Document:

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                                                                     EXHIBIT 4.1

                                  GARTNER, INC.

                                       AND

                    AMERICAN STOCK TRANSFER & TRUST COMPANY,

                                 AS RIGHTS AGENT

                  SECOND AMENDED AND RESTATED RIGHTS AGREEMENT

                          DATED AS OF NOVEMBER 6, 2006

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                                RIGHTS AGREEMENT

     This Second Amended and Restated Rights Agreement (the "AGREEMENT"), is
entered into as of November 6, 2006, by and between Gartner, Inc., a Delaware
corporation (f/k/a Gartner Group, Inc.) (the "COMPANY"), and American Stock
Transfer & Trust Company, a New York banking corporation, as successor Rights
Agent of Mellon Investor Services LLC (the "RIGHTS AGENT"), and amends and
restates the Amended and Restated Rights Agreement, dated as of August 31, 2002,
as amended, by and between the Company and Mellon Investor Services LLC, a New
Jersey limited liability company.

     On February 9, 2000 (the "RIGHTS DIVIDEND DECLARATION DATE"), the Board of
Directors of the Company authorized and declared a dividend of one Class A
Preferred Share Purchase Right (a "CLASS A RIGHT") for each share of the
Company's Class A Common Stock outstanding as of the Close of Business (as
hereinafter defined) and one Class B Preferred Share Purchase Right (a "CLASS B
RIGHT") for each share of the Company's Class B Common Stock outstanding on
February 25, 2000 (the "RECORD DATE"), each Class A Right representing the right
to purchase one one-thousandth of a share of Series A Junior Participating
Preferred Stock, and each Class B Right representing the right to purchase one
one-thousandth of a share of Series B Junior Participating Preferred Stock, and
further authorized and directed the issuance of one Class A Right and one Class
B Right with respect to each share of the Company's Class A Common Stock and
each share of the Company's Class B Common Stock, respectively, 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.

     On August 31, 2002, the Company and Mellon Investor Services LLC, as
successor rights agent of Fleet National Bank, entered into an Amended and
Restated Rights Agreement, which amended and restated the Rights Agreement,
dated as of February 10, 2000, as amended, by and between the Company and Fleet
National Bank (f/k/a Bank Boston, N.A.).

     On June 30, 2003, the Company and Mellon Investor Services LLC entered into
Amendment No. 1 to the Amended and Restated Rights Agreement.

     On September 1, 2006, the Company and American Stock Transfer & Trust
Company, as successor rights agent of Mellon Investor Services LLC, entered into
Amendment No. 2 to the Amended and Restated Rights Agreement.

     Through an amendment and restatement of the Company's certificate of
incorporation filed with the Secretary of State of the State of Delaware on July
6, 2005, the Company's Class A Common Stock and Class B Common Stock were
reclassified into a single class of Common Stock, with each share of Class A
Common Stock and each share of Class B Common Stock being reclassified into one
share of Common Stock (the "RECLASSIFICATION"). This Agreement is being entered
into in order to make each Class A Right and each Class B Right (which were
formerly applicable to the Class A Common Stock and Class B Common Stock,
respectively), applicable to
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the single class of the Company's Common Stock, such that each Class A Right and
each Class B Right (subsequent to the date hereof, each a "RIGHT") shall
represent the right to purchase one one-thousandth of a share of Series A Junior
Participating Preferred Stock, with each Right having the properties, rights and
preferences as set forth in this Agreement and the exhibits hereto.

     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 any
Excluded Person (as such term is hereinafter defined) or any Excepted Person (as
such term is hereinafter defined) but in the case of an Excepted Person only for
so long as such Person continues to meet the definition of an Excepted Person,
as determined by the Board of Directors of the Company in its good faith
discretion. 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 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 February 10, 2000, any Person was the Beneficial Owner of 20% or
more of the Common Shares outstanding, such Person shall not be or become an
"Acquiring Person," as defined

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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; and (iii)
if after February 10, 2000 any Person or any of such Person's Affiliates or
Associates, becomes the Beneficial Owner of 20% or more of the Common Shares of
the Company then outstanding pursuant to (or as contemplated by) an agreement
that has been approved by the Board of Directors of the Company prior to such
Person becoming an Acquiring Person, neither (i) such Person or any of such
Person's Affiliates or Associates nor (ii) any transferee of such Person or such
Person's Affiliates or Associates, provided that in the case of this subclause
(ii) such transferee is not, either before or after giving effect to each such
transfer, the Beneficial Owner of 20% or more of the Company's Common Shares
then outstanding, shall 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 or such Person's Affiliates, Associates or transferees 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% of the
Company's 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

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

          (f) "CLOSE OF BUSINESS" on any given date shall mean 5:00 P.M.,
Connecticut time, on such date; provided, however, that if such date is not a
Business Day it shall mean 5:00 P.M., Connecticut time, on the next succeeding
Business Day.

          (g) "COMMON SHARES" when used with reference to the Company shall mean
the shares of Common Stock of the Company, par value at $0.0005 per share.
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.

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

          (i) "COMPANY" shall mean Gartner, Inc., a Delaware corporation,
subject to the terms of Section 13(a)(iii)(C) hereof.

          (j) "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
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 (which determination shall be described in a statement filed with the
Rights Agent) 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 (x) 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 (y) 1,000. 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.

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

          (l) "DISTRIBUTION DATE" shall mean the earlier of (i) the Close of
Business on the tenth (10th) day after the Shares Acquisition Date (or, if the
tenth (10th) 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 (10th) 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
the Exchange Act, if, assuming the successful consummation thereof, such Person
would be an Acquiring Person.

          (m) "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.

          (n) "EXCEPTED PERCENTAGE" applicable to any Excepted Person shall, at
any particular time, be a percentage of the then outstanding number of Common
Shares beneficially owned by such Person, which percentage shall be equal to the
sum of (a) the lesser of (i) the percentage of the outstanding Common Shares
beneficially owned by such Person on February 10, 2000 and (ii) the lowest
percentage of the outstanding Common Shares beneficially owned by such Person at
any time thereafter, plus (b) 1% of the outstanding Common Shares.

          (o) "EXCEPTED PERSON" shall mean any Passive Investor that as of
February 10, 2000 was the Beneficial Owner of 20% or more of the outstanding
Common Shares; so long as such Passive Investor (i) continues to be a Passive
Investor, (ii) does not become the Beneficial Owner of Common Shares in excess
of the Excepted Percentage; and (iii) does not become the Beneficial Owner of
less than 19% of the then outstanding Common Shares.

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

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

          (r) "EXCLUDED PERSON" shall mean 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.

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

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          (t) "EXPIRATION DATE" shall mean the earliest 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 of the Company orders the exchange of the
Rights as provided in Section 24 hereof.

          (u) "FINAL EXPIRATION DATE" shall mean February 25, 2010.

          (v) "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 stockholders.

          (w) "NASDAQ" shall mean The Nasdaq Global Stock Market, Inc.

          (x) "PASSIVE INVESTOR" shall mean a Person required by Rule 13d-1(a)
of Regulation D-G promulgated under the Exchange Act, as amended to file a
statement on Schedule 13D in respect of such Person's beneficial ownership of
the Company's Common Shares, but who may, in lieu of filing such statement on
Schedule 13D, file a statement on Schedule 13G pursuant to Rule 13d-1(b) or Rule
13d-1(c) of Regulation D-G.

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

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

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

          (bb) "PREFERRED SHARES" shall mean shares of Series A Junior
Participating Preferred Stock, par value $0.01 per share, of the Company.

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

          (dd) "RECORD DATE" shall have the meaning set forth in the recitals at
the beginning of this Agreement.

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

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

          (gg) "RIGHTS AGENT" shall mean American Stock Transfer & Trust
Company, or its successor or replacement as provided in Sections 19 and 21
hereof.

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

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

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

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

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

          (mm) "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.

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

          (oo) "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.

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

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

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

          (ss) "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.

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          (tt) "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.

          (uu) 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 in accordance with the terms and
conditions hereof, and the Rights Agent hereby accepts such appointment. The
Company may from time to time appoint such co-Rights Agents as it may deem
necessary or desirable, upon ten (10) days' prior written notice to the Rights
Agent. The Rights Agent shall have no duty to supervise, and shall in no event
be liable for, the acts or omissions of any such co-Rights Agent.

     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 such 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
and provided with all necessary information, 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. The
Company shall promptly notify the Rights Agent in writing upon the occurrence of
the Distribution Date and, if such notification is given orally, the Company
shall confirm the same in writing on or prior to the Business Day next
following. Until such notice is received by the Rights Agent, the Rights Agent
may presume conclusively for all purposes that the Distribution Date has not
occurred.

                                       -9-

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          (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 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 of the Company 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 AN AMENDED AND RESTATED RIGHTS AGREEMENT BETWEEN THE
     CORPORATION AND AMERICAN STOCK TRANSFER & TRUST COMPANY, AS THE RIGHTS
     AGENT, DATED AS OF AUGUST 31, 2002 (AS AMENDED, SUPPLEMENTED OR OTHERWISE
     MODIFIED FROM TIME TO TIME, THE "RIGHTS AGREEMENT"), THE TERMS OF WHICH ARE
     HEREBY INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH IS ON FILE AT
     THE CORPORATION's PRINCIPAL EXECUTIVE OFFICES. 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.
     THE CORPORATION WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A COPY OF THE
     RIGHTS AGREEMENT WITHOUT CHARGE UPON RECEIPT OF A WRITTEN REQUEST. 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

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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.

     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 which do not affect the
rights, duties or responsibilities of the Rights Agent and 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 a national market 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:

                                      -11-

<PAGE>

     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.

          (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
Agreement any such person was not such an officer.

          (b) Following the Distribution Date and receipt by the Rights Agent of
written notice of such Distribution Date and all necessary information, 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

                                      -12-

<PAGE>

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 office of
the Rights Agent designated for such purpose. 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 or
the Rights Agent 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 from a Rights holder of
a sum sufficient to cover any tax or charge that may be imposed in connection
with any transfer, split up, combination or exchange of Rights Certificates. The
Rights Agent shall have no duty or obligation under this Section 6 unless and
until the Rights Agent is satisfied that all such taxes and/or governmental
charges have been paid.

          (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 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 countersignature and 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) 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 and properly executed, to the Rights Agent at the
office of the Rights Agent designated for such purpose, 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 Ninety Dollars
($90.00), 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.

                                      -13-
<PAGE>

          (c) Upon receipt of a Rights Certificate representing exercisable
Rights, with the form of election to purchase duly and properly 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 tax or charge 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
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 tax or charge 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 necessary to comply
with this Agreement. The Company shall provide the Rights Agent with written
instructions prior to the distribution of such securities.

          (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

                                      -14-

<PAGE>

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) above, have
(i) properly completed and signed the certificate contained in the form of
election to purchase set forth on the reverse side of the Rights Certificate
surrendered for such exercise and (ii) provided such additional evidence of the
identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or
Associates thereof as the Company or the Rights Agent 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

                                      -15-

<PAGE>

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 in writing, that the exercisability of the Rights has been
temporarily suspended, as well as a public announcement and written 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 taxes and governmental charges which may be payable in
respect of the original

                                      -16-

<PAGE>

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 tax or charge 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 or charge shall have been
paid (any such tax or charge being payable by the holder of such Rights
Certificate at the time of surrender) or until it has been established to the
Company's or the Rights Agent's reasonable satisfaction that no such tax or
charge 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 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 Total Exercise Price with respect to which the
Rights have been exercised (and any applicable taxes or governmental charges)
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.

     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 that 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

                                      -17-

<PAGE>

"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 such 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 that 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 Total 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 quotient obtained by dividing (A) the
product obtained by multiplying (1) the Exercise Price in effect immediately
prior to the occurrence of the Triggering Event by (2) 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, by (B) fifty percent (50%) of the
Current Per Share Market Price for Common Shares on 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 and, in the event that the number of Common Shares
which are authorized by the Company's Certificate 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")

                                      -18-

<PAGE>

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 stockholder or regulatory approval for such issuance, (4) debt
securities of the Company, except to the extent that the Company has not
obtained any necessary stockholder 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, that 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 stockholder 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 stockholder 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 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, and notify the Rights Agent in writing, that the exercisability of the
Rights has been temporarily suspended, as well as a public announcement and
written notification to the Rights Agent 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

                                      -19-

<PAGE>

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 and conclusive for all purposes 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 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 and
which shall be conclusive for all purposes) 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

                                      -20-

<PAGE>

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 one percent (1%) of 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 one-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
Section 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
this Section 11, 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 such Right immediately
prior to this adjustment, by (y) the Exercise Price in effect immediately prior
to such adjustment of the Exercise Price, and (ii) dividing the product so
obtained by the Exercise Price in effect immediately after such adjustment of
the Exercise Price.

                                      -21-

<PAGE>

          (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 the 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, with prompt
written notice thereof to the Rights Agent. 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 (with prompt written notice
thereof to the Rights Agent) until the occurrence of such event the

                                      -22-

<PAGE>

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
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 stockholders.

          (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 that 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

                                      -23-

<PAGE>

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
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 and computations 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 or statement contained therein and shall have no duty or
liability with respect to 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) and 11(n)
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 of 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 fifty percent (50%) or more of
the assets or earning power of the Company and its

                                      -24-

<PAGE>

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,
nonassessable and freely tradable 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 an amount equal to fifty percent (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

                                      -25-

<PAGE>

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 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

                                      -26-

<PAGE>

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:

               (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

                                      -27-

<PAGE>

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 stockholders 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 (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
(x) one thousand multiplied by (y) the closing

                                      -28-

<PAGE>

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.

     Section 15. Rights of Action.

          (a) All rights of action in respect of this Agreement, excepting the
rights of action given to the Rights Agent under this Agreement, 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 by the Company of this Agreement and will be entitled to specific
performance of the obligations under, and injunctive relief against actual or
threatened violations by the Company of, the obligations of any Person subject
to this Agreement.

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

                                      -29-
<PAGE>

     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 office of the Rights Agent designated for such purposes, 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 Stockholder. 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 stockholder of the Company
or any right to vote for the election of directors or upon any matter submitted
to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in Section 25 hereof), or to receive dividends
or subscription rights, or otherwise, until the Right or Rights evidenced by
such Rights Certificate shall have been exercised in accordance with the
provisions hereof.

     Section 18. Concerning the Rights Agent.

          (a) The Company agrees to pay to the Rights Agent reasonable
compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, its reasonable expenses and counsel fees and
other disbursements incurred in the administration, preparation, delivery,
amendment and execution of this Agreement and the exercise and performance of
its duties hereunder. The Company also agrees to indemnify the Rights Agent for,
and to hold it harmless against, any loss, liability, damage, judgment, fine,
penalty, claim, demand, settlement, cost or expense (including, without
limitation, the reasonable fees and expenses of legal counsel), incurred without
gross negligence, bad faith or willful misconduct as determined by a final,
non-appealable order, judgment, decree or ruling of a court of competent
jurisdiction on the part of the

                                      -30-

<PAGE>

Rights Agent, for any action taken, suffered or omitted by the Rights Agent in
connection with the acceptance, administration, exercise and performance of its
duties under this Agreement, including, without limitation, the costs and
expenses of defending against any claim of liability in the premises. The
provisions of this Section 18 and Section 20 below shall survive the termination
of this Agreement and the exercise, termination and the expiration of the Rights
and the removal of the Rights Agent. The Company shall pay the costs and
expenses incurred in enforcing this right of indemnification. Anything to the
contrary notwithstanding, in no event shall the Rights Agent be liable for
special, punitive, indirect, consequential or incidental loss or damage of any
kind whatsoever (including but not limited to lost profits), even if the Rights
Agent has been advised of the likelihood of such loss or damage. Any liability
of the Rights Agent under this Agreement will be limited to the amount of fees
paid by the Company to the Rights Agent.

          (b) The Rights Agent shall be authorized and protected and shall incur
no liability for, or in respect of any action taken, suffered or omitted by it
in connection with, its acceptance and administration of this Agreement and the
exercise and performance of its duties hereunder, 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 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 Person into which the Rights Agent or any successor Rights
Agent may be merged or with which it may be consolidated, or any Person
resulting from any merger or consolidation to which the Rights Agent or any
successor Rights Agent shall be a party, or any Person succeeding to the
shareholder services 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 Person 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

                                      -31-

<PAGE>

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 only the
duties and obligations expressly imposed by this Agreement (and no implied
duties) upon the following terms and conditions, by all of which the Company and
the holders of Rights Certificates, by their acceptance thereof, shall be bound:

          (a) The Rights Agent may consult with legal counsel (who may be legal
counsel for the Company or an employee of the Rights Agent), and the advice or
opinion of such counsel shall be full and complete authorization and protection
to the Rights Agent and the Rights Agent shall incur no liability for or in
respect of any action taken, suffered or omitted by it and in accordance with
such 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, suffering or omitting any action hereunder, such fact
or matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and established by a
certificate signed by 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 and complete authorization and
protection to the Rights Agent and the Rights Agent shall incur no liability for
or in respect of any action taken, suffered or omitted 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 gross negligence, bad faith or willful misconduct
as determined by a final, non-appealable order, judgment, decree or ruling of a
court of competent jurisdiction.

          (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 liability or
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 or liable 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 or liable 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,

                                      -32-

<PAGE>

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, upon which the Rights Agent may rely); 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.

          (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, the President,
any Vice President, the Chief Financial Officer, the Secretary or any Assistant
Secretary of the Company, and to apply to such officers for advice or
instructions in connection with its duties, and such instructions shall be full
authorization and protection to the Rights Agent and it shall not be liable for
or in respect of any action taken, suffered or omitted by it in accordance with
instructions of any such officer or for any delay in acting while waiting for
those instructions. The Rights Agent shall be fully authorized and protected in
relying upon the most recent instructions received by any such officer. Any
application by the Rights Agent for written instructions from the Company may,
at the option of the Rights Agent, set forth in writing any action proposed to
be taken, suffered or omitted by the Rights Agent under this Agreement and the
date on and/or after which such action shall be taken or suffered or such
omission shall be effective. The Rights Agent shall not be liable for any action
taken or suffered 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, suffered or omitted.

          (h) The Rights Agent and any stockholder, director, Affiliate, 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
the Rights Agent under this Agreement. Nothing herein shall preclude the Rights
Agent or any such stockholder, Affiliate, director, officer or employee from
acting in any other capacity for the Company or for any other Person.

                                      -33-

<PAGE>

          (i) The Rights Agent may execute and exercise any of the rights or
powers hereby vested in it or perform any duty hereunder either itself (through
its directors, officers and employees) 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 or any other Person resulting from any such act, default, neglect
or misconduct, absent gross negligence, bad faith or willful misconduct, as
determined by a final, non-appealable order, judgment, decree or ruling of a
court of competent jurisdiction, 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
it believes that repayment of such funds or adequate indemnification against
such risk or liability is not reasonably assured to it.

          (k) If, with respect to any Rights Certificate surrendered to the
Rights Agent for exercise or transfer, the certificate attached to the form of
assignment or form of election to purchase, as the case may be, has 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.

     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 known to the Rights
Agent 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 (i) a
Person 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 stock transfer powers and is subject to supervision or
examination by federal or state authority and which has at the time of its
appointment as Rights Agent a combined capital and surplus of at least $25
million or (ii) an Affiliate of a Person described in (i). After appointment,
the successor Rights Agent shall be vested

                                      -34-

<PAGE>

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 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 of the Company, at any time prior to the Close of Business on the
earlier of (i) the tenth day following the Shares Acquisition Date (or such
later date as may be determined by action of the Company's Board of Directors
and publicly announced by the Company) and (ii) the Final Expiration Date,
redeem all but not less than all the then outstanding Rights at a redemption
price of $0.001 per Right, appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring after the date hereof (such
redemption price being 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

                                      -35-

<PAGE>

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 of
the Company in its sole discretion may establish. The date on which the Board of
Directors of the Company 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 (with a
copy of the notice given to the Rights Agent); 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 of the Company 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 of the Company, at any time after the occurrence of a Triggering
Event, exchange all or part of the then outstanding and exercisable Rights
(which shall not include Rights that have become null and 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 Acquiring Person, together with all Affiliates
and Associates of such Person, becomes the Beneficial Owner of 50% or more of
the Common Shares then outstanding.

          (b) Immediately upon the action of the Board of Directors of the
Company ordering the exchange of any Rights pursuant to subsection 24(a) of this
Section 24 and without any further action and without any notice, the right to
exercise such Rights shall terminate and the only right thereafter of the
holders 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 with prompt written
notice thereof to the

                                      -36-

<PAGE>

Rights Agent; 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 null and 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 the Board of Directors of the Company, 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 of
the Company, 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 of the Company 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 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, with prompt written
notice thereof to the Rights Agent.

          (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).

                                      -37-

<PAGE>

          (e) The Company may, at its option, by majority vote of the Board of
Directors of the Company, 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 of the Company 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 of the Company in accordance with
subsection 24(e) above. The Company shall give public notice of any such
exchange and shall provide the Rights Agent with a copy of such notice;
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, with prompt written notice thereof to 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 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
the Rights Agent and 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 the Rights Agent and 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:

               Gartner, Inc.
               56 Top Gallant Road
               Stamford, Connecticut 06904
               Attn: Chief Executive Officer

                                      -38-

<PAGE>

               with a copy to:

               Gartner, Inc.
               56 Top Gallant Road
               Stamford, Connecticut 06904
               Attn: General Counsel

               and

               Wilson Sonsini Goodrich & Rosati
               Professional Corporation
               650 Page Mill Road
               Palo Alto, California 94304-1050
               Attention: Larry Sonsini, Esq.

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

               American Stock Transfer & Trust Company
               56 Maiden Lane
               New York, New York 10038
               Attention: Corporate Trust Department

               with a copy to:

               American Stock Transfer & Trust Company
               56 Maiden Lane
               New York, New York 10038
               Attention: General Counsel

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

     Section 27. Supplements and Amendments. Prior to the occurrence of a
Distribution Date and subject to the penultimate sentence of this Section 27,
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 and subject to the penultimate sentence of this Section 27,
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

                                      -39-

<PAGE>

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) 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 Rights Agent or 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 and, if requested by the Rights Agent, an opinion of counsel, that
states that the proposed supplement or amendment is in compliance with the terms
of this Section 27 and such supplement or amendment does not affect the Rights
Agent's own rights, duties, immunities, liabilities or obligations, 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
or any other class of capital stock 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 of Directors of the Company, 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
of Directors of the Company 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. The Rights Agent is entitled always to assume the
Company's Board of Directors acted in good faith and shall be fully protected
and incur no liability in reliance thereon.

     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,
successors to such parties and the registered holders of the Rights Certificates
(and, prior to the Distribution Date, the Common Shares) any legal or equitable
right, remedy or claim under this Agreement; but this Agreement shall

                                      -40-

<PAGE>

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 Delaware and for all purposes shall be governed by and
construed in accordance with the laws of such State applicable to contracts to
be made and performed entirely within such State; provided, however, that all
provisions regarding the rights, duties and obligations of the Rights Agent
shall be governed by and construed in accordance with the laws of the State of
New York applicable to contracts made and to be performed entirely within such
State.

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

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

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

"COMPANY"                               GARTNER, INC.

                                        By: /s/ Christopher Lafond
                                            ------------------------------------
                                        Name: Christopher Lafond
                                        Title: Executive Vice President and
                                               Chief Financial Officer

                                      -41-

<PAGE>

"RIGHTS AGENT"                          AMERICAN STOCK TRANSFER & TRUST COMPANY

                                        By: /s/ Herbert Lemmer
                                            ------------------------------------
                                        Name: Herbert Lemmer
                                        Title: Vice President

                                      -42-
<PAGE>

                                    EXHIBIT A

  CERTIFICATE OF DESIGNATION OF RIGHTS, PREFERENCES AND PRIVILEGES OF SERIES A
              JUNIOR PARTICIPATING PREFERRED STOCK OF GARTNER, INC.

     The undersigned, Eugene A. Hall and Lewis G. Schwartz, do hereby certify:

     1. That they are the duly elected and acting Chief Executive Officer, and
General Counsel and Corporate Secretary, of Gartner, Inc., a Delaware
corporation (the "CORPORATION").

     2. That pursuant to the authority conferred upon the Board of Directors by
the Restated Certificate of Incorporation of the said Corporation, the said
Board of Directors of the Corporation on September 7, 2006 adopted the following
resolutions creating a series of Two Hundred and Fifty Thousand (250,000) shares
of Preferred Stock designated as Series A Junior Participating Preferred Stock:

     "RESOLVED, that pursuant to the authority vested in the Board of Directors
of the Corporation by the Restated Certificate of Incorporation, the Board of
Directors does hereby provide for the issue of Series A Junior Participating
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 (all terms used herein which are defined in the
Corporation's Restated Certificate of Incorporation shall be deemed to have the
meanings provided herein):

     Section 1. Designation and Amount. The shares of such series shall be
designated as "SERIES A JUNIOR PARTICIPATING PREFERRED STOCK" (the "Series A
Preferred Stock"). The Series A Preferred Stock shall have a par value of $0.01
per share, and the number of shares constituting such series shall be Two
Hundred and Fifty Thousand (250,000).

     Section 2. Proportional Adjustment. In the event the Corporation shall at
any time after the issuance of any share or shares of Series A Preferred Stock
(i) declare any dividend on Common Stock of the Corporation ("COMMON STOCK")
payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock
or (iii) combine the outstanding Common Stock into a smaller number of shares,
then in each such case the Corporation shall simultaneously effect a
proportional adjustment to the number of outstanding shares of Series A
Preferred Stock.

     Section 3. Dividends and Distributions.

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

<PAGE>

each year (each such date being referred to herein as a "QUARTERLY DIVIDEND
PAYMENT DATE"), commencing on the first Quarterly Dividend Payment Date after
the first issuance of a share or fraction of a share of Series A Preferred
Stock, in an amount per share (rounded to the nearest cent) equal to 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 Preferred Stock.

          (b) The Corporation shall declare a dividend or distribution on the
Series A 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).

          (c) Dividends shall begin to accrue on outstanding shares of Series A
Preferred Stock from the Quarterly Dividend Payment Date next preceding the date
of issue of such shares of Series A 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 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 Preferred Stock in an amount less than the total amount of
such dividends at the time accrued and payable on such shares shall be allocated
pro rata on a share-by-share basis among all such shares at the time
outstanding. The Board of Directors may fix a record date for the determination
of holders of shares of Series A Preferred Stock entitled to receive payment of
a dividend or distribution declared thereon, which record date shall be no more
than 30 days prior to the date fixed for the payment thereof.

     Section 4. Voting Rights. The holders of shares of Series A Preferred Stock
shall have the following voting rights:

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

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

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

                                      -2-
<PAGE>

     Section 5. Certain Restrictions.

          (a) The Corporation shall not declare any dividend on, make any
distribution on, or redeem or purchase or otherwise acquire for consideration
any shares of Common Stock after the first issuance of a share or fraction of a
share of Series A Preferred Stock unless concurrently therewith it shall declare
a dividend on the Series A Preferred Stock as required by Section 3 hereof.

          (b) Whenever quarterly dividends or other dividends or distributions
payable on the Series A Preferred Stock as provided in Section 3 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions, whether
or not declared, on shares of Series A Preferred Stock outstanding shall have
been paid in full, the Corporation shall not:

               (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 Preferred Stock;

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

               (iii) redeem or purchase or otherwise acquire for consideration
shares of any stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series A 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 Preferred Stock;

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

          (c) 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 5,
purchase or otherwise acquire such shares at such time and in such manner.

     Section 6. Reacquired Shares. Any shares of Series A 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

                                       -3-

<PAGE>

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 Restated Certificate of Incorporation, as then
amended.

     Section 7. Liquidation, Dissolution or Winding Up. Upon any liquidation,
dissolution or winding up of the Corporation, the holders of shares of Series A
Preferred Stock shall be entitled to receive an aggregate amount per share equal
to 1,000 times the aggregate amount to be distributed per share to holders of
shares of Common Stock plus an amount equal to any accrued and unpaid dividends
on such shares of Series A Preferred Stock.

     Section 8. 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 Preferred Stock shall at the same time be similarly exchanged or
changed in an amount per share equal to 1,000 times the aggregate amount of
stock, securities, cash and/or any other property (payable in kind), as the case
may be, into which or for which each share of Common Stock is changed or
exchanged.

     Section 9. No Redemption. The shares of Series A Preferred Stock shall not
be redeemable.

     Section 10. Ranking. The Series A 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 11. Amendment. The Restated Certificate 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
Preferred Stock so as to affect them adversely without the affirmative vote of
the holders of the outstanding shares of Series A Preferred Stock, voting
separately as a class.

     Section 12. Fractional Shares. Series A 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 Preferred Stock.

                                       -4-

<PAGE>

     RESOLVED FURTHER, that the Chief Executive Officer or any Vice President
and the Secretary or any Assistant Secretary of the Corporation be, and they
hereby are, authorized and directed to prepare and file a Certificate of
Designation of Rights, Preferences and Privileges in accordance with the
foregoing resolution and the provisions of Delaware law and to take such actions
as they may deem necessary or appropriate to carry out the intent of the
foregoing resolution."

     We further declare under penalty of perjury that the matters set forth in
the foregoing Certificate of Designation are true and correct of our own
knowledge.

     Executed at Stamford, Connecticut on November __, 2006.

                                        ----------------------------------------
                                        Chief Executive Officer

                                        ----------------------------------------
                                        General Counsel and Secretary

                                       -5-
<PAGE>

                                    EXHIBIT B

                           FORM OF RIGHTS CERTIFICATE

Certificate No. R-                                              _________ Rights

     NOT EXERCISABLE AFTER THE EARLIER OF (i) FEBRUARY 25, 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 $0.001 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.]*

                               RIGHTS CERTIFICATE

                                  GARTNER, INC.

     This certifies that ______________________________, or registered assigns,
is the registered owner of the number of Rights set forth above, each of which
entitles the owner thereof, subject to the terms, provisions and conditions of
the Second Amended and Restated Rights Agreement dated as of November 6, 2006,
(the "RIGHTS AGREEMENT"), between Gartner, Inc., a Delaware corporation (f/k/a
Gartner Group, Inc.) (the "COMPANY"), and American Stock Transfer & Trust
Company, a New York banking corporation, as successor Rights Agent of Mellon
Investor Services LLC (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., Connecticut time, on

----------
*    The portion of the legend in bracket shall be inserted only if applicable
     and shall replace the preceding sentence.
<PAGE>

February 25, 2010 at the office of the Rights Agent designated for such purpose,
or at the office of its successor as Rights Agent, one one-thousandth (1/1,000)
of a fully paid and non-assessable share of Series A Junior Participating
Preferred Stock, par value $0.01 per share (the "PREFERRED SHARES"), of the
Company, at an Exercise Price of Ninety Dollars ($90.00) 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 the
date hereof 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.

     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.

     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 $0.001 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 office of the Rights Agent designated for such purpose, 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 stockholder of the Company or any right to vote for the
election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any

                                       -2-

<PAGE>

corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in the Rights Agreement), or to receive
dividends or subscription rights, or otherwise, until the Right or Rights
evidenced by this Rights Certificate shall have been exercised as provided in
the Rights Agreement.

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

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

ATTEST:                                 GARTNER, INC.

                                        By:
-------------------------------------       ------------------------------------
Secretary
                                        Its:
                                             -----------------------------------

Countersigned:

AMERICAN STOCK TRANSFER & TRUST
COMPANY

as Rights Agent

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

                                       -3-

<PAGE>

                   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: _______________, ____

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

Signature Guaranteed:
                      -----------------

     Signatures must be guaranteed by an eligible guarantor institution (a bank,
stockbroker, savings and loan association or credit union with membership in an
approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the
Securities Exchange Act of 1934, as amended. Guarantees by a notary public are
not acceptable.

<PAGE>

                                   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: _______________, ____

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

Signature Guaranteed:
                      -----------------

     Signatures must be guaranteed by an eligible guarantor institution (a bank,
stockbroker, savings and loan association or credit union with membership in an
approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the
Securities Exchange Act of 1934, as amended. Guarantees by a notary public are
not acceptable.

<PAGE>

             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: _______________, ____

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

Signature Guaranteed:
                      -----------------

     Signatures must be guaranteed by an eligible guarantor institution (a bank,
stockbroker, savings and loan association or credit union with membership in an
approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the
Securities Exchange Act of 1934, as amended. Guarantees by a notary public are
not acceptable.

<PAGE>

                                   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: _______________, ____

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

Signature Guaranteed:
                      -----------------

     Signatures must be guaranteed by an eligible guarantor institution (a bank,
stockbroker, savings and loan association or credit union with membership in an
approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the
Securities Exchange Act of 1934, as amended. Guarantees by a notary public are
not acceptable.

<PAGE>

             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.
<PAGE>

                                    EXHIBIT C

                                   RIGHTS PLAN

                                  GARTNER, INC.

                                Summary of Rights

<TABLE>
<S>                              <C>
Distribution and Transfer        The Board of Directors of Gartner, Inc. (the
of Rights, Rights                "Company") has declared a dividend of one Right
Certificate:                     for each share of Common Stock (the "Rights")
                                 outstanding. Prior to the Distribution Date
                                 referred to below, the Rights will be evidenced
                                 by and trade with the certificates for the
                                 Common Stock. (You will not receive a new
                                 certificate evidencing the Rights). After the
                                 Distribution Date, the Company will mail Rights
                                 certificates to the Company's stockholders and
                                 the Rights will become transferable apart from
                                 the Common Stock.

Distribution Date:               Stockholders who own in excess of 20% of the
                                 Common Stock outstanding on February 10, 2000
                                 will not cause the Rights to become exercisable
                                 based on their current ownership.

Preferred Stock Purchasable      After the Distribution Date, each Right will
Upon Exercise of Rights:         entitle the holder to purchase for $90, one
                                 one-thousandth of a share of the Company's
                                 Series A Preferred Stock with economic terms
                                 similar to that of one share of the Company's
                                 Common Stock.

Flip-In:                         If an "Acquiring Person" (as defined in the
                                 Rights Agreement) obtains 20% or more of the
                                 Common Stock outstanding, 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 corresponding shares of the Company's
                                 Common Stock having a then current market value
                                 of twice the Exercise Price. For example, if
                                 the Common Stock is trading at a price of
                                 $30.00 per share, the Right will enable the
                                 holder to purchase $180.00 of stock (or 6
                                 shares) for the $90.00 exercise price.
                                 Alternatively, the board of directors may elect
                                 to exchange Rights held by persons other than
                                 the proposed acquirer for Common Stock.

Flip-Over:                       If, after an Acquiring Person obtains 20% or
                                 more of the Common Stock outstanding, (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
</TABLE>
<PAGE>

<TABLE>
<S>                              <C>
                                 Company's assets or earning power, 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 Common Stock of
                                 the Person engaging in the transaction having a
                                 then current market value of twice the Exercise
                                 Price. For example, if the stock is trading at
                                 a price of $30.00 per share, the Right will
                                 enable the holder to purchase $180.00 of stock
                                 (or 6 shares) for the $90.00 exercise price.
                                 Alternatively, the board of directors may elect
                                 to exchange Rights held by persons other than
                                 the proposed acquirer for Common Stock.

Exchange Provision:              At any time after the date an Acquiring Person
                                 obtains 20% or more of the Common Stock
                                 outstanding and prior to the acquisition by the
                                 Acquiring Person of 50% of the outstanding
                                 Common Stock, the Board of Directors of the
                                 Company 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:        Rights will be redeemable at the Company's
                                 option for $0.001 per Right at any time on or
                                 prior to the tenth day (or such later date as
                                 may be determined by the Board of Directors)
                                 after public announcement that a Person has
                                 acquired beneficial ownership of 20% of the
                                 Common Stock outstanding.

Expiration of the Rights:        The Rights expire on the earliest of (a)
                                 February 25, 2010, (b) exchange or redemption
                                 of the Rights as described above.

Amendment of Terms of Rights:    The terms of the Rights and the Rights
                                 Agreement may be 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 Provisions:        Rights will have the benefit of certain
                                 customary 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,
                                 stockholders may recognize taxable income.
</TABLE>

                                       -2-

<PAGE>

     The foregoing is a summary of certain principal terms of the Stockholder
Rights Plan only and is qualified in its entirety by reference to the detailed
terms of the Second Amended and Restated Rights Agreement dated as of November
6, 2006, between the Company and American Stock Transfer & Trust Company (as
successor Rights Agent of Mellon Investor Services LLC).

                                       -3-exv10w1

 

Exhibit 10.1

Portions of this Exhibit were omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for confidential treatment. Such portions are marked by a series
of asterisks.

EXECUTION COPY

UNITED STATES CONSUMER FINANCING SERVICES AGREEMENT

Parties

     This United States Consumer Financing Services Agreement (this “Agreement”) is made and
entered into as of November 30, 2006 by and between General Motors Corporation, a Delaware
corporation (“GM”), and GMAC LLC, a Delaware limited liability company (“GMAC”).

Recitals

     A. GM, directly and through its Subsidiaries, as defined in this Agreement, is a worldwide
manufacturer, distributor, marketer, and seller of motor vehicles, including used vehicles, and
related goods and services (“GM Products”), offered for sale to retail Consumers through a network
of dealers authorized by GM and its Subsidiaries (“GM Dealers”), including certain dealers that are
wholly- or partially-owned by GM or its Subsidiaries.

     B. GMAC is a worldwide diversified financial services company that directly, and through its
Subsidiaries, provides automotive and non-automotive finance and lease, insurance, banking,
mortgage lending, and other services to a variety of affiliated and unaffiliated Consumers (“GMAC
Products”).

     C. GM and GMAC provide significant services and resources to each other. The transactions,
relationships, interactions, and dealings between GM and GMAC (“Dealings”), contribute
significantly to the success of GM and GMAC, generally providing efficiencies and enhanced results
for each of them, including business opportunities and referrals, data and resource sharing,
economies of scale, leveraging staff expertise, and administrative conveniences. These
efficiencies flow from, among other things, four aspects of their relationship: (1) the formal
ownership structure that existed historically, resulting in tax, legal, and administrative
efficiencies; (2) propinquity—their history, familiarity, proximity, and common corporate culture
and industry experience — allowing informal and simplified interactions including infrastructure
sharing; (3) sound business practices, including economies of scale and leveraging of resources;
and (4) their “shared”/“common” customers (i.e., GM Dealers and purchasers of GM Products).
Combined, these efficiencies result in highly valuable and significant organizational, operational,
business, and financial synergies (“Synergies”). Although specific aspects of the Dealings may
benefit one party more than the other from time to time, the Synergies produce net positive effects
for GM and GMAC jointly and individually.

 

 

     D. As a part of its business, GMAC supports the sale of GM Products by purchasing retail
installment sale contracts (“Retail Financing”) and lease contracts and, in lease transactions,
purchasing the underlying leased vehicle (“Lease Acquisition”), in each case at market and below
market rates from GM Dealers (collectively “Consumer Financing”).

     E. GM and GMAC desire to formally document certain of the Dealings related to Consumer
Financing in the United States and to establish a framework for negotiating, documenting,
administering, and enforcing future Dealings related to Consumer Financing in the United States.

Agreement

     In consideration of the premises and the mutual covenants and agreements and the
representations and warranties contained in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, GM and GMAC agree as
follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions. The words in this Agreement have the meanings usually and
customarily ascribed to them in commercial contracts, except that words that are defined below have
the respective meanings ascribed to such words below or elsewhere in this Agreement.

     “Application” means a credit application completed by a Consumer in connection with the
purchase or lease of a new GM vehicle that a GM Dealer submits for GMAC’s assessment and credit
decision as to whether GMAC would purchase a retail installment sale or lease contract that the GM
Dealer enters into with that Consumer, if the Dealer were to offer it for sale to GMAC.

     ***

     “Business Day(s)” means a day other than Saturday or Sunday on which commercial banks are open
for business in New York City.

     ***

     “Confidential Information” means any information (including data developed from any such
information) in any format that meets all of the following criteria: (i) GM, GMAC, or their
respective Subsidiaries or Representatives (the “receiving party”) obtains the information from the
other party (the “disclosing party”) or the disclosing party’s Subsidiaries or Representatives
before or after the execution of this Agreement; (ii) the information relates to the business or
financial activities of the disclosing party or its Subsidiaries; and (iii) the information is
available to the receiving party solely to facilitate the parties’ performance of this Agreement or
otherwise as a result of the relationship between GM and GMAC, and includes information relating to
customers and dealerships, pricing, methods, operations, processes, trade secrets, credit programs,
financial data, business and financial relationships, technical data, statistics, technical

2

 

specifications, documentation, research, development or related information, computer systems,
employees, and any results or compilations of the foregoing. “Confidential Information” does not
include any information that: (i) is or becomes publicly available by any means other than a
breach of this Agreement; (ii) was known by the receiving party before its receipt from disclosing
party; (iii) is independently developed by the receiving party without using information from the
disclosing party.

     “Confidential Personal Information” means all information about Consumers that are natural
Persons, including names, addresses, telephone numbers, account numbers and lists thereof, and
demographic, financial and transaction information for, such Consumers.

     “Consumer” means (i) an individual who obtains GM Products and GMAC Products at retail
primarily for personal, family, or household purposes, or (ii) a Person who obtains GM Products or
GMAC Products at retail for business, commercial, or similar purposes.

     “Coordinating Committee” has the meaning ascribed in Section 2.9.

     “current” means at the time this Agreement was executed.

     “Credit Tiers” means categories of credit risk determined through GMAC’s proprietary risk
scoring system.

     “Governmental Authority” means any supranational, international, national, federal, state or
local court, government, department, commission, board, bureau, agency, official or other
regulatory, administrative or governmental authority.

     “Including”, “includes” and derivatives thereof mean including or includes, as the case may
be, without limitation.

     “Person” means any individual, corporation, partnership, joint venture, limited liability
company, limited liability partnership, association, joint stock company, trust, unincorporated
organization, or other organization, whether or not a legal entity, and any Government Authority.

     “Personnel” means employees, agents, vendors, sub-vendors, licensees, franchisees and
consultants of GM and its Subsidiaries.

     ***

     “Representatives” means directors, officers, and employees of a party or its Subsidiaries and
their respective agents, representatives, auditors, and professional advisors.

     “Subsidiary” means, with respect to any Person, any other Person of which a majority of the
voting interests is owned, directly or indirectly, by such Person, except that in the case of GM,
Subsidiary excludes GMAC and its Subsidiaries and in the case of GMAC, Subsidiary excludes Nuvell
Credit Company LLC (“Nuvell”).

     “Support Rate” means the interest rate GMAC offers to GM when GM wants to sponsor special
financing rates to Consumers.

     ***

3

 

ARTICLE II

FRAMEWORK

     Section 2.1 Contractual Framework. This Agreement memorializes the Dealings related
to Consumer Financing and establishes the contractual framework for negotiating, documenting,
administering, and enforcing future Dealings in the United States related to Consumer Financing.
GMAC will provide Consumer Financing services to GM Consumers in accordance with the terms of this
Agreement. Such terms are intended to preserve the customer loyalty and dealer support benefits
that historically accrued to GM as a manufacturer with an exclusive financing arm while at the same
time assure that GMAC receives a competitive level of return. GMAC recognizes GM’s desire to grow
its automotive business and will continue to support GM in that effort to the extent that it is in
keeping with GMAC’s business interests.

     Section 2.2 Financing to Other Automobile Manufacturers. Nothing in this Agreement
precludes GMAC from providing or continuing to provide any financial services to vehicle
manufacturers other than GM or dealers other than GM Dealers, or from providing or continuing to
provide mortgage, insurance, banking, or other non-automotive financial services in the ordinary
course of business.

     Section 2.3 Documentation. The terms and conditions related to individual Dealings in
the United States involving Consumer Financing will be arm’s length and reasonably documented using
written forms, contracts, or instruments (“Implementing Agreements”). The nature and extent of
such Dealings will be publicly disclosed to the extent required by law and as otherwise provided by
this Agreement.

     Section 2.4 Process Integrity. The parties will develop processes and promulgate
policies to implement this Agreement and to take corrective action for failures to adhere to them.
The Dealings will be subject to regular compliance verification by the parties and their outside
auditors (“Compliance Audits”).

     Section 2.5 Compliance. GM and GMAC will comply, in all material respects, with all
applicable laws and legal requirements in connection with the services contemplated by this
Agreement, including obtaining and maintaining all required licenses, authorizations, and permits.

     Section 2.6 Cooperation. GM and GMAC will reasonably cooperate with and assist each
other in carrying out the other’s obligations under this Agreement and will execute and deliver all
documents and instruments necessary and appropriate to do so.

     Section 2.7 Information and Reports. GM and GMAC will prepare and deliver to each
other on a regular, timely basis, such information and reports as the other reasonably requests or
requires from time to time regarding any and all aspects of the Dealings under this Agreement.

4

 

     Section 2.8 Scope; Subsidiaries. This Agreement applies to Dealings related to
Consumer Financing in the United States only, including Puerto Rico. The respective Subsidiaries
of GM and GMAC are not parties to this Agreement and may not be legally bound by this Agreement
unless and until they agree to be so bound. GM and GMAC will use their reasonable best efforts to
cause their Subsidiaries that have Dealings related to Consumer Financing in the United States to
agree to be bound by this Agreement by executing the opt in letter in the form of Exhibit A
attached to this Agreement. If the Subsidiaries agree to be bound by this Agreement, the terms
party, parties, GM, and GMAC will be interpreted to include the relevant GM Subsidiary and GMAC
Subsidiary, as appropriate. Until such time, both GM and GMAC will use their best efforts to cause
their Subsidiaries engaged in Dealings related to Consumer Financing to honor and perform the
obligations set forth in this Agreement as if they were parties to this Agreement. If any
Subsidiary ceases to be a Subsidiary of GM or GMAC, the other party may terminate all rights under
this Section with respect to such Subsidiary and the former Subsidiary’s rights and obligations
under any opt in letter effective upon 180 days notice. Any Implementing Agreement to which such
entity is a party continues in accordance with its terms.

     Section 2.9 Coordinating Committee.

     (a) Responsibilities. GM and GMAC hereby create a committee to be responsible for
considerations around joint policies and programs, and for coordination of joint activities between
the parties in the United States (“Coordinating Committee”). Also, any disputes under this
Agreement that cannot be resolved between the parties at the working level will in the first
instance be referred to this Committee. The Committee will, in normal course, receive such
information from GM and GMAC as is necessary and appropriate to facilitate their work together.
The Members of the Coordinating Committee may share such information as appropriate within their
respective organizations.

     (b) Composition. An approximately equal number of Coordinating Committee Members will
be designated by each of GM and GMAC, with the total membership being between six and 10 members,
as agreed from time to time by the Committee. Additionally, each of GM and GMAC may designate up
to five ad hoc “ex officio” members. Guests with applicable expertise may attend meetings by
invitation of the Committee. Unless agreed otherwise by the Committee, Members and ex officio
members will be employees of GM or GMAC with a reasonable level of decision-making authority in
order to facilitate prompt and efficient resolution of matters before the Committee. Exhibit D
sets forth initial Members, Lead Members, and other designations by GM and GMAC to the Committee.

     (c) Principal Contacts. Each of GM and GMAC will designate one of their Coordinating
Committee Members to be the Lead Member who will be the principal point of contact and coordination
outside of formal meetings of the Committee.

     (d) Chair. One Member will be appointed Chair of the Committee for purposes of
coordinating meeting discussions. The position of Chair will rotate between Members designated by
GM and those designated by GMAC each April 1 unless otherwise agreed by the Committee.

5

 

     (e) Secretary. There will be a Secretary to the Committee who may be a Member, ex
officio member or other employee of GM or GMAC as agreed by the Committee. The Secretary will work
with the Lead Members to prepare an agenda for each meeting, and will prepare minutes of meetings
which will be circulated to the Lead Members for approval in advance of being finalized and
distributed to the Coordinating Committee and ad hoc members.

     (f) Meetings. The Committee will generally meet in formal session on a monthly basis;
an annual calendar of meetings will be established by them and kept by the Secretary. Special
meetings may be called as appropriate by the Lead Members. Attendance at any meeting may be by
phone.

     (g) Voting. Committee decisions will be by consensus; i.e., GM Members collectively
have one “vote” and GMAC Members collectively have one “vote”, with consensus required for action
to be taken. At least two Members from each of GM and GMAC will be necessary for a quorum at any
meeting, whether regularly scheduled or special, and minutes will be made to record all decisions.
If the person then designated as Chair or Secretary is not present at any meeting, replacement(s)
may be established for purposes of that meeting.

ARTICLE III

CONSUMER FINANCING

     Section 3.1 Consideration of Consumer Financing Contracts. GMAC will provide full and
fair consideration of Applications and used vehicle applications received from GM Dealers, applying
credit risk underwriting standards that are consistent with current and historical practices, and
purchase such contracts, if appropriate in GMAC’s sole discretion:

     (a) In accordance with its usual and customary standards for creditworthiness; and

     (b) Spanning a broad spectrum of prime and non-prime Consumers, consistent with current and
historical practice.

     Notwithstanding anything in this Agreement to the contrary, GMAC’s decision whether to provide
Consumer Financing to any Consumer in any case will be made in its sole and absolute discretion and
pursuant to its business judgment, without influence by GM.

     Section 3.2 Exclusivity and Other Terms for GM Special Programs. Subject to Section
3.5 below, whenever GM offers vehicle financing and leasing incentives to Consumers, for example,
“interest free” periods, finance charge subsidies, capitalized cost reductions, waivers of security
deposit, etc. (individually and collectively “GM Special Programs”), it will do so exclusively
through Nuvell (subject to the terms of the Nuvell Consumer Financing Services Agreement dated of
even date herewith) or through GMAC; however, with regard to Consumer Financing of Saturn
Consumers, Saturn may maintain its current practice of offering finance charge subsidies on retail
installment sale contracts and lease subsidies and balloon retail installment sale contract
subsidies through both GMAC and JP Morgan Chase Bank (“Chase”) so long as the retail installment
sale program parameters offered to Chase are no better than those offered to GMAC and the lease
subsidies and balloon retail installment sale contract subsidies offered through Chase result in no
more favorable (to the Consumer) Consumer monthly

6

 

payments and down payments than those offered through GMAC. Nothing in this Agreement
precludes either GMAC or Chase from offering additional incentives to Consumers of Saturn in
addition to what is offered by Saturn.

     (a) GM will set the terms and conditions and eligibility of all GM Special Programs, including
program dates, GM Products, applicable Consumer Credit Tiers and geography.

     (b) GM will inform GMAC in a manner consistent with current and historical practice, including
by e-mail or other electronic means, of all GM Special Programs at least 5 Business Days before the
scheduled start date (except for lease pull ahead which will require 3 Business Days notice and
except for routine special rate and special residual support changes which can be the same day).
If GM does not provide at least 5 Business Days’ notice (3 Business Days for lease pull ahead) of a
GM Special Program, GMAC will use best efforts to implement such GM Special Program to the extent
reasonably and practically possible under the circumstances. If GMAC cannot implement the GM
Special Program concept as proposed by GM, GM and GMAC will cooperate to find a workable solution,
if any.

     (c) So long as the exclusivity provided for in this Agreement remains in effect in the United
States, GMAC will pay to GM, annually in arrears, within 30 days of invoice date following the
annual anniversary of the Effective Date of this Agreement (“Annual Anniversary Date”), $75
million. In the event the exclusivity provided for in this Agreement is terminated, whether in
whole or in part, during any 12 month period following an Annual Anniversary Date, the annual $75
million payment will be adjusted downward on a prorated basis in proportion to the volume of GM
vehicle sales in the geographic area where exclusivity was removed in proportion to GM’s total U.S.
vehicle sales for the portion of the year during which exclusivity was removed. (For purposes of
this paragraph, vehicle sales will be determined based on the immediately prior calendar year
experience.) For example, if exclusivity for the U.S. were terminated in whole three months
following an Annual Anniversary Date, GMAC would pay 25% of $75 million. Similarly, if GM removes
exclusivity in a particular geographic area ***, the annual $75 million payment will be adjusted
downward on a prorated basis taking into account the number of vehicle sales for the applicable
area during the time exclusivity was removed, as compared to annual sales. For example, if GM
removes exclusivity on 50% of the portfolio (calculated as the number of GM sales in the area
losing exclusivity over total GM sales) three months following an Annual Anniversary Date, GMAC
would pay ($75 million/12*3) + ($75 million/12*9*0.5). For any period to which such a reduction of
the $75 million is applicable, the payment will be due to GM from GMAC within 30 days following
GM’s invoice to GMAC with appropriate detail on relevant vehicle sales.

     (d) GMAC may, at its election and in its sole discretion, prepay to GM at any time the present
value of the $75 million annual payments otherwise due for the then remaining Term of this
Agreement. Any such prepayment will be discounted at the rate of the 5-year U.S. Treasury Note as
then available on screen GT5 <GOVT> on Bloomberg (or other similar rate from a commercially
reasonable source if Bloomberg is unavailable). If this Agreement is, subsequent to any such
prepayment, renewed beyond the Term in which the prepayment occurs, GMAC will continue to pay the
$75 million annual payments in arrears, subject to its election to prepay. For example, if GMAC
prepays after the first Annual Anniversary Date for the initial Term of this Agreement, it would
prepay the then present value of the $75 million annual

7

 

payment through year 10. If no notice of termination is provided in year 7 and the Term of
this Agreement renews for another year, GMAC would pay the $75 million at the end of year 11 and
continue to pay this amount at the end of each subsequent renewal Term so long as this Agreement
remains in effect, subject to GMAC’s election to again prepay at any time for the then remaining
Term. In the event of termination of this Agreement, in whole or in part, during any period to
which a prepayment applies, GM will have no obligation to refund any part of the prepayment.

     Section 3.3 GMAC Capital Commitment *** for Consumer Financing Services.

     (a) *** Targets. Recognizing the role of GMAC as the exclusive Consumer Financing
source in the United States through which GM provides GM Special Programs to support the marketing
and sale of GM Products and taking into account the Synergies, GMAC:

     (i) will continue to engage in Consumer Financing in the United States by purchasing
contracts that span a broad spectrum of prime and non-prime Consumer credits, consistent
with current and historical practice.

     (ii) will, in any event, depending on the average *** of the Consumer under the
Consumer Financing contracts *** in a particular quarter, and on a three month
trailing average basis:

     ***

     (iii) will provide assistance to GM Dealers to finalize Consumer contracts related to
Consumer Financing consistent with current and historical practice; and

     (iv) will not take any measures that are inconsistent with market practice that reduce
the likelihood of Consumers seeking to buy or lease vehicles through GMAC Consumer Financing
(for example, onerous application fees, etc.).

     (b) Contract Pool. The pool of *** Applications and Consumer Financing contracts ***
will be consistent with the pool of *** Applications and Consumer Financing contracts currently
***, by GMAC and GMAC Bank (formerly known as GMAC Automotive Bank), which are the current
origination sources of Consumer Financing receivables related to new GM vehicles, regardless of
which GMAC entity receives the Applications or purchases the Consumer Financing contracts going
forward.

     (c) Changes in *** Scale. In the event the *** scale changes (e.g., due to a change
by the credit bureau companies), the *** Target, *** Targets, and *** in Section 3.4(d) will be
recalibrated according to the revised scale and approved by the Coordinating Committee.

     (d) Increases in Delinquency Rate. Should the 3-month weighted trailing average for
*** delinquency (weighted by number of contracts outstanding), where delinquency is defined as the
daily average number of accounts *** days or more past due (“Delinquency Rate”), rise above *** of
the Consumer Financing contracts, the 3-month weighted trailing average *** Target (weighted by
***) and *** Targets (weighted by ***) will be reduced by ***. *** If,

8

 

following the Target reductions, the Delinquency Rate subsequently improves to below ***, the
Targets will return to their original levels.

     (e) Target Measurement. GM will measure GMAC’s achievement of the Targets on a
quarterly basis as of the last day of the months of March, June, September, and December. GMAC
will provide the Coordinating Committee data on a monthly basis by which it can reasonably monitor
GMAC’s performance. The data provided will include the following:

     ***

     (f) Reporting.

     (i) GMAC will continue to provide GM with the Divisional Highlights reports (as
accessed through GMAC Finance report archive website, and as modified from time to time by
agreement of both GM and GMAC) that it produces exclusively for GM’s benefit and use.
Reports include information and statistics on applications (***), contracts booked,
terminated contracts, termination schedules, rate and residual support, and other
information for the month and for the calendar year-to-date, with most of it available by
division, model, and region. Additionally, GM may make reasonable requests for additional
data, to which GMAC will respond promptly. GMAC will not be required to provide information
that it deems in its good faith business judgment to be confidential or significantly
burdensome to produce.

     (ii) In an effort to improve GM incentive efficiency and forecasting ability, GMAC and
GM will work together with the objective of providing GM an extract of the GMAC Information
Warehouse database. GMAC in its sole discretion will determine the content of the extract,
and periodic updates thereof, but will attempt to reasonably respond to GM’s requests for
content. Data will be limited to the extent necessary to conform to all privacy and legal
restrictions. Once GMAC provides the extract to GM, GM and GMAC will work together to
eliminate any unnecessary Divisional Highlight reports. GM will pay reasonable costs, if
any, for establishing and maintaining the extract, net of any savings from eliminating
Divisional Highlight reports.

     Section 3.4 Financial Fees for Failure to Meet Targets.

     (a) Failure to Meet Target. GMAC will notify GM’s Coordinating Committee Lead Member
within ten Business Days of determining that GMAC failed to meet the *** Target or either ***
Target for any month. GM and GMAC will discuss the reason(s) for such failure at the working level
and escalate the matter for further discussion within the parties’ corporate organizations up to
the GMAC President Auto Finance and GM Treasurer, if necessary.

     (b) Cure Period; Rate Reduction. If GMAC fails to meet the *** Target for any
quarter, GMAC will have the next quarter to cure this failure by meeting the *** Target for such
next quarter (“Cure Period”). During the Cure Period, GMAC will reduce the Support Rates described
in Section 3.6(b) by *** basis points on all Consumer Financing contracts that GMAC purchases from
GM Dealers for which GM provides finance charge subsidies to GMAC (“Rate Reduction”) during that
quarter.

9

 

     (c) Financial Fees; *** Target. Subject to Section 3.4(h) below, if GMAC fails to
meet the *** Target at the end of the Cure Period (i.e., fails the *** Target for two consecutive
quarters) or fails to meet the *** Target for 3 out of 5 previous consecutive quarters, GMAC will
pay, or incur, as applicable:

     (i) the Rate Reduction; and

     (ii) a fee of $*** per quarter ***.

However, notwithstanding the above, GMAC will not be required to pay any Rate Reduction or any ***
Fee following a quarter in which it has met the *** Target.

GMAC will pay the *** Fee thirty days following receipt of an invoice from GM. GMAC will continue
to pay the *** Fee, calculated at the beginning of each quarter on the amount by which GMAC missed
the target in the prior quarter, until it meets the *** target for a quarter or until GM revokes
Consumer Financing exclusivity in accordance with Section 3.5.

     (d) ***. If GMAC fails to meet the minimum for *** Target for any quarter, then ***.

     ***

     Subject to Section 3.4(h) below, if GMAC fails to meet any of the following:

     i. the same *** Target for two consecutive quarters (i.e.,
one quarter plus the Cure Period);

     ii. any combination of *** Targets for three consecutive
quarters; or

     iii. the same *** Target for 3 out of 5 previous consecutive
quarters

     Then GMAC will pay or incur as applicable:

     i. the Rate Reduction; and

     ii. a fee of $*** per quarter ***.

However, notwithstanding the above, GMAC will not be required to pay any Rate Reduction or any ***
Fee following a quarter in which it has met the *** Targets.

GMAC will pay the *** Fee thirty days following receipt of invoice. GMAC will continue to pay the
*** Fee, calculated at the beginning of each quarter on the amount by which GMAC missed the target
in the prior quarter, until it meets both *** Targets for a quarter or until GM revokes Consumer
Financing exclusivity in accordance with Section 3.5.

     (e) Largest Fee Only. If GMAC is subject to paying two or more of the *** Fee, the
*** Fee, or the *** Fee in a quarter, GMAC will pay GM only the largest of those fees.

10

 

     (f) Limitation on Rate Reduction. The Rate Reduction will never exceed *** basis
points at any time.

     (g) Late Fees. Any and all such amounts due from GMAC under this Section 3.4 that are
not received by GM on or before thirty days from receipt of invoice (“Due Date”) will accrue
interest at the annual rate of 1.00 % above the prime rate of interest as quoted in the Wall Street
Journal, from the Due Date until the date GM receives full payment.

     (h) Capital Markets Disruption. If GMAC fails to meet the *** Target, or *** Targets,
during any period of time when global credit markets are such that credit is not available on
commercially reasonable terms to borrowers with credit standing similar to GMAC for a period of
three months or longer (“Capital Markets Disruption”), all *** Fees or *** Fees and GM’s right to
terminate exclusivity (under Section 3.5 of this Agreement) will be suspended.

     (i) The GMAC President Auto Finance and GM Treasurer will determine whether a Capital
Markets Disruption has occurred.

     (ii) During the “Capital Markets Disruption” GMAC will make funding available to the
extent that committed lines are in place and to the extent that making such funding
available from committed lines does not jeopardize GMAC’s liquidity as determined by GMAC.
***.

     (iii) The suspension of *** Fee, *** Fee and GM’s right to terminate exclusivity will
continue until the Capital Markets Disruption has passed, as determined by the GMAC
President Auto Finance and GM Treasurer.

     (iv) Upon expiration of the suspension, GMAC will be treated as having been in
compliance with the Targets during the entire period of the Capital Markets Disruption
regardless of where GMAC was in the *** Fee or *** Fee cycle prior to the Capital Markets
Disruption, and GMAC will immediately begin to be measured against the Targets again.

     Section 3.5 Termination of Exclusivity For Failure to Meet Targets.

     (a) Trigger. GM will have the option to revoke the Consumer Financing exclusivity
rights granted to GMAC under Section 3.2 of this Agreement in whole or in part if any of the
following events occur:

     (i) GMAC fails to meet the *** Target for three consecutive quarters; or

     (ii) GMAC fails to meet the *** Target for two consecutive quarters and GMAC has also
missed the *** Target for a minimum of 4 out of the 6 most recent consecutive quarters; or

     (iii) GMAC fails to meet the same *** Target for three consecutive quarters; or

11

 

     (iv) GMAC fails to meet the same *** Target for two consecutive quarters and GMAC has
also missed the same *** Target for a minimum of 4 out of the 6 most recent consecutive
quarters; or

     (v) GMAC fails to meet either of the *** Targets for four consecutive quarters.

     (b) Effect of Termination. GM’s option to revoke Consumer Financing exclusivity
rights will terminate once GM exercises its option in whole or in part, or as soon as GMAC meets
the applicable target which triggered GM’s option to revoke exclusivity. Once GMAC becomes
compliant with the Target that triggered GM’s option and the option therefore terminates, GMAC’s
prior failures to meet the Target will continue to be considered when determining future penalties
or losses of exclusivity in accordance with the terms of this Agreement. GM’s option to revoke
Consumer Finance exclusivity rights will terminate once GM exercises its option in whole or will be
subject to Section 3.5(b)(ii)(E) below if GM exercises its option in part.

     (i) If GM exercises its option by revoking Consumer Financing exclusivity in whole,

     (A) GMAC will no longer be subject to any *** Fees or *** Fees other than ***
Fees or *** Fees accrued prior to the date of revocation of exclusivity.

     (B) GM may also revoke exclusive access to United States GM Dealer information
granted to GMAC in the Dealer Financing Service Agreement between GM and GMAC, and
may also terminate the license of the GMAC trademark in the U.S. as provided in
Section 5.2(d) of the Intellectual Property License Agreement between GM and GMAC.

     (ii) If GM exercises its option by revoking Consumer Financing exclusivity in part,

     (A) GM will select a geographically contiguous area within the United States
and terminate such Consumer Financing exclusivity in total within that
geographically contiguous area (i.e., GM cannot remove exclusivity by brand,
nameplate, product (retail versus lease), or by dealer). For purposes of this
provision, Puerto Rico is deemed to be contiguous with Florida, Hawaii is contiguous
with California, and Alaska is contiguous with Washington.

     (B) All of GMAC’s Targets and Fees related to that particular geographic area
will cease.

     (C) GMAC’s *** Target and *** Targets will be reset as appropriate to reflect
any geographic differences in GMAC’s performance in the geographic areas where
exclusivity remains (“Remaining Area”). In particular, the Targets will be adjusted
downward, as appropriate, based on GMAC’s prior 12 months’ actual experience in the
Remaining Area in relation to the prior 12 months’ actual experience across the U.S.
***. Under no circumstances will the adjustment just

12

 

described increase GMAC’s commitment on the Remaining Area above the original
U.S.-wide commitment.

     (D) The *** Fee and *** Fee to which GMAC is subject on the Remaining Area will
be adjusted downward on a prorated basis in proportion to the volume of GM vehicle
sales in the prior 12 months in the geographic area where exclusivity was removed in
proportion to GM’s total U.S. vehicle sales. ***.

     (E) Once a loss of exclusivity event occurs and the Targets and Fees have been
reset, GMAC will be deemed to be initially in compliance with these new commitments
(i.e., for purposes of measuring compliance with the Targets, determining Fees and
triggering any new option to revoke exclusivity GMAC will be deemed to have been in
compliance up to that point). Measurement of compliance with the Targets will
continue to be measured quarterly on a trailing 3-month average basis.

     (F) GMAC will adjust its pricing model assumptions, including *** assumptions,
as necessary to reflect the experience in the Remaining Area and for any expected
ongoing impacts to GMAC’s operating efficiency. In addition, GMAC’s operating
expense cap will be adjusted upward to address any increased operating
inefficiencies which result from the partial loss of exclusivity, as agreed by the
Coordinating Committee.

     (G) This same process described in 3.5(b)(ii)(A) through (F) above will be
repeated each time there is a partial loss of exclusivity.

     (iii) If the cumulative loss of exclusivity ever reaches an area that represents ***%
of GM’s total U.S. vehicle sales based on prior 12-months sales (i.e., the Remaining Area of
exclusivity is reduced to only ***% of GM’s total U.S. vehicle sales), GMAC will be relieved
of having to meet any Targets or paying any Fees and GM will be relieved of any Exclusivity
requirements.

     Section 3.6 Compensation and Pricing.

     (a) General. Where GM offers GM Special Programs GM will compensate GMAC based on the
terms described in this Agreement.

     (b) Rate Support. For GM Special Programs involving rate subsidies paid by GM to GMAC
in connection with Consumer Financing:

     (i) GM will compensate GMAC for the difference between its Support Rate and the GM
Program Rate (which is defined as the Consumer’s annual percentage rate minus any increment
that the dealer added at the dealer’s discretion, plus the SmartLease Plus rate decrement,
if applicable), and

     (ii) GMAC will determine pricing by product ***.

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Rate Support payments will be made at inception of the contract in accordance with payment terms
described below. ***.

GMAC will invoice GM for contracts booked in a particular month by the 5th Business Day
of the following month and GM will make payment by the 15th calendar day of that same
month or if the 15th calendar day falls on a weekend or a holiday weekend, by the closest Business
Day to the 15th calendar day or if the 15th calendar day is the same number of calendar
days from two Business Days, by the Business day that precedes the 15th calendar day
(“Due Date”). If GMAC does not invoice GM by the 5th Business Day, the Due Date will be extended
by the same number of calendar days that GMAC delays invoicing GM, counted from the 5th Business
Day through the date on which GMAC actually invoices GM.

     (c) Residual Support. GM will pay GMAC any amounts owed in connection with GM’s
residual support incentive programs in accordance with Section 3.7.

     (d) Lease Pull Ahead. GM will pay GMAC any amounts owed in connection with GM’s lease
pull ahead program in accordance with Section 3.9.

     (e) Payment Terms. GM will pay to GMAC the amounts due under this Agreement on the
terms specified for the payment category (“Due Date"). Any and all such amounts not received on
or before the Due Date will accrue interest at the annual rate of 1.00% above the prime rate of
interest as quoted in the Wall Street Journal, from the Due Date until the date GMAC receives full
payment.

     (f) GMAC Special Programs. From time to time GMAC may, in its sole discretion, choose
to run special programs at its own cost.

     (g) Other Pricing for Other GM Special Programs. Pricing for Special Programs, other
than those specifically identified in this Agreement for different handling, will be determined by
application of the principles provided in Section 2.1 above and consistent with the spirit of the
pricing methodology for GM Special Programs specifically identified in this Agreement. For
example, if GM requests GMAC to waive security deposits for specific categories of Consumers, GMAC
will do so for a reasonable price set by GMAC; however, if GMAC decides to waive security deposits
for Consumers in the ordinary course of business at its own expense, GM will not be charged. If
application of these principles to specific GM Special Programs is not self evident and requires
negotiation between the parties, the terms and conditions of that GM Special Program, including the
pricing mechanism, will be documented in a separate implementing agreement. At GM’s request, GMAC
will share with GM the projected cost assumptions for such GM Special Programs.

     (h) Comparative Pricing. ***:

     ***

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     Section 3.7 Residual Support.

     (a) ALG Value. In the United States, GM may provide residual value support to GMAC
with respect to lease or balloon retail installment sale contracts to increase a vehicle’s contract
residual value above ALG Value as determined at lease or balloon retail installment sale contract
inception. For purposes of this Section and Section 3.8 below:

     (i) For all GM vehicle lines except Cadillac, ALG Value is defined as the residual
values in the Residual Value Lease Guide published by Automotive Lease Guide for GMAC.

     (ii) For Cadillac vehicles, ALG Value is defined as the residual values provided by
Automotive Lease Guide to GMAC prior to the addition of residual support as determined by
Cadillac for inclusion in the Residual Value Lease Guide.

     (iii) The term “leases” will include balloon retail installment sale contracts as
appropriate.

     (b) ALG Value Adjustments. ALG Values will be unadjusted except for adjustments made
historically and in accordance with expected residual value impact as specified in the Residual
Value Lease Guide published by Automotive Lease Guide for GMAC that reflect the expected residual
value impact of the following (collectively “Adjusted ALG”):

     (i) low mileage leases;

     (ii) additional mileage over and above ALG Value purchased by the Consumer at lease
inception;

     (iii) GMAC allowed dealer-installed accessories; or

     (iv) interpolation for odd-term leases.

If GMAC decides to add its own residual support, it does so at its own risk and expense.

     (c) Residual Support Amount. The amount of support provided by GM to GMAC will be
calculated as the difference between the contract residual value (less any residual support
provided by GMAC itself) and Adjusted ALG (“Original Residual Support Guaranty”). To reimburse
GMAC for the amount by which the Original Residual Support Guaranty is not fully realized at the
end of the lease:

     (i) At lease inception GM will pay the portion of the Original Residual Support
Guaranty expected to be owed to GMAC upon remarketing of the returned lease vehicle. The
expected amount of the residual value payment will be determined by multiplying the Original
Residual Support Guaranty amount by the historical percentage (based on the average percent
realized at termination over the past three calendar years) of the Original Residual Support
Guaranty not realized upon remarketing (“Expected Residual Support Payment”), discounted
back to lease inception at GMAC’s unsecured cost of funds ***.

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     (A) The historical percentage of the Original Residual Support Guaranty not
realized upon remarketing will be updated annually.

     (B) GMAC will invoice GM for contracts booked in a particular month by the
5th Business Day of the following month and GM will make payment by the
15th calendar day of that same month or if the 15th calendar day falls on
a weekend or a holiday weekend, by the closest Business Day to the 15th calendar day
or if the 15th calendar day is the same number of calendar days from two
Business Days, by the Business day that precedes the 15th calendar day or
if the 15th calendar day is the same number of calendar days from two
Business Days, by the Business day that precedes the 15th calendar day
(“Due Date”). If GMAC does not invoice GM by the 5th Business Day, the Due Date
will be extended by the same number of calendar days that GMAC delays invoicing GM,
counted from the 5th Business Day through the date on which GMAC actually invoices
GM.

     (ii) At the conclusion of the lease contract, there will be a true-up payment made by
either GM or GMAC, as appropriate, which is calculated as the difference between the Actual
Residual Support Payment Required and the Expected Residual Support Payment (“True-up
Payment”).

     (A) The Actual Residual Support Payment Required is calculated as follows:

	 	(1)	 	For instances where the actual
resale proceeds are less than the contract residual (less any
residual support provided by GMAC itself), the difference
between the contract residual value (less any residual support
provided by GMAC itself) and the actual resale proceeds, up to a
maximum of the Adjusted Residual Support Guaranty.
	 
	 	(2)	 	For instances where the actual
resale proceeds are equal to or greater than the contract
residual (less any residual support provided by GMAC itself),
zero.

     (B) The amount of the Adjusted Residual Support Guaranty is calculated as
follows:

	 	(1)	 	For contracts terminating at
scheduled maturity, the Adjusted Residual Support Guaranty is
calculated to be 100% of the Original Residual Support Guaranty.
	 
	 	(2)	 	For contracts terminating prior
to scheduled maturity (including defaults and situations where
the Consumer never purchased or returned the vehicle (“Skip”)),
the Adjusted Residual Support Guaranty is calculated by dividing
the number of months that the contract was actually outstanding
by the number of months in the

16

 

	 	 	 	original contract term and multiplying that by the Original
Residual Support Guaranty. In the case of Skips, the actual
number of months outstanding is determined based on when the
vehicle is classified as a Skip.

GMAC will prepare a True-Up statement for GM; the party owed will invoice to the
other party for True-Up Payments accrued in a particular month by the 5th
Business Day of the following month, and the owing party will pay the invoice to the
other party by the 15th calendar day of that same month or if the 15th
calendar day falls on a weekend or a holiday weekend, by the closest Business Day to
the 15th calendar day or if the 15th calendar day is the same number of
calendar days from two Business Days, by the Business day that precedes the
15th calendar day (“Due Date”). If the party owed does not invoice the
other party by the 5th Business Day, the Due Date will be extended by the same
number of calendar days that the party owed delays invoicing the other party,
counted from the 5th Business Day through the date on which the party owed actually
invoices the other party.

     Section 3.8 Residual Exposure at End of Lease Period for Lease Acquisition. As part
of the remarketing arrangement between GM and GMAC, and in recognition of the importance of
residual values to each of them, the following risk-sharing arrangement applies to all returned
SmartLease vehicles remarketed through a physical or internet auction:

     (a) Following the resale of a SmartLease Vehicle under the Remarketing Services Agreement
between GM and GMAC, GMAC will receive the net proceeds of such sale, calculated as the gross
proceeds of the sale before any auction expenses are subtracted, plus any insurance settlement,
plus any allowed insurance deductible, plus any allowed mileage charge, plus any additional mileage
purchased up front, less any unused mileage refunded at the termination of the related lease, plus
any allowed excess wear and tear ( “Resale Proceeds”).

     (b) (i) If the Resale Proceeds are less than the Adjusted ALG value but greater than or equal
to ***% of Residualized MSRP, GM will pay GMAC the lesser of (a) ***% of the difference between the
Resale Proceeds and the Adjusted ALG and (b) ***% of the Residualized MSRP.

     (ii) If Resale Proceeds are less than ***% of the Residualized MSRP, GM will pay GMAC the
lesser of (a) ***% of the shortfall, if any, of ***% of the Residualized MSRP from the Adjusted ALG
and (b) ***% of the Residualized MSRP.

     (iii) For the avoidance of doubt, GMAC is solely responsible for any shortfall of Resale
Proceeds below ***% of the Residualized MSRP (i.e., GM will not pay GMAC any portion of such
amount).

     (iv) For purposes of this Section 3.8, Residualized MSRP means the MSRP of the vehicle,
including destination and freight charges, plus any allowable dealer-installed options as listed in
the GMAC Residual Value Lease Guide, less the cost of any removed equipment, plus any option
package discount that was netted in the vehicle MSRP.

17

 

     (v) GMAC will invoice GM for such risk sharing costs incurred in a particular month pursuant
to this paragraph (b) by the 5th Business Day of the following month, and GM will pay GMAC the
amount due by the 15th calendar day of that same month or if the 15th calendar day falls on a
weekend or a holiday weekend, by the closest Business Day to the 15th calendar day or if the 15th
calendar day is the same number of calendar days from two Business Days, by the Business Day that
precedes the 15th calendar day (“Monthly Due Date”). If GMAC does not invoice GM by the 5th
Business Day, the Monthly Due Date will be extended by the same number of calendar days that GMAC
delays invoicing to GM, counted from the 5th Business Day through the date on which GMAC actually
invoices GM.

     (c) Commencing with the quarter beginning January 1, 2009 and terminating with the quarter
ending December 31, 2014, GM will pay GMAC a quarterly leasing premium related to new SmartLease
volume equal to $*** per quarter.

     GMAC will invoice GM for the quarterly leasing premium incurred in a particular quarter by the
5th Business Day of the month following the applicable quarter, and GM will pay GMAC the
amount due by the 15th calendar day of that same month or if the 15th calendar day falls
on a weekend or a holiday weekend, by the closest Business Day to the 15th calendar day or if the
15th calendar day is the same number of calendar days from two Business Days, by the
Business day that precedes the 15th calendar day (“Quarterly Due Date”). If GMAC does
not invoice GM by the 5th Business Day, the Quarterly Due Date will be extended by the same number
of calendar days that GMAC delays invoicing GM, counted from the 5th Business Day through the date
on which GMAC actually invoices GM.

     (d) If GM decides to discontinue, phase-out or sell a vehicle nameplate brand (Buick,
Cadillac, Chevrolet, Pontiac, GMC, Hummer, Saab, Saturn, or any future brand that the parties
mutually agree should be considered for purposes of this clause (d)) (“Nameplate Elimination”), GM
will reimburse GMAC for actual incremental residual losses incurred by GMAC resulting from the
Nameplate Elimination on all SmartLease and SmartBuy vehicles outstanding as of the date of GM’s
public announcement of the Nameplate Elimination and any new contracts written between the
announcement date and the earlier of (1) the next date that the Residual Value Leasing Guide is updated
to reflect an ALG value that comprehends GM’s public announcement of the Nameplate Elimination, and (2)
the date that is 3 months after GM’s public announcement of the Nameplate Elimination (each vehicle
an “Eliminated Vehicle”).

     GMAC will calculate the amount of the actual incremental residual loss incurred by GMAC (and
will promptly share such calculations with GM) as follows:

     (i) For the period immediately preceding the announcement of the Nameplate Elimination, each
Eliminated Vehicle model will be compared to a mutually agreed upon specified comparable
non-Eliminated Vehicle model (“Comparable Model”). A “Baseline Differential” for each Eliminated
Vehicle model will be determined by taking Resale Proceeds as a percent of estimated dealer cost
(“EDC”) for each Eliminated Vehicle model less Resale Proceeds as a percent of EDC for its
Comparable Model based on the performance of scheduled terminations of the predominant original
lease term for that model (e.g., 36-months) for the 12-month period immediately preceding the
announcement of the Nameplate Elimination.

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     (ii) For each month following the announcement of the Nameplate Elimination, the “Actual
Monthly Differential” for each Eliminated Vehicle model will be determined by taking average Resale
Proceeds as a percent of average EDC for each Eliminated Vehicle model less average Resale Proceeds
as a percent of average EDC for its Comparable Model based on the performance of scheduled
terminations of the predominant original lease term for that model (determined in (d)(i) above)
during the month.

     (iii) For each month, the Actual Monthly Differential will then be compared to the Baseline
Differential on each Eliminated Vehicle model. If the Actual Monthly Differential less the
Baseline Differential is a percentage less than 0 for any particular Eliminated Vehicle model, then
such percentage will be applied to the cumulative EDC for all scheduled and early terminations
during that month for that Eliminated Vehicle model to determine the incremental loss for that
Eliminated Vehicle model for that particular month (“Gross Incremental Losses”). For example, if,
in November, the Actual Monthly Differential on an Eliminated Vehicle model is -4.2% of EDC and the
Baseline Differential for that same Eliminated Vehicle model is -2.0% of EDC, then the Gross
Incremental Losses for that Eliminated Vehicle model for all terminations in November will be equal
to -2.2% (= -4.2% — -2.0%) times the total EDC for all of those Eliminated Vehicles.

If the Actual Monthly Differential less the Baseline Differential is a percentage greater than or
equal to 0 for any particular Eliminated Vehicle model, then there will be no gross incremental
loss for terminations during that month for that Eliminated Vehicle model. In the previous
example, if the Actual Monthly Differential is instead -1.3% of EDC, then the Gross Incremental
Losses will be 0 for that Eliminated Vehicle model in November (because -1.3% — -2.0% = +0.7%,
which is greater than 0).

     (iv) To the extent that any portion of the Gross Incremental Losses for any particular
Eliminated Vehicle model for a particular month are already partially or wholly covered by GM’s
obligations under Section 3.7, Section 3.8(b) or Section 3.9 of this Agreement, then the Gross
Incremental Losses for that particular Eliminated Vehicle model for that particular month will be
reduced accordingly (the reduced amount being the “Net Incremental Losses”).

     (v) On a quarterly basis, GMAC will invoice GM for the total Net Incremental Losses incurred
by GMAC during the preceding quarter by the 5th Business Day following the end of that
quarter, and GM will pay GMAC the amount due by the Quarterly Due Date. If GMAC does not invoice
GM by the 5th Business Day, the Quarterly Due Date will be extended by the same number of calendar
days that GMAC delays invoicing GM, counted from the 5th Business Day through the date on which
GMAC actually invoices GM.

     (vi) Following the announcement of a Nameplate Elimination, data related to Eliminated Vehicle
models will be excluded from the development of any
SmartLease or SmartBuy pricing model residual loss assumptions (as summarized in Exhibit B). For
the avoidance of doubt, GMAC will not be entitled to increase future pricing as a result of
decreased residual performance linked to Eliminated Vehicle models following the announcement of a
Nameplate Elimination.

19

 

     Section 3.9 Lease Pull Ahead Programs. GM may offer incentives to encourage Consumers
to terminate their lease contracts or balloon installment contracts that GMAC purchased from GM
Dealers, and return their vehicles before the scheduled maturity date, thereby relieving the
Consumers of all or a portion of the obligations under their contracts if they simultaneously
purchase or lease a new GM vehicle (e.g. from November 1, 2005 through December 31, 2005 Consumers
were offered the opportunity to pull ahead contracts scheduled to mature from January through April
2006). GM will determine the periods during which the pull ahead programs are offered. GM is
responsible for the total net cost of each lease pull ahead program and will reimburse GMAC for its
total net cost of this program as provided in Exhibit C. If the program results in a net benefit
to GM and GMAC, they will share equally in such benefit.

     (a) GMAC will invoice to GM for vehicles returned in a particular month by the 5th Business
Day of the following month as described in Exhibit C based on a good faith estimate of the average
per vehicle impact on remarketing proceeds due to the pull ahead program. GM will pay GMAC the
invoice amount by the 15th calendar day of that same month or if the 15th calendar day falls on a
weekend or a holiday weekend, by the closest Business Day to the 15th calendar day or if the
15th calendar day is the same number of calendar days from two Business Days, by the
Business day that precedes the 15th calendar day (“Due Date”). If GMAC does not invoice
GM by the 5th Business Day, the Due Date will be extended by the same number of calendar days that
GMAC delays invoicing GM, counted from the 5th Business Day through the date on which GMAC actually
invoices GM.

     (b) GMAC will prepare a True-Up statement for GM; the owing party will make True-Up Payments
once principally all eligible vehicles that did not pull ahead have been remarketed and it is
possible to compare the remarketing proceeds of the vehicles that were pulled ahead to the
remarketing proceeds of the eligible comparison vehicles that did not pull ahead. GM or GMAC, as
applicable, will send an invoice to the other party by the 5th Business Day of the following month,
and the owing party will pay the invoice amount to the other party by the 15th calendar day of that
same month or if the 15th calendar day falls on a weekend or a holiday weekend, by the closest
Business Day to the 15th calendar day or if the 15th calendar day is the same number of
calendar days from two Business Days, by the Business day that precedes the 15th
calendar day (“Due Date”). If the owed party does not invoice the other party by the 5th Business
Day, the Due Date will be extended by the same number of calendar days that the owed party delays
invoicing the other party, counted from the 5th Business Day through the date on which the owed
party actually invoices the other party.

     Section 3.10 Residualizing Dealer-installed Options. GM and GMAC acknowledge that
dealer-installed option sales are an important growth strategy for GM, for which GMAC may also
realize growth benefits. GMAC currently allows certain specified dealer-installed options to be
included in the contract residual value (“residualized”), as listed in the GMAC Residual Value
Lease Guide. For options on the list that are specific to a vehicle model, GMAC will continue to
residualize those options for the remainder of the existing model’s life cycle (i.e., until next
major restyling). For options on the list that are available on multiple vehicle models (e.g., CD
changer), GMAC will continue to residualize those options for the first four years following the
Effective Date.

20

 

Other than as described above, GM or GMAC, from time to time, may request additions to the list,
subtractions to the list, continuations of current list options beyond the time period agreed to
above, options on new products, or changes to the amount of residualization. These requests will
be reviewed and mutually agreed upon at the working level by members of both parties. If agreement
is not reached, the request will be forwarded to the Coordinating Committee for resolution.

     Section 3.11 Participation in Market Update Meetings. GM will notify GMAC about
scheduled GM “Market Update” meetings and, consistent with current and historical practice, GMAC
will have the right, but not the obligation, to attend such meetings in its sole discretion. GM
may also provide GMAC with notice of and, consistent with current and historical practice, an
opportunity to attend other meetings pertaining to marketing plans, incentive strategies or
tactics. GM will not be required to provide information that it deems in its good faith business
judgment to be confidential or significantly burdensome to produce. GMAC may share information it
receives with others who have a need to know to implement programs, consistent with GM’s Vehicle
Sales Service and Marketing business unit’s program implementation timing and confidentiality of
information.

     Section 3.12 Service Standards. GMAC will continue to provide high levels of service
to GM, GM Dealers, and Consumers consistent with current and historical practice. GMAC will
actively work to increase the ease of doing business, completing transactions, and resolving
disputes with GM, GM Dealers, and Consumers. Neither GM nor GMAC will take any corporate-wide
actions that adversely impact the image of the other party.

ARTICLE IV

TERM; TERMINATION

     Section 4.1 Term. The initial term of this Agreement commences on the date of this
Agreement and, unless earlier terminated as provided for in Section 4.2, expires on the
10th anniversary (i.e., November 30, 2016). Upon the expiration of the initial or any
renewal term of this Agreement, the term of this Agreement will be automatically renewed for an
additional one-year period. For purposes of this Agreement, “Term” means the initial term and any
renewal term. Notwithstanding the above, the duration of Implementing Agreements will be governed
by provisions concerning term and termination contained in such Implementing Agreements.

     Section 4.2 Termination. This Agreement may be terminated as follows:

     (a) by either party at the end of the Term upon 3 years notice prior to the end of any Term;

     (b) by either party upon the 60th day after giving written notice to the other party of
material breach of this Agreement by such other party, if such material breach has not been cured
to the reasonable satisfaction of the non-breaching party on or before such 60th day; or

     (c) to the extent that any Governmental Authority requires GM or GMAC to terminate this
Agreement or any material obligation(s) under, then any such termination will be effective as of
the effective date of such required termination.

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     Section 4.3 Obligations Upon Expiration or Termination. Upon the expiration or
termination of this Agreement for any reason, GM and GMAC will:

     (a) to the extent reasonably requested by either party, fully cooperate in any transfer of any
servicing functions contemplated by this Agreement to a third party; and

     (b) complete performance of any pending, “in-progress” obligations according to such
standards, including confidentiality, security and accuracy, as were in effect under this Agreement
prior to its termination and compensate each other for such services to the same extent as if such
services had been performed during the Term of this Agreement.

The provisions of Article IX will survive the expiration or termination of this Agreement for three
years.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

     GM and GMAC each hereby represent and warrant to the other party that, as of the date hereof:

     (a) It is an entity duly organized, validly existing, and in good standing under the laws of
the jurisdiction in which it was formed and has all requisite power and authority to enter into and
perform all of its obligations under this Agreement.

     (b) The execution, delivery and performance of this Agreement by it have been duly authorized
by all requisite action on its part.

     (c) This Agreement constitutes a valid and binding obligation of it and is enforceable against
it in accordance with its terms.

     (d) The execution and performance of this Agreement by it will not (i) violate any provision
of applicable law, (ii) conflict with the terms or provisions of its organizational or governance
documents, or any other material instrument relating to the conduct of its business or the
ownership of its property or (iii) conflict with any other material agreement to which it is a
party or by which it is bound.

     (e) There are no actions, suits, proceedings or other litigation or governmental
investigations pending or, to its knowledge, threatened, by or against it with respect to this
Agreement or in connection with the Dealings contemplated by this Agreement.

     (f) There is no order, injunction, or decree outstanding against, or relating to, it that
could reasonably be expected to have a material adverse effect upon its ability to perform its
obligations under this Agreement.

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ARTICLE VI

INTELLECTUAL PROPERTY/TRADEMARK

In accordance with the Intellectual Property License Agreement between GM and GMAC, GM and GMAC
have each granted the other party a worldwide license to use and display its various names,
trademarks, service marks and copyrights for the purpose of performing the services contemplated by
this Agreement.

ARTICLE VII

AUDITS BY THE PARTIES

For Compliance Audits and to facilitate audits, reviews, and investigations by Government
Authorities, GM and GMAC will provide the other party and, subject to the execution of appropriate
and reasonable confidentiality agreements, its agents, upon not less than five Business Days prior
notice, reasonable assistance and access, during regular business hours, to its files, books, and
records pertaining to the services contemplated by this Agreement. Neither GM nor GMAC may perform
Compliance Audits more than once in any six-month period. Any Compliance Audit will be limited in
duration, manner, and scope reasonably necessary and appropriate to confirm compliance with the
terms and conditions of this Agreement.

ARTICLE VIII

LIABILITY AND REMEDIES

     Section 8.1 Liability. Each party will be liable in contract for the breach of its
obligations, covenants, and agreements under this Agreement, and will not be liable to the other
party: (i) under tort, except for gross negligence or willful misconduct; (ii) for equitable claims
(but not including any equitable remedies); or (iii) for claims arising out of any contract with
any customer, dealer, or other third party or otherwise in connection with their relationship with
such Persons except as provided in Article III of this Agreement.

     Section 8.2 Limitation of Liability. Neither party is liable under Section 8.1 for
any:

     (a) damages caused by a Force Majeure Condition as defined in Section 10.13; or

     (b) indirect, incidental, consequential, or non-economic damages.

     Section 8.3 Equitable Remedies Permitted. Nothing in this Article limits or restricts
either party’s ability to seek equitable remedies, including specific performance.  

     Section 8.4 Liquidated Damages. The parties acknowledge that although the
determination of the exact amount of damages would be difficult, the fees provided in Article III
are a reasonable estimate of the damages that GM would incur if GMAC failed to meet the *** Target
or either *** Target. The *** Fee, *** Fee, and the Rate Reduction are liquidated damages and are
not to be construed as penalties.

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ARTICLE IX

CONFIDENTIALITY

     Section 9.1 Nondisclosure.

     (a) Neither party will use or disclose any Confidential Information of the other party or the
terms, conditions and provisions of this Agreement except (i) to its Representatives to the extent
reasonably necessary to perform its obligations under this Agreement or any other services
agreements between the parties, (ii) to the extent expressly consented to by the other party or
(iii) upon at least ten Business Days’ written notice to the other party, to the extent required to
be disclosed by any of the following: (A) order of a court of competent jurisdiction,
administrative agency or governmental body; (B) by subpoena, summons or other legal process; (C)
law, regulation or rule; (D) applicable regulatory or professional standards; or (E) in connection
with any judicial or other adjudicatory proceeding in which GM or GMAC is a party;
provided, however, that the party required to make any disclosure otherwise in
contravention of Section 9.1 will, if possible, promptly notify the other party of any such
requirement so that such other party, at its sole cost and expense, may seek an appropriate
protective order.

     Section 9.2 Survival. The provisions of this Article IX survive the expiration or
termination of this Agreement and remain in force and effect for five years following expiration
and termination of this Agreement for GMAC’s pricing model and three years following expiration or
termination of this Agreement for all other Confidential Information.

     Section 9.3 Information Security.

     (a) GM and GMAC will take all necessary technical and organizational precautions to ensure
that each other’s Confidential Information is protected from unauthorized access, alteration,
disclosure, erasure, manipulation and destruction by third parties while such information is in its
possession or control and will ensure that such information is not processed in other ways
contradictory to privacy and/or data protection laws.

     (b) Upon written request, GM and GMAC will provide each other reasonable information regarding
the processing of such information, including where and how such information is stored, who has
access to such information and why and what security measures are taken to ensure that such
information is protected from unauthorized access, alteration, disclosure, erasure, manipulation
and destruction while in its possession or control.

     (c) GM and GMAC will maintain sufficient procedures to detect and respond to security breaches
involving Confidential Information and will inform each other as soon as practicable when either of
them suspects or learns of malicious activity involving such Confidential Information, including an
estimate of the activity’s effect on the other party and the corrective action taken.

     Section 9.4 Data Privacy 

     (a) GM and GMAC each will treat Confidential Personal Information confidentially and use or
disclose Confidential Personal Information only in connection with providing

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Consumer Financing Services and their other obligations under this Agreement. GM and GMAC
each will restrict disclosure of Confidential Personal Information to their employees or agents who
have a need to know such information in connection with providing Consumer Financing Services and
the performance of the parties’ obligations under this Agreement.

     (b) Unless otherwise prohibited by law, GM and GMAC each will immediately notify the other
party of any legal process served on such party for the purpose of obtaining Confidential Personal
Information and, prior to disclosure of any Confidential Personal Information in connection with
such process, use its reasonable best efforts to give the other party adequate time to exercise its
legal options to prohibit or limit such disclosure.

     (c) GM and GMAC each will implement appropriate measures designed to meet the following
objectives: (i) ensure the security and confidentiality of Confidential Personal Information; (ii)
protect against any anticipated threats or hazards to the security or integrity of such information
and (iii) protect against unauthorized access to or use of such information that could result in
substantial harm or inconvenience to the person about whom the Confidential Personal Information
refers.

     (d) Within ten days following termination of this Agreement or ten days following the
completion of a project for which the Confidential Personal Information has been provided,
whichever first occurs, upon the other party’s request, GM or GMAC, as the case may be, will (i)
return the other party’s Confidential Personal Information to such other party or (ii) certify in
writing to the other party that such Confidential Personal Information has been destroyed in such a
manner that it cannot be retrieved.

     (e) GM and GMAC will notify each other promptly upon the discovery of any loss, unauthorized
disclosure, unauthorized access or unauthorized use of the Confidential Personal Information and
will indemnify the other party and hold the other party harmless for such loss, unauthorized
disclosure, unauthorized access or unauthorized use, including attorney’s fees.

     (f) If GM and GMAC intend to exchange Confidential Personal Information or any other personal
information regarding individuals located outside the United States, the parties will take
appropriate steps, including using reasonable efforts to obtain consents from the GM Dealers or
other Persons if necessary, and execute ancillary agreements to ensure compliance with the data
privacy laws in such jurisdiction. Similarly, if any Governmental Authority in the United States
enacts laws or regulations that relate to the exchange of dealer or other third party information
under this Agreement, the parties will take appropriate steps to ensure compliance with such laws
or regulations.

ARTICLE X

MISCELLANEOUS

     Section 10.1 Successors and Assigns. This Agreement binds and inures to the benefit
of the parties hereto and their respective successors and assigns. Neither party may assign,
delegate, or otherwise transfer any of its rights or obligations under this Agreement (by operation
of law or otherwise) to any party other than one of its Subsidiaries without the consent of the

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other party hereto, which consent will not be unreasonably withheld; provided that any
assignment or transfer to any Subsidiary will not relieve any party of its obligations under this
Agreement.

     Section 10.2 No Third Party Beneficiaries. Nothing in this Agreement, express or
implied, confers upon any person or entity, other than the parties and their successors and
permitted assigns, any rights or remedies under or by reason of this Agreement.

     Section 10.3 Waiver. The failure of any party to insist, in any one or more
instances, upon the performance of any of the terms, covenants, or conditions of this Agreement or
to exercise any right hereunder, will not operate or be construed as a waiver of any default,
right, or remedy or of that party’s right to insist upon strict compliance in the future. No
waiver of any term, condition, or other provision of this Agreement is effective against a party
unless acknowledged by such party in writing.

     Section 10.4 Unenforceability. If a court of competent jurisdiction holds any one or
more of the provisions of this Agreement to be unenforceable in any respect under the laws of any
state of the United States or any other applicable jurisdiction, such unenforceability will not
affect any other provision. In such event, the parties will substitute a provision that is as
close as possible to the intent of the original unenforceable provisions.

     Section 10.5 Headings. Headings used in this Agreement are for reference purposes
only and will not to be deemed a part of this Agreement or used in the interpretations of the
substantive provisions of it.

     Section 10.6 Governing Law. This Agreement is governed by, and construed and enforced
in accordance with the laws of the State of New York, excluding any conflict of law provisions that
would require application of any other law.

     Section 10.7 Dispute Resolution. Any dispute, controversy, claim, or disagreement
arising from or in connection with this Agreement (“Dispute”), will be exclusively governed by and
resolved in accordance with the provisions of this Section 10.7. Except as provided in this
Section 10.7, neither party will seek judicial relief of any Dispute.

     (a) Any Dispute which cannot be resolved at the working level will in the first instance be
submitted to the Coordinating Committee, whenever practical via notice with reasonable detail to
each member in advance of the next scheduled meeting.

     (b) If at formal meeting or within 10 Business Days thereafter (unless a different time is
agreed to by the Coordinating Committee) the Coordinating Committee is unable to resolve any such
Dispute, it will immediately be escalated to the GMAC President Auto Finance and the GM Treasurer,
or their designees for the particular matter, for resolution.

     (c) Any Dispute under this Agreement which is not resolved by the GMAC President Auto Finance
and the GM Treasurer (or their designees for the particular matter) within 30 days of submission to
them will immediately be escalated to the GMAC CEO and GM CFO. If a Dispute is not resolved within
90 days of the date of escalation to the GMAC Auto President and GM Treasurer, either party may
pursue legal remedies.

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     (d) Each party agrees that any suit, action or proceeding against the other party arising out
of or relating to this Agreement or any transaction contemplated hereby will be brought in any
federal or state court located in the city, county and State of New York, and each party hereby
submits to the exclusive jurisdiction of such courts for the purpose of any such suit, action or
proceeding. Each party further agrees that service of any process, summons, notice or document by
U.S. registered mail to such party’s respective address set forth in this Agreement for notice will
be effective service of process for any action, suit or proceeding in the State of New York with
respect to any matters to which it has submitted to jurisdiction in this Section. EACH OF THE
PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     (e) This Section 10.7 will not limit either party’s right to apply to a court of competent
jurisdiction for equitable, provisional relief with respect to any Dispute pending the resolution
of the Dispute pursuant to this Section 10.7.

     Section 10.8 Entire Agreement. This Agreement, including the Exhibits attached
hereto, constitutes the entire agreement between GMAC and GM with respect to the subject matter of
this Agreement and, except to the extent otherwise contemplated by this Agreement, supersedes all
previous oral and written agreements, proposals, negotiations, representations, commitments, and
other communications among the parties with respect to its subject matter. Notwithstanding the
foregoing, to the extent Dealings related to Consumer Financing are not covered by this Agreement
or another agreement between GM and GMAC, GM and GMAC will address such situation and enter into a
separate agreement, consistent with current and historical practice in the United States and the
spirit of this Agreement.

     Section 10.9 Amendments. This Agreement may not be revised, discharged, altered,
amended, modified, or renewed except by a writing signed by duly authorized representatives of the
parties.

     Section 10.10 Counterparts. This Agreement may be executed simultaneously in one or
more counterparts, each of which is deemed an original and all of which together constitute one and
the same instrument.

     Section 10.11 Publicity. Neither party, without the prior written approval of the
other party, will publicly announce or disclose the terms of this Agreement, except as required by
law (subject, in each case, to giving the other party notice as promptly as possible of its
intention to make such announcement or disclosure and providing the other party an opportunity to
comment upon the content of such announcement or disclosure).

     Section 10.12 Notices. Except for notices, requests, and other communications
regarding operational matters (e.g., drafting authorizations, credit line suspension
notices) which each party currently sends, and has historically sent, to individuals at the
operating levels of the other party (“Operational Notices”), all legal notices, requests, and other
communications to any party hereto required by or permitted under this Agreement (“Notices”) must
be in writing (including facsimile transmittal) and sent to the addresses indicated below:

27

 

To GM:

GM Treasurer

767 Fifth Avenue, 14th Floor

New York, NY 10153

Facsimile: 212-418-3630

with a copy to:

Executive Director, VSSM Finance

Mail Code 482-A39-B86

100 Renaissance Center

PO BOX 100

Detroit, MI 48265

Fax: 313-667-5260

To GMAC:

President Auto Finance

Mail Code 482-B12-D2

200 Renaissance Center

PO BOX 200

Detroit, MI 48265

Facsimile: 313 665 6309

with a copy to:

General Counsel

Mail Code 482-B09-B11

200 Renaissance Center

PO BOX 200

Detroit, MI 48265

Facsimile: 313 665 6189

or at such other address to the attention of such other person as either party may designate by
notice to the other party hereto. All Notices are deemed received on the date of receipt by the
recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business
Day in the place of receipt. Otherwise, any Notice is deemed not to have been received until the
next succeeding Business Day in the place of receipt.

Operational Notices will be deemed to be given and received in any manner consistent with current
and historical practice., Notice will be deemed given and received as follows: (a) if given by
facsimile, when the facsimile is transmitted to compatible equipment in the possession of the
recipient and confirmation of complete receipt is received by the sending party during normal
business hours or on the next Business Day if not confirmed during normal business hours; (b) if
hand delivered to a party against a receipted copy, when the copy is receipted; (c) if given by a
nationally recognized and reputable overnight delivery service, the day on which the notice is
actually received by the party; or (d) if given by certified mail, return receipt requested,
postage prepaid, two Business Days after it is posted with the United States Postal Service.

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The provisions above governing the date on which a Notice is deemed to have been received by a
party means and refers to the date on which a party, and not its counsel or other recipient to
which a copy of the Notice may be sent, is deemed to have received the Notice.

If a Notice is tendered pursuant to the provisions of this Agreement and is refused by the intended
recipient, the Notice will nonetheless be deemed to have been given and is effective as of the date
provided in this Agreement.

In any event, any Notice given to a party in a manner other than that provided in this Agreement
that the party actually receives, is effective with respect to the party on receipt.

     Section 10.13 Force Majeure. Neither GM nor GMAC is liable for a delay in performance
or failure to perform any obligation under this Agreement to the extent such delay is due to causes
beyond its control and is without its fault or negligence, including natural disasters,
governmental regulations or orders, civil disturbance, war conditions, acts of terrorism or
strikes, lock-outs or other labor disputes (“Force Majeure Condition”). The performance of any
obligation suspended due to a Force Majeure Condition will resume as soon as reasonably possible as
and when the Force Majeure Condition subsides.

     Section 10.14 Relationship of Parties. Nothing contained in this Agreement will be
construed as creating a joint venture, association, partnership, franchise, or other form of
business or relationship, and nothing contained in this Agreement will be construed as making a
party liable for the debts or obligations of the other party, unless expressly provided in this
Agreement.

     Section 10.15 Effective Date. This Agreement is effective on the date provided in the
first paragraph of this Agreement.

     Section 10.16 Designated Incorporation. The parties understand and agree that the
provisions of Section 2 of the Master Services Agreement of the date herewith between GM and GMAC
and certain Subsidiaries are hereby incorporated by reference into this Agreement.

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     IN WITNESS WHEREOF, the parties hereto by their duly authorized representatives have executed
this United States Consumer Financing Service Agreement.

GENERAL MOTORS CORPORATION

By: /s/ Walter G. Borst

Name: Walter G. Borst

Its: Treasurer

GMAC LLC

By: /s/ Sanjiv Khattri

Name: Sanjiv Khattri

Its: Executive Vice President and Chief Financial

Officer

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