Document:

<PAGE>

                                                                     Exhibit 4.2

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                                    FORM OF

                            FMC TECHNOLOGIES, INC.

                                      and

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

                               Rights Agreement

                         Dated as of __________, 2001

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                               TABLE OF CONTENTS
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<TABLE>
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                                                                                                                           Page
                                                                                                                          Number
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<S>             <C>                                                                                                       <C>
Section 1.      Definitions................................................................................................   1

Section 2.      Appointment of Rights Agent................................................................................   6

Section 3.      Issue of Right Certificates................................................................................   7

Section 4.      Form of Right Certificates.................................................................................   9

Section 5.      Countersignature and Registration..........................................................................  10

Section 6.      Transfer, Split Up, Combination and Exchange of Right
                Certificates; Mutilated, Destroyed, Lost or Stolen Right
                Certificates...............................................................................................  11

Section 7.      Exercise of Rights; Purchase Price; Expiration Date of Rights..............................................  12

Section 8.      Cancellation and Destruction of Right Certificates.........................................................  13

Section 9.      Availability of Preferred Shares...........................................................................  14

Section 10.     Preferred Shares Record Date...............................................................................  15

Section 11.     Adjustment of Purchase Price, Number of Shares or Number of
                Rights.....................................................................................................  15

Section 12.     Certificate of Adjusted Purchase Price or Number of Shares.................................................  26

Section 13.     Consolidation, Merger or Sale or Transfer of Assets or Earning
                Power......................................................................................................  26

Section 14.     Fractional Rights and Fractional Shares....................................................................  28

Section 15.     Rights of Action...........................................................................................  30

Section 16.     Agreement of Right Holders.................................................................................  31

Section 17.     Right Certificate Holder Not Deemed a Stockholder..........................................................  31

Section 18.     Concerning the Rights Agent................................................................................  32

Section 19.     Merger or Consolidation or Change of Name of Rights Agent..................................................  33
</TABLE>
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<TABLE>
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                                                                                                                           Page
                                                                                                                          Number
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<S>             <C>                                                                                                       <C>
Section 20.     Duties of Rights Agent....................................................................................  34

Section 21.     Change of Rights Agent....................................................................................  36

Section 22.     Issuance of New Right Certificates........................................................................  38

Section 23.     Redemption................................................................................................  38

Section 24.     Exchange..................................................................................................  39

Section 25.     Notice of Certain Events..................................................................................  41

Section 26.     Notices...................................................................................................  43

Section 27.     Supplements and Amendments................................................................................  43

Section 28.     Successors................................................................................................  44

Section 29.     Benefits of this Agreement................................................................................  44

Section 30.     Severability..............................................................................................  45

Section 31.     Governing Law.............................................................................................  45

Section 32.     Counterparts..............................................................................................  45

Section 33.     Descriptive Headings......................................................................................  45

Signatures................................................................................................................  47

Exhibit A     -     Form of Certificate of Designations

Exhibit B     -     Form of Right Certificate

Exhibit C     -     Summary of Rights to Purchase Preferred Shares
</TABLE>
                                     -ii-
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          Agreement, dated as of _______________, 2001, between FMC
Technologies, Inc., a Delaware corporation (the "Company"), and
________________, as rights agent (the "Rights Agent").

          The Board of Directors of the Company has authorized and declared a
dividend of one preferred share purchase right (a "Right") for each Common Share
(as hereinafter defined) of the Company outstanding on ________, 2001 (the
"Record Date"), each Right representing the right to purchase one one-hundredth
of a Preferred Share (as hereinafter defined), upon the terms and subject to the
conditions herein set forth, and has further authorized and directed the
issuance of one Right with respect to each Common Share that shall become
outstanding between the Record Date and the earliest of the Distribution Date,
the Redemption Date and the Final Expiration Date (as such terms are hereinafter
defined).

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

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

          (a) "Acquiring Person" shall mean any Person who or which, together
with all Affiliates and Associates of such Person, shall be the Beneficial Owner
of 15% or more of the Common Shares of the Company then outstanding, but shall
not include (i) the Company, (ii) any Subsidiary of the Company, (iii) any
employee benefit plan of the Company or any Subsidiary of the Company, (iv) any
entity holding Common Shares for or pursuant to the terms of any such plan, or
(v) until the first date on which it ceases to beneficially own Common Shares
representing at least 15% of the Common Shares of the Company then outstanding,
FMC

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Corporation, a Delaware corporation. Notwithstanding the foregoing, no Person
shall become an "Acquiring Person" as the result of an acquisition of Common
Shares by the Company which, by reducing the number of Common Shares of the
Company outstanding, increases the proportionate number of Common Shares of the
Company beneficially owned by such Person to 15% or more of the Common Shares of
the Company then outstanding; provided, however, that, if a Person shall become
the Beneficial Owner of 15% or more of the Common Shares of the Company then
outstanding by reason of share purchases by the Company and shall, after such
share purchases by the Company, become the Beneficial Owner of any additional
Common Shares of the Company, then such Person shall be deemed to be an
"Acquiring Person." Notwithstanding the foregoing, if the Board of Directors of
the Company determines in good faith that a Person who would otherwise be an
"Acquiring Person," as defined pursuant to the foregoing provisions of this
paragraph (a), has become such inadvertently, and such Person divests as
promptly as practicable a sufficient number of Common Shares so that such Person
would no longer be an "Acquiring Person," as defined pursuant to the foregoing
provisions of this paragraph (a), then such Person shall not be deemed to be an
"Acquiring Person" for any purposes of this Agreement.

          (b) "Affiliate" shall have the meaning ascribed to such term in Rule
12b-2 of the General Rules and Regulations under the Exchange Act as in effect
on the date of this Agreement.

          (c) "Associate" shall have the meaning ascribed to such term in Rule
12b-2 of the General Rules and Regulations under the Exchange Act as in effect
on the date of this Agreement.

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

          (i) which such Person or any of such Person's Affiliates or Associates
     beneficially owns, directly or indirectly;

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

                                      -3-
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          (iii) which are beneficially owned, directly or indirectly, by any
     other Person with which such Person or any of such Person's Affiliates or
     Associates has any agreement, arrangement or understanding (other than
     customary agreements with and between underwriters and selling group
     members with respect to a bona fide public offering of securities) for the
     purpose of acquiring, holding, voting (except to the extent contemplated by
     the proviso to Section 1(d)(ii)(B) hereof) or disposing of any securities
     of the Company.

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

          (e) "Business Day" shall mean any day other than a Saturday, a Sunday,
or a day on which banking institutions in [State of Rights Agent] are authorized
or obligated by law or executive order to close.

          (f) "Close of Business" on any given date shall mean 5:00 P.M., [City
of Rights Agent] time, on such date; provided, however, that, if such date is
not a Business Day, it shall mean 5:00 P.M., [City of Rights Agent] time, on the
next succeeding Business Day.

          (g) "Common Shares" when used with reference to the Company shall mean
the shares of common stock, par value $.01 per share, of the Company. "Common
Shares" when used with reference to any Person other than the Company shall mean
the capital stock (or equity interest) with the greatest voting power of such
other Person or, if such other Person is a

                                      -4-
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Subsidiary of another Person, the Person or Persons which ultimately control
such first-mentioned Person.

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

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

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

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

          (l) "NASDAQ" shall mean the National Association of Securities
Dealers, Inc. Automated Quotation System.

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

          (n) "Preferred Shares" shall mean shares of Series A Junior
Participating Preferred Stock, par value $.01 per share, of the Company having
the rights and preferences set forth in the Form of Certificate of Designations
attached to this Agreement as Exhibit A.

          (o) "Purchase Price" shall have the meaning set forth in Section 4
hereof.

          (p) "Record Date" shall have the meaning set forth in the second
paragraph hereof.

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

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

          (s) "Right" shall have the meaning set forth in the second paragraph
hereof.

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

          (u) "Shares Acquisition Date" shall mean the first date of public
announcement by the Company or an Acquiring Person that an Acquiring Person has
become such.

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

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

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

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

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Agent hereby accepts such appointment. The Company may from time to time appoint
such co-Rights Agents as it may deem necessary or desirable.

          Section 3.  Issue of Right Certificates. (a) Until the earlier of (i)
the tenth day after the Shares Acquisition Date or (ii) the tenth Business Day
(or such later date as may be determined by action of the Board of Directors of
the Company prior to such time as any Person becomes an Acquiring Person) after
the date of the commencement by any Person (other than the Company, any
Subsidiary of the Company, any employee benefit plan of the Company or of any
Subsidiary of the Company or any entity holding Common Shares of the Company for
or pursuant to the terms of any such plan) of a tender or exchange offer the
consummation of which would result in any Person becoming the Beneficial Owner
of Common Shares of the Company aggregating 15% or more of the then outstanding
Common Shares of the Company (including any such date which is after the date of
this Agreement and prior to the issuance of the Rights; the earlier of such
dates being herein referred to as the "Distribution Date"), (x) the Rights will
be evidenced (subject to the provisions of Section 3(b) hereof) by the
certificates for Common Shares of the Company registered in the names of the
holders thereof (which certificates shall also be deemed to be Right
Certificates) and not by separate Right Certificates, and (y) the right to
receive Right Certificates will be transferable only in connection with the
transfer of Common Shares of the Company. As soon as practicable after the
Distribution Date, the Company will prepare and execute, the Rights Agent will
countersign, and the Company will send or cause to be sent (and the Rights Agent
will, if requested, send) by first-class, insured, postage-prepaid mail, to each
record holder of Common Shares of the Company as of the Close of Business on the
Distribution Date, at the address of such holder shown on the records of the
Company, a Right Certificate, in substantially the form of Exhibit B hereto (a
"Right Certificate"), evidencing

                                      -7-
<PAGE>

one Right for each Common Share so held. As of the Distribution Date, the Rights
will be evidenced solely by such Right Certificates.

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

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

     This certificate also evidences and entitles the holder hereof to certain
     rights as set forth in an Agreement between FMC Technologies, Inc. and
     _______________, dated as of _________, 2001, as it may be amended from
     time to time  (the "Agreement"), the terms of which are hereby incorporated
     herein by reference and a copy of which is on file at the principal
     executive offices of FMC Technologies, Inc.  Under certain circumstances,
     as set forth in the Agreement, such Rights (as defined in the Agreement)
     will be evidenced by separate

                                      -8-
<PAGE>

     certificates and will no longer be evidenced by this certificate. FMC
     Technologies, Inc. will mail to the holder of this certificate a copy of
     the Agreement without charge after receipt of a written request therefor.
     As set forth in the Agreement, Rights beneficially owned by any Person (as
     defined in the Agreement) who becomes an Acquiring Person (as defined in
     the Agreement) become null and void.

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

          Section 4.  Form of Right Certificates.  The Right Certificates (and
the forms of election to purchase Preferred Shares and of assignment to be
printed on the reverse thereof) shall be substantially the same as Exhibit B
hereto, and may have such marks of identification or designation and such
legends, summaries or endorsements printed thereon as the Company may deem
appropriate and as are not inconsistent with the provisions of this Agreement,
or as may be required to comply with any applicable law or with any applicable
rule or regulation made pursuant thereto or with any applicable rule or
regulation of any stock exchange or the National Association of Securities
Dealers, Inc., or to conform to usage. Subject to the provisions of Section 22
hereof, the Right Certificates shall entitle the holders thereof to purchase
such number of one one-hundredths of a Preferred Share as shall be set forth
therein at the price per one one-hundredth of a Preferred Share set forth
therein (the "Purchase Price"), but the number of

                                      -9-
<PAGE>

such one one-hundredths of a Preferred Share and the Purchase Price shall be
subject to adjustment as provided herein.

          Section 5.  Countersignature and Registration.  The Right Certificates
shall be executed on behalf of the Company by its Chairman of the Board, its
Chief Executive Officer, its President, any of its Vice Presidents or its
Treasurer, either manually or by facsimile signature, shall have affixed thereto
the Company's seal or a facsimile thereof, and shall be attested by the
Secretary or an Assistant Secretary of the Company, either manually or by
facsimile signature.  The Right Certificates shall be manually countersigned by
the Rights Agent and shall not be valid for any purpose unless countersigned.
In case any officer of the Company who shall have signed any of the Right
Certificates shall cease to be such officer of the Company before
countersignature by the Rights Agent and issuance and delivery by the Company,
such Right Certificates, nevertheless, may be countersigned by the Rights Agent
and issued and delivered by the Company with the same force and effect as though
the individual who signed such Right Certificates had not ceased to be such
officer of the Company; and any Right Certificate may be signed on behalf of the
Company by any individual who, at the actual date of the execution of such Right
Certificate, shall be a proper officer of the Company to sign such Right
Certificate, although at the date of the execution of this Agreement any such
individual was not such an officer.

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

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<PAGE>

          Section 6.  Transfer, Split Up, Combination and Exchange of Right
Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates. Subject
to the provisions of Section 14 hereof, at any time after the Close of Business
on the Distribution Date, and at or prior to the Close of Business on the
earlier of the Redemption Date or the Final Expiration Date, any Right
Certificate or Right Certificates (other than Right Certificates representing
Rights that have become void pursuant to Section 11(a)(ii) hereof or that have
been exchanged pursuant to Section 24 hereof) may be transferred, split up,
combined or exchanged for another Right Certificate or Right Certificates
entitling the registered holder to purchase a like number of one one-hundredths
of a Preferred Share as the Right Certificate or Right Certificates surrendered
then entitled such holder to purchase. Any registered holder desiring to
transfer, split up, combine or exchange any Right Certificate or Right
Certificates shall make such request in writing delivered to the Rights Agent,
and shall surrender the Right Certificate or Right Certificates to be
transferred, split up, combined or exchanged at the principal office of the
Rights Agent. Thereupon the Rights Agent shall countersign and deliver to the
Person entitled thereto a Right Certificate or Right Certificates, as the case
may be, as so requested. The Company may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer, split up, combination or exchange of Right Certificates.

          Upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation of
a Right Certificate, and, in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to them, and, at the Company's request,
reimbursement to the Company and the Rights Agent of all reasonable expenses
incidental thereto, and upon surrender to the Rights Agent and cancellation of
the Right

                                      -11-
<PAGE>

Certificate if mutilated, the Company will make and deliver a new Right
Certificate of like tenor to the Rights Agent for delivery to the registered
holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated.

          Section 7.  Exercise of Rights; Purchase Price; Expiration Date of
Rights. (a) The registered holder of any Right Certificate may exercise the
Rights evidenced thereby (except as otherwise provided herein), in whole or in
part, at any time after the Distribution Date, upon surrender of the Right
Certificate, with the form of election to purchase on the reverse side thereof
duly executed, to the Rights Agent at the principal office of the Rights Agent,
together with payment of the Purchase Price for each one one-hundredth of a
Preferred Share as to which the Rights are exercised, at or prior to the
earliest of (i) the Close of Business on ____________, 2011 (the "Final
Expiration Date"), (ii) the time at which the Rights are redeemed as provided in
Section 23 hereof (the "Redemption Date"), or (iii) the time at which such
Rights are exchanged as provided in Section 24 hereof.

          (b)  The Purchase Price for each one one-hundredth of a Preferred
Share purchasable pursuant to the exercise of a Right shall initially be $_____,
and shall be subject to adjustment from time to time as provided in Section 11
or 13 hereof, and shall be payable in lawful money of the United States of
America in accordance with paragraph (c) below.

          (c)  Upon receipt of a Right Certificate representing exercisable
Rights, with the form of election to purchase duly executed, accompanied by
payment of the Purchase Price for the shares to be purchased and an amount equal
to any applicable transfer tax required to be paid by the holder of such Right
Certificate in accordance with Section 9 hereof by certified check, cashier's
check or money order payable to the order of the Company, the Rights Agent

                                      -12-
<PAGE>

shall thereupon promptly (i) (A) requisition from any transfer agent of the
Preferred Shares certificates for the number of Preferred Shares to be purchased
and the Company hereby irrevocably authorizes any such transfer agent to comply
with all such requests, or (B) requisition from the depositary agent depositary
receipts representing such number of one one-hundredths of a Preferred Share as
are to be purchased (in which case certificates for the Preferred Shares
represented by such receipts shall be deposited by the transfer agent of the
Preferred Shares with such depositary agent) and the Company hereby directs such
depositary agent to comply with such request; (ii) when appropriate, requisition
from the Company the amount of cash to be paid in lieu of issuance of fractional
shares in accordance with Section 14 hereof; (iii) promptly after receipt of
such certificates or depositary receipts, cause the same to be delivered to or
upon the order of the registered holder of such Right Certificate, registered in
such name or names as may be designated by such holder; and (iv) when
appropriate, after receipt, promptly deliver such cash to or upon the order of
the registered holder of such Right Certificate.

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

          Section 8.  Cancellation and Destruction of Right Certificates.  All
Right Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall, if surrendered to the Company or to any of its
agents, be delivered to the Rights Agent for cancellation or in cancelled form,
or, if surrendered to the Rights Agent, shall be cancelled by it,

                                      -13-
<PAGE>

and no Right Certificates shall be issued in lieu thereof except as expressly
permitted by any of the provisions of this Agreement. The Company shall deliver
to the Rights Agent for cancellation and retirement, and the Rights Agent shall
so cancel and retire, any other Right Certificate purchased or acquired by the
Company otherwise than upon the exercise thereof. The Rights Agent shall deliver
all cancelled Right Certificates to the Company, or shall, at the written
request of the Company, destroy such cancelled Right Certificates, and, in such
case, shall deliver a certificate of destruction thereof to the Company.

          Section 9.  Availability of Preferred Shares.  The Company covenants
and agrees that it will cause to be reserved and kept available out of its
authorized and unissued Preferred Shares or any Preferred Shares held in its
treasury the number of Preferred Shares that will be sufficient to permit the
exercise in full of all outstanding Rights in accordance with Section 7 hereof.
The Company covenants and agrees that it will take all such action as may be
necessary to ensure that all Preferred Shares delivered upon exercise of Rights
shall, at the time of delivery of the certificates for such Preferred Shares
(subject to payment of the Purchase Price), be duly and validly authorized and
issued and fully paid and nonassessable shares.

          The Company further covenants and agrees that it will pay when due and
payable any and all federal and state transfer taxes and charges which may be
payable in respect of the issuance or delivery of the Right Certificates or of
any Preferred Shares upon the exercise of Rights.  The Company shall not,
however, be required to pay any transfer tax which may be payable in respect of
any transfer or delivery of Right Certificates to a Person other than, or the
issuance or delivery of certificates or depositary receipts for the Preferred
Shares in a name other than that of, the registered holder of the Right
Certificate evidencing Rights surrendered for exercise or to issue or to deliver
any certificates or depositary receipts for Preferred Shares upon

                                      -14-
<PAGE>

the exercise of any Rights until any such tax shall have been paid (any such tax
being payable by the holder of such Right Certificate at the time of surrender)
or until it has been established to the Company's reasonable satisfaction that
no such tax is due.

          Section 10.  Preferred Shares Record Date.  Each Person in whose name
any certificate for Preferred Shares is issued upon the exercise of Rights shall
for all purposes be deemed to have become the holder of record of the Preferred
Shares represented thereby on, and such certificate shall be dated, the date
upon which the Right Certificate evidencing such Rights was duly surrendered and
payment of the Purchase Price (and any applicable transfer taxes) was made;
provided, however, that, if the date of such surrender and payment is a date
upon which the Preferred Shares transfer books of the Company are closed, such
Person shall be deemed to have become the record holder of such shares on, and
such certificate shall be dated, the next succeeding Business Day on which the
Preferred Shares transfer books of the Company are open.  Prior to the exercise
of the Rights evidenced thereby, the holder of a Right Certificate shall not be
entitled to any rights of a holder of Preferred Shares for which the Rights
shall be exercisable, including, without limitation, the right to vote, to
receive dividends or other distributions or to exercise any preemptive rights,
and shall not be entitled to receive any notice of any proceedings of the
Company, except as provided herein.

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

                                      -15-
<PAGE>

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

          (ii)  Subject to Section 24 hereof, in the event any Person becomes an
Acquiring Person, each holder of a Right shall thereafter have a right to
receive, upon exercise thereof at a price equal to the then current Purchase
Price multiplied by the number of one one-hundredths of a Preferred Share for
which a Right is then exercisable, in accordance with the terms of this
Agreement and in lieu of Preferred Shares, such number of Common Shares of the
Company as shall equal the result obtained by (A) multiplying the then current
Purchase Price by

                                      -16-
<PAGE>

the number of one one-hundredths of a Preferred Share for which a Right is then
exercisable and dividing that product by (B) 50% of the then current per share
market price of the Common Shares of the Company (determined pursuant to Section
11(d) hereof) on the date of the occurrence of such event. In the event that any
Person shall become an Acquiring Person and the Rights shall then be
outstanding, the Company shall not take any action which would eliminate or
diminish the benefits intended to be afforded by the Rights.

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

          (iii)  In the event that there shall not be sufficient Common Shares
issued but not outstanding or authorized but unissued to permit the exercise in
full of the Rights in accordance with subparagraph (ii) above, the Company shall
take all such action as may be necessary to authorize additional Common Shares
for issuance upon exercise of the Rights. In the event the Company shall, after
good faith effort, be unable to take all such action as may be necessary to
authorize such additional Common Shares, the Company shall substitute, for each

                                      -17-
<PAGE>

Common Share that would otherwise be issuable upon exercise of a Right, a number
of Preferred Shares or fraction thereof such that the current per share market
price of one Preferred Share multiplied by such number or fraction is equal to
the current per share market price of one Common Share as of the date of
issuance of such Preferred Shares or fraction thereof.

          (b)  In case the Company shall fix a record date for the issuance of
rights, options or warrants to all holders of Preferred Shares entitling them
(for a period expiring within 45 calendar days after such record date) to
subscribe for or purchase Preferred Shares (or shares having the same rights,
privileges and preferences as the Preferred Shares ("equivalent preferred
shares")) or securities convertible into Preferred Shares or equivalent
preferred shares at a price per Preferred Share or equivalent preferred share
(or having a conversion price per share, if a security convertible into
Preferred Shares or equivalent preferred shares) less than the then current per
share market price of the Preferred Shares (as defined in Section 11(d)) on such
record date, the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such
record date by a fraction, the numerator of which shall be the number of
Preferred Shares outstanding on such record date plus the number of Preferred
Shares which the aggregate offering price of the total number of Preferred
Shares and/or equivalent preferred shares so to be offered (and/or the aggregate
initial conversion price of the convertible securities so to be offered) would
purchase at such current market price and the denominator of which shall be the
number of Preferred Shares outstanding on such record date plus the number of
additional Preferred Shares and/or equivalent preferred shares to be offered for
subscription or purchase (or into which the convertible securities so to be
offered are initially convertible); provided, however, that in no event shall
the consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the shares of capital

                                      -18-
<PAGE>

stock of the Company issuable upon exercise of one Right. In case such
subscription price may be paid in a consideration part or all of which shall be
in a form other than cash, the value of such consideration shall be as
determined in good faith by the Board of Directors of the Company, whose
determination shall be described in a statement filed with the Rights Agent and
shall be binding on the Rights Agent and holders of the Rights. Preferred Shares
owned by or held for the account of the Company shall not be deemed outstanding
for the purpose of any such computation. Such adjustment shall be made
successively whenever such a record date is fixed; and, in the event that such
rights, options or warrants are not so issued, the Purchase Price shall be
adjusted to be the Purchase Price which would then be in effect if such record
date had not been fixed.

          (c)  In case the Company shall fix a record date for the making of a
distribution to all holders of the Preferred Shares (including any such
distribution made in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation) of evidences of indebtedness
or assets (other than a regular quarterly cash dividend or a dividend payable in
Preferred Shares) or subscription rights or warrants (excluding those referred
to in Section 11(b) hereof), the Purchase Price to be in effect after such
record date shall be determined by multiplying the Purchase Price in effect
immediately prior to such record date by a fraction, the numerator of which
shall be the then-current per share market price of the Preferred Shares on such
record date, less the fair market value (as determined in good faith by the
Board of Directors of the Company, whose determination shall be described in a
statement filed with the Rights Agent and shall be binding on the Rights Agent
and holders of the Rights) of the portion of the assets or evidences of
indebtedness so to be distributed or of such subscription rights or warrants
applicable to one Preferred Share and the denominator of which

                                      -19-
<PAGE>

shall be such then-current per share market price of the Preferred Shares on
such record date; provided, however, that in no event shall the consideration to
be paid upon the exercise of one Right be less than the aggregate par value of
the shares of capital stock of the Company to be issued upon exercise of one
Right. Such adjustments shall be made successively whenever such a record date
is fixed; and, in the event that such distribution is not so made, the Purchase
Price shall again be adjusted to be the Purchase Price which would then be in
effect if such record date had not been fixed.

          (d)  (i)  For the purpose of any computation hereunder, the "current
per share market price" of any security (a "Security" for the purpose of this
Section 11(d)(i)) on any date shall be deemed to be the average of the daily
closing prices per share of such Security for the 30 consecutive Trading Days
immediately prior to such date; provided, however, that, in the event that the
current per share market price of the Security is determined during a period
following the announcement by the issuer of such Security of (A) a dividend or
distribution on such Security payable in shares of such Security or Securities
convertible into such shares, or (B) any subdivision, combination or
reclassification of such Security and prior to the expiration of 30 Trading Days
after the ex-dividend date for such dividend or distribution, or the record date
for such subdivision, combination or reclassification, then, and in each such
case, the current per share market price shall be appropriately adjusted to
reflect the current market price per share equivalent of such Security. The
closing price for each day shall be the last sale price, regular way, reported
at or prior to 4:00 P.M. Eastern time or, in case no such sale takes place on
such day, the average of the bid and asked prices, regular way, reported as of
4:00 P.M. Eastern time, in either case, as reported in the principal
consolidated transaction reporting system with respect to securities listed or
admitted to trading on the New York Stock Exchange or, if the Security is

                                      -20-
<PAGE>

not listed or admitted to trading on the New York Stock Exchange, as reported in
the principal consolidated transaction reporting system with respect to
securities listed on the principal national securities exchange on which the
Security is listed or admitted to trading or, if the Security is not listed or
admitted to trading on any national securities exchange, the last quoted price
reported at or prior to 4:00 P.M. Eastern time or, if not so quoted, the average
of the high bid and low asked prices in the over-the-counter market, as reported
as of 4:00 P.M. Eastern time by NASDAQ or such other system then in use, or, if
on any such date the Security is not quoted by any such organization, the
average of the closing bid and asked prices as furnished by a professional
market maker making a market in the Security selected by the Board of Directors
of the Company. The term "Trading Day" shall mean a day on which the principal
national securities exchange on which the Security is listed or admitted to
trading is open for the transaction of business, or, if the Security is not
listed or admitted to trading on any national securities exchange, a Business
Day.

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

                                      -21-
<PAGE>

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

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

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

                                      -22-
<PAGE>

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

          (i)  The Company may elect, on or after the date of any adjustment of
the Purchase Price, to adjust the number of Rights in substitution for any
adjustment in the number of one one-hundredths of a Preferred Share purchasable
upon the exercise of a Right. Each of the Rights outstanding after such
adjustment of the number of Rights shall be exercisable for the number of one
one-hundredths of a Preferred Share for which a Right was exercisable
immediately prior to such adjustment. Each Right held of record prior to such
adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one ten-thousandth) obtained by dividing the Purchase
Price in effect immediately prior to adjustment of the Purchase Price by the
Purchase Price in effect immediately after adjustment of the Purchase Price. The
Company shall make a public announcement of its election to adjust the number of
Rights, indicating the record date for the adjustment, and, if known at the
time, the amount of the adjustment to be made. This record date may be the date
on which the Purchase Price is adjusted or any day thereafter, but, if the Right
Certificates have been issued, shall be at

                                      -23-
<PAGE>

least 10 days later than the date of the public announcement. If Right
Certificates have been issued, upon each adjustment of the number of Rights
pursuant to this Section 11(i), the Company shall, as promptly as practicable,
cause to be distributed to holders of record of Right Certificates on such
record date Right Certificates evidencing, subject to Section 14 hereof, the
additional Rights to which such holders shall be entitled as a result of such
adjustment, or, at the option of the Company, shall cause to be distributed to
such holders of record in substitution and replacement for the Right
Certificates held by such holders prior to the date of adjustment, and upon
surrender thereof, if required by the Company, new Right Certificates evidencing
all the Rights to which such holders shall be entitled after such adjustment.
Right Certificates so to be distributed shall be issued, executed and
countersigned in the manner provided for herein, and shall be registered in the
names of the holders of record of Right Certificates on the record date
specified in the public announcement.

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

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

                                      -24-
<PAGE>

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

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

          (n)  In the event that, at any time after the date of this Agreement
and prior to the Distribution Date, the Company shall (i) declare or pay any
dividend on the Common Shares payable in Common Shares, or (ii) effect a
subdivision, combination or consolidation of the Common Shares (by
reclassification or otherwise than by payment of dividends in Common Shares)
into a greater or lesser number of Common Shares, then, in any such case, (A)
the

                                      -25-
<PAGE>

number of one one-hundredths of a Preferred Share purchasable after such event
upon proper exercise of each Right shall be determined by multiplying the number
of one one-hundredths of a Preferred Share so purchasable immediately prior to
such event by a fraction, the numerator of which is the number of Common Shares
outstanding immediately before such event and the denominator of which is the
number of Common Shares outstanding immediately after such event, and (B) each
Common Share outstanding immediately after such event shall have issued with
respect to it that number of Rights which each Common Share outstanding
immediately prior to such event had issued with respect to it. The adjustments
provided for in this Section 11(n) shall be made successively whenever such a
dividend is declared or paid or such a subdivision, combination or consolidation
is effected.

          Section 12.  Certificate of Adjusted Purchase Price or Number of
Shares. Whenever an adjustment is made as provided in Section 11 or 13 hereof,
the Company shall promptly (a) prepare a certificate setting forth such
adjustment and a brief statement of the facts accounting for such adjustment,
(b) file with the Rights Agent and with each transfer agent for the Common
Shares or the Preferred Shares and the Securities and Exchange Commission a copy
of such certificate and (c) if such adjustment occurs at any time after the
Distribution Date, mail a brief summary thereof to each holder of a Right
Certificate in accordance with Section 25 hereof.

          Section 13.  Consolidation, Merger or Sale or Transfer of Assets or
Earning Power.  In the event, directly or indirectly, at any time after a Person
has become an Acquiring Person, (a) the Company shall consolidate with, or merge
with and into, any other Person, (b) any Person shall consolidate with the
Company, or merge with and into the Company and the Company shall be the
continuing or surviving corporation of such merger and, in connection

                                      -26-
<PAGE>

with such merger, all or part of the Common Shares shall be changed into or
exchanged for stock or other securities of any other Person (or the Company) or
cash or any other property, or (c) the Company shall sell or otherwise transfer
(or one or more of its Subsidiaries shall sell or otherwise transfer), in one or
more transactions, assets or earning power aggregating 50% or more of the assets
or earning power of the Company and its Subsidiaries (taken as a whole) to any
other Person other than the Company or one or more of its wholly-owned
Subsidiaries, then, and in each such case, proper provision shall be made so
that (i) each holder of a Right (except as otherwise provided herein) shall
thereafter have the right to receive, upon the exercise thereof at a price equal
to the then current Purchase Price multiplied by the number of one one-
hundredths of a Preferred Share for which a Right is then exercisable, in
accordance with the terms of this Agreement and in lieu of Preferred Shares,
such number of Common Shares of such other Person (including the Company as
successor thereto or as the surviving corporation) as shall equal the result
obtained by (A) multiplying the then current Purchase Price by the number of one
one-hundredths of a Preferred Share for which a Right is then exercisable and
dividing that product by (B) 50% of the then current per share market price of
the Common Shares of such other Person (determined pursuant to Section 11(d)
hereof) on the date of consummation of such consolidation, merger, sale or
transfer; (ii) the issuer of such Common Shares shall thereafter be liable for,
and shall assume, by virtue of such consolidation, merger, sale or transfer, all
the obligations and duties of the Company pursuant to this Agreement; (iii) the
term "Company" shall thereafter be deemed to refer to such issuer; and (iv) such
issuer shall take such steps (including, but not limited to, the reservation of
a sufficient number of its Common Shares in accordance with Section 9 hereof) in
connection with such consummation as may be necessary to assure that the
provisions hereof shall thereafter be applicable, as nearly as reasonably may
be, in

                                      -27-
<PAGE>

relation to the Common Shares of the Company thereafter deliverable upon the
exercise of the Rights. The Company shall not consummate any such consolidation,
merger, sale or transfer unless, prior thereto, the Company and such issuer
shall have executed and delivered to the Rights Agent a supplemental agreement
so providing. The Company shall not enter into any transaction of the kind
referred to in this Section 13 if at the time of such transaction there are any
rights, warrants, instruments or securities outstanding or any agreements or
arrangements which, as a result of the consummation of such transaction, would
eliminate or substantially diminish the benefits intended to be afforded by the
Rights. The provisions of this Section 13 shall similarly apply to successive
mergers or consolidations or sales or other transfers.

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

                                      -28-
<PAGE>

trading or, if the Rights are not listed or admitted to trading on any national
securities exchange, the last quoted price or, if not so quoted, the average of
the high bid and low asked prices in the over-the-counter market, as reported by
NASDAQ or such other system then in use or, if on any such date the Rights are
not quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional market maker making a market in the Rights
selected by the Board of Directors of the Company. If on any such date no such
market maker is making a market in the Rights, the fair value of the Rights on
such date as determined in good faith by the Board of Directors of the Company
shall be used.

          (b)  The Company shall not be required to issue fractions of Preferred
Shares (other than fractions which are integral multiples of one one-hundredth
of a Preferred Share) upon exercise of the Rights or to distribute certificates
which evidence fractional Preferred Shares (other than fractions which are
integral multiples of one one-hundredth of a Preferred Share). Fractions of
Preferred Shares in integral multiples of one one-hundredth of a Preferred Share
may, at the election of the Company, be evidenced by depositary receipts,
pursuant to an appropriate agreement between the Company and a depositary
selected by it; provided that such agreement shall provide that the holders of
such depositary receipts shall have all the rights, privileges and preferences
to which they are entitled as beneficial owners of the Preferred Shares
represented by such depositary receipts. In lieu of fractional Preferred Shares
that are not integral multiples of one one-hundredth of a Preferred Share, the
Company shall pay to the registered holders of Right Certificates at the time
such Rights are exercised as herein provided an amount in cash equal to the same
fraction of the current market value of one Preferred Share. For the purposes of
this Section 14(b), the current market value of a Preferred Share shall be the

                                      -29-
<PAGE>

closing price of a Preferred Share (as determined pursuant to the second
sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to
the date of such exercise.

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

          Section 15.  Rights of Action.  All rights of action in respect of
this Agreement, excepting the rights of action given to the Rights Agent under
Section 18 hereof, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of the
Common Shares); and any registered holder of any Right Certificate (or, prior to
the Distribution Date, of the Common Shares), without the consent of the Rights
Agent or of the holder of any other Right Certificate (or, prior to the
Distribution Date, of the Common Shares), may, in such holder's own behalf and
for such holder's own benefit, enforce, and may institute and maintain any suit,
action or proceeding against the Company to enforce, or otherwise act in respect
of, such holder's right to exercise the Rights evidenced by such Right
Certificate in the manner provided in such Right Certificate and in this
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.

                                      -30-
<PAGE>

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

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

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

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

          Section 17.  Right Certificate Holder Not Deemed a Stockholder.  No
holder, as such, of any Right Certificate shall be entitled to vote, receive
dividends or be deemed for any purpose the holder of the Preferred Shares or any
other securities of the Company which may at any time be issuable on the
exercise of the Rights represented thereby, nor shall anything contained herein
or in any Right Certificate be construed to confer upon the holder of any Right
Certificate, as such, any of the rights of a stockholder of the Company or any
right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to

                                      -31-
<PAGE>

give or withhold consent to any corporate action, or to receive notice of
meetings or other actions affecting stockholders (except as provided in Section
25 hereof), or to receive dividends or subscription rights, or otherwise, until
the Right or Rights evidenced by such Right Certificate shall have been
exercised in accordance with the provisions hereof.

          Section 18.  Concerning the Rights Agent.  The Company agrees to pay
to the Rights Agent reasonable compensation for all services rendered by it
hereunder, and, from time to time, on demand of the Rights Agent, its reasonable
expenses and counsel fees and other disbursements incurred in the administration
and execution of this Agreement and the exercise and performance of its duties
hereunder. The Company also agrees to indemnify the Rights Agent for, and to
hold it harmless against, any loss, liability, or expense incurred without
negligence, bad faith or willful misconduct on the part of the Rights Agent, for
anything done or omitted by the Rights Agent in connection with the acceptance
and administration of this Agreement, including the costs and expenses of
defending against any claim of liability in the premises.

          The Rights Agent shall be protected and shall incur no liability for,
or in respect of any action taken, suffered or omitted by it in connection with,
its administration of this Agreement in reliance upon any Right Certificate or
certificate for the Preferred Shares or Common Shares or for other securities of
the Company, instrument of assignment or  transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, consent, certificate,
statement, or other paper or document believed by it to be genuine and to be
signed, executed and, where necessary, verified or acknowledged, by the proper
person or persons, or otherwise upon the advice of counsel as set forth in
Section 20 hereof.

                                      -32-
<PAGE>

          Section 19.  Merger or Consolidation or Change of Name of Rights
Agent. Any corporation into which the Rights Agent or any successor Rights Agent
may be merged or with which it may be consolidated, or any corporation resulting
from any merger or consolidation to which the Rights Agent or any successor
Rights Agent shall be a party, or any corporation succeeding to the stock
transfer or corporate trust powers of the Rights Agent or any successor Rights
Agent, shall be the successor to the Rights Agent under this Agreement without
the execution or filing of any paper or any further act on the part of any of
the parties hereto; provided that such corporation would be eligible for
appointment as a successor Rights Agent under the provisions of Section 21
hereof. In case at the time such successor Rights Agent shall succeed to the
agency created by this Agreement, any of the Right Certificates shall have been
countersigned but not delivered, any such successor Rights Agent may adopt the
countersignature of the predecessor Rights Agent and deliver such Right
Certificates so countersigned; and, in case at that time any of the Right
Certificates shall not have been countersigned, any successor Rights Agent may
countersign such Right Certificates either in the name of the predecessor Rights
Agent or in the name of the successor Rights Agent; and, in all such cases, such
Right Certificates shall have the full force provided in the Right Certificates
and in this Agreement.

          In case at any time the name of the Rights Agent shall be changed and
at such time any of the Right Certificates shall have been countersigned but not
delivered, the Rights Agent may adopt the countersignature under its prior name
and deliver Right Certificates so countersigned; and, in case at that time any
of the Right Certificates shall not have been countersigned, the Rights Agent
may countersign such Right Certificates either in its prior name

                                      -33-
<PAGE>

or in its changed name; and, in all such cases, such Right Certificates shall
have the full force provided in the Right Certificates and in this Agreement.

          Section 20.  Duties of Rights Agent.  The Rights Agent undertakes the
duties and obligations imposed by this Agreement upon the following terms and
conditions, by all of which the Company and the holders of Right Certificates,
by their acceptance thereof, shall be bound:

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

          (b)  Whenever in the performance of its duties under this Agreement
the Rights Agent shall deem it necessary or desirable that any fact or matter be
proved or established by the Company prior to taking or suffering any action
hereunder, such fact or matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by any one of the Chairman of the Board, the
Chief Executive Officer, the President, any Vice President, the Treasurer or the
Secretary of the Company and delivered to the Rights Agent; and such certificate
shall be full authorization to the Rights Agent for any action taken or suffered
in good faith by it under the provisions of this Agreement in reliance upon such
certificate.

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

                                      -34-
<PAGE>

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

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

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

                                      -35-
<PAGE>

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

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

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

          Section 21.  Change of Rights Agent.  The Rights Agent or any
successor Rights Agent may resign and be discharged from its duties under this
Agreement upon 30 days' notice in writing mailed to the Company and to each
transfer agent of the Common Shares or

                                      -36-
<PAGE>

Preferred Shares by registered or certified mail, and to the holders of the
Right Certificates by first-class mail. The Company may remove the Rights Agent
or any successor Rights Agent upon 30 days' notice in writing, mailed to the
Rights Agent or successor Rights Agent, as the case may be, and to each transfer
agent of the Common Shares or Preferred Shares by registered or certified mail,
and to the holders of the Right Certificates by first-class mail. If the Rights
Agent shall resign or be removed or shall otherwise become incapable of acting,
the Company shall appoint a successor to the Rights Agent. If the Company shall
fail to make such appointment within a period of 30 days after giving notice of
such removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the holder of a
Right Certificate (which holder shall, with such notice, submit such holder's
Right Certificate for inspection by the Company), then the registered holder of
any Right Certificate may apply to any court of competent jurisdiction for the
appointment of a new Rights Agent. Any successor Rights Agent, whether appointed
by the Company or by such a court, shall be a corporation organized and doing
business under the laws of the United States or of the State of [State of Rights
Agent] (or of any other state of the United States so long as such corporation
is authorized to do business as a banking institution in the State of [State of
Rights Agent]), in good standing, having an office in the State of [State of
Rights Agent], which is authorized under such laws to exercise corporate trust
or stock transfer powers and is subject to supervision or examination by federal
or state authority and which has at the time of its appointment as Rights Agent
a combined capital and surplus of at least $50 million. After appointment, the
successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and transfer
to the successor Rights Agent any

                                      -37-
<PAGE>

property at the time held by it hereunder, and execute and deliver any further
assurance, conveyance, act or deed necessary for the purpose. Not later than the
effective date of any such appointment, the Company shall file notice thereof in
writing with the predecessor Rights Agent and each transfer agent of the Common
Shares or Preferred Shares, and mail a notice thereof in writing to the
registered holders of the Right Certificates. Failure to give any notice
provided for in this Section 21, however, or any defect therein, shall not
affect the legality or validity of the resignation or removal of the Rights
Agent or the appointment of the successor Rights Agent, as the case may be.

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

          Section 23.  Redemption. (a) The Board of Directors of the Company
may, at its option, at any time prior to such time as any Person becomes an
Acquiring Person, redeem all but not less than all the then outstanding Rights
at a redemption price of $.01 per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date
hereof (such redemption price being hereinafter referred to as the "Redemption
Price"). The redemption of the Rights by the Board of Directors of the Company
may be made effective at such time, on such basis and with such conditions as
the Board of Directors of the Company, in its sole discretion, may establish.

                                      -38-
<PAGE>

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

          Section 24.  Exchange. (a) The Board of Directors of the Company may,
at its option, at any time after any Person becomes an Acquiring Person,
exchange all or part of the then outstanding and exercisable Rights (which shall
not include Rights that have become void pursuant to the provisions of Section
11(a)(ii) hereof) for Common Shares at an exchange ratio of one Common Share per
Right, appropriately adjusted to reflect any adjustment in the number of Rights
pursuant to Section 11(i) (such exchange ratio being hereinafter referred to as
the

                                      -39-
<PAGE>

"Exchange Ratio"). Notwithstanding the foregoing, the Board of Directors of the
Company shall not be empowered to effect such exchange at any time after any
Person (other than the Company, any Subsidiary of the Company, any employee
benefit plan of the Company or any such Subsidiary, or any entity holding Common
Shares for or pursuant to the terms of any such plan), together with all
Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or
more of the Common Shares then outstanding.

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

          (c)  In the event that there shall not be sufficient Common Shares
issued but not outstanding or authorized but unissued to permit any exchange of
Rights as contemplated in

                                      -40-
<PAGE>

accordance with this Section 24, the Company shall take all such action as may
be necessary to authorize additional Common Shares for issuance upon exchange of
the Rights. In the event the Company shall, after good faith effort, be unable
to take all such action as may be necessary to authorize such additional Common
Shares, the Company shall substitute, for each Common Share that would otherwise
be issuable upon exchange of a Right, a number of Preferred Shares or fraction
thereof such that the current per share market price of one Preferred Share
multiplied by such number or fraction is equal to the current per share market
price of one Common Share as of the date of issuance of such Preferred Shares or
fraction thereof.

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

          Section 25.  Notice of Certain Events. (a) In case the Company shall,
at any time after the Distribution Date, propose (i) to pay any dividend payable
in stock of any class to the holders of the Preferred Shares or to make any
other distribution to the holders of the Preferred Shares (other than a regular
quarterly cash dividend), (ii) to offer to the holders of the Preferred Shares
rights or warrants to subscribe for or to purchase any additional Preferred
Shares or shares of stock of any class or any other securities, rights or
options, (iii) to effect any

                                      -41-
<PAGE>

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

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

                                      -42-
<PAGE>

describe such event and the consequences of such event to holders of Rights
under Section 11(a)(ii) hereof.

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

          FMC Technologies, Inc.
          200 East Randolph Drive
          Chicago, Illinois 60601
          Attention: Corporate Secretary

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

          [Name of Rights Agent]
          ----------------------
          [Address of Rights Agent]
          Attention:

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

          Section 27.  Supplements and Amendments.  The Company may from time to
time supplement or amend this Agreement without the approval of any holders of
Right Certificates in order to cure any ambiguity, to correct or supplement any
provision contained

                                      -43-
<PAGE>

herein which may be defective or inconsistent with any other provisions herein,
or to make any other provisions with respect to the Rights which the Company may
deem necessary or desirable, any such supplement or amendment to be evidenced by
a writing signed by the Company and the Rights Agent; provided, however, that,
from and after such time as any Person becomes an Acquiring Person, this
Agreement shall not be amended in any manner which would adversely affect the
interests of the holders of Rights. Without limiting the foregoing, the Company
may at any time prior to such time as any Person becomes an Acquiring Person
amend this Agreement to lower the thresholds set forth in Section 1(a) and 3(a)
hereof to not less than 10% (the "Reduced Threshold"); provided, however, that
no Person who beneficially owns a number of Common Shares equal to or greater
than the Reduced Threshold shall become an Acquiring Person unless such Person
shall, after the public announcement of the Reduced Threshold, increase its
beneficial ownership of the then outstanding Common Shares (other than as a
result of an acquisition of Common Shares by the Company) to an amount equal to
or greater than the greater of (x) the Reduced Threshold or (y) the sum of (i)
the lowest beneficial ownership of such Person as a percentage of the
outstanding Common Shares as of any date on or after the date of the public
announcement of such Reduced Threshold plus (ii) .001%.

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

          Section 29.  Benefits of this Agreement.  Nothing in this Agreement
shall be construed to give to any Person other than the Company, the Rights
Agent and the registered holders of the Right Certificates (and, prior to the
Distribution Date, the Common Shares) any legal or equitable right, remedy or
claim under this Agreement; but this Agreement shall be for

                                      -44-
<PAGE>

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

          Section 30.  Severability.  If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

          Section 31.  Governing Law.  This Agreement and each Right Certificate
issued hereunder shall be deemed to be a contract made under the laws of the
State of Delaware and for all purposes shall be governed by and construed in
accordance with the laws of such state applicable to contracts to be made and
performed entirely within such state.

          Section 32.  Counterparts.  This Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument.

          Section 33.  Descriptive Headings.  Descriptive headings of the
several Sections of this Agreement are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions
hereof.

                                      -45-
<PAGE>

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

Attest:                             FMC TECHNOLOGIES, INC.

By _______________________________  By ____________________________________
   Name:                               Name:
   Title:                              Title

Attest:                             [Rights Agent]

By _______________________________  By ___________________________________
   Name:                               Name:
   Title:                              Title

                                      -46-
<PAGE>

                                                                       Exhibit A
                                                                       ---------
                                     FORM

                                      of

                          CERTIFICATE OF DESIGNATIONS

                                      of

                 SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

                                      of

                            FMC TECHNOLOGIES, INC.

                        (Pursuant to Section 151 of the

                       Delaware General Corporation Law)

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

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

          RESOLVED, that pursuant to the authority granted to and vested in the
Board of Directors of this Corporation (hereinafter called the "Board of
Directors" or the "Board") in accordance with the provisions of the Certificate
of Incorporation, the Board of Directors hereby creates a series of Preferred
Stock, par value $.01 per share, of the Corporation (the "Preferred Stock"), and
hereby states the designation and number of shares, and fixes the relative
rights, preferences, and limitations thereof as follows:

          Series A Junior Participating Preferred Stock:

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

          Section 2. Dividends and Distributions.

          (A) Subject to the rights of the holders of any shares of any series
     of Preferred Stock (or any similar stock) ranking prior and superior to the
     Series A Preferred Stock

                                      A-1
<PAGE>

     with respect to dividends, the holders of shares of Series A Preferred
     Stock, in preference to the holders of Common Stock, par value $.01 per
     share (the "Common Stock"), of the Corporation, and of any other junior
     stock, shall be entitled to receive, when, as and if declared by the Board
     of Directors out of funds legally available for the purpose, quarterly
     dividends payable in cash on the first day of March, June, September and
     December in each year (each such date being referred to herein as a
     "Quarterly Dividend Payment Date"), commencing on the first Quarterly
     Dividend Payment Date after the first issuance of a share or fraction of a
     share of Series A Preferred Stock, in an amount per share (rounded to the
     nearest cent) equal to the greater of (a) $1 or (b) subject to the
     provision for adjustment hereinafter set forth, 100 times the aggregate per
     share amount of all cash dividends, and 100 times the aggregate per share
     amount (payable in kind) of all non-cash dividends or other distributions,
     other than a dividend payable in shares of Common Stock or a subdivision of
     the outstanding shares of Common Stock (by reclassification or otherwise),
     declared on the Common Stock since the immediately preceding Quarterly
     Dividend Payment Date or, with respect to the first Quarterly Dividend
     Payment Date, since the first issuance of any share or fraction of a share
     of Series A Preferred Stock. In the event the Corporation shall at any time
     declare or pay any dividend on the Common Stock payable in shares of Common
     Stock, or effect a subdivision or combination or consolidation of the
     outstanding shares of Common Stock (by reclassification or otherwise than
     by payment of a dividend in shares of Common Stock) into a greater or
     lesser number of shares of Common Stock, then in each such case the amount
     to which holders of shares of Series A Preferred Stock were entitled
     immediately prior to such event under clause (b) of the preceding sentence
     shall be adjusted by multiplying such amount by a fraction, the numerator
     of which is the number of shares of Common Stock outstanding immediately
     after such event and the denominator of which is the number of shares of
     Common Stock that were outstanding immediately prior to such event.

          (B) The Corporation shall declare a dividend or distribution on the
     Series A Preferred Stock as provided in paragraph (A) of this Section
     immediately after it declares a dividend or distribution on the Common
     Stock (other than a dividend payable in shares of Common Stock); provided
     that, in the event no dividend or distribution shall have been declared on
     the Common Stock during the period between any Quarterly Dividend Payment
     Date and the next subsequent Quarterly Dividend Payment Date, a dividend of
     $1 per share on the Series A Preferred Stock shall nevertheless be payable
     on such subsequent Quarterly Dividend Payment Date.

          (C) Dividends shall begin to accrue and be cumulative on outstanding
     shares of Series A Preferred Stock from the Quarterly Dividend Payment Date
     next preceding the date of issue of such shares, unless the date of issue
     of such shares is prior to the record date for the first Quarterly Dividend
     Payment Date, in which case dividends on such shares shall begin to accrue
     from the date of issue of such shares, or unless the date of issue is a
     Quarterly Dividend Payment Date or is a date after the record date for the
     determination of holders of shares of Series A Preferred Stock entitled to
     receive a quarterly dividend and before such Quarterly Dividend Payment
     Date, in either of which events such dividends shall begin to accrue and be
     cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid
     dividends shall not bear interest.

                                      A-2
<PAGE>

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

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

          (A) Subject to the provision for adjustment hereinafter set forth,
     each share of Series A Preferred Stock shall entitle the holder thereof to
     100 votes on all matters submitted to a vote of the stockholders of the
     Corporation. In the event the Corporation shall at any time declare or pay
     any dividend on the Common Stock payable in shares of Common Stock, or
     effect a subdivision or combination or consolidation of the outstanding
     shares of Common Stock (by reclassification or otherwise than by payment of
     a dividend in shares of Common Stock) into a greater or lesser number of
     shares of Common Stock, then in each such case the number of votes per
     share to which holders of shares of Series A Preferred Stock were entitled
     immediately prior to such event shall be adjusted by multiplying such
     number by a fraction, the numerator of which is the number of shares of
     Common Stock outstanding immediately after such event and the denominator
     of which is the number of shares of Common Stock that were outstanding
     immediately prior to such event.

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

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

          Section 4. Certain Restrictions.

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

                                      A-3
<PAGE>

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

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

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

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

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

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

          Section 6. Liquidation, Dissolution or Winding Up. Upon any
liquidation, dissolution or winding up of the Corporation, no distribution shall
be made (1) to the holders of shares of stock ranking junior (either as to
dividends or upon liquidation, dissolution or winding up) to the Series A
Preferred Stock unless, prior thereto, the holders of shares of Series A
Preferred Stock shall have received $100 per share, plus an amount equal to
accrued and unpaid dividends and distributions thereon, whether or not declared,
to the date of such payment,

                                      A-4
<PAGE>

provided that the holders of shares of Series A Preferred Stock shall be
entitled to receive an aggregate amount per share, subject to the provision for
adjustment hereinafter set forth, equal to 100 times the aggregate amount to be
distributed per share to holders of shares of Common Stock, or (2) to the
holders of shares of stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series A Preferred Stock,
except distributions made ratably on the Series A Preferred Stock and all such
parity stock in proportion to the total amounts to which the holders of all such
shares are entitled upon such liquidation, dissolution or winding up. In the
event the Corporation shall at any time declare or pay any dividend on the
Common Stock payable in shares of Common Stock, or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the aggregate amount to which holders of shares of Series A Preferred
Stock were entitled immediately prior to such event under the proviso in clause
(1) of the preceding sentence shall be adjusted by multiplying such amount by a
fraction the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to such
event.

          Section 7. Consolidation, Merger, etc. In case the Corporation shall
enter into any consolidation, merger, combination or other transaction in which
the shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case each share of
Series A Preferred Stock shall at the same time be similarly exchanged or
changed into an amount per share, subject to the provision for adjustment
hereinafter set forth, equal to 100 times the aggregate amount of stock,
securities, cash and/or any other property (payable in kind), as the case may
be, into which or for which each share of Common Stock is changed or exchanged.
In the event the Corporation shall at any time declare or pay any dividend on
the Common Stock payable in shares of Common Stock, or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the amount set forth in the preceding sentence with respect to the
exchange or change of shares of Series A Preferred Stock shall be adjusted by
multiplying such amount by a fraction, the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

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

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

          Section 10. Amendment. The Certificate of Incorporation of the
Corporation shall not be amended in any manner which would materially alter or
change the powers, preferences or special rights of the Series A Preferred Stock
so as to affect them adversely

                                      A-5
<PAGE>

without the affirmative vote of the holders of at least two-thirds of the
outstanding shares of Series A Preferred Stock, voting together as a single
class.

                                      A-6
<PAGE>

          IN WITNESS WHEREOF, this Certificate of Designations is executed on
behalf of the Corporation by its Chairman of the Board and attested by its
Secretary this _____ day of ___________, 2001.

                                    _______________________________
                                          Chairman of the Board

Attest:

_____________________
Secretary

                                      A-7
<PAGE>

                                                                       Exhibit B
                                                                       ---------
                           Form of Right Certificate

Certificate No. R-                                       _____ Rights

          NOT EXERCISABLE AFTER _________, 2011 OR EARLIER IF
          REDEMPTION OR EXCHANGE OCCURS.  THE RIGHTS ARE SUB-
          JECT TO REDEMPTION AT $.01 PER RIGHT AND TO EXCHANGE
          ON THE TERMS SET FORTH IN THE AGREEMENT.

                               Right Certificate

                            FMC TECHNOLOGIES, INC.

          This certifies that ____________________, or registered assigns, is
the registered owner of the number of Rights set forth above, each of which
entitles the owner thereof, subject to the terms, provisions and conditions of
the Agreement, dated as of __________, 2001 (the "Agreement"), between FMC
Technologies, Inc., a Delaware corporation (the "Company"), and
____________________ (the "Rights Agent"), to purchase from the Company at any
time after the Distribution Date (as such term is defined in the Agreement) and
prior to 5:00 P.M., [City of Rights Agent] time, on __________, 2011 at the
principal office of the Rights Agent, or at the office of its successor as
Rights Agent, one one-hundredth of a fully paid non-assessable share of Series A
Junior Participating Preferred Stock, par value $.01 per share, of the Company
(the "Preferred Shares"), at a purchase price of $______ per one one-hundredth
of a Preferred Share (the "Purchase Price"), upon presentation and surrender of
this Right Certificate with the Form of Election to Purchase duly executed. The
number of Rights evidenced by this Right Certificate (and the number of one one-
hundredths of a Preferred Share which may be purchased upon exercise hereof) set
forth above, and the Purchase Price set forth above, are the number and Purchase
Price as of __________, 2001, based on the Preferred Shares as constituted at
such date. As provided in the Agreement, the Purchase Price and the number of
one one-hundredths of a Preferred Share which may be purchased upon the exercise
of the Rights evidenced by this Right Certificate are subject to modification
and adjustment upon the happening of certain events.

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

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

                                      B-1
<PAGE>

Certificates surrendered shall have entitled such holder to purchase. If this
Right Certificate shall be exercised in part, the holder shall be entitled to
receive upon surrender hereof another Right Certificate or Right Certificates
for the number of whole Rights not exercised.

          Subject to the provisions of the Agreement, the Rights evidenced by
this Right Certificate (i) may be redeemed by the Company at a redemption price
of $.01 per Right or (ii) may be exchanged in whole or in part for Preferred
Shares or shares of the Company's Common Stock, par value $.01 per share.

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

          No holder of this Right Certificate shall be entitled to vote or
receive dividends or be deemed for any purpose the holder of the Preferred
Shares or of any other securities of the Company which may at any time be
issuable on the exercise hereof, nor shall anything contained in the 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
Agreement), or to receive dividends or subscription rights, or otherwise, until
the Right or Rights evidenced by this Right Certificate shall have been
exercised as provided in the Agreement.

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

          WITNESS the facsimile signature of the proper officers of the Company
and its corporate seal. Dated as of __________, ____.

ATTEST:                                      FMC TECHNOLOGIES, INC.

                                             By
--------------------------                      ------------------------------
Name:                                           Name:
Title:                                          Title:
Countersigned:

[Rights Agent]

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

                   Form of Reverse Side of Right Certificate

                                      B-2
<PAGE>

                               FORM OF ASSIGNMENT
                               ------------------

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

          FOR VALUE RECEIVED ________________________________ hereby sells,
assigns and transfers unto _____________________________________________________
________________________________________________________________________________
                    (Please print name and address of transferee)

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

Dated: ___________________

                                                   _____________________________
                                                   Signature

Signature Guaranteed:

          All Guarantees must be made by a financial institution (such as a bank
or broker) which is a participant in the Securities Transfer Agents Medallion
Program ("STAMP"), the New York Stock Exchange, Inc. Medallion Signature Program
("MSP"), or the Stock Exchanges Medallion Program ("SEMP") and must not be
dated. Guarantees by a notary public are not acceptable.

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

                                                   _____________________________
                                                   Signature

             Form of Reverse Side of Right Certificate - continued

                                      B-3
<PAGE>

                          FORM OF ELECTION TO PURCHASE
                          ----------------------------

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

To:  FMC TECHNOLOGIES, INC.

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

Please insert social security
or other identifying number

--------------------------------------------------------------------------------
                        (Please print name and address)

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

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

Please insert social security
or other identifying number

--------------------------------------------------------------------------------
                        (Please print name and address)

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

Dated:  __________________

                                                   ____________________
                                                   Signature
Signature Guaranteed:

          All Guarantees must be made by a financial institution (such as a bank
or broker) which is a participant in the Securities Transfer Agents Medallion
Program ("STAMP"), the New York Stock Exchange, Inc. Medallion Signature Program
("MSP"), or the Stock Exchanges Medallion Program ("SEMP") and must not be
dated. Guarantees by a notary public are not acceptable.

                                      B-4
<PAGE>

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

                                                   _________________________
                                                   Signature

                                    NOTICE
                                    ------

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

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

                                      B-5
<PAGE>

                                                                       Exhibit C
                                                                       ---------

                         SUMMARY OF RIGHTS TO PURCHASE
                                PREFERRED SHARES

Introduction
------------

          On ______ __, 2001, the Board of Directors of our Company, FMC
Technologies, Inc., a Delaware corporation, declared a dividend of one preferred
share purchase right (a "Right") for each outstanding share of common stock, par
value $.01 per share. The dividend is payable on _________ __, 2001 to the
stockholders of record on _________ __, 2001.

          Our Board has adopted this Rights Agreement to protect stockholders
from coercive or otherwise unfair takeover tactics. In general terms, it works
by imposing a significant penalty upon any person or group which acquires 15% or
more of our outstanding common stock without the approval of our Board. The
Rights Agreement should not interfere with any merger or other business
combination approved by our Board.

          For those interested in the specific terms of the Rights Agreement as
made between our Company and _______________________________________, as the
Rights Agent, on ______ __, 2001, we provide the following summary description.
Please note, however, that this description is only a summary, and is not
complete, and should be read together with the entire Rights Agreement, which
has been filed with the Securities and Exchange Commission as an exhibit to a
Registration Statement on Form S-1 dated _________ __, 2001. A copy of the
agreement is available free of charge from our Company.

The Rights. Our Board authorized the issuance of a Right with respect to each
outstanding share of common stock on _________ __, 2001. The Rights will
initially trade with, and will be inseparable from, the common stock. The Rights
are evidenced only by certificates that represent shares of common stock. New
Rights will accompany any new shares of common stock we issue after _________
__, 2001 until the Distribution Date described below.

Exercise Price. Each Right will allow its holder to purchase from our Company
one one-hundredth of a share of Series A Junior Participating Preferred Stock
("Preferred Share") for $___, once the Rights become exercisable. This portion
of a Preferred Share will give the stockholder approximately the same dividend,
voting, and liquidation rights as would one share of common stock. Prior to
exercise, the Right does not give its holder any dividend, voting, or
liquidation rights.

Exercisability. The Rights will not be exercisable until

 .  10 days after the public announcement that a person or group has become an
   "Acquiring Person" by obtaining beneficial ownership of 15% or more of our
   outstanding common stock, or, if earlier,

 .  10 business days (or a later date determined by our Board before any person
   or group becomes an Acquiring Person) after a person or group begins a tender
   or exchange offer which, if completed, would result in that person or group
   becoming an Acquiring Person.

                                      C-1
<PAGE>

          In light of FMC Corporation's substantial ownership position, the
Rights Agreement contains provisions excluding FMC Corporation from the
operation of the adverse terms of the Rights Agreement until the first time it
ceases to beneficially own at least 15% of our outstanding common stock.

          We refer to the date when the Rights become exercisable as the
"Distribution Date." Until that date, the common stock certificates will also
evidence the Rights, and any transfer of shares of common stock will constitute
a transfer of Rights. After that date, the Rights will separate from the common
stock and be evidenced by book-entry credits or by Rights certificates that we
will mail to all eligible holders of common stock. Any Rights held by an
Acquiring Person are void and may not be exercised.

          Our Board may reduce the threshold at which a person or group becomes
an Acquiring Person from 15% to not less than 10% of the outstanding common
stock.

Consequences of a Person or Group Becoming an Acquiring Person.

 .  Flip In. If a person or group becomes an Acquiring Person, all holders of
   Rights except the Acquiring Person may, for $___, purchase shares of our
   common stock with a market value of $___, based on the market price of the
   common stock prior to such acquisition.

 .  Flip Over. If our Company is later acquired in a merger or similar
   transaction after the Rights Distribution Date, all holders of Rights except
   the Acquiring Person may, for $___, purchase shares of the acquiring
   corporation with a market value of $___ based on the market price of the
   acquiring corporation's stock, prior to such merger.

Preferred Share Provisions.

Each one one-hundredth of a Preferred Share, if issued:

 .  will not be redeemable.

 .  will entitle holders to quarterly dividend payments of $.01 per share, or an
   amount equal to the dividend paid on one share of common stock, whichever is
   greater.

 .  will entitle holders upon liquidation either to receive $1 per share or an
   amount equal to the payment made on one share of common stock, whichever is
   greater.

 .  will have the same voting power as one share of common stock.

 .  if shares of our common stock are exchanged via merger, consolidation, or a
   similar transaction, will entitle holders to a per share payment equal to the
   payment made on one share of common stock.

The value of one one-hundredth interest in a Preferred Share should approximate
the value of one share of common stock.

Expiration. The Rights will expire on _________ __, 2011.

                                      C-2
<PAGE>

Redemption. Our Board may redeem the Rights for $.01 per Right at any time
before any person or group becomes an Acquiring Person. If our Board redeems any
Rights, it must redeem all of the Rights. Once the Rights are redeemed, the only
right of the holders of Rights will be to receive the redemption price of $.01
per Right. The redemption price will be adjusted if we have a stock split or
stock dividends of our common stock.

Exchange. After a person or group becomes an Acquiring Person, but before an
Acquiring Person owns 50% or more of our outstanding common stock, our Board may
extinguish the Rights by exchanging one share of common stock or an equivalent
security for each Right, other than Rights held by the Acquiring Person.

Anti-Dilution Provisions. Our Board may adjust the purchase price of the
Preferred Shares, the number of Preferred Shares issuable and the number of
outstanding Rights to prevent dilution that may occur from a stock dividend, a
stock split, a reclassification of the Preferred Shares or common stock. No
adjustments to the Exercise Price of less than 1% will be made.

Amendments. The terms of the Rights Agreement may be amended by our Board
without the consent of the holders of the Rights. However, our Board may not
amend the Rights Agreement to lower the threshold at which a person or group
becomes an Acquiring Person to below 10% of our outstanding common stock. In
addition, the Board may not cause a person or group to become an Acquiring
Person by lowering this threshold below the percentage interest that such person
or group already owns. After a person or group becomes an Acquiring Person, our
Board may not amend the agreement in a way that adversely affects holders of the
Rights.

                                      C-3<PAGE>
                                                                    Exhibit 10.4

                            FMC TECHNOLOGIES, INC.
                     INCENTIVE COMPENSATION AND STOCK PLAN
                     -------------------------------------

SECTION 1.  PURPOSE
            -------

     The purpose of the Plan is to give the Company a competitive advantage in
attracting, retaining and motivating officers, employees, directors and
consultants of the Company and its Affiliates.

SECTION 2.  DEFINITIONS
            -----------

     2.1  GENERAL.  For purposes of the Plan, the following terms are defined as
set forth below:

     (a)  "AFFILIATE" means a corporation or other entity controlled by,
          controlling or under common control with the Company, including,
          without limitation, any corporation, partnership, joint venture or
          other entity during any period in which at least a fifty percent (50%)
          voting or profits interest is owned, directly or indirectly, by the
          Company or any successor to the Company.

     (b)  "ANNUAL RETAINER" means the retainer fee established by the Board and
          paid to a Non-Employee Director for services on the Board for a
          specified year.

     (c)  "AWARD" means a Management Incentive Award, Stock Option, Stock
          Appreciation Right, Performance Unit, Restricted Stock or other award
          authorized under the Plan.

     (d)  "AWARD CYCLE" means a period of consecutive fiscal years or portions
          thereof designated by the Committee over which Awards are to be
          earned.

     (e)  "BOARD" means the Board of Directors of the Company.

     (f)  "BUSINESS UNIT" means a unit of the business of the Company or its
          Affiliates as determined by the Committee and the CEO.

     (g)  "CAPITAL EMPLOYED" means operating working capital plus net property,
          plant and equipment.

     (h)  "CAUSE" means (1) "Cause" as defined in any Individual Agreement to
          which the participant is a party, or (2) if there is no such
          Individual Agreement, or, if it does not define "Cause": (A) the
          participant having been convicted of, or pleading guilty or nolo
          contendere to, a felony under federal or state law; (B) the Willful
          and continued failure on the part of the participant to substantially
          perform his or her employment duties in any material respect (other
          than such failure resulting from Disability), after a written demand
          for substantial performance is delivered to the participant that
          specifically identifies the manner in which the Company believes the
          participant has failed to perform his or her duties, and after the
<PAGE>

          participant has failed to resume substantial performance of his or her
          duties within thirty (30) days of such demand; or (C) Willful and
          deliberate conduct on the part of the participant that is materially
          injurious to the Company or an Affiliate; or (D) prior to a Change in
          Control, such other events as will be determined by the Committee. The
          Committee will, unless otherwise provided in an Individual Agreement
          with the participant, determine whether "Cause" exists.

     (i)  "CEO" means the Company's chief executive officer.

     (j)  "CHANGE IN CONTROL" and "CHANGE IN CONTROL PRICE" have the meanings
          set forth in Sections 15.2 and 15.3, respectively.

     (k)  "CODE" means the Internal Revenue Code of 1986, as amended from time
          to time, and any successor thereto.

     (l)  "COMMITTEE" means the Compensation and Organization Committee of the
          Board, or such other committee as the Board may from time to time
          designate.

     (m)  "COMMON STOCK" means (1) the common stock of the Company, par value
          $.10 per share, subject to adjustment as provided in Section 4.1
          Shares Available for Issuance; or (2) if there is a merger or
          consolidation and the Company is not the surviving corporation, the
          capital stock of the surviving corporation given in exchange for such
          common stock of the Company.

     (n)  "COMPANY" means FMC Technologies, Inc., a Delaware corporation.

     (o)  "COVERED EMPLOYEE" means a participant who has received a Management
          Incentive Award, Restricted Stock or Performance Units, who has been
          designated as such by the Committee and who is or may be a "covered
          employee" within the meaning of Section 162(m)(3) of the Code in the
          year in which the Management Incentive Award, Restricted Stock or
          Performance Units are expected to be taxable to such participant.

     (p)  "DISABILITY" means, unless otherwise provided by the Committee, (1)
          "Disability" as defined in any Individual Agreement to which the
          participant is a party, or (2) if there is no such Individual
          Agreement, or, if it does not define "Disability," permanent and total
          disability as determined under the Company's long-term disability
          plan.

     (q)  "DISTRIBUTION" means FMC's distribution of its controlling interest in
          the Company.

     (r)  "DIVIDEND EQUIVALENT RIGHTS" means the right to receive cash, Stock
          Options, Restricted Stock or Performance Units, as determined by the
          Committee, in an amount equal to any dividends that would have been
          paid on a Stock Option, Restricted Stock or a Performance Unit, as
          applicable, with Dividend Equivalent Rights if such Stock Option,
          Restricted Stock or Performance Unit, as applicable, was a share of
          Common Stock held by the participant on the dividend payment

                                                                         Page 2
<PAGE>

          date. Unless the Committee determines that Dividend Equivalent Rights
          will be paid in cash as of the dividend payment date, such Dividend
          Equivalent Rights, once credited, will be converted into an equivalent
          number of Stock Options, shares of Restricted Stock or Performance
          Units, as applicable; provided, however, that the number of shares
          subject to any Award will always be a whole number. Unless otherwise
          determined by the Committee as of the dividend payment date, if a
          dividend is paid in cash, the number of Stock Options, shares of
          Restricted Stock or Performance Units into which a Dividend Equivalent
          Right will be converted will be calculated as of the dividend payment
          date, in accordance with the following formula:

                                   (A x B)/C

          in which "A" equals the number of Stock Options, shares of Restricted
          Stock or Performance Units with Dividend Equivalent Rights held by the
          participant on the dividend payment date, "B" equals the cash dividend
          per share and "C" equals the Fair Market Value per share of Common
          Stock on the dividend payment date.  Unless otherwise determined by
          the Committee as of the dividend payment date, if a dividend is paid
          in property other than cash, the number of Stock Options, shares of
          Restricted Stock or Performance Units, as applicable into which a
          Dividend Equivalent Right will be converted will be calculated, as of
          the dividend payment date, in accordance with the formula set forth
          above, except that "B" will equal the fair market value per share of
          the property which the participant would have received if the Stock
          Option, share of Restricted Stock or Performance Unit, as applicable,
          with Dividend Equivalent Rights held by the participant on the
          dividend payment date was a share of Common Stock.

     (s)  "EFFECTIVE DATE" means ___________, 2001, the date the Plan was
          adopted by the Board, subject to the approval by at least a majority
          of the holders of outstanding shares of Common Stock of the Company.

     (t)  "ELIGIBLE INDIVIDUALS" means officers, employees, directors and
          consultants of the Company or any of its Affiliates, and prospective
          employees, directors and consultants who have accepted offers of
          employment, membership on a board or consultancy from the Company or
          its Affiliates, who are or will be responsible for or contribute to
          the management, growth or profitability of the business of the Company
          or its Affiliates, as determined by the Committee.

     (u)  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended
          from time to time, and any successor thereto.

     (v)  "EXPIRATION DATE" means the date on which an Award becomes
          unexercisable and/or not payable by reason of lapse of time or
          otherwise as provided in Section 6.2 Expiration Date.

     (w)  "FAIR MARKET VALUE" means, except as otherwise provided by the
          Committee, as of any given date, the closing price for the shares on
          the New York Stock

                                                                          Page 3
<PAGE>

          Exchange for the specified date (as of 4 p.m. Eastern Standard Time or
          Eastern Daylight Savings Time, whichever is then in effect), or, if
          the shares were not traded on the New York Stock Exchange on such
          date, then on the next preceding date on which the shares were traded,
          all as reported by such source as the Committee may select.

     (x)  "FMC" means FMC Corporation.

     (y)  "GRANT DATE" means the date designated by the Committee as the date of
          grant of an Award.

     (z)  "INCENTIVE STOCK OPTION" means any Stock Option designated as, and
          qualified as, an "incentive stock option" within the meaning of
          Section 422 of the Code.

     (aa) "INDIVIDUAL AGREEMENT" means a severance, employment, consulting or
          similar agreement between a participant and the Company or one of its
          Affiliates.

     (bb) "IPO" means the initial registered public offering by FMC of shares of
          Common Stock of the Company.

     (cc) "MANAGEMENT INCENTIVE AWARD" means an Award of cash, Common Stock,
          Restricted Stock or a combination of cash, Common Stock and Restricted
          Stock, as determined by the Committee.

     (dd) "NET CONTRIBUTION" means for a Business Unit, its operating profit
          after-tax, less the product of (1) a percentage as determined by the
          Committee; and (2) the Business Unit's Capital Employed.

     (ee) "NON-EMPLOYEE DIRECTOR" means each director of the Company who is not
          otherwise an employee of the Company or its Affiliates.

     (ff) "NONQUALIFIED STOCK OPTION" means any Stock Option that is not an
          Incentive Stock Option.

     (gg) "NOTICE" means the written evidence of an Award granted under the Plan
          in such form as the Committee will from time to time determine.

     (hh) "PERFORMANCE GOALS" means the performance goals established by the
          Committee in connection with the grant of Management Incentive Awards,
          Restricted Stock or Performance Units as set forth in the Notice. In
          the case of Qualified Performance-Based Awards, Performance Goals will
          be set by the Committee within the time period prescribed by Section
          162(m) of the Code and related regulations, and will be based on Net
          Contribution, or such other performance criteria selected by the
          Committee, including, without limitation, the Fair Market Value of the
          Common Stock, the Company's or a Business Unit's market share, sales,
          earnings, costs, productivity, return on equity or return on Capital
          Employed.

                                                                          Page 4
<PAGE>

     (ii) "PERFORMANCE UNITS" means an Award granted under Section 12
          Performance Units.

     (jj) "PLAN" means the FMC Technologies, Inc. Incentive Compensation and
          Stock Plan, as set forth herein and as hereinafter amended from time
          to time.

     (kk) "QUALIFIED PERFORMANCE-BASED AWARD" means a Management Incentive
          Award, an Award of Restricted Stock or an Award of Performance Units
          designated as such by the Committee, based upon a determination that
          (1) the recipient is or may be a Covered Employee; and (2) the
          Committee wishes such Award to qualify for the Section 162(m)
          Exemption.

     (ll) "RESTRICTED STOCK" means an Award granted under Section 11 Restricted
          Stock.

     (mm) "SECTION 162(M) EXEMPTION" means the exemption from the limitation on
          deductibility imposed by Section 162(m) of the Code that is set forth
          in Section 162(m)(4)(C) of the Code.

     (nn) "SEPARATION FROM SERVICE" means the cessation of a Non-Employee
          Director's service on the Board. Temporary absences from service on
          the Board because of illness, vacation or leave of absence will not be
          considered a Separation from Service.

     (oo) "STOCK APPRECIATION RIGHT" means an Award granted under Section 10
          Stock Appreciation Rights.

     (pp) "STOCK OPTION" means an Award granted under Section 9 Stock Options.

     (qq) "TERMINATION OF EMPLOYMENT" means the termination of the participant's
          employment with, or performance of services for, the Company and any
          of its Affiliates. Temporary absences from employment because of
          illness, vacation or leave of absence and transfers among the Company
          and its Affiliates will not be considered a Termination of Employment.

     (rr) "VESTING DATE" means the date on which an Award becomes vested, and,
          if applicable, fully exercisable and/or payable by or to the
          participant as provided in Section 6.3 Vesting.

     (ss) "WILLFUL" means any action or omission by the participant that was not
          in good faith and without a reasonable belief that the action or
          omission was in the best interests of the Company or its Affiliates.
          Any act or omission based upon authority given pursuant to a duly
          adopted resolution of the Board, or, upon the instructions of the CEO
          or any other senior officer of the Company, or, based upon the advice
          of counsel for the Company will be conclusively presumed to be taken
          or omitted by the participant in good faith and in the best interests
          of the Company and/or its Affiliates.

                                                                          Page 5
<PAGE>

     2.2  OTHER DEFINITIONS. In addition, certain other terms used herein have
definitions given to them in the first place in which they are used.

SECTION 3.  ADMINISTRATION
            --------------

     3.1  COMMITTEE ADMINISTRATION.  The Committee is the administrator of the
Plan.  Among other things, the Committee has the authority, subject to the terms
of the Plan:

     (a)  To select the Eligible Individuals to whom Awards are granted;

     (b)  To determine whether and to what extent Awards are granted;

     (c)  To determine the amount of each Award;

     (d)  To determine the terms and conditions of any Award, including, but not
          limited to, the option price, any vesting condition, restriction or
          limitation regarding any Award and the shares of Common Stock relating
          thereto, based on such factors as the Committee will determine;

     (e)  To modify, amend or adjust the terms and conditions of any Award, at
          any time or from time to time;

     (f)  To determine to what extent and under what circumstances Common Stock
          and other amounts payable with respect to an Award will be deferred;
          and

     (g)  To determine under what circumstances an Award may be settled in cash
          or Common Stock or a combination of cash and Common Stock.

     The Committee has the authority to adopt, alter and repeal administrative
rules, guidelines and practices governing the Plan, to interpret the terms and
provisions of the Plan, any Award, any Notice and any other agreement relating
to any Award and to take any action it deems appropriate for the administration
of the Plan.

     3.2  COMMITTEE ACTION.  The Committee may act only by a majority of its
members then in office unless it allocates or delegates its authority to a
Committee member or other person to act on its behalf.  Except to the extent
prohibited by applicable law or applicable rules of a stock exchange, the
Committee may allocate all or any portion of its responsibilities and powers to
any one or more of its members and may delegate all or any part of its
responsibilities and powers to any other person or persons. Any such allocation
or delegation may be revoked by the Committee at any time.

     Any determination made by the Committee or its delegate with respect to any
Award will be made in the sole discretion of the Committee or such delegate.
All decisions of the Committee or its delegate are final, conclusive and binding
on all parties.

     3.3  BOARD AUTHORITY.  Any authority granted to the Committee may also be
exercised by the full Board. To the extent that any permitted action taken by
the Board conflicts with action taken by the Committee, the Board action will
control.  Notwithstanding anything herein

                                                                          Page 6
<PAGE>

to the contrary, the Board is the administrator of the portion of the Plan
applicable to Non-Employee Directors.

SECTION 4.  SHARES
            ------

     4.1  SHARES AVAILABLE FOR ISSUANCE.  The maximum number of shares of Common
Stock that may be delivered to participants and their beneficiaries under the
Plan will be 12,000,000.  Shares subject to an Award under the Plan may be
authorized and unissued shares or may be treasury shares.

     The maximum number of shares of Common Stock that may be subject to
Management Incentive Awards, Restricted Stock and Performance Units is 1,000,000
shares of Common Stock.

     No Award will be counted against the shares available for delivery under
the Plan if the Award is payable to the participant only in the form of cash, or
if the Award is paid to the participant in cash.

     If any Award is forfeited, or if any Stock Option (and any related Stock
Appreciation Right) terminates, expires or lapses without being exercised, or if
any Stock Appreciation Right is exercised for cash, the shares of Common Stock
subject to such Awards will again be available for delivery in connection with
Awards under the Plan.  If the option price of any Stock Option granted under
the Plan is satisfied by delivering shares of Common Stock to the Company (by
either actual delivery or by attestation), only the number of shares of Common
Stock delivered to the participant, net of the shares of Common Stock delivered
or attested to, will be deemed delivered for purposes of determining the maximum
numbers of shares of Common Stock available for delivery under the Plan.  To the
extent any shares of Common Stock subject to an Award are not delivered to a
participant because such shares are used to satisfy an applicable tax-
withholding obligation, such shares will not be deemed to have been delivered
for purposes of determining the maximum number of shares of Common Stock
available for delivery under the Plan.

     In the event of any corporate event or transaction, (including, but not
limited to, a change in the number of shares of Common Stock outstanding), such
as a stock split, merger, consolidation, separation, including a spin-off or
other distribution of stock or property of the Company, any reorganization
(whether or not such reorganization comes within the definition of such term in
Section 368 of the Code) or any partial or complete liquidation of the Company,
the Committee may make such substitution or adjustments in the aggregate number,
kind, and price of shares reserved for issuance under the Plan, and the maximum
limitation upon any Awards to be granted to any participant, in the number, kind
and price of shares subject to outstanding Awards granted under the Plan and/or
such other equitable substitution or adjustments as it may determine to be
appropriate; provided, however, that the number of shares subject to any Award
will always be a whole number.  Such adjusted price will be used to determine
the amount payable in cash or shares, as applicable, by the Company upon the
exercise of any Award.

     4.2  INDIVIDUAL LIMITS.  No participant may be granted Stock Options and
Stock Appreciation Rights covering in excess of 750,000 shares of Common Stock
in any calendar

                                                                          Page 7
<PAGE>

year. The maximum aggregate amount with respect to each Management Incentive
Award, Award of Performance Units or Award of Restricted Stock that may be
granted, or, that may vest, as applicable, in any calendar year for any
individual participant is 750,000 shares of Common Stock, or the dollar
equivalent of 750,000 shares of Common Stock.

SECTION 5.  ELIGIBILITY
            -----------

     Awards may be granted under the Plan to Eligible Individuals. Incentive
Stock Options may be granted only to employees of the Company and its
subsidiaries or parent corporation (within the meaning of Section 424(f) of the
Code).

SECTION 6.  TERMS AND CONDITIONS OF AWARDS
            ------------------------------

     6.1  GENERAL.  Awards will be in the form and upon the terms and conditions
as determined by the Committee, subject to the terms of the Plan.  The Committee
is authorized to grant Awards independent of, or in addition to other Awards
granted under the Plan.  The terms and conditions of each Award may vary from
other Awards.  Awards will be evidenced by Notices, the terms and conditions of
which will be consistent with the terms of the Plan and will apply only to such
Award.

     6.2  EXPIRATION DATE.    Unless otherwise provided in the Notice, the
Expiration Date of an Award will be the earlier of the date that is ten (10)
years after the Grant Date or the date of the participant's Termination of
Employment.

     6.3  VESTING.  Each Award vests and becomes fully payable, exercisable
and/or released of any restriction on the Vesting Date.  The Vesting Date of
each Award, as determined by the Committee, will be set forth in the Notice.

SECTION 7.  QUALIFIED PERFORMANCE-BASED AWARDS
            ----------------------------------

     The Committee may designate a Management Incentive Award, or an Award of
Restricted Stock or an Award of Performance Units as a Qualified Performance-
Based Award, in which case, the Award is contingent upon the attainment of
Performance Goals.

SECTION 8.  MANAGEMENT INCENTIVE AWARDS
            ---------------------------

     8.1  MANAGEMENT INCENTIVE AWARDS.  The Committee is authorized to grant
Management Incentive Awards, subject to the terms of the Plan.  Notices for
Management Incentive Awards will indicate the Award Cycle, any applicable
Performance Goals, any applicable designation of the Award as a Qualified
Performance-Based Award and the form of payment of the Award.

     8.2  SETTLEMENT.  As soon as practicable after the later of the Vesting
Date and the date any applicable Performance Goals are satisfied, Management
Incentive Awards will be paid to the participant in cash, Common Stock,
Restricted Stock or a combination of cash, Common Stock and Restricted Stock, as
determined by the Committee. The number of shares of Common

                                                                          Page 8
<PAGE>

Stock payable under the stock portion of a Management Incentive Award will equal
the amount of such portion of the award divided by the Fair Market Value of the
Common Stock on the date of payment.

SECTION 9.  STOCK OPTIONS
            -------------

     9.1  STOCK OPTIONS.  The Committee is authorized to grant Stock Options,
including both Incentive Stock Options and Nonqualified Stock Options, subject
to the terms of the Plan.  Notices will indicate whether the Stock Option is
intended to be an Incentive Stock Option or a Nonqualified Stock Option, the
option price, the term and the number of shares to which it pertains. To the
extent that any Stock Option is not designated as an Incentive Stock Option, or,
even if so designated does not qualify as an Incentive Stock Option on or
subsequent to its Grant Date, it will constitute a Nonqualified Stock Option.

     9.2  OPTION PRICE.  The option price per share of Common Stock purchasable
under a Stock Option will be determined by the Committee and will not be less
than the Fair Market Value of the Common Stock subject to the Stock Option on
the Grant Date; provided, however, that a Stock Option granted in connection
with the IPO may be granted at an option price equal to the initial price at
which Common Stock is offered to the public in the IPO.

     9.3  INCENTIVE STOCK OPTIONS.  The terms of the Plan addressing Incentive
Stock Options and each Incentive Stock Option will be interpreted in a manner
consistent with Section 422 of the Code and all valid regulations issued
thereunder.

     9.4  EXERCISE.  Stock Options will be exercisable at such time or times and
subject to the terms and conditions set forth in the Notice. A participant can
exercise a Stock Option, in whole or in part, at any time on or after the
Vesting Date and before the Expiration Date by giving written notice of exercise
to the Company specifying the number of shares of Common Stock subject to the
Stock Option to be purchased. Such notice will be accompanied by payment in full
to the Company of the option price by certified or bank check or such other cash
equivalent instrument as the Company may accept. If approved by the Committee,
payment in full or in part may also be made in the form of Common Stock (by
delivery of such shares or by attestation) already owned by the optionee of the
same class as the Common Stock subject to the Stock Option, based on the Fair
Market Value of the Common Stock on the date the Stock Option is exercised.
Notwithstanding the foregoing, the right to make payment in the form of already
owned shares of Common Stock applies only to shares that have been held by the
optionee for at least six (6) months at the time of exercise or that were
purchased on the open market.

     If approved by the Committee, payment in full or in part may also be made
by delivering a properly executed exercise notice to the Company, together with
a copy of irrevocable instructions to a broker to deliver promptly to the
Company the amount of sale or loan proceeds necessary to pay the option price,
and, if requested, by the amount of any federal, state, local or foreign
withholding taxes.  To facilitate the foregoing, the Company may enter into
agreements for coordinated procedures with one or more brokerage firms.  The
Committee may also provide for Company loans to be made for purposes of the
exercise of Stock Options.

                                                                          Page 9
<PAGE>

     9.5  SETTLEMENT.  As soon as practicable after the exercise of a Stock
Option, the Company will deliver to or on behalf of the optionee certificates of
Common Stock for the number of shares purchased.  No shares of Common Stock will
be issued until full payment therefor has been made.  Except as otherwise
provided in Section 9.8 Deferral of Stock Options Shares below, an optionee will
have all of the rights of a stockholder of the Company holding Common Stock,
including, but not limited to, the right to vote the shares and the right to
receive dividends, when the optionee has given written notice of exercise, has
paid in full for such shares and, if requested, has given the representation
described in Section 19 General Provisions.  The Committee may give optionees
Dividend Equivalent Rights.

     9.6  NONTRANSFERABILITY.  No Stock Option will be transferable by the
optionee other than by will or by the laws of descent and distribution. All
Stock Options will be exercisable, subject to the terms of the Plan, only by the
optionee, the guardian or legal representative of the optionee, or any person to
whom such Stock Option is transferred pursuant to this paragraph, it being
understood that the term "holder" and "optionee" include such guardian, legal
representative and other transferee. No Stock Option will be subject to
execution, attachment or other similar process.

     Notwithstanding anything herein to the contrary, the Committee may permit a
participant at any time prior to his or her death to assign all or any portion
without consideration therefor of a Nonqualified Stock Option to:

     (a)  The participant's spouse or lineal descendants;

     (b)  The trustee of a trust for the primary benefit of the participant and
          his or her spouse or lineal descendants, or any combination thereof;

     (c)  A partnership of which the participant, his or her spouse and/or
          lineal descendants are the only partners;

     (d)  Custodianships under the Uniform Transfers to Minors Act or any other
          similar statute; or

     (e)  Upon the termination of a trust by the custodian or trustee thereof,
          or the dissolution or other termination of the family partnership or
          the termination of a custodianship under the Uniform Transfers to
          Minors Act or any other similar statute, to the person or persons who,
          in accordance with the terms of such trust, partnership or
          custodianship are entitled to receive the Nonqualified Stock Option
          held in trust, partnership or custody.

In such event,  the spouse, lineal descendant, trustee, partnership or
custodianship will be entitled to all of the participant's rights with respect
to the assigned portion of the Nonqualified Stock Option, and such portion will
continue to be subject to all of the terms, conditions and restrictions
applicable to the Nonqualified Stock Option.

     9.7  CASHING OUT.  On receipt of written notice of exercise, the Committee
may elect to cash out all or part of the portion of the shares of Common Stock
for which a Stock Option is being exercised by paying the optionee an amount, in
cash or Common Stock, equal to the excess

                                                                         Page 10
<PAGE>

of the Fair Market Value of the Common Stock over the option price times the
number of shares of Common Stock for which the Stock Option is being exercised
on the effective date of such cash-out. In addition, notwithstanding any other
provision of the Plan, the Committee, either on the Grant Date or thereafter,
may give a participant the right to voluntarily cash-out the participant's
outstanding Stock Options, whether or not then vested, during the sixty (60)-day
period following a Change in Control. A participant who has such a cash-out
right and elects to cash-out Stock Options may do so during the sixty (60)-day
period following a Change in Control by giving notice to the Company to elect to
surrender all or part of the Stock Option to the Company and to receive cash,
within thirty (30) days of such election, in an amount equal to the amount by
which the Change in Control Price per share of Common Stock on the date of such
election exceeds the exercise price per share of Common Stock under the Stock
Option multiplied by the number of shares of Common Stock granted under the
Stock Option as to which this cash-out right is exercised. Notwithstanding the
foregoing, if any cash-out right would make a Change in Control transaction
ineligible for pooling-of-interests accounting, the Committee may eliminate or
modify such cash-out right.

     9.8  DEFERRAL OF STOCK OPTION SHARES.  The Committee may from time to time
establish procedures pursuant to which an optionee may elect to defer, until a
time or times later than the exercise of a Stock Option, receipt of all or a
portion of the shares of Common Stock subject to such Stock Option and/or to
receive cash at such later time or times in lieu of such deferred shares, all on
such terms and conditions as the Committee will determine. If any such deferrals
are permitted, an optionee who elects such deferral will not have any rights as
a stockholder with respect to such deferred shares unless and until shares are
actually delivered to the optionee with respect thereto, except to the extent
otherwise determined by the Committee.

SECTION 10.  STOCK APPRECIATION RIGHTS
             -------------------------

     10.1  STOCK APPRECIATION RIGHTS.  The Committee is authorized to grant
Stock Appreciation Rights, subject to the terms of the Plan. Stock Appreciation
Rights granted with a Nonqualified Stock Option may be granted either on or
after the Grant Date. Stock Appreciation Rights granted with an Incentive Stock
Option may be granted only on the Grant Date of such Stock Option. Notices of
Stock Appreciation Rights granted with Stock Options may be incorporated into
the Notice of the Stock Option. Notices of Stock Appreciation Rights will
indicate whether the Stock Appreciation Right is independent of any Award or
granted with a Stock Option, the price, the term, the method of exercise and the
form of payment.

     10.2  EXERCISE.  A participant can exercise Stock Appreciation Rights, in
whole or in part, at any time after the Vesting Date and before the Expiration
Date, or, with respect to Stock Appreciation Rights granted in connection with
any Stock Option, at such time or times and to the extent that the Stock Options
to which they relate are exercisable, by giving written notice of exercise to
the Company specifying the number of Stock Appreciation Rights to be exercised.
A Stock Appreciation Right granted with a Stock Option may be exercised by an
optionee by surrendering any applicable portion of the related Stock Option in
accordance with procedures established by the Committee. To the extent provided
by the Committee, Stock Options which have been so surrendered will no longer be
exercisable to the extent the related Stock Appreciation Rights have been
exercised.

                                                                         Page 11
<PAGE>

     10.3  SETTLEMENT.  As soon as practicable after the exercise of a Stock
Appreciation Right, an optionee will be entitled to receive an amount in cash,
shares of Common Stock or a combination of cash and shares of Common Stock, as
determined by the Committee, in value equal to the excess of the Fair Market
Value on the date of exercise of one share of Common Stock over the Stock
Appreciation Right price per share multiplied by the number of shares in respect
of which the Stock Appreciation Right is being exercised. Upon the exercise of a
Stock Appreciation Right granted with any Stock Option, the Stock Option or part
thereof to which such Stock Appreciation Right is related will be deemed to have
been exercised for the purpose of the limitation set forth in Section 4 Shares
on the number of shares of Common Stock to be issued under the Plan, but only to
the extent of the number of shares delivered upon the exercise of the Stock
Appreciation Right.

     10.4  NONTRANSFERABILITY.  Stock Appreciation Rights will be transferable
only to the extent they are granted with any Stock Option, and only to permitted
transferees of such underlying Stock Option in accordance with the
Nontransferability provisions of Section 9.

SECTION 11.  RESTRICTED STOCK
             -----------------

     11.1  RESTRICTED STOCK.  The Committee is authorized to grant Restricted
Stock, subject to the terms of the Plan. Notices for Restricted Stock may be in
the form of a Notice and book-entry registration or issuance of one or more
stock certificates. Any certificate issued in respect of shares of Restricted
Stock will be registered in the name of such participant and will bear an
appropriate legend referring to the terms, conditions, and restrictions
applicable to such Award, substantially in the following form:

     "The transferability of this certificate and the shares of stock
     represented hereby are subject to the terms and conditions, including, but
     not limited to, forfeiture of the FMC Technologies, Inc. Incentive
     Compensation and Stock Plan and a Restricted Stock Notice.  Copies of such
     Plan and Notice are on file at the offices of FMC Technologies, Inc."

     The Committee may require that the certificates evidencing such shares be
held in custody by the Company until the restrictions thereon will have lapsed
and that, as a condition of any Award of Restricted Stock, the participant will
have delivered a stock power, endorsed in blank, relating to the Common Stock
covered by such Award. The Notice or certificates will indicate any applicable
Performance Goals, any applicable designation of the Restricted Stock as a
Qualified Performance-Based Award and the form of payment.

     11.2  PARTICIPANT RIGHTS.  Subject to the terms of the Plan and the Notice
or certificate of Restricted Stock, the participant will not be permitted to
sell, assign, transfer, pledge or otherwise encumber shares of Restricted Stock
until the later of the Vesting Date and the date any applicable Performance
Goals are satisfied. Notwithstanding the foregoing, a participant may pledge
Restricted Stock as security for a loan to obtain funds to pay the option price
for Stock Options. Except as provided in the Plan and the Notice or certificate
of the Restricted Stock, the participant will have, with respect to the shares
of Restricted Stock, all of the rights of a stockholder of the Company holding
Common Stock, including, but not limited to, the right to vote the shares and
Dividend Equivalent Rights, if so granted.

                                                                         Page 12
<PAGE>

     11.3  SETTLEMENT.  As soon as practicable after the later of the Vesting
Date and the date any applicable Performance Goals are satisfied and prior to
the Expiration Date, unlegended certificates for such shares of Common Stock
will be delivered to the participant upon surrender of any legended
certificates, if applicable.

SECTION 12.  PERFORMANCE UNITS
             -----------------

     12.1  PERFORMANCE UNITS.  The Committee is authorized to grant Performance
Units, subject to the terms of the Plan. Notices of Performance Units will
indicate any applicable Performance Goals, any applicable designation of the
Award as a Qualified Performance-Based Award and the form of payment.

     12.2  SETTLEMENT.  As soon as practicable after the later of the Vesting
Date and the date any applicable Performance Goals are satisfied, Performance
Units will be paid in the manner as provided in the Notice. Payment of
Performance Units will be made in an amount of cash equal to the Fair Market
Value of one share of Common Stock multiplied by the number of Performance Units
earned or, if applicable, in a number of shares of Common Stock equal to the
number of Performance Units earned, each as determined by the Committee. The
Committee may at or after the Grant Date give the participant a right to defer
receipt of cash or shares in settlement of Performance Units for a specified
period or until a specified event. Subject to any exceptions adopted by the
Committee, an election by a participant to defer must be made before the
commencement of the Award Cycle for the Performance Units.

SECTION 13.  OTHER AWARDS
             ------------

     The Committee is authorized to make, either alone or in conjunction with
other Awards, Awards of cash or Common Stock and Awards that are valued in
whole or in part by reference to, or are otherwise based upon, Common Stock,
including, without limitation, convertible debentures.

SECTION 14.  NON-EMPLOYEE DIRECTOR AWARDS
             ----------------------------

     14.1  ANNUAL RETAINER.  Each Non-Employee Director will receive an Annual
Retainer in such amount as will be determined from time to time by the Board.
Until changed by resolution of the Board, the Grant Date of the Annual Retainer
will be May 1 of each year, and the amount of the Annual Retainer will be
$40,000, $25,000 of which will be paid in the form of Performance Units on the
Grant Date and the remainder of which will be paid in cash in quarterly
installments at the end of each calendar quarter. Not less than sixty (60) days
prior to the close of the Grant Date of the Annual Retainer, each Non-Employee
Director may elect to defer all of his or her remaining Annual Retainer to be
paid in the form of Performance Units by providing written notice of such
election to the Company. The number of Performance Units constituting the Annual
Retainer for each Non-Employee Director will be equal to the number obtained by
dividing $25,000 plus the portion of his or her remaining Annual Retainer that
he or she elected to defer by the Fair Market Value of the Common Stock on the
Grant Date.

                                                                         Page 13
<PAGE>

     14.2  ANNUAL AWARD.  In addition to the Annual Retainer, the Board has the
authority to grant Non-Employee Directors Stock Options, Restricted Stock or
Performance Units, subject to the terms of the Plan.

     14.3  MEETING FEES.  Each Non-Employee Director will receive a meeting fee
in such amount as will be determined from time to time by the Board for
attending each meeting of the Board and its committees, including extraordinary
and special meetings. Until changed by resolution of the Board, the meeting fee
will be $1,000 per meeting, payable in cash at the end of each calendar quarter.

     14.4  COMMITTEE CHAIRMAN FEES.  Each Non-Employee Director who serves as a
chairman of a committee of the Board will receive a committee chairman fee in
such amount as determined by the Board for the tenure of such service. Until
changed by resolution of the Board, the committee chairman fee will be paid in
cash at an annualized rate of $4,000 in equal installments at the end of each
calendar quarter.

     14.5  VESTING.  Awards granted to Non-Employee Directors will have a
Vesting Date as determined by the Board. Unless otherwise provided in the Award,
such Vesting Date will be the date of the Company's annual stockholder's meeting
next following the Grant Date.

     14.6  SEPARATION FROM SERVICE.  Except as provided below, if a Non-Employee
Director has a Separation from Service prior to the Vesting Date of a
Performance Unit, any unvested Performance Units are forfeited and all further
rights of the Non-Employee Director to or with respect to such Performance Units
terminate. If a Non-Employee Director dies while serving as a director of the
Company, any vested Performance Units will be paid to the person designated in
the Non-Employee Director's last will and testament or, in the absence of such
designation, to his or her estate. Any unvested Performance Units will vest and
become payable in a proportionate amount, based upon the full months of service
completed during the vesting period from the Grant Date to the date of death.
Any unvested Performance Units vest and become immediately payable upon a Change
in Control.

     14.7  SETTLEMENT.  Payments with respect to Performance Units of a Non-
Employee Director will be made in shares of Common Stock issued to the Non-
Employee Director as soon as practicable after his or her Separation from
Service. Performance Units will be valued using the Fair Market Value of Common
Stock on the last business day of his or her service on the Board.
Notwithstanding anything herein to the contrary, payments made upon the
occurrence of a Change in Control will be made in a single lump sum cash payment
in an amount calculated by using the Change in Control Price multiplied by the
number of shares of Common Stock relating to the Performance Units with respect
to which such payment is made.

SECTION 15.  CHANGE IN CONTROL
             -----------------

     15.1  IMPACT OF CHANGE IN CONTROL.  Notwithstanding any other
provision of the Plan to the contrary, in the event of a Change in Control, as
of the date such Change in Control is determined to have occurred, any
outstanding:

                                                                         Page 14
<PAGE>

     (a)  Stock Options and Stock Appreciation Rights become fully exercisable
          and vested to the full extent of the original grant;

     (b)  Restricted Stock becomes free of all restrictions and deferral
          limitations and becomes fully vested and transferable to the full
          extent of all or a portion of the maximum amount of the original grant
          as provided in the Notice, or, if not provided in the Notice, as
          determined by the Committee;

     (c)  Performance Units are considered earned and payable to the full extent
          of all or a portion of the maximum amount of the original grant as
          provided in the Notice, or, if not provided in the Notice, as
          determined by the Committee, any deferral or other restrictions lapse
          and such Performance Units will be settled in cash or Common Stock, as
          determined by the Committee, as promptly as is practicable following
          the Change in Control; and

     (d)  Management Incentive Awards become fully vested to the full extent of
          all or a portion of the maximum amount of the original grant as
          provided in the Notice, or, if not provided in the Notice, as
          determined by the Committee, and such Management Incentive Awards will
          be settled in cash or Common Stock, as determined by the Committee, as
          promptly as is practicable following the Change in Control.

     The Committee may also make additional substitutions, adjustments and/or
settlements of outstanding Awards as it deems appropriate and consistent with
the Plan's purposes.

     15.2 DEFINITION OF CHANGE IN CONTROL. For purposes of the Plan, a "Change
in Control" will mean the happening of any of the following events:

     (a)  An acquisition by any individual, entity or group (within the meaning
          of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of
          beneficial ownership (within the meaning of Rule 13d-3 promulgated
          under the Exchange Act) of twenty percent (20%) or more of either (1)
          the then outstanding shares of common stock of the Company (the
          "Outstanding Company Common Stock") or (2) the combined voting power
          of the then outstanding voting securities of the Company entitled to
          vote generally in the election of directors (the "Outstanding Company
          Voting Securities"); excluding, however, the following: (A) any
          acquisition directly from the Company, other than an acquisition by
          virtue of the exercise of a conversion privilege unless the security
          being so converted was itself acquired directly from the Company, (B)
          any acquisition by the Company, (C) any acquisition by any employee
          benefit plan (or related trust) sponsored or maintained by the Company
          or any entity controlled by the Company, or (D) any acquisition
          pursuant to a transaction which complies with Subsections (1), (2) and
          (3) of Subsection (c) of this Section 15.2;

     (b)  A change in the composition of the Board such that the individuals
          who, as of the Effective Date, constitute the Board (such Board will
          be hereinafter referred to as the "Incumbent Board") cease for any
          reason to constitute at least a majority of

                                                                         Page 15
<PAGE>

          the Board; provided, however, for purposes of this Section 15.2, that
          any individual who becomes a member of the Board subsequent to the
          Effective Date, whose election, or nomination for election by the
          Company's stockholders, was approved by a vote of at least a majority
          of those individuals who are members of the Board and who were also
          members of the Incumbent Board (or deemed to be such pursuant to this
          proviso) will be considered as though such individual were a member of
          the Incumbent Board; but, provided further, that any such individual
          whose initial assumption of office occurs as a result of either an
          actual or threatened election contest (as such terms are used in Rule
          14a-11 of Regulation 14A promulgated under the Exchange Act) or other
          actual or threatened solicitation of proxies or consents by or on
          behalf of a Person other than the Board will not be so considered as a
          member of the Incumbent Board;

     (c)  Consummation of a reorganization, merger or consolidation, sale or
          other disposition of all or substantially all of the assets of the
          Company, or acquisition by the Company of the assets or stock of
          another entity ("Corporate Transaction"); excluding, however, such a
          Corporate Transaction pursuant to which (1) all or substantially all
          of the individuals and entities who are the beneficial owners,
          respectively, of the Outstanding Company Common Stock and Outstanding
          Company Voting Securities immediately prior to such Corporate
          Transaction will beneficially own, directly or indirectly, more than
          sixty percent (60%) of, respectively, the outstanding shares of common
          stock, and the combined voting power of the then outstanding voting
          securities entitled to vote generally in the election of directors, as
          the case may be, of the corporation resulting from such Corporate
          Transaction (including, without limitation, a corporation which as a
          result of such transaction owns the Company or all or substantially
          all of the Company's assets either directly or through one or more
          subsidiaries) in substantially the same proportions as their
          ownership, immediately prior to such Corporate Transaction, of the
          Outstanding Company Common Stock and Outstanding Company Voting
          Securities, as the case may be, (2) no Person (other than the Company,
          any employee benefit plan (or related trust) of the Company or such
          corporation resulting from such Corporate Transaction) will
          beneficially own, directly or indirectly, twenty percent (20%) or more
          of, respectively, the outstanding shares of common stock of the
          corporation resulting from such Corporate Transaction or the combined
          voting power of the outstanding voting securities of such corporation
          entitled to vote generally in the election of directors except to the
          extent that such ownership existed prior to the Corporate Transaction,
          and (3) individuals who were members of the Incumbent Board will
          constitute at least a majority of the members of the board of
          directors of the corporation resulting from such Corporate
          Transaction; or

     (d)  The approval by the stockholders of the Company of a complete
          liquidation or dissolution of the Company.

     In addition, a Change in Control will be deemed to occur upon a change in
control of FMC, as determined under the change in control provisions of FMC's
executive severance plan, if at the time of its change in control, FMC owns more
than fifty percent (50%) of the

                                                                         Page 16
<PAGE>

Outstanding Company Common Stock. Notwithstanding the foregoing, neither the
IPO, nor the Distribution will be treated as a Change in Control of the Company.

     15.3  CHANGE IN CONTROL PRICE.  For purposes of the Plan, "Change in
Control Price" means the higher of (a) the highest reported sales price, regular
way, of a share of Common Stock in any transaction reported on the New York
Stock Exchange or other national exchange on which such shares are listed during
the sixty (60)-day period prior to and including the date of a Change in
Control; or (b) if the Change in Control is the result of a tender or exchange
offer or a Corporate Transaction, the highest price per share of Common Stock
paid in such tender or exchange offer or Corporate Transaction; provided,
however, that in the case of Incentive Stock Options and Stock Appreciation
Rights relating to Incentive Stock Options, the Change in Control Price will be
in all cases the Fair Market Value of the Common Stock on the date such
Incentive Stock Option or Stock Appreciation Right is exercised. To the extent
that the consideration paid in any such transaction described above consists all
or in part of securities or other noncash consideration, the value of such
securities or other noncash consideration will be determined by the Committee.

SECTION 16.  FORFEITURE OF AWARDS
             --------------------

     Notwithstanding anything in the Plan to the contrary, the Committee may, in
the event of serious misconduct by a participant (including, without limitation,
any misconduct prejudicial to or in conflict with the Company or its Affiliates,
or any Termination of Employment for Cause), or any activity of a participant in
competition with the business of the Company or any Affiliate, (a) cancel any
outstanding Award granted to such participant, in whole or in part, whether or
not vested or deferred, and/or (b) if such conduct or activity occurs within one
year following the exercise or payment of an Award, require such participant to
repay to the Company any gain realized or payment received upon the exercise or
payment of such Award (with such gain or payment valued as of the date of
exercise or payment).  Such cancellation or repayment obligation will be
effective as of the date specified by the Committee.  Any repayment obligation
may be satisfied in Common Stock or cash or a combination thereof (based upon
the Fair Market Value of Common Stock on the day of payment), and the Committee
may provide for an offset to any future payments owed by the Company or any
Affiliate to the participant if necessary to satisfy the repayment obligation.
The determination of whether a participant has engaged in a serious breach of
conduct or any activity in competition with the business of the Company or any
Affiliate will be made by the Committee in good faith.  This Section 16 will
have no application following a Change in Control.

SECTION 17.  AMENDMENT AND TERMINATION
             -------------------------

     The Committee may amend, alter, or discontinue the Plan or any Award,
prospectively or retroactively, but no amendment, alteration or discontinuation
may impair the rights of a recipient of any Award without the recipient's
consent, except such an amendment made to comply with applicable law, stock
exchange rules or accounting rules.

     No amendment will be made without the approval of the Company's
stockholders to the extent such approval is required by applicable law or stock
exchange rules, or, to the extent such

                                                                         Page 17
<PAGE>

amendment increases the number of shares available for delivery under the Plan,
or changes the option price after the Grant Date.

SECTION 18.  UNFUNDED STATUS OF PLAN
             -----------------------

     It is presently intended that the Plan constitutes an "unfunded" plan for
incentive and deferred compensation.  The Committee may authorize the creation
of trusts or other arrangements to meet the obligations created under the Plan
to deliver Common Stock or make payments; provided, however, that unless the
Committee otherwise determines, the existence of such trusts or other
arrangements will be consistent with the "unfunded" status of the Plan.

SECTION 19.  GENERAL PLAN PROVISIONS
             -----------------------

     19.1  GENERAL PROVISIONS. The Plan will be administered in accordance with
the following provisions and any other rule, guideline and practice determined
by the Committee:

     (a)  Each person purchasing or receiving shares pursuant to an Award may be
          required to represent to and agree with the Company in writing that he
          or she is acquiring the shares without a view to the distribution of
          the shares.

     (b)  The certificates for shares issued under an Award may include any
          legend which the Committee deems appropriate to reflect any
          restrictions on transfer.

     (c)  Notwithstanding any other provision of the Plan, any Award, any Notice
          or any other agreements made pursuant thereto, the Company is not
          required to issue or deliver any shares of Common Stock prior to
          fulfillment of all of the following conditions:

          (i)   Listing or approval for listing upon notice of issuance, of such
                shares on the New York Stock Exchange, Inc., or such other
                securities exchange as may at the time be the principal market
                for the Common Stock;

          (ii)  Any registration or other qualification of such shares of the
                Company under any state or federal law or regulation, or the
                maintaining in effect of any such registration or other
                qualification which the Committee deems necessary or advisable;
                and

          (iii) Obtaining any other consents, approval, or permit from any state
                or federal governmental agency which the Committee deems
                necessary or advisable.

     (d)  The Company will not issue fractions of shares. Whenever, under the
          terms of the Plan, a fractional share would otherwise be required to
          be issued, the participant will be paid at Fair Market Value for such
          fractional share by rounding down the number of shares received to the
          nearest whole number and paying in cash the value of the fractional
          share.

                                                                         Page 18
<PAGE>

     (e)  In the case of a grant of an Award to any Eligible Individual of an
          Affiliate of the Company, the Company may, if the Committee so
          directs, issue or transfer the shares of Common Stock, if any, covered
          by the Award to the Affiliate, for such lawful consideration as the
          Committee may specify, upon the condition or understanding that the
          Affiliate will transfer the shares of Common Stock to the Eligible
          Individual in accordance with the terms of the Award specified by the
          Committee pursuant to the provisions of the Plan. All shares of Common
          Stock underlying Awards that are forfeited or canceled revert to the
          Company.

     19.2  EMPLOYMENT.  The Plan will not constitute a contract of employment,
and adoption of the Plan will not confer upon any employee any right to
continued employment, nor will it interfere in any way with the right of the
Company or an Affiliate to terminate at any time the employment of any employee
or the membership of any director on a board of directors or any consulting
arrangement with any Eligible Individual.

     19.3  TAX WITHHOLDING OBLIGATIONS.  No later than the date as of which an
amount first becomes includible in the gross income of the participant for
federal income tax purposes with respect to any Award under the Plan, the
participant will pay to the Company, or make arrangements satisfactory to the
Company regarding the payment of, any federal, state, local or foreign taxes of
any kind required by law to be withheld with respect to such amount. Unless
otherwise determined by the Company, withholding obligations may be settled with
Common Stock, including Common Stock that is part of the Award that gives rise
to the withholding requirement; provided, that not more than the legally
required minimum withholding may be settled with Common Stock. The obligations
of the Company under the Plan will be conditional on such payment or
arrangements, and the Company and its Affiliates will, to the extent permitted
by law, have the right to deduct any such taxes from any payment otherwise due
to the participant. The Committee may establish such procedures as it deems
appropriate, including making irrevocable elections, for the settlement of
withholding obligations with Common Stock.

     19.4  BENEFICIARIES.  The Committee will establish such procedures as it
deems appropriate for a participant to designate a beneficiary to whom any
amounts payable in the event of the participant's death are to be paid or by
whom any rights of the participant, after the participant's death, may be
exercised.

     19.5  GOVERNING LAW.  The Plan and all Awards made and actions taken
thereunder will be governed by and construed in accordance with the laws of the
State of Delaware, without reference to principles of conflict of laws.
Notwithstanding anything herein to the contrary, in the event an Award is
granted to Eligible Individual who is employed or providing services outside the
United States and who is not compensated from a payroll maintained in the United
States, the Committee may modify the provisions of the Plan and/or any such
Award as they pertain to such individual to comply with and account for the tax
and accounting rules of the applicable foreign law so as to maintain the benefit
intended to be provided to such participant under the Award.

     19.6  NONTRANSFERABILITY.  Except as otherwise provided in Section 9 Stock
Options and Section 10 Stock Appreciation Rights, or by the Committee, Awards
under the Plan are not transferable except by will or by laws of descent and
distribution.

                                                                         Page 19
<PAGE>

     19.7  SEVERABILITY.  Wherever possible, each provision of the Plan and of
each Award and of each Notice will be interpreted in such a manner as to be
effective and valid under applicable law. If any provision of the Plan, any
Award or any Notice is found to be prohibited by or invalid under applicable
law, then (a) such provision will be deemed amended to and to have contained
from the outset such language as will be necessary to accomplish the objectives
of the provision as originally written to the fullest extent permitted by law;
and (b) all other provisions of the Plan and any Award will remain in full force
and effect.

     19.8  STRICT CONSTRUCTION.  No rule of strict construction will be applied
against the Company, the Committee or any other person in the interpretation of
the terms of the Plan, any Award, any Notice, any other agreement or any rule or
procedure established by the Committee.

     19.9  STOCKHOLDER RIGHTS.  Except as otherwise provided herein, no
participant will have dividend, voting or other stockholder rights by reason of
a grant of an Award or a settlement of an Award in cash.

                                                                         Page 20

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