Document:

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                                                                    EXHIBIT 4.1

                               CVB FINANCIAL CORP.

                                       AND

                           U.S. STOCK TRANSFER CORP.,

                                  RIGHTS AGENT

                        PREFERRED SHARES RIGHTS AGREEMENT

                            DATED AS OF JUNE 21, 2000

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                                RIGHTS AGREEMENT

     Agreement, dated as of June 21, 2000 between CVB Financial Corp., a
California corporation, and U.S. Stock Transfer Corp.

     On June 21, 2000 (the "RIGHTS DIVIDEND DECLARATION DATE"), the Board of
Directors of the Company authorized and declared a dividend of one Preferred
Share Purchase Right (a "RIGHT") for each Common Share (as hereinafter defined)
of the Company outstanding as of the Close of Business (as hereinafter defined)
on July 14, 2000 (the "RECORD DATE"), each Right representing the right to
purchase one one-thousandth of a share of Series A Participating Preferred Stock
(as such number may be adjusted pursuant to the provisions of this Agreement),
having the rights, preferences and privileges set forth in the form of
Certificate of Determination attached hereto as Exhibit A, upon the terms and
subject to the conditions herein set forth, and further authorized and directed
the issuance of one Right (as such number may be adjusted pursuant to the
provisions of this Agreement) with respect to each Common Share that shall
become outstanding between the Record Date and the earlier of the Distribution
Date and the Expiration Date (as such terms are hereinafter defined), and in
certain circumstances after the Distribution Date.

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

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

          (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 20% or more of the Common Shares then outstanding, but shall not include the
Company, any Subsidiary of the Company or any employee benefit plan of the
Company or of any Subsidiary of the Company, or any entity holding Common Shares
for or pursuant to the terms of any such plan. Notwithstanding the foregoing, no
Person shall be deemed to be an Acquiring Person as the result of an acquisition
of Common Shares by the Company which, by reducing the number of shares
outstanding, increases the proportionate number of shares beneficially owned by
such Person to 20% or more of the Common Shares of the Company then outstanding;
PROVIDED, HOWEVER, that if a Person shall become the Beneficial Owner of 20% 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
(other than pursuant to a dividend or distribution paid or made by the Company
on the outstanding Common Shares in Common Shares or pursuant to a split or
subdivision of the outstanding Common Shares), then such Person shall be deemed
to be an Acquiring Person unless upon becoming the Beneficial Owner of such
additional Common Shares of the Company such Person does not beneficially own
20% or more of the Common Shares of the Company then outstanding.
Notwithstanding the foregoing, (i) if the Company's Board of Directors
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 (including, without limitation, because (A) such
Person was unaware that it beneficially owned a percentage of the Common Shares
that would otherwise cause such Person

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to be an "Acquiring Person," as defined pursuant to the foregoing provisions of
this paragraph (a), or (B) such Person was aware of the extent of the Common
Shares it beneficially owned but had no actual knowledge of the consequences of
such beneficial ownership under this Agreement) and without any intention of
changing or influencing control of the Company, and if such Person divested or
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 or to have become an "Acquiring Person" for any purposes of this
Agreement; and (ii) if, as of the date hereof, any Person is the Beneficial
Owner of 20% or more of the Common Shares outstanding, such Person shall not be
or become an "Acquiring Person," as defined pursuant to the foregoing provisions
of this paragraph (a), unless and until such time as such Person shall become
the Beneficial Owner of additional Common Shares (other than pursuant to a
dividend or distribution paid or made by the Company on the outstanding Common
Shares in Common Shares or pursuant to a split or subdivision of the outstanding
Common Shares), unless, upon becoming the Beneficial Owner of such additional
Common Shares, such Person is not then the Beneficial Owner of 20% or more of
the Common Shares then outstanding.

          (b) "ADJUSTMENT FRACTION" shall have the meaning set forth in Section
11(a)(i) hereof.

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

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

               (ii) which such Person or any of such Person's Affiliates or
Associates has (A) the right to acquire (whether such right is exercisable
immediately or only after the passage of time) pursuant to any agreement,
arrangement or understanding (other than customary agreements with and between
underwriters and selling group members with respect to a bona fide public
offering of securities), or upon the exercise of conversion rights, exchange
rights, rights (other than the Rights), warrants or options, or otherwise;
PROVIDED, HOWEVER, that a Person shall not be deemed pursuant to this Section
1(d)(ii)(A) to be the Beneficial Owner of, or to beneficially own, (1)
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 (2) securities
which a Person or any of such Person's Affiliates or Associates may be deemed to
have the right to acquire pursuant to any merger or other acquisition agreement
between the Company and such Person (or one or more of its Affiliates or
Associates) if such agreement has been approved by the Board of Directors of the
Company prior to there being an Acquiring Person; 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 under this

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Section 1(d)(ii)(B) 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 of the Exchange Act
and (2) is not also then reportable on Schedule 13D under the Exchange Act (or
any comparable or successor report); or

               (iii) which are beneficially owned, directly or indirectly, by
any other Person (or any Affiliate or Associate thereof) with which such Person
or any of such Person's Affiliates or Associates has any agreement, arrangement
or understanding, whether or not in writing (other than customary agreements
with and between underwriters and selling group members with respect to a bona
fide public offering of securities) for the purpose of acquiring, holding,
voting (except to the extent contemplated by the proviso to Section 1(d)(ii)(B))
or disposing of any securities of the Company; PROVIDED, HOWEVER, that in no
case shall an officer or director of the Company be deemed (x) the Beneficial
Owner of any securities beneficially owned by another officer or director of the
Company solely by reason of actions undertaken by such persons in their capacity
as officers or directors of the Company or (y) the Beneficial Owner of
securities held of record by the trustee of any employee benefit plan of the
Company or any Subsidiary of the Company for the benefit of any employee of the
Company or any Subsidiary of the Company, other than the officer or director, by
reason of any influence that such officer or director may have over the voting
of the securities held in the plan.

          (e) "AMEX" shall mean the American Stock Exchange.

          (f) "BUSINESS DAY" shall mean any day other than a Saturday, Sunday or
a day on which banking institutions in New York are authorized or obligated by
law or executive order to close.

          (g) "CLOSE OF BUSINESS" on any given date shall mean 5:00 P.M., Los
Angeles time, on such date; PROVIDED, HOWEVER, that if such date is not a
Business Day it shall mean 5:00 P.M., Los Angeles time, on the next succeeding
Business Day.

          (h) "COMMON SHARES" when used with reference to the Company shall mean
the shares of Common Stock of the Company. Common Shares when used with
reference to any Person other than the Company shall mean the capital stock (or
equity interest) with the greatest voting power of such other Person or, if such
other Person is a Subsidiary of another Person, the Person or Persons which
ultimately control such first-mentioned Person.

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

          (j) "COMPANY" shall mean CVB Financial Corp., a California
corporation, subject to the terms of Section 13(a)(iii)(C) hereof.

          (k) "CURRENT PER SHARE MARKET PRICE" of any security (a "Security" for
purposes of this definition), for all computations other than those made
pursuant to Section 11(a)(iii) hereof, shall mean the average of the daily
closing prices per share of such Security for the thirty (30) consecutive
Trading Days immediately prior to such date, and for purposes of computations
made pursuant to Section 11(a)(iii) hereof, the Current Per Share Market Price

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of any Security on any date shall be deemed to be the average of the daily
closing prices per share of such Security for the ten (10) 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 (i) a dividend or
distribution on such Security payable in shares of such Security or securities
convertible into such shares or (ii) any subdivision, combination or
reclassification of such Security, and prior to the expiration of the applicable
thirty (30) Trading Day or ten (10) Trading Day period, after the ex-dividend
date for such dividend or distribution, or the record date for such subdivision,
combination or reclassification, then, and in each such case, the Current Per
Share Market Price shall be appropriately adjusted to reflect the current market
price per share equivalent of such Security. The closing price for each day
shall be the last sale price, regular way, or, in case no such sale takes place
on such day, the average of the closing bid and asked prices, regular way, in
either case as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the New York
Stock Exchange or, if the Security is not listed or admitted to trading on the
New York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national
securities exchange on which the Security is listed or admitted to trading or,
if the Security is not listed or admitted to trading on any national securities
exchange, the last sale price or, if such last sale price is not reported, the
average of the high bid and low asked prices in the over-the-counter market, as
reported by Nasdaq or such other system then in use, or, if on any such date the
Security is not quoted by any such organization, the average of the closing bid
and asked prices as furnished by a professional market maker making a market in
the Security selected by the Board of Directors of the Company. If on any such
date no market maker is making a market in the Security, the fair value of such
shares on such date as determined in good faith by the Board of Directors of the
Company shall be used. 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 this Section 1(j), as appropriately adjusted to reflect
any stock split, stock dividend or similar transaction occurring after the date
hereof, multiplied by 1000. If the Security is not publicly held or so listed or
traded, Current Per Share Market Price shall mean the fair value per share as
determined in good faith by the Board of Directors of the Company, whose
determination shall be described in a statement filed with the Rights Agent and
shall be conclusive for all purposes.

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

          (m) "DISTRIBUTION DATE" shall mean the earlier of (i) the Close of
Business on the tenth day after the Shares Acquisition Date (or, if the tenth
day after the Shares Acquisition Date occurs before the Record Date, the Close
of Business on the Record Date) or (ii) the Close of Business on the tenth
Business Day (or such later date as may be determined by action of the Company's
Board of Directors) after the date that a tender or exchange offer by any Person
(other than the Company, any Subsidiary of the Company, any employee benefit
plan of the Company or of any Subsidiary of the Company, or any Person or entity
organized, appointed or established by the Company for or pursuant to the terms
of any such plan) is first published or sent or given within the meaning of Rule
14d-2(a) of the General Rules and Regulations under

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the Exchange Act, if, assuming the successful consummation thereof, such Person
would be an Acquiring Person.

          (n) "EQUIVALENT SHARES" shall mean Preferred Shares and any other
class or series of capital stock of the Company which is entitled to the same
rights, privileges and preferences as the Preferred Shares.

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

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

          (q) "EXERCISE PRICE" shall have the meaning set forth in Section 4(a)
hereof.

          (r) "EXPIRATION DATE" shall mean the earliest to occur of: (i) the
Close of Business on the Final Expiration Date, (ii) the Redemption Date, or
(iii) the time at which the Board of Directors orders the exchange of the Rights
as provided in Section 24 hereof.

          (s) "FINAL EXPIRATION DATE" shall mean June 21, 2010.

          (t) "INTERESTED PERSON" with respect to a Transaction shall mean any
Person who (i) is or will become an Acquiring Person if the Transaction were to
be consummated or an Affiliate or Associate of such a Person, and (ii) is, or
directly or indirectly proposed, nominated or financially supported a director
of the Company in office at the time of consideration of the Transaction in
question who was elected by written consent of shareholders.

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

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

          (w) "POST-EVENT TRANSFEREE" shall have the meaning set forth in
Section 7(e) hereof.

          (x) "PREFERRED SHARES" shall mean shares of Series A Participating
Preferred Stock of the Company.

          (y) "PRE-EVENT TRANSFEREE" shall have the meaning set forth in Section
7(e) hereof.

          (z) "PRINCIPAL PARTY" shall have the meaning set forth in Section
13(b) hereof.

          (aa) "RECORD DATE" shall have the meaning set forth in the recitals at
the beginning of this Agreement. (bb) "REDEMPTION DATE" shall have the meaning
set forth in Section 23(a) hereof.

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

          (dd) "RIGHTS AGENT" shall mean U.S. Stock Transfer Corp. or its
successor or replacement as provided in Sections 19 and 21 hereof.

          (ee) "RIGHTS CERTIFICATE" shall mean a certificate substantially in
the form attached hereto as Exhibit B.

          (ff) "RIGHTS DIVIDEND DECLARATION DATE" shall have the meaning set
forth in the recitals at the beginning of this Agreement.

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

          (hh) "SECTION 13 EVENT" shall mean any event described in clause (i),
(ii) or (iii) of Section 13(a) hereof.

          (ii) "SECURITIES ACT" shall mean the Securities Act of 1933, as
amended.

          (jj) "SHARES ACQUISITION DATE" shall mean the first date of public
announcement (which, for purposes of this definition, shall include, without
limitation, a report filed pursuant to Section 13(d) under the Exchange Act) by
the Company or an Acquiring Person that an Acquiring Person has become such;
PROVIDED THAT, if such Person is determined not to have become an Acquiring
Person pursuant to Section 1(a) hereof, then no Shares Acquisition Date shall be
deemed to have occurred.

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

          (ll) "SUBSIDIARY" of any Person shall mean any corporation or other
entity of which an amount of voting securities sufficient to elect a majority of
the directors or Persons having similar authority of such corporation or other
entity is beneficially owned, directly or indirectly, by such Person, or any
corporation or other entity otherwise controlled by such Person.

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

          (nn) "SUMMARY OF RIGHTS" shall mean a summary of this Agreement
substantially in the form attached hereto as Exhibit C.

          (oo) "TOTAL EXERCISE PRICE" shall have the meaning set forth in
Section 4(a) hereof.

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

               (qq) "TRANSACTION" shall mean any merger, consolidation or sale
of assets described in Section 13(a) hereof or any acquisition of Common Shares
which would result in a Person becoming an Acquiring Person.

               (rr) A "TRIGGERING EVENT" shall be deemed to have occurred upon
any Person, becoming an Acquiring Person.

     Section 2. APPOINTMENT OF RIGHTS AGENT. The Company hereby appoints the
Rights Agent to act as agent for the Company and the holders of the Rights (who,
in accordance with Section 3 hereof, shall prior to the Distribution Date also
be the holders of the Common Shares) in accordance with the terms and conditions
hereof, and the Rights Agent hereby accepts such appointment. The Company may
from time to time appoint such co-Rights Agents as it may deem necessary or
desirable.

     Section 3. ISSUANCE OF RIGHTS CERTIFICATES.

          (a) Until the Distribution Date, (i) the Rights will be evidenced
(subject to the provisions of Sections 3(b) and 3(c) hereof) by the certificates
for Common Shares registered in the names of the holders thereof (which
certificates shall also be deemed to be Rights Certificates) and not by separate
Rights Certificates and (ii) the right to receive Rights Certificates will be
transferable only in connection with the transfer of Common Shares. Until the
earlier of the Distribution Date or the Expiration Date, the surrender for
transfer of certificates for Common Shares shall also constitute the surrender
for transfer of the Rights associated with the Common Shares represented
thereby. 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, postage-prepaid mail, to each record holder of Common Shares as of
the Close of Business on the Distribution Date, at the address of such holder
shown on the records of the Company, a Rights Certificate evidencing one Right
for each Common Share so held, subject to adjustment as provided herein. In the
event that an adjustment in the number of Rights per Common Share has been made
pursuant to Section 11 hereof, then at the time of distribution of the Rights
Certificates, the Company shall make the necessary and appropriate rounding
adjustments (in accordance with Section 14(a) hereof) so that Rights
Certificates representing only whole numbers of Rights are distributed and cash
is paid in lieu of any fractional Rights. As of the Distribution Date, the
Rights will be evidenced solely by such Rights Certificates and may be
transferred by the transfer of the Rights Certificates as permitted hereby,
separately and apart from any transfer of Common Shares, and the holders of such
Rights Certificates as listed in the records of the Company or any transfer
agent or registrar for the Rights shall be the record holders thereof.

          (b) On the Record Date or as soon as practicable thereafter, the
Company will send a copy of the Summary of Rights by first-class,
postage-prepaid mail, to each record holder

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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's transfer agent and
registrar. With respect to certificates for Common Shares 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 the
Summary of Rights. Until the Distribution Date (or, if earlier, the Expiration
Date), the surrender for transfer of any certificate for Common Shares
outstanding on the Record Date, with or without a copy of the Summary of Rights,
shall also constitute the transfer of the Rights associated with the Common
Shares represented thereby.

          (c) Unless the Board of Directors by resolution adopted at or before
the time of the issuance of any Common Shares specifies to the contrary, Rights
shall be issued in respect of all Common Shares that are issued after the Record
Date but prior to the earlier of the Distribution Date or the Expiration Date
or, in certain circumstances provided in Section 22 hereof, after the
Distribution Date. Certificates representing such Common Shares shall also be
deemed to be certificates for Rights, and shall bear the following legend:

     THIS CERTIFICATE ALSO EVIDENCES AND ENTITLES THE HOLDER HEREOF TO CERTAIN
     RIGHTS AS SET FORTH IN A RIGHTS AGREEMENT BETWEEN CVB FINANCIAL CORP. AND
     U.S. STOCK TRANSFER CORP., AS THE RIGHTS AGENT, DATED AS OF JUNE 21, 2000,
     (THE "RIGHTS AGREEMENT"), THE TERMS OF WHICH ARE HEREBY INCORPORATED HEREIN
     BY REFERENCE AND A COPY OF WHICH IS ON FILE AT THE PRINCIPAL EXECUTIVE
     OFFICES OF CVB FINANCIAL CORP. UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN
     THE RIGHTS AGREEMENT, SUCH RIGHTS WILL BE EVIDENCED BY SEPARATE
     CERTIFICATES AND WILL NO LONGER BE EVIDENCED BY THIS CERTIFICATE. CVB
     FINANCIAL CORP. WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A COPY OF THE
     RIGHTS AGREEMENT WITHOUT CHARGE AFTER RECEIPT OF A WRITTEN REQUEST
     THEREFOR. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT,
     RIGHTS ISSUED TO, OR HELD BY, ANY PERSON WHO IS, WAS OR BECOMES AN
     ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE
     DEFINED IN THE RIGHTS AGREEMENT), WHETHER CURRENTLY HELD BY OR ON BEHALF OF
     SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, MAY BECOME NULL AND VOID.

With respect to such certificates containing the foregoing legend, until the
earlier of (i) the Distribution Date or (ii) the Expiration Date, the Rights
associated with the Common Shares 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 represented thereby.

          (d) In the event that the Company purchases or acquires any Common
Shares after the Record Date but prior to the Distribution Date, any Rights
associated with such Common Shares shall be deemed canceled and retired so that
the Company shall not be entitled to exercise any Rights associated with the
Common Shares which are no longer outstanding.

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     Section 4. FORM OF RIGHTS CERTIFICATES.

          (a) The Rights Certificates (and the forms of election to purchase
Common Shares and of assignment to be printed on the reverse thereof) shall be
substantially in the form of Exhibit B hereto and may have such marks of
identification or designation and such legends, summaries or endorsements
printed thereon as the Company may deem appropriate and as are not inconsistent
with the provisions of this Agreement, or as may be required to comply with any
applicable law or with any rule or regulation made pursuant thereto or with any
rule or regulation of any stock exchange or automated quotation system, on which
the Rights may from time to time be listed or included, or to conform to usage.
Subject to the provisions of Section 11 and Section 22 hereof, the Rights
Certificates, whenever distributed, shall be dated as of the Record Date (or in
the case of Rights issued with respect to Common Shares issued by the Company
after the Record Date, as of the date of issuance of such Common Shares) and on
their face shall entitle the holders thereof to purchase such number of
one-thousandths of a Preferred Share as shall be set forth therein at the price
set forth therein (such exercise price per one one-thousandth of a Preferred
Share being hereinafter referred to as the "EXERCISE PRICE" and the aggregate
Exercise Price of all Preferred Shares issuable upon exercise of one Right being
hereinafter referred to as the "TOTAL EXERCISE PRICE"), but the number and type
of securities purchasable upon the exercise of each Right and the Exercise Price
shall be subject to adjustment as provided herein.

          (b) Any Rights Certificate issued pursuant to Section 3(a) or Section
22 hereof that represents Rights beneficially owned by: (i) an Acquiring Person
or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an
Acquiring Person (or of any such Associate or Affiliate) who becomes a
transferee after the Acquiring Person becomes such or (iii) a transferee of an
Acquiring Person (or of any such Associate or Affiliate) who becomes a
transferee prior to or concurrently with the Acquiring Person becoming such and
receives such Rights pursuant to either (A) a transfer (whether or not for
consideration) from the Acquiring Person to holders of equity interests in such
Acquiring Person or to any Person with whom such Acquiring Person has any
continuing agreement, arrangement or understanding regarding the transferred
Rights or (B) a transfer which the Company's Board of Directors has determined
is part of a plan, arrangement or understanding which has as a primary purpose
or effect avoidance of Section 7(e) hereof, and any Rights Certificate issued
pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement
or adjustment of any other Rights Certificate referred to in this sentence,
shall contain (to the extent feasible) the following legend:

     THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY
     OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR
     ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
     AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED
     HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION
     7(e) OF THE RIGHTS AGREEMENT.

     Section 5. COUNTERSIGNATURE AND REGISTRATION.

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

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

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

          (a) Subject to the provisions of Sections 7(e), 14 and 24 hereof, at
any time after the Close of Business on the Distribution Date, and at or prior
to the Close of Business on the Expiration Date, any Rights Certificate or
Rights Certificates may be transferred, split up, combined or exchanged for
another Rights Certificate or Rights Certificates, entitling the registered
holder to purchase a like number of one-thousandths of a Preferred Share (or,
following a Triggering Event, other securities, cash or other assets, as the
case may be) as the Rights Certificate or Rights Certificates surrendered then
entitled such holder to purchase. Any registered holder desiring to transfer,
split up, combine or exchange any Rights Certificate or Rights Certificates
shall make such request in writing delivered to the Rights Agent, and shall
surrender the Rights Certificate or Rights Certificates to be transferred, split
up, combined or exchanged at the principal office of the Rights Agent. Neither
the Rights Agent nor the Company shall be obligated to take any action
whatsoever with respect to the transfer of any such surrendered Rights
Certificate until the registered holder shall have completed and signed the
certificate contained in the form of assignment on the reverse side of such
Rights Certificate and shall have provided such additional evidence of the
identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or
Associates thereof as the Company shall reasonably request. Thereupon the Rights
Agent shall, subject to Sections 7(e), 14 and 24 hereof, countersign and deliver
to the person entitled thereto a Rights Certificate or Rights Certificates, as
the case may be, as so requested. The Company may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer, split up, combination or exchange of Rights
Certificates.

                                       10
<PAGE>   12

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

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

          (a) Subject to Sections 7(e), 23(b), 23(c), 24(g), 27(a), 27(b) and
24(b) hereof, the registered holder of any Rights Certificate may exercise the
Rights evidenced thereby (except as otherwise provided herein) in whole or in
part at any time after the Distribution Date and prior to the Close of Business
on the Expiration Date by surrender of the Rights 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
Exercise Price for each one-thousandth of a Preferred Share (or, following a
Triggering Event, other securities, cash or other assets as the case may be) as
to which the Rights are exercised.

          (b) The Exercise Price for each one-thousandth of a Preferred Share
issuable pursuant to the exercise of a Right shall initially be fifty dollars
($50.00), shall be subject to adjustment from time to time as provided in
Sections 11 and 13 hereof and shall be payable in lawful money of the United
States of America in accordance with paragraph (c) below.

          (c) Upon receipt of a Rights Certificate representing exercisable
Rights, with the form of election to purchase duly executed, accompanied by
payment of the Exercise Price for the number of one-thousandths of a Preferred
Share (or, following a Triggering Event, other securities, cash or other assets
as the case may be) to be purchased and an amount equal to any applicable
transfer tax required to be paid by the holder of such Rights Certificate in
accordance with Section 9(e) hereof, the Rights Agent shall, subject to Section
20(k) hereof, thereupon promptly (i) (A) requisition from any transfer agent of
the Preferred Shares (or make available, if the Rights Agent is the transfer
agent for the Preferred Shares) a certificate or certificates for the number of
one-thousandths of a Preferred Share (or, following a Triggering Event, other
securities, cash or other assets as the case may be) to be purchased and the
Company hereby irrevocably authorizes its transfer agent to comply with all such
requests or (B) if the Company shall have elected to deposit the total number of
one-thousandths of a Preferred Share (or, following a Triggering Event, other
securities, cash or other assets as the case may be) issuable upon exercise of
the Rights hereunder with a depositary agent, requisition from the depositary
agent depositary receipts representing such number of one-thousandths of a
Preferred Share (or, following a Triggering Event, other securities, cash or
other assets as the case may be) as are to be purchased (in which case
certificates for the Preferred Shares (or, following a Triggering Event, other
securities, cash or other assets as the case may be) represented by such
receipts shall be deposited by the transfer agent with the depositary agent) and
the Company hereby directs the depositary agent to comply with such request,
(ii) when appropriate, requisition from the Company the amount of cash to be
paid in lieu of issuance of fractional shares in accordance

                                       11
<PAGE>   13

with Section 14 hereof, (iii) after receipt of such certificates or depositary
receipts, cause the same to be delivered to or upon the order of the registered
holder of such Rights Certificate, registered in such name or names as may be
designated by such holder and (iv) when appropriate, after receipt thereof,
deliver such cash to or upon the order of the registered holder of such Rights
Certificate. The payment of the Exercise Price (as such amount may be reduced
(including to zero) pursuant to Section 11(a)(iii) hereof) and an amount equal
to any applicable transfer tax required to be paid by the holder of such Rights
Certificate in accordance with Section 9(e) hereof, may be made in cash or by
certified bank check, cashier's check or bank draft payable to the order of the
Company. In the event that the Company is obligated to issue securities of the
Company other than Preferred Shares, pay cash and/or distribute other property
pursuant to Section 11(a) hereof, the Company will make all arrangements
necessary so that such other securities, cash and/or other property are
available for distribution by the Rights Agent, if and when appropriate.

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

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

          (f) Notwithstanding anything in this Agreement to the contrary,
neither the Rights Agent nor the Company shall be obligated to undertake any
action with respect to a registered holder upon the occurrence of any purported
exercise as set forth in this Section 7 unless such registered holder shall, in
addition to having complied with the requirements of Section 7(a), have (i)
completed and signed the certificate contained in the form of election to

                                       12
<PAGE>   14

purchase set forth on the reverse side of the Rights Certificate surrendered for
such exercise and (ii) provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
thereof as the Company shall reasonably request.

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

     Section 9. RESERVATION AND AVAILABILITY OF PREFERRED SHARES.

          (a) The Company covenants and agrees that it will use its best efforts
to cause to be reserved and kept available out of its authorized and unissued
Preferred Shares not reserved for another purpose (and, following the occurrence
of a Triggering Event, out of its authorized and unissued Common Shares and/or
other securities), the number of Preferred Shares (and, following the occurrence
of the Triggering Event, Common Shares and/or other securities) that will be
sufficient to permit the exercise in full of all outstanding Rights.

          (b) If the Company shall hereafter list any of its Preferred Shares on
a national securities exchange, then so long as the Preferred Shares (and,
following the occurrence of a Triggering Event, Common Shares and/or other
securities) issuable and deliverable upon exercise of the Rights may be listed
on such exchange, the Company shall use its best efforts to cause, from and
after such time as the Rights become exercisable (but only to the extent that it
is reasonably likely that the Rights will be exercised), all shares reserved for
such issuance to be listed on such exchange upon official notice of issuance
upon such exercise.

          (c) The Company shall use its best efforts to (i) file, as soon as
practicable following the earliest date after the first occurrence of a
Triggering Event in which the consideration to be delivered by the Company upon
exercise of the Rights is described in Section 11(a)(ii) or Section 11(a)(iii)
hereof, or as soon as is required by law following the Distribution Date, as the
case may be, a registration statement under the Securities Act with respect to
the securities purchasable upon exercise of the Rights on an appropriate form,
(ii) cause such registration statement to become effective as soon as
practicable after such filing and (iii) cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of the
Securities Act) until the earlier of (A) the date as of which the Rights are no
longer exercisable for such securities and (B) the date of expiration of the
Rights. The Company may temporarily suspend, for a period not to exceed ninety
(90) days after the date set forth in clause (i) of the first sentence of this
Section 9(c), the exercisability of the Rights in order to prepare and file such
registration statement and permit it to become effective. Upon any such
suspension, the Company shall issue a public announcement stating, and notify
the Rights Agent,

                                       13
<PAGE>   15

that the exercisability of the Rights has been temporarily suspended, as well as
a public announcement and notification to the Rights Agent at such time as the
suspension is no longer in effect. The Company will also take such action as may
be appropriate under, or to ensure compliance with, the securities or "blue sky"
laws of the various states in connection with the exercisability of the Rights.
Notwithstanding any provision of this Agreement to the contrary, the Rights
shall not be exercisable in any jurisdiction, unless the requisite qualification
in such jurisdiction shall have been obtained, or an exemption therefrom shall
be available, and until a registration statement has been declared effective.

          (d) The Company covenants and agrees that it will take all such action
as may be necessary to ensure that all Preferred Shares (or other securities of
the Company) delivered upon exercise of Rights shall, at the time of delivery of
the certificates for such securities (subject to payment of the Exercise Price),
be duly and validly authorized and issued and fully paid and nonassessable
shares.

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

     Section 10. RECORD DATE. Each Person in whose name any certificate for a
number of one-thousandths of a Preferred Share (or other securities of the
Company) is issued upon the exercise of Rights shall for all purposes be deemed
to have become the holder of record of the Preferred Shares (or other securities
of the Company) represented thereby on, and such certificate shall be dated, the
date upon which the Rights Certificate evidencing such Rights was duly
surrendered and payment of the Exercise Price with respect to which the Rights
have been exercised (and any applicable transfer taxes) was made; PROVIDED,
HOWEVER, that if the date of such surrender and payment is a date upon which the
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 transfer books of the Company are
open. Prior to the exercise of the Rights evidenced thereby, the holder of a
Rights Certificate shall not be entitled to any rights of a holder of Preferred
Shares (or other securities of the Company) 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.

                                       14
<PAGE>   16

     Section 11. ADJUSTMENT OF EXERCISE PRICE, NUMBER OF SHARES OR NUMBER OF
RIGHTS. The Exercise Price, the number and kind of shares or other property
covered by each Right and the number of Rights outstanding are subject to
adjustment from time to time as provided in this Section 11.

          (a) (i) Anything in this Agreement to the contrary notwithstanding, 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 (by reverse stock split or otherwise) 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), then, in each such event, except as otherwise
provided in this Section 11 and Section 7(e) hereof: (1) the Exercise Price in
effect at the time of the record date for such dividend or of the effective date
of such subdivision, combination or reclassification shall be adjusted so that
the Exercise Price thereafter shall equal the result obtained by dividing the
Exercise Price in effect immediately prior to such time by a fraction (the
"ADJUSTMENT FRACTION"), the numerator of which shall be the total number of
Preferred Shares (or shares of capital stock issued in such reclassification of
the Preferred Shares) outstanding immediately following such time and the
denominator of which shall be the total number of Preferred Shares outstanding
immediately prior to such time; 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 such Right; and (2) the number of one-thousandths of a Preferred
Share (or share of such other capital stock) issuable upon the exercise of each
Right shall equal the number of one-thousandths of a Preferred Share (or share
of such other capital stock) as was issuable upon exercise of a Right
immediately prior to the occurrence of the event described in clauses (A)-(D) of
this Section 11(a)(i), multiplied by the Adjustment Fraction; provided, however,
that, no such adjustment shall be made pursuant to this Section 11(a)(i) to the
extent that there shall have simultaneously occurred an event described in
clause (A), (B), (C) or (D) of Section 11(n) with a proportionate adjustment
being made thereunder. Each Common Share that shall become outstanding after an
adjustment has been made pursuant to this Section 11(a)(i) shall have associated
with it the number of Rights, exercisable at the Exercise Price and for the
number of one-thousandths of a Preferred Share (or shares of such other capital
stock) as one Common Share has associated with it immediately following the
adjustment made pursuant to this Section 11(a)(i).

               (ii) Subject to Section 24 of this Agreement, in the event a
Triggering Event shall have occurred, then promptly following such Triggering
Event each holder of a Right, except as provided in Section 7(e) hereof, shall
thereafter have the right to receive for each Right, upon exercise thereof in
accordance with the terms of this Agreement and payment of the Exercise Price in
effect immediately prior to the occurrence of the Triggering Event, in lieu of a
number of one-thousandths of a Preferred Share, such number of Common Shares of
the Company as shall equal the result obtained by multiplying the Exercise Price
in effect immediately prior to the occurrence of the Triggering Event by the
number of one-thousandths of a Preferred Share for which a Right was exercisable
(or would have been exercisable if the Distribution Date had occurred)
immediately prior to the first occurrence of a Triggering Event, and dividing
that product by 50% of the Current Per Share Market Price for Common Shares on

                                       15
<PAGE>   17

the date of occurrence of the Triggering Event; provided, however, that the
Exercise Price and the number of Common Shares of the Company so receivable upon
exercise of a Right shall be subject to further adjustment as appropriate in
accordance with Section 11(e) hereof to reflect any events occurring in respect
of the Common Shares of the Company after the occurrence of the Triggering
Event.

               (iii) In lieu of issuing Common Shares in accordance with Section
11(a)(ii) hereof, the Company may, if the Company's Board of Directors
determines that such action is necessary or appropriate and not contrary to the
interest of holders of Rights or, in the event that the number of Common Shares
which are authorized by the Company's Articles of Incorporation but not
outstanding or reserved for issuance for purposes other than upon exercise of
the Rights are not sufficient to permit the exercise in full of the Rights, or
if any necessary regulatory approval for such issuance has not been obtained by
the Company, the Company shall: (A) determine the excess of (1) the value of the
Common Shares issuable upon the exercise of a Right (the "CURRENT VALUE") over
(2) the Exercise Price (such excess, the "SPREAD") and (B) with respect to each
Right, make adequate provision to substitute for such Common Shares, upon
exercise of the Rights, (1) cash, (2) a reduction in the Exercise Price, (3)
other equity securities of the Company (including, without limitation, shares or
units of shares of any series of preferred stock which the Company's Board of
Directors has deemed to have the same value as Common Shares (such shares or
units of shares of preferred stock are herein called "COMMON STOCK
EQUIVALENTS")), except to the extent that the Company has not obtained any
necessary shareholder or regulatory approval for such issuance, (4) debt
securities of the Company, except to the extent that the Company has not
obtained any necessary shareholder or regulatory approval for such issuance, (5)
other assets or (6) any combination of the foregoing, having an aggregate value
equal to the Current Value, where such aggregate value has been determined by
the Company's Board of Directors based upon the advice of a nationally
recognized investment banking firm selected by the Company's Board of Directors;
PROVIDED, HOWEVER, if the Company shall not have made adequate provision to
deliver value pursuant to clause (B) above within thirty (30) days following the
later of (x) the first occurrence of a Triggering Event and (y) the date on
which the Company's right of redemption pursuant to Section 23(a) expires (the
later of (x) and (y) being referred to herein as the "SECTION 11(a)(ii) TRIGGER
DATE"), then the Company shall be obligated to deliver, upon the surrender for
exercise of a Right and without requiring payment of the Exercise Price, Common
Shares (to the extent available), except to the extent that the Company has not
obtained any necessary shareholder or regulatory approval for such issuance, and
then, if necessary, cash, which shares and/or cash have an aggregate value equal
to the Spread. If the Company's Board of Directors shall determine in good faith
that it is likely that sufficient additional Common Shares could be authorized
for issuance upon exercise in full of the Rights or that any necessary
regulatory approval for such issuance will be obtained, the thirty (30) day
period set forth above may be extended to the extent necessary, but not more
than ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that
the Company may seek shareholder approval for the authorization of such
additional shares or take action to obtain such regulatory approval (such
period, as it may be extended, the "SUBSTITUTION PERIOD"). To the extent that
the Company determines that some action need be taken pursuant to the first
and/or second sentences of this Section 11(a)(iii), the Company (x) shall
provide, subject to Section 7(e) hereof, that such action shall apply uniformly
to all outstanding Rights and (y) may suspend the exercisability of the Rights
until the expiration of the Substitution Period in order to seek any
authorization of additional shares, to

                                       16
<PAGE>   18

take any action to obtain any required regulatory approval and/or to decide the
appropriate form of distribution to be made pursuant to such first sentence and
to determine the value thereof. In the event of any such suspension, the Company
shall issue a public announcement stating that the exercisability of the Rights
has been temporarily suspended, as well as a public announcement at such time as
the suspension is no longer in effect. For purposes of this Section 11(a)(iii),
the value of the Common Shares shall be the Current Per Share Market Price of
the Common Shares on the Section 11(a)(ii) Trigger Date and the value of any
Common Stock Equivalent shall be deemed to have the same value as the Common
Shares on such date.

          (b) In case the Company shall, at any time after the date of this
Agreement, fix a record date for the issuance of rights, options or warrants to
all holders of Preferred Shares entitling such holders (for a period expiring
within forty-five (45) calendar days after such record date) to subscribe for or
purchase Preferred Shares or Equivalent Shares or securities convertible into
Preferred Shares or Equivalent Shares at a price per share (or having a
conversion price per share, if a security convertible into Preferred Shares or
Equivalent Shares) less than the then Current Per Share Market Price of the
Preferred Shares or Equivalent Shares on such record date, then, in each such
case, the Exercise Price to be in effect after such record date shall be
determined by multiplying the Exercise Price in effect immediately prior to such
record date by a fraction, the numerator of which shall be the number of
Preferred Shares and Equivalent Shares (if any) outstanding on such record date,
plus the number of Preferred Shares or Equivalent Shares, as the case may be,
which the aggregate offering price of the total number of Preferred Shares or
Equivalent Shares, as the case may be, to be offered or issued (and/or the
aggregate initial conversion price of the convertible securities to be offered
or issued) would purchase at such current market price, and the denominator of
which shall be the number of Preferred Shares and Equivalent Shares (if any)
outstanding on such record date, plus the number of additional Preferred Shares
or Equivalent Shares, as the case may be, to be offered for subscription or
purchase (or into which the convertible securities so to be offered are
initially convertible); PROVIDED, HOWEVER, that in no event shall the
consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the shares of capital stock of the Company issuable upon
exercise of one Right. In case such subscription price may be paid in a
consideration part or all of which shall be in a form other than cash, the value
of such consideration shall be as determined in good faith by the Company's
Board of Directors, whose determination shall be described in a statement filed
with the Rights Agent and shall be binding on the Rights Agent and the holders
of the Rights. Preferred Shares and Equivalent 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 Exercise Price shall be adjusted to be the Exercise Price
which would then be in effect if such record date had not been fixed.

          (c) In case the Company shall, at any time after the date of this
Agreement, fix a record date for the making of a distribution to all holders of
the Preferred Shares or of any class or series of Equivalent 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, if any, or
a dividend payable in Preferred Shares) or subscription rights, options or
warrants (excluding those referred to in Section 11(b)), then, in each such
case, the Exercise Price to be in effect after such

                                       17
<PAGE>   19

record date shall be determined by multiplying the Exercise Price in effect
immediately prior to such record date by a fraction, the numerator of which
shall be the Current Per Share Market Price of a Preferred Share or an
Equivalent Share on such record date, less the fair market value per Preferred
Share or Equivalent 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) of the portion of the cash, assets or evidences of
indebtedness so to be distributed or of such subscription rights or warrants
applicable to a Preferred Share or Equivalent Share, as the case may be, and the
denominator of which shall be such Current Per Share Market Price of a Preferred
Share or Equivalent Share 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
issuable 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 Exercise Price shall be adjusted to be the Exercise Price which
would have been in effect if such record date had not been fixed.

          (d) Anything herein to the contrary notwithstanding, no adjustment in
the Exercise Price shall be required unless such adjustment would require an
increase or decrease of at least 1% in the Exercise Price; PROVIDED, HOWEVER,
that any adjustments which by reason of this Section 11(d) 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 ten-thousandth of a Common Share or other share or one
hundred-thousandth of a Preferred Share, as the case may be. Notwithstanding the
first sentence of this Section 11(d), any adjustment required by this Section 11
shall be made no later than the earlier of (i) three (3) years from the date of
the transaction which requires such adjustment or (ii) the Expiration Date.

          (e) If as a result of an adjustment made pursuant to Section 11(a) or
13(a) hereof, the holder of any Right thereafter exercised shall become entitled
to receive any shares of capital stock other than Preferred Shares, thereafter
the number of such other shares so receivable upon exercise of any Right and, if
required, the Exercise Price thereof, shall be subject to adjustment from time
to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Preferred Shares contained in Sections 11(a),
11(b), 11(c), 11(d), 11(g), 11(h), 11(i), 11(j), 11(k) and 11(l), and the
provisions of Sections 7, 9, 10, 13 and 14 with respect to the Preferred Shares
shall apply on like terms to any such other shares.

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

          (g) Unless the Company shall have exercised its election as provided
in Section 11(h), upon each adjustment of the Exercise Price as a result of the
calculations made in Section 11(b) and (c), each Right outstanding immediately
prior to the making of such adjustment shall thereafter evidence the right to
purchase, at the adjusted Exercise Price, that number of Preferred Shares
(calculated to the nearest one hundred-thousandth of a share) obtained by (i)
multiplying (x) the number of Preferred Shares covered by a Right immediately
prior to this adjustment, by (y) the Exercise Price in effect immediately prior
to such adjustment of the Exercise Price, and

                                       18
<PAGE>   20

(ii) dividing the product so obtained by the Exercise Price in effect
immediately after such adjustment of the Exercise Price.

          (h) The Company may elect on or after the date of any adjustment of
the Exercise Price as a result of the calculations made in Section 11(b) or (c)
to adjust the number of Rights, in substitution for any adjustment in the number
of Preferred Shares purchasable upon the exercise of a Right. Each of the Rights
outstanding after such adjustment of the number of Rights shall be exercisable
for the number of one-thousandths 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 hundred-thousandth) obtained by dividing
the Exercise Price in effect immediately prior to adjustment of the Exercise
Price by the Exercise Price in effect immediately after adjustment of the
Exercise 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 Exercise Price is adjusted or any day thereafter,
but, if the Rights Certificates have been issued, shall be at least ten (10)
days later than the date of the public announcement. If Rights Certificates have
been issued, upon each adjustment of the number of Rights pursuant to this
Section 11(h), the Company shall, as promptly as practicable, cause to be
distributed to holders of record of Rights Certificates on such record date
Rights Certificates evidencing, subject to Section 14 hereof, the additional
Rights to which such holders shall be entitled as a result of such adjustment,
or, at the option of the Company, shall cause to be distributed to such holders
of record in substitution and replacement for the Rights Certificates held by
such holders prior to the date of adjustment, and upon surrender thereof, if
required by the Company, new Rights Certificates evidencing all the Rights to
which such holders shall be entitled after such adjustment. Rights Certificates
so to be distributed shall be issued, executed and countersigned in the manner
provided for herein (and may bear, at the option of the Company, the adjusted
Exercise Price) and shall be registered in the names of the holders of record of
Rights Certificates on the record date specified in the public announcement.

          (i) Irrespective of any adjustment or change in the Exercise Price or
the number of Preferred Shares issuable upon the exercise of the Rights, the
Rights Certificates theretofore and thereafter issued may continue to express
the Exercise Price per one one-thousandth of a Preferred Share and the number of
one-thousandths of a Preferred Share which were expressed in the initial Rights
Certificates issued hereunder.

          (j) Before taking any action that would cause an adjustment reducing
the Exercise Price below the par or stated value, if any, of the number of
one-thousandths of a Preferred Share 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 as
fully paid and nonassessable shares such number of one-thousandths of a
Preferred Share at such adjusted Exercise Price.

          (k) In any case in which this Section 11 shall require that an
adjustment in the Exercise Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event the issuing to the holder of any Right exercised after such record date of
the number of one-thousandths of a Preferred Share and other capital stock or
securities of the Company, if any, issuable upon such exercise over and above
the number of one-thousandths of a Preferred Share and other capital stock or

                                       19
<PAGE>   21

securities of the Company, if any, issuable upon such exercise on the basis of
the Exercise Price in effect prior to such adjustment; PROVIDED, HOWEVER, that
the Company shall deliver to such holder a due bill or other appropriate
instrument evidencing such holder's right to receive such additional shares
(fractional or otherwise) upon the occurrence of the event requiring such
adjustment.

          (l) Anything in this Section 11 to the contrary notwithstanding, prior
to the Distribution Date, the Company shall be entitled to make such reductions
in the Exercise Price, in addition to those adjustments expressly required by
this Section 11, as and to the extent that it in its sole discretion shall
determine to be advisable in order that any (i) consolidation or subdivision of
the Preferred or Common Shares, (ii) issuance wholly for cash of any Preferred
or Common Shares at less than the current market price, (iii) issuance wholly
for cash of Preferred or Common Shares or securities which by their terms are
convertible into or exchangeable for Preferred or Common Shares, (iv) stock
dividends or (v) issuance of rights, options or warrants referred to in this
Section 11, hereafter made by the Company to holders of its Preferred or Common
Shares shall not be taxable to such shareholders.

          (m) The Company covenants and agrees that, after the Distribution
Date, it will not, except as permitted by Sections 23, 24 or 27 hereof, take (or
permit to be taken) any action if at the time such action is taken it is
reasonably foreseeable that such action will diminish substantially or otherwise
eliminate the benefits intended to be afforded by the Rights.

          (n) In the event the Company shall at any time after the date of this
Agreement (A) declare a dividend on the Common Shares payable in Common Shares,
(B) subdivide the outstanding Common Shares, (C) combine the outstanding Common
Shares (by reverse stock split or otherwise) into a smaller number of Common
Shares, or (D) issue any shares of its capital stock in a reclassification of
the Common Shares (including any such reclassification in connection with a
consolidation or merger in which the Company is the continuing or surviving
corporation), then, in each such event, except as otherwise provided in this
Section 11(a) and Section 7(e) hereof: (1) each Common Share (or shares of
capital stock issued in such reclassification of the Common Shares) outstanding
immediately following such time shall have associated with it the number of
Rights as were associated with one Common Share immediately prior to the
occurrence of the event described in clauses (A)-(D) above; (2) the Exercise
Price in effect at the time of the record date for such dividend or of the
effective date of such subdivision, combination or reclassification shall be
adjusted so that the Exercise Price thereafter shall equal the result obtained
by multiplying the Exercise Price in effect immediately prior to such time by a
fraction, the numerator of which shall be the total number of Common Shares
outstanding immediately prior to the event described in clauses (A)-(D) above,
and the denominator of which shall be the total number of Common Shares
outstanding immediately after such event; 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 such Right; and (3) the number of one-thousandths of a
Preferred Share (or shares of such other capital stock) issuable upon the
exercise of each Right outstanding after such event shall equal the number of
one-thousandths of a Preferred Share (or shares of such other capital stock) as
were issuable with respect to one Right immediately prior to such event. Each
Common Share that shall become outstanding after an adjustment has been made

                                       20
<PAGE>   22

pursuant to this Section 11(n) shall have associated with it the number of
Rights, exercisable at the Exercise Price and for the number of one-thousandths
of a Preferred Share (or shares of such other capital stock) as one Common Share
has associated with it immediately following the adjustment made pursuant to
this Section 11(n). If an event occurs which would require an adjustment under
both this Section 11(n) and Section 11(a)(ii) hereof, the adjustment provided
for in this Section 11(n) shall be in addition to, and shall be made prior to,
any adjustment required pursuant to Section 11(a)(ii) hereof.

     Section 12. CERTIFICATE OF ADJUSTED EXERCISE PRICE OR NUMBER OF SHARES.
Whenever an adjustment is made as provided in Sections 11 and 13 hereof, the
Company shall promptly (a) prepare a certificate setting forth such adjustment
and a brief statement of the facts accounting for such adjustment, (b) file with
the Rights Agent and with each transfer agent for the Preferred Shares a copy of
such certificate and (c) mail a brief summary thereof to each holder of a Rights
Certificate in accordance with Section 26 hereof. Notwithstanding the foregoing
sentence, the failure of the Company to make such certification or give such
notice shall not affect the validity of such adjustment or the force or effect
of the requirement for such adjustment. The Rights Agent shall be fully
protected in relying on any such certificate and on any adjustment contained
therein and shall not be deemed to have knowledge of such adjustment unless and
until it shall have received such certificate.

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

          (a) In the event that, following a Triggering Event, directly or
indirectly:

               (i) the Company shall consolidate with, or merge with and into,
any other Person (other than a wholly-owned Subsidiary of the Company in a
transaction the principal purpose of which is to change the state of
incorporation of the Company and which complies with Section 11(m) hereof);

               (ii) any Person shall consolidate with the Company, or merge with
and into the Company and the Company shall be the continuing or surviving
corporation of such consolidation or merger and, in connection with such merger,
all or part of the Common Shares shall be changed into or exchanged for stock or
other securities of any other person (or the Company); or

               (iii) the Company shall sell or otherwise transfer (or one or
more of its Subsidiaries shall sell or otherwise transfer), in one or more
transactions, assets or earning power aggregating 50% or more of the assets or
earning power of the Company and its Subsidiaries (taken as a whole) to any
other Person or Persons (other than the Company or one or more of its wholly
owned Subsidiaries in one or more transactions, each of which individually (and
together) complies with Section 11(m) hereof), then, concurrent with and in each
such case,

                    (A) each holder of a Right (except as provided in Section
7(e) hereof) shall thereafter have the right to receive, upon the exercise
thereof at a price equal to the Total Exercise Price applicable immediately
prior to the occurrence of the Section 13 Event in accordance with the terms of
this Agreement, such number of validly authorized and issued, fully paid,

                                       21
<PAGE>   23

nonassessable and freely tradeable Common Shares of the Principal Party (as
hereinafter defined), free of any liens, encumbrances, rights of first refusal
or other adverse claims, as shall be equal to the result obtained by dividing
such Total Exercise Price by 50% of the Current Per Share Market Price of the
Common Shares of such Principal Party on the date of consummation of such
Section 13 Event, PROVIDED, HOWEVER, that the Exercise Price and the number of
Common Shares of such Principal Party so receivable upon exercise of a Right
shall be subject to further adjustment as appropriate in accordance with Section
11(e) hereof;

                    (B) such Principal Party shall thereafter be liable for, and
shall assume, by virtue of such Section 13 Event, all the obligations and duties
of the Company pursuant to this Agreement;

                    (C) the term "Company" shall thereafter be deemed to refer
to such Principal Party, it being specifically intended that the provisions of
Section 11 hereof shall apply only to such Principal Party following the first
occurrence of a Section 13 Event;

                    (D) such Principal Party shall take such steps (including,
but not limited to, the reservation of a sufficient number of its Common Shares)
in connection with the consummation of any such transaction as may be necessary
to ensure that the provisions hereof shall thereafter be applicable, as nearly
as reasonably may be, in relation to its Common Shares thereafter deliverable
upon the exercise of the Rights; and

                    (E) upon the subsequent occurrence of any consolidation,
merger, sale or transfer of assets or other extraordinary transaction in respect
of such Principal Party, each holder of a Right shall thereupon be entitled to
receive, upon exercise of a Right and payment of the Total Exercise Price as
provided in this Section 13(a), such cash, shares, rights, warrants and other
property which such holder would have been entitled to receive had such holder,
at the time of such transaction, owned the Common Shares of the Principal Party
receivable upon the exercise of such Right pursuant to this Section 13(a), and
such Principal Party shall take such steps (including, but not limited to,
reservation of shares of stock) as may be necessary to permit the subsequent
exercise of the Rights in accordance with the terms hereof for such cash,
shares, rights, warrants and other property.

                    (F) For purposes hereof, the "earning power" of the Company
and its Subsidiaries shall be determined in good faith by the Company's Board of
Directors on the basis of the operating earnings of each business operated by
the Company and its Subsidiaries during the three fiscal years preceding the
date of such determination (or, in the case of any business not operated by the
Company or any Subsidiary during three full fiscal years preceding such date,
during the period such business was operated by the Company or any Subsidiary).

          (b) For purposes of this Agreement, the term "PRINCIPAL PARTY" shall
mean:

               (i) in the case of any transaction described in clause (i) or
(ii) of Section 13(a) hereof: (A) the Person that is the issuer of the
securities into which the Common Shares are converted in such merger or
consolidation, or, if there is more than one such issuer, the issuer the Common
Shares of which have the greatest aggregate market value of shares outstanding,
or (B) if no securities are so issued, (x) the Person that is the other party to
the merger, if such Person

                                       22
<PAGE>   24

survives said merger, or, if there is more than one such Person, the Person the
Common Shares of which have the greatest aggregate market value of shares
outstanding or (y) if the Person that is the other party to the merger does not
survive the merger, the Person that does survive the merger (including the
Company if it survives) or (z) the Person resulting from the consolidation; and

               (ii) in the case of any transaction described in clause (iii) of
Section 13(a) hereof, the Person that is the party receiving the greatest
portion of the assets or earning power transferred pursuant to such transaction
or transactions, or, if more than one Person that is a party to such transaction
or transactions receives the same portion of the assets or earning power so
transferred and each such portion would, were it not for the other equal
portions, constitute the greatest portion of the assets or earning power so
transferred, or if the Person receiving the greatest portion of the assets or
earning power cannot be determined, whichever of such Persons is the issuer of
Common Shares having the greatest aggregate market value of shares outstanding;

PROVIDED, HOWEVER, that in any such case described in the foregoing clause
(b)(i) or (b)(ii), if the Common Shares of such Person are not at such time or
have not been continuously over the preceding 12-month period registered under
Section 12 of the Exchange Act, then (1) if such Person is a direct or indirect
Subsidiary of another Person the Common Shares of which are and have been so
registered, the term "Principal Party" shall refer to such other Person, or (2)
if such Person is a Subsidiary, directly or indirectly, of more than one Person,
the Common Shares of which are and have been so registered, the term "Principal
Party" shall refer to whichever of such Persons is the issuer of Common Shares
having the greatest aggregate market value of shares outstanding, or (3) if such
Person is owned, directly or indirectly, by a joint venture formed by two or
more Persons that are not owned, directly or indirectly by the same Person, the
rules set forth in clauses (1) and (2) above shall apply to each of the owners
having an interest in the venture as if the Person owned by the joint venture
was a Subsidiary of both or all of such joint venturers, and the Principal Party
in each such case shall bear the obligations set forth in this Section 13 in the
same ratio as its interest in such Person bears to the total of such interests.

          (c) The Company shall not consummate any Section 13 Event unless the
Principal Party shall have a sufficient number of authorized Common Shares that
have not been issued or reserved for issuance to permit the exercise in full of
the Rights in accordance with this Section 13 and unless prior thereto the
Company and such issuer shall have executed and delivered to the Rights Agent a
supplemental agreement confirming that such Principal Party shall, upon
consummation of such Section 13 Event, assume this Agreement in accordance with
Sections 13(a) and 13(b) hereof, that all rights of first refusal or preemptive
rights in respect of the issuance of Common Shares of such Principal Party upon
exercise of outstanding Rights have been waived, that there are no 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 and that such transaction shall not result in a default by such Principal
Party under this Agreement, and further providing that, as soon as practicable
after the date of such Section 13 Event, such Principal Party will:

                                       23
<PAGE>   25

               (i) prepare and file a registration statement under the
Securities Act with respect to the Rights and the securities purchasable upon
exercise of the Rights on an appropriate form, use its best efforts to cause
such registration statement to become effective as soon as practicable after
such filing and use its best efforts to cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of the
Securities Act) until the Expiration Date, and similarly comply with applicable
state securities laws;

               (ii) use its best efforts to list (or continue the listing of)
the Rights and the securities purchasable upon exercise of the Rights on a
national securities exchange or to meet the eligibility requirements for
quotation on Nasdaq and list (or continue the listing of) the Rights and the
securities purchasable upon exercise of the Rights on Nasdaq; and

               (iii) deliver to holders of the Rights historical financial
statements for such Principal Party which comply in all respects with the
requirements for registration on Form 10 (or any successor form) under the
Exchange Act.

     In the event that at any time after the occurrence of a Triggering Event
some or all of the Rights shall not have been exercised at the time of a
transaction described in this Section 13, the Rights which have not theretofore
been exercised shall thereafter be exercisable in the manner described in
Section 13(a) (without taking into account any prior adjustment required by
Section 11(a)(ii)).

          (d) In case the "Principal Party" for purposes of Section 13(b) hereof
has provision in any of its authorized securities or in its certificate of
incorporation or by-laws or other instrument governing its corporate affairs,
which provision would have the effect of (i) causing such Principal Party to
issue (other than to holders of Rights pursuant to Section 13 hereof), in
connection with, or as a consequence of, the consummation of a Section 13 Event,
Common Shares or Equivalent Shares of such Principal Party at less than the then
Current Per Share Market Price thereof or securities exercisable for, or
convertible into, Common Shares or Equivalent Shares of such Principal Party at
less than such then Current Per Share Market Price, or (ii) providing for any
special payment, tax or similar provision in connection with the issuance of the
Common Shares of such Principal Party pursuant to the provisions of Section 13
hereof, then, in such event, the Company hereby agrees with each holder of
Rights that it shall not consummate any such transaction unless prior thereto
the Company and such Principal Party shall have executed and delivered to the
Rights Agent a supplemental agreement providing that the provision in question
of such Principal Party shall have been canceled, waived or amended, or that the
authorized securities shall be redeemed, so that the applicable provision will
have no effect in connection with or as a consequence of, the consummation of
the proposed transaction.

          (e) The Company covenants and agrees that it shall not, at any time
after the Distribution Date, effect or permit to occur any Section 13 Event, if
(i) at the time or immediately after such Section 13 Event there are any rights,
warrants or other instruments or securities outstanding or agreements in effect
which would substantially diminish or otherwise eliminate the benefits intended
to be afforded by the Rights, (ii) prior to, simultaneously with or immediately
after such Section 13 Event, the shareholders of the Person who constitutes, or
would constitute, the "Principal Party" for purposes of Section 13(b) hereof
shall have received a distribution of Rights previously owned by such Person or
any of its Affiliates or Associates or

                                       24
<PAGE>   26

(iii) the form or nature of organization of the Principal Party would preclude
or limit the exercisability of the Rights.

          (f) 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 Rights Certificates which evidence fractional Rights. In lieu of
such fractional Rights, there shall be paid to the registered holders of the
Rights Certificates with regard to which such fractional Rights would otherwise
be issuable, an amount in cash equal to the same fraction of the current market
value of a whole Right. For the purposes of this Section 14(a), the current
market value of a whole Right shall be the closing price of the Rights for the
Trading Day immediately prior to the date on which such fractional Rights would
have been otherwise issuable, as determined pursuant to the second sentence of
Section 1(j) hereof.

          (b) The Company shall not be required to issue fractions of Preferred
Shares (other than fractions that are integral multiples of one one-thousandth
of a Preferred Share) upon exercise of the Rights or to distribute certificates
which evidence fractional Preferred Shares (other than fractions that are
integral multiples of one one-thousandth of a Preferred Share). Interests in
fractions of Preferred Shares in integral multiples of one one-thousandth 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-thousandth of a Preferred
Share, the Company shall pay to the registered holders of Rights 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 a Preferred Share. For purposes
of this Section 14(b), the current market value of a Preferred Share shall be
one thousand times the closing price of a Common Share (as determined pursuant
to the second sentence of Section 1(j) hereof) for the Trading Day immediately
prior to the date of such exercise.

          (c) The Company shall not be required to issue fractions of Common
Shares or to distribute certificates which evidence fractional Common Shares
upon the exercise or exchange of Rights. In lieu of such fractional Common
Shares, the Company shall pay to the registered holders of Rights 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 a Common Share. For purposes
of this Section 14(c), the current market value of a Common Share shall be the
closing price of a Common Share (as determined pursuant to the second sentence
of Section 1(j) hereof) for the Trading Day immediately prior to the date of
such exercise.

          (d) The holder of a Right by the acceptance of the Right expressly
waives his or her right to receive any fractional Rights or any fractional
shares (other than fractions that are integral multiples of one one-thousandth
of a Preferred Share) upon exercise of a Right.

                                       25
<PAGE>   27

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

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

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

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

          (c) subject to Sections 6(a) and 7(f) hereof, the Company and the
Rights Agent may deem and treat the person in whose name the Rights Certificate
(or, prior to the Distribution Date, the associated Common Shares certificate)
is registered as the absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Rights
Certificates or the associated Common 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. RIGHTS CERTIFICATE HOLDER NOT DEEMED A SHAREHOLDER. No holder,
as such, of any Rights Certificate shall be entitled to vote, receive dividends
or be deemed for any purpose to be 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 Rights Certificate be construed to confer upon the holder of any
Rights Certificate, as such, any of the rights of a shareholder of the Company
or any right to vote for the election of directors or upon any matter submitted
to shareholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
shareholders (except as provided in Section 25 hereof), or to receive dividends
or subscription rights, or otherwise, until the Right or Rights evidenced by
such Rights Certificate shall have been exercised in accordance with the
provisions hereof.

                                       26
<PAGE>   28

     Section 18. CONCERNING THE RIGHTS AGENT.

          (a) The Company agrees to pay to the Rights Agent reasonable
compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, its reasonable expenses and counsel fees and
other disbursements incurred in the administration and execution of this
Agreement and the exercise and performance of its duties hereunder. The Company
also agrees to indemnify the Rights Agent for, and to hold it harmless against,
any loss, liability or expense, incurred without 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. In no event will the Rights Agent be liable for
special, indirect, incidental or consequential loss or damage of any kind
whatsoever, even if the Rights Agent has been advised of the possibility of such
loss or damage.

          (b) The Rights Agent shall be protected and shall incur no liability
for, or in respect of any action taken, suffered or omitted by it in connection
with, its administration of this Agreement in reliance upon any Rights
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 reasonably 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.

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

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

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

                                       27
<PAGE>   29

countersigned, the Rights Agent may countersign such Rights Certificates either
in its prior name or in its changed name; and in all such cases such Rights
Certificates shall have the full force provided in the Rights Certificates and
in this Agreement.

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

          (a) The Rights Agent may consult with legal counsel (who may be legal
counsel for the Company), and the written advice or 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
written advice or opinion.

          (b) Whenever in the performance of its duties under this Agreement the
Rights Agent shall deem it necessary or desirable that any fact or matter
(including, without limitation, the identity of any Acquiring Person and the
determination of Current Per Share Market Price) 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 Chief Financial Officer, the Secretary or any
Assistant 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.

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

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

                                       28
<PAGE>   30

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

          (g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from any
one of the Chairman of the Board, the Chief Executive Officer, or the Chief
Financial Officer 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. Any application by the Rights Agent for written instructions from
the Company may, at the option of the Rights Agent, set forth in writing any
action proposed to be taken or omitted by the Rights Agent under this Rights
Agreement and the date on and/or after which such action shall be taken or such
omission shall be effective. The Rights Agent shall not be liable for any action
taken by, or omission of, the Rights Agent in accordance with a proposal
included in any such application on or after the date specified in such
application (which date shall not be less than five (5) Business Days after the
date any officer of the Company actually receives such application, unless any
such officer shall have consented in writing to an earlier date) unless, prior
to taking any such action (or the effective date in the case of an omission),
the Rights Agent shall have received written instructions in response to such
application specifying the action to be taken or omitted.

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

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

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

          (k) If, with respect to any Rights Certificate surrendered to the
Rights Agent for exercise or transfer, the certificate attached to the form of
assignment or form of election to purchase, as the case may be, has either not
been completed or indicates an affirmative response to clause 1 and/or 2
thereof, the Rights Agent shall not take any further action with respect to such
requested exercise or transfer without first consulting with the Company.

                                       29
<PAGE>   31

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

     Section 22. ISSUANCE OF NEW RIGHTS CERTIFICATES. Notwithstanding any of the
provisions of this Agreement or of the Rights to the contrary, the Company may,
at its option, issue new Rights Certificates evidencing Rights in such form as
may be approved by its Board of Directors to reflect any adjustment or change in
the Exercise Price and the number or kind or class of shares or other securities
or property purchasable under the Rights Certificates made in accordance with
the provisions of this Agreement. In addition, in connection with the issuance
or sale of Common Shares following the Distribution Date and prior to the
redemption or expiration of the Rights, the Company (a) shall, with respect to
Common Shares so issued or sold pursuant to the exercise of stock options or
under any employee plan or arrangement or upon the exercise, conversion or
exchange of other securities of the Company outstanding at the date hereof or
upon the exercise, conversion or exchange of securities hereinafter issued by
the Company and (b) may, in any other case, if deemed necessary or appropriate
by the Board of Directors of the Company, issue Rights Certificates representing
the appropriate number of Rights in connection with such issuance or sale;
PROVIDED, HOWEVER, that (i) no such

                                       30
<PAGE>   32

Rights Certificate shall be issued and this sentence shall be null and void AB
INITIO if, and to the extent that, such issuance or this sentence would create a
significant risk of or result in material adverse tax consequences to the
Company or the Person to whom such Rights Certificate would be issued or would
create a significant risk of or result in such options' or employee plans' or
arrangements' failing to qualify for otherwise available special tax treatment
and (ii) no such Rights Certificate shall be issued if, and to the extent that,
appropriate adjustment shall otherwise have been made in lieu of the issuance
thereof.

     Section 23. REDEMPTION.

          (a) The Company may, at its option and with the approval of the Board
of Directors, at any time prior to the earlier of (i) the Distribution Date or
(ii) the Close of Business on the Final Expiration Date, redeem all but not less
than all the then outstanding Rights at a redemption price of $0.01 per Right,
appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof (such redemption price being herein
referred to as the "REDEMPTION PRICE") and the Company may, at its option, pay
the Redemption Price either in Common Shares (based on the Current Per Share
Market Price thereof at the time of redemption) or cash. Such redemption of the
Rights by the Company may be made effective at such time, on such basis and with
such conditions as the Board of Directors in its sole discretion may establish.
The date on which the Board of Directors elects to make the redemption effective
shall be referred to as the "REDEMPTION DATE."

          (b) Immediately upon the action of the Board of Directors of the
Company ordering the redemption of the Rights, evidence of which shall have been
filed with the Rights Agent, and without any further action and without any
notice, the right to exercise the Rights 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 ten (10) days after the action of
the Board of Directors ordering the redemption of the Rights, the Company shall
give notice of such redemption to the Rights Agent and the holders of the then
outstanding Rights by mailing such notice to all such holders at their last
addresses as they appear upon the registry books of the Rights Agent or, prior
to the Distribution Date, on the registry books of the transfer agent for the
Common 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) Subject to applicable laws, rules and regulations, and subject to
subsection 24(c) below, the Company may, at its option, by action of the Board
of Directors, at any time after the occurrence of a Triggering Event, exchange
all or part of the then outstanding and

                                       31
<PAGE>   33

exercisable Rights (which shall not include Rights that have become void
pursuant to the provisions of Section 7(e) hereof) for Common Shares at an
exchange ratio of one Common Share per Right, appropriately adjusted to reflect
any stock split, stock dividend or similar transaction occurring after the date
hereof (such exchange ratio being hereinafter referred to as the "EXCHANGE
RATIO"). Notwithstanding the foregoing, the Board of Directors shall not be
empowered to effect such exchange at any time after any Person (other than the
Company, any Subsidiary of the Company, any employee benefit plan of the Company
or any such Subsidiary, or any entity holding Common Shares for or pursuant to
the terms of any such plan), together with all Affiliates and Associates of such
Person, becomes the Beneficial Owner of 50% or more of the Common Shares then
outstanding.

          (b) Immediately upon the action of the Board of Directors ordering the
exchange of any Rights pursuant to subsection 24(a) 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 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
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 7(e) 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 accordance with Section 24(a), the Company shall
either take such action as may be necessary to authorize additional Common
Shares for issuance upon exchange of the Rights or alternatively, at the option
of a majority of the Board of Directors, with respect to each Right (i) pay cash
in an amount equal to the Current Value (as hereinafter defined), in lieu of
issuing Common Shares in exchange therefor, or (ii) issue debt or equity
securities or a combination thereof, having a value equal to the Current Value,
in lieu of issuing Common Shares in exchange for each such Right, where the
value of such securities shall be determined by a nationally recognized
investment banking firm selected by majority vote of the Board of Directors, or
(iii) deliver any combination of cash, property, Common Shares and/or other
securities having a value equal to the Current Value in exchange for each Right.
For purposes of this Section 24(c) only, the Current Value shall mean the
product of the Current Per Share Market Price of Common Shares on the date of
the occurrence of the event described above in subparagraph (a), multiplied by
the number of Common Shares for which the Right otherwise would be exchangeable
if there were sufficient shares available. To the extent that the Company
determines that some action need be taken pursuant to clauses (i), (ii) or (iii)
of this Section 24(c), the Board of Directors may temporarily suspend the
exercisability of the Rights for a period of up to sixty (60) days following the
date on which the event described in Section 24(a) shall have occurred, in order
to seek any authorization of additional Common Shares and/or to decide the
appropriate form of distribution to be made

                                       32
<PAGE>   34

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

          (d) The Company shall not be required to issue fractions of Common
Shares or to distribute certificates which evidence fractional Common Shares. In
lieu of such fractional Common Shares, there shall be paid to the registered
holders of the Rights 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 (as determined pursuant to
the second sentence of Section 1(j) hereof).

          (e) The Company may, at its option, by majority vote of the Board of
Directors, at any time before any Person has become an Acquiring Person,
exchange all or part of the then outstanding Rights for rights of substantially
equivalent value, as determined reasonably and with good faith by the Board of
Directors, based upon the advice of one or more nationally recognized investment
banking firms.

          (f) Immediately upon the action of the Board of Directors ordering the
exchange of any Rights pursuant to subsection 24(e) 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 rights in exchange therefor as has been
determined by the Board of Directors in accordance with subsection 24(e) above.
The Company shall 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 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 transfer agent for the Common Shares of the Company.
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 Rights will be effected.

     Section 25. NOTICE OF CERTAIN EVENTS.

          (a) In case the Company shall propose to effect or permit to occur any
Triggering Event or Section 13 Event, the Company shall give notice thereof to
each holder of Rights in accordance with Section 26 hereof at least twenty (20)
days prior to occurrence of such Triggering Event or such Section 13 Event.

          (b) In case any Triggering Event or Section 13 Event shall occur,
then, in any such case, the Company shall as soon as practicable thereafter give
to each holder of a Rights Certificate, in accordance with Section 26 hereof, a
notice of the occurrence of such event, which shall specify the event and the
consequences of the event to holders of Rights under Sections 11(a)(ii) and 13
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 Rights Certificate to
or on the Company shall be sufficiently given or made if sent by first-class
mail, postage prepaid, addressed (until another address is filed in writing with
the Rights Agent) as follows:

                                       33
<PAGE>   35

                  CVB Financial Corp.
                  701 N. Haven Avenue
                  Ontario, California  91764
                  Attention:  President

                  with a copy to:

                  Manatt, Phelps & Phillips, LLP
                  11355 W. Olympic Boulevard
                  Los Angeles, California 90064
                  Attention:  William T. Quicksilver

     Subject to the provisions of Section 21 hereof, any notice or demand
authorized by this Agreement to be given or made by the Company or by the holder
of any Rights Certificate to or on the Rights Agent shall be 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:

                  U.S. Stock Transfer Corp.
                  1745 Gardena Avenue
                  Glendale, California 91204

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

                                       34
<PAGE>   36

     Section 27. SUPPLEMENTS AND AMENDMENTS.

          (a) Prior to the occurrence of a Distribution Date, the Company may
supplement or amend this Agreement in any respect without the approval of any
holders of Rights and the Rights Agent shall, if the Company so directs, execute
such supplement or amendment. From and after the occurrence of a Distribution
Date, the Company and the Rights Agent may from time to time supplement or amend
this Agreement without the approval of any holders of Rights in order to (i)
cure any ambiguity, (ii) correct or supplement any provision contained herein
which may be defective or inconsistent with any other provisions herein, (iii)
shorten or lengthen any time period hereunder or (iv) to change or supplement
the provisions hereunder in any manner that the Company may deem necessary or
desirable and that shall not adversely affect the interests of the holders of
Rights (other than an Acquiring Person or an Affiliate or Associate of an
Acquiring Person); PROVIDED, this Agreement may not be supplemented or amended
to lengthen, pursuant to clause (iii) of this sentence, (A) a time period
relating to when the Rights may be redeemed at such time as the Rights are not
then redeemable or (B) any other time period unless such lengthening is for the
purpose of protecting, enhancing or clarifying the rights of, and/or the
benefits to, the holders of Rights (other than an Acquiring Person or an
Affiliate or Associate of an Acquiring Person). Upon the delivery of a
certificate from an appropriate officer of the Company that states that the
proposed supplement or amendment is in compliance with the terms of this Section
27, the Rights Agent shall execute such supplement or amendment. Prior to the
Distribution Date, the interests of the holders of Rights shall be deemed
coincident with the interests of the holders of Common Shares.

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

     Section 29. DETERMINATIONS AND ACTIONS BY THE BOARD OF DIRECTORS, ETC. For
all purposes of this Agreement, any calculation of the number of Common Shares
outstanding at any particular time, including for purposes of determining the
particular percentage of such outstanding Common Shares of which any Person is
the Beneficial Owner, shall be made in accordance with the last sentence of Rule
13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act. The
Board of Directors of the Company shall have the exclusive power and authority
to administer this Agreement and to exercise all rights and powers specifically
granted to the Board, or the Company, or as may be necessary or advisable in the
administration of this Agreement, including, without limitation, the right and
power to (i) interpret the provisions of this Agreement and (ii) make all
determinations deemed necessary or advisable for the administration of this
Agreement (including a determination to redeem or not redeem the Rights or to
amend the Agreement). All such actions, calculations, interpretations and
determinations (including, for purposes of clause (y) below, all omissions with
respect to the foregoing) which are done or made by the Board in good faith,
shall (x) be final, conclusive and binding on the Company, the Rights Agent, the
holders of the Rights Certificates and all other parties and (y) not subject the
Board to any liability to the holders of the Rights.

     Section 30. BENEFITS OF THIS AGREEMENT. Nothing in this Agreement shall be
construed to give to any Person other than the Company, the Rights Agent and the
registered holders of the Rights Certificates (and, prior to the Distribution
Date, the Common Shares) any

                                       35
<PAGE>   37

legal or equitable right, remedy or claim under this Agreement; but this
Agreement shall be for the sole and exclusive benefit of the Company, the Rights
Agent and the registered holders of the Rights Certificates (and, prior to the
Distribution Date, the Common Shares).

     Section 31. SEVERABILITY. If any term, provision, covenant or restriction
of this Agreement is held by a court of competent jurisdiction or other
authority to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of this Agreement shall remain in full
force and effect and shall in no way be affected, impaired or invalidated;
PROVIDED, HOWEVER, that notwithstanding anything in this Agreement to the
contrary, if any such term, provision, covenant or restriction is held by such
court or authority to be invalid, void or unenforceable and the Board of
Directors of the Company determines in its good faith judgment that severing the
invalid language from this Agreement would adversely affect the purpose or
effect of this Agreement, the right of redemption set forth in Section 23 hereof
shall be reinstated and shall not expire until the Close of Business on the
tenth day following the date of such determination by the Board of Directors.

     Section 32. GOVERNING LAW. This Agreement and each Right and each Rights
Certificate issued hereunder shall be deemed to be a contract made under the
laws of the State of California and for all purposes shall be governed by and
construed in accordance with the laws of such State applicable to contracts to
be made and performed entirely within such State.

     Section 33. COUNTERPARTS. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and
the same instrument.

                                       36
<PAGE>   38

     Section 34. DESCRIPTIVE HEADINGS. Descriptive headings of the several
Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

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

"COMPANY"                                CVB FINANCIAL CORP.

                                         By: /s/ D. LINN WILEY
                                            ----------------------------------
                                         Name: D. Linn Wiley
                                              --------------------------------
                                         Title: President
                                              --------------------------------

"RIGHTS AGENT"                           U.S. STOCK TRANSFER CORP.

                                         By: /s/ MARK CANO
                                            ----------------------------------
                                         Name: Mark Cano
                                              --------------------------------
                                         Title: Vice President
                                               -------------------------------

                                       37
<PAGE>   39

                                TABLE OF CONTENTS
                                   (CONTINUED)

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>         <C>                                                                                                 <C>
SECTION 1.  CERTAIN DEFINITIONS..................................................................................1

SECTION 2.  APPOINTMENT OF RIGHTS AGENT..........................................................................7

SECTION 3.  ISSUANCE OF RIGHTS CERTIFICATES......................................................................7

SECTION 4.  FORM OF RIGHTS CERTIFICATES..........................................................................9

SECTION 5.  COUNTERSIGNATURE AND REGISTRATION....................................................................9

SECTION 6.  TRANSFER, SPLIT UP, COMBINATION AND EXCHANGE
         OF RIGHTS CERTIFICATES; MUTILATED, DESTROYED, LOST OR STOLEN RIGHTS CERTIFICATES.......................10

SECTION 7.  EXERCISE OF RIGHTS; EXERCISE PRICE; EXPIRATION DATE
         OF RIGHTS..............................................................................................11

SECTION 8.  CANCELLATION AND DESTRUCTION OF RIGHTS CERTIFICATES.................................................13

SECTION 9.  RESERVATION AND AVAILABILITY OF PREFERRED SHARES....................................................13

SECTION 10.  RECORD DATE........................................................................................14

SECTION 11.  ADJUSTMENT OF EXERCISE PRICE, NUMBER
         OF SHARES OR NUMBER OF RIGHTS..........................................................................15

SECTION 12.  CERTIFICATE OF ADJUSTED EXERCISE PRICE
         OR NUMBER OF SHARES....................................................................................21

SECTION 13.  CONSOLIDATION, MERGER OR SALE OR TRANSFER
         OF ASSETS OR EARNING POWER.............................................................................21

SECTION 14.  FRACTIONAL RIGHTS AND FRACTIONAL SHARES............................................................25

SECTION 15.  RIGHTS OF ACTION...................................................................................26

SECTION 16.  AGREEMENT OF RIGHTS HOLDERS........................................................................26

SECTION 17.  RIGHTS CERTIFICATE HOLDER NOT DEEMED A SHAREHOLDER.................................................26

SECTION 18.  CONCERNING THE RIGHTS AGENT........................................................................27

SECTION 19.  MERGER OR CONSOLIDATION OR CHANGE OF NAME
         OF RIGHTS AGENT........................................................................................27

SECTION 20.  DUTIES OF RIGHTS AGENT.............................................................................28

SECTION 21.  CHANGE OF RIGHTS AGENT.............................................................................30

SECTION 22.  ISSUANCE OF NEW RIGHTS CERTIFICATES................................................................30

SECTION 23.  REDEMPTION.........................................................................................31

SECTION 24.  EXCHANGE...........................................................................................31

SECTION 25.  NOTICE OF CERTAIN EVENTS...........................................................................33

SECTION 26.  NOTICES............................................................................................34
</TABLE>

                                       i
<PAGE>   40

                                TABLE OF CONTENTS
                                  (CONTINUED)
<TABLE>
<CAPTION>
<S>          <C>                                                                                               <C>

SECTION 27.  SUPPLEMENTS AND AMENDMENTS.........................................................................35

SECTION 28.  SUCCESSORS.........................................................................................35

SECTION 29.  DETERMINATIONS AND ACTIONS BY THE BOARD
         OF DIRECTORS, ETC......................................................................................35

SECTION 30.  BENEFITS OF THIS AGREEMENT.........................................................................35

SECTION 31.  SEVERABILITY.......................................................................................36

SECTION 32.  GOVERNING LAW......................................................................................36

SECTION 33.  COUNTERPARTS.......................................................................................36

SECTION 34.  DESCRIPTIVE HEADINGS...............................................................................37

</TABLE>

                                       ii
<PAGE>   41

                                    EXHIBIT A

                          CERTIFICATE OF DETERMINATION
                             OF CVB FINANCIAL CORP.

     The undersigned, D. Linn Wiley and Donna Marchesi do hereby certify:

     1. That they are the duly elected and acting President and Secretary,
respectively, of CVB Financial Corp., a California corporation (the
"CORPORATION").

     2. That, pursuant to the resolutions set forth in Paragraph 4 hereof, the
Board of Directors of the Corporation has authorized the issuance of, and
designated the rights, preferences, privileges and restrictions of one million
(1,000,000) shares of Series A Participating Preferred Stock. The Corporation's
Articles of Incorporation, as amended, authorize the issuance of up to twenty
million (20,000,000) shares of Preferred Stock.

     3. That none of the shares of Series A Participating Preferred Stock have
been issued by the Corporation.

     4. That pursuant to the authority conferred upon the Board of Directors by
the Articles of Incorporation of the said Corporation, the said Board of
Directors on June 21, 2000 adopted the following resolution creating a series of
one million (1,000,000) shares of Preferred Stock designated as Series A
Participating Preferred Stock:

     "RESOLVED, that pursuant to the authority vested in the Board of Directors
of the Corporation by its Articles of Incorporation, the Board of Directors does
hereby provide for the issue of a series of Preferred Stock of the Corporation
and does hereby fix and herein state and express the designations, powers,
preferences and relative and other special rights and the qualifications,
limitations and restrictions of such series of Preferred Stock as follows:

     Section 1. DESIGNATION AND AMOUNT. The shares of such series shall be
designated as "SERIES A PARTICIPATING PREFERRED STOCK." The number of shares
constituting such series shall be one million (1,000,000) shares. 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
Participating 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
Participating Preferred Stock.

     Section 2. DIVIDENDS AND DISTRIBUTIONS.

          (a) Subject to the prior and superior right of the holders of any
shares of any series of Preferred Stock (or any similar stock) ranking prior and
superior to the shares of Series A Participating Preferred Stock with respect to
dividends, the holders of shares of Series A Participating Preferred Stock, in
preference to the holders of Common Stock of the Company, 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 last day of March, June, September and December in each
year (each such date being

                                       1
<PAGE>   42

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 Participating Preferred Stock, in an amount per
share (rounded to the nearest cent) equal to the greater of (a) $1.00 or (b)
subject to the provision for adjustment hereinafter set forth, 1,000 times the
aggregate per share amount of all cash dividends, and 1,000 times the aggregate
per share amount (payable in kind) of all non-cash dividends or other
distributions other than a dividend payable in shares of Common Stock or a
subdivision of the outstanding shares of Common Stock (by reclassification or
otherwise), declared on the Common Stock since the immediately preceding
Quarterly Dividend Payment Date, or, with respect to the first Quarterly
Dividend Payment Date, since the first issuance of any share or fraction of a
share of Series A Participating 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 Participating 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 Participating Preferred Stock as provided in paragraph (a) above
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 $1.00 per shares on
the Series A Participating Preferred Stock shall nevertheless be payable on such
subsequent Quarterly Dividend Payment Date.

          (c) Dividends shall begin to accrue on outstanding shares of Series A
Participating Preferred Stock from the Quarterly Dividend Payment Date next
preceding the date of issue of such shares of Series A Participating Preferred
Stock, unless the date of issue of such shares is prior to the record date for
the first Quarterly Dividend Payment Date, in which case dividends on such
shares shall begin to accrue from the date of issue of such shares, or unless
the date of issue is a Quarterly Dividend Payment Date or is a date after the
record date for the determination of holders of shares of Series A Participating
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 from such Quarterly Dividend Payment Date. Accrued but unpaid
dividends shall not bear interest. Dividends paid on the shares of Series A
Participating 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 Participating Preferred Stock entitled to receive payment of
a dividend or distribution declared thereon, which record date shall be not less
than ten (10) nor more than sixty (60) days prior to the date fixed for the
payment thereof.

                                       2
<PAGE>   43

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

          (a) Each share of Series A Participating Preferred Stock shall entitle
the holder thereof to 1,000 votes on all matters submitted to a vote of the
shareholders of the Corporation.

          (b) Except as otherwise provided herein, in any other Certificate of
Determination, or by law, the holders of shares of Series A Participating
Preferred Stock and the holders of shares of Common Stock shall vote together as
one class on all matters submitted to a vote of shareholders of the Corporation.

          (c) Except as required by law, holders of Series A Participating
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 Participating 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 Participating
Preferred Stock outstanding shall have been paid in full, the Corporation shall
not:

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

               (ii) declare or pay dividends on, 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 Series A Participating Preferred
Stock, except dividends paid ratably on the Series A Participating 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 on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series A Participating
Preferred Stock, provided that the Corporation may at any time redeem, purchase
or otherwise acquire shares of any such parity 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 Participating Preferred
Stock;

               (iv) purchase or otherwise acquire for consideration any shares
of Series A Participating Preferred Stock, or any shares of stock ranking on a
parity with the Series A Participating 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

                                       3
<PAGE>   44

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 Participating
Preferred Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever shall be retired and canceled promptly after the acquisition thereof.
All such shares shall upon their cancellation become authorized but unissued
shares of Preferred Stock and may be reissued as part of a new series of
Preferred Stock to be created by resolution or resolutions of the Board of
Directors, subject to the conditions and restrictions on issuance set forth
herein and in the Articles of Incorporation, as then amended.

     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 Participating Preferred
Stock unless, prior thereto, the holders of shares of Series A Participating
Preferred Stock shall have received an amount per share equal to $1,000.00, plus
an amount equal to accrued and unpaid dividends and distributions thereon,
whether or not declared, to the date of such payment, provided that the holders
of shares of Series A Participating Preferred Stock shall be entitled to receive
an aggregate amount per share, subject to the provision for adjustment
hereinafter set forth, equal to the aggregate amount to be distributed per share
to holder 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 Participating Preferred Stock and all such parity stock in
proportion to the total amount 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 Participating 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 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 the shares of
Series A Participating Preferred Stock shall at the same time be similarly
exchanged or changed in an amount per share, subject to the provision for
adjustment hereinafter set forth, equal to one thousand (1,000) times the

                                       4
<PAGE>   45

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 Participating
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 Participating Preferred
Stock shall not be redeemable.

     Section 9. RANKING. The Series A Participating Preferred Stock shall rank
junior to all other series of the Corporation's Preferred Stock as to the
payment of dividends and the distribution of assets, unless the terms of any
such series shall provide otherwise.

     Section 10. AMENDMENT. The Articles of Incorporation of the Corporation
shall not be further amended in any manner which would materially alter or
change the powers, preference or special rights of the Series A Participating
Preferred Stock so as to affect them adversely without the affirmative vote of
the holders of a majority of the outstanding shares of Series A Participating
Preferred Stock, voting separately as a class.

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

     RESOLVED FURTHER, that the President or any Vice President and the
Secretary or any Assistant Secretary of this corporation be, and they hereby
are, authorized and directed to prepare and file a Certificate of Determination
in accordance with the foregoing resolution and the provisions of California law
and to take such actions as they may deem necessary or appropriate to carry out
the intent of the foregoing resolution."

                                       5
<PAGE>   46

     We further declare under penalty of perjury that the matters set forth in
the foregoing Certificate of Determination are true and correct of our own
knowledge and that the foregoing Certificate of Determination has been duly
approved by the Board of Directors of the Corporation.

     Executed at Ontario, California, on June 21, 2000.

                                                     /s/ D. LINN WILEY
                                                     --------------------------
                                                     D. Linn Wiley, President

                                                     /s/ DONNA MARCHESI
                                                     --------------------------
                                                     Donna Marchesi, Secretary

                                       6

<PAGE>   47

                                    EXHIBIT B

                           FORM OF RIGHTS CERTIFICATE

Certificate No. R-                                                  _____Rights

NOT EXERCISABLE AFTER THE EARLIER OF (i) JUNE 21, 2010 (ii) THE DATE TERMINATED
BY THE COMPANY OR (iii) THE DATE THE COMPANY EXCHANGES THE RIGHTS PURSUANT TO
THE RIGHTS AGREEMENT. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE
COMPANY, AT $0.01 PER RIGHT ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.
UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR
AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN
THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL
AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE
BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN
AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS
REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN
SECTION 7(e) OF SUCH RIGHTS AGREEMENT.](1)

                               RIGHTS CERTIFICATE

                               CVB FINANCIAL CORP.

     This certifies that ___________________________, or registered assigns, is
the registered owner of the number of Rights set forth above, each of which
entitles the owner thereof, subject to the terms, provisions and conditions of
the Rights Agreement dated as of June 21, 2000, (the "RIGHTS AGREEMENT"),
between CVB Financial Corp., a California corporation (the "COMPANY"), and U.S.
STOCK TRANSFER CORP. ( the "RIGHTS AGENT"), to purchase from the Company at any
time after the Distribution Date (as such term is defined in the Rights
Agreement) and prior to 5:00 P.M., Los Angeles time, on June 21, 2010 at the
principal office of the Rights Agent, or at the office of its successor as
Rights Agent, one one-thousandth (1/1,000) of a fully paid non-assessable share
of Series A Participating Preferred Stock (the "PREFERRED SHARES"), of the
Company, at an Exercise Price of fifty dollars ($50.00) per one-thousandth of a
Preferred Share (the "EXERCISE PRICE"), upon presentation and surrender of this
Rights Certificate with the Form of Election to Purchase and related Certificate
duly executed. The number of Rights evidenced by this Rights Certificate (and
the number of one-thousandths of a Preferred Share which may be purchased upon
exercise hereof) set forth above are the number and Exercise Price as of June
21, 2000 based on the Preferred Shares as constituted at such date. As provided
in the Rights Agreement, the Exercise Price and the number and kind of Preferred
Shares or other securities which may be purchased upon the exercise of the
Rights evidenced by this Rights Certificate are subject to modification and
adjustment upon the happening of certain events.

---------------------
(1) The portion of the legend in bracket shall be inserted only if applicable
    and shall replace the preceding sentence.

                                       1
<PAGE>   48

     This Rights Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Rights Certificates, which
limitations of rights include the temporary suspension of the exercisability of
such Rights under the specific circumstances set forth in the Rights Agreement.
Copies of the Rights Agreement are on file at the principal executive offices of
the Company and the above-mentioned office of the Rights Agent.

     Subject to the provisions of the Rights Agreement, the Rights evidenced by
this Rights Certificate (i) may be redeemed by the Company, at its option, at a
redemption price of $0.01 per Right or (ii) may be exchanged by the Company in
whole or in part for Common Shares, substantially equivalent rights or other
consideration as determined by the Company.

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

     No fractional portion of less than one one-thousandth of a Preferred Share
will be issued upon the exercise of any Right or Rights evidenced hereby but in
lieu thereof a cash payment will be made, as provided in the Rights Agreement.

     No holder of this Rights Certificate, as such, 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 Rights
Agreement or herein be construed to confer upon the holder hereof, as such, any
of the rights of a shareholder of the Company or any right to vote for the
election of directors or upon any matter submitted to shareholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to
receive notice of meetings or other actions affecting shareholders (except as
provided in the Rights Agreement), or to receive dividends or subscription
rights, or otherwise, until the Right or Rights evidenced by this Rights
Certificate shall have been exercised as provided in the Rights Agreement.

                                       2
<PAGE>   49

     This Rights 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 _______________, 20____.

ATTEST:                             CVB FINANCIAL CORP.

                                    By:
                                       --------------------------------------
                                             Donna Marchesi, Secretary

                                    Its:
                                        -------------------------------------

Countersigned:                      -----------------------------------------

                                    as
                                      ---------------------------------------

                                    By:
                                       --------------------------------------

                                    Its:
                                        -------------------------------------

                                       3
<PAGE>   50

                   FORM OF REVERSE SIDE OF RIGHTS CERTIFICATE

                               FORM OF ASSIGNMENT

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

     FOR VALUE RECEIVED _____________________________________ hereby sells,

assigns and transfers unto ___________________________________________________

______________________________________________________________________________
(Please print name and address of transferee)

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

Dated: _______________, 20____

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

Signature Guaranteed:

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

                                   CERTIFICATE

     The undersigned hereby certifies by checking the appropriate boxes that:

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

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

Dated: _______________, 20____

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

                                       4
<PAGE>   51

Signature Guaranteed:

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

             FORM OF REVERSE SIDE OF RIGHTS CERTIFICATE -- CONTINUED

                          FORM OF ELECTION TO PURCHASE

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

     To: ___________________________

     The undersigned hereby irrevocably elects to exercise
_________________________ Rights represented by this Rights Certificate to
purchase the number of one-thousandths of a Preferred Share issuable upon the
exercise of such Rights and requests that certificates for such number of
one-thousandths of a Preferred Share issued in the name of:

Please insert social security or other identifying number

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

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

If such number of Rights shall not be all the Rights evidenced by this Rights
Certificate, a new Rights Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to: Please insert social
security or other identifying number - ____________________________

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

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

Dated: ___________________ , 20____

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

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

                                       5
<PAGE>   52

                                   CERTIFICATE

     The undersigned hereby certifies by checking the appropriate boxes that:

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

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

     Dated: _______________, 20____

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

     Signature Guaranteed:

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

             FORM OF REVERSE SIDE OF RIGHTS CERTIFICATE -- CONTINUED

                                     NOTICE

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

                                       6

<PAGE>   53

                                    EXHIBIT C

                             SHAREHOLDER RIGHTS PLAN
                               CVB FINANCIAL CORP.

                                SUMMARY OF RIGHTS

DISTRIBUTION AND         The Board of Directors has declared a dividend of one
TRANSFER OF RIGHTS:      right for each share of CVB Financial Corp. Common
RIGHTS CERTIFICATE:      Stock outstanding. Prior to the Distribution

                         Date referred to below, the Rights will be evidenced by
                         and trade with the certificates for the Common Stock.
                         After the Distribution Date, CVB Financial Corp. (the
                         "COMPANY") will mail Rights certificates to the
                         Company's shareholders and the Rights will become
                         transferable apart from the Common Stock.

DISTRIBUTION DATE:       Rights will separate from the Common Stock and become
                         exercisable following (a) the tenth day after a person
                         or group acquires beneficial ownership of 20% or more
                         of the Company's Common Stock or (b) the tenth business
                         day (or such later date as may be determined by the
                         Company's Board of Directors) after a person or group
                         announces a tender or exchange offer, the consummation
                         of which would result in ownership by a person or
                         group of 20% or more of the Company's Common Stock.

PREFERRED STOCK          After the Distribution Date, each Right will entitle
PURCHASABLE UPON         the holder to purchase for $50.00 (the
EXERCISE OF RIGHTS:      "EXERCISE PRICE"), a fraction of a share of the
                         Company's Preferred Stock with economic terms similar
                         to that of one share of the Company's Common Stock.

FLIP-IN:                 If an acquiror (an "ACQUIRING PERSON") obtains 20% or
                         more of the Company's Common Stock THEN each Right
                         (other than Rights owned by an Acquiring Person or its
                         affiliates) will entitle the holder thereof to
                         purchase, for the Exercise Price, a number of shares
                         of the Company's Common Stock having a then current
                         market value of twice the Exercise Price.

FLIP-OVER:               If, after an Acquiring Person obtains 20% or more of
                         the Company's Common Stock, (a) the Company merges into
                         another entity, (b) an acquiring entity merges into the
                         Company or (c) the Company sells more than 50% of the
                         Company's assets or earning power, THEN each Right

                                       1
<PAGE>   54

                         (other than Rights owned by an Acquiring Person or its
                         affiliates) will entitle the holder thereof to
                         purchase, for the Exercise Price, a number of shares
                         of Common Stock of the person engaging in the
                         transaction having a then current market value of
                         twice the Exercise Price.

EXCHANGE PROVISION:      At any time after the date an Acquiring Person obtains
                         20% or more of the Company's Common Stock and prior to
                         the acquisition by the Acquiring Person of 50% of the
                         outstanding Common Stock, the Company's Board of
                         Directors may exchange the Rights (other than Rights
                         owned by the Acquiring Person or its affiliates), in
                         whole or in part, for shares of Common Stock of the
                         Company at an exchange ratio of one share of Common
                         Stock per Right (subject to adjustment).

REDEMPTION OF THE        Rights will be redeemable at the Company's option for
RIGHTS:                  $0.01 per Right at any time on or prior to public
                         announcement that a Person has acquired beneficial
                         ownership of 20% or more of the Company's Common Stock
                         (the "SHARES ACQUISITION DATE").

EXPIRATION OF THE        The Rights expire on the earliest of (a) June 21, 2010
RIGHTS:                  or (b) exchange or redemption of the Rights as
                         described above.

AMENDMENT OF             The terms of the Rights and the Rights Agreement may be
TERMS OF RIGHTS:         amended in any respect without the consent of the
                         Rights holders on or prior to the Distribution Date;
                         thereafter, the terms of the Rights and the Rights
                         Agreement may be amended without the consent of the
                         Rights holders in order to cure any ambiguities or to
                         make changes which do not adversely affect the
                         interests of Rights holders (other than the Acquiring
                         Person).

VOTING RIGHTS:           Rights will not have any voting rights.

ANTI-DILUTION            Rights will have the benefit of certain customary
PROVISIONS:              anti-dilution provisions.

TAXES:                   The Rights distribution should not be taxable for
                         federal income tax purposes. However, following an
                         event which renders the Rights exercisable or upon
                         redemption of the Rights, shareholders may recognize
                         taxable income.

                                       2
<PAGE>   55

The foregoing is a summary of certain principal terms of the Shareholder Rights
Plan only and is qualified in its entirety by reference to the detailed terms of
the Rights Agreement dated as of June 21, 2000, between the Company and the
Rights Agent.

THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES
SPECIFIED IN SECTION 7(e) OF THE RIGHTS AGREEMENT BETWEEN CVB FINANCIAL CORP.
AND U.S. STOCK TRANSFER CORP. DATED AS OF June 21, 2000.

                                       3<PAGE>   1

                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

                          ASSET CONTRIBUTION AGREEMENT

                             dated as of May 3, 2000

                                  by and among

                             QUADRAMED CORPORATION,

                         QUADRAMED OPERATING CORPORATION

                                       and

                                 CHARTONE, INC.

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                           Page
                                                                                           ----
<S>                                                                                        <C>
ARTICLE I DEFINITIONS........................................................................3
        Section 1.1 Certain Defined Terms....................................................3
        Section 1.2 Other Definitional Provisions............................................7
        Section 1.3 Parent...................................................................7

ARTICLE II  CONTRIBUTION OF ASSETS...........................................................7
        Section 2.1 Transfer of Assets to Company............................................7
        Section 2.2 Excluded Assets..........................................................9
        Section 2.3 Liabilities and Contracts Assumed by Company.............................9
        Section 2.4 Retained Liabilities and Obligations....................................10
        Section 2.5 Consideration for ROI Assets............................................11
        Section 2.6 Closing.................................................................11
        Section 2.7 Subsequent Documentation................................................11

ARTICLE III  REPRESENTATIONS AND WARRANTIES OF PARENT.......................................12
        Section 3.1 Purchase Entirely for Own Account.......................................12
        Section 3.2 Reliance Upon Parent's Representations..................................12
        Section 3.3 Accredited Investor.....................................................12
        Section 3.4 Disclaimer of Warranties................................................12

ARTICLE IV  ADDITIONAL AGREEMENTS...........................................................13
        Section 4.1 Taxes...................................................................13
        Section 4.2 Employees and Employee Benefits.........................................13
        Section 4.3 Access to Properties and Records........................................14
        Section 4.4 Further Action..........................................................14
        Section 4.5 Bulk Sales Compliance...................................................14
        Section 4.6 Assignment of Contracts and Warranties..................................14
        Section 4.7 Section 351 Qualification...............................................15
        Section 4.8 Consent to Assignment of Leases.........................................15
        Section 4.9 Intellectual Property...................................................15
        Section 4.10 Covenants Not To Compete...............................................15

ARTICLE V  SURVIVAL;  INDEMNIFICATION.......................................................17
        Section 5.1 Survival................................................................17
        Section 5.2 Indemnification by Parent...............................................17
        Section 5.3 Indemnification by Company..............................................18
        Section 5.4 Procedures for Indemnification..........................................18
        Section 5.5 Arbitration.............................................................19
        Section 5.6 No Consequential Damages; Exclusive Remedy..............................21
        Section 5.7 Tax Benefit.............................................................21
        Section 5.8 Mitigation..............................................................21
</TABLE>

                                      -i-

<PAGE>   3

<TABLE>
<S>                                                                                        <C>
ARTICLE VI  GENERAL PROVISIONS..............................................................22
        Section 6.1 Expenses................................................................22
        Section 6.2 Notices.................................................................22
        Section 6.3 Public Announcements....................................................23
        Section 6.4 Headings................................................................23
        Section 6.5 Severability............................................................23
        Section 6.6 Entire Agreement........................................................23
        Section 6.7 Assignment..............................................................24
        Section 6.8 No Third-Party Beneficiaries............................................24
        Section 6.9 Waivers and Amendments..................................................24
        Section 6.10 Specific Performance...................................................24
        Section 6.11 Governing Law..........................................................24
        Section 6.12 Counterparts...........................................................24
</TABLE>

EXHIBITS

<TABLE>
<S>            <C>
    A          Administrative Services Agreement
    B          Amended and Restated Charter
    C          Assignment and Assumption Agreement
    D          Bill of Sale
    E-1        ChartOne Demand Note A
    E-2        ChartOne Demand Note B
    F-1        ROI Business
    F-2        Company Business
    G-1        EDM License Agreement
    G-2        Secure Sign-On License Agreement
    G-3        ChartEngine License Agreement
</TABLE>

DISCLOSURE SCHEDULES

<TABLE>
<S>            <C>
     1.1       Permitted Encumbrances
     2.1(a)    Included Assets
     2.1(b)    Assumed Contracts
     2.1(c)    Technology & Licenses from Health + Cast LLC
     2.1(d)    Assumed Permits
     2.1(k)    Intellectual Property
     2.2       Excluded Assets
     2.3(e)    Assumed Actions
     2.4       Excluded Liabilities
     4.2(a)    Excepted Employees
</TABLE>

                                      -ii-

<PAGE>   4

                          ASSET CONTRIBUTION AGREEMENT

        ASSET CONTRIBUTION AGREEMENT, dated as of May 3, 2000, by and among
QUADRAMED CORPORATION, a Delaware corporation ("QM"), QUADRAMED OPERATING
CORPORATION, a Delaware corporation and wholly-owned subsidiary of QM ("QMOC,"
and collectively with QM, "Parent"), and CHARTONE, INC., a Delaware corporation
("Company").

                                    RECITALS:

        WHEREAS, Parent owns and operates release of information, file
management, on-site staffing, and off-site storage businesses based in San Jose,
California;

        WHEREAS, Parent desires to transfer such businesses to Company, a
wholly-owned subsidiary of QMOC; and

        WHEREAS, to effect such transfer, the parties desire that Parent will
transfer and assign certain assets and liabilities comprising such businesses to
Company in exchange for consideration to be paid to QMOC consisting of demand
notes of Company in the aggregate principal amount of $11,950,000, 2,130,000
shares of Series B Preferred Stock of Company and 1,200,000 shares of Series C
Preferred Stock of Company.

        NOW, THEREFORE, in consideration of the premises and of the mutual
agreements and covenants hereinafter set forth, Parent and Company hereby agree
as follows:

                                    ARTICLE I

                                   DEFINITIONS

        Section 1.1 Certain Defined Terms

        As used in this Agreement, the following terms have the following
meanings:

        "Action" means any claim, action, suit, arbitration or proceeding by or
before any Governmental Authority or arbitrator.

        "Administrative Services Agreement" means an interim administrative
service agreement substantially in the form of Exhibit A.

        "Affiliate" means, when used with respect to a specified Person, another
Person that, either directly or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with the Person
specified; provided that for purposes of this Agreement, an Affiliate of Parent
shall not include Company or any subsidiary of Company, and an Affiliate of
Company shall only include the direct subsidiaries of Company.

                                     -iii-

<PAGE>   5

        "Agreement" means this Asset Contribution Agreement dated as of May 3,
2000 by and between Parent and Company (including the Exhibits and Disclosure
Schedules hereto) and all amendments hereto.

        "Amended and Restated Charter" means the amended and restated
certificate of incorporation of Company, substantially in the form of Exhibit B.

        "Assignment and Assumption Agreement" means an assignment and assumption
agreement substantially in the form of Exhibit C.

        "Assumed Contracts" has the meaning specified in Section 2.1.

        "Assumed Liabilities" has the meaning specified in Section 2.3.

        "Assumed Permits" has the meaning specified in Section 2.1.

        "Bill of Sale" means a bill of sale substantially in the form of Exhibit
D.

        "Business Day" means any day that is not a Saturday, Sunday or other day
on which banks are required or authorized by law to be closed in the State of
California or the State of New York.

        "Business Employee" has the meaning specified in Section 4.2(a).

        "ChartOne Demand Note A" means that certain Demand Promissory Note, to
be made by Company for the benefit of QMOC on the Closing Date, in the principal
amount of $9,950,000, substantially in the form of Exhibit E-1.

        "ChartOne Demand Note B" means that certain Demand Promissory Note, to
be made by Company for the benefit of QMOC on the Closing Date, in the principal
amount of $2,000,000, substantially in the form of Exhibit E-2.

        "ChartOne Demand Notes" means ChartOne Demand Note A and ChartOne Demand
Note B.

        "Closing" has the meaning specified in Section 2 .7.

        "Closing Date" has the meaning specified in Section 2.7.

        "Common Stock" means the Common Stock, par value $0.001 per share, of
Company.

        "Company's Arbitrator" has the meaning specified in Section 5.5(c).

        "Contract" means and includes all contracts, subcontracts, agreements,
leases, options, notes, bonds, mortgages, indentures, deeds of trust, collateral
assignments of lease and rights, guarantees, licenses, franchises, purchase
orders, sales orders and commitments of every kind, written or oral.

                                      -2-
<PAGE>   6

        "Disclosure Schedules" means the Disclosure Schedules delivered to
Company by Parent pursuant to this Agreement.

        "Disputes" has the meaning specified in Section 5.5(a).

        "Disputing Person" has the meaning specified in Section 5.5(b).

        "Employee Benefit Plan" has the meaning specified in Section 4.2(b).

        "Encumbrance" means any security interest, pledge, mortgage, lien,
charge, adverse claim of ownership or use or other encumbrance of any kind.

        "Environmental Law" means any Law relating to pollution, natural
resources or protection of the environment.

        "Excluded Assets" has the meaning specified in Section 2.2.

        "Excluded Liabilities" has the meaning specified in Section 2.4.

        "Final Determination" has the meaning specified in Section 5.5(e).

        "GAAP" means United States generally accepted accounting principles.

        "Governmental Authority" means any United States federal, state or local
government, governmental, regulatory or administrative authority, agency or
commission or any court, tribunal or judicial or arbitral body.

        "Hazardous Materials" means any chemical, substance or waste regulated
or identified as toxic or hazardous under any Environmental Law or petroleum,
including crude oil or any fraction, or natural gas, including liquids and
synthetic gas usable for fuel.

        "Health+Cast" means Health+Cast, L.L.C., a Delaware corporation.

        "Health+Cast Guaranty" means the Commercial Guaranty, dated September
29, 1998, issued by Parent to Imperial Bank in the principal amount of Twelve
Million Five Hundred Dollars ($12,500,000) securing the obligations of
Health+Cast to Imperial Bank.

        "Income Taxes" means all (x) Taxes based upon, measured by, or
calculated with respect to (i) gross or net income or gross or net receipts or
profits (including, but not limited to, any capital gains, minimum taxes and any
Taxes on items of tax preference, but not including sales, use, goods and
services, real or personal property transfer or other similar Taxes) or (ii)
multiple bases (including, but not limited to, corporate franchise, doing
business or occupation Taxes) if one or more of the bases upon which such Tax
may be based upon, measured by, or calculated with respect to, is described in
clause (i) above and (y) withholding taxes measured by, or calculated with
respect to, any payments or distributions.

                                      -3-
<PAGE>   7

        "Intellectual Property" means: (i) the service mark "CHARTONE," (ii) the
domain names listed in Schedule 2.1(o) and (iii) the Software.

        "Internal Revenue Code" means the Internal Revenue Code of 1986, as
amended.

        "Knowledge of Parent" means the actual knowledge after reasonable
inquiry of John V. Cracchiolo, Keith M. Roberts, Ivar S. Chhina, James Durham,
Brian Moriarty, Michael Sanderson and Sharad Patel.

        "Law" means any United States federal, state, local statute, law,
ordinance, regulation, rule, code, order or rule of common law.

        "Leases" means all real property leases, subleases and occupancy
agreements related exclusively to the ROI Business, together with any amendments
thereto, a complete list of which is set forth on Schedule 2.1(b).

        "License Agreements" means the license agreements with respect to each
of the "EDM," "Secure Sign-On" and "ChartEngine" software, substantially in the
form of Exhibits G-1, G-2 and G-3, respectively.

        "Licenses" means all of the licenses, permits and other governmental
authorizations required for the operation of the ROI Business.

        "Material Adverse Effect" means any change, circumstance, or effect that
is materially adverse to the business, assets, condition (financial or
otherwise) or results of operations of the ROI Division, or prospects of the
business of the ROI Division as it is currently being conducted; provided,
however, that any adverse change, circumstance or effect that is primarily
caused by conditions affecting the United States economy as a whole or that
affects Parent but does not directly affect the ROI Division shall not be taken
into account in determining whether there has been or would be a "Material
Adverse Effect".

        "Material Contracts" means each of the following contracts to which
Parent or any of its Affiliates is a party as of the date hereof and which
exclusively relates to the ROI Division:

                (i) each contract and agreement for the purchase of goods or for
        the furnishing of services to Parent or Company under the terms of which
        Parent or Company is obligated to pay or otherwise give consideration of
        more than $100,000 in any 12 month period;

                (ii) each contract and agreement for the sale of goods or
        services by Parent or Company which is likely to involve payment to
        Parent or Company of more than $100,000 in any twelve (12) month period;

                (iii) all contracts and agreements relating to indebtedness for
        borrowed money in excess of $100,000 of Parent or Company;

                                      -4-
<PAGE>   8

                (iv) all contracts and agreements that limit or purport to limit
        the ability of Parent or Company to compete in any line of business or
        with any Person or in any geographic area or during any period of time;

                (v) each lease of real property involving more than 1,000 square
        feet;

                (vi) each lease of personal property involving more than
        $100,000 in the aggregate of rent over any 12 month period;

                (vii) each contract for engagement as an independent contractor
        of any Person on a full-time, part-time, consulting or other basis
        requiring Parent to make payments of more than $75,000 in the aggregate
        over any 12-month period, other than any contract that is terminable at
        will;

                (viii) each contract or indenture mortgaging, pledging or
        otherwise placing a material Encumbrance on any of the ROI Assets with
        value in excess of $25,000;

                (ix) any material license agreement, other than any license
        agreement for standard office software;

                (x) any other contract which is material to the ROI Division
        which obligates Parent or Company to make payments in excess of $100,000
        in the aggregate over any twelve (12) month period.

        "Notice of Arbitration" has the meaning specified in Section 5.5(b).

        "Parent Event of Breach" has the meaning specified in Section 5.2.

        "Parent Indemnitee" has the meaning specified in Section 5.3.

        "Parent Losses" has the meaning specified in Section 5.3.

        "Parent's Arbitrator" has the meaning specified in Section 5.5(c).

        "Permitted Encumbrances" means such of the following as to which no
notice has been received or enforcement, collection, execution, levy or
foreclosure proceeding shall have been commenced: (a) liens for taxes,
assessments and governmental charges or levies not yet due and payable or the
validity of which is being contested in good faith; (b) Encumbrances that arise
by operation of law, such as materialmen's, mechanics', workmen's', repairmen's.
warehousemen's and carrier's liens and other similar liens arising in the
ordinary course of business; (c) pledges or deposits to secure obligations under
workers' compensation laws or similar legislation or to secure public or
statutory obligations and (d) the Encumbrances listed on Schedule 1.1.

        "Person" means any individual, partnership, firm, corporation,
association, trust, limited liability company, unincorporated organization,
Governmental Authority or other entity, as well as any syndicate or group that
would be deemed to be a person under Section 13(d)(3) of the Securities Exchange
Act of 1934, as amended.

                                      -5-
<PAGE>   9

        "Return" means any report, return, declaration or other filing required
to be supplied to any taxing authority or jurisdiction with respect to Taxes
including any amendments thereto.

        "ROI Assets" has the meaning specified in Section 2.1.

        "ROI Business" means the release of information, file management,
on-site staffing, and off-site storage businesses of Parent, all as more fully
described in Exhibit F-1.

        "ROI Division" means the ROI Assets and the ROI Business.

        "ROI Division Financial Statements" means the unaudited balance sheet of
the ROI Division as of, and the unaudited statement of income for, (i) the year
ended December 31, 1999 and (ii) the quarter ended March 31, 2000.

        "Securities Act" means the Securities Act of 1933, as amended.

        "Series B Preferred Stock" means the Series B Convertible Preferred
Stock, par value $0.01 per share, of Company.

        "Series C Preferred Stock" means the Series C Convertible Preferred
Stock, par value $0.01 per share, of Company.

        "Software" means the software assigned or licensed to the Company
pursuant to the Software Assignment Agreement and the License Agreements, in
source or object code form, including all corresponding documentation.

        "Software Assignment Agreement" means the assignment conveying from
Parent to Company the internally-developed software assets set forth on Schedule
2.1(k).

        "Tax" or "Taxes" means all federal, state, local and foreign income,
profits, franchise, gross receipts, environmental, customs duty, capital stock,
severance, stamp, payroll, sales, employment, unemployment, disability, use,
property, withholding, excise, production, value added, occupancy and other
taxes, duties or assessments of any nature whatsoever, together with all
interest, penalties and additions imposed with respect to such amounts and any
interest in respect of such penalties and additions.

        "Tax Return" means all federal, state, local and foreign returns and
reports (including elections, declarations, disclosures, schedules, estimates
and information returns) required to be supplied to a Tax authority relating to
Taxes, including any amendments thereto.

        "Transaction Documents" means this Agreement, the Administrative
Services Agreement, the Assignment and Assumption Agreement, the Bill of Sale
and the License Agreements.

                                      -6-
<PAGE>   10

        Section 1.2 Other Definitional Provisions

        Unless the context requires otherwise, references to "Articles" and
"Sections" are to the Articles or Sections of this Agreement, and references to
"Exhibits" and "Schedules" are to the Exhibits and Schedules annexed hereto. Any
of the terms defined in this Article 1 may, unless the context requires
otherwise, be used in the singular or the plural depending on the reference.
Wherever used herein, the masculine pronoun shall include the feminine and the
neuter, as appropriate in the context. With respect to any matter or thing,
"including" or "includes" means including but not limited to such matter or
thing.

        Section 1.3 Parent

        "Parent" shall mean QM and QMOC collectively, and any liability assumed
or obligation undertaken by Parent hereunder shall be the joint and several
liability or obligation of QM and QMOC.

                                   ARTICLE II

                             CONTRIBUTION OF ASSETS

        Section 2.1 Transfer of Assets to Company

        Subject to the terms and conditions of this Agreement, at the Closing,
Parent shall transfer, convey, assign and deliver to Company, and Company shall
accept from Parent, free and clear of any Encumbrances, other than Permitted
Encumbrances, all of Parent's right, title and interest in and to all of the
assets of Parent, tangible or intangible, exclusively related to and used
exclusively by the ROI Business, as they exist as of the Closing Date, together
with all accrued benefits and rights pertaining thereto, including those assets
set forth on Schedule 2.1 and all of the following assets (collectively, the
"ROI Assets"):

        (a) all furniture, office and computer equipment, machinery, tools,
spare parts, automobiles and other vehicles, and other tangible personal
property in each case used exclusively in the operation of the ROI Business,
including those items described on Schedule 2.1(a) (other than those items
disposed of in the ordinary course of business since March 31, 2000);

        (b) all of Parent's interest in and to all of the Contracts exclusively
related to the ROI Business (the "Assumed Contracts"), including all Material
Contracts, a complete list of such Material Contracts being set forth on
Schedule 2.1(b);

        (c) all of Parent's interest in and to the technology and prepaid
licenses from Health+Cast, L.L.C., as more fully described on Schedule 2.1(c);

        (d) all of Parent's interest in and to all Permits used exclusively in
the operation of the ROI Business (the "Assumed Permits"), including those
described on Schedule 2.1(d);

                                      -7-
<PAGE>   11

        (e) all accounts receivable, notes receivable, prepaid expenses and
other receivables arising in each case exclusively out of the ROI Business and
outstanding as of the Closing Date;

        (f) all raw materials, work-in-process, finished goods, supplies and
other inventories in each case intended for use or sale by the ROI Business;

        (g) all claims, demands, causes of action, judgments and decrees in
favor of Parent arising exclusively out of the ROI Business;

        (h) cash in an aggregate amount equal to $2,125,000;

        (i) all books of account, financial, business and operational records
exclusively relating to the ROI Business, including customer and supplier lists,
accounts and records, forms and office supplies, advertising and promotional
literature, price lists, records of former employees of Parent who accept
employment with Company, and manuals in each case relating exclusively to the
ROI Business (but expressly excluding Tax Returns);

        (j) to the extent not otherwise set forth in this Section 2.1, all
assets set forth on the face of the March 31, 2000 balance sheet included in the
ROI Division Financial Statements, except such assets as shall have been
disposed of in the ordinary course of business since March 31, 2000;

        (k) all of Parent's interest in and to all databases, software, software
programs, object codes, source codes, systems documentation and user manuals
used exclusively with the ROI Business, and all proprietary information, trade
secrets, research records, test information, market surveys, marketing know how,
inventions, processes and procedures owned or licensed to the Parent and used
exclusively in connection with the ROI Business, including those listed on
Schedule 2.1(k);

        (l) all of the Parent's claims, refunds, causes of action, chooses in
action, rights of recovery and rights of setoff of any kind exclusively relating
to the ROI Business;

        (m) the right to receive and retain mail, accounts receivable payments
and other communications exclusively relating to the ROI Business;

        (n) the right to bill and receive payment for products shipped or
delivered and services performed by the ROI Division but unbilled or unpaid as
of the Closing;

        (o) to the extent transferable, all telephone numbers (e.g., toll free
numbers), fax numbers, Internet addresses and similar numbers or addresses
related to the ROI Business;

        (p) all other assets, properties, and rights of every kind used
exclusively in the ROI Business, on the Closing Date, known or unknown, fixed or
unfixed, accrued, absolute, contingent or otherwise, whether or not specifically
referred to in this Agreement.

                                      -8-
<PAGE>   12

        (q) 100% of the issued and outstanding shares of capital stock of
American Chart Guard Corporation, a Texas corporation ("ACGC"), consisting of
1,000 shares of common stock, $0.01 par value per share, of ACGC (the "ACGC
Shares").

        Section 2.2 Excluded Assets

        Notwithstanding any other provision of this Agreement, the term "ROI
Assets" shall not include, and Company shall not acquire hereunder: (A) any cash
or cash equivalents except as expressly provided in Section 2.1, (B) any
refunds, credits or other tax benefits with respect to any Taxes or any claims
therefor, (C) policies of insurance, fidelity, surety and similar bonds, and the
coverages afforded thereby, (D) any books of original financial entry and
internal accounting documents and records relating to the ROI Business that
Parent is required to retain pursuant to Law and any other books and records
relating to the ROI Business that Parent is required to retain pursuant to Law
(which Company shall have the right to copy and inspect), (E) the equity
interests, security interests and claims, demands and causes of action relating
to (i) the Health+Cast, LLC investment agreement and related documents listed in
Schedule 2.2, and (ii) the Non-Exclusive Reseller Agreement by and between
Parent and Health+Cast, dated September 29, 1998, (F) the "Secure Sign-On" and
"EDM" software, as more fully described in Schedule 2.2, except for the rights
thereto conferred pursuant to the License Agreements, (G) the "One Look" service
mark and the "MPI" software and (H) any assets of Parent not described in
Section 2.1 (collectively, the "Excluded Assets").

        Section 2.3 Liabilities and Contracts Assumed by Company

        Subject to the terms and conditions of this Agreement, at the Closing
Company shall assume and become responsible to pay, perform and discharge as if
the ROI Business had been operated by Company from the commencement thereof and
had never been owned by Parent, all of the debts, obligations and liabilities
arising out of or relating to the ROI Division, whether known or unknown, fixed
or unfixed, accrued, absolute, contingent or otherwise whether existing on the
Closing Date or arising at any time or arising theretofore or thereafter, and
(except for pending or, to the Knowledge of Parent, threatened Actions, all of
which are disclosed on Schedule 2.3(e)) whether or not such debts, obligations
and liabilities shall have been disclosed herein or reflected on the books and
records of the ROI Division, including the following debts, obligations, and
liabilities of Parent (collectively, the "Assumed Liabilities"):

        (a) all debts, obligations and liabilities with respect to the Material
Contracts and any other Assumed Contract;

        (b) all accounts payable, including all obligations of Parent under the
Leases, arising out of or exclusively related to the ROI Division;

        (c) all debts, obligations and liabilities with respect to the Assumed
Permits; and

        (d) all debts, obligations and liabilities of Parent with respect to the
Health+Cast Guaranty, in an amount not to exceed $12,500,000;

                                      -9-
<PAGE>   13

        (e) all debts, obligations and liabilities of Parent with respect to (i)
the Actions described on Schedule 2.3(e) and (ii) any other Actions (A) arising
in the ordinary course of business after the date hereof, (B) not listed on
Schedule 2.4 and (C) not pending or, to the Knowledge of Parent, not threatened
against the ROI Division, Parent or any of its Affiliates as of the date hereof;
and

        (f) all liabilities and obligations relating to the employees of the ROI
Business other than as expressly provided in Section 2.4 hereof.

        Upon assumption by Company of the Assumed Liabilities, Company shall be
entitled to all of Parent's rights and benefits thereunder, and Company shall
relieve Parent of its obligations to perform the same.

        Section 2.4 Retained Liabilities and Obligations

        Anything in this Agreement to the contrary notwithstanding, Parent shall
be responsible for all of the liabilities and obligations not hereby expressly
assumed by Company and Company shall not assume, or in any way be liable or
responsible for, any liabilities or obligations of Parent that are not expressly
assumed by Company under Section 2.3 hereof (the "Excluded Liabilities").
Without limiting the generality of the foregoing, the Excluded Liabilities shall
include: (A) any liability or obligation under Contracts or other agreements to
which Parent is a party or by or to which it or any of its assets, properties or
rights are bound or subject but which are not Assumed Contracts; (B) any
liability or obligation arising out of the employment by Parent or any of its
Affiliates of any employees, whether before or after the Closing Date, other
than any such employment liability or obligation which relates to the employees
of the ROI Business (excluding any such liability relating to the employee
benefit plans described in clause (F) below, or any severance obligation in
respect of any employee of Parent terminated in connection with the transactions
contemplated by this Agreement); (C) any liability or obligation of Parent owing
to any stockholder, subsidiary or Affiliate thereof; (D) any liabilities related
to (i) Income Taxes of the Parent, (ii) Taxes attributable to the transfer of
the ROI Assets pursuant to this Agreement, (iii) Taxes attributable to periods
ending on or prior to the Closing Date (except for sales taxes for products sold
by the ROI Division), (iv) Taxes of any person other than the Parent pursuant to
an agreement or otherwise and (v) any Taxes for which Company may be liable
under Treas. Reg Section 1.1502-6 or similar provisions of state or foreign law;
(E) any liability or obligation arising under any Environmental Law attributable
to or incurred as a result of any acts, omissions, or conditions first occurring
or in existence as of or prior to the Closing Date, including, but not limited
to, any liability or obligation with respect to the generation, release,
handling, discharge, treatment, storage, disposal, or presence of Hazardous
Materials; (F) except with respect to any contribution obligations directly
related to any Transferred Employee's period of coverage under or participation
in any 401(k) plan, any liability or obligation of Parent or any of its
Affiliates under any and all employee benefit arrangements or practices
providing retirement benefits, stock options, stock purchase rights or, in
connection with the transactions contemplated by this Agreement, severance; (G)
any obligations or liabilities in respect of written employment agreements
relating to the employment of any employee of Parent (with the exception of
contracts for the engagement of independent contractors); (H) any liability,

                                      -10-
<PAGE>   14

obligation or debt of Parent with respect to any Action (i) listed on Schedule
2.4 or (ii)(a) pending or, to the Knowledge of Parent, threatened against the
ROI Division, Parent or any of its Affiliates as of the Closing Date and (b) not
listed on Schedule 2.3(e); (I) except for the assumption by Company of all
Parent's debts, obligations and liabilities under the Health+Cast Guaranty (in
an amount not to exceed $12,500,000), any claim or cause of action by any party
in connection with any transaction, agreement or business relationship between
Parent and Health+Cast, or between the ROI Division and Health+Cast; (J) any
intercompany liabilities; and (K) liabilities exclusively arising out of or
related to any of the Excluded Assets.

        Section 2.5 Consideration for ROI Assets

        In exchange for the transfer by Parent to Company of the ROI Assets,
Company shall issue to QMOC (i) the ChartOne Demand Notes, (ii) 2,130,000 shares
of Series B Preferred Stock and (iii) 1,200,000 shares of Series C Preferred
Stock.

        Section 2.6 Closing

        Subject to the terms and conditions of this Agreement, the closing of
the transactions contemplated by this Agreement (the "Closing") shall take place
at 10:00 a.m., San Francisco time, on the date hereof at the offices of
Pillsbury Madison & Sutro LLP, 50 Fremont Street, San Francisco, California, or
at such other time or on such other date or at such other place as Company and
Parent may mutually agree upon in writing (the day on which the Closing takes
place being the "Closing Date"). At the Closing:

        (a) The Amended and Restated Charter shall have been filed with the
Delaware Secretary of State;

        (b) Parent shall execute and deliver to Company the Bill of Sale;

        (c) Parent shall transfer the ACGC Shares to Company, and Company shall
accept the ACGC Shares from Parent;

        (d) Company shall issue to QMOC the ChartOne Demand Notes and shall
issue and deliver to QMOC certificates representing 2,130,000 shares of Series B
Preferred Stock and 1,200,000 shares of Series C Preferred Stock; and

        (e) Parent and Company shall execute and deliver to each other the
Assignment and Assumption Agreement, the Administrative Services Agreement and
the License Agreements.

        Section 2.7 Subsequent Documentation

        Parent shall, at any time and from time to time after the Closing Date,
upon the request of Company and at the expense of Parent, do, execute,
acknowledge and deliver, or cause to be done, executed, acknowledged and
delivered, all such further deeds, assignments, transfers and conveyances as may
be required for the better assigning, transferring, granting, conveying and
confirming to Company or its successors and assigns, or for aiding and assisting
in collecting and

                                      -11-
<PAGE>   15

reducing to possession, any or all of the ROI Assets. Company shall, at any time
and from time to time after the Closing Date, upon the request of Parent and at
the expense of Company, do, execute, acknowledge and deliver, or cause to be
done, executed, acknowledged and delivered, all such further acknowledgments,
agreements and other documents as may be required for the better assignment to
and assumption by Company or its successors and assigns, of any or all of the
ROI Liabilities.

                                   ARTICLE III

                 REPRESENTATIONS AND WARRANTIES OF PARENT

        Parent hereby represents and warrants to Company as follows:

        Section 3.1 Purchase Entirely for Own Account

        This Agreement is made with Parent in reliance upon Parent's
representation to Company, which by Parent's execution of this Agreement Parent
hereby confirms, that the Series B Preferred Stock and the Series C Preferred
Stock to be acquired by QMOC and the Common Stock issuable upon conversion
thereof will be acquired for investment for QMOC's own account, not as a nominee
or agent, and not with a view to the resale or distribution of any part thereof,
and that QMOC has no present intention of selling, granting any participation
in, or otherwise distributing the same. By executing this Agreement, Parent
further represents that QMOC does not have any contract, undertaking, agreement
or arrangement with any person to sell, transfer or grant participation to such
person or to any third person, with respect to any shares of such Series B
Preferred Stock, Series C Preferred Stock or Common Stock.

        Section 3.2 Reliance Upon Parent's Representations

        Parent understands that the Series B Preferred Stock and the Series C
Preferred Stock are not, and any Common Stock acquired on conversion thereof at
the time of issuance may not be, registered under the Securities Act on the
ground that the sale provided for in this Agreement and the issuance of
securities hereunder is exempt from registration under the Securities Act
pursuant to section 4(2) thereof, and that Company's reliance on such exemption
is based on Parent's representations set forth herein.

        Section 3.3 Accredited Investor

        Parent is an "accredited investor" within the meaning of Rule 501 of
Regulation D promulgated under the Securities Act.

        Section 3.4 Disclaimer of Warranties.

        Other than as specifically set forth in this Agreement, Parent makes no
representation or warranty. EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT,
ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING

                                      -12-
<PAGE>   16

IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE
HEREBY EXPRESSLY DISCLAIMED.

                                   ARTICLE IV

                              ADDITIONAL AGREEMENTS

        Section 4.1 Taxes

        (a) Any sales, use or transfer taxes payable by reason of the sale and
transfer of any of the ROI Assets hereunder (other than income taxes) shall be
borne by Parent.

        (b) Parent agrees to timely file all Returns relating to the Taxes
referred to in subsection (a) above, after the review and consent of Company,
such consent not to be unreasonably withheld, and shall timely remit on behalf
of itself and Company all such Taxes reported on such Tax Returns or otherwise
due.

        (c) Within 30 days after the Closing Date, Company shall propose an
allocation of the consideration and any Assumed Liabilities, to the extent of
any gain recognized to Parent under Section 351 of the Internal Revenue Code
attributable to the status of such consideration or Assumed Liabilities as
"other property" within the meaning of Section 351(b) of the Internal Revenue
Code, among the ROI Assets (the "Allocation"). Parent and Company agree to act
in accordance with the Allocation on any Tax Returns or similar filings to the
extent Parent consents to such allocation, which consent shall not be
unreasonably withheld. In the event that any Tax authority disputes the
Allocation, Parent or Company, as the case may be, shall promptly notify the
other party of the nature of such dispute.

        Section 4.2 Employees and Employee Benefits

        (a) Except as set forth on Schedule 4.2(a), as of the Closing Date each
individual whose service primarily relates to the ROI Business on the date
hereof (a "Business Employee") and who is actively employed in the ROI Business
as of the Closing Date or on approved leave on the Closing Date because of jury
duty, family or medical leave, sick leave, vacation or military duty shall be
employed by Company effective on the Closing Date at the same rate of salary or
base hourly wage rate as paid by Parent or its Affiliates immediately prior to
the Closing Date. Each Business Employee who continues employment with Company
on and after the Closing Date is referred to herein as a "Transferred Employee."
Parent hereby agrees that neither Parent nor any of its Affiliates shall, at any
time prior to the second anniversary of the Closing Date solicit for employment
any Transferred Employee, other than pursuant to a general public solicitation.
Company hereby agrees that neither Company nor any of its Affiliates shall, at
any time prior to the second anniversary of the Closing Date, solicit for
employment any employee of parent or any of its Affiliates (excluding any
Transferred Employee), other than pursuant to a general public solicitation.
Except as provided otherwise in this Section 4.2 or the terms of any employment
agreement between Company and any Transferred Employee, the terms of each
Transferred Employee's employment with Company shall be upon such terms and
conditions as Company, in its sole discretion, shall determine. Nothing herein
expressed or

                                      -13-
<PAGE>   17

implied by this Agreement shall confer upon any Transferred Employee, or legal
representative thereof, any rights or remedies, including, without limitation,
any right to employment, or for any specified period, of any nature or kind
whatsoever, under or by reason of this Agreement.

        (b) Effective as of the Closing Date, Parent and Company shall take all
such actions as are necessary to cause Company to adopt, as a participating
employer, the employee benefit plans that are sponsored by Parent immediately
prior to the Closing Date for the benefit of the Transferred Employees (the
"Employee Benefit Plans"). Participation in the Employee Benefit Plans by the
Transferred Employees will continue on and after the Closing Date without
interruption on the same terms as then in effect for each such Transferred
Employee who was participating in such plans immediately prior to the Closing
Date. The Company and its Affiliates shall be responsible for all obligations
and liabilities relating to any Transferred Employee's period of coverage under
or participation in such Employee Benefit Plans on and after the Closing Date.

        Section 4.3 Access to Properties and Records

        From and after the Closing, Parent shall afford to Company, and to the
accountants, counsel and representatives of Company, full access during normal
business hours to all books and records of Parent relating to the ROI Business
during the period prior to the Closing, for purposes of performing periodic
audits of the financials of Company and shall furnish promptly to Company all
other information concerning the ROI Business, its properties and its personnel
as Company may reasonably request.

        Section 4.4 Further Action

        Subject to the terms and conditions herein provided, each of the parties
hereto covenants and agrees to use its reasonable efforts to deliver or cause to
be delivered such documents and other papers and to take or cause to be taken
such further actions as may be necessary, proper or advisable under applicable
Laws to consummate and make effective the transactions contemplated hereby.

        Section 4.5 Bulk Sales Compliance

        Company hereby waives compliance by Parent with any applicable laws
relating to bulk transfers in connection with the transactions contemplated
hereby. Parent shall indemnify Company with respect to any failure to comply
with such bulk transfer laws.

        Section 4.6 Assignment of Contracts and Warranties

        Notwithstanding anything contained herein to the contrary, no Assumed
Contract shall be assigned contrary to law or the terms of such Assumed Contract
and, with respect to Assumed Contracts that cannot be assigned to Company at the
Closing Date, the performance obligations of Parent thereunder shall, unless not
permitted by such Assumed Contract, be deemed to be subleased or subcontracted
to Company until such Assumed Contract has been assigned. Parent and Company
shall (i) use reasonable efforts to obtain all necessary consents and (ii)
cooperate

                                      -14-
<PAGE>   18

with each other in any arrangement designed to provide to Company the benefits
(including the exercise of rights) under any such Assumed Contracts, including
enforcement for the benefit of Company (and at Company's expense) of any and all
rights of Parent against a third party thereto arising out of the breach or
cancellation by such third party or otherwise. Parent shall (i) hold all monies
paid thereunder in trust for the account of Company and (ii) remit all such
money without set-off of any kind whatsoever to Company as promptly as possible.
Company shall indemnify Parent with respect to any obligations or liabilities
under or respect to any of such Assumed Contracts.

        Section 4.7 Section 351 Qualification

        Parent and Company shall each use its reasonable best efforts to cause
the transactions contemplated by this Agreement, including the transfer of the
ROI Assets to Company, to qualify under Section 351 of the Internal Revenue
Code.

        Section 4.8 Consent to Assignment of Leases

        Notwithstanding any provision of Section 4.6 hereto to the contrary,
Parent and Company shall use reasonable efforts to obtain the consent of each
lessor or sublessor under each of the Leases within thirty (30) days following
the date hereof.

        Section 4.9 Intellectual Property

        Parent will not use, seek to register, register or authorize others to
use, seek to register or register the Intellectual Property or any other
intellectual property substantially or confusingly similar thereto anywhere in
the world and will not challenge Company's right to use, seek to register or
register the Intellectual Property anywhere in the world.

        Section 4.10 Covenants Not To Compete

        (a) Covenant of Parent.

                (i) Parent agrees that for the period commencing on the Closing
        Date and ending on the first anniversary of the Closing Date (such
        period is hereinafter referred to as the "Restricted Period"), Parent
        shall not anywhere in North America participate or engage, directly or
        indirectly, for itself or on behalf of or in conjunction with any
        Person, whether as an employee, agent, officer, consultant, director,
        shareholder, partner, joint venturer, investor or otherwise, in the
        Company Business; provided, however, that the foregoing shall not
        prohibit the ownership by Parent of an equity interest in Company or
        other equity securities of a public company in an amount not to exceed
        2% of the issued and outstanding shares of such company. For purposes of
        this Section 4.10(a), the "Company Business" means the business
        activities described on Exhibit F-2 hereto.

                (ii) Parent acknowledges that the agreements and covenants
        contained in this Section 4.10(a) are essential to protect the value of
        the ROI Assets being conveyed to Company. Parent agrees that a monetary
        remedy for a breach of the agreements set forth

                                      -15-
<PAGE>   19

        in this Section 4.10(a) will be inadequate and impracticable and further
        agree that such a breach would cause Company irreparable harm, and that
        Company shall be entitled to temporary and permanent injunctive relief
        without the necessity of proving actual damages. In the event of such a
        breach, Parent agrees that Company shall be entitled to such injunctive
        relief, including temporary restraining orders, preliminary injunctions
        and permanent injunctions as a court of competent jurisdiction shall
        determine.

                (iii) If any provision of this Section 4.10(a) is invalid in
        part, it shall be curtailed, as to time, location or scope, to the
        minimum extent required for its validity under the laws of the United
        States and shall be binding and enforceable with respect to Parent as so
        curtailed.

                (iv) Parent acknowledges that the Company Business is or may be
        conducted throughout the United States and that its clients are or may
        be located throughout the United States and that a business competitive
        with Company may be carried on anywhere within these areas as a result
        of the unique use of Internet, telephonic, technologic and other
        advanced communications techniques. Parent recognizes and acknowledges
        that the restrictions and limitations set forth in this Agreement are
        legitimate and fair in light Parent's access to confidential information
        relating to Company, Parent's substantial contacts with clients of
        Company and Company's need to market its services and products.

        (b) Covenant of Company.

                (i) Company agrees that for the Restricted Period, Company shall
        not anywhere in North America participate or engage, directly or
        indirectly, for itself or on behalf of or in conjunction with any
        Person, whether as an employee, agent, officer, consultant, director,
        shareholder, partner, joint venturer, investor or otherwise, in the
        Parent Business; provided, however, that the foregoing shall not
        prohibit the ownership by Company of the Shares or other equity
        securities of a public company in an amount not to exceed 2% of the
        issued and outstanding shares of such company. For purposes of this
        Section 4.10(b), the "Parent Business" means professional services,
        consulting, installation, training and education in the following areas
        of the healthcare industry: financial and clinical decision support;
        coding and grouping; abstracting; compliance; accounts receivable and
        cash management; managed care payment review; capitation audits, charge
        data master review; nurse staffing/acuity/resource management;
        electronic data interchange (EDI); business office interim department
        management and outsourcing.

                (ii) Company acknowledges that the agreements and covenants
        contained in this Section 4.10(b) are essential to protect the value of
        the assets of Parent from and after the Closing. Company agrees that a
        monetary remedy for a breach of the agreements set forth in this Section
        4.10(b) will be inadequate and impracticable and further agree that such
        a breach would cause Parent irreparable harm, and that Parent shall be
        entitled to temporary and permanent injunctive relief without the
        necessity of proving actual damages. In the event of such a breach,
        Company agrees that Parent shall be entitled to

                                      -16-
<PAGE>   20

        such injunctive relief, including temporary restraining orders,
        preliminary injunctions and permanent injunctions as a court of
        competent jurisdiction shall determine.

                (iii) If any provision of this Section 4.10(b) is invalid in
        part, it shall be curtailed, as to time, location or scope, to the
        minimum extent required for its validity under the laws of the United
        States and shall be binding and enforceable with respect to Company as
        so curtailed.

                (iv) Company acknowledges that the Parent Business is or may be
        conducted throughout the United States and that its clients are or may
        be located throughout the United States and that a business competitive
        with Parent may be carried on anywhere within these areas as a result of
        the unique use of Internet, telephonic, technologic and other advanced
        communications techniques. Company recognizes and acknowledges that the
        restrictions and limitations set forth in this Agreement are legitimate
        and fair in light Company's access to confidential information relating
        to Parent, Company's substantial contacts with clients of Parent and
        Parent's need to market its services and products.

                                    ARTICLE V

                            SURVIVAL; INDEMNIFICATION

        Section 5.1 Survival

        All representations and warranties contained in this Agreement or in any
certificate delivered pursuant to this Agreement shall survive until March 31,
2002.

        Section 5.2 Indemnification by Parent

        Notwithstanding the Closing or the delivery of the ROI Assets and
regardless of any investigation at any time made by or on behalf of Company or
of any knowledge or information that the Company may have, Parent shall
indemnify and fully defend, save and hold Company and its respective Affiliates,
directors, officers and employees (the "Company Indemnitees"), harmless if any
Company Indemnitee shall at any time or from time to time suffer any damage,
liability, loss, cost, expense (including all reasonable attorneys' fees
incurred by the Company Indemnitees in any action or proceeding between Parent
and the Company Indemnitees or between the Company Indemnitees and any third
party or otherwise), deficiency, interest, penalty, impositions, assessments or
fines (collectively, "Company Losses") arising out of or resulting from, or
shall pay or become obliged to pay any sum on account of, any and all the Parent
Events of Breach. As used herein, "Parent Event of Breach" shall be and mean any
one or more of the following:

                (a) any failure of Parent duly to perform or observe any term
        provision, covenant, agreement contained herein on the part of Parent be
        performed or observed;

                (b) any claim or cause of action by any party against any
        Company Indemnitee, with respect to the Excluded Liabilities or the
        Excluded Assets;

                                      -17-
<PAGE>   21

                (c) any claims brought by Health+Cast or any other third party
        in connection with any failure of Parent to assign to Company, or to
        obtain consent from Health+Cast as to the assignment to Company of, as
        of the date hereof, (i) the Non-Exclusive Reseller Agreement by and
        between Parent and Health+Cast, dated September 29, 1998 or (ii) the
        Non-Exclusive License Agreement by and between Parent and Health+Cast,
        dated March 31, 1999; or

                (d) any withdrawal liability (imposed under Section 4201 of the
        Employee Retirement Income Security Act of 1974, as amended ("ERISA"))
        in connection with the transactions contemplated by this Agreement.

        Section 5.3 Indemnification by Company

        Notwithstanding the Closing or the delivery of the ROI Assets, Company
shall indemnify and agree to fully defend, save and hold Parent and its
Affiliates, directors, officers and employees (the "Parent Indemnitees"),
harmless if any Parent Indemnitee shall at any time or from time to time suffer
any damage, liability, loss, cost, expense (including all reasonable attorneys'
fees incurred by the Parent Indemnitees in any action or proceeding between
Company and the Parent Indemnitees or between the Parent Indemnitees and any
third party or otherwise), deficiency, interest, penalty, impositions,
assessments or fines (collectively, "Parent Losses") arising out of or resulting
from, or shall pay or become obligated to pay any sum on account of, any and all
Company Events of Breach. As used herein, "Company Events of Breach" shall be
construed to be and mean any one or more of the following:

                (a) any failure of Company duly to perform or observe any term,
        provision, covenant or agreement contained herein on the part of Company
        to be performed or observed after the Closing Date; or

                (b) any claim or cause of action by any party against any Parent
        Indemnitee with respect to the ROI Assets or Assumed Liabilities.

        Section 5.4 Procedures for Indemnification

        If a party entitled to indemnification pursuant to this Article V (an
"Indemnified Party") becomes aware of any liability, loss, damage, claim, cost
or expense with respect to which a claim for indemnification may be asserted
pursuant to this Article V, or if any claim is made by a third Person or any
suit, action, investigation, claim or proceeding (a "Proceeding") commenced for
which the Indemnified Party shall seek indemnity from the Indemnifying Party,
the Indemnified Party shall, with reasonable promptness, give to such
Indemnifying Party written notice of such Proceeding and request the
Indemnifying Party to defend the same, provided, however, that the failure of an
Indemnified Party to deliver such written notice with reasonable promptness
shall not be deemed to bar or otherwise limit the rights of the Indemnified
Party hereunder unless such failure materially prejudices the rights or defenses
of the Indemnifying Party. The Indemnifying Party agrees to defend such claim,
action or proceeding at its own expense, and shall give written notice to the
Indemnified Party of the commencement of such defense with reasonable promptness
after the giving of the written notice of the claim by the

                                      -18-
<PAGE>   22

Indemnified Party. The Indemnified Party shall have the right, but not the
obligation, to participate at its own expense with the Indemnifying Party in
such defense (subject to the right of the Indemnifying Party to control such
defense), but shall not be entitled in any way to release, waive, settle, modify
or pay such claim, action or proceeding without the written consent of the
Indemnifying Party, if the Indemnifying Party has assumed such defense. The
Indemnified Party shall, in any case, fully cooperate with and assist the
Indemnifying Party to the extent reasonably possible. If the Indemnifying Party
fails to timely defend, contest or otherwise protect against such Proceeding,
the Indemnified Party shall have the full right to defend against such claim,
action or proceeding in such manner as it may deem appropriate, including,
without limitation, the right to make any compromise or settlement thereof
(subject to the consent of the Indemnifying Party, which consent shall not be
unreasonably withheld), and the Indemnified Party shall be entitled to recover
the entire cost thereof from the Indemnifying Party, including, without
limitation, reasonable attorneys' fees, disbursements and amounts paid as the
result of such Proceeding, and the Indemnifying Party shall be bound by any
determination made in such Proceeding or (subject to the consent of the
Indemnifying Party, which consent shall not be unreasonably withheld) any
compromise or settlement effected by the Indemnified Party. In the event the
Indemnifying Party shall assume the defense, no compromise or settlement of such
claims may be effected by the Indemnifying Party without the Indemnified Party's
consent (which consent shall not be unreasonably withheld, provided, however
that the Indemnified Party may withhold such consent at its discretion if, in
its judgment, such compromise or settlement would have an adverse impact on the
future operations of the Indemnified Party).

        Section 5.5 Arbitration

        (a) Company and Parent agree that the arbitration procedure set forth
below shall be the sole and exclusive method for resolving and remedying claims
for money damages arising out of the provisions of this Agreement (the
"Disputes"). Nothing in this Section 5.5 shall prohibit either Company or Parent
from instituting litigation to enforce any Final Determination (as defined
below). The parties hereby agree and acknowledge that, except as otherwise
provided in this Section 5.5 or in the Commercial Arbitration Rules of the
American Arbitration Association as in effect from time to time, the arbitration
procedures and any Final Determination hereunder shall be governed by, and shall
be enforced pursuant to applicable Delaware law.

        (b) In the event that either Company or Parent asserts that there exists
a Dispute, such party shall deliver a written notice to each other party
involved therein specifying the nature of the asserted Dispute and requesting a
meeting to attempt to resolve the same. If no such resolution is reached within
ten Business Days after such delivery of such notice, the party delivering such
notice of Dispute (the "Disputing Person") may, within 45 Business Days after
delivery of such notice, commence arbitration hereunder by delivering to each
other party involved therein a notice of arbitration (a "Notice of
Arbitration"). Such Notice of Arbitration shall specify the matters as to which
arbitration is sought, the nature of any Dispute, the claims of each party to
the arbitration and shall specify the amount and nature of any damages, if any,
sought to be recovered as a result of any alleged claim, and any other matters
required by the

                                      -19-
<PAGE>   23

Commercial Arbitration Rules of the American Arbitration Association in effect
from time to time to be included therein, if any.

        (c) Company and Parent each shall select one arbitrator expert in the
subject matter of the Dispute (the arbitrators so selected shall be referred to
herein as the "Company's Arbitrator" and the "Parent's Arbitrator,"
respectively). In the event that either party fails to select an arbitrator as
set forth herein within 20 calendar days from the delivery of a Notice of
Arbitration, then the matter shall be resolved by the arbitrator selected by the
other party. The Parent's Arbitrator and Company's Arbitrator shall select a
third independent, neutral arbitrator expert in the subject matter of the
dispute, and the three arbitrators so selected shall resolve the matter
according to the procedures set forth in this Section 5.5. If the Parent's
Arbitrator and Company's Arbitrator are unable to agree on a third arbitrator
within 20 calendar days after their selection, the Parent's Arbitrator and
Company's Arbitrator shall each prepare a list of three independent arbitrators.
The Parent's Arbitrator and Company's Arbitrator shall each have the opportunity
to designate as objectionable and eliminate one arbitrator from the other
arbitrator's list within seven calendar days after submission thereof, and the
third arbitrator shall then be selected by lot from the arbitrators remaining on
the lists submitted by the Parent's Arbitrator and Company's Arbitrator.

        (d) The arbitrator(s) selected pursuant to Section 5.5(c) above will
determine the allocation of the costs and expenses of arbitration based upon the
percentage which the portion of the contested amount not awarded to each party
bears to the amount actually contested by such party. For example, if Company
submits a claim for $1,000 and if Parent contests only $500 of the amount
claimed by Company, and if the arbitrator(s) ultimately resolves the dispute by
awarding Company $300 of the $500 contested, then the costs and expenses of
arbitration will be allocated 60% (that is, 300 divided by 500) to Parent and
40% (that is, 200 divided by 500) to Company.

        (e) The arbitration shall be conducted in the State of Delaware under
the Commercial Arbitration Rules of the American Arbitration Association as in
effect from time to time, except as modified by the agreement of all of the
parties to this Agreement. The arbitrator(s) shall so conduct the arbitration
that a final result, determination, finding, judgment and/or award (the "Final
Determination") is made or rendered as soon as practicable, but in no event
later than 90 Business Days after the delivery of the Notice of Arbitration nor
later than 10 calendar days following completion of the arbitration. The Final
Determination must be agreed upon and signed by the sole arbitrator or by at
least two of the three arbitrators (as the case may be). The Final Determination
shall be final and binding on all parties and there shall be no appeal from or
reexamination of the Final Determination, except for fraud, perjury, evident
partiality or misconduct by an arbitrator prejudicing the rights of any party
and to correct manifest clerical errors.

        (f) Company and Parent may enforce any Final Determination in any state
or federal court located in the State of Delaware. For the purpose of any action
or proceeding instituted with respect to any Final Determination, each party
hereto hereby irrevocably submits to the jurisdiction of such courts,
irrevocably consents to the service of process by registered mail or personal
service and hereby irrevocably waives, to the fullest extent permitted by law,
any

                                      -20-
<PAGE>   24

objection which it may have or hereafter have as to personal jurisdiction, the
laying of the venue of any such action or proceeding brought in any such court
and any claim that any such action or proceeding brought in any court has been
brought in an inconvenient forum.

        (g) Any party required to make a payment pursuant to this Section 55
shall pay the party entitled to receive such payment within ten calendar days of
the delivery of the Final Determination to such responsible party. If any party
shall fail to pay the amount of any damages, if any, assessed against it within
such ten calendar day period, the unpaid amount shall bear interest from the
date of such delivery at the lesser of (i) the prime rate of interest published
by the Board of Governors of the Federal Reserve System as the "Bank Prime Loan"
rate, in effect from time to time (which rate shall be adjusted on the effective
date of each change in such prime rate) plus 2.00% and (ii) the maximum rate
permitted by applicable usury laws. Interest on any such unpaid amount shall be
compounded semi-annually, computed on the basis of a 360-day year consisting of
twelve 30-day months and shall be payable on demand. In addition, such party
shall promptly reimburse the other party for any and all costs and expenses of
any nature or kind whatsoever (including but not limited to all attorney's fees)
incurred in seeking to collect such damages or to enforce any Final
Determination.

        Section 5.6 No Consequential Damages; Exclusive Remedy

        No party hereto shall have any liability for loss of profit or
consequential damages with respect to this Agreement or the transactions
contemplated hereby. Absent fraud, the indemnification provided by this Article
V shall be the sole and exclusive remedy available to the parties hereto with
respect to any claim or cause of action based upon, relating to or arising out
of this Agreement or otherwise in respect of the transactions contemplated
hereby, whether such claim or cause of action arises out of any contract, tort
or otherwise.

        Section 5.7 Tax Benefit

        Notwithstanding the above, if losses, damages, claims, costs or expenses
are incurred by any party which are indemnifiable under this Article V, and if
indemnification of any losses, damages, claims, costs or expenses would result
in a deduction, credit or other tax benefit to the Indemnified Party under
federal or state laws, the amount indemnifiable under this Article V shall be
reduced to reflect such tax benefit.

        Section 5.8 Mitigation

        Each Indemnified Party shall use reasonable efforts to mitigate any
liabilities and damages for which it may claim indemnification under this
Article V. To the extent that the operations of Company at any time that Company
is not under the control of Parent contribute to or aggravate any liabilities or
damages as to which indemnification is available under Section 5.2, Parent's
indemnification obligation will be reduced by such contribution or aggravation.

                                      -21-
<PAGE>   25

                                   ARTICLE VI

                               GENERAL PROVISIONS

        Section 6.1 Expenses

        Except as otherwise provided herein, all costs and expenses, including,
without limitation, fees and disbursements of counsel, financial advisors and
accountants, incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring such costs and
expenses.

        Section 6.2 Notices

        All notices, requests, claims, demands and other communications
hereunder shall be in writing and shall be given or made (and shall be deemed to
have been duly given or made upon receipt) by delivery in person, by courier
service, by cable, by telecopy, by telegram, by telex or by registered or
certified mail (postage prepaid, return receipt requested) to the respective
parties at the following addresses (or at such other address for a party as
shall be specified in a notice given in accordance with this Section 6.2):

        (a)    if to Parent:

        QuadraMed Corporation
        22 Pelican Way
        San Rafael, CA 94901
        Attention:  James Durham
        Telecopier: 415-455-1468
        Telephone: 415-482-2224

        with a copy to:

        Pillsbury Madison & Sutro LLP
        50 Fremont Street
        San Francisco, California 94105
        Attention: D. Stanley Rowland, Esq.
        Telecopier: (415) 983-1200
        Telephone: (415) 983-1000

        (b)    if to Company:

        ChartOne, Inc.
        226 Airport Parkway
        Suite 200
        San Jose, CA 95110
        Attention:  Ivar Chhina, President
        Telecopier: 408-451-9649

                                      -22-
<PAGE>   26

        Telephone: 408-453-1600

        with a copy to:

        Pillsbury Madison & Sutro LLP
        50 Fremont Street
        San Francisco, California 94105
        Attention: D. Stanley Rowland, Esq.
        Telecopier: (415) 983-1200
        Telephone: (415) 983-1000

        Section 6.3 Public Announcements

        Parent shall use reasonable efforts to consult with Company before
issuing any press release or otherwise making any public statement with respect
to this Agreement or the transactions contemplated hereby, unless otherwise
required by applicable law or by obligation pursuant to any listing agreement
with or rules of any securities exchange. Except as otherwise provided in this
Section 6.3 or required by Law, no party to this Agreement shall make any public
announcements in respect of this Agreement or the transactions contemplated
hereby, or use the name of any other party hereto in any public announcement,
without the prior written consent of the other parties hereto, which consent
shall not be unreasonably withheld or delayed.

        Section 6.4 Headings

        The headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement.

        Section 6.5 Severability

        If any term or other provision of this Agreement is invalid, illegal or
incapable of being enforced by any rule of law or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full
force and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner adverse to any party. Upon
such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the parties hereto shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the parties as
closely as possible in a mutually acceptable manner in order that the
transactions contemplated hereby be consummated as originally contemplated to
the greatest extent possible.

        Section 6.6 Entire Agreement

        This Agreement (including the Schedules and Exhibits) constitutes the
entire agreement of the parties hereto with respect to the subject matter hereof
and supersedes all prior agreements and undertakings, both written and oral
between Company and Parent with respect to the subject matter hereof and except
as otherwise expressly provided herein.

                                      -23-
<PAGE>   27

        Section 6.7 Assignment

        Neither this Agreement nor any of the rights and obligations of the
parties hereunder may be assigned by any of the parties hereto without the prior
consent of each other parties hereto. Notwithstanding the foregoing, any party
assigning its rights or obligations hereunder shall remain liable for all of its
respective obligations under this Agreement. Subject to the preceding sentence,
this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns and no other Person shall
have any right, obligation or benefit hereunder.

        Section 6.8 No Third-Party Beneficiaries

        This Agreement is for the sole benefit of the parties hereto and their
permitted assigns and nothing herein, express or implied, is intended to or
shall confer upon any other Person or entity any legal or equitable right,
benefit or remedy of any nature whatsoever under or by reason of this Agreement.

        Section 6.9 Waivers and Amendments

        This Agreement may be amended or modified, and the terms and conditions
hereof may be waived, only by a written instrument signed by the parties hereto
or, in the case of a waiver, by the party waiving compliance. No delay on the
part of any party in exercising any right, power or privilege hereunder shall
operate as a waiver thereof, nor shall any waiver on the part of any party of
any right, power or privilege hereunder, nor any single or partial exercise of
any other right, power or privilege hereunder, preclude any other or further
exercise thereof or the exercise of any other right, power or privilege
hereunder. The rights and remedies herein provided are cumulative and are not
exclusive of any rights or remedies which any party may otherwise have at law or
in equity.

        Section 6.10 Specific Performance

        The parties hereto agree that irreparable damage would occur in the
event any provision of this Agreement required to be performed prior to the
Closing was not performed in accordance with the terms hereof and that, prior to
the Closing, the parties shall be entitled to specific performance of the terms
hereof, in addition to any other remedy at law or in equity.

        Section 6.11 Governing Law

        This Agreement shall be governed by, and construed in accordance with,
the laws of the State of Delaware applicable to contracts executed in and to be
performed in that State.

        Section 6.12 Counterparts

        This Agreement may be executed in one or more counterparts, and by the
different parties hereto in separate counterparts, each of which when executed
shall be deemed to be an original but all of which taken together shall
constitute one and the same agreement.

                                      -24-
<PAGE>   28

        IN WITNESS WHEREOF, the parties hereto have caused this Asset
Contribution Agreement to be executed as of the date first written above by
their respective officers.

                                            QUADRAMED CORPORATION

                                            By: /s/ James D. Durham
                                               ---------------------------------
                                               Name: James D. Durham
                                               Title: CEO

                                            QUADRAMED OPERATING CORPORATION

                                            By: /s/ John V. Cracchiolo
                                               ---------------------------------
                                               Name: John V. Cracchiolo
                                               Title: Treasurer

                                            CHARTONE, INC.

                                            By: /s/ Ivar S. Chhina
                                               ---------------------------------
                                               Name:
                                               Title:

                                      -25-

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