. For purposes of this Agreement, in determining the percentage of
the outstanding shares of Common Stock with respect to which a Person is the Beneficial Owner, all
shares as to which such Person is deemed the Beneficial Owner shall be deemed outstanding.

     “Business Day” shall mean any day other than a Saturday, Sunday or a day on which banking
institutions in New York, New York are generally authorized or obligated by law or executive order
to close.

     “Close of Business” on any given date shall mean 5:00 p.m. New York City time on such date or,
if such date is not a Business Day, 5:00 p.m. New York City time on the next succeeding Business
Day.

     “Common Stock” shall mean the shares of Common Stock, par value $0.10 per share, of the
Company.

     “Company” shall have the meaning set forth in the Preamble.

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     “Definitive Acquisition Agreement” shall mean any agreement entered into by the Company that
is conditioned on the approval by the holders of not less than a majority of the outstanding shares
of Common Stock at a special meeting called for such purpose with respect to (i) a merger,
consolidation, recapitalization, reorganization, share exchange, business combination or similar
transaction involving the Company or (ii) the acquisition in any manner, directly or indirectly, of
more than 50% of the consolidated total assets (including, without limitation, equity securities of
its subsidiaries) of the Company.

     “Election to Exercise” shall have the meaning set forth in Section 2.3(d).

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

     “Exchange Ratio” shall have the meaning set forth in Section 3.1(c).

     “Exchange Time” shall mean the time at which the right to exercise the Rights shall terminate
pursuant to Section 3.1(c).

     “Exemption Date” shall have the meaning set forth in Section 5.1(c).

     “Exercise Price” shall mean, as of any date, the price at which a holder may purchase the
securities issuable upon exercise of one whole Right. Until adjustment thereof in accordance with
the terms hereof, the Exercise Price shall equal $100.00.

     “Existing Rights Agreement” shall have the meaning set forth in the Recitals.

     “Expansion Factor” shall have the meaning set forth in Section 2.4(a).

     “Expiration Time” shall mean the earliest of (i) the Exchange Time, (ii) the Redemption Time
and (iii) the Close of Business on November 30, 2009.

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     “Flip-in Date” shall mean any Stock Acquisition Date or such later date and time as the Board
of Directors of the Company may from time to time fix by resolution adopted prior to the Flip-in
Date that would otherwise have occurred.

     “Flip-over Entity,” for purposes of Section 3.2, shall mean (i) in the case of a Flip-over
Transaction or Event described in clause (i) of the definition thereof, the Person issuing any
securities into which shares of Common Stock are being converted or exchanged and, if no such
securities are being issued, the other Person that is a party to such Flip-over Transaction or
Event and (ii) in the case of a Flip-over Transaction or Event referred to in clause (ii) of the
definition thereof, the Person receiving the greatest portion of the (A) assets or, if (A) is not
readily determinable, (B) operating income or cash flow being transferred in such Flip-over
Transaction or Event, provided in all cases if such Person is a Subsidiary of another
Person, the ultimate parent entity of such Person shall be the Flip-over Entity.

     “Flip-over Stock” shall mean the capital stock (or similar equity interest) with the greatest
voting power in respect of the election of directors (or other persons similarly responsible for
the direction of the business and affairs) of the Flip-over Entity.

     “Flip-over Transaction or Event” shall mean a transaction or series of transactions, on or
after a Flip-in Date, in which, directly or indirectly, (i) the Company shall consolidate or merge
or participate in a statutory share exchange with any other Person if, at the time of consummation
of the consolidation, merger or statutory share exchange or at the time the Company enters into any
agreement with respect to any such consolidation, merger or statutory share exchange, the Acquiring
Person is the Beneficial Owner of 90% or more of the outstanding shares of Common Stock or controls
the Board of Directors of the Company and either (A) any term of or arrangement concerning the
treatment of shares of capital stock in such consolidation,

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merger or statutory share exchange relating to the Acquiring Person is not identical to the
terms and arrangements relating to other holders of the Common Stock or (B) the Person with whom
the transaction or series of transactions occurs is the Acquiring Person or an Affiliate or
Associate of the Acquiring Person or (ii) the Company shall sell or otherwise transfer (or one or
more of its Subsidiaries shall sell or otherwise transfer) assets (A) aggregating more than 50% of
the assets (measured by either book value or fair market value) or (B) generating more than 50% of
the operating income or cash flow, of the Company and its Subsidiaries (taken as a whole) to any
Person (other than the Company or one or more of its wholly owned Subsidiaries) or to two or more
such Persons which are Affiliates or Associates or are otherwise acting in concert, if, at the time
of the entry by the Company (or any such Subsidiary) into an agreement with respect to such sale or
transfer of assets, the Acquiring Person is the Beneficial Owner of 90% or more of the outstanding
shares of Common Stock or controls the Board of Directors of the Company. For purposes of the
foregoing description, the term “Acquiring Person” shall include any Acquiring Person and its
Affiliates and Associates, counted together as a single Person. An Acquiring Person shall be
deemed to control the Company’s Board of Directors when, on or following a Stock Acquisition Date,
the persons who were directors of the Company (or persons nominated and/or appointed as directors
by vote of a majority of such persons) before the Stock Acquisition Date shall cease to constitute
a majority of the Company’s Board of Directors.

     “Haefner” shall have the meaning set forth in the definition of Acquiring Person.

     “Market Price” per share of any securities on any date shall mean the average of the daily
closing prices per share of such securities (determined as described below) on each of the 20
consecutive Trading Days through and including the Trading Day immediately preceding such date;
provided, however, that if any event described in Section 2.4, or any analogous
event,

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shall have caused the closing prices used to determine the Market Price on any Trading Days
during such period of 20 Trading Days not to be fully comparable with the closing price on such
date, each such closing price so used shall be appropriately adjusted in order to make it fully
comparable with the closing price on such date. The closing price per share of any securities on
any date shall be the last reported sale price, regular way, or, in case no such sale takes place
or is quoted on such date, the average of the closing bid and asked prices, regular way, for each
share of such securities, 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, Inc. (“NYSE”) or, if the securities are not listed or admitted to trading on the NYSE, as
reported in the principal consolidated transaction reporting system with respect to securities
listed on the principal national securities exchange on which the securities are listed or admitted
to trading, or, if the securities are not listed or admitted to trading on any national securities
exchange or on the NYSE, as reported by the National Association of Securities Dealers, Inc.
Automated Quotation System or such other system then in use, or, if on any such date the securities
are not listed or admitted to trading on any national securities exchange or 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 securities selected by the Board of Directors of the Company;
provided, however, that if on any such date the securities are not listed or
admitted to trading on a national securities exchange or traded in the over-the-counter market, the
closing price per share of such securities on such date shall mean the fair value per share of such
securities on such date as determined in good faith by the Board of Directors of the Company, after
consultation with a nationally recognized investment banking firm, and set forth in a certificate
delivered to the Rights Agent.

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     “NYSE” shall have the meaning set forth in the definition of Market Price.

     “Option Holder” shall have the meaning set forth in the definition of Acquiring Person.

     “Outside Meeting Date” shall have the meaning set forth in Section 5.1(c).

     “Payment Time” shall have the meaning set forth in the Recitals.

     “Person” shall mean any individual, firm, partnership, limited liability company, association,
group (as such term is used in Rule 13d-5 under the Exchange Act, as such Rule is in effect on the
date of this Agreement), corporation or other entity, including any successor (by merger or
otherwise) thereof.

     “Preferred Stock” shall mean the Series Two Participating Preferred Stock, Class A, without
par value, of the Company created by a Certificate of Designation and Terms in substantially the
form set forth in Exhibit B hereto appropriately completed.

     “Qualifying Offer” shall mean an offer determined by a majority of independent directors of
the Company to have, to the extent required for the type of offer specified, each of the following
characteristics:

     (a) a fully financed all-cash tender offer or an exchange offer, offering shares of common
stock of the offeror, or a combination thereof, in each such case for any and all of the
outstanding shares of Common Stock at the same per-share consideration;

     (b) an offer that has commenced within the meaning of Rule 14d-2(a) under the Exchange Act and
is made by an offeror (including Affiliates and/or Associates of such offeror) that Beneficially
Owns no more than 5% of the outstanding Common Stock as of the date of such commencement;

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          (c) if the offer includes shares of common stock of the offeror, an offer pursuant to which
the offeror shall permit representatives of the Company, including, without
limitation, a nationally recognized investment banking firm retained by the Board of Directors
of the Company, legal counsel and an accounting firm designated by the Company to have access to
such offeror’s books, records, management, accountants and other appropriate outside advisers for
the purposes of permitting such representatives to conduct a due diligence review of the offeror in
order to allow the Board of Directors of the Company to evaluate the offer and make an informed
recommendation to the stockholders;

          (d) an offer that is subject only to the minimum tender condition described below in item (g)
of this definition and other customary terms and conditions, which conditions shall not include any
financing, funding or similar conditions or any requirements with respect to the offeror or its
agents being permitted any due diligence with respect to the books, records, management,
accountants or any other outside advisers of the Company;

          (e) an offer pursuant to which the Company and its stockholders have received an irrevocable
written commitment of the offeror that the offer will remain open for not less than 120 Business
Days and, if a Special Meeting Demand is duly delivered to the Board of Directors in accordance
with Section 5.1(c), for at least 10 Business Days after the date of the Special Meeting or, if no
Special Meeting is held within the Special Meeting Period (as defined in Section 5.1(c)), for at
least 10 Business Days following the last day of such Special Meeting Period (the “Qualifying Offer
Period”);

          (f) an offer pursuant to which the Company has received an irrevocable written commitment by
the offeror that, in addition to the minimum time periods specified in item (e) of this definition,
the offer, if it is otherwise to expire prior thereto, will be extended for

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at least 15 Business
Days after (i) any increase in the price offered, or (ii) any bona fide alternative
offer is commenced by another Person within the meaning of Rule 14d-2(a) of the
Exchange Act; provided, however, that such offer need not remain open, as a
result of clauses (e) and (f) of this definition, beyond (1) the time which any other offer
satisfying the criteria for a Qualifying Offer is then required to be kept open under such clauses
(e) and (f), or (2) the expiration date, as such date may be extended by public announcement (with
prompt written notice to the Rights Agent) in compliance with Rule 14e-1 of the Exchange Act, of
any other tender offer for the Common Stock with respect to which the Board of Directors has agreed
to redeem the Rights immediately prior to acceptance for payment of Common Stock thereunder (unless
such other offer is terminated prior to its expiration without any Common Stock having been
purchased thereunder) or (3) one Business Day after the stockholder vote with respect to approval
of any Definitive Acquisition Agreement has been officially determined and certified by the
inspectors of elections;

          (g) an offer that is conditioned on a minimum of at least a majority of the outstanding shares
of the Common Stock being tendered and not withdrawn as of the offer’s expiration date, which
condition shall not be waivable;

          (h) an offer pursuant to which the Company and its stockholders have received an irrevocable
written commitment by the offeror to consummate as promptly as practicable upon successful
completion of the offer a second step transaction whereby all shares of the Common Stock not
tendered into the offer will be acquired at the same consideration per share actually paid pursuant
to the offer, subject to stockholders’ statutory appraisal rights, if any;

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          (i) an offer pursuant to which the Company and its stockholders have received an irrevocable
written commitment of the offeror that no amendments will be made to the offer to reduce the offer
consideration, or otherwise change the terms of the offer in a way
that is materially adverse to a tendering stockholder (other than extensions of the offer
consistent with the terms thereof);

          (j) an offer (other than an offer consisting solely of cash consideration) pursuant to which
the Company has received the written representation and certification of the offeror and, in their
individual capacities, the written representations and certifications of the offeror’s Chief
Executive Officer and Chief Financial Officer, that (i) all facts about the offeror that would be
material to making an investor’s decision to accept the offer have been fully and accurately
disclosed as of the date of the commencement of the offer within the meaning of Rule 14d-2(a) of
the Exchange Act, (ii) all such new facts will be fully and accurately disclosed on a prompt basis
during the entire period during which the offer remains open, and (iii) all required Exchange Act
reports will be filed by the offeror in a timely manner during such period; and

          (k) if the offer includes shares of stock of the offeror, (i) the stock portion of the
consideration must consist solely of common stock of an offeror that is a publicly owned United
States corporation, and whose common stock is freely tradable and is listed on either the NYSE or
the NASDAQ National Market System, (ii) no stockholder approval of the offeror is required to issue
such common stock, or, if required, has already been obtained, (iii) no Person (including such
Person’s Affiliates and Associates) beneficially owns more than 20% of the voting stock of the
offeror at the time of commencement of the offer or at any time during the term of the offer, and
(iv) no other class of voting stock of the offeror is outstanding, and the offeror meets the
registrant eligibility requirements for use of Form S-3 for registering securities

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under the
Securities Act (as hereinafter defined); including, without limitation, the filing of all required
Exchange Act reports in a timely manner during the 12 calendar months prior to the date of
commencement of the offer.

          For the purposes of the definition of Qualifying Offer, “fully financed” shall mean that the
offeror has sufficient funds for the offer and related expenses which shall be evidenced by (i)
firm, unqualified, written commitments from responsible financial institutions having the necessary
financial capacity, accepted by the offeror, to provide funds for such offer subject only to
customary terms and conditions, (ii) cash or cash equivalents then available to the offeror, set
apart and maintained solely for the purpose of funding the offer with an irrevocable written
commitment being provided by the offeror to the Board of Directors of the Company to maintain such
availability until the offer is consummated or withdrawn, or (iii) a combination of the foregoing;
which evidence has been provided to the Company prior to, or upon, commencement of the offer. If
an offer becomes a Qualifying Offer in accordance with this definition but subsequently ceases to
be a Qualifying Offer as a result of the failure at a later date to continue to satisfy any of the
requirements of this definition, such offer shall cease to be a Qualifying Offer and the provisions
of Section 5.1(c) shall no longer be applicable to such offer.

          “Qualifying Offer Period” shall have the meaning set forth in the definition of Qualifying
Offer.

          “Qualifying Offer Resolution” shall have the meaning set forth in Section 5.1(c).

          “Record Time” shall have the meaning set forth in the Recitals.

          “Redemption Price” shall mean an amount per Right equal to one-tenth of one cent, $0.001.

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          “Redemption Time” shall mean the time at which the right to exercise the Rights shall
terminate pursuant to Section 5.1.

          “Right” shall have the meaning set forth in the Recitals.

          “Rights Agent” shall have the meaning set forth in the Preamble.

          “Rights Certificate” shall have the meaning set forth in Section 2.3(c).

          “Rights Register” shall have the meaning set forth in Section 2.7(a).

          “SEC” shall mean the Securities Exchange Commission.

          “Securities Act” shall mean the Securities Act of 1933, as amended.

          “Separation Time” shall mean the earlier of (i) the Close of Business on the tenth Business
Day (or such later date as the Board of Directors of the Company may from time to time fix by
resolution adopted prior to the Separation Time that would otherwise have occurred) after the date
on which any Person commences a tender or exchange offer which, if consummated, would result in
such Person’s becoming an Acquiring Person and (ii) the time of the first event causing a Flip-in
Date to occur; provided, that if the foregoing results in the Separation Time being prior
to the Payment Time, the Separation Time shall be the Payment Time and provided
further, that if any tender or exchange offer referred to in clause (i) of this paragraph
is cancelled, terminated or otherwise withdrawn prior to the Separation Time without the purchase
of any shares of Common Stock pursuant thereto, such offer shall be deemed, for purposes of this
paragraph, never to have been made.

          “Special Meeting” shall have the meaning set forth in Section 5.1(c).

          “Special Meeting Demand” shall have the meaning set forth in Section 5.1(c).

          “Special Meeting Period” shall have the meaning set forth in Section 5.1(c).

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          “Stock Acquisition Date” shall mean the earlier of (i) the first date on which there shall be
a public announcement by the Company (by any means) that a Person has become an Acquiring Person;
or (ii) the date and time on which any Acquiring Person becomes the Beneficial Owner of more than
50% of the outstanding shares of Common Stock.

          “Subsidiary” of any specified Person shall mean any corporation or other entity of which a
majority of the voting power of the equity securities or a majority of the equity or membership
interest is Beneficially Owned, directly or indirectly, by such Person.

          “Successor” shall mean the estate or legal representative of a deceased individual, the
beneficiary of a deceased individual’s estate, a trust created by a deceased individual as grantor,
or the beneficiary of a trust created by a deceased individual as grantor.

          “Trading Day,” when used with respect to any securities, shall mean a day on which the NYSE is
open for the transaction of business or, if such securities are not listed or admitted to trading
on the NYSE, a day on which the principal national securities exchange on which such securities are
listed or admitted to trading is open for the transaction of business or, if such securities are
not listed or admitted to trading on any national securities exchange, a Business Day.

ARTICLE II

THE RIGHTS

          2.1 Summary of Rights. As soon as practicable after the Payment Time, the Company
will mail a letter summarizing the terms of the Rights to each holder of record of Common Stock as
of the Payment Time, at such holder’s address as shown by the records of the Company.

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          2.2 Legend on Common Stock Certificates. Certificates for the Common Stock issued on
or after the Payment Time but prior to the Separation Time shall evidence one Right for each share
of Common Stock represented thereby and shall have impressed on, printed on, written on or
otherwise affixed to them substantially the following legend:

Until the Separation Time (as defined in the Rights Agreement referred to below), this
certificate also evidences and entitles the holder hereof to certain Rights as set forth in
a
Rights Agreement, dated as of October 16, 2006 (as such may be amended from time to time,
the “Rights Agreement”), between CA, Inc. (the “Company”) and Mellon Investor Services LLC,
as Rights Agent, the terms of which are hereby incorporated herein by reference and a copy
of which is on file at the principal executive offices of the Company. Under certain
circumstances, as set forth in the Rights Agreement, such Rights may be redeemed, may become
exercisable for securities or assets of the Company or securities of another entity, may be
exchanged for shares of Common Stock or other securities or assets of the Company, may
expire, may become void (if they are “Beneficially Owned” by an “Acquiring Person” or an
“Affiliate” or “Associate” thereof, as such terms are defined in the Rights Agreement, or by
any transferee of any of the foregoing) or may be evidenced by separate certificates and may
no longer be evidenced by this certificate. The Company will mail or arrange for the
mailing of a copy of the Rights Agreement to the holder of this certificate without charge
after the receipt of a written request therefor.

Certificates representing shares of Common Stock that are issued and outstanding at the Payment
Time shall, together with the letter mailed pursuant to Section 2.1, evidence one Right for each
share of Common Stock evidenced thereby notwithstanding the absence of the foregoing legend.

          If the Common Stock issued after the Payment Time but prior to the Separation Time shall be
uncertificated, the registration of such Common Stock on the stock transfer books of the Company
shall evidence one Right for each share of Common Stock represented thereby and the Company shall
mail to every Person that holds such Common Stock a confirmation of the registration of such Common
Stock on the stock transfer books of the Company, which confirmation will have impressed, printed,
written or stamped thereon or otherwise affixed thereto the above legend. The Company shall mail
or arrange for the mailing of a copy of this Agreement to any Person that holds Common Stock, as
evidenced by the registration of the

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Common Stock in the name of such Person on the stock transfer
books of the Company, without charge, after the receipt of a written request therefor.

          2.3 Exercise of Rights; Separation of Rights. (a) Subject to Sections 3.1, 5.1 and
5.10 and subject to adjustment as herein set forth, each Right will entitle the holder thereof,
at or after the Separation Time and prior to the Expiration Time, to purchase, for the
Exercise Price, one one-thousandth of a share of Preferred Stock.

          (b) Until the Separation Time, (i) no Right may be exercised and (ii) each Right will be
evidenced by the certificate for the associated share of Common Stock (or, if the Common Stock
shall be uncertificated, by the registration of the associated Common Stock on the stock transfer
books of the Company and the confirmation thereof provided for in Section 2.2), together, in the
case of certificates issued prior to the Payment Time, with the letter mailed to the record holder
thereof pursuant to Section 2.1, and will be transferable only together with, and will be
transferred by a transfer (whether with or without such letter or confirmation) of, such associated
share.

          (c) Subject to the terms and conditions hereof, at or after the Separation Time and prior to
the Expiration Time, the Rights (i) may be exercised and (ii) may be transferred independent of
shares of Common Stock. Promptly following the Separation Time, the Rights Agent will mail to each
holder of record of Common Stock as of the Separation Time (other than any Person whose Rights have
become null and void pursuant to Section 3.1(b)), at such holder’s address as shown by the records
of the Company (the Company hereby agreeing to furnish copies of such records to the Rights Agent
for this purpose), (x) a certificate (a “Rights

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Certificate”) in substantially the form of Exhibit
A hereto appropriately completed, representing the number of Rights held by such holder at the
Separation Time and having 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 and as do not affect the rights or duties of the Rights Agent, or as may be required
to comply with any law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any national securities exchange or quotation system on which the Rights may from
time to time be listed or traded, or to conform to usage, and (y) a disclosure statement describing
the Rights.

          (d) Subject to the terms and conditions hereof, Rights may be exercised on any Business Day on
or after the Separation Time and prior to the Expiration Time by submitting to the Rights Agent the
Rights Certificate evidencing such Rights with an Election to Exercise (an “Election to Exercise”)
substantially in the form attached to the Rights Certificate duly and properly completed,
accompanied by payment in cash, or by certified or official bank check or money order payable to
the order of the Company, of a sum equal to the Exercise Price multiplied by the number of Rights
being exercised and a sum sufficient to cover any transfer tax or charge which may be payable in respect of
any transfer involved in the transfer or delivery of Rights Certificates or the issuance or
delivery of certificates (or, if uncertificated, the registration on the stock transfer books of
the Company) for shares or depositary receipts (or both) in a name other than that of the holder of
the Rights being exercised.

          (e) Upon receipt of a Rights Certificate, with an Election to Exercise accompanied by payment
as set forth in Section 2.3(d), and subject to the terms and conditions hereof, the Rights Agent
will thereupon promptly (i)(A) requisition from a transfer agent stock

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certificates evidencing such
number of shares or other securities to be purchased or, in the case of uncertificated shares or
other securities, requisition from a transfer agent a notice setting forth such number of shares or
other securities to be purchased for which registration will be made on the stock transfer books of
the Company (the Company hereby irrevocably authorizing its
transfer agents to comply with all such requisitions), and (B) if the Company elects pursuant
to Section 5.5 not to issue certificates (or effect registrations on the stock transfer books of
the Company) representing fractional shares, requisition from the depositary selected by the
Company depositary receipts representing the fractional shares to be purchased or requisition from
the Company the amount of cash to be paid in lieu of fractional shares in accordance with Section
5.5 and (ii) after receipt of such certificates, depositary receipts, notices and/or cash, deliver
the same to or upon the order of the registered holder of such Rights Certificate, registered (in
the case of certificates, depositary receipts or notices) in such name or names as may be
designated by such holder.

          (f) In case the holder of any Rights shall exercise less than all the Rights evidenced by such
holder’s Rights Certificate, a new Rights Certificate evidencing the Rights remaining unexercised
will be issued by the Rights Agent to such holder or to such holder’s duly authorized assigns.

          (g) The Company covenants and agrees that it will (i) take all such action as may be necessary
to ensure that all shares delivered (or evidenced by registration on the stock transfer books of
the Company) upon exercise of Rights shall, at the time of delivery of the certificates (or
registration) for such shares (subject to payment of the Exercise Price), be duly and validly
authorized, executed, issued and delivered (or registered) and fully paid and nonassessable; (ii)
take all such action as may be necessary to comply with any applicable

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requirements of the
Securities Act and the Exchange Act, and the rules and regulations thereunder, and any other
applicable law, rule or regulation, in connection with the issuance of any shares upon exercise of
Rights; and (iii) pay when due and payable any and all federal
and state transfer taxes and charges which
may be payable in respect of the original issuance or delivery of
the Rights Certificates or of any shares issued upon the exercise of Rights, provided,
that the Company shall not be required to pay any transfer tax or charge which may be payable in respect of
any transfer involved in the transfer or delivery of Rights Certificates or the issuance or
delivery of certificates (or the registration) for shares in a name other than that of the holder
of the Rights being transferred or exercised.

          2.4 Adjustments to Exercise Price; Number of Rights. (a) In the event the Company
shall at any time after the Record Time and prior to the Separation Time (i) declare or pay a
dividend on Common Stock payable in Common Stock, (ii) subdivide the outstanding Common Stock or
(iii) combine the outstanding Common Stock into a smaller number of shares of Common Stock, (x) the
Exercise Price in effect after such adjustment will be equal to the Exercise Price in effect
immediately prior to such adjustment divided by the number of shares of Common Stock including any
fractional shares in lieu of which such holder received cash (the “Expansion Factor”) that a holder
of one share of Common Stock immediately prior to such dividend, subdivision or combination would
hold thereafter as a result thereof and (y) each Right held prior to such adjustment will become
that number of Rights equal to the Expansion Factor, and the adjusted number of Rights will be
deemed to be distributed among the shares of Common Stock with respect to which the original Rights
were associated (if they remain outstanding) and the shares issued in respect of such dividend,
subdivision or combination, so that each such share of Common Stock will have exactly one Right
associated with it. Each

-22-

 

adjustment made pursuant to this paragraph shall be made as of the
payment or effective date for the applicable dividend, subdivision or combination.

          In the event the Company shall at any time after the Record Time and prior to the Separation
Time issue any shares of Common Stock otherwise than in a transaction referred to in
the preceding paragraph, each such share of Common Stock so issued shall automatically have
one new Right associated with it, which Right shall be evidenced by the certificate representing
such share (or, if the Common Stock shall be uncertificated, such Right shall be evidenced by the
registration of such Common Stock on the stock transfer books of the Company and the confirmation
thereof provided for in Section 2.2). Rights shall be issued by the Company in respect of shares
of Common Stock that are issued or sold by the Company after the Separation Time only to the extent
provided in Section 5.3.

          (b) In the event the Company shall at any time after the Record Time and prior to the
Separation Time issue or distribute any securities or assets in respect of, in lieu of or in
exchange for Common Stock (other than pursuant to any non-extraordinary periodic cash dividend or a
dividend paid solely in Common Stock) whether by dividend, in a reclassification or
recapitalization (including any such transaction involving a merger, consolidation or statutory
share exchange), or otherwise, the Company shall make such adjustments, if any, in the Exercise
Price, number of Rights and/or securities or other property purchasable upon exercise of Rights as
the Board of Directors of the Company, in its sole discretion, may deem to be appropriate under the
circumstances in order to adequately protect the interests of the holders of Rights generally, and
the Company and the Rights Agent shall amend this Agreement as necessary to provide for such
adjustments.

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          (c) Each adjustment to the Exercise Price made pursuant to this Section 2.4 shall be
calculated to the nearest cent. Whenever an adjustment to the Exercise Price is made pursuant to
this Section 2.4, the Company shall (i) promptly prepare a certificate setting forth such
adjustment and a brief statement of the facts accounting for such adjustment and (ii)
promptly file with the Rights Agent and with each transfer agent for the Common Stock a copy
of such certificate.

          (d) Rights Certificates shall represent the right to purchase the securities purchasable under
the terms of this Agreement, including any adjustment or change in the securities purchasable upon
exercise of the Rights, even though such certificates may continue to express the securities
purchasable at the time of issuance of the initial Rights Certificates.

          2.5 Date on Which Exercise is Effective. Each Person in whose name any certificate
for shares is issued (or registration on the stock transfer books is effected) upon the exercise of
Rights shall for all purposes be deemed to have become the holder of record of the shares
represented thereby on the date upon which the Rights Certificate evidencing such Rights was duly
surrendered and payment of the Exercise Price for such Rights (and any applicable taxes and other
governmental charges payable by the exercising holder hereunder) was made; provided,
however, that if the date of such surrender and payment is a date upon which the stock
transfer books of the Company are closed, such Person shall be deemed to have become the record
holder of such shares on, and such certificate (or registration) shall be dated, the next
succeeding Business Day on which the stock transfer books of the Company are open.

          2.6 Execution, Authentication, Delivery and Dating of Rights Certificates. (a) The
Rights Certificates shall be executed on behalf of the Company by its Chairman of the Board,
President or one of its Vice Presidents, under its corporate seal reproduced thereon

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attested by
its Secretary or one of its Assistant Secretaries. The signature of any of these officers on the
Rights Certificates may be manual or facsimile.

          Rights Certificates bearing the manual or facsimile signatures of individuals who were at any
time the proper officers of the Company shall bind the Company, notwithstanding
that such individuals or any of them have ceased to hold such offices prior to the
countersignature and delivery of such Rights Certificates.

          Promptly after the Separation Time, the Company will notify in writing the Rights Agent of
such Separation Time and will deliver Rights Certificates executed by the Company to the Rights
Agent for counter-signature, and, subject to Section 3.1(b), the Rights Agent shall manually
countersign and deliver such Rights Certificates to the holders of the Rights pursuant to Section
2.3(c). Until the written notice provided for in this Section 2.6 is
received by the Rights Agent, the Rights Agent may presume
conclusively for all purposes that the Separation Time has not
occurred. No Rights Certificate shall be valid for any purpose unless manually countersigned by the
Rights Agent.

          (b) Each Rights Certificate shall be dated the date of countersignature thereof.

          2.7 Registration, Registration of Transfer and Exchange. (a) After the Separation
Time, the Company will cause to be kept a register (the “Rights Register”) in which, subject to
such reasonable regulations as it may prescribe, the Company will provide for the registration and
transfer of Rights. The Rights Agent is hereby appointed “Rights Registrar” for the purpose of
maintaining the Rights Register for the Company and registering Rights and transfers of Rights
after the Separation Time as herein provided. In the event that the Rights Agent shall cease to be
the Rights Registrar, the Rights Agent will have the right to examine the Rights Register at all
reasonable times after the Separation Time.

          After the Separation Time and prior to the Expiration Time, upon surrender for registration of
transfer or exchange of any Rights Certificate, and subject to the provisions of

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Sections 2.7(c)
and (d), the Company will execute, and the Rights Agent will countersign and deliver, in the name
of the holder or the designated transferee or transferees, as required pursuant to the holder’s
instructions, one or more new Rights Certificates evidencing the same aggregate number of Rights as
did the Rights Certificate so surrendered.

          (b) Except as otherwise provided in Section 3.1(b), all Rights issued upon any registration of
transfer or exchange of Rights Certificates shall be the valid obligations of the Company, and such
Rights shall be entitled to the same benefits under this Agreement as the Rights surrendered upon
such registration of transfer or exchange.

          (c) Every Rights Certificate surrendered for registration of transfer or exchange shall be
duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the
Company or the Rights Agent, as the case may be, duly executed by the holder thereof or such
holder’s attorney duly authorized in writing. As a condition to the issuance of any new Rights
Certificate under this Section 2.7, the Company may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation thereto.

          (d) The Company shall not register the transfer or exchange of any Rights which have become
void under Section 3.1(b), been exchanged under Section 3.1(c) or been redeemed under Section 5.1.

          2.8 Mutilated, Destroyed, Lost and Stolen Rights Certificates. (a) If any mutilated
Rights Certificate is surrendered to the Rights Agent prior to the Expiration Time, then, subject
to Sections 3.1(b), 3.1(c) and 5.1, the Company shall execute and the Rights Agent shall
countersign and deliver in exchange therefor a new Rights Certificate evidencing the same number of
Rights as did the Rights Certificate so surrendered.

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          (b) If there shall be delivered to the Company and the Rights Agent prior to the Expiration
Time (i) evidence to their satisfaction of the destruction, loss or theft of any Rights Certificate
and (ii) such security or indemnity as may be required by them to save each of them and any of
their agents harmless, then, subject to Sections 3.1(b), 3.1(c) and 5.1 and in the
absence of written notice to the Company or the Rights Agent that such Rights Certificate has
been acquired by a bona fide purchaser, the Company shall execute and upon its
written request the Rights Agent shall countersign and deliver, in lieu of any such destroyed, lost
or stolen Rights Certificate, a new Rights Certificate evidencing the same number of Rights as did
the Rights Certificate so destroyed, lost or stolen.

          (c) As a condition to the issuance of any new Rights Certificate under this Section 2.8, the
Company may require the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the fees and expenses of
the Rights Agent) connected therewith. The Rights Agent shall have no duty or obligation to take
any action under any Section of this Agreement which requires the payment by a Rights holder of
applicable transfer taxes and/or governmental charges unless and until it is satisfied that all such taxes
and/or governmental charges have been paid.

          (d) Every new Rights Certificate issued pursuant to this Section 2.8 in lieu of any destroyed,
lost or stolen Rights Certificate shall evidence an original additional contractual obligation of
the Company, whether or not the destroyed, lost or stolen Rights Certificate shall be at any time
enforceable by anyone, and, subject to Section 3.1(b), shall be entitled to all the benefits of
this Agreement equally and proportionately with any and all other Rights duly issued hereunder.

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          2.9 Persons Deemed Owners. Prior to due presentment of a Rights Certificate (or,
prior to the Separation Time, the associated Common Stock certificate or notice of transfer, if
uncertificated) for registration of transfer, the Company, the Rights Agent and any agent of the
Company or the Rights Agent may deem and treat the Person in whose name such Rights Certificate
(or, prior to the Separation Time, such Common Stock certificate or Common Stock
registration, if uncertificated) is registered as the absolute owner thereof and of the Rights
evidenced thereby for all purposes whatsoever, including the payment of the Redemption Price, and
neither the Company nor the Rights Agent shall be affected by any notice to the contrary. As used
in this Agreement, unless the context otherwise requires, the term “holder” of any Rights shall
mean the registered holder of such Rights (or, prior to the Separation Time, the associated shares
of Common Stock).

          2.10 Delivery and Cancellation of Certificates. All Rights Certificates surrendered
upon exercise or for registration of transfer or exchange shall, if surrendered to any Person other
than the Rights Agent, be delivered to the Rights Agent and, in any case, shall be promptly
cancelled by the Rights Agent. The Company may at any time deliver to the Rights Agent for
cancellation any Rights Certificates previously countersigned and delivered hereunder which the
Company may have acquired in any manner whatsoever, and all Rights Certificates so delivered shall
be promptly cancelled by the Rights Agent. No Rights Certificates shall be countersigned in lieu
of or in exchange for any Rights Certificates cancelled as provided in this Section 2.10, except as
expressly permitted by this Agreement. The Rights Agent shall destroy all cancelled Rights
Certificates and deliver to the Company a certificate attesting to such destruction.

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          2.11 Agreement of Rights Holders. Every holder of Rights by accepting the Rights,
consents and agrees with the Company and the Rights Agent and with every other holder of Rights
that:

          (a) prior to the Separation Time, each Right will be transferable only together with, and will
be transferred by a transfer of, the associated share of Common Stock;

          (b) after the Separation Time, the Rights Certificates will be transferable only on the Rights
Register as provided herein;

          (c) prior to due presentment of a Rights Certificate (or, prior to the Separation Time, the
associated Common Stock certificate or Common Stock registration, if uncertificated) for
registration of transfer, the Company, the Rights Agent and any agent of the Company or the Rights
Agent may deem and treat the Person in whose name the Rights Certificate (or, prior to the
Separation Time, the associated Common Stock certificate or Common Stock registration, if
uncertificated) is registered as the absolute owner thereof and of the Rights evidenced thereby for
all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any
notice to the contrary;

          (d) Rights Beneficially Owned by certain Persons will, under the circumstances set forth in
Section 3.1(b), become void; and

          (e) this Agreement may be supplemented or amended from time to time pursuant to Section 2.4(b)
or 5.4.

ARTICLE III

ADJUSTMENTS TO THE RIGHTS IN

THE EVENT OF CERTAIN TRANSACTIONS

          3.1 Flip-in. (a) In the event that prior to the Expiration Time a Flip-in Date shall
occur, except as provided in this Section 3.1, each Right shall constitute the right to

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purchase
from the Company, upon exercise thereof in accordance with the terms hereof (but subject to Section
5.10), that number of shares of Common Stock having an aggregate Market Price on the Stock
Acquisition Date that gave rise to the Flip-in Date equal to twice the Exercise Price for an amount
in cash equal to the Exercise Price (such right to be appropriately adjusted in order to protect
the interests of the holders of Rights generally in the event that on or after such
Stock Acquisition Date any of the events described in Section 2.4(a) or (b), or any analogous
event, shall have occurred with respect to the Common Stock).

          (b) Notwithstanding the foregoing, any Rights that are or were Beneficially Owned on or after
the Stock Acquisition Date by an Acquiring Person or an Affiliate or Associate thereof, or by any
transferee, direct or indirect, of any of the foregoing shall become void and any holder of such
Rights (including transferees) shall thereafter have no right to exercise or transfer such Rights
under any provision of this Agreement. If any Rights Certificate is presented for assignment or
exercise and the Person presenting the same will not complete the certification set forth at the
end of the form of assignment or notice of election to exercise and provide such additional
evidence of the identity of the Beneficial Owner and its Affiliates and Associates (or former
Beneficial Owners and their Affiliates and Associates) as the Company shall reasonably request,
then the Company shall be entitled conclusively to deem the Beneficial Owner thereof to be an
Acquiring Person or an Affiliate or Associate thereof or a transferee of any of the foregoing and
accordingly will deem the Rights evidenced thereby to be void and not transferable or exercisable.

          (c) The Board of Directors of the Company may, at its option, at any time after a Flip-in Date
and prior to the time that an Acquiring Person becomes the Beneficial Owner of more than 50% of the
outstanding shares of Common Stock, elect to exchange all (but not less

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than all) the then
outstanding Rights (which shall not include Rights that have become void pursuant to the provisions
of Section 3.1(b)) for shares of Common Stock at an exchange ratio of one share of Common Stock per
Right, appropriately adjusted in order to protect the interests of holders of Rights generally in
the event that after the Separation Time any of the events described in Section 2.4(a) or (b), or
any analogous event, shall have occurred with respect to the
Common Stock (such exchange ratio, as adjusted from time to time, being hereinafter referred
to as the “Exchange Ratio”).

          Immediately upon the action of the Board of Directors of the Company electing to exchange the
Rights, without any further action and without any notice, the right to exercise the Rights will
terminate and each Right (other than Rights that have become void pursuant to Section 3.1(b)),
whether or not previously exercised, will thereafter represent only the right to receive a number
of shares of Common Stock equal to the Exchange Ratio. Promptly after the action of the Board of
Directors electing to exchange the Rights, the Company shall give written notice thereof
(specifying the steps to be taken to receive shares of Common Stock in exchange for Rights) to the
Rights Agent and the holders of the Rights (other than Rights that have become void pursuant to
Section 3.1(b)) outstanding immediately prior thereto by mailing such notice in accordance with
Section 5.9.

          Each Person in whose name any certificate for shares is issued (or for whom any registration
on the stock transfer books of the Company is made) upon the exchange of Rights pursuant to this
Section 3.1(c) or Section 3.1(d) shall for all purposes be deemed to have become the holder of
record of the shares represented thereby on, and such certificate (or registration on the stock
transfer books of the Company) shall be dated (or registered as of), the date upon which the Rights
Certificate evidencing such Rights was duly surrendered and payment of any

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applicable taxes and
other governmental charges payable by the holder was made; provided, however, that
if the date of such surrender and payment is a date upon which the stock transfer books of the
Company are closed, such Person shall be deemed to have become the record holder of such shares on,
and such certificate (or registration on the stock transfer books of the
Company) shall be dated (or registered as of), the next succeeding Business Day on which the
stock transfer books of the Company are open.

          (d) Whenever the Company shall become obligated under Section 3.1(a) or (c) to issue shares
of Common Stock upon exercise of or in exchange for Rights, the Company, at its option, may
substitute therefor shares of Preferred Stock, at a ratio of one one-thousandth of a share of
Preferred Stock for each share of Common Stock so issuable.

          (e) In the event that there shall not be sufficient treasury shares or authorized but
unissued shares of Common Stock or Preferred Stock of the Company to permit the exercise or
exchange in full of the Rights in accordance with Section 3.1(a) or if the Company so elects to
make the exchange referred to in Section 3.1(c), the Company shall either (i) call a meeting of
stockholders seeking approval to cause sufficient additional shares to be authorized
(provided that if such approval is not obtained the Company will take the action specified
in clause (ii) of this sentence) or (ii) take such action as shall be necessary to ensure and
provide, as and when and to the maximum extent permitted by applicable law and any agreements or
instruments in effect on the Stock Acquisition Date (and remaining in effect) to which it is a
party, that each Right shall thereafter constitute the right to receive, (x) at the Company’s
option, either in return for the Exercise Price, debt or equity securities or other assets (or a
combination thereof) having a fair value equal to twice the Exercise Price, or without payment of
consideration (except as otherwise required by applicable law), debt or equity securities or other
assets (or a combination thereof) having a fair value equal to the Exercise Price, or (y) if the
Board of Directors of the Company elects to exchange the Rights in accordance with Section 3.1(c),
debt or equity securities or other assets (or a combination

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thereof) having a fair value equal to
the product of the Market Price of a share of Common Stock on the Flip-in Date times the Exchange
Ratio in
effect on the Flip-in Date, where in any case set forth in (x) or (y) above the fair value of
such debt or equity securities or other assets (or a combination
thereof) shall be as determined in
good faith by the Board of Directors of the Company, after consultation with a nationally
recognized investment banking firm.

          3.2 Flip-over. (a) Prior to the Expiration Time, the Company shall not enter into
any agreement with respect to, consummate or permit to occur any Flip-over Transaction or Event
unless and until it shall have entered into a supplemental agreement with the Flip-over Entity, for
the benefit of the holders of the Rights (the terms of which shall be reflected in an amendment to
this Agreement entered into with the Rights Agent), providing that, upon consummation or occurrence
of the Flip-over Transaction or Event (1) each Right shall thereafter constitute the right to
purchase from the Flip-over Entity, upon exercise thereof in accordance with the terms hereof, that
number of shares of Flip-over Stock of the Flip-over Entity having an aggregate Market Price on the
date of consummation or occurrence of such Flip-over Transaction or Event equal to twice the
Exercise Price for an amount in cash equal to the Exercise Price (such right to be appropriately
adjusted in order to protect the interests of the holders of Rights generally in the event that
after such date of consummation or occurrence any of the events described in Section 2.4(a) or (b),
or any analogous event, shall have occurred with respect to the Flip-over Stock) and (2) the
Flip-over Entity shall thereafter be liable for, and shall

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assume, by virtue of such Flip-over
Transaction or Event and such supplemental agreement, all the obligations and duties of the Company
pursuant to this Agreement.

          (b) Prior to the Expiration Time, unless the Rights will be redeemed pursuant to Section 5.1
pursuant to an agreement entered into by the Company prior to a Flip-in Date, the Company shall not
enter into any agreement with respect to, consummate or permit to occur any
Flip-over Transaction or Event if (i) at the time thereof there are any rights, warrants or
securities outstanding or any other arrangements, agreements or instruments that would eliminate or
otherwise diminish in any material respect the benefits intended to be afforded by this Rights
Agreement to the holders of Rights upon consummation of such transaction, (ii) prior to,
simultaneously with or immediately after such Flip-over Transaction or Event, the stockholders of
the Person who constitutes, or would constitute, the Flip-over Entity shall have received a
distribution of Rights previously owned by such Person or any of its Affiliates or Associates, or
(iii) the form or nature of organization of the Flip-over Entity would preclude or limit the
exercisability of the Rights.

          (c) The provisions of this Section 3.2 shall apply to successive Flip-over Transactions or
Events.

ARTICLE IV

THE RIGHTS AGENT

          4.1 General. (a) The Company hereby appoints the Rights Agent to act as agent for
the Company in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts
such appointment. 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

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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, damage, judgment, fine, penalty, claim, demand, settlement, cost or expense (including,
without limitation, the reasonable fees and expenses of legal counsel), incurred without gross
negligence, bad faith or willful misconduct on the part of the Rights
Agent (which gross negligence, bad faith or willful misconduct must be determined by a
final, non-appealable order judgment, decree or ruling of a court of competent jurisdiction), for
anything done or omitted to be done by the Rights Agent in connection with the acceptance and
administration of this Agreement, including the costs and expenses of defending against any claim
of liability.

          (b) The Rights Agent shall be authorized and protected and shall incur no liability for or in
respect of any action taken, suffered or omitted by it in connection with its administration of
this Agreement or the exercise of its duties hereunder in reliance upon any certificate for
securities (or registration on the stock transfer books of the Company) purchasable upon exercise
of Rights, Rights Certificate, certificate 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.
The Rights Agent shall not be deemed to have knowledge of any event of which it was supposed to
receive notice thereof hereunder, and the Rights Agent shall incur no liability for failing to take
any action in connection therewith, unless and until it has received such notice.

          4.2 Merger, Consolidation or Change of Name of Rights Agent. (a) Any Person into
which the Rights Agent or any successor Rights Agent may be merged or with which

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it may be
consolidated, or any Person resulting from any merger or consolidation to which the Rights Agent or
any successor Rights Agent is a party, or any Person succeeding to the shareholder services
business of the Rights Agent or any successor Rights Agent, will 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 Person would be
eligible for appointment as a successor Rights Agent under the provisions of Section 4.4. In
case at the time such successor Rights Agent succeeds to the agency created by this Agreement any
of the Rights Certificates have been countersigned but not delivered, any such successor Rights
Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Rights
Certificates so countersigned; and in case at that time any of the Rights Certificates have not
been countersigned, any successor Rights Agent may countersign such Rights Certificates either in
the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all
such cases such Rights Certificates will have the full force provided in the Rights Certificates
and in this Agreement.

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

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     4.3 Duties of Rights Agent. The Rights Agent undertakes the duties and obligations
imposed by this Agreement upon the following terms and conditions, by all of which the Company and
the holders of Rights 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
or an employee of the Rights Agent), and the advice or opinion of such counsel will be full and
complete authorization and protection to the Rights Agent as to any action taken, suffered or
omitted by it in good faith in accordance with such advice or opinion.

     (b) Whenever in the performance of its duties under this Agreement the Rights Agent deems it
necessary or desirable that any fact or matter be proved or established by the Company prior to
taking, suffering or omitting any action hereunder, such fact or matter (unless other evidence in
respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by a person believed by the Rights Agent to be the Chairman of
the Board, the President or any Vice President and by the Secretary or any Assistant Secretary or
the Treasurer or Assistant Treasurer of the Company and delivered to the Rights Agent; and such
certificate will be full and complete authorization and protection to the Rights Agent and the
Rights Agent shall incur no liability for any action taken, suffered or omitted in good faith by
it under the provisions of this Agreement in reliance upon such certificate.

     (c) The Rights Agent will be liable hereunder only for its own gross negligence, bad faith or
willful misconduct (which gross negligence, bad faith or willful misconduct must be determined by a
final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction).
Anything to the contrary notwithstanding, in no event shall the Rights Agent be liable for special,
punitive, indirect, consequential or incidental loss or damage

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of any kind whatsoever (including, but not limited to, lost profits), even if the Rights Agent
has been advised of the likelihood of such loss or damage. Any and all liability of the Rights
Agent under this Agreement will be limited to the amount of annual fees paid by the Company to the
Rights Agent pursuant to this Agreement.

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

     (e) The Rights Agent will not be under any responsibility in respect of the validity of this
Agreement or the execution and delivery hereof (except the due authorization, execution and
delivery hereof by the Rights Agent) or in respect of the validity or execution of any certificate,
if any, for securities purchasable upon exercise of Rights or Rights Certificate (except its
countersignature thereof); nor will it be responsible for any breach by the Company of any covenant
or condition contained in this Agreement or in any Rights Certificate; nor will it be responsible
for any change in the exercisability of the Rights (including the Rights becoming void pursuant to
Section 3.1(b)) or any adjustment required under the provisions of Section 2.4, 3.1 or 3.2 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 after receipt of the certificate contemplated by Section 2.4 describing any such
adjustment); nor will it by any act hereunder be deemed to make any representation or warranty as
to the authorization or reservation of any securities purchasable upon exercise of Rights or any
Rights Certificate or as to whether any securities purchasable upon exercise of

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Rights will, when issued, be duly and validly authorized, executed, issued and delivered and
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 advice or written
instructions with respect to the performance of its duties hereunder from any person believed by
the Rights Agent to be the Chairman of the Board, the President or any Vice President or the
Secretary or any Assistant Secretary or the Treasurer or any Assistant Treasurer of the Company,
and to apply to such persons for advice or instructions in connection with its duties, and such
instructions shall be full authorization and protection to the Rights Agent and the Rights Agent
shall not be liable for any action taken, suffered or omitted by it in good faith in accordance
with instructions of any such person.

     (h) The
Rights Agent and any stockholder, Affiliate, director, officer or employee of the
Rights Agent (in each case, other than an Acquiring Person) may buy, sell or deal in Common Stock, 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 Person.

     (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 (through directors, officers and employees) or by or
through its attorneys or agents, and the Rights Agent will not be answerable

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or
accountable for any act, default, neglect or misconduct of any such
attorneys or agents or for any loss to the Company or any other Person resulting from any such act,
default, neglect or misconduct, absent gross negligence, bad faith or willful misconduct in the
selection and continued employment thereof (which gross negligence, bad faith or willful misconduct
must be determined by a final, non-appealable order, judgment, decree or ruling of a court of
competent jurisdiction).

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

     (k) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or
transfer, the certificate attached to the form of assignment or form of election to purchase, as
the case may be, has not been completed, the Rights Agent shall not take any further action with
respect to such requested exercise or transfer without first consulting with the Company.

     4.4 Change of Rights Agent. The Rights Agent may resign and be discharged from its
duties under this Agreement upon 30 days’ notice (or such lesser notice as is acceptable to the
Company) in writing mailed to the Company and to each transfer agent of Common Stock by registered
or certified mail, and to the holders of the Rights in accordance with Section 5.9. The Company
may remove the Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent and to each
transfer agent of the Common Stock by registered or certified mail, and to the holders of the
Rights in accordance with Section 5.9. If the Rights Agent should resign or be removed or
otherwise become incapable of acting, the Company will appoint a successor to

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the Rights Agent. If the Company fails to make such appointment within a period of 30 days
after such removal or after it has been notified in writing of such resignation or incapacity by
the resigning or incapacitated Rights Agent or by the holder of any Rights (which holder shall,
with such notice, submit such holder’s Rights Certificate for inspection by the Company), then the
holder of any Rights may apply to any court of competent jurisdiction for the appointment of a new
Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court,
shall be a Person organized and doing business under the laws of the United States or any state of
the United States, in good standing, which is authorized under such laws to exercise the powers of
the Rights Agent contemplated by this Agreement and is subject to supervision or examination by
federal or state authority and which has at the time of its appointment as Rights Agent a combined
capital and surplus of at least $50,000,000. After appointment, the successor Rights Agent will 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 will file notice thereof in writing
with the predecessor Rights Agent and each transfer agent of the Common Stock, and mail a notice
thereof in writing to the holders of the Rights. Failure to give any notice provided for in this
Section 4.4, 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.

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ARTICLE V

MISCELLANEOUS

     5.1 Redemption. (a) The Board of Directors of the Company may, at its option, at any
time prior to the Flip-in Date, elect to redeem all (but not less than all) of the then outstanding
Rights at the Redemption Price and the Company, at its option, may pay the Redemption Price either
in cash or shares of Common Stock or other securities of the Company deemed by the Board of
Directors, in the exercise of its sole discretion, to be at least equivalent in value to the
Redemption Price.

     (b) A committee of independent directors of the Company will evaluate the Agreement annually
to determine whether it continues to be in the best interests of the Company’s stockholders or,
rather, if the Rights should be redeemed.

     (c) In the event the Company receives a Qualifying Offer and the Board of Directors has not
redeemed the outstanding Rights or exempted such offer from the terms of the Agreement or called a
special meeting of stockholders by the end of the 90 Business Days following the commencement (or,
if later, the first existence) of a Qualifying Offer, for the purpose of voting on whether or not
to exempt such Qualifying Offer from the terms of this Agreement, holders of record (or their duly
authorized proxy) of at least 10% of the shares of Common Stock then outstanding may submit to the
Board of Directors, not earlier than 90 Business Days nor later than 120 Business Days following
the commencement (or, if later, the first existence) of such Qualifying Offer, a written demand
complying with the terms of this Section 5.1(c) (the “Special Meeting Demand”) directing the Board
of Directors of the Company to submit to a vote of stockholders at a special meeting of the
stockholders of the Company (a “Special Meeting”) a resolution exempting such Qualifying Offer from
the provisions of this

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Agreement (the “Qualifying Offer Resolution”). For purposes of a Special Meeting Demand, the
record date for determining holders of record eligible to make a Special Meeting Demand shall be
the 90th Business Day following commencement (or, if later, the first existence) of a
Qualifying Offer. The Board of Directors of the Company shall take such actions as are necessary
or desirable to cause the Qualifying Offer Resolution to be so submitted to a vote of stockholders
at a Special Meeting to be convened within 90 Business Days following the Special Meeting Demand;
provided, however, that if the Company at any time during the Special Meeting
Period and prior to a vote on the Qualifying Offer Resolution enters into a Definitive Acquisition
Agreement, the Special Meeting Period may be extended (and any special meeting called in connection
therewith may be cancelled) if the Qualifying Offer Resolution will be separately submitted to a
vote at the same meeting as the Definitive Acquisition Agreement (the “Special Meeting Period”). A
Special Meeting Demand must be delivered to the Secretary of the Company at the principal executive
offices of the Company and must set forth as to the stockholders of record making the request (x)
the names and addresses of such stockholders, as they appear on the Company’s books and records,
(y) the class and number of shares of Common Stock which are owned of record by each of such
stockholders, and (z) in the case of Common Stock that is owned beneficially by another Person, an
executed certification by the holder of record that such holder has executed such Special Meeting
Demand only after obtaining instructions to do so from such beneficial owner and attaching evidence
thereof. Subject to the requirements of applicable law, the Board of Directors of the Company may
take a position in favor of or opposed to the adoption of the Qualifying Offer Resolution, or no
position with respect to the Qualifying Offer Resolution, as it determines to be appropriate in the
exercise of its duties. In the event that no Person has become an Acquiring Person prior to the
redemption

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date referred to in this Section 5.1(c), and the Qualifying Offer continues to be a Qualifying
Offer and either (i) the Special Meeting is not convened on or prior to the last day of the Special
Meeting Period (the “Outside Meeting Date”), or (ii) if, at the Special Meeting at which a quorum
is present, a majority of the shares of Common Stock present or represented by proxy at the Special
Meeting and entitled to vote thereon as of the record date for the Special Meeting selected by the
Board of Directors of the Company shall vote in favor of the Qualifying Offer Resolution, then the
Qualifying Offer shall be deemed exempt from the application of this Agreement to such Qualifying
Offer so long as it remains a Qualifying Offer, such exemption to be effective on the Close of
Business on the tenth Business Day after (i) the Outside Meeting Date or (ii) the date on which the
results of the vote on the Qualifying Offer Resolution at the Special Meeting are certified as
official by the appointed inspectors of election for the Special Meeting, as the case may be (the
“Exemption Date”). Notwithstanding anything herein to the contrary, no action or vote, including
action by written consent, by stockholders not in compliance with the provisions of this Section
5.1(c) shall serve to exempt any offer from the terms of this Agreement.

     (d) Immediately upon the action of the Board of Directors of the Company electing to redeem
the Rights pursuant to Section 5.1(a) (or, if the resolution of the Board of Directors electing to
redeem the Rights states that the redemption will not be effective until the occurrence of a
specified future time or event, upon the occurrence of such future time or event), without any
further action and without any notice, the right to exercise the Rights will terminate and each
Right, whether or not previously exercised, will thereafter represent only the right to receive the
Redemption Price in cash or securities, as determined by the Board of Directors. Promptly after
the Rights are redeemed, the Company shall give notice of such redemption to the

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Rights Agent and the holders of the then outstanding Rights by mailing such notice in
accordance with Section 5.9.

     (e) Immediately upon the Close of Business on the Exemption Date, without any further action
and without any notice, the right to exercise the Rights with respect to the Qualifying Offer will
terminate.

     5.2 Expiration. The Rights and this Agreement shall expire at the Expiration Time and
no Person shall have any rights pursuant to this Agreement or any Right after the Expiration Time,
except, if the Rights are exchanged or redeemed, as provided in Section 3.1 or 5.1, respectively.

     5.3 Issuance of New Rights Certificates. Notwithstanding any of the provisions of
this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Rights
Certificates evidencing Rights in such form as may be approved by its Board of Directors to reflect
any adjustment or change in the number or kind or class of shares of stock purchasable upon
exercise of Rights made in accordance with the provisions of this Agreement. In addition, in
connection with the issuance or sale of shares of Common Stock by the Company following the
Separation Time and prior to the Expiration Time pursuant to the terms of securities convertible or
redeemable into shares of Common Stock (other than any securities issued or issuable in connection
with the exercise or exchange of Rights) or to options, in each case issued or granted prior to,
and outstanding at, the Separation Time, the Company shall issue to the holders of such shares of
Common Stock, Rights Certificates representing the appropriate number of Rights in connection with
the issuance or sale of such shares of Common Stock; provided, however, in each
case, (i) no such Rights Certificate shall be issued, if, and to the extent that, the Company shall
be advised by counsel that such issuance would create a

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significant risk of material adverse tax consequences to the Company or to the Person to whom
such Rights Certificates would be issued, (ii) no such Rights Certificates shall be issued if, and
to the extent that, appropriate adjustment shall have otherwise been made in lieu of the issuance
thereof, and (iii) the Company shall have no obligation to distribute Rights Certificates to any
Acquiring Person or Affiliate or Associate of an Acquiring Person or any transferee of any of the
foregoing.

     5.4 Supplements and Amendments. The Company and the Rights Agent may from time to
time supplement or amend this Agreement without the approval of any holders of Rights (i) prior to
the Flip-in Date, in any respect, except for any extension of the Expiration Time, which can only
be done with approval of a majority of the shares of Common Stock entitled to vote thereon and
present or represented by proxy at a meeting at which a quorum is present, and (ii) on or after the
Flip-in Date, to make any changes that the Company may deem necessary or desirable and which shall
not materially adversely affect the interests of the holders of Rights generally or in order to
cure any ambiguity or to correct or supplement any provision contained herein which may be
inconsistent with any other provisions herein or otherwise defective. The Rights Agent will duly
execute and deliver any supplement or amendment hereto requested by the Company in writing which
satisfies the terms of the preceding sentence. Any supplement or amendment shall become effective
immediately upon execution by the Company, whether or not also executed by the Rights Agent;
provided, that such supplement or amendment does not affect the rights, duties or
obligations of the Rights Agent.

     5.5 Fractional Shares. If the Company elects not to issue certificates representing
(or register on the stock transfer books of the Company) fractional shares upon exercise,
redemption or exchange of Rights, the Company shall, in lieu thereof, in the sole

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discretion of the Board of Directors, either (a) evidence such fractional shares by depositary
receipts issued pursuant to an appropriate agreement between the Company and a depositary selected
by it, providing that each holder of a depositary receipt shall have all of the rights, privileges
and preferences to which such holder would be entitled as a beneficial owner of such fractional
share, or (b) pay to the registered holder of such Rights the appropriate fraction of the Market
Price per share in cash.

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

     5.6 Rights of Action. Subject to the terms of this Agreement (including Sections
3.1(b) and 5.14), rights of action in respect of this Agreement, other than rights of action vested
solely in the Rights Agent, are vested in the respective holders of the Rights; and any holder of
any Rights, without the consent of the Rights Agent or of the holder of any other Rights, may, on
such holder’s own behalf and for such holder’s own benefit and the benefit of other holders of
Rights, enforce, and may institute and maintain any suit, action or proceeding against the Company
to enforce, or otherwise act in respect of, such holder’s right to exercise

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such holder’s Rights in the manner provided in such holder’s Rights Certificate and in this
Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it
is specifically acknowledged that the holders of Rights would not have an adequate remedy at law
for any breach of this Agreement and will be entitled to specific performance of the obligations
under, and injunctive relief against actual or threatened violations of, the obligations of any
Person subject to this Agreement.

     5.7 Holder of Rights Not Deemed a Stockholder. No holder, as such, of any Rights
shall be entitled to vote, receive dividends or be deemed for any purpose the holder of shares or
any other securities which may at any time be issuable on the exercise of such Rights, nor shall
anything contained herein or in any Rights Certificate be construed to confer upon the holder of
any Rights, 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 5.8), or to receive dividends or subscription
rights, or otherwise, until such Rights shall have been exercised or exchanged in accordance with
the provisions hereof.

     5.8 Notice of Proposed Actions. In case the Company shall propose at or after the
Separation Time and prior to the Expiration Time (i) to effect or permit a Flip-over Transaction or
Event or (ii) to effect the liquidation, dissolution or winding up of the Company, then, in each
such case, the Company shall give to each holder of a Right, in accordance with Section 5.9, and to
the Rights Agent a written notice of such proposed action, which shall specify the date on which
such Flip-over Transaction or Event, liquidation, dissolution, or winding up is

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to take place, and such notice shall be so given at least 20 Business Days prior to the date
of the taking of such proposed action.

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

CA, Inc.

One CA Plaza

Islandia, NY 11749

Attention: Secretary

Facsimile: (631) 342-6828

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

Mellon Investor Services LLC

480 Washington Boulevard, 29th Floor

Jersey City, NJ 07310

Attention: Deborah Bass

Facsimile: (201) 680-4606

Notices or demands authorized or required by this Agreement to be given or made by the Company or
the Rights Agent to or on the holder of any Rights shall be sufficiently given or made if delivered
or sent by first-class mail, postage prepaid, addressed to such holder at the address of such
holder as it appears upon the registry books of the Rights Agent or, prior to the Separation Time,
on the registry books of the transfer agent for the Common Stock. Any notice

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which is mailed in the manner herein provided shall be deemed given, whether or not the holder
receives the notice.

     5.10 Suspension of Exercisability. Notwithstanding any provisions in this Agreement
to the contrary, to the extent that the Company determines in good faith that some action will or
need be taken pursuant to Section 3.1 or to comply with federal or state securities laws, the
Company may suspend the exercisability of the Rights for a reasonable period in order to take such
action or comply with such laws. In the event of any such suspension, the Company shall issue as
promptly as practicable a public announcement (with prompt written notice to the Rights Agent)
stating that the exercisability or exchangeability of the Rights has been temporarily suspended.
Notice thereof pursuant to Section 5.9 shall not be required.

     Failure to give notice pursuant to the provisions of this Agreement shall not affect the
validity of any action taken hereunder.

     5.11 Costs of Enforcement. The Company agrees that if the Company or any other Person
the securities of which are purchasable upon exercise of Rights fails to fulfill any of its
obligations pursuant to this Agreement, then the Company or such Person will reimburse the holder
of any Rights for the costs and expenses (including legal fees) incurred by such holder in actions
to enforce such holder’s rights pursuant to any Rights or this Agreement.

     5.12 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.

     5.13 Benefits of this Agreement. Nothing in this Agreement shall be construed to give
to any Person other than the Company, the Rights Agent and the holders of the Rights any legal or
equitable right, remedy or claim under this Agreement and this Agreement shall be

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for the sole and exclusive benefit of the Company, the Rights Agent and the holders of the
Rights.

     5.14 Determination and Actions by the Board of Directors, etc. The Board of Directors
(or, if required hereby, a majority of the independent directors) of the Company shall have the
exclusive power and authority to administer this Agreement and to exercise all rights and powers
specifically granted to the Board or to the Company, or as may be necessary or advisable in the
administration of this Agreement, including, without limitation, the right and power to (i)
interpret the provisions of this Agreement and (ii) make all determinations and calculations deemed
necessary or advisable for the administration of this Agreement. All such actions,
interpretations, calculations and determinations done or made by the Board, shall be final,
conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other
parties. The Rights Agent shall always be entitled to assume that the Board of Directors of the
Company acted in good faith and the Rights Agent shall be fully protected and shall incur no
liability in reliance thereon.

     5.15 Fiduciary Responsibilities of the Board of Directors. Nothing contained in this
Agreement shall, or shall be deemed or construed to, be in derogation of the obligations of the
Board of Directors of the Company to exercise its fiduciary duties. Without limiting the
foregoing, nothing contained herein shall be deemed or construed to suggest or imply that the Board
of Directors of the Company shall not be entitled to reject any offer to acquire the Company or to
recommend that stockholders of the Company reject any offer, or to take any other action, with
respect to any offer or any proposal to acquire the Company that the Board of Directors believes is
necessary or appropriate in the exercise of such fiduciary duties.

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     5.16 Descriptive Headings; Section References. Descriptive headings appear herein for
convenience only and shall not control or affect the meaning or construction of any of the
provisions hereof. Where a reference in this Agreement is made to a Section, such reference shall
be to a Section of this Agreement unless otherwise indicated.

     5.17 GOVERNING LAW. THIS AGREEMENT AND EACH RIGHT ISSUED HEREUNDER SHALL BE DEEMED TO
BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF DELAWARE AND FOR ALL PURPOSES SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SUCH STATE APPLICABLE TO CONTRACTS TO BE MADE AND
PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED, HOWEVER, THAT ALL PROVISIONS REGARDING THE RIGHTS,
DUTIES, LIABILITIES AND OBLIGATIONS OF THE RIGHTS AGENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE.

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

     5.19 Severability. If any term or provision hereof or the application thereof to any
circumstance shall, in any jurisdiction and to any extent, be invalid or unenforceable, such term
or provision shall be ineffective as to such jurisdiction to the extent of such invalidity or
unenforceability without invalidating or rendering unenforceable the remaining terms and

-52-

 

provisions hereof or the application of such term or provision to circumstances other than
those as to which it is held invalid or unenforceable.

-53-

 

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

	 	 	 	 	 
	 	CA, INC.

 	 
	 	By:  	/s/  Kenneth V. Handal	 
	 	 	Name: 	Kenneth V. Handal	 
	 	 	Title:  	Executive Vice President, Governance

Co-General Counsel and Corporate Secretary	 
	 

	 	 	 	 	 
	 	MELLON INVESTOR SERVICES LLC

 	 
	 	By:  	/s/  Deborah Bass	 
	 	 	Name:  	Deborah Bass	 
	 	 	Title:  	AVP	 
	 

-54-

 

EXHIBIT A

[FORM OF RIGHTS CERTIFICATE]

			
	Certificate No. W-
	 	                     Rights

THE RIGHTS ARE SUBJECT TO REDEMPTION OR MANDATORY EXCHANGE, AT THE
OPTION OF THE COMPANY, ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT. RIGHTS BENEFICIALLY OWNED BY “ACQUIRING PERSONS” OR
“AFFILIATES” OR “ASSOCIATES” THEREOF (AS SUCH TERMS ARE DEFINED IN
THE RIGHTS AGREEMENT) OR TRANSFEREES OF ANY OF THE FOREGOING WILL
BE VOID.

RIGHTS CERTIFICATE

CA, INC.

     This certifies that                     , or registered assigns, is the registered holder of
the number of Rights set forth above, each of which entitles the registered holder thereof, subject
to the terms, provisions and conditions of the Stockholder Protection Rights Agreement, dated as of
October 16, 2006 (as amended from time to time, the “Rights Agreement”), between CA, Inc., a
Delaware corporation (the “Company”), and Mellon Investor Services LLC, a New Jersey limited
liability company, as Rights Agent (the “Rights Agent”, which term shall include any successor
Rights Agent under the Rights Agreement), to purchase from the Company at any time after the
Separation Time (as such term is defined in the Rights Agreement) and prior to

A-1

 

the Close of
Business (as such term is defined in the Rights Agreement) on November 30, 2009, one one-thousandth
of a fully paid share of Preferred Stock (as defined in, and
subject to adjustment as provided in, the Rights Agreement), at the Exercise Price referred to
below, upon presentation and surrender of this Rights Certificate with the Form of Election to
Exercise duly executed at the principal office of the Rights Agent in Jersey City. The Exercise
Price shall initially be 100.00 per Right and shall be subject to adjustment in certain events as
provided in the Rights Agreement.

     In certain circumstances described in the Rights Agreement, the Rights evidenced hereby may
entitle the registered holder thereof to purchase securities of an entity other than the Company or
securities of the Company other than Preferred Stock or assets of the Company, all as provided in
the Rights Agreement.

     This Rights Certificate is subject to all of the terms, provisions and conditions of the
Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by
reference and made a part hereof and to which Rights Agreement reference is hereby made for a full
description of the rights, limitations of rights, obligations, duties and immunities hereunder of
the Rights Agent, the Company and the holders of the Rights Certificates. Copies of the Rights
Agreement are on file at the principal office of the Company and are available without cost upon
written request.

     This Rights Certificate, with or without other Rights Certificates, upon surrender at the
office of the Rights Agent designated for such purpose, may be exchanged for another Rights
Certificate or Rights Certificates of like tenor evidencing

A-2

 

an aggregate number of Rights equal to
the aggregate number of Rights evidenced by the Rights Certificate or Rights Certificates so
surrendered. If this Rights Certificate shall be exercised in part, the registered holder shall be
entitled to receive, upon surrender hereof,
another Rights Certificate or Rights Certificates for the number of whole Rights not
exercised.

     Subject to the provisions of the Rights Agreement, each Right evidenced by this Certificate
may be (a) redeemed by the Company under certain circumstances, at its option, at a redemption
price of $0.001 per Right or (b) exchanged by the Company under certain circumstances, at its
option, for one share of Common Stock or one one-thousandth of a share of Preferred Stock per Right
(or, in certain cases, other securities or assets of the Company), subject in each case to
adjustment in certain events as provided in the Rights Agreement.

     No holder of this Rights Certificate, as such, shall be entitled to vote or receive dividends
or be deemed for any purpose the holder of any securities 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

A-3

 

subscription rights, or otherwise, until the Rights evidenced by this
Rights Certificate shall have been exercised or exchanged as provided in the Rights Agreement.

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

A-4

 

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

Date:                                         

	 	 	 	 	 	 	 
	ATTEST:	 	CA, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

Secretary

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	Countersigned:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	MELLON INVESTOR SERVICES LLC
	 	 	 	 	 	 

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signature
	 	 

A-5

 

[Form of Reverse Side of Rights Certificate]

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder desires to transfer this Rights Certificate.)

FOR VALUE RECEIVED                                                            hereby

	 	 	 
	sells, assigns and transfers unto
	 	 
	 

	 	 
	 

	 	(Please print name

 

and address of transferee)

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

Dated:                                         ,                    

	 	 	 	 
	Signature Guaranteed:
	 	 	 
	 

	 	 
	 

	 	 	          Signature
	 
	 	 	 
	 

	 	 	(Signature must correspond to name
	 

	 	 	as written upon the face of this
	 

	 	 	Rights Certificate in every particular,
	 

	 	 	without alteration or enlargement or
	 

	 	 	any change whatsoever)

     Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
Medallion program), pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended.

	 	 	 
	 

	 	 	 
 (To
be completed if true)

A-6

 

     The undersigned hereby represents, for the benefit of all holders of Rights and shares of
Common Stock, that the Rights evidenced by this Rights Certificate are not, and, to the knowledge
of the undersigned, have never been, Beneficially Owned by an Acquiring Person or an Affiliate or Associate
thereof (as each such term is defined in the
Rights Agreement).

	 	 	 
	 

	 	 
	 

	 	Signature
	 
	 	 
	 

	 	 

NOTICE

     In the event the certification set forth above is not completed in connection with a purported
assignment, the Company will deem the Beneficial Owner of the Rights evidenced by the enclosed
Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as each such
term is defined in the Rights Agreement) or a transferee of any of the foregoing and accordingly
will deem the Rights evidenced by such Rights Certificate to be void and not transferable or
exercisable.

A-7

 

[To be attached to each Rights Certificate]

FORM OF ELECTION TO EXERCISE

(To be executed if holder desires to

exercise the Rights Certificate.)

TO: CA, INC.

     The undersigned hereby irrevocably elects to exercise                      whole Rights
represented by the attached Rights Certificate to purchase the shares of Participating Preferred
Stock or such other securities or assets as may then be issuable upon the exercise of such Rights
and requests that certificates for such shares be issued in the name of:

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 

Address:
	 	 
	 
	 	 	 	 
	 

	 	 

Social Security or Other Taxpayer
	 	 
	 

	 	Identification Number:	 	 

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

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 

Address:
	 	 
	 
	 	 	 	 
	 

	 	 

Social Security or Other Taxpayer
	 	 
	 

	 	Identification Number:	 	 
	 

	 	 

	 	 

Dated:                                         ,                     

A-8

 

	 	 	 	 	 
	 

	 	 	 	 
	Signature Guaranteed:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature
(Signature must correspond to name as
written upon the face of the attached
Rights Certificate in every particular,
without alteration or enlargement or any
change whatsoever)	 	 

          Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
Medallion program), pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 
	 

	 	(To be completed if true)	 

          The undersigned hereby represents, for the benefit of all holders of Rights and shares of
Common Stock, that the Rights evidenced by the attached Rights Certificate are not, and, to the
knowledge of the undersigned, have never been, Beneficially Owned by an Acquiring Person or an
Affiliate or Associate thereof (as each such term is defined in the Rights Agreement).

	 	 	 	 	 
	 

	 	 

Signature
	 	 
	 
	 	 	 	 
	 

	 	 	 	 

NOTICE

     In the event the certification set forth above is not completed in connection with a purported
exercise, the Company will deem the Beneficial Owner of the Rights evidenced by the attached Rights
Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as each such term is
defined in the Rights Agreement) or a transferee of any of the foregoing and accordingly will deem
the Rights evidenced by such Rights Certificate to be void and not transferable or exercisable.

A-9

 

EXHIBIT B

FORM OF CERTIFICATE OF DESIGNATION AND TERMS

OF PARTICIPATING PREFERRED STOCK OF CA, INC.

Pursuant to Section 151 of the General Corporation Law of the State of Delaware

     We, the undersigned,                      and                     , the                      and
                    , respectively, of CA, Inc., a Delaware corporation (the “Corporation”), do
hereby certify as follows:

          Pursuant to authority granted by Article FOURTH of the Restated Certificate of Incorporation
of the Corporation, and in accordance with the provisions of Section 151 of the General Corporation
Law of the State of Delaware, the Board of Directors of the Corporation has adopted the following
resolutions fixing the designations and certain terms, powers, preferences and other rights of a
new series of the Corporation’s Preferred Stock, Class A, without par value, and certain
qualifications, limitations and restrictions thereon:

          RESOLVED, that there is hereby established a series of Preferred Stock, Class A, without par
value, of the Corporation, and the designation and certain terms, powers, preferences and other
rights of the shares of such series, and certain qualifications, limitations and restrictions
thereon, are hereby fixed as follows:

               (i) The distinctive serial designation of this series shall be “Series Two Participating
Preferred Stock” (hereinafter called “this Series”). Each share of this Series shall be identical
in all respects with the other shares of this Series except as to the dates from and after which
dividends thereon shall be cumulative.

               (ii) The number of shares in this Series shall initially be [600,000], which number may from
time to time be increased or decreased (but not below the number then outstanding) by the Board of
Directors. Shares of this Series purchased by the Corporation shall be cancelled and shall revert
to authorized but unissued shares of Preferred Stock undesignated as to series. Shares of this
Series may be issued in fractional shares which are whole number multiples of one one-thousandth of
a share, which fractional shares shall entitle the holder, in proportion to such holder’s
fractional share, to all rights of a holder of a whole share of this Series.

B-1

 

               (iii) The holders of full or fractional shares of this Series shall be entitled to receive,
when and as declared by the Board of Directors, but only out of funds legally available therefor,
dividends, (A) on each date that dividends or other distributions (other than dividends or
distributions payable in Common Stock of the Corporation) are payable on or in respect of Common
Stock comprising part of the Reference Package (as defined below), in an amount per whole share of
this Series equal to the aggregate amount of dividends or other distributions (other than dividends
or distributions payable in Common Stock of the Corporation) that would be payable on such date to
a holder of the Reference Package and (B) on the last day of March, June, September and December in
each year, in an amount per whole share of this Series equal to the excess (if any) of
$___1 over the aggregate dividends paid per whole share of this Series during the three
month period ending on such last day. Each such dividend shall be paid to the holders of record of
shares of this Series on the date, not exceeding sixty days preceding such dividend or distribution
payment date, fixed for the purpose by the Board of Directors in advance of payment of each
particular dividend or distribution. Dividends on each full and each fractional share of this
Series shall be cumulative from the date such full or fractional share is originally issued;
provided that any such full or fractional share originally issued after a dividend record
date and on or prior to the dividend payment date to which such record date relates shall not be
entitled to receive the dividend payable on such dividend payment date or any amount in respect of
the period from such original issuance to such dividend payment date.

               The term “Reference Package” shall initially mean 1,000 shares of Common Stock, par value
$0.10 per share (“Common Stock”) of the Corporation. In the event the Corporation shall at any
time after the close of business on
                    ,
                    2 (A) declare or pay a dividend on
any Common Stock payable in Common Stock, (B) subdivide any Common Stock or (C) combine any Common
Stock into a smaller number of shares, then and in each such case the Reference Package after such
event shall be the Common Stock that a holder of the Reference Package immediately prior to such
event would hold thereafter as a result thereof.

               Holders of shares of this Series shall not be entitled to any dividends, whether payable in
cash, property or stock, in excess of full cumulative dividends, as herein provided on this Series.

               So long as any shares of this Series are outstanding, no dividend (other than a dividend in
Common Stock or in any other stock ranking junior to this Series as to dividends and upon
liquidation) shall be declared or paid or set aside for payment or other distribution declared or
made upon the Common Stock or upon any other stock ranking junior to this Series as to dividends or
upon liquidation, unless the full cumulative dividends (including the dividend to be paid upon
payment of such dividend or other distribution) on all outstanding

 

			
	1	 	Insert an amount equal to 1/4 of 1% of
the Exercise Price divided by the number of shares of Preferred Stock
purchasable upon exercise of one Right.
	 
	2	 	For a certificate of designation relating to
shares to be issued pursuant to Section 2.3 of the Rights Agreement, insert the
Separation Time. For a certificate of designation relating to shares to be
issued pursuant to Section 3.1(d) of the Rights Agreement, insert the Flip-in
Date.

B-2

 

shares of this Series shall have been, or shall contemporaneously be, paid. When dividends
are not paid in full upon this Series and any other stock ranking on a parity as to dividends with
this Series, all dividends declared upon shares of this Series and any other stock ranking on a
parity as to dividends shall be declared pro rata so that in all cases the amount of dividends
declared per share of this Series and such other stock shall bear to each other the same ratio that
accumulated dividends per share on the shares of the Series and such other stock bear to each
other. Neither the Common Stock nor any other stock of the Corporation ranking junior to or on a
parity with this Series as to dividends or upon liquidation shall be redeemed, purchased or
otherwise acquired for any consideration (or any moneys be paid to or made available for a sinking
fund for the redemption of any shares of any such stock) by the Corporation (except by conversion
into or exchange for stock of the Corporation ranking junior to this Series as to dividends and
upon liquidation), unless the full cumulative dividend (including the dividend to be paid upon
payment of such dividend, distribution, redemption, purchase or other acquisition) on all
outstanding shares of this Series shall have been, or shall contemporaneously be, paid.

               (iv) In the event of any merger, consolidation, reclassification or other transaction in
which the shares of Common Stock are exchanged for or changed into other stock or securities, cash
and/or any other property, then in any such case the shares of this Series shall at the same time
be similarly exchanged or changed in an amount per whole share equal to the aggregate amount of
stock, securities, cash and/or any other property (payable in kind), as the case may be, that a
holder of the Reference Package would be entitled to receive as a result of such transaction.

               (v) In the event of any liquidation, dissolution or winding up of the affairs of the
Corporation, whether voluntary or involuntary, the holders of full and fractional shares of this
Series shall be entitled, before any distribution or payment is made on any date to the holders of
the Common Stock or any other stock of the Corporation ranking junior to this Series upon
liquidation, to be paid in full an amount per whole share of this Series equal to the greater of
(A) $
                    3 or (B) the aggregate amount distributed or to be distributed in connection
with such liquidation, dissolution or winding up to a holder of the Reference Package (such greater
amount being hereinafter referred to as the “Liquidation Preference”), together with accrued
dividends to such distribution or payment date, whether or not earned or declared. If such payment
shall have been made in full to all holders of shares of this Series, the holders of shares of this
Series as such shall have no right or claim to any of the remaining assets of the Corporation.

               In the event the assets of the Corporation available for distribution to the holders of shares
of this Series upon any liquidation, dissolution or winding up of the Corporation, whether
voluntary or involuntary, shall be insufficient to pay in full all amounts to which such holders
are entitled pursuant to the first paragraph of this Section (v), no such distribution shall be
made on account of any shares of any other class or series of Preferred Stock ranking on a party
with the shares of this Series upon such liquidation, dissolution or winding up unless
proportionate distributive amounts shall be paid on account of the shares of this Series,

 

			
	3	 	Insert an amount equal to 1,000 times the
Exercise Price in effect as of the Separation Time.

B-3

 

ratably in proportion to the full distributable amounts to which holders of all such parity
shares are respectively entitled upon such liquidation, dissolution or winding up.

               Upon the liquidation, dissolution or winding up of the Corporation, the holders of shares of
this Series then outstanding shall be entitled to be paid out of assets of the Corporation
available for distribution to its stockholders all amounts to which such holders are entitled
pursuant to the first paragraph of this Section (v) before any payment shall be made to the holders
of Common Stock or any other stock of the Corporation ranking junior upon liquidation to this
Series.

               For the purposes of this Section (v), the consolidation or merger of, or binding statutory
share exchange by, the Corporation with any other corporation or entity shall not be deemed to
constitute a liquidation, dissolution or winding up of the Corporation.

               (vi) The shares of this Series shall not be redeemable.

               (vii) In addition to any other vote or consent of stockholders required by law or by the
Restated Certificate of Incorporation, as may be amended from time to time, of the Corporation, and
except as otherwise required by law, each share (or fraction thereof) of this Series shall, on any
matter, vote as a class with any other capital stock comprising part of the Reference Package and
shall have the number of votes thereon that a holder of the Reference Package would have.

     IN WITNESS WHEREOF, the undersigned have signed and attested this certificate on the                      day
of                                         ,                     .

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 

	 	 

Attest:

                                                            

B-4<PAGE>
                                                                    EXHIBIT 10.1

                                  ATTACHMENT A

                                                               CONTRACT #:H6934

Effective January 1, 2007, UAHC Health Plan of TN is approved to offer a SNP
for Contract Number: H6934. The service area listed below includes all counties
for which the SNP has been approved. Should you have questions, please contact
John Hebb at John.Hebb@cms.hhs.gov. Below is the specific information relating
to the approval of your SNP proposal.

TYPE: Initial Contract
SNP TYPE: Dual
SUBSET/SPECIALTY: All
ENROLLED POPULATION: Exclusive
DISPROPORTIONAL PERCENTAGE:
SERVICE AREA: Shelby, TN
<PAGE>

                                                        EXHIBIT 10.1 (continued)

     Contract with Eligible Medicare Advantage (MA) Organization Pursuant to
     Sections 1851 through 1859 of the Social Security Act for the Operation
                of a Medicare Advantage Coordinated Care Plan(s)

                               CONTRACT (#H6934)
                                        ________

                                     Between

    Centers for Medicare & Medicaid Services (hereinafter referred to as CMS)

                                       and

                      UAHC Health Plan of Tennessee, Inc.
                (hereinafter referred to as the MA Organization)

CMS and the MA Organization, an entity which has been determined to be an
eligible Medicare Advantage Organization by the Administrator of the Centers for
Medicare & Medicaid Services under 42 CFR 422.503, agree to the following for
the purposes of sections 1851 through 1859 of the Social Security Act
(hereinafter referred to as the Act):

(NOTE: Citations indicated in brackets are placed in the text of this contract
to note the regulatory authority for certain contract provisions. All references
to Part 422 are to 42 CFR Part 422.)

YOU MUST CHECK OFF AND INITIAL EACH REQUIRED ADDENDUM TYPE TO REFLECT THE
COVERAGE OFFERED UNDER THE H (OR R) NUMBER ASSOCIATED WITH THIS CONTRACT

<TABLE>
<CAPTION>
ADDENDUM TYPE                                             INITIALS
-------------                                            ----------
<S>                                                      <C>
 X   PART D ADDENDUM                                       /s/ SD
___                                                      __________

____ EMPLOYER-ONLY MA-PD ADDENDUM (800 SERIES)           __________

____ EMPLOYER-ONLY MA ONLY ADDENDUM (800 SERIES)         __________

____ VARIANCES/WAIVERS (PROVIDED DIRECTLY TO             __________
     DEMONSTRATION ORGANIZATIONS BY CMS)

____ REGIONAL PREFERRED PROVIDER ORGANIZATION ADDENDUM   __________
     (PROVIDED DIRECTLY TO RPPOS BY CMS)
</TABLE>

<PAGE>

                                    Article I

                                Term of Contract

The term of this contract shall be from the date of signature by CMS' authorized
representative through December 31, 2007, after which this contract may be
renewed for successive one-year periods in accordance with 42 CFR 422.505(c) and
as discussed in Paragraph A in Article VII below. [422.505]

This contract governs the respective rights and obligations of the parties as of
the effective date set forth above, and supersedes any prior agreements between
the MA Organization and CMS as of such date. MA organizations offering Part D
also must execute an Addendum to the Medicare Managed Care Contract Pursuant to
Sections 1860D-1 through 1860D-42 of the Social Security Act for the Operation
of a Voluntary Medicare Prescription Drug Plan (hereafter the "Part D
Addendum"). For MA Organizations offering MA-PD plans, the Part D Addendum
governs the rights and obligations of the parties relating to the provision of
Part D benefits, in accordance with its terms, as of its effective date.

                                   Article II

                              Coordinated Care Plan

A. The Medicare Advantage Organization agrees to operate one or more coordinated
care plans as defined in 42 CFR 422.4(a)(1)(iii)), including at least one MA-PD
plan as required under 42 CFR 422.4(c), as described in its final Plan Benefit
Package (PBP) bid submission (benefit and price bid) proposal as approved by CMS
and as attested to in the Medicare Advantage Attestation of Benefit Plan and
Price, and in compliance with the requirements of this contract and applicable
Federal statutes, regulations, and policies.

B. Except as provided in paragraph (C) of this Article, this contract is deemed
to incorporate any changes that are required by statute to be implemented during
the term of the contract and any regulations or policies implementing or
interpreting such statutory provisions.

C. CMS will not implement, other than at the beginning of a calendar year,
requirements under 42 CFR Part 422 that impose a new significant cost or burden
on MA organizations or plans, unless a different effective date is required by
statute. [422.521]

                                   Article III

          Functions To Be Performed By Medicare Advantage Organization

A. PROVISION OF BENEFITS

1. The MA Organization agrees to provide enrollees in each of its MA plans the
basic benefits as required under Section 422.101 and, to the extent applicable,
supplemental benefits under Section 422.102 and as established in the MA
Organization's final benefit and price bid proposal as approved by CMS and
listed in the MA Organization Plan Attestation of Benefit Plan and Price, which
is attached to this contract. The MA Organization agrees to provide access to
such benefits as

                                        2

<PAGE>

required under subpart C in a manner consistent with professionally recognized
standards of health care and according to the access standards stated in Section
422.112.

2. The MA Organization agrees to provide post-hospital extended care services,
should an MA enrollee elect such coverage, through a skilled nursing home
facility according to the requirements of section 1852(l) of the Act and Section
422.133. A skilled nursing home facility is a facility in which an MA enrollee
resided at the time of admission to the hospital, a facility that provides
services through a continuing care retirement community, a facility in which the
spouse of the enrollee is residing at the time of the enrollee's discharge from
the hospital, or hospital, or wherever the enrollee resides immediately before
admission for extended care services. [422.133; 422.504(a)(3)]

B. ENROLLMENT REQUIREMENTS

1. The MA Organization agrees to accept new enrollments, make enrollments
effective, process voluntary disenrollments, and limit involuntary
disenrollments, as provided in subpart B of part 422.

2. The MA Organization shall comply with the provisions of Section 422.110
concerning prohibitions against discrimination in beneficiary enrollment, other
than in enrolling eligible beneficiaries in a CMA-approved special needs plan
that exclusively enrolls special needs individuals as consistent with Sections
422.2, 422.4(a)(1)(iv) and 422.52. [422.504(a)(2)]

C. BENEFICIARY PROTECTIONS

1. The MA Organization agrees to comply with all requirements in subpart M of
part 422, governing coverage determinations, grievances, and appeals.
[422.504(a)(7)]

2. The MA Organization agrees to comply with the confidentiality and enrollee
record accuracy requirements in Section 422.118.

3. Beneficiary Financial Protections. The MA Organization agrees to comply with
the following requirements:

     (a) Each MA Organization must adopt and maintain arrangements satisfactory
to CMS to protect its enrollees from incurring liability for payment of any fees
that are the legal obligation of the MA Organization. To meet this requirement
the MA Organization must--

     (i) Ensure that all contractual or other written arrangements with
providers prohibit the Organization's providers from holding any beneficiary
enrollee liable for payment of any fees that are the legal obligation of the MA
Organization; and

     (ii) Indemnify the beneficiary enrollee for payment of any fees that are
the legal obligation of the MA Organization for services furnished by providers
that do not contract, or that have not otherwise entered into an agreement with
the MA Organization, to provide services to the organization's beneficiary
enrollees. [422.504(g)(1)]

     (b) The MA Organization must provide for continuation of enrollee health
care benefits-

     (i) For all enrollees, for the duration of the contract period for which
CMS payments have been made; and

     (ii) For enrollees who are hospitalized on the date its contract with CMS
terminates, or, in the event of the MA Organization's insolvency, through the
date of discharge. [422.504(g)(2)]

                                        3

<PAGE>

     (c) In meeting the requirements of this section (C), other than the
provider contract requirements specified in paragraph (C)(3)(a) of this Article,
the MA Organization may use--

     (i) Contractual arrangements;

     (ii) Insurance acceptable to CMS;

     (iii) Financial reserves acceptable to CMS; or

     (iv) Any other arrangement acceptable to CMS. [422.504(g)(3)]

D. PROVIDER PROTECTIONS

1. The MA Organization agrees to comply with all applicable provider
requirements in 42 CFR Part 422 Subpart E, including provider certification
requirements, anti-discrimination requirements, provider participation and
consultation requirements, the prohibition on interference with provider advice,
limits on provider indemnification, rules governing payments to providers, and
limits on physician incentive plans. [422.504(A)(6)]

2. Prompt Payment.

     (a) The MA Organization must pay 95 percent of "clean claims" within 30
days of receipt if they are claims for covered services that are not furnished
under a written agreement between the organization and the provider.

     (i) The MA Organization must pay interest on clean claims that are not paid
within 30 days in accordance with sections 1816(c)(2) and 1842(c)(2) of the Act.

     (ii) All other claims from non-contracted providers must be paid or denied
within 60 calendar days from the date of the request. [422.520(a)]

     (b) Contracts or other written agreements between the MA Organization and
its providers must contain a prompt payment provision, the terms of which are
developed and agreed to by both the MA Organization and the relevant provider.
[422.520(b)]

     (c) If CMS determines, after giving notice and opportunity for hearing,
that the MA Organization has failed to make payments in accordance with
subparagraph (2)(a) of this section, CMS may provide--

     (i) For direct payment of the sums owed to providers; and

(ii) For appropriate reduction in the amounts that would otherwise be paid to
the MA Organization, to reflect the amounts of the direct payments and the cost
of making those payments. [422.520(c)]

E. QUALITY IMPROVEMENT PROGRAM

1. The MA Organization agrees to operate, for each plan that it offers, an
ongoing quality improvement program as stated in accordance with Section 1852(e)
of the Social Security Act and 42 CFR 422.152.

2. Chronic Care Improvement Program

     (a) Each MA organization (other than MA private-fee-for-service plans) must
have a chronic care improvement program and must establish criteria for
participation in the program. The CCIP must have a method for identifying
enrollees with multiple or sufficiently severe chronic conditions who meet the
criteria for participation in the program and a mechanism for monitoring
enrollees' participation in the program.

     (b) Plans have flexibility to choose the design of their program; however,
in addition to meeting the requirements specified above, the CCIP selected must
be relevant to the plan's MA

                                        4

<PAGE>

population. MA organizations are required to submit annual reports on their CCIP
program to CMS.

3. Performance Measurement and Reporting: The MA Organization shall measure
performance under its MA plans using standard measures required by CMS, and
report (at the organization level) its performance to CMS. The standard measures
required by CMS during the term of this contract will be uniform data collection
and reporting instruments, to include the Health Plan and Employer Data
Information Set (HEDIS), Consumer Assessment of Health Plan Satisfaction (CAHPS)
survey, and Health Outcomes Survey (HOS). These measures will address clinical
areas, including effectiveness of care, enrollee perception of care and use of
services; and nonclinical areas including access to and availability of
services, appeals and grievances, and organizational characteristics.
[422.152(b)(1), (e)]

4. Utilization Review:

     (a) An MA Organization for an MA coordinated care plan must use written
protocols for utilization review and policies and procedures must reflect
current standards of medical practice in processing requests for initial or
continued authorization of services and have in effect mechanisms to detect both
underutilization and over utilization of services. [422.152(b)]

     (b) For MA regional preferred provider organizations (RPPOs) and MA local
preferred provider organizations (PPOs) that are offered by an organization that
is not licensed or organized under State law as an HMOs, if the MA Organization
uses written protocols for utilization review, those policies and procedures
must reflect current standards of medical practice in processing requests for
initial or continued authorization of services and include mechanisms to
evaluate utilization of services and to inform enrollees and providers of
services of the results of the evaluation. [422.152(e)]

5. Information Systems:

     (a) The MA Organization must:

     (i) Maintain a health information system that collects, analyzes and
integrates the data necessary to implement its quality improvement program;

     (ii) Ensure that the information entered into the system (particularly that
received from providers) is reliable and complete;

     (iii) Make all collected information available to CMS. [422.152(f)(1)]

6. External Review

The MA Organization will comply with any requests by Quality Improvement
Organizations to review the MA Organization's medical records in connection with
appeals of discharges from hospitals, skilled nursing facilities, and home
health agencies.

F. COMPLIANCE PLAN

The MA Organization agrees to implement a compliance plan in accordance with the
requirements of Section 422.503(b)(4)(vi). [422.503(b)(4)(vi)]

G. COMPLIANCE DEEMED ON THE BASIS OF ACCREDITATION

CMS may deem the MA Organization to have met the quality improvement
requirements of Section 1852(e) of the Act and Section 422.152, the
confidentiality and accuracy of enrollee records requirements of Section 1852(h)
of the Act and Section 422.118, the anti-discrimination requirements of Section
1852(b) of the Act and Section 422.110, the access to services requirements of
Section 1852(d) of the Act and Section 422.112, and the advance directives
requirements of Section 1852(i) of the Act and Section 422.128, the

                                        5

<PAGE>

provider participation requirements of Section 1852(j) of the Act and 42 CFR
Part 422, Subpart F, and the applicable requirements described in Section
423.165, if the MA Organization is fully accredited (and periodically
reaccredited) by a private, national accreditation organization approved by CMS
and the accreditation organization used the standards approved by CMS for the
purposes of assessing the MA Organization's compliance with Medicare
requirements. The provisions of Section 422.156 shall govern the MA
Organization's use of deemed status to meet MA program requirements.

H. PROGRAM INTEGRITY

1. The MA Organization agrees to provide notice based on best knowledge,
information, and belief to CMS of any integrity items related to payments from
governmental entities, both federal and state, for healthcare or prescription
drug services. These items include any investigations, legal actions or matters
subject to arbitration brought involving the MA Organization (or MA
Organization's firm if applicable) and its subcontractors (excluding contracted
network providers), including any key management or executive staff, or any
major shareholders (5% or more), by a government agency (state or federal) on
matters relating to payments from governmental entities, both federal and state,
for healthcare and/or prescription drug services. In providing the notice, the
sponsor shall keep the government informed of when the integrity item is
initiated and when it is closed. Notice should be provided of the details
concerning any resolution and monetary payments as well as any settlement
agreements or corporate integrity agreements.

2. The MA Organization agrees to provide notice based on best knowledge,
information, and belief to CMS in the event the MA Organization or any of its
subcontractors is criminally convicted or has a civil judgment entered against
it for fraudulent activities or is sanctioned under any Federal program
involving the provision of health care or prescription drug services.

I. MARKETING

1. The MA Organization may not distribute any marketing materials, as defined in
42 CFR 422.80(b) and in the Marketing Materials Guidelines for Medicare
Advantage-Prescription Drug Plans and Prescription Drug Plans (Medicare
Marketing Guidelines), unless they have been filed with and not disapproved by
CMS in accordance with Section 422.80. The file and use process set out at
Section 422.80(a)(2) must be used, unless the MA organization notifies CMS that
it will not use this process.

2. CMS and the MA Organization shall agree upon language setting forth the
benefits, exclusions and other language of the Plan. The MA Organization bears
full responsibility for the accuracy of its marketing materials. CMS, in its
sole discretion, may order the MA Organization to print and distribute the
agreed upon marketing materials, in a format approved by CMS. The MA
Organization must disclose the information to each enrollee electing a plan as
outlined in 42 CFR 422.111.

3. The MA Organization agrees that any advertising material, including that
labeled promotional material, marketing materials, or supplemental literature,
shall be truthful and not misleading. All marketing materials must include the
Contract number. All membership identification cards must include the Contract
number on the front of the card.

4. The MA Organization must comply with the Medicare Marketing Guidelines, as
well as all applicable statutes and regulations, including and without
limitation Section 1851(h) of the Act

                                        6

<PAGE>

and 42 CFR Sections 422.80, 422.111 and 423.50. Failure to comply may result in
sanctions as provided in 42 CFR Part 422 Subpart O.

                                   Article IV

                         CMS Payment to MA Organization

A. The MA Organization agrees to develop its annual benefit and price bid
proposal and submit to CMS all required information on premiums, benefits, and
cost sharing, as required under 42 CFR Part 422 Subpart F. [422.504(a)(10)]

B. Methodology. CMS agrees to pay the MA Organization under this contract in
accordance with the provisions of section 1853 of the Act and 42 CFR Part 422
Subpart G. [422.504(a)(9)]

C. Attestation of payment data (Attachments A, B, and C).

As a condition for receiving a monthly payment under paragraph B of this
article, and 42 CFR Part 422 Subpart G, the MA Organization agrees that its
chief executive officer (CEO), chief financial officer (CFO), or an individual
delegated with the authority to sign on behalf of one of these officers, and who
reports directly to such officer, must request payment under the contract on the
forms attached hereto as Attachment A (enrollment attestation) and Attachment B
(risk adjustment data) which attest to (based on best knowledge, information and
belief, as of the date specified on the attestation form) the accuracy,
completeness, and truthfulness of the data identified on these attachments. The
Medicare Advantage Plan Attestation of Benefit Plan and Price must be signed and
attached to the executed version of this contract.

1. Attachment A requires that the CEO, CFO, or an individual delegated with the
authority to sign on behalf of one of these officers, and who reports directly
to such officer, must attest based on best knowledge, information, and belief
that each enrollee for whom the MA Organization is requesting payment is validly
enrolled, or was validly enrolled during the period for which payment is
requested, in an MA plan offered by the MA Organization. The MA Organization
shall submit completed enrollment attestation forms to CMS, or its contractor,
on a monthly basis. (NOTE: The forms included as attachments to this contract
are for reference only. CMS will provide instructions for the completion and
submission of the forms in separate documents. MA Organizations should not take
any action on the forms until appropriate CMS instructions become available.)

2. Attachment B requires that the CEO, CFO, or an individual delegated with the
authority to sign on behalf of one of these officers, and who reports directly
to such officer, must attest to (based on best knowledge, information and
belief, as of the date specified on the attestation form) that the risk
adjustment data it submits to CMS under Section 422.310 are accurate, complete,
and truthful. The MA Organization shall make annual attestations to this effect
for risk adjustment data on Attachment B and according to a schedule to be
published by CMS. If such risk adjustment data are generated by a related
entity, contractor, or subcontractor of an MA Organization, such entity,
contractor, or subcontractor must similarly attest to (based on best knowledge,
information, and belief, as of the date specified on the attestation form) the
accuracy, completeness, and truthfulness of the data. [422.504(l)]

                                        7

<PAGE>

3. The Medicare Advantage Plan Attestation of Benefit Plan and Price (which is
attached hereto) requires that the CEO, CFO, or an individual delegated with the
authority to sign on behalf of one of these officers, and who reports directly
to such officer, must attest (based on best knowledge, information and belief,
as of the date specified on the attestation form) that the information and
documentation comprising the bid submission proposal is accurate, complete, and
truthful and fully conforms to the Bid Form and Plan Benefit Package
requirements; and that the benefits described in the CMS-approved proposal bid
submission agree with the benefit package the MA Organization will offer during
the period covered by the proposal bid submission. This document is being sent
separately to the MA Organization and must be signed and attached to the
executed version of this contract, and is incorporated herein by reference.
[422.502(l)]

                                    Article V

      MA Organization Relationship with Related Entities, Contractors, and
                                 Subcontractors

A. Notwithstanding any relationship(s) that the MA Organization may have with
related entities, contractors, or subcontractors, the MA Organization maintains
full responsibility for adhering to and otherwise fully complying with all terms
and conditions of its contract with CMS. [422.504(i)(1)]

B. The MA Organization agrees to require all related entities, contractors, or
subcontractors to agree that--

     (1) HHS, the Comptroller General, or their designees have the right to
inspect, evaluate, and audit any pertinent contracts, books, documents, papers,
and records of the related entity(s), contractor(s), or subcontractor(s)
involving transactions related to this contract; and

     (2) HHS, the Comptroller General, or their designees have the right to
inspect, evaluate, and audit any pertinent information for any particular
contract period for 10 years from the final date of the contract period or from
the date of completion of any audit, whichever is later.
[422.504(i)(2)]

C. The MA Organization agrees that all contracts or written arrangements into
which the MA Organization enters with providers, related entities, contractors,
or subcontractors (first tier and downstream entities) shall contain the
following elements:

     (1) Enrollee protection provisions that provide--

     (a) Consistent with Article III(C), arrangements that prohibit providers
from holding an enrollee liable for payment of any fees that are the legal
obligation of the MA Organization; and

     (b) Consistent with Article III(C), provision for the continuation of
benefits.

     (2) Accountability provisions that indicate that the MA Organization may
only delegate activities or functions to a provider, related entity, contractor,
or subcontractor in a manner consistent with requirements set forth at paragraph
D of this article.

                                        8

<PAGE>

     (3) A provision requiring that any services or other activity performed by
a related entity, contractor or subcontractor in accordance with a contract or
written agreement between the related entity, contractor, or subcontractor and
the MA Organization will be consistent and comply with the MA Organization's
contractual obligations to CMS. [422.504(i)(3)]

D. If any of the MA Organization's activities or responsibilities under this
contract with CMS is delegated to other parties, the following requirements
apply to any related entity, contractor, subcontractor, or provider:

     (1) Written arrangements must specify delegated activities and reporting
responsibilities.

     (2) Written arrangements must either provide for revocation of the
delegation activities and reporting requirements or specify other remedies in
instances where CMS or the MA Organization determine that such parties have not
performed satisfactorily.

     (3) Written arrangements must specify that the performance of the parties
is monitored by the MA Organization on an ongoing basis.

     (4) Written arrangements must specify that either--

     (a) The credentials of medical professionals affiliated with the party or
parties will be either reviewed by the MA Organization; or

     (b) The credentialing process will be reviewed and approved by the MA
Organization and the MA Organization must audit the credentialing process on an
ongoing basis.

     (5) All contracts or written arrangements must specify that the related
entity, contractor, or subcontractor must comply with all applicable Medicare
laws, regulations, and CMS instructions. [422.504(i)(4)]

E. If the MA Organization delegates selection of the providers, contractors, or
subcontractors to another organization, the MA Organization's written
arrangements with that organization must state that the MA Organization retains
the right to approve, suspend, or terminate any such arrangement.
[422.504(i)(5)]

F. As of the date of this contract and throughout its term, the MA Organization

     (1) Agrees that any physician incentive plan it operates meets the
requirements of Section 422.208, and

     (2) Has assured that all physicians and physician groups that the MA
Organization's physician incentive plan places at substantial financial risk
have adequate stop-loss protection in accordance with Section 422.208(f).
[422.208]

                                        9

<PAGE>

                                   Article VI

                              Records Requirements

A. MAINTENANCE OF RECORDS

1. The MA Organization agrees to maintain for 10 years books, records,
documents, and other evidence of accounting procedures and practices that--

     (a) Are sufficient to do the following:

     (i) Accommodate periodic auditing of the financial records (including data
related to Medicare utilization, costs, and computation of the benefit and price
bid) of the MA Organization.

     (ii) Enable CMS to inspect or otherwise evaluate the quality,
appropriateness and timeliness of services performed under the contract, and the
facilities of the MA Organization.

     (iii) Enable CMS to audit and inspect any books and records of the MA
Organization that pertain to the ability of the organization to bear the risk of
potential financial losses, or to services performed or determinations of
amounts payable under the contract.

     (iv) Properly reflect all direct and indirect costs claimed to have been
incurred and used in the preparation of the benefit and price bid proposal.

     (v) Establish component rates of the benefit and price bid for determining
additional and supplementary benefits.

     (vi) Determine the rates utilized in setting premiums for State insurance
agency purposes and for other government and private purchasers; and

     (b) Include at least records of the following:

     (i) Ownership and operation of the MA Organization's financial, medical,
and other record keeping systems.

     (ii) Financial statements for the current contract period and six prior
periods.

     (iii) Federal income tax or informational returns for the current contract
period and six prior periods.

     (iv) Asset acquisition, lease, sale, or other action.

     (v) Agreements, contracts (including, but not limited to, with related or
unrelated prescription drug benefit managers) and subcontracts.

     (vi) Franchise, marketing, and management agreements.

     (vii) Schedules of charges for the MA Organization's fee-for-service
patients.

     (viii) Matters pertaining to costs of operations.

     (ix) Amounts of income received, by source and payment.

     (x) Cash flow statements.

     (xi) Any financial reports filed with other Federal programs or State
authorities. [422.504(d)]

2. Access to facilities and records. The MA Organization agrees to the
following:

     (a) The Department of Health and Human Services (HHS), the Comptroller
General, or their designee may evaluate, through inspection or other means--

     (i) The quality, appropriateness, and timeliness of services furnished to
Medicare enrollees under the contract;

     (ii) The facilities of the MA Organization; and

                                       10

<PAGE>

     (iii) The enrollment and disenrollment records for the current contract
period and ten prior periods.

     (b) HHS, the Comptroller General, or their designees may audit, evaluate,
or inspect any books, contracts, medical records, documents, papers, patient
care documentation, and other records of the MA Organization, related entity,
contractor, subcontractor, or its transferee that pertain to any aspect of
services performed, reconciliation of benefit liabilities, and determination of
amounts payable under the contract, or as the Secretary may deem necessary to
enforce the contract.

     (c) The MA Organization agrees to make available, for the purposes
specified in section (A) of this article, its premises, physical facilities and
equipment, records relating to its Medicare enrollees, and any additional
relevant information that CMS may require, in a manner that meets CMS record
maintenance requirements.

     (d) HHS, the Comptroller General, or their designee's right to inspect,
evaluate, and audit extends through 10 years from the final date of the contract
period or completion of audit, whichever is later unless-

     (i) CMS determines there is a special need to retain a particular record or
group of records for a longer period and notifies the MA Organization at least
30 days before the normal disposition date;

     (ii) There has been a termination, dispute, or fraud or similar fault by
the MA Organization, in which case the retention may be extended to 10 years
from the date of any resulting final resolution of the termination, dispute, or
fraud or similar fault; or

     (iii) HHS, the Comptroller General, or their designee determines that there
is a reasonable possibility of fraud, in which case they may inspect, evaluate,
and audit the MA Organization at any time. [422.504(e)]

B. REPORTING REQUIREMENTS

1. The MA Organization shall have an effective procedure to develop, compile,
evaluate, and report to CMS, to its enrollees, and to the general public, at the
times and in the manner that CMS requires, and while safeguarding the
confidentiality of the doctor-patient relationship, statistics and other
information as described in the remainder of this section (B). [422.516(a)]

2. The MA Organization agrees to submit to CMS certified financial information
that must include the following:

     (a) Such information as CMS may require demonstrating that the organization
has a fiscally sound operation, including:

     (i) The cost of its operations;

     (ii) A description, submitted to CMS annually and within 120 days of the
end of the fiscal year, of significant business transactions (as defined in
Section 422.500) between the MA Organization and a party in interest showing
that the costs of the transactions listed in paragraph (2)(a)(v) of this section
do not exceed the costs that would be incurred if these transactions were with
someone who is not a party in interest; or

     (iii) If they do exceed, a justification that the higher costs are
consistent with prudent management and fiscal soundness requirements.

     (iv) A combined financial statement for the MA Organization and a party in
interest if either of the following conditions is met:

                                       11

<PAGE>

     (aa) Thirty-five percent or more of the costs of operation of the MA
Organization go to a party in interest.

     (bb) Thirty-five percent or more of the revenue of a party in interest is
from the MA Organization. [422.516(b)]

     (v) Requirements for combined financial statements.

     (aa) The combined financial statements required by paragraph (2)(a)(iv)
must display in separate columns the financial information for the MA
Organization and each of the parties in interest.

     (bb) Inter-entity transactions must be eliminated in the consolidated
column.

     (cc) The statements must have been examined by an independent auditor in
accordance with generally accepted accounting principles and must include
appropriate opinions and notes.

     (dd) Upon written request from the MA Organization showing good cause, CMS
may waive the requirement that the organization's combined financial statement
include the financial information required in paragraph (2)(a)(v) with respect
to a particular entity. [422.516(c)]

     (vi) A description of any loans or other special financial arrangements the
MA Organization makes with contractors, subcontractors, and related entities.

     (b) Such information as CMS may require pertaining to the disclosure of
ownership and control of the MA Organization. [422.504(f)(1)(ii)]

     (c) Patterns of utilization of the MA Organization's services.

3. The MA Organization agrees to participate in surveys required by CMS and to
submit to CMS all information that is necessary for CMS to administer and
evaluate the program and to simultaneously establish and facilitate a process
for current and prospective beneficiaries to exercise choice in obtaining
Medicare services. This information includes, but is not limited to:

     (a) The benefits covered under the MA plan;

     (b) The MA monthly basic beneficiary premium and MA monthly supplemental
beneficiary premium, if any, for the plan.

     (c) The service area and continuation area, if any, of each plan and the
enrollment capacity of each plan;

     (d) Plan quality and performance indicators for the benefits under the plan
including --

     (i) Disenrollment rates for Medicare enrollees electing to receive benefits
through the plan for the previous 2 years;

     (ii) Information on Medicare enrollee satisfaction;

     (iii) The patterns of utilization of plan services;

     (iv) The availability, accessibility, and acceptability of the plan's
services;

     (v) Information on health outcomes and other performance measures required
by CMS;

     (vi) The recent record regarding compliance of the plan with requirements
of this part, as determined by CMS; and

     (vii) Other information determined by CMS to be necessary to assist
beneficiaries in making an informed choice among MA plans and traditional
Medicare;

     (e) Information about beneficiary appeals and their disposition;

     (f) Information regarding all formal actions, reviews, findings, or other
similar actions by States, other regulatory bodies, or any other certifying or
accrediting organization;

     (g) Any other information deemed necessary by CMS for the administration or
evaluation of the Medicare program. [422.504(f)(2)]

                                       12
<PAGE>

4. The MA Organization agrees to provide to its enrollees and upon request, to
any individual eligible to elect an MA plan, all informational requirements
under Section 422.64 and, upon an enrollee's, request, the financial disclosure
information required under Section 422.516. [422.504(f)(3)]

5. Reporting and disclosure under ERISA.

     (a) For any employees' health benefits plan that includes an MA
Organization in its offerings, the MA Organization must furnish, upon request,
the information the plan needs to fulfill its reporting and disclosure
obligations (with respect to the MA Organization) under the Employee Retirement
Income Security Act of 1974 (ERISA).

     (b) The MA Organization must furnish the information to the employer or the
employer's designee, or to the plan administrator, as the term "administrator"
is defined in ERISA. [422.516(d)]

6. Electronic communication. The MA Organization must have the capacity to
communicate with CMS electronically. [422.504(b)]

7. Risk Adjustment data. The MA Organization agrees to comply with the
requirements in Section 422.310 for submitting risk adjustment data to CMS.
[422.504(a)(8)]

                                   Article VII

                           Renewal of the MA Contract

A. Renewal of contract: In accordance with Section 422.505, following the
initial contract period, this contract is renewable annually only if-

     (1) The MA Organization has not provided CMS with a notice of intention not
to renew; [422.506(a)]

     (2) CMS and the MA Organization reach agreement on the bid under 42 CFR
Part 422, Subpart F; and [422.505(d)]

     (3) CMS informs the MA Organization that it authorizes a renewal.

B. Nonrenewal of contract

     (1) Nonrenewal by the Organization.

     (a) In accordance with Section 422.506, the MA Organization may elect not
to renew its contract with CMS as of the end of the term of the contract for any
reason, provided it meets the time frames for doing so set forth in
subparagraphs (b) and (c) of this paragraph.

     (b) If the MA Organization does not intend to renew its contract, it must
notify--

     (i) CMS, in writing, by the first Monday in June of the year in which the
contract would end, pursuant to Section 422.506

     (ii) Each Medicare enrollee, at least 90 days before the date on which the
nonrenewal is effective. This notice must include a written description of all
alternatives available for obtaining Medicare services within the service area
including alternative MA plans, Medigap options, and original Medicare and
prescription drug plans and must receive CMS approval prior to issuance.

     (iii) The general public, at least 90 days before the end of the current
calendar year, by publishing a CMS-approved notice in one or more newspapers of
general circulation in each community located in the MA Organization's service
area.

                                       13

<PAGE>

     (c) CMS may accept a nonrenewal notice submitted after the applicable
annual non-renewal notice deadline if --

     (i) The MA Organization notifies its Medicare enrollees and the public in
accordance with subparagraph (1)(b)(ii) and (1)(b)(iii) of this section; and

     (ii) Acceptance is not inconsistent with the effective and efficient
administration of the Medicare program.

     (d) If the MA Organization does not renew a contract under subparagraph
(1), CMS will not enter into a contract with the Organization for 2 years from
the date of contract separation unless there are special circumstances that
warrant special consideration, as determined by CMS. [422.506(a)]

     (2) CMS decision not to renew.

     (a) CMS may elect not to authorize renewal of a contract for any of the
following reasons:

     (i) The MA Organization's level of enrollment, growth in enrollment, or
insufficient number of contracted providers is determined by CMS to threaten the
viability of the organization under the MA program and or be an indicator of
beneficiary dissatisfaction with the MA plan(s) offered by the organization.

     (ii) For any of the reasons listed in Section 422.510(a) [Article VIII,
section (B)(1)(a) of this contract], which would also permit CMS to terminate
the contract.

     (iii) The MA Organization has committed any of the acts in Section
422.752(a) that would support the imposition of intermediate sanctions or civil
money penalties under 42 CFR Part 422 Subpart O.

     (iv) The MA Organization did not submit a benefit and price bid or the
benefit and price bid was not acceptable [422.505(d)]

     (b) Notice. CMS shall provide notice of its decision whether to authorize
renewal of the contract as follows:

     (i) To the MA Organization by May 1 of the contract year, except in the
event of (2)(a)(iv) above, for which notice will be sent by September 1.

     (ii) To the MA Organization's Medicare enrollees by mail at least 90 days
before the end of the current calendar year.

     (iii) To the general public at least 90 days before the end of the current
calendar year, by publishing a notice in one or more newspapers of general
circulation in each community or county located in the MA Organization's service
area.

     (c) Notice of appeal rights. CMS shall give the MA Organization written
notice of its right to reconsideration of the decision not to renew in
accordance with Section 422.644. [422.506(b)]

                                       14

<PAGE>

                                  Article VIII

                   Modification or Termination of the Contract

A.  Modification or Termination of Contract by Mutual Consent

1. This contract may be modified or terminated at any time by written mutual
consent.

     (a) If the contract is modified by written mutual consent, the MA
Organization must notify its Medicare enrollees of any changes that CMS
determines are appropriate for notification within time frames specified by CMS.
[422.508(a)(2)]

     (b) If the contract is terminated by written mutual consent, except as
provided in section (A)(2) of this Article, the MA Organization must provide
notice to its Medicare enrollees and the general public as provided in section
B(2)(b)(ii) and B(2)(b)(iii) of this Article. [422.508(a)(1)]

2. If this contract is terminated by written mutual consent and replaced the day
following such termination by a new MA contract, the MA Organization is not
required to provide the notice specified in section B of this article.
[422.508(b)]

B. Termination of the Contract by CMS or the MA Organization

1. Termination by CMS.

     (a) CMS may terminate a contract for any of the following reasons:

     (i) The MA Organization has failed substantially to carry out the terms of
its contract with CMS.

     (ii) The MA Organization is carrying out its contract with CMS in a manner
that is inconsistent with the effective and efficient implementation of 42 CFR
Part 422.

     (iii) CMS determines that the MA Organization no longer meets the
requirements of 42 CFR Part 422 for being a contracting organization.

     (iv) There is credible evidence that the MA Organization committed or
participated in false, fraudulent or abusive activities affecting the Medicare
program, including submission of false or fraudulent data.

     (v) The MA Organization experiences financial difficulties so severe that
its ability to make necessary health services available is impaired to the point
of posing an imminent and serious risk to the health of its enrollees, or
otherwise fails to make services available to the extent that such a risk to
health exists.

     (vi) The MA Organization substantially fails to comply with the
requirements in 42 CFR Part 422 Subpart M relating to grievances and appeals.

     (vii) The MA Organization fails to provide CMS with valid risk adjustment
data as required under Section 422.310 and 423.329(b)(3).

     (viii) The MA Organization fails to implement an acceptable quality
improvement program as required under 42 CFR Part 422 Subpart D.

     (ix) The MA Organization substantially fails to comply with the prompt
payment requirements in Section 422.520.

     (x) The MA Organization substantially fails to comply with the service
access requirements in Section 422.112.

     (xi) The MA Organization fails to comply with the requirements of
Section 422.208 regarding physician incentive plans.

                                       15

<PAGE>

     (xii) The MA Organization substantially fails to comply with the marketing
requirements in 422.80.

     (b) Notice. If CMS decides to terminate a contract for reasons other than
the grounds specified in section (B)(1)(a) above, it will give notice of the
termination as follows:

     (i) CMS will notify the MA Organization in writing 90 days before the
intended date of the termination.

     (ii) The MA Organization will notify its Medicare enrollees of the
termination by mail at least 30 days before the effective date of the
termination.

     (iii) The MA Organization will notify the general public of the termination
at least 30 days before the effective date of the termination by publishing a
notice in one or more newspapers of general circulation in each community or
county located in the MA Organization's service area.

     (c) Immediate termination of contract by CMS.

     (i) For terminations based on violations prescribed in paragraph
(B)(1)(a)(v) of this article, CMS will notify the MA Organization in writing
that its contract has been terminated effective the date of the termination
decision by CMS. If termination is effective in the middle of a month, CMS has
the right to recover the prorated share of the capitation payments made to the
MA Organization covering the period of the month following the contract
termination.

     (ii) CMS will notify the MA Organization's Medicare enrollees in writing of
CMS' decision to terminate the MA Organization's contract. This notice will
occur no later than 30 days after CMS notifies the plan of its decision to
terminate this contract. CMS will simultaneously inform the Medicare enrollees
of alternative options for obtaining Medicare services, including alternative MA
Organizations in a similar geographic area and original Medicare.

     (iii) CMS will notify the general public of the termination no later than
30 days after notifying the MA Organization of CMS' decision to terminate this
contract. This notice will be published in one or more newspapers of general
circulation in each community or county located in the MA Organization's service
area.

     (d) Corrective action plan

     (i) General. Before terminating a contract for reasons other than the
grounds specified in section (B)(1)(a)(v) of this article, CMS will provide the
MA Organization with reasonable opportunity, not to exceed time frames specified
at 42 CFR Part 422 Subpart N, to develop and receive CMS approval of a
corrective action plan to correct the deficiencies that are the basis of the
proposed termination.

     (ii) Exception. If a contract is terminated under section (B)(1)(a)(v) of
this article, the MA Organization will not have the opportunity to submit a
corrective action plan.

     (e) Appeal rights. If CMS decides to terminate this contract, it will send
written notice to the MA Organization informing it of its termination appeal
rights in accordance with 42 CFR Part 422 Subpart N. [422.510]

2. Termination by the MA Organization

     (a) Cause for termination. The MA Organization may terminate this contract
if CMS fails to substantially carry out the terms of the contract.

     (b) Notice. The MA Organization must give advance notice as follows:

     (i) To CMS, at least 90 days before the intended date of termination. This
notice must specify the reasons why the MA Organization is requesting contract
termination.

                                       16

<PAGE>

     (ii) To its Medicare enrollees, at least 60 days before the termination
effective date. This notice must include a written description of alternatives
available for obtaining Medicare services within the service area, including
alternative MA and MA-PD plans, PDP plans, Medigap options, and original
Medicare and must receive CMS approval.

     (iii) To the general public at least 60 days before the termination
effective date by publishing a CMS-approved notice in one or more newspapers of
general circulation in each community or county located in the MA Organization's
geographic area.

     (c) Effective date of termination. The effective date of the termination
will be determined by CMS and will be at least 90 days after the date CMS
receives the MA Organization's notice of intent to terminate.

     (d) CMS' liability. CMS' liability for payment to the MA Organization ends
as of the first day of the month after the last month for which the contract is
in effect, but CMS shall make payments for amounts owed prior to termination but
not yet paid.

     (e) Effect of termination by the organization. CMS will not enter into an
agreement with the MA Organization for a period of two years from the date the
Organization has terminated this contract, unless there are circumstances that
warrant special consideration, as determined by CMS. [422.512]

                                   Article IX

                   Requirements of Other Laws and Regulations

A. The MA Organization agrees to comply with--

     (1) Federal laws and regulations designed to prevent or ameliorate fraud,
waste, and abuse, including, but not limited to, applicable provisions of
Federal criminal law, the False Claims Act (31 USC 3729 et seq.), and the
anti-kickback statute (section 1128B(b) of the Act): and

     (2) HIPAA administrative simplification rules at 45 CFR parts 160, 162, and
164. [422.504(h)]

B. The MA Organization maintains ultimate responsibility for adhering to and
otherwise fully complying with all terms and conditions of its contract with
CMS, notwithstanding any relationship(s) that the MA organization may have with
related entities, contractors, or subcontractors. [422.504(i)]

C. In the event that any provision of this contract conflicts with the
provisions of any statute or regulation applicable to an MA Organization, the
provisions of the statute or regulation shall have full force and effect.

                                       17

<PAGE>

                                    Article X

                                  Severability

The MA Organization agrees that, upon CMS' request, this contract will be
amended to exclude any MA plan or State-licensed entity specified by CMS, and a
separate contract for any such excluded plan or entity will be deemed to be in
place when such a request is made. [422.504(k)]

                                   Article XI

                                  Miscellaneous

A. Definitions. Terms not otherwise defined in this contract shall have the
meaning given to such terms in 42 CFR Part 422.

B. Alteration to Original Contract Terms. The MA Organization agrees that it has
not altered in any way the terms of this contract presented for signature by
CMS. The MA Organization agrees that any alterations to the original text the MA
Organization may make to this contract shall not be binding on the parties.

C. Approval to Begin Marketing and Enrollment. The MA Organization agrees that
it must complete CMS operational requirements prior to receiving CMS approval to
begin Part C marketing and enrollment activities. Such activities include, but
are not limited to, establishing and successfully testing connectivity with CMS
systems to process enrollment applications (or contracting with an entity
qualified to perform such functions on the MA Organization's Sponsor's behalf)
and successfully demonstrating capability to submit accurate and timely price
comparison data. To establish and successfully test connectivity, the MA
Organization must, 1) establish and test physical connectivity to the CMS data
center, 2) acquire user identifications and passwords, 3) receive, store, and
maintain data necessary to perform enrollments and send and receive transactions
to and from CMS, and 4) check and receive transaction status information.

D. Incorporation of Applicable Addenda. All addenda checked off and initialed on
the cover sheet of this contract by the MA Organization are hereby incorporated
by reference.

                                       18

<PAGE>

In witness whereof, the parties hereby execute this contract.

FOR THE MA ORGANIZATION

Stephanie Dowell                        President and CEO
-------------------------------------   ----------------------------------------
Printed Name                            Title

/s/ Stephanie Dowell                    September 13, 2006
-------------------------------------   ----------------------------------------
Signature                               Date

                                        1769 Paragon Drive, Suite 300
UAHC Health Plan of Tennessee, Inc.     Memphis, Tennessee 38132
-------------------------------------   ----------------------------------------
Organization                            Address

FOR THE CENTERS FOR MEDICARE & MEDICAID SERVICES

/s/ David A. Lewis                      9/29/06
-------------------------------------   ----------------------------------------
David A. Lewis                          Date
Acting Director
Medicare Advantage Group
Center for Beneficiary Choices

                                       19
<PAGE>

                                  ATTACHMENT A

                      ATTESTATION OF ENROLLMENT INFORMATION
                             RELATING TO CMS PAYMENT
                      TO A MEDICARE ADVANTAGE ORGANIZATION

     Pursuant to the contract(s) between the Centers for Medicare & Medicaid
Services (CMS) and (INSERT NAME OF MA ORGANIZATION), hereafter referred to as
the MA Organization, governing the operation of the following Medicare Advantage
plans (INSERT PLAN IDENTIFICATION NUMBERS HERE), the MA Organization hereby
requests payment under the contract, and in doing so, makes the following
attestation concerning CMS payments to the MA Organization. The MA Organization
acknowledges that the information described below directly affects the
calculation of CMS payments to the MA Organization and that misrepresentations
to CMS about the accuracy of such information may result in Federal civil action
and/or criminal prosecution. This attestation shall not be considered a waiver
of the MA Organization's right to seek payment adjustments from CMS based on
information or data which does not become available until after the date the MA
Organization submits this attestation.

     1. The MA Organization has reported to CMS for the month of (INDICATE MONTH
AND YEAR) all new enrollments, disenrollments, and changes in enrollees'
institutional status with respect to the above-stated MA plans. Based on best
knowledge, information, and belief as of the date indicated below, all
information submitted to CMS in this report is accurate, complete, and truthful.

     2. The MA Organization has reviewed the CMS monthly membership report and
reply listing for the month of (INDICATE MONTH AND YEAR) for the above-stated MA
plans and has reported to CMS any discrepancies between the report and the MA
Organization's records. For those portions of the monthly membership report and
the reply listing to which the MA Organization raises no objection, the MA
Organization, through the certifying CEO/CFO, will be deemed to have attested,
based on best knowledge, information, and belief as of the date indicated below,
to their accuracy, completeness, and truthfulness.

                                        ----------------------------------------
                                        (INDICATE TITLE [CEO, CFO, or delegate])

                                        on behalf of

                                        ----------------------------------------
                                        (INDICATE MA ORGANIZATION)

                                        ----------------------------------------
                                        DATE

                                       20

<PAGE>

                                  ATTACHMENT B

           ATTESTATION OF RISK ADJUSTMENT DATA INFORMATION RELATING TO
                CMS PAYMENT TO A MEDICARE ADVANTAGE ORGANIZATION

     Pursuant to the contract(s) between the Centers for Medicare & Medicaid
Services (CMS) and (INSERT NAME OF MA ORGANIZATION), hereafter referred to as
the MA Organization, governing the operation of the following Medicare Advantage
plans (INSERT PLAN IDENTIFICATION NUMBERS HERE), the MA Organization hereby
requests payment under the contract, and in doing so, makes the following
attestation concerning CMS payments to the MA Organization. The MA Organization
acknowledges that the information described below directly affects the
calculation of CMS payments to the MA Organization or additional benefit
obligations of the MA Organization and that misrepresentations to CMS about the
accuracy of such information may result in Federal civil action and/or criminal
prosecution.

     The MA Organization has reported to CMS during the period of (INDICATE
DATES) all (INDICATE TYPE OF DATA - INPATIENT HOSPITAL, OUTPATIENT HOSPITAL, OR
PHYSICIAN) risk adjustment data available to the MA Organization with respect to
the above-stated MA plans. Based on best knowledge, information, and belief as
of the date indicated below, all information submitted to CMS in this report is
accurate, complete, and truthful.

                                        ----------------------------------------
                                        (INDICATE TITLE [CEO, CFO, or delegate])

                                        on behalf of

                                        ----------------------------------------
                                        (INDICATE MA ORGANIZATION)

                                        ----------------------------------------
                                        DATE

                                       21

<PAGE>

           [SAMPLE - DO NOT USE - THIS DOCUMENT WILL BE SENT DIRECTLY
                            TO THE MAO THROUGH HPMS]
  ATTACHMENT C - Medicare Advantage Plan Attestation of Benefit Plan and Price

                               (LEGAL ENTITY NAME)
                                  (CONTRACT #)

                               Date: (XX/XX/XXXX)

I attest that the following plan numbers as established in the final Plan
Benefit Package (PBP) will be operated by the above-stated organization and made
available to eligible Medicare beneficiaries in the approved service area during
program year 2007.

<TABLE>
<CAPTION>
Plan   Segment                                                                                             CMS Approval   Effective
ID     ID       Version   Plan Name    Plan Type    Transaction Type      MA Premium      Part D Premium     Date            Date
-----  -------  -------  -----------  -----------  ------------------  ---------------  -----------------  ------------  ----------
<S>    <C>      <C>      <C>          <C>          <C>                 <C>              <C>                <C>           <C>
(XXX)  (X)      (X)      (PLAN NAME)  (PLAN TYPE)  (TRANSACTION TYPE)  $(PLAN PREMIUM)  $(PART D PREMIUM)   (XX/XX/XX)   (XX/XX/XX)
(XXX)  (X)      (X)      (PLAN NAME)  (PLAN TYPE)  (TRANSACTION TYPE)  $(PLAN PREMIUM)  $(PART D PREMIUM)   (XX/XX/XX)   (XX/XX/XX)
(XXX)  (X)      (X)      (PLAN NAME)  (PLAN TYPE)  (TRANSACTION TYPE)  $(PLAN PREMIUM)  $(PART D PREMIUM)   (XX/XX/XX)   (XX/XX/XX)
</TABLE>

-------------------------------------   ----------------------------------------
CEO                                     CFO

-------------------------------------   ----------------------------------------
(NAME OF CEO)                    DATE   (NAME OF CFO)                       DATE
(TITLE)                                 (TITLE)
        -----------------------------           --------------------------------
(ADDRESS 1)                             (ADDRESS 1)
            -------------------------               ----------------------------
(ADDRESS 2)                             (ADDRESS 2)
            -------------------------               ----------------------------
(CITY, STATE ZIP)                       (CITY, STATE ZIP)
                  -------------------                     ----------------------
(PHONE #)                               (PHONE #)
          ---------------------------             ------------------------------

                                       22

<PAGE>

             ADDENDUM TO MEDICARE MANAGED CARE CONTRACT PURSUANT TO
          SECTIONS 1860D-1 THROUGH 1860D-42 OF THE SOCIAL SECURITY ACT
             FOR THE OPERATION OF A VOLUNTARY MEDICARE PRESCRIPTION
                                    DRUG PLAN

The Centers for Medicare & Medicaid Services (hereinafter referred to as "CMS")
and UAHC Health Plan of Tennessee, Inc., a Medicare managed care organization
(hereinafter referred to as the MA-PD Sponsor) agree to amend the contract H6934
governing the MA-PD Sponsor's operation of a Part C plan described in Section
1851(a)(2)(A) of the Social Security Act (hereinafter referred to as "the Act")
or a Medicare cost plan to include this addendum under which the MA-PD Sponsor
shall operate a Voluntary Medicare Prescription Drug Plan pursuant to sections
1860D-1 through 1860D-42 (with the exception of section 1860D-22 and 1860D-31)
of the Act.

This addendum is made pursuant to Subpart L of 42 CFR Part 417 (in the case of
cost plan sponsors offering a Part D benefit) and Subpart K of 42 CFR Part 422
(in the case of an MA-PD Sponsor offering a Part C plan).

NOTE: For purposes of this addendum, unless otherwise noted, reference to an
"MA-PD Sponsor" or "MA-PD Plan" is deemed to include a cost plan sponsor or a MA
private fee-for-service contractor offering a Part D benefit.

<PAGE>

                                    ARTICLE I
                  MEDICARE VOLUNTARY PRESCRIPTION DRUG BENEFIT

A.   The MA-PD Sponsor agrees to operate one or more Medicare Voluntary
     Prescription Drug Plans as described in its application and related
     materials, including but not limited to all the attestations contained
     therein and all supplemental guidance, for Medicare approval and in
     compliance with the provisions of this addendum, which incorporates in its
     entirety the Solicitation For Applications for New Medicare Advantage
     Prescription Drug Plan (MA-PD) Sponsors, released on January 24, 2006
     [applicable to Medicare Part C contractors] or the Solicitation for
     Applications for New Cost Plan Sponsors, released on January 24, 2006
     [applicable to Medicare cost plan contractors] (hereinafter collectively
     referred to as "the addendum"). The MA-PD Sponsor also agrees to operate
     in accordance with the regulations at 42 CFR Section 423.1 through 42 CFR
     Section 423.910 (with the exception of Subparts Q, R, and S), sections
     1860D-1 through 1860D-42 (with the exception of sections 1860D-22(a) and
     1860D-31) of the Social Security Act, and the applicable solicitation
     identified above, as well as all other applicable Federal statutes,
     regulations, and policies. This addendum is deemed to incorporate any
     changes that are required by statute to be implemented during the term of
     this addendum and any regulations or policies implementing or interpreting
     such statutory provisions.

B.   CMS agrees to perform its obligations to the MA-PD Sponsor consistent with
     the regulations at 42 CFR Section 423.1 through 42 CFR Section 423.910
     (with the exception of Subparts Q, R, and S), sections 1860D-1 through
     1860D-42 (with the exception of sections 1860D-22(a) and 1860D-31) of the
     Social Security Act, and the applicable solicitation, as well as all other
     applicable Federal statutes, regulations, and policies.

C.   CMS agrees that it will not implement, other than at the beginning of a
     calendar year, regulations under 42 CFR Part 423 that impose new,
     significant regulatory requirements on the MA-PD Sponsor. This provision
     does not apply to new requirements mandated by statute.

D.   This addendum is in no way intended to supersede or modify 42 CFR, Parts
     417, 422 or 423. Failure to reference a regulatory requirement in this
     addendum does not affect the applicability of such requirements to the
     MA-PD Sponsor and CMS.

                                   ARTICLE II
                 FUNCTIONS TO BE PERFORMED BY THE MA-PD SPONSOR

A.   ENROLLMENT

     1.   MA-PD Sponsor agrees to enroll in its MA-PD plan only Part D-eligible
          beneficiaries as they are defined in 42 CFR Section 423.30(a) and who
          have elected to enroll in MA-PD Sponsor's Part C or Section 1876
          benefit.

                                        2

<PAGE>

     2.   If the MA-PD Sponsor is a cost plan sponsor, the MA-PD Sponsor
          acknowledges that its Section 1876 plan enrollees are not required to
          elect enrollment in its Part D plan.

B.   PRESCRIPTION DRUG BENEFIT

     1.   MA-PD Sponsor agrees to provide the required prescription drug
          coverage as defined under 42 CFR Section 423.100 and, to the extent
          applicable, supplemental benefits as defined in 42 CFR Section 423.100
          and in accordance with Subpart C of 42 CFR Part 423. MA-PD Sponsor
          also agrees to provide Part D benefits as described in the MA-PD
          Sponsor's Part D bid(s) approved each year by CMS (and in the
          Attestation of Benefit Plan and Price, attached hereto).

     2.   MA-PD Sponsor agrees to calculate and collect beneficiary Part D
          premiums in accordance with 42 CFR Sections 423.286 and 423.293.

     3.   If the MA-PD Sponsors is a cost plans sponsor, it acknowledge that its
          Part D benefit is offered as an optional supplemental service in
          accordance with 42 CFR Section 417.440(b)(2)(ii).

C.   DISSEMINATION OF PLAN INFORMATION

     1.   MA-PD Sponsor agrees to provide the information required in 42 CFR
          Section 423.48.

     2.   MA-PD Sponsor agrees to disclose information related to Part D
          benefits to beneficiaries in the manner and the form specified by CMS
          under 42 CFR Sections 423.128 and 423.50 and in the "Marketing
          Materials Guidelines for Medicare Advantage-Prescription Drug Plans
          (MA-PDs) and Prescription Drug Plans (PDPs)."

     3.   MA-PD Sponsor certifies that all materials it submits to CMS under the
          File and Use Certification authority described in the Marketing
          Materials Guidelines are accurate, truthful, not misleading, and
          consistent with CMS marketing guidelines.

D.   QUALITY ASSURANCE/UTILIZATION MANAGEMENT

     MA-PD Sponsor agrees to operate quality assurance, cost, and utilization
     management, medication therapy management programs, and support electronic
     prescribing in accordance with Subpart D of 42 CFR Part 423.

E.   APPEALS AND GRIEVANCES

     MA-PD Sponsor agrees to comply with all requirements in Subpart M of 42 CFR
     Part 423 governing coverage determinations, grievances and appeals, and
     formulary exceptions. MA-PD Sponsor acknowledges that these requirements
     are separate and distinct from the appeals and grievances requirements
     applicable to the MA-PD Sponsor through the operation of its Part C or cost
     plan benefits.

                                        3

<PAGE>

F.   PAYMENT TO MA-PD SPONSOR

     1.   MA-PD Sponsor and CMS agree that payment paid for Part D services
          under the addendum will be governed by the rules in Subpart G of 42
          CFR Part 423.

     2.   If the MA-PD Sponsor is participating in the Part D Reinsurance
          Payment Demonstration, described in 70 FR 9360 (Feb. 25, 2005), it
          affirms that it will not seek payment under the demonstration for
          services provided to employer group enrollees.

G.   BID SUBMISSION AND REVIEW

     If the MA-PD Sponsor intends to participate in the Part D program for the
     future year, MA-PD Sponsor agrees to submit a future year's Part D bid,
     including all required information on premiums, benefits, and cost-sharing,
     by the applicable due date, as provided in Subpart F of 42 CFR Part 423 so
     that CMS and the MA-PD Sponsor may conduct negotiations regarding the terms
     and conditions of the proposed bid and benefit plan renewal. MA-PD Sponsor
     acknowledges that failure to submit a timely bid under this section may
     affect the sponsor's ability to offer a Part C plan, pursuant to the
     provisions of 42 CFR Section 422.4(c).

H.   COORDINATION WITH OTHER PRESCRIPTION DRUG COVERAGE

     1.   MA-PD Sponsor agrees to comply with the coordination requirements with
          State Pharmacy Assistance Programs (SPAPs) and plans that provide
          other prescription drug coverage as described in Subpart J of 42 CFR
          Part 423.

     2.   MA-PD Sponsor agrees to comply with Medicare Secondary Payer
          procedures as stated in 42 CFR Section 423.462.

I.   SERVICE AREA AND PHARMACY ACCESS

     1.   The MA-PD Sponsor agrees to provide Part D benefits in the service
          area for which it has been approved by CMS to offer Part C or cost
          plan benefits utilizing a pharmacy network and formulary approved by
          CMS that meet the requirements of 42 CFR Section 423.120.

     2.   The MA-PD Sponsor agrees to ensure adequate access to Part D-covered
          drugs at out-of-network pharmacies according to 42 CFR Section
          423.124.

     3.   MA-PD Sponsor agrees to provide benefits by means of point-of-service
          systems to adjudicate prescription drug claims in a timely and
          efficient manner in compliance with CMS standards, except when
          necessary to provide access in underserved areas, I/T/U pharmacies (as
          defined in 42 CFR Section 423.100), and long-term care pharmacies (as
          defined in 42 CFR Section 423.100).

                                        4

<PAGE>

     4.   MA-PD Sponsor agrees to contract with any pharmacy that meets the
          MA-PD Sponsor's reasonable and relevant standard terms and conditions.
          If MA-PD Sponsor has demonstrated that it historically fills 98% or
          more of its enrollees' prescriptions at pharmacies owned and operated
          by the MA-PD Sponsor (or presents compelling circumstances that
          prevent the sponsor from meeting the 98% standard or demonstrates that
          its Part D plan design will enable the sponsor to meet the 98%
          standard during the contract year), this provision does not apply to
          MA-PD Sponsor's plan.

     5.   The provisions of 42 CFR Section 423.120(a) concerning the TRICARE
          retail pharmacy access standard do not apply to MA-PD Sponsor if the
          Sponsor has demonstrated to CMS that it historically fills more than
          50% of its enrollees' prescriptions at pharmacies owned and operated
          by the MA-PD Sponsor. MA-PD Sponsors excused from meeting the TRICARE
          standard are required to demonstrate retail pharmacy access that meets
          the requirements of 42 CFR Section 422.112 for a Part C contractor and
          42 CFR Section 417.416(e) for a cost plan contractor.

J.   COMPLIANCE PLAN/PROGRAM INTEGRITY

     MA-PD Sponsor agrees that it will develop and implement a compliance plan
     that applies to its Part D-related operations, consistent with 42 CFR
     Section 423.504(b)(4)(vi).

K.   LOW-INCOME SUBSIDY

     MA-PD Sponsor agrees that it will participate in the administration of
     subsidies for low-income individuals according to Subpart P of 42 CFR Part
     423.

L.   BENEFICIARY FINANCIAL PROTECTIONS

     The MA-PD Sponsor agrees to afford its enrollees protection from liability
     for payment of fees that are the obligation of the MA-PD Sponsor in
     accordance with 42 CFR Section 423.505(g).

M.   RELATIONSHIP WITH RELATED ENTITIES, CONTRACTORS, AND SUBCONTRACTORS

     1.   The MA-PD Sponsor agrees that it maintains ultimate responsibility for
          adhering to and otherwise fully complying with all terms and
          conditions of this addendum.

     2.   The MA-PD Sponsor shall ensure that any contracts or agreements with
          subcontractors or agents performing functions on the MA-PD Sponsor's
          behalf related to the operation of the Part D benefit are in
          compliance with 42 CFR Section 423.505(i).

                                        5

<PAGE>

N.  CERTIFICATION OF DATA THAT DETERMINE PAYMENT

MA-PD Sponsor must provide certifications in accordance with 42 CFR Section
423.505(k).

                                   ARTICLE III
                   RECORD RETENTION AND REPORTING REQUIREMENTS

A.   MAINTENANCE OF RECORDS

     MA-PD Sponsor agrees to maintain records and provide access in accordance
     with 42 CFR Sections 423.504(d) and 505(d) and (e).

B.   GENERAL REPORTING REQUIREMENTS

     The MA-PD Sponsor agrees to submit to information to CMS according to 42
     CFR Sections 423.505(f), 423.514, and the "Final Medicare Part D Reporting
     Requirements," a document issued by CMS and subject to modification each
     program year.

C.   CMS LICENSE FOR USE OF PLAN FORMULARY

          PDP Sponsor agrees to submit to CMS each plan's formulary information,
          including any changes to its formularies, and hereby grants to the
          Government[,and any person or entity who might receive the formulary
          from the Government,] a non-exclusive license to use all or any
          portion of the formulary for any purpose related to the administration
          of the Part D program, including without limitation publicly
          distributing, displaying, publishing or reconfiguration of the
          information in any medium, including www.medicare.gov, and by any
          electronic, print or other means of distribution.

                                   ARTICLE IV
                       HIPAA TRANSACTIONS/PRIVACY/SECURITY

A.   MA-PD Sponsor agrees to comply with the confidentiality and enrollee record
     accuracy requirements specified in 42 CFR Section 423.136.

B.   MA-PD Sponsor agrees to enter into a business associate agreement with the
     entity with which CMS has contracted to track Medicare beneficiaries' true
     out-of-pocket costs.

                                        6

<PAGE>

                                    ARTICLE V
                            ADDENDUM TERM AND RENEWAL

A.   TERM OF ADDENDUM

     This addendum is effective from the date of CMS' authorized
     representative's signature through December 31, 2007. This addendum shall
     be renewable for successive one-year periods thereafter according to 42 CFR
     Section 423.506. MA-PD Sponsor shall not conduct Part D-related marketing
     activities prior to October 1, 2006 and shall not process enrollment
     applications prior to November 15, 2006. MA-PD Sponsor shall begin
     delivering Part D benefit services on January 1, 2007.

B.   QUALIFICATION TO RENEW ADDENDUM

     1.   In accordance with 42 CFR Section 423.507, the MA-PD Sponsor will be
          determined qualified to renew this addendum annually only if--

          (a)  CMS informs the MA-PD Sponsor that it is qualified to renew its
               addendum; and

          (b)  The MA-PD Sponsor has not provided CMS with a notice of intention
               not to renew in accordance with Article VII of this addendum.

     2.   Although MA-PD Sponsor may be determined qualified to renew its
          addendum under this Article, if the MA-PD Sponsor and CMS cannot reach
          agreement on the Part D bid under Subpart F of 42 CFR Part 423, no
          renewal takes place, and the failure to reach agreement is not subject
          to the appeals provisions in Subpart N of 42 CFR Parts 422 or 423.
          (Refer to Article XI for consequences of non-renewal on the Part C
          contract and the ability to enter into a Part C contract.)

                                   ARTICLE VI
                             NONRENEWAL OF ADDENDUM

A.   NONRENEWAL BY THE MA-PD SPONSOR

     1.   MA-PD Sponsor may non-renew this addendum in accordance with 42 CFR
          423.507(a).

     2.   If the MA-PD Sponsor non-renews this addendum under this Article, CMS
          cannot enter into a Part D addendum with the organization for 2 years
          unless there are special circumstances that warrant special
          consideration, as determined by CMS.

B.   NONRENEWAL BY CMS

     CMS may non-renew this addendum under the rules of 42 CFR 423.507(b).
     (Refer to Article X for consequences of non-renewal on the Part C contract
     and the ability to enter into a Part C contract.)

                                        7

<PAGE>

                                   ARTICLE VII
            MODIFICATION OR TERMINATION OF ADDENDUM BY MUTUAL CONSENT

This addendum may be modified or terminated at any time by written mutual
consent in accordance with 42 CFR 423.508. (Refer to Article X for consequences
of non-renewal on the Part C contract and the ability to enter into a Part C
contract.)

                                  ARTICLE VIII
                         TERMINATION OF ADDENDUM BY CMS

CMS may terminate this addendum in accordance with 42 CFR 423.509. (Refer to
Article X for consequences of non-renewal on the Part C contract and the ability
to enter into a Part C contract.)

                                   ARTICLE IX
                  TERMINATION OF ADDENDUM BY THE MA-PD SPONSOR

A.   The MA-PD Sponsor may terminate this addendum only in accordance with 42
     CFR 423.510.

B.   CMS will not enter into a Part D addendum with an organization that has
     terminated its addendum within the preceding 2 years unless there are
     circumstances that warrant special consideration, as determined by CMS.

C.   If the addendum is terminated under section A of this Article, the MA-PD
     Sponsor must ensure the timely transfer of any data or files. (Refer to
     Article X for consequences of non-renewal on the Part C contract and the
     ability to enter into a Part C contract.)

                                    ARTICLE X
     RELATIONSHIP BETWEEN ADDENDUM AND PART C CONTRACT OR 1876 COST CONTRACT

A.   MA-PD Sponsor acknowledges that, if it is a Medicare Part C contractor, the
     termination or nonrenewal of this addendum by either party may require CMS
     to terminate or non-renew the Sponsor's Part C contract in the event that
     such non-renewal or termination prevents the MA-PD Sponsor from meeting the
     requirements of 42 CFR Section 422.4(c), in which case the Sponsor must
     provide the notices specified in this contract, as well as the notices
     specified under Subpart K of 42 CFR Part 422. MA-PD Sponsor also
     acknowledges that Article X.B. of this addendum may prevent the sponsor
     from entering into a Part C contract for two years following an addendum
     termination or non-renewal where such non-renewal or termination prevents
     the MA-PD Sponsor from meeting the requirements of 42 CFR Section 422.4(c).

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B.   The termination of this addendum by either party shall not, by itself,
     relieve the parties from their obligations under the Part C or cost plan
     contracts to which this document is an addendum.

C.   In the event that the MA-PD Sponsor's Part C or cost plan contract (as
     applicable) is terminated or nonrenewed by either party, the provisions of
     this addendum shall also terminate. In such an event, the MA-PD Sponsor and
     CMS shall provide notice to enrollees and the public as described in this
     contract as well as 42 CFR Part 422, Subpart K or 42 CFR Part 417, Subpart
     K, as applicable.

                                   ARTICLE XI
                             INTERMEDIATE SANCTIONS

     The MA-PD Sponsor shall be subject to sanctions and civil monetary
     penalties, consistent with Subpart O of 42 CFR Part 423.

                                   ARTICLE XII
                                  SEVERABILITY

     Severability of the addendum shall be in accordance with 42 CFR Section
     423.504(e).

                                  ARTICLE XIII
                                  MISCELLANEOUS

A.   DEFINITIONS: Terms not otherwise defined in this addendum shall have the
     meaning given such terms at 42 CFR Part 423 or, as applicable, 42 CFR Part
     422 or Part 417.

B.   ALTERATION TO ORIGINAL ADDENDUM TERMS: The MA-PD Sponsor agrees that it has
     not altered in any way the terms of the MA-PD addendum presented for
     signature by CMS. MA-PD Sponsor agrees that any alterations to the original
     text the MA-PD Sponsor may make to this addendum shall not be binding on
     the parties.

C.   ADDITIONAL CONTRACT TERMS: The MA-PD Sponsor agree to include in this
     addendum other terms and conditions in accordance with 42 CFR Section
     423.505(j).

D.   CMS APPROVAL TO BEGIN MARKETING AND ENROLLMENT ACTIVITIES: The MA-PD
     Sponsor agrees that it must complete CMS operational requirements related
     to its Part D benefit prior to receiving CMS approval to begin MA-PD plan
     marketing activities relating to its Part D benefit. Such activities
     include, but are not limited to, establishing and successfully testing
     connectivity with CMS systems to process enrollment applications (or
     contracting with an entity qualified to perform

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     such functions on MA-PD Sponsor's behalf) and successfully demonstrating
     the capability to submit accurate and timely price comparison data. To
     establish and successfully test connectivity, the PDP Sponsor must, 1)
     establish and test physical connectivity to the CMS data center, 2) acquire
     user identifications and passwords, 3) receive, store, and maintain data
     necessary to perform enrollments and send and receive transactions to and
     from CMS, and 4) check and receive transaction status information.

                                                   /s/ Stephanie Dowell
                                                   --------------------
                                                   President and CEO
                                                   9/13/06

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