Document:

<PAGE>

                                                                   Exhibit 4.2

                                                                CONFORMED COPY

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

                       INVESTORS FINANCIAL SERVICES CORP.

                                       and

                     FIRST CHICAGO TRUST COMPANY OF NEW YORK

                                 as Rights Agent

                                   ----------

                                RIGHTS AGREEMENT

                         Dated as of September 25, 1995

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                                                               PAGE
<C>                                                                                                    <C>
1.  Certain Definitions.................................................................................1

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

3.  Issue of Rights Certificates........................................................................6

4.  Form of Rights Certificates.........................................................................8

5.  Countersignature and Registration...................................................................9

6.  Transfer, Split Up, Combination and
     Exchange of Rights Certificates; Mutilated,
     Destroyed, Lost or
     Stolen Rights Certificates.......................................................................10

7.  Exercise of Rights; Purchase Price; Expiration Date of Rights......................................10

8.  Cancellation and Destruction of Rights Certificates................................................12

9.  Reservation and Availability of Capital Stock......................................................13

10.  Preferred Stock Record Date.......................................................................14

11.  Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights.......................14

12.  Certificate of Adjusted Purchase Price or Number of Shares........................................24

13.  Consolidation, Merger or Sale or Transfer of  Assets or Earning Power.............................24

14.  Fractional Rights and Fractional Shares...........................................................26

15.  Rights of Action..................................................................................27

16.  Agreement of Rights Holders.......................................................................28

17.  Rights Certificate Holder Not Deemed a Stockholder................................................28

18.  Concerning the Rights Agent.......................................................................29

19.  Merger or Consolidation or Change of Name of Rights Agent.........................................29

20.  Duties of Rights Agent............................................................................30

21.  Change of Rights Agent............................................................................31

</TABLE>

<PAGE>

<TABLE>
<C>                                                                                                   <C>
22.  Issuance of New Rights Certificates...............................................................32

23.  Redemption and Termination........................................................................33

24.  Exchange..........................................................................................34

25.  Notice of Certain Events..........................................................................35

26.  Notices...........................................................................................36

27.  Supplements and Amendments........................................................................37

28.  Successors........................................................................................37

29.  Determinations and Actions by the Board of Directors, etc.........................................37

30.  Benefits of this Agreement........................................................................38

31.  Severability......................................................................................38

32.  Governing Law.....................................................................................38

33.  Counterparts......................................................................................38

34.  Descriptive Headings..............................................................................38

</TABLE>

Exhibit A --  Form of Certificate of Designation of Preferred Stock

Exhibit B --  Form of Rights Certificate

Exhibit C --  Form of Summary of Rights

<PAGE>

                                RIGHTS AGREEMENT

     RIGHTS AGREEMENT, dated as of September 25, 1995 (the "AGREEMENT"), between
INVESTORS FINANCIAL SERVICES CORP., a Delaware corporation (the "COMPANY"), and
FIRST CHICAGO TRUST COMPANY OF NEW YORK, as Rights Agent (the "RIGHTS AGENT").

                                   WITNESSETH

     WHEREAS, on August 15, 1995 (the "RIGHTS DIVIDEND DECLARATION DATE"), the
Board of Directors of the Company (the "BOARD") authorized and declared a
dividend distribution of one Right for each share of Common Stock (as
hereinafter defined) of the Company outstanding at the close of business on the
Business Day preceding the date on which the Company acquires all the issued and
outstanding capital stock of Investors Bank & Trust Company in exchange for
Common Stock, (the "RECORD DATE"), and has authorized the issuance of one Right
(as such number may hereinafter be adjusted pursuant to the provisions of
Section 11(a)(i) hereof) for each share of Common Stock of the Company issued
(whether originally issued or delivered from the Company's treasury) between the
Record Date and the Distribution Date, each Right initially representing the
right to purchase one one-hundredth of a share of Series A Junior Participating
Preferred Stock upon the terms and conditions hereinafter set forth (the
"RIGHTS");

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

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

          (a) "ACQUIRING PERSON" shall mean any Person who or which, together
with all Affiliates and Associates of such Person, shall be the Beneficial Owner
of 15% or more of the shares of Common Stock then outstanding, but shall not
include 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. Notwithstanding the foregoing, no Person shall become an
"Acquiring Person" as the result of an acquisition of Common Stock by the
Company which, by reducing the number of shares outstanding, increases the
proportionate number of shares beneficially owned by such Person to 15% or more
of the Common Stock of the Company then outstanding; PROVIDED, HOWEVER, that if
a Person shall become the Beneficial Owner of 15% or more of the Common Stock 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 Stock of the Company, then such Person shall be deemed to
be an "Acquiring Person." Notwithstanding the foregoing, if the Board, with the
consent of a majority of the Continuing 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,
and such Person divests as promptly as practicable a sufficient number of shares
of Common Stock so that such Person would no longer be an

<PAGE>

"Acquiring Person," as defined pursuant to the foregoing provisions of this
paragraph (a), then such Person shall not be deemed to be an "Acquiring Person"
for any purposes of this Agreement.

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

          (c) "ADJUSTMENT SHARES" shall have the meaning set forth in Section
11(a)(ii)(D) hereof.

          (d) "ADVERSE PERSON" shall mean any Person declared to be an Adverse
Person by the Continuing Directors upon determination that the criteria set
forth in Section 11(a)(ii)(D) hereof apply to such Person.

          (e) "ADVERSE PERSON EVENT" shall mean the determination by the
Continuing Directors (with the concurrence of the Independent Directors),
pursuant to Section 11(a)(ii)(D) hereof, that a Person is an Adverse Person.

          (f) "AFFILIATE" and "ASSOCIATE" shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under
the Securities Exchange Act of 1934, as amended and in effect on the date of
this Agreement (the "EXCHANGE ACT").

          (g) "AGREEMENT" shall mean this Rights Agreement as originally
executed or as it may from time to time be supplemented or amended pursuant to
the applicable provisions hereof.

          (h) A Person shall be deemed the "BENEFICIAL OWNER" and shall be
deemed to "beneficially own", any securities:

          (i)  which such Person or any of such Person's Affiliates or
               Associates, directly or indirectly, has the right to acquire
               (whether such right is exercisable immediately or only after the
               passage of time) pursuant to any agreement, arrangement or
               understanding, whether or not in writing, or upon the exercise of
               conversion rights, exchange rights, other rights, warrants or
               options, or otherwise; PROVIDED, HOWEVER, that a Person shall not
               be deemed the "Beneficial Owner" of, or to "beneficially own",
               (A) securities tendered pursuant to a tender offer or exchange
               offer made by such Person or any of such Person's Affiliates or
               Associates until such tendered securities are accepted for
               purchase or exchange, or (B) securities issuable upon exercise of
               Rights at any time prior to the occurrence of a Triggering Event,
               or (C) securities issuable upon exercise of Rights from and after
               the occurrence of a Triggering Event which Rights were acquired
               by such Person or any of such Person's Affiliates or Associates
               prior to the Distribution Date or pursuant to Section 3(a) or
               Section 22 hereof (the "ORIGINAL RIGHTS") or pursuant to Section
               11(a)(i) hereof in connection with an adjustment made with
               respect to any Original Rights;

                                       -2-
<PAGE>

          (ii)  which such Person or any of such Person's Affiliates or
                Associates, directly or indirectly, has the right to vote or
                dispose of or has "beneficial ownership" of (as determined
                pursuant to Rule 13d-3 of the General Rules and Regulations
                under the Exchange Act, or any comparable or successor rule),
                including pursuant to any agreement, arrangement or
                understanding, whether or not in writing; PROVIDED, HOWEVER,
                that a Person shall not be deemed the "Beneficial Owner" of,
                or to "beneficially own", any security under this
                subparagraph (ii) as a result of an agreement, arrangement or
                understanding to vote such security if such agreement,
                arrangement or understanding: (A) arises solely from a
                revocable proxy given in response to a public proxy or
                consent solicitation made pursuant to, and in accordance
                with, the applicable provisions of the General Rules and
                Regulations under the Exchange Act, and (B) is not also then
                reportable by such Person 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, for the purpose of acquiring,
                holding, voting (except pursuant to a revocable proxy as
                described in the proviso to subparagraph (ii) of this
                paragraph (h)) or disposing of any voting securities of the
                Company (a joint filing of a Schedule 13D under the Exchange
                Act or any comparable or successor report being deemed to be
                conclusive evidence of such an agreement, arrangement or
                understanding); PROVIDED, HOWEVER, that nothing in this
                paragraph (h) shall cause a Person engaged in business as an
                underwriter of securities to be the "Beneficial Owner" of, or
                to "beneficially own", any securities acquired through such
                Person's participation in good faith in a firm commitment
                underwriting until the expiration of forty days after the
                date of such acquisition.

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

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

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

                                       -3-
<PAGE>

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

          (l) "COMMON STOCK" shall mean both the common stock, $.01 par value
per share, and the Class A stock, $.01 par value per share of the Company,
provided, however, that in relation to the exercise of rights for Adjustment
Shares, a redemption pursuant to Section 23, or an exchange pursuant to Section
24, "Common Stock" shall mean only the common stock, $.01 par value, of the
Company, provided, further, that "Common Stock" when used with reference to any
Person other than the Company shall mean the capital stock of such Person with
the greatest voting power, or the equity securities or other equity interest
having power to control or direct the management, of such Person.

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

          (n) "COMPANY" shall mean the Person named as the "Company" in the
first paragraph of this Agreement until a successor corporation shall have
become such or until a Principal Party shall assume, and thereafter be liable
for, all obligations and duties of the Company hereunder, pursuant to the
applicable provisions of this Agreement, and thereafter "Company" shall mean
such successor corporation or Principal Party.

          (o) "CONTINUING DIRECTOR" shall mean (i) any member of the Board,
while such Person is a member of the Board, who is not an Acquiring Person or an
Adverse Person, or an Affiliate or Associate of such Person, or a representative
of such Person or of any such Affiliate or Associate, and was a member of the
Board on the date of this Agreement, or (ii) any Person who becomes a member of
the Board subsequent to the date of this Agreement, while such Person is a
member of the Board, who is not an Acquiring Person or an Adverse Person, or an
Affiliate or Associate of such Person, or a representative of an Acquiring
Person or an Adverse Person or of any such Affiliate or Associate, if such
Person's nomination for election or election to the Board is recommended or
approved by a majority of the Continuing Directors.

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

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

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

          (s) "EQUIVALENT PREFERRED STOCK" shall have the meaning set forth in
Section 11(b) hereof.

          (t) "EXCHANGE ACT" shall have the meaning set forth in Section 1(f)
hereof.

          (u) "EXPIRATION DATE" shall have the meaning set forth in Section 7(a)
hereof.

                                       -4-
<PAGE>

          (v) "FINAL AMENDMENT DATE" shall mean the earlier of the Distribution
Date or the occurrence of an Adverse Person Event.

          (w) "FINAL EXPIRATION DATE" shall mean the close of business on August
15, 2005.

          (x) "INDEPENDENT DIRECTORS" shall mean the Continuing Directors who
are not executive officers of the Company.

          (y) "INITIAL EXERCISE PRICE" shall be $75.00

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

          (aa) "ORIGINAL RIGHTS" shall have the meaning set forth in Section
1(h)(i) hereof.

          (bb) "PERSON" shall mean any natural person, firm, association,
corporation, partnership, trust or other entity or organization.

          (cc) "PREFERRED STOCK" shall mean the Series A Junior Participating
Preferred Stock, $.01 par value per share, of the Company having the terms set
forth in the form of certificate of designation attached hereto as EXHIBIT A.

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

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

          (ff) "RECORD DATE" shall have the meaning set forth in the preamble of
the Agreement.

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

          (hh) "RIGHTS" shall have the meaning set forth in the preamble of the
Agreement.

          (ii) "RIGHTS AGENT" shall mean the Person named as the "Rights Agent"
in the first paragraph of this Agreement until a successor Rights Agent shall
have become such pursuant to the applicable provisions hereof, and thereafter
"Rights Agent" shall mean such successor Rights Agent. If at any time there is
more than one Person appointed by the Company as Rights Agent pursuant to the
applicable provisions of this Agreement, "Rights Agent" shall mean and include
each such Person.

          (jj) "RIGHTS CERTIFICATES" shall have the meaning set forth in Section
3(a) hereof.

                                       -5-
<PAGE>

          (kk) "RIGHTS DIVIDEND DECLARATION DATE" shall have the meaning set
forth in the preamble of this Agreement.

          (ll) "SECTION 11(a)(ii) EVENT" shall mean any event described in
Section 11(a)(ii)(A), (B), (C) or (D) hereof.

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

          (nn) "SECTION 13 EVENT" shall mean any event described in clauses (x),
(y) or (z) of Section 13(a) hereof.

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

          (pp) "STOCK ACQUISITION DATE" shall mean the first date of a 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.

          (qq) "SUBSIDIARY" shall mean, with reference to any Person, including
the Company, any corporation of which an amount of voting securities sufficient
to elect at least a majority of the directors of such corporation is
beneficially owned, directly or indirectly, by such Person, or which is
otherwise controlled by such Person.

          (rr) "SUBSTITUTE CONSIDERATION" shall have the meaning set forth in
Section 11(a)(iii) hereof.

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

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

          (uu) "TRIGGERING EVENT" shall mean any Section 11(a)(ii) Event or any
Section 13 Event.

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

     Section 3. ISSUE OF RIGHTS CERTIFICATES.

          (a) Until the earliest of (i) the Close of Business on the tenth day
after the Stock Acquisition Date (or, if the tenth day after the Stock
Acquisition Date occurs before the

                                       -6-
<PAGE>

Record Date, the Close of Business on the Record Date), (ii) the Close of
Business on the tenth Business Day (or, if such tenth Business Day occurs before
the Record Date, the Close of Business on the Record Date), or such specified or
unspecified later date on or after the Record Date as may be determined by
action of a majority of the Continuing Directors, after the date that a tender
offer 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 upon consummation thereof for the maximum
number of shares that may be purchased thereunder, such Person would be the
Beneficial Owner of 15% or more of the shares of Common Stock then outstanding
or (iii) the Close of Business on the tenth Business Day after an Adverse Person
Event (the earliest of (i), (ii) and (iii) being herein referred to as the
"DISTRIBUTION DATE"), (x) the Rights will be evidenced (subject to the
provisions of paragraph (b) of this Section 3) by the certificates for the
Common Stock registered in the names of the holders of the Common Stock (which
certificates for Common Stock shall be deemed also to be certificates for
Rights) and not by separate certificates, and (y) the Rights will be
transferable only in connection with the transfer of the underlying shares of
Common Stock (including a transfer to the Company). As soon as practicable after
the Distribution Date, the Rights Agent will send by first-class, insured,
postage prepaid mail, to each record holder of the Common Stock as of the Close
of Business on the Distribution Date, at the address of such holder shown on the
records of the Company, one or more rights certificates, in the form specified
in Section 4 hereof (the "RIGHTS CERTIFICATES"), evidencing one Right for each
share of Common Stock so held, subject to adjustment as provided herein. In the
event that an adjustment in the number of Rights per share of Common Stock has
been made pursuant to Section 11(a)(i) hereof, 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 and after the Distribution Date,
the Rights will be evidenced solely by such Rights Certificates.

          (b) As promptly as practicable following the Record Date, the Company
will send to each record holder of the Common Stock as of the Close of Business
on the Record Date, a copy of a Summary of Rights, in substantially the form
attached hereto as EXHIBIT C, by either first-class, postage prepaid mail or
together with any other information then being delivered by the Company or its
representatives to such holders, at the address of such holder shown on the
records of the Company. With respect to certificates for the Common Stock
outstanding as of the Record Date, until the Distribution Date, the Rights will
be evidenced by such certificates for the Common Stock and the registered
holders of the Common Stock shall also be the registered holders of the
associated Rights. Until the earlier of the Distribution Date or the Expiration
Date (as such term is defined in Section 7 hereof), the transfer of any
certificates representing shares of Common Stock in respect of which Rights have
been issued shall also constitute the transfer of the Rights associated with
such shares of Common Stock.

          (c) Rights shall be issued in respect of all shares of Common Stock
that are issued (whether originally issued or from the Company's treasury) after
the Record Date but prior to the earlier of the Distribution Date or the
Expiration Date. Rights shall also be issued to the

                                       -7-
<PAGE>

extent provided in Section 22 in respect of all shares of Common Stock which
are issued (whether originally issued or from the Company's treasury) after
the Distribution Date and prior to the Expiration Date. Certificates
representing such shares of Common Stock in respect of which Rights are
issued pursuant to the first sentence of this Section 3(c) shall also be
deemed to be certificates for Rights, and commencing as soon as reasonably
practicable following the date hereof shall bear the following legend:

              This certificate also evidences and entitles the holder hereof to
              certain Rights as set forth in the Rights Agreement between
              Investors Financial Services Corp. (the "Company") and First
              Chicago Trust Company of New York (the "Rights Agent") dated as of
              September 25, 1995 (the "Rights Agreement"), the terms of which
              are hereby incorporated herein by reference and a copy of which is
              on file at the principal offices of the Company. 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 Company will mail to the holder
              of this certificate a copy of the Rights Agreement, as in effect
              on the date of mailing, without charge promptly after receipt of a
              written request therefor. Under certain circumstances set forth in
              the Rights Agreement, Rights issued to, or held by, any Person who
              is, was or becomes an Acquiring Person, an Adverse Person or any
              Affiliate or Associate of an Acquiring Person or an Adverse Person
              (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. The Rights shall not be
              exercisable, and shall be void so long as held, by a holder in any
              jurisdiction where the requisite qualification to the issuance to
              such holder, or the exercise by such holder, of the Rights in such
              jurisdiction shall not have been obtained or obtainable.

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 Stock represented by such certificates shall be
evidenced by such certificates alone and registered holders of Common Stock
shall also be the registered holders of the associated Rights, and the transfer
of any of such certificates shall also constitute the transfer of the Rights
associated with the Common Stock represented by such certificates.

     Section 4. FORM OF RIGHTS CERTIFICATES.

          (a) The Rights Certificates (and the forms of election to purchase and
of assignment to be printed on the reverse thereof) shall each be substantially
in the form set forth in EXHIBIT B hereto and may have such marks of
identification or designation and such legends, summaries or endorsements
printed thereon as the Company may deem appropriate and as are not inconsistent
with the provisions of this Agreement, or as may be required to comply with any
applicable law or with any rule or regulation made pursuant thereto or with any
rule or regulation of any stock exchange or trading market on which the Rights
may from time to time be listed, 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 and on their face
shall

                                       -8-
<PAGE>

entitle the holders thereof to purchase such number of one one-hundredths of a
share of Preferred Stock as shall be set forth therein at the price per share
set forth therein (such exercise price per one one-hundredth of a share
hereinafter referred to as the "PURCHASE PRICE"), but the amount and type of
securities purchasable upon the exercise of each Right and the Purchase Price
thereof 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,
an Adverse Person or any Associate or Affiliate of an Acquiring Person or an
Adverse Person, (ii) a transferee of an Acquiring Person or an Adverse Person
(or of any such Associate or Affiliate of an Acquiring Person or an Adverse
Person) who becomes a transferee after the Acquiring Person or Adverse Person
becomes such, or (iii) a transferee of an Acquiring Person or an Adverse Person
(or of any such Associate or Affiliate of an Acquiring Person or an Adverse
Person) who becomes a transferee prior to or concurrently with the Acquiring
Person or the Adverse Person becoming such and receives such Rights pursuant to
either (A) a transfer (whether or not for consideration) from the Acquiring
Person or the Adverse Person to holders of equity interests in such Acquiring
Person or Adverse Person or to any Person with whom such Acquiring Person or
Adverse Person has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (B) a transfer which a majority of the
Continuing Directors has determined is part of a plan, arrangement or
understanding that has as a primary purpose or effect avoidance of Section 7(e)
hereof, and any Rights Certificate issued pursuant to Section 6 or Section 11
hereof upon transfer, exchange, replacement or adjustment of any other Rights
Certificate referred to in this sentence, shall contain (to the extent feasible)
the following legend:

              The Rights represented by this Rights Certificate are or were
              beneficially owned by a Person who was or became an Acquiring
              Person, Adverse Person, or an Affiliate or Associate of an
              Acquiring Person or Adverse 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 Agreement.

     Section 5. COUNTERSIGNATURE AND REGISTRATION.

          (a) The Rights Certificates shall be executed on behalf of the Company
by its President or any Vice President, either manually or by facsimile
signature, and shall have affixed thereto the Company's seal or a facsimile
thereof which shall be attested by the Secretary or an Assistant Secretary of
the Company, either manually or by facsimile signature. The Rights Certificates
shall be manually countersigned by the Rights Agent and shall not be valid for
any purpose unless so 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 had not ceased to be such officer of the Company; and any Rights
Certificates may be signed on behalf of the Company by any person who, at the
actual date of the execution of such Rights Certificate,

                                       -9-
<PAGE>

shall be a proper officer of the Company to sign such Rights Certificate,
although at the date of the execution of this Rights Agreement any such person
was not such an officer.

          (b) Following the Distribution Date, the Rights Agent will keep or
cause to be kept, at its principal office or offices designated as the
appropriate place for surrender of Rights Certificates upon exercise or
transfer, 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, the Rights Certificate number 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 Section 4(b), Section 7(e) and
Section 14 hereof, at any time after the Close of Business on the Distribution
Date, and at or prior to the Close of Business on the Expiration Date, any
Rights Certificate or Certificates may be transferred, split up, combined or
exchanged for another Rights Certificate or Certificates, entitling the
registered holder to purchase a like number of one one-hundredths of a share of
Preferred Stock (or, following a Triggering Event, Common Stock, other
securities, cash or other assets, as the case may be) as the Rights Certificate
or Certificates surrendered then entitled such holder (or former holder in the
case of a transfer) to purchase. Any registered holder desiring to transfer,
split up, combine or exchange any Rights Certificate or Certificates shall make
such request in writing delivered to the Rights Agent, and shall surrender the
Rights Certificate or 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 or Certificates until the registered holder shall have completed and
signed the certificate contained in the form of assignment set forth on the
reverse side of each such Rights Certificate and shall have provided such
additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) or Affiliates or Associates thereof as the Company shall
reasonably request. Thereupon the Rights Agent shall, subject to Section 4(b),
Section 7(e) and Section 14 hereof, countersign and deliver to the Person
entitled thereto a Rights Certificate or Certificates, as the case may be, as so
requested. The Company may require payment of a sum sufficient to cover any tax
or governmental charge that may be imposed in connection with any transfer,
split up, combination or exchange of Rights Certificates.

          (b) Upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation of
a Rights Certificate, and, in case of loss, theft or destruction, of indemnity
or security reasonably satisfactory to them, and 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 execute and deliver a new Rights Certificate of like
tenor to the Rights Agent for countersignature and delivery to the registered
owner in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated.

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

                                      -10-
<PAGE>

          (a) Subject to Section 7(e) hereof, the registered holder of any
Rights Certificate may exercise the Rights evidenced thereby (except as
otherwise provided herein including, without limitation, the restrictions set
forth in Section 9(c), Section 11(a)(iii) and Section 23(a) hereof) in whole or
in part at any time after the Distribution Date upon surrender of the Rights
Certificate, with the form of election to purchase set forth on the reverse side
thereof and the certificate contained therein completed and duly executed, to
the Rights Agent at the office of the Rights Agent designated for such purpose,
together with payment of the aggregate Purchase Price with respect to the total
number of one one-hundredths of a share of Preferred Stock (or other securities,
cash or other assets, as the case may be) as to which such surrendered Rights
are then exercisable, at or prior to the earlier of (i) the Final Expiration
Date, (ii) the time at which the Rights are redeemed as provided in Section 23
hereof, (iii) the time at which the Rights expire pursuant to Section 13(d)
hereof or (iv) the time at which such Rights are exchanged as provided in
Section 24 hereof (the earliest of (i), (ii), (iii) or (iv) being herein
referred to as the "EXPIRATION DATE").

          (b) The Purchase Price for each one one-hundredth of a share of
Preferred Stock pursuant to the exercise of a Right shall initially be the
Initial Exercise Price, and shall be subject to adjustment from time to time as
provided in Sections 11 and 13(a) hereof and shall be payable in accordance with
paragraph (c) below.

          (c) Upon receipt of a Rights Certificate representing exercisable
Rights, with the form of election to purchase set forth on the reverse side
thereof and the certificate contained therein completed and duly executed,
accompanied by payment, with respect to each Right so exercised, of the Purchase
Price per one one-hundredth of a share of Preferred Stock (or other securities,
cash or other assets, as the case may be) to be purchased as set forth below and
an amount equal to any applicable transfer tax, the Rights Agent shall, subject
to Section 20(k) hereof, promptly (i) requisition from any transfer agent of the
shares of Preferred Stock (or make available, if the Rights Agent is the
transfer agent for such shares) certificates for the total number of one
one-hundredths of a share of Preferred Stock to be purchased and the Company
hereby irrevocably authorizes its transfer agent to comply with all such
requests, (ii) requisition from the Company the amount of cash, if any, to be
paid in lieu of fractional shares in accordance with Section 14 hereof, (iii)
after receipt of such certificates, 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) after receipt
thereof, deliver such cash, if any, to or upon the order of the registered
holder of such Rights Certificate. The payment of the Purchase Price (as such
amount may be reduced pursuant to Section 11(a)(iii) hereof) shall be made in
cash or by certified check, cashier's check or bank draft payable to the order
of the Company. In the event that the Company is obligated to issue other
securities (including Common Stock) of the Company, pay cash or distribute other
property pursuant to Section 11(a) hereof, the Company will make all
arrangements necessary so that such other securities, cash or other property are
available for distribution by the Rights Agent, if and when appropriate. The
Company reserves the right to require prior to the occurrence of a Triggering
Event that, upon any exercise of Rights, such number of Rights be exercised so
that only whole shares of Common Stock would be issued.

                                      -11-
<PAGE>

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

          (e) Notwithstanding anything in this Agreement to the contrary, from
and after the first occurrence of an event described in Section 11(a)(ii)(A) or
(C) and from and after the Close of Business on the tenth day after the
occurrence of an event described in Section 11(a)(ii)(B) or (D), any Rights
beneficially owned by (i) an Acquiring Person, an Adverse Person or an Associate
or Affiliate of an Acquiring Person or Adverse Person, which a majority of the
Continuing Directors, in their sole discretion, determines is or was involved in
or caused or facilitated, directly or indirectly (including through any change
in the Board), such Section 11(a)(ii) Event, (ii) a transferee of any such
Acquiring Person or Adverse Person (or of any such Associate or Affiliate of an
Acquiring Person or an Adverse Person) who becomes a transferee after such
Acquiring Person or Adverse Person becomes such, or (iii) a transferee of any
such Acquiring Person or Adverse Person (or of any such Associate or Affiliate
of an Acquiring Person or an Adverse Person) who becomes a transferee prior to
or concurrently with such Acquiring Person or Adverse Person becoming such and
receives such Rights pursuant to either (A) a transfer (whether or not for
consideration) from such Acquiring Person or Adverse Person to holders of equity
interests in such Acquiring Person or Adverse Person or to any Person with whom
such Acquiring Person or Adverse Person has any continuing agreement,
arrangement or understanding regarding the transferred Rights or (B) a transfer
which a majority of the Continuing 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), 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 other Person as
a result of its failure to make any determinations with respect to an Acquiring
Person or Adverse Person or any of their 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 have
(i) 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 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 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

                                      -12-
<PAGE>

of this Agreement. The Company shall deliver to the Rights Agent for
cancellation and retirement, and the Rights Agent shall so cancel and retire,
any other 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 CAPITAL STOCK.

          (a) The Company covenants and agrees that it will cause to be reserved
and kept available out of its authorized and unissued shares of Preferred Stock
(and, following the occurrence of a Triggering Event, out of its authorized and
unissued shares of Common Stock or other securities or out of its authorized and
issued shares held in its treasury), the number of shares of Preferred Stock
(and, following the occurrence of a Triggering Event, Common Stock or other
securities) that, as provided in this Agreement including Section 11(a)(iii)
hereof, will be sufficient to permit the exercise in full of all outstanding
Rights.

          (b) So long as the shares of Preferred Stock (and, following the
occurrence of a Triggering Event, Common Stock or other securities) issuable and
deliverable upon the exercise of the Rights may be listed on any national
securities exchange, the Company shall use its best efforts to cause all shares
reserved for such issuance to be listed on such exchange upon official notice of
issuance upon such exercise.

          (c) The Company shall use its best efforts to (i) file, as soon as
practicable following the earliest date after the first occurrence of a
Triggering Event in which the consideration to be delivered by the Company upon
exercise of the Rights has been determined in accordance with this Agreement, a
registration statement under the Act, with respect to the Common Stock or other
securities purchasable upon exercise of the Rights on an appropriate form, (ii)
cause such registration statement to become effective as soon as practicable
after such filing, and (iii) cause such registration statement to remain
effective (with a prospectus at all times meeting the requirements of the Act)
until the earlier of (A) the date as of which the Rights are no longer
exercisable for such securities, and (B) the Expiration Date. The Company will
also take such action as may be appropriate under, or to ensure compliance with,
the securities or "blue sky" laws of the various states in connection with the
exercisability of the Rights. The Company may temporarily suspend, for a period
of time not to exceed ninety (90) days after the date set forth in clause (i) of
the first sentence of this Section 9(c), the exercisability of the Rights in
order to prepare and file such registration statement and permit it to become
effective. In addition, if the Company shall determine that a registration
statement is required following the Distribution Date, the Company may
temporarily suspend the exercisability of the Rights until such time as a
registration statement has been declared effective. Upon any suspension of the
exercisability of the Rights referred to in this Section 9(c), the Company shall
issue a public announcement stating that the exercisability of the Rights has
been temporarily suspended, as well as a public announcement at such time as the
suspension is no longer in effect. Notwithstanding any provision of this
Agreement to the contrary, the Rights shall not be exercisable and shall be void
so long as held by a holder in any jurisdiction where the requisite
qualification to the issuance to such holder, or the exercise by such holder, of
the Rights in such jurisdiction shall not have been

                                      -13-
<PAGE>

obtained or be obtainable, the exercise thereof shall not be permitted under
applicable law or a registration statement shall not have been declared
effective.

          (d) The Company covenants and agrees that it will take all such action
as may be necessary to ensure that all one one-hundredths of a share of
Preferred Stock (and, following the occurrence of a Triggering Event, Common
Stock or other securities) delivered upon exercise of Rights shall, at the time
of delivery of the certificates for such shares (subject to payment of the
Purchase Price), be duly and validly authorized and issued and fully paid and
nonassessable.

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

     Section 10. PREFERRED STOCK RECORD DATE. Each Person in whose name any
certificate for a number of one one-hundredths of a share of Preferred Stock (or
Common Stock or other securities, as the case may be) is issued upon the
exercise of Rights shall for all purposes be deemed to have become the holder of
record of such Preferred Stock (or Common Stock or other securities, as the case
may be) 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 Purchase Price (and all applicable transfer taxes) was made;
PROVIDED, HOWEVER, that if the date of such surrender and payment is a date upon
which the Preferred Stock (or Common Stock or other securities, as the case may
be) transfer books of the Company are closed, such Person shall be deemed to
have become the record holder of such shares on, and such certificate shall be
dated, the next succeeding Business Day on which the Preferred Stock (or other
securities, as the case may be) transfer books of the Company are open. Prior to
the exercise of the Rights evidenced thereby, the holder of a Rights Certificate
shall not be entitled to any rights of a stockholder of the Company with respect
to shares for which the Rights shall be exercisable, including, without
limitation, the right to vote, to receive dividends or other distributions or to
exercise any preemptive rights, and shall not be entitled to receive any notice
of any proceedings of the Company, except as provided herein.

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

                                      -14-
<PAGE>

          (a)(i) In the event the Company shall at any time after the date of
this Agreement (A) declare a dividend on the Preferred Stock payable in shares
of Preferred Stock, (B) subdivide the outstanding Preferred Stock, (C) combine
the outstanding Preferred Stock into a smaller number of shares, or (D) issue
any shares of its capital stock in a reclassification of the Preferred Stock
(including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing or surviving corporation), except
as otherwise provided in this Section 11(a) and Section 7(e) hereof, the
Purchase Price in effect at the time of the record date for such dividend or of
the effective date of such subdivision, combination or reclassification, and the
number and kind of shares of Preferred Stock or capital stock, as the case may
be, issuable on such date, shall be proportionately adjusted so that if a holder
of Rights after such time were to exercise that number of Rights (or fraction
thereof) which would result in the aggregate amount of the Purchase Price
payable upon such exercise (at the Purchase Price then in effect) being equal to
the amount of the Purchase Price payable prior to such time upon exercise of a
Right, he would be entitled to receive the aggregate number and kind of shares
of Preferred Stock or other capital stock, as the case may be, which, if a Right
had been exercised immediately prior to such time and at a time when the
Preferred Stock transfer books (or other capital stock transfer books, as the
case may be) of the Company were open, he would have owned upon such exercise
and been entitled to receive by virtue of such dividend, subdivision,
combination or reclassification. If an event occurs that would require an
adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof, the
adjustment provided for in this Section 11(a)(i) shall be in addition to, and
shall be made prior to, any adjustment required pursuant to Section 11(a)(ii)
hereof.

          (ii) In the event:

               (A) any Acquiring Person or any Associate or Affiliate of any
Acquiring Person, at any time after the date of this Agreement, directly or
indirectly, (1) shall merge into the Company or otherwise combine with the
Company and the Company shall be the continuing or surviving corporation of such
merger or combination and the Common Stock of the Company shall remain
outstanding and unchanged, (2) shall merge or otherwise combine with any
Subsidiary of the Company, (3) shall, in one transaction or a series of
transactions, transfer any assets to the Company or to any of its Subsidiaries
in exchange (in whole or in part) for shares of Common Stock, for shares of
other equity securities of the Company or any Subsidiary of the Company, or for
securities exercisable for or convertible into shares of equity securities of
the Company or any Subsidiary of the Company (Common Stock or otherwise) or
otherwise obtain from the Company, with or without consideration, any additional
shares of equity securities of the Company or securities exercisable for or
convertible into shares of such equity securities of the Company (other than
pursuant to a pro rata distribution to all holders of Common Stock or upon the
exercise of a convertible security of the Company or any Subsidiary of the
Company in accordance with its terms), (4) shall sell, purchase, lease,
exchange, mortgage, pledge, transfer or otherwise acquire or dispose of, in one
transaction or a series of transactions, to, from or with (as the case may be)
the Company or any of its Subsidiaries, assets on terms and conditions less
favorable to the Company than the Company would be able to obtain in arm's
length negotiations with an unaffiliated third party, other than pursuant to a
transaction set forth in Section 13(a) hereof, (5) shall sell, purchase, lease,
exchange, mortgage, pledge, transfer or otherwise acquire or dispose of in one
transaction or a series of transactions, to, from or with (as the case may be)
the Company or any of its Subsidiaries assets having an aggregate fair market
value of more than

                                      -15-
<PAGE>

$1,000,000, other than pursuant to a transaction set forth in Section 13(a)
hereof and other than pursuant to a transaction or series of transactions that
have been approved by a majority of the Continuing Directors, (6) shall receive
any compensation from the Company or any of the Company's Subsidiaries other
than compensation for full-time employment as a regular employee at rates in
accordance with the Company's (or its Subsidiaries') past practices, or (7)
shall receive the benefit, directly or indirectly (except proportionately as a
stockholder and except if resulting from a requirement of law or governmental
regulation), of any loans, advances, guarantees, pledges or other financial
assistance or any tax credits or other tax advantages provided by the Company or
any of its Subsidiaries, or

               (B) 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), alone or together with
any Affiliates and Associates of such Person, shall, at any time after the
Rights Dividend Declaration Date, become the Beneficial Owner of 20% or more of
the shares of Common Stock then outstanding, unless (1) the event causing the
20% threshold to be crossed is a transaction set forth in Section 13(a) hereof
or (2) is an acquisition of shares of Common Stock pursuant to a tender offer or
an exchange offer for all outstanding shares of Common Stock at a price and on
terms determined by a majority of the Independent Directors, after receiving
advice from one or more investment banking firms, to be (a) at a price that is
fair to stockholders (taking into account all factors which such members of the
Board deem relevant including, without limitation, prices which could reasonably
be achieved if the Company or its assets were sold on an orderly basis designed
to realize maximum value) and (b) otherwise in the best interest of the Company
and its stockholders

               (C) during such time as there is an Acquiring Person, there shall
be any reclassification of securities (including any reverse stock split), or
recapitalization of the Company, or any merger or consolidation of the Company
with any of its Subsidiaries or any other transaction or series of transactions
involving the Company or any of its Subsidiaries (whether or not with or into or
otherwise involving an Acquiring Person), other than a transaction or
transactions to which the provisions of Section 13(a) hereof apply (whether or
not with or into or otherwise involving an Acquiring Person), which has the
effect, directly or indirectly, of increasing by more than 1% the proportionate
share of the outstanding shares of any class of equity securities of the Company
or any of its Subsidiaries which is directly or indirectly beneficially owned by
any Acquiring Person or any Associate or Affiliate of any Acquiring Person, or

               (D) a majority of the Continuing Directors shall declare any
Person to be an Adverse Person, upon a determination that such Person, alone or
together with its Affiliates and Associates, has, at any time after the Rights
Dividend Declaration Date, become the Beneficial Owner of an amount of Common
Stock which a majority of Continuing Directors determine to be substantial
(which amount shall in no event be less than 10% of the shares of Common Stock
then outstanding) and a majority of the Continuing Directors determines (with
the concurrence of a majority of the Independent Directors), after reasonable
inquiry and investigation, which may include a review of the public record
regarding such Person and any information such directors may request from such
Person and consultation with such persons as such directors shall deem

                                      -16-
<PAGE>

appropriate, that (1) such Beneficial Ownership by such Person is intended to
cause the Company to repurchase the Common Stock beneficially owned by such
Person or to cause pressure on the Company to take action or enter into a
transaction or series of transactions intended to provide such Person with
short-term financial gain under circumstances where such directors determine
that the best long-term interests of the Company and its stockholders would not
be served by taking such action or entering into such transactions or series of
transactions at that time or (2) such Beneficial Ownership is causing or is
reasonably likely to cause a material adverse impact (including, but not limited
to, impairment of relationships with customers, impairment of the Company's
ability to maintain its competitive position or impairment of the Company's
business reputation or ability to deal with government agencies) on the business
or prospects of the Company,

then, immediately upon the occurrence of any event described in Section
11(a)(ii)(A) or (C) hereof, and upon the Close of Business ten (10) days after
the occurrence of any event described in Section 11(a)(ii)(B) or (D) hereof,
proper provision shall be made so that each holder of a Right (except as
provided below and in Section 7(e) hereof) shall thereafter have the right to
receive, upon exercise thereof at the then current Purchase Price in accordance
with the terms of this Agreement, in lieu of a number of one one-hundredths of a
share of Preferred Stock, such number of shares of Common Stock of the Company
as shall equal the result obtained by (x) multiplying the then current Purchase
Price by the then number of one one-hundredths of a share of Preferred Stock for
which a Right was or would have been exercisable immediately prior to the first
occurrence of a Section 11(a)(ii) Event, whether or not such Right was then
exercisable, and (y) dividing that product (which, following such first
occurrence, shall thereafter be referred to as the "PURCHASE PRICE" for each
Right and for all purposes of this Agreement) by 50% of the Current Market Price
per share of Common Stock (determined pursuant to Section 11(d) hereof) on the
date of such first occurrence (such number of shares being referred to herein as
the "ADJUSTMENT SHARES").

          (iii)In the event that the number of shares of Common Stock which are
               authorized by the Company's Certificate of Incorporation, as
               amended as of the date of the most recent occurrence of a Section
               11(a)(ii) Event, 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 in
               accordance with the foregoing subparagraph (ii) of this Section
               11(a), the Company shall (A) determine the value of the
               Adjustment Shares issuable upon the exercise of a Right (the
               "CURRENT VALUE"), and (B) with respect to each Right (subject to
               Section 7(e) hereof), make adequate provision to substitute, upon
               the exercise of a Right and payment of the applicable Purchase
               Price, (1) cash, (2) a reduction in the Purchase Price, (3)
               Common Stock or other equity securities of the Company
               (including, without limitation, shares, or units of shares, of
               preferred stock which the Board has deemed to have the same value
               as shares of Common Stock (such shares of preferred stock being
               referred to herein as "COMMON STOCK EQUIVALENTS")), (4) debt
               securities of the Company, (5) other assets, or (6) any
               combination of the foregoing, having an aggregate value equal to
               the Current Value, as adjusted (less the amount of any reduction
               in the Purchase Price), where such aggregate value has been
               determined by the Board based upon the advice of a nationally
               recognized investment banking firm selected by the Board;
               PROVIDED, HOWEVER, if the Company shall not have made adequate
               provision to deliver value pursuant to clause (B) above within
               thirty (30) days following the later of (x) the first occurrence
               of a

                                      -17-
<PAGE>

               Section 11(a)(ii) Event and (y) the first 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 Purchase Price, shares of
               Common Stock (to the extent available) and then, if necessary,
               cash, which shares or cash have an aggregate value equal to the
               Spread. For purposes of the preceding sentence, the term "SPREAD"
               shall mean the excess of (i) the Current Value over (ii) the
               Purchase Price. If the number of shares of Common Stock that are
               authorized by the Company's Certificate of Incorporation, as
               amended as of the date of the most recent occurrence of a Section
               11(a)(ii) Event, 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 any Rights and the
               Board with the consent of a majority of the Continuing Directors
               determines in good faith that it is likely that sufficient
               additional shares of Common Stock could be authorized for
               issuance upon exercise in full of the Rights, the thirty (30) day
               period set forth above may be extended to the extent necessary,
               but not more than ninety (90) days after the Section 11(a)(ii)
               Trigger Date, in order that the Company may seek stockholder
               approval for the authorization of such additional shares (such
               thirty (30) day period, as it may be extended, shall be referred
               to as the "SUBSTITUTION PERIOD"). To the extent that the Company
               determines that some action need be taken pursuant to the
               preceding provisions 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 or to decide the appropriate form of
               distribution to be made pursuant to such provisions and to
               determine the value thereof. In the event of any such suspension,
               the Company shall issue a public announcement stating that the
               exercisability of the Rights has been temporarily suspended, as
               well as a public announcement at such time as the suspension is
               no longer in effect. For purposes of this Section 11(a)(iii), the
               value of each Adjustment Share shall be the Current Market Price
               per share of the Common Stock (as determined pursuant to Section
               11(d) hereof) on the Section 11(a)(ii) Trigger Date and the per
               share or per unit value of any Common Stock Equivalent shall be
               deemed to equal the Current Market Price per share of the Common
               Stock on such date.

          (b) In case the Company shall fix a record date for the issuance of
rights (other than the Rights), options or warrants to all holders of Preferred
Stock entitling them to subscribe for or purchase (for a period expiring within
forty-five (45) calendar days after such record date) Preferred Stock, shares
having the same rights, privileges and preferences as the shares of Preferred
Stock ("EQUIVALENT PREFERRED STOCK") or securities convertible into Preferred
Stock or Equivalent Preferred Stock at a price per share of Preferred Stock or
per share of Equivalent Preferred Stock (or having a conversion price per share,
if a security convertible into Preferred Stock or Equivalent Preferred Stock)
less than the Current Market Price per share of Preferred Stock (as determined
pursuant to Section 11(d) hereof) on such record date, the Purchase Price to be
in effect after such record date shall be determined by multiplying the Purchase
Price in effect immediately prior to such record date by a fraction, the
numerator of which shall be the number of shares of Preferred Stock outstanding
on such record date, plus the number of shares of Preferred Stock which the
aggregate offering price of the total number of shares of Preferred Stock or
Equivalent Preferred Stock (or the aggregate initial conversion price of the
convertible securities so to be offered) would purchase at such Current Market
Price, and the denominator of which

                                      -18-
<PAGE>

shall be the number of shares of Preferred Stock outstanding on such record
date, plus the number of additional shares of Preferred Stock or Equivalent
Preferred Stock to be offered for subscription or purchase (or into which the
convertible securities so to be offered are initially convertible). In case such
subscription price may be paid by delivery of consideration part or all of which
may be in a form other than cash, the value of such noncash consideration shall
be as determined in good faith by the Board, whose determination shall be
described in a statement filed with the Rights Agent and shall be binding on the
Rights Agent and the holders of the Rights. Shares of Preferred Stock owned by
or held for the account of the Company shall not be deemed outstanding for the
purpose of any such computation. Such adjustment shall be made successively
whenever such a record date is fixed, and in the event that such rights, options
or warrants are not so issued, the Purchase Price shall be adjusted to be the
Purchase Price which would then be in effect if such record date had not been
fixed.

          (c) In case the Company shall fix a record date for a distribution to
all holders of Preferred Stock (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, cash (other than a
regular quarterly or other periodic cash dividend out of the earnings or
retained earnings of the Company), assets (other than a dividend payable in
Preferred Stock, but including any dividend payable in stock other than
Preferred Stock) or subscription rights or warrants (excluding those referred to
in Section 11(b) hereof), the Purchase Price to be in effect after such record
date shall be determined by multiplying the Purchase Price in effect immediately
prior to such record date by a fraction, the numerator of which shall be the
Current Market Price per share of Preferred Stock (as determined pursuant to
Section 11(d) hereof) on such record date, less the fair market value (as
determined in good faith by the Board whose determination shall be described in
a statement filed with the Rights Agent and shall be binding on the Rights
Agent) of the portion of the cash, assets or evidences of indebtedness so to be
distributed or of such subscription rights or warrants applicable to a share of
Preferred Stock and the denominator of which shall be such Current Market Price
per share of Preferred Stock (as determined pursuant to Section 11(d) hereof).
Such adjustments shall be made successively whenever such a record date is
fixed, and in the event that such distribution is not so made, the Purchase
Price shall be adjusted to be the Purchase Price which would have been in effect
if such record date had not been fixed.

          (d) (i) For the purpose of any computation hereunder, other than
computations made pursuant to Section 11(a)(iii) hereof, the Current Market
Price per share of Common Stock on any date shall be deemed to be the average of
the daily closing prices per share of such Common Stock for the thirty (30)
consecutive Trading Days immediately prior to such date, and for the purposes of
computations made pursuant to Section 11(a)(iii) hereof, the Current Market
Price per share of Common Stock on any date shall be deemed to be the average of
the daily closing prices per share of such Common Stock for the ten (10)
consecutive Trading Days immediately following such date; PROVIDED, HOWEVER,
that in the event that the Current Market Price per share of the Common Stock is
determined during a period following the announcement by the issuer of such
Common Stock of (A) any dividend or distribution on such Common Stock payable in
shares of such Common Stock or securities convertible into shares of such Common
Stock (other than Rights), or (B) any subdivision, combination or
reclassification of such Common Stock, and prior to the expiration of the
requisite thirty (30) Trading Day or ten (10)

                                      -19-
<PAGE>

Trading Day period, as set forth above, 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 Market Price shall
be properly adjusted to take into account ex-dividend trading. 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 on the principal
national securities exchange on which the shares of Common Stock are listed or
admitted to trading or, if the shares of Common Stock are not listed or admitted
to trading on any national securities exchange, the last quoted price or, if not
so quoted, the average of the high bid and low asked prices in the
over-the-counter market, as reported by Nasdaq or such other system then in use,
or, if on any such date the shares of Common Stock are not quoted by any such
organization, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in the Common Stock selected by the
Board. If on any such date no market maker is making a market in the Common
Stock, the fair value of such shares on such date as determined in good faith by
the Board shall be used. The term "TRADING DAY" shall mean a day on which the
principal national securities exchange on which the shares of Common Stock are
listed or admitted to trading is open for the transaction of business or, if the
shares of Common Stock are not listed or admitted to trading on any national
securities exchange, a Business Day. If the Common Stock is not publicly held or
not so listed or traded, Current Market Price per share shall mean the fair
value per share as determined in good faith by the Board whose determination
shall be described in a statement filed with the Rights Agent and shall be
conclusive for all purposes.

          (ii)  For the purpose of any computation hereunder, the Current
                Market Price per share of Preferred Stock shall be determined
                in the same manner as set forth above for the Common Stock in
                clause (i) of this Section 11(d) (other than the last
                sentence thereof). If the Current Market Price per share of
                Preferred Stock cannot be determined in the manner provided
                above or if the Preferred Stock is not publicly held or
                listed or traded in a manner described in clause (i) of this
                Section 11(d), the Current Market Price per share of
                Preferred Stock shall be conclusively deemed to be an amount
                equal to 100 (as such number may be appropriately adjusted
                for such events as stock splits, stock dividends and
                recapitalizations with respect to the Common Stock occurring
                after the date of this Agreement) multiplied by the Current
                Market Price per share of the Common Stock. If neither the
                Common Stock nor the Preferred Stock is publicly held or so
                listed or traded, Current Market Price per share of the
                Preferred Stock shall mean the fair value per share as
                determined in good faith by the Board, whose determination
                shall be described in a statement filed with the Rights Agent
                and shall be conclusive for all purposes. For all purposes of
                this Agreement, the Current Market Price of one one-hundredth
                of a share of Preferred Stock shall be equal to the Current
                Market Price of one share of Preferred Stock divided by 100.

          (iii) For the purpose of any computation hereunder, the value of
                any securities or assets other than Common Stock or Preferred
                Stock shall be the fair value as determined in good faith by
                the Board, or, if at the time of such determination there is
                an Acquiring Person, by a majority of the Continuing
                Directors then in office, or, if there are no Continuing
                Directors, by a nationally recognized investment banking firm
                selected by the Board, which determination shall be described
                in a statement filed with the Rights Agent and shall be
                conclusive for all purposes.

                                      -20-
<PAGE>

          (e) Anything herein to the contrary notwithstanding, no adjustment in
the Purchase Price shall be required unless such adjustment would require an
increase or decrease of at least one percent (1%) in the Purchase Price;
PROVIDED, HOWEVER, that any adjustments which by reason of this Section 11(e)
are not required to be made shall be carried forward and taken into account in
any subsequent adjustment. All calculations under this Section 11 shall be made
to the nearest cent or to the nearest ten-thousandth of a share of Common Stock
or other share or one-millionth of a share of Preferred Stock, as the case may
be. Notwithstanding the first sentence of this Section 11(e), any adjustment
required by this Section 11 shall be made no later than the earlier of (i) three
(3) years from the date of the transaction which mandates such adjustment, or
(ii) the Expiration Date.

          (f) If as a result of an adjustment made pursuant to Section 11(a)(ii)
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
Stock, thereafter the number of such other shares so receivable upon exercise of
any Right and the Purchase 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 Stock contained in Sections 11(a), (b),
(c), (e), (g), (h), (i), (j), (k) and (m) hereof, and the provisions of Sections
7, 9, 10, 13 and 14 hereof with respect to the Preferred Stock shall apply on
like terms to any such other shares.

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

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

          (i) The Company may elect on or after the date of any adjustment of
the Purchase Price to adjust the number of Rights, in lieu of any adjustment in
the number of shares of Preferred Stock purchasable upon the exercise of a
Right. Each of the Rights outstanding after the adjustment in the number of
Rights shall be exercisable for the number of one one-hundredths of a share of
Preferred Stock for which a Right was exercisable immediately prior to such
adjustment. Each Right held of record prior to such adjustment of the number of
Rights shall become that number of Rights (calculated to the nearest
one-ten-thousandth) obtained by dividing the Purchase Price in effect
immediately prior to adjustment of the Purchase Price by the Purchase Price in
effect immediately after adjustment of the Purchase Price. The Company shall
make a public

                                      -21-
<PAGE>

announcement of its election to adjust the number of Rights, indicating the
record date for the adjustment, and, if known at the time, the amount of the
adjustment to be made. This record date may be the date on which the Purchase
Price is adjusted or any day thereafter, but, if the 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(i), 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 Purchase 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.

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

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

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

          (m) Anything in this Section 11 to the contrary notwithstanding, the
Company shall be entitled to make such reductions in the Purchase Price, in
addition to those adjustments expressly required by this Section 11, as and to
the extent that in their good faith judgment the Board shall determine to be
advisable in order that any (i) consolidation or subdivision of the Preferred
Stock, (ii) issuance wholly for cash of any shares of Preferred Stock at less
than the Current Market Price, (iii) issuance wholly for cash of shares of
Preferred Stock or securities

                                      -22-
<PAGE>

which by their terms are convertible into or exchangeable for shares of
Preferred Stock, (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 Stock shall not be taxable to such stockholders.

          (n) The Company covenants and agrees that it shall not, at any time
after the Distribution Date, (i) consolidate with any other Person (other than a
Subsidiary of the Company in a transaction that complies with Section 11(o)
hereof), (ii) merge with or into any other Person (other than a Subsidiary of
the Company in a transaction which complies with Section 11(o) hereof), or (iii)
sell or transfer (or permit any Subsidiary to sell or transfer), in one
transaction, or a series of related transactions, assets or earning power
aggregating more than 50% of the assets or earning power of the Company and its
Subsidiaries (taken as a whole) to any other Person or Persons (other than the
Company or any of its Subsidiaries in one or more transactions each of which
complies with Section 11(o) hereof), if (x) at the time of or immediately after
such consolidation, merger or sale there are any rights, warrants or other
instruments or securities outstanding or agreements in effect that would
substantially diminish or otherwise eliminate the benefits intended to be
afforded by the Rights or (y) prior to, simultaneously with or immediately after
such consolidation, merger or sale, the stockholders of the Person who
constitutes, or would constitute, the "PRINCIPAL PARTY" for purposes of Section
13(a) hereof shall have received a distribution of Rights previously owned by
such Person or any of its Affiliates and Associates.

          (o) The Company covenants and agrees that, after the Distribution
Date, it will not, except as permitted by Section 23 or Section 27 hereof, take
(or permit any Subsidiary to take) 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.

          (p) Anything in this Agreement to the contrary notwithstanding, in the
event that the Company shall at any time after the Rights Dividend Declaration
Date and prior to the Distribution Date (i) declare a dividend on the
outstanding shares of Common Stock payable in shares of Common Stock, (ii)
subdivide the outstanding shares of Common Stock, or (iii) combine the
outstanding shares of Common Stock into a smaller number of shares, the number
of Rights associated with each share of Common Stock then outstanding, or issued
or delivered thereafter but prior to the Distribution Date, shall be
proportionately adjusted so that the number of Rights thereafter associated with
each share of Common Stock following any such event shall equal the result
obtained by multiplying the number of Rights associated with each share of
Common Stock immediately prior to such event by a fraction the numerator of
which shall be the total number of shares of Common Stock outstanding
immediately prior to the occurrence of the event and the denominator of which
shall be the total number of shares of Common Stock outstanding immediately
following the occurrence of such event.

          (q) The failure by the Continuing Directors to declare (or the
Independent Directors to concur therewith) a Person to be an Adverse Person
following such Person becoming the Beneficial Owner of 10% or more of the
outstanding Common Stock shall not imply that such Person is not an Adverse
Person or limit such directors' right at any time in the future to declare such
Person to be an Adverse Person.

                                      -23-
<PAGE>

     Section 12. CERTIFICATE OF ADJUSTED PURCHASE PRICE OR NUMBER OF SHARES.
Whenever an adjustment is made as provided in Section 11 and Section 13 hereof,
the Company shall (a) promptly prepare a certificate setting forth such
adjustment and a brief statement of the facts accounting for such adjustment,
(b) promptly file with the Rights Agent, and with each transfer agent for the
Preferred Stock and the Common Stock, a copy of such certificate, and (c) mail a
brief summary thereof to each holder of a Rights Certificate (or, if prior to
the Distribution Date, to each holder of a certificate representing shares of
Common Stock) in accordance with Section 26 hereof. The Rights Agent shall be
fully protected in relying on any such certificate and on any adjustment therein
contained.

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

          (a) In the event that, following the Stock Acquisition Date, directly
or indirectly, (x) the Company shall consolidate with, or merge with and into,
any other Person (other than a Subsidiary of the Company in a transaction that
complies with Section 11(o) hereof), and the Company shall not be the continuing
or surviving corporation of such consolidation or merger, (y) any Person (other
than a Subsidiary of the Company in a transaction that complies with Section
11(o) hereof) shall consolidate with, or merge with or into, the Company, and
the Company shall be the continuing or surviving corporation of such
consolidation or merger and, in connection with such consolidation or merger,
all or part of the outstanding shares of Common Stock shall be changed into or
exchanged for stock or other securities of any other Person or cash or any other
property, or (z) the Company shall sell or otherwise transfer (or one or more of
its Subsidiaries shall sell or otherwise transfer), in one transaction or a
series of related transactions, assets or earning power aggregating more than
50% of the assets or earning power of the Company and its Subsidiaries (taken as
a whole) to any Person or Persons (other than the Company or any Subsidiary of
the Company in one or more transactions each of which complies with Section
11(o) hereof), then, and in each such case and except as contemplated in Section
13(d) hereof, proper provision shall be made so that: (i) 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 the then current Purchase Price
in accordance with the terms of this Agreement, such number of validly
authorized and issued, fully paid, nonassessable and freely tradeable shares of
Common Stock of the Principal Party (as such term is hereinafter defined), not
subject to any liens, encumbrances, rights of first refusal or other adverse
claims, as shall be equal to the result obtained by (1) multiplying the then
current Purchase Price by the number of one one-hundredths of a share of
Preferred Stock for which a Right was exercisable immediately prior to the first
occurrence of a Section 13 Event (or, if a Section 11(a)(ii) Event has occurred
prior to the first occurrence of a Section 13 Event, multiplying the number of
such one one-hundredths of a share for which a Right was exercisable immediately
prior to the first occurrence of a Section 11(a)(ii) Event by the Purchase Price
in effect immediately prior to such first occurrence), and dividing that product
(which, following the first occurrence of a Section 13 Event, shall be referred
to as the "PURCHASE PRICE" for each Right and for all purposes of this
Agreement) by (2) 50% of the Current Market Price (determined pursuant to
Section 11(d)(i) hereof) per share of the Common Stock of such Principal Party
on the date of consummation of such Section 13 Event; (ii) such Principal Party
shall thereafter be liable for, and shall assume, by virtue of such Section 13
Event, all the

                                      -24-
<PAGE>

obligations and duties of the Company pursuant to this Agreement; (iii) 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;
(iv) such Principal Party shall take such steps (including, but not limited to,
the reservation of a sufficient number of shares of its Common Stock) in
connection with the consummation of any such transaction as may be necessary to
assure that the provisions hereof shall thereafter be applicable, as nearly as
reasonably may be, in relation to its shares of Common Stock thereafter
deliverable upon the exercise of the Rights; and (v) the provisions of Section
11(a)(ii) hereof shall be of no effect following the first occurrence of any
Section 13 Event.

          (b) "PRINCIPAL PARTY" shall mean

          (i)  in the case of any transaction described in clause (x) or (y) of
               the first sentence of Section 13(a) hereof, the Person that is
               the issuer of any securities into which shares of Common Stock of
               the Company are converted in such merger or consolidation, and if
               no securities are so issued, the Person that is the other party
               to such merger or consolidation; and

          (ii) in the case of any transaction described in clause (z) of the
               first sentence 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;

PROVIDED, HOWEVER, that in any such case, (1) if the Common Stock of such Person
is not at such time and has not been continuously over the preceding twelve (12)
month period registered under Section 12 of the Exchange Act, and such Person is
a direct or indirect Subsidiary of another Person the Common Stock of which is
and has been so registered, "Principal Party" shall refer to such other Person;
and (2) in case such Person is a Subsidiary, directly or indirectly, of more
than one Person, the Common Stocks of two or more of which are and have been so
registered, "Principal Party" shall refer to whichever of such Persons is the
issuer of the Common Stock having the greatest aggregate market value.

          (c) The Company shall not consummate any such consolidation, merger,
sale or transfer unless the Principal Party shall have a sufficient number of
authorized shares of its Common Stock which 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 Principal Party shall
have executed and delivered to the Rights Agent a supplemental agreement
providing for the terms set forth in paragraphs (a) and (b) of this Section 13
and further providing that, as soon as practicable after the date of any Section
13 Event, the Principal Party will:

          (i)  prepare and file a registration statement under the Act, with
               respect to the Rights and the securities purchasable upon
               exercise of the Rights on an appropriate form, and will use its
               best efforts to cause such registration statement to (A) become
               effective as soon

                                      -25-
<PAGE>

               as practicable after such filing and (B) remain effective (with a
               prospectus at all times meeting the requirements of the Act)
               until the Expiration Date; and

          (ii) deliver to holders of the Rights historical financial statements
               for the Principal Party and each of its Affiliates that comply in
               all respects with the requirements for registration on Form 10
               under the Exchange Act.

The provisions of this Section 13 shall similarly apply to successive mergers or
consolidations or sales or other transfers. In the event that a Section 13 Event
shall occur at any time after the occurrence of a Section 11(a)(ii) Event, the
Rights which have not theretofore been exercised shall thereafter become
exercisable in the manner described in Section 13(a) hereof.

          (d) Notwithstanding anything in this Agreement to the contrary,
Section 13 shall not be applicable to a transaction described in subparagraphs
(x) and (y) of Section 13(a) if (i) such transaction is consummated with a
Person or Persons who acquired shares of Common Stock pursuant to a tender offer
or exchange offer for all outstanding shares of Common Stock which complies with
the provisions of Section 11(a)(ii)(B) hereof (or a wholly owned subsidiary of
any such Person or Persons), (ii) the price per share of Common Stock offered in
such transaction is not less than the price per share of Common Stock paid to
all holders of shares of Common Stock whose shares were purchased pursuant to
such tender offer or exchange offer, and (iii) the form of consideration being
offered to the remaining holders of shares of Common Stock pursuant to such
transaction is the same as the form of consideration paid pursuant to such
tender offer or exchange offer. Upon consummation of any such transaction
contemplated by this Section 13(d), all Rights hereunder shall expire.

     Section 14. FRACTIONAL RIGHTS AND FRACTIONAL SHARES.

          (a) The Company shall not be required to issue fractions of Rights,
except prior to the Distribution Date as provided in Section 11(p) hereof, or to
distribute Rights Certificates that evidence fractional Rights. If the Company
determines not to issue fractional Rights, there shall be paid in lieu thereof
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 purposes of this
Section 14(a), the current market value of a whole Right shall be the closing
price of the Rights for the Trading Day immediately prior to the date on which
such fractional Rights would have been otherwise issuable. The closing price of
the Rights for any day shall be the last sale price, regular way, or, in case no
such sale takes place on such day, the average of the closing bid and asked
prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal
national securities exchange on which the Rights are listed or admitted to
trading, or if the Rights are not listed or admitted to trading on any national
securities exchange, the last quoted price or, if not so quoted, the average of
the high bid and low asked prices in the over-the-counter market, as reported by
Nasdaq or such other system then in use or, if on any such date the Rights are
not quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional

                                      -26-
<PAGE>

market maker making a market in the Rights selected by the Board. If on any such
date no such market maker is making a market in the Rights the fair value of the
Rights on such date as determined in good faith by the Board shall be used.

          (b) The Company shall not be required to issue fractions of shares of
Preferred Stock (other than fractions which are integral multiples of one
one-hundredth of a share of Preferred Stock) upon exercise of the Rights or to
distribute certificates that evidence fractional shares of Preferred Stock
(other than fractions which are integral multiples of one one-hundredth of a
share of Preferred Stock). In lieu of fractional shares of Preferred Stock that
are not integral multiples of one one-hundredth of a share of Preferred Stock,
the Company may pay to the registered holders of Rights Certificates, with
regard to which such fractional shares of Preferred Stock would otherwise be
issuable, at the time such Rights are exercised as herein provided, an amount in
cash equal to the same fraction of the current market value of one one-hundredth
of a share of Preferred Stock. For purposes of this Section 14(b), the current
market value of one one-hundredth share of Preferred Stock shall be one
one-hundredth of the closing price per share of Common Stock (determined
pursuant to Section 11(d)(ii) hereof) on the Trading Day immediately prior to
the date of such exercise.

          (c) Following the occurrence of a Triggering Event, the Company shall
not be required to issue fractions of shares of Common Stock upon exercise of
the Rights or to distribute certificates which evidence fractional shares of
Common Stock. In lieu of fractional shares of Common Stock, the Company may 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 one share of Common Stock. For purposes of this Section
14(c), the current market value of one share of Common Stock shall be the
closing price of one share of Common Stock (as determined pursuant to Section
11(d)(i) 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 right to receive any fractional Rights or any fractional shares upon
exercise of a Right, except as permitted by this Section 14.

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

                                      -27-
<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 Common Stock;

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

          (c) subject to Section 6(a) and Section 7(f) hereof, the Company and
the Rights Agent may deem and treat the person in whose name a Rights
Certificate (or, prior to the Distribution Date, the associated Common Stock
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 Stock certificate made by anyone
other than the Company or the Rights Agent) for all purposes whatsoever, and
neither the Company nor the Rights Agent, subject to the last sentence of
Section 7(e) hereof, shall be required to be affected by any notice to the
contrary; and

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

     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 the holder of the number of one one-hundredths of a
share of Preferred Stock 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.

                                      -28-
<PAGE>

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

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

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

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

                                      -29-
<PAGE>

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

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

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

          (b) Whenever in the performance of its duties under this Agreement the
Rights Agent shall deem it necessary or desirable that any fact or matter
(including, without limitation, the identity of any Acquiring Person or Adverse
Person and the determination of Current Market Price) be proved or established
by the Company prior to taking or suffering any action hereunder, such fact or
matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and established by a
certificate signed by the President, any Managing Director, the Treasurer, any
Assistant Treasurer, the Secretary or any Assistant Secretary of the Company and
delivered to the Rights Agent; and such certificate shall be full authorization
to the Rights Agent for any action taken or suffered in good faith by it under
the provisions of this Agreement in reliance upon such certificate.

          (c) The Rights Agent shall be liable hereunder only for its own
negligence, bad faith or willful misconduct.

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

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

                                      -30-
<PAGE>

          (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 the
President, the Chief Financial Officer, any Managing Director, the Secretary,
any Assistant Secretary, the Treasurer or any Assistant Treasurer of the
Company, and to apply to such officers for advice or instructions in connection
with its duties, and it shall not be liable for any action taken or suffered to
be taken by it in good faith in accordance with instructions of any such
officer.

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

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

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

          (k) If, with respect to any Rights Certificate surrendered to the
Rights Agent for exercise or transfer, the certificate contained in the form of
assignment or the form of election to purchase set forth on the reverse thereof,
as the case may be, has either not been completed or indicates an affirmative
response to clause 1 or 2 thereof, the Rights Agent shall not take any further
action with respect to such requested exercise of 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 Common Stock and Preferred Stock, 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

                                      -31-
<PAGE>

the case may be, and to each transfer agent of the Common Stock and Preferred
Stock, 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 any registered
holder of a Rights Certificate (who shall, with such notice, submit his Rights
Certificate for inspection by the Company), then any registered holder of any
Rights Certificate may apply to any court of competent jurisdiction for the
appointment of a new Rights Agent. Any successor Rights Agent, whether appointed
by the Company or by such a court, shall be (a) a corporation organized and
doing business under the laws of the United States or any state thereof in good
standing, which is authorized under such laws to exercise corporate trust or
stock transfer powers and is subject to supervision or examination by federal or
state authority and which has at the time of its appointment as Rights Agent a
combined capital and surplus of at least $50,000,000 or (b) an affiliate of a
corporation described in clause (a) of this sentence. After appointment, the
successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and transfer
to the successor Rights Agent any property at the time held by it hereunder, and
execute and deliver any further assurance, conveyance, act or deed necessary for
the purpose. Not later than the effective date of any such appointment, the
Company shall file notice thereof in writing with the predecessor Rights Agent
and each transfer agent of the Common Stock and Preferred Stock, 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 the Board to reflect any adjustment or change in the Purchase
Price and the number or kind or class of shares or other securities or property
purchasable under the Rights Certificates made in accordance with the provisions
of this Agreement. In addition, in connection with the issuance or sale of
shares of Common Stock following the Distribution Date (other than upon exercise
of a Right) and prior to the redemption or expiration of the Rights, the Company
(a) shall, with respect to shares of Common Stock so issued or sold pursuant to
the exercise of stock options or under any employee plan or arrangement, or upon
the exercise, conversion or exchange of securities, notes, warrants or
debentures issued by the Company, and (b) may, in any other case, if deemed
necessary or appropriate by the Board, 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 if, and
to the extent that, the Company shall be advised by counsel that such issuance
would create a significant risk of material adverse tax consequences to the
Company or the Person to whom such Rights Certificate would be issued, 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.

                                      -32-
<PAGE>

     Section 23. REDEMPTION AND TERMINATION.

          (a) The Board may, at its option, at any time prior to the earlier of
(i) the Close of Business on the tenth day following the Stock Acquisition Date
(or, if the Stock Acquisition Date shall have occurred prior to the Record Date,
the close of business on the tenth day following the Record Date), or (ii) the
Final Expiration Date, redeem all but not less than all of the then outstanding
Rights at a redemption price of $.01 per Right, as such amount may be
appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof (such redemption price being
hereinafter referred to as the "REDEMPTION PRICE"); PROVIDED, HOWEVER, that the
Board may not redeem any Rights following an Adverse Person Event and PROVIDED,
FURTHER, that if the Board authorizes redemption of the Rights in either of the
circumstances set forth in clauses (i) and (ii) below, then there must be
Continuing Directors then in office and such authorization shall require the
concurrence of a majority of such Continuing Directors: (i) such authorization
occurs on or after the time a Person becomes an Acquiring Person, or (ii) such
authorization occurs on or after the date of a change (resulting from a proxy or
consent solicitation effected in compliance with applicable law and the
requirements of any national securities exchange or trading market on which the
Common Stock is listed) in a majority of the directors in office at the
commencement of such solicitation if any Person who is a participant in such
solicitation has stated (or, if upon the commencement of such solicitation, a
majority of the Board has determined in good faith) that such Person (or any of
its Affiliates or Associates) intends to take, or may consider taking, any
action which would result in such Person becoming an Acquiring Person or which
would cause the occurrence of a Triggering Event unless, concurrent with such
solicitation, such Person (or one or more of its Affiliates or Associates) is
making a cash tender offer pursuant to a Schedule 14D-1 (or any successor form)
filed with the Securities and Exchange Commission for all outstanding shares of
Common Stock not beneficially owned by such Person (or by its Affiliates or
Associates). If, following the occurrence of a Stock Acquisition Date and
following the expiration of the right of redemption set forth in the preceding
sentence but prior to any Triggering Event, (i) a Person who was an Acquiring
Person shall have transferred or otherwise disposed of a number of shares of
Common Stock in one or more transactions, not directly or indirectly involving
the Company or any of its Subsidiaries, which did not result in the occurrence
of a Triggering Event such that such Person is thereafter a Beneficial Owner of
15% or less of the outstanding shares of Common Stock, and (ii) there are no
other Persons, immediately following the occurrence of the event described in
clause (i), who are Acquiring Persons, and (iii) the Board (with the concurrence
of a majority of the Continuing Directors) shall so approve, then the Company's
right of redemption set forth in the preceding sentence shall be reinstated and
thereafter be subject to the provisions of this Section 23. If following the
occurrence of a Stock Acquisition Date and following the expiration of the right
of redemption set forth in the first sentence hereof, but prior to any
Triggering Event, the Board may, at its option, redeem all but not less than all
of the then outstanding Rights at the Redemption Price, provided that (i) such
redemption is effected in connection with the approval by the Board of Directors
of the Company of, and the execution and delivery by the Company of an agreement
providing for, a merger, consolidation, sale or transfer of all or substantially
all of the assets of the Company or other business combination, in each case
which involves the Company but does not involve an Acquiring Person or an
Affiliate or Associate of an Acquiring Person or any other Person acting
directly or indirectly on behalf of or in association with any such Acquiring
Person, Affiliate or Associate

                                      -33-
<PAGE>

and (ii) such redemption is approved by a majority of the Continuing Directors.
Notwithstanding anything contained in this Agreement to the contrary, the Rights
shall not be exercisable after the first occurrence of a Section 11(a)(ii) Event
until such time as the Company's right of redemption set forth in the first
sentence of this Section 23(a) has expired.

          (b) The Company may, at its option, pay the Redemption Price in cash,
shares of Common Stock (based on the Current Market Price as defined in Section
11(d) hereof, of the Common Stock at the time of redemption) or any other form
of consideration deemed appropriate by the Board.

          (c) Immediately upon the action of the Board 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 for each Right so held. Promptly after
the action of the Board 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 each holder's
last address as it appears 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 Stock. 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
the redemption will state the method by which the payment of the Redemption
Price will be made.

     Section 24. EXCHANGE. (a) At any time after any Person becomes an Acquiring
Person or an Adverse Person, a majority of the Continuing Directors may, at
their option, exchange all or part of the then outstanding and exercisable
Rights (which (i) shall not include Rights that have become void pursuant to
Section 7(e) and (ii) shall include, without limitation, any Rights issued after
the Distribution Date in connection with the exercise of options pursuant to any
employee benefit plan of the Company or any Subsidiary of the Company) for
shares of Common Stock at an exchange ratio of one share of Common Stock per
Right, appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after the date hereof (such exchange ratio being
hereinafter referred to as the "EXCHANGE RATIO"). Notwithstanding the foregoing,
the Board of Directors shall not be empowered to effect such exchange at any
time after any Person (other than the Company, any of its Subsidiaries, any
employee benefit plan of the Company or any of its Subsidiaries or any Person
organized, appointed or established by the Company or any of its Subsidiaries
for or pursuant to the terms of any such plan), together with all Affiliates and
Associates of such Person, becomes the Beneficial Owner of 50% or more of the
shares of Common Stock then outstanding.

          (b) Immediately upon the action of the Continuing Directors electing
to exchange any Rights pursuant to Section 24(a) and without any further action
and without any notice, the right to exercise such Rights will terminate and
thereafter the only right of a holder of such Rights shall be to receive that
number of shares of Common Stock equal to the number of such Rights held by such
holder multiplied by the Exchange Ratio. The Company shall promptly thereafter
give notice of such exchange to the Rights Agent and the holders of the Rights
to be exchanged in the manner set forth in Section 26; PROVIDED, HOWEVER, that
the failure to give, or

                                      -34-
<PAGE>

any defect in, such notice shall not affect the validity of such exchange. 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 shares of Common Stock for Rights
will be effected and, in the event of any partial exchange, the number of Rights
which will be exchanged. Any partial exchange shall be effected pro rata based
on the number of Rights (other than Rights which have become void pursuant to
Section 7(e)) held by each holder of Rights.

          (c) In any exchange pursuant to this Section 24, the Company, at its
option, may substitute Common Stock Equivalents (as defined in Section
11(a)(iii)) for shares of Common Stock exchangeable for Rights, at the initial
rate of one Common Stock Equivalent for each share of Common Stock, as
appropriately adjusted to reflect adjustments in dividend, liquidation and
voting rights of Common Stock Equivalents pursuant to the terms thereof, so that
each Common Stock Equivalent delivered in lieu of each share of Common Stock
shall have essentially the same dividend, liquidation and voting rights as one
share of Common Stock.

          (d) In the event that the number of shares of Common Stock which are
authorized by the Company's certificate of incorporation but not outstanding or
reserved for issuance are not sufficient to permit an exchange of Rights as
contemplated by this Section 24, the Company shall take all such action as may
be necessary to authorize additional shares of Common Stock for issuance upon
exchange of the Rights.

          (e) The Company shall not be required to issue fractions of shares of
Common Stock or to distribute certificates that evidence fractional shares of
Common Stock. In lieu of fractional shares of Common Stock, the Company may pay
to the registered holders of Rights Certificates with regard to which such
fractional shares of Common Stock would otherwise be issuable, an amount in cash
equal to the same fraction of the current market value of a whole share of
Common Stock. For purposes of this Section 24(e), the current market value of a
whole share of Common Stock shall be the closing price per share of Common Stock
(determined pursuant to Section 11(d)(ii) hereof) on the Trading Day immediately
prior to the date of exchange pursuant to this Section 24.

     Section 25. NOTICE OF CERTAIN EVENTS.

          (a) In case the Company shall propose, at any time after the
Distribution Date, (i) to pay any dividend payable in stock of any class to the
holders of Preferred Stock or to make any other distribution to the holders of
Preferred Stock (other than a regular quarterly cash dividend out of earnings or
retained earnings of the Company), or (ii) to offer to the holders of Preferred
Stock rights or warrants to subscribe for or to purchase any additional shares
of Preferred Stock or shares of stock of any class or any other securities,
rights or options, or (iii) to effect any reclassification of its Preferred
Stock (other than a reclassification involving only the subdivision of
outstanding shares of Preferred Stock), or (iv) to effect any consolidation or
merger into or with any other Person (other than a Subsidiary of the Company in
a transaction which complies with Section 11(o) hereof), or to effect any sale
or other transfer (or to permit one or more of its Subsidiaries to effect any
sale or other transfer), in one transaction or a series of related transactions,
of more than 50% of the assets or earning power of the Company and its

                                      -35-
<PAGE>

Subsidiaries (taken as a whole) to any other Person or Persons (other than the
Company or any of its Subsidiaries in one or more transactions each of which
complies with Section 11(o) hereof), or (v) to effect the liquidation,
dissolution or winding up of the Company, then, in each such case, the Company
shall give to each holder of a Rights Certificate, to the extent feasible, in
accordance with Section 26 hereof, a notice of such proposed action, which shall
specify the record date for the purposes of such stock dividend or distribution
of rights or warrants, or the date on which such reclassification,
consolidation, merger, sale, transfer, liquidation, dissolution, or winding up
is to take place and the date of participation therein by the holders of the
shares of Preferred Stock, if any such date is to be fixed, and such notice
shall be so given in the case of any action covered by clause (i) or (ii) above
at least twenty (20) days prior to the record date for determining holders of
the shares of Preferred Stock for purposes of such action, and in the case of
any such other action, at least twenty (20) days prior to the date of the taking
of such proposed action or the date of participation therein by the holders of
the shares of Preferred Stock, whichever shall be the earlier.

          (b) In case any Section 11(a)(ii) Event shall occur, then, in any such
case, (i) the Company shall as soon as practicable thereafter give to each
holder of a Rights Certificate, to the extent feasible, and 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 Section
11(a)(ii) hereof and (ii) all references in the preceding paragraph to Common
Stock shall, to the extent appropriate, also be deemed thereafter to refer to
other securities.

     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:

                           Investors Financial Services Corp.
                           89 South Street
                           Boston, MA 02111-2679
                           Attention: President

Subject to the provisions of Section 21, 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:

                           First Chicago Trust Company of New York
                           Attention:  Tenders and Exchange Administration
                           P.O. Box 2561
                           Jersey City, NJ 07303-2561

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 (or, if
prior to the Distribution Date, to the holder of certificates representing
shares of Common Stock) shall be sufficiently given or made

                                      -36-
<PAGE>

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. At any time prior to the Final
Amendment Date, and subject to the penultimate sentence of this Section 27, the
Company and the Rights Agent shall, if the Company so directs, supplement or
amend any provision of this Agreement without the approval of any holders of
certificates representing shares of Common Stock. From and after the Final
Amendment Date and subject to the penultimate sentence of this Section 27, the
Company and the Rights Agent shall, if the Company so directs, supplement or
amend this Agreement without the approval of any holders of Rights Certificates
in order (i) to cure any ambiguity, (ii) to correct or supplement any provision
contained herein which may be defective or inconsistent with any other
provisions herein, (iii) to shorten or lengthen any time period hereunder or
(iv) to change or supplement the provisions hereunder in any manner which the
Company may deem necessary or desirable and which shall not adversely affect the
interests of the holders of Rights Certificates (other than an Acquiring Person,
an Adverse Person or an Affiliate or Associate of such Person); PROVIDED,
HOWEVER, that this Agreement may not be supplemented or amended, (A) whether
before or after the Final Amendment Date, to lengthen a time period relating to
when the Rights may be redeemed or to modify the ability (or inability) of the
Continuing Directors to redeem the Rights, in either case at such time as the
Rights are not then redeemable or (B) after the Final Amendment Date, to
lengthen, pursuant to clause (iii) of this sentence, any other time period
unless such lengthening is for the purpose of protecting, enhancing or
clarifying the rights of or the benefits to the holders of Rights (other than
any Acquiring Person, an Adverse Person or an Associate or Affiliate of such
Person). Upon the delivery of a certificate from an appropriate officer of the
Company which states that the proposed supplement or amendment is in compliance
with the terms of this Section 27, the Rights Agent shall execute such
supplement or amendment. Notwithstanding anything contained in this Agreement to
the contrary, no supplement or amendment shall be made which changes the
Redemption Price, the Final Expiration Date, the Purchase Price or the number of
one one-hundredths of a share of Preferred Stock for which a Right is
exercisable. Prior to the Distribution Date, the interests of the holders of
Rights shall be deemed coincident with the interests of the holders of Common
Stock.

     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 shares of
Common Stock outstanding at any particular time, including for purposes of
determining the particular percentage of such outstanding shares of Common Stock
of which any Person is the Beneficial Owner, shall be made in accordance with
the provisions of the last sentence of Rule 13d-3(d)(l)(i) of the General Rules
and Regulations under the Exchange Act. The Board (with, where specifically
provided for herein, the concurrence of the Continuing Directors) shall have the
exclusive power and authority to administer this Agreement and to exercise all
rights and powers specifically granted to the Board (with, where specifically
provided for herein, the concurrence of the Continuing Directors) or to the
Company, or as may be necessary or advisable in the administration of this
Agreement, including, without limitation, the right and power to (i) interpret
the provisions of this Agreement, and (ii) make all determinations deemed
necessary or advisable for the administration of this

                                      -37-
<PAGE>

Agreement (including a determination to redeem or not redeem the Rights, to
declare that a Person is an Adverse Person 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 (with, where specifically provided for herein, the
concurrence of the Continuing Directors) in good faith, shall (x) be final,
conclusive and binding on the Company, the Rights Agent, the holders of the
Rights and all other parties, and (y) not subject any member of the Board of
Directors of the Company to any liability to the holders of the Rights.

     Section 30. BENEFITS OF THIS AGREEMENT. Nothing in this Agreement shall be
construed to give to any Person other than the Company, the Rights Agent and the
registered holders of the Rights Certificates (and, prior to the Distribution
Date, registered holders of the Common Stock) any legal or equitable right,
remedy or claim under this Agreement; but this Agreement shall be for the sole
and exclusive benefit of the Company, the Rights Agent and the registered
holders of the Rights Certificates (and, prior to the Distribution Date,
registered holders of the Common Stock).

     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 Continuing
Directors determine in their good faith judgment that severing the invalid
language from this Agreement would materially and adversely affect the purpose
or effect of this Agreement, the right of redemption set forth in Section 23
hereof shall be reinstated and shall not expire until the close of business on
the tenth day following the date of such determination by the Continuing
Directors. Without limiting the foregoing, if any provision requiring that a
determination made by less than the entire Board is held by a court of competent
jurisdiction or other authority to be invalid, void or unenforceable, such
determination shall then be made by the entire Board.

     Section 32. GOVERNING LAW. This Agreement, 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 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.

                                      -38-
<PAGE>

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

Attest:                                      INVESTORS FINANCIAL SERVICES
                                             CORP.

By:       /S/ KAREN R. CREEGAN               By:     /S/  KEVIN J. SHEEHAN
    ---------------------------------           ----------------------------
     Name: Karen R. Creegan                     Name:  Kevin J. Sheehan
     Title: Secretary                           Title: President and Chief
                                                Executive Officer

Attest:                                      FIRST CHICAGO TRUST COMPANY OF
                                             NEW YORK

 By:       /S/ ALBERT DIORIO                 By:    /S/ JOANNE GOROSTIOLA
     --------------------------------           -------------------------------
      Name:  Albert Diorio                      Name:  Joanne Gorostiola
      Title: Assistant Vice President           Title: Assistant Vice President

                                      -39-
<PAGE>

                                                                       EXHIBIT A

                           CERTIFICATE OF DESIGNATIONS

                  SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

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

                                ($0.01 Par Value)
                                       of
                       INVESTORS FINANCIAL SERVICES CORP.

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

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

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

     Investors Financial Services Corp., a corporation organized and existing
under the General Corporation Law of the State of Delaware (the "Corporation"),
in accordance with the provisions of Section 103 thereof, DOES HEREBY CERTIFY:

     FIRST: That pursuant to the authority conferred upon the Board of Directors
by the Certificate of Incorporation of the Corporation, the Board of Directors
of the Corporation adopted the following resolutions creating a series of
100,000 shares of Preferred Stock, $0.01 par value per share, designated as
Series A Junior Participating Preferred Stock:

          RESOLVED: That pursuant to the authority vested in the Board of
          Directors of this Corporation in accordance with the provisions of
          Article FOURTH, Section C, of its Certificate of Incorporation, a
          series of Preferred Stock of the Corporation (the "Series A Junior
          Participating Preferred Stock") be, and it hereby is, created, and
          that the designation and amount thereof and the voting powers,
          preferences and relative, participating, optional and other special
          rights of the shares of the Series A Junior Participating Preferred
          Stock, and the qualifications, limitations or restrictions thereof,
          shall be as set forth in APPENDIX A attached hereto.

          RESOLVED: That the President, or any Managing Director and the
          Secretary or any Assistant Secretary of the Corporation be, and they
          hereby are, authorized and directed, in the name and on behalf of the
          Corporation, to file the Certificate of Designations in accordance
          with the provisions of Delaware General Corporation Law and to take
          such actions as they may deem necessary or appropriate to carry out
          the intent of the foregoing resolution.

<PAGE>

     SECOND: That the aforesaid resolutions were duly and validly adopted in
accordance with the applicable provisions of Section 151 of the General
Corporation Law of the State of Delaware and the Certificate of Incorporation
and By-Laws of the Corporation.

     THIRD: That the aforesaid designation shall become effective on [the Record
Date].

                                     -A-2-

<PAGE>

                                                                      APPENDIX A

     Section 1. DESIGNATION AND AMOUNT. The shares of such series shall be
designated as "Series A Junior Participating Preferred Stock" and the number of
shares constituting such series shall be 100,000. Such number of shares may be
increased or decreased by resolution of the Board of Directors; PROVIDED,
HOWEVER, that no decrease shall reduce the number of shares of Series A Junior
Participating Preferred Stock to a number less than the number of shares then
outstanding plus the number of shares reserved for issuance upon the exercise of
outstanding options, rights or warrants or upon the conversion of any
outstanding securities issued by the Corporation convertible into Series A
Junior Participating Preferred Stock.

     Section 2. DIVIDENDS AND DISTRIBUTIONS.

               (A) Subject to the rights of the holders of any shares of any
series of Preferred Stock ranking prior and superior to the shares of Series A
Junior Participating Preferred Stock with respect to dividends, the holders of
shares of Series A Junior Participating Preferred Stock, in preference to the
holders of Common Stock, $.01 par value per share and Class A Stock, $.01 par
value per share ( collectively the "Common Stock"), of the Corporation, and of
any other junior stock, shall be entitled to receive, when, as and if declared
by the Board of Directors, out of funds of the Corporation legally available for
the payment of dividends, quarterly dividends payable in cash on January 31,
April 30, July 31 and October 31 in each year (each such date being referred to
herein as a "Quarterly Dividend Payment Date"), commencing on the first
Quarterly Dividend Payment Date after the first issuance of a share or fraction
of a share of Series A Junior Participating Preferred Stock, in an amount per
share (rounded to the nearest cent) equal to the greater of (a) $1.00 or (b)
subject to the provision for adjustment hereinafter set forth, 100 times the
aggregate per share amount of all cash dividends, and 100 times the aggregate
per share amount (payable in kind) of all non-cash dividends or other
distributions, other than a dividend payable in shares of Common Stock or a
subdivision of the outstanding shares of Common Stock (by reclassification or
otherwise), declared on the Common Stock since the immediately preceding
Quarterly Dividend Payment Date, or, with respect to the first Quarterly
Dividend Payment Date, since the first issuance of any share or fraction of a
share of Series A Junior Participating Preferred Stock. In the event the
Corporation shall at any time declare or pay any dividend on Common Stock
payable in shares of Common Stock or effect a subdivision, combination or
consolidation of the outstanding Common Stock (by reclassification or otherwise
than by payment of a dividend in shares of Common Stock) into a greater or
lesser number of shares of Common Stock, then in each such case the amount to
which holders of shares of Series A Junior Participating Preferred Stock were
entitled immediately prior to such event under clause (b) of the preceding
sentence shall be adjusted by multiplying such amount by a fraction, the
numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

               (B) The Corporation shall declare a dividend or distribution on
the Series A Junior Participating Preferred Stock as provided in paragraph (A)
above immediately after it declares a dividend or distribution on the Common
Stock (other than a dividend payable in shares of Common Stock) and the
Corporation shall pay such dividend or distribution on the

                                     -A-3-
<PAGE>

Series A Junior Participating Preferred Stock before the dividend or
distribution declared on the Common Stock is paid or set apart; PROVIDED,
HOWEVER, that, in the event no dividend or distribution shall have been declared
on the Common Stock during the period between any Quarterly Dividend Payment
Date and the next subsequent Quarterly Dividend Payment Date, a dividend of
$1.00 per share on the Series A Junior Participating Preferred Stock shall
nevertheless be payable on such subsequent Quarterly Dividend Payment Date.

               (C) Dividends shall begin to accrue and be cumulative on
outstanding shares of Series A Junior Participating Preferred Stock from the
Quarterly Dividend Payment Date next preceding the date of issue of such shares
of Series A Junior Participating Preferred Stock, unless the date of issue of
such shares is prior to the record date for the first Quarterly Dividend Payment
Date, in which case dividends on such shares shall begin to accrue from the date
of issue of such shares, or unless the date of issue is a Quarterly Dividend
Payment Date or is a date after the record date for the determination of holders
of shares of Series A Junior Participating Preferred Stock entitled to receive a
quarterly dividend and before such Quarterly Dividend Payment Date, in either of
which events such dividends shall begin to accrue and be cumulative from such
Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear
interest. Dividends paid on the shares of Series A Junior Participating
Preferred Stock in an amount less than the total amount of such dividends at the
time accrued and payable on such shares shall be allocated pro rata on a
share-by-share basis among all such shares at the time outstanding. The Board of
Directors may fix a record date for the determination of holders of shares of
Series A Junior Participating Preferred Stock entitled to receive payment of a
dividend or distribution declared thereon, which record date shall be no more
than 60 days prior to the date fixed for the payment thereof.

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

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

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

                                     -A-4-

<PAGE>

               (C) (i) If at any time dividends on any Series A Junior
Participating Preferred Stock shall be in arrears in an amount equal to six (6)
quarterly dividends thereon, the occurrence of such contingency shall mark the
beginning of a period (herein called a "default period") which shall extend
until such time when all accrued and unpaid dividends for all previous quarterly
dividend periods and for the current quarterly dividend period on all shares of
Series A Junior Participating Preferred Stock then outstanding shall have been
declared and paid or set apart for payment. During each default period, all
holders of Preferred Stock (including holders of the Series A Junior
Participating Preferred Stock) with dividends in arrears in an amount equal to
six (6) quarterly dividends thereon, voting as a class, irrespective of series,
shall have the right to elect two (2) Directors.

          (ii) During any default period, such voting right of the holders of
               Series A Junior Participating Preferred Stock may be exercised
               initially at a special meeting called pursuant to subparagraph
               (iii) of this Section 3(C) or at any annual meeting of
               stockholders, and thereafter at annual meetings of stockholders,
               provided that neither such voting right nor the right of the
               holders of any other series of Preferred Stock, if any, to
               increase, in certain cases, the authorized number of Directors
               shall be exercised unless the holders of ten percent (10%) in
               number of shares of Preferred Stock outstanding shall be present
               in person or by proxy. The absence of a quorum of the holders of
               Common Stock shall not affect the exercise by the holders of
               Preferred Stock of such voting right. At any meeting at which the
               holders of Preferred Stock shall exercise such voting right
               initially during an existing default period, they shall have the
               right, voting as a class, to elect Directors to fill such
               vacancies, if any, in the Board of Directors as may then exist up
               to two (2) Directors or, if such right is exercised at an annual
               meeting, to elect two (2) Directors. If the number which may be
               so elected at any special meeting does not amount to the required
               number, the holders of the Preferred Stock shall have the right
               to make such increase in the number of Directors as shall be
               necessary to permit the election by them of the required number.
               After the holders of the Preferred Stock shall have exercised
               their right to elect Directors in any default period and during
               the continuance of such period, the number of Directors shall not
               be increased or decreased except by vote of the holders of
               Preferred Stock as herein provided or pursuant to the rights of
               any equity securities ranking senior to or PARI PASSU with the
               Series A Junior Participating Preferred Stock.

          (iii) Unless the holders of Preferred Stock shall, during an existing
               default period, have previously exercised their right to elect
               Directors, the Board of Directors may order, the calling of
               special meeting of the holders of Preferred Stock, which meeting
               shall thereupon be called by the Chairman of the Board or the
               President, of the Corporation. Notice of such meeting and of any
               annual meeting at which holders of Preferred Stock are entitled
               to vote pursuant to this paragraph (C)(iii) shall be given to
               each holder of record of Preferred Stock by mailing a copy of
               such notice to him at his last address as the same appears on the
               books of the Corporation. Such meeting shall be called for a time
               not earlier than 10 days and not later than 60 days after such
               order or request. Notwithstanding the provisions of this
               paragraph (C)(iii), no such special meeting shall be called
               during the period within 60 days immediately preceding the date
               fixed for the next annual meeting of the stockholders.

                                     -A-5-

<PAGE>

          (iv) In any default period, the holders of Common Stock, and other
               classes of stock of the Corporation if applicable, shall continue
               to be entitled to elect the whole number of Directors until the
               holders of Preferred Stock shall have exercised their right to
               elect two (2) Directors voting as a class, after the exercise of
               which right (x) the Directors so elected by the holders of
               Preferred Stock shall continue in office until their successors
               shall have been elected by such holders or until the expiration
               of the default period, and (y) any vacancy in the Board of
               Directors may (except as provided in paragraph (C)(ii) of this
               Section 3) be filled by vote of a majority of the remaining
               Directors theretofore elected by the holders of the class of
               stock which elected the Director whose office shall have become
               vacant. References in this paragraph (C) to Directors elected by
               the holders of a particular class of stock shall include
               Directors elected by such Directors to fill vacancies as provided
               in clause (y) of the foregoing sentence.

          (v)  Immediately upon the expiration of a default period, (x) the
               right of the holders of Preferred Stock as a class to elect
               Directors shall cease, (y) the term of any Directors elected by
               the holders of Preferred Stock as a class shall terminate, and
               (z) the number of Directors shall be such number as may be
               provided for in the certificate of incorporation or by-laws
               irrespective of any increase made pursuant to the provisions of
               paragraph (C)(ii) of this Section 3 (such number being subject,
               however, to change thereafter in any manner provided by law or in
               the certificate of incorporation or bylaws). Any vacancies in the
               Board of Directors effected by the provisions of clauses (y) and
               (z) in the preceding sentence may be filled by a majority of the
               remaining Directors.

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

     Section 4. CERTAIN RESTRICTIONS.

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

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

                                     -A-6-

<PAGE>

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

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

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

     Section 5. REACQUIRED SHARES. Any shares of Series A Junior Participating
Preferred Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever shall be retired and canceled promptly after the acquisition thereof.
All such shares shall upon their cancellation become authorized but unissued
shares of Preferred Stock and may be reissued as part of a new series of
Preferred Stock to be created by resolution or resolutions of the Board of
Directors, subject to the conditions and restrictions on issuance set forth
herein.

     Section 6. LIQUIDATION, DISSOLUTION OR WINDING UP. (A) Upon any liquidation
(voluntary or otherwise), dissolution or winding up of the Corporation, no
distribution shall be made to the holders of shares of stock ranking junior
(either as to dividends or upon liquidation, dissolution or winding up) to the
Series A Junior Participating Preferred Stock unless, prior thereto, the holders
of shares of Series A Junior Participating Preferred Stock shall have received
$100 per share, plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such payment (the
"Series A Liquidation Preference"). Following the payment of the full amount of
the Series A Liquidation Preference, no additional distributions shall be made
to the holders of shares of Series A Junior Participating Preferred Stock
unless, prior thereto, the holders of shares of Common Stock shall have received
an amount per share (the "Common Adjustment") equal to the quotient obtained by
dividing (i) the Series A Liquidation Preference by (ii) 100 (as appropriately
adjusted as set forth in subparagraph C below to reflect such events as stock
splits, stock dividends and recapitalizations with respect to the Common Stock)
(such number in clause (ii), the "Adjustment Number"). Following the payment of
the full amount of the Series A Liquidation Preference and the Common Adjustment
in respect of all outstanding shares of Series A Junior Participating Preferred
Stock and Common Stock, respectively, holders of Series A Junior Participating

                                     -A-7-

<PAGE>

Preferred Stock and holders of shares of Common Stock shall receive their
ratable and proportionate share of the remaining assets to be distributed in the
ratio of the Adjustment Number to 1 with respect to such Preferred Stock and
Common Stock, on a per share basis, respectively.

               (B) In the event, however, that there are not sufficient assets
available to permit payment in full of the Series A Liquidation Preference and
the liquidation preferences of all other series of Preferred Stock, if any,
which rank on a parity with the Series A Junior Participating Preferred Stock,
then such remaining assets shall be distributed ratably to the holders of such
parity shares in proportion to their respective liquidation preferences. In the
event, however, that there are not sufficient assets available to permit payment
in full of the Common Adjustment, then such remaining assets shall be
distributed ratably to the holders of Common Stock.

               (C) In the event the Corporation shall at any time declare or pay
any dividend on Common Stock payable in shares of Common Stock, or effect a
subdivision, combination or consolidation of the outstanding Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the Adjustment Number in effect immediately prior to such event shall
be adjusted by multiplying such Adjustment Number by a fraction the numerator of
which is the number of shares of Common Stock outstanding immediately after such
event and the denominator of which is the number of shares of Common Stock that
were outstanding immediately prior to such event.

               (D) Neither the consolidation, merger or other business
combination of the Corporation with or into any other corporation nor the sale,
lease, exchange or conveyance of all or any part of the property, assets or
business of the Corporation shall be deemed to be a liquidation, dissolution or
winding up of the Corporation for purposes of this Section 6.

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

                                     -A-8-

<PAGE>

     Section 8. NO REDEMPTION. The shares of Series A Junior Participating
Preferred Stock shall not be redeemable.

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

     Section 10. AMENDMENT. The Certificate of Incorporation of the Corporation
shall not be amended in any manner which would materially alter or change the
powers, preferences or special rights of the Series A Junior Participating
Preferred Stock so as to affect them adversely without the affirmative vote of
the holders of at least seventy-five percent of the outstanding shares of Series
A Junior Participating Preferred Stock, voting together as a single class.

     Section 11. FRACTIONAL SHARES. Series A Junior Participating Preferred
Stock may be issued in fractions of a share which shall entitle the holder, in
proportion to such holders 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 Junior Participating Preferred Stock.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                     -A-9-

<PAGE>

     IN WITNESS WHEREOF, said Investors Financial Services Corp., has caused its
corporate seal to be hereunto affixed and this Certificate to be executed and
attested, this      day of                  , 1995.

                                   INVESTORS FINANCIAL SERVICES, CORP.

                                   By:
                                      ------------------------------------------
                                         Kevin J. Sheehan
                                         President and Chief Executive Officer

[Corporate Seal]

Attest:

                                     -A-10-

<PAGE>

                                                                       EXHIBIT B

                          [FORM OF RIGHTS CERTIFICATE]

Certificate No. R-                                            __________ Rights

NOT EXERCISABLE AFTER AUGUST 15, 2005 OR EARLIER IF REDEEMED BY THE COMPANY. THE
RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $.01 PER
RIGHT ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN
CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON, AN ADVERSE
PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON OR AN ADVERSE 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, AN ADVERSE PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING
PERSON OR ADVERSE 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
AGREEMENT.]*

                               Rights Certificate

                       INVESTORS FINANCIAL SERVICES, CORP.

     This Rights Certificate certifies that _____________________, or registered
assigns, is the registered holder of the number of Rights set forth above, each
of which entitles the holder thereof, subject to the terms, provisions and
conditions of the Rights Agreement, dated as of September 25, 1995 (the "Rights
Agreement"), between Investors Financial Services, Corp., a Delaware corporation
(the "Company"), and First Chicago Trust Company of New York (the "Rights
Agent"), to purchase from the Company after the Distribution Date (as such term
is defined in the Rights Agreement) and at any time prior to the Expiration Date
(as such term is defined in the Rights Agreement) at the office or offices of
the Rights Agent designated for such purpose, or its successors as Rights Agent,

* If applicable, insert this portion of the legend and delete preceding
  sentence.

<PAGE>

one-hundredth of a fully paid, non-assessable share of Series A Junior
Participating Preferred Stock (the "Preferred Stock") of the Company, at a
purchase price of $75.00 per one one-hundredth of a share (the "Purchase
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 shares which
may be purchased upon exercise thereof) set forth above, and the Purchase Price
per share set forth above, are the number and Purchase Price as of [the Record
Date] based on the Preferred Stock as constituted at such date. The Company
reserves the right to require prior to the occurrence of a Triggering Event (as
such term is defined in the Rights Agreement) that a number of Rights be
exercised so that only whole shares of Preferred Stock will be issued.

     Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Rights Agreement.

     Upon the occurrence of a Section 11(a)(ii) Event, if the Rights evidenced
by this Rights Certificate are beneficially owned by (i) an Acquiring Person, an
Adverse Person or an Affiliate or Associate of an Acquiring Person or Adverse
Person, (ii) a transferee of an Acquiring Person or an Adverse Person (or of any
such Associate or Affiliate of an Acquiring Person or an Adverse Person), or
(iii) under certain circumstances specified in the Rights Agreement, a
transferee of a person who, after such transfer, became an Acquiring Person or
an Adverse Person (or an Associate or Affiliate of an Acquiring Person or an
Adverse Person), such Rights shall become null and void and no holder hereof
shall have any right with respect to such Rights from and after the occurrence
of such Section 11(a)(ii) Event.

     As provided in the Rights Agreement, the Purchase Price and the number and
kind of shares of Preferred Stock 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, including
Triggering 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 office of the Company and are
also available upon written request to the Company.

     This Rights Certificate, with or without other Rights Certificates, upon
surrender at the principal office or offices 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 number of one one-hundredths of a share of Preferred
Stock 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

                                     -B-2-

<PAGE>

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.

     Subject to the provisions of the Rights Agreement, the Rights evidenced by
this Certificate may be redeemed by the Company at its option at a redemption
price of $.01 per Right at any time prior to the earlier of (i) the close of
business on the tenth day following the Stock Acquisition Date (or, if the Stock
Acquisition Date shall have occurred prior to the Record Date, the close of
business on the tenth day following the Record Date), and (ii) the Final
Expiration Date. Under certain circumstances set forth in the Rights Agreement,
the decision to redeem shall require the concurrence of a majority of the
Directors. After the expiration of the redemption period, the Company's right of
redemption may be reinstated if an Acquiring Person reduces his beneficial
ownership to 15% or less of the outstanding shares of Common Stock in a
transaction or series of transactions not involving the Company.

     No fractional shares of Preferred Stock will be issued upon the exercise of
any Right or Rights evidenced hereby (other than fractions which are
integral-multiples of one one-hundredth of a share of Preferred Stock), but in
lieu thereof a cash payment will be made, as provided in the Rights Agreement.

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

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal by its authorized officers.

Dated:

ATTEST:                                    INVESTORS FINANCIAL SERVICES, CORP.

                                           By:
----------------------------                  --------------------------------
Secretary                                  Kevin J. Sheehan
                                           President and Chief Executive Officer

                                     -B-3-

<PAGE>

Countersigned:

By:________________________
    Authorized Signature

                                     -B-4-

<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:

<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, an
Adverse Person or an Affiliate or Associate of an Acquiring Person or an Adverse
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, an Adverse Person
or an Affiliate or Associate of an Acquiring Person or an Adverse Person.

Dated:

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

Signature Guaranteed:

                                     NOTICE

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

<PAGE>

                          FORM OF ELECTION TO PURCHASE

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

To:  INVESTORS FINANCIAL SERVICES, CORP.:

     The undersigned hereby irrevocably elects to exercise ______ Rights
represented by this Rights Certificate to purchase the shares of Preferred Stock
issuable upon the exercise of the Rights (or such other securities of the
Company or of any other person which may be issuable upon the exercise of the
Rights) and requests that certificates for such shares be issued in the name of
and delivered to:

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 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:

<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,
an Adverse Person or an Affiliate or Associate of an Acquiring Person or an
Adverse 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, an Adverse Person
or an Affiliate or Associate of an Acquiring Person or an Adverse Person.

Dated:

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

Signature Guaranteed:

                                     NOTICE

     The signature to the foregoing Election to Purchase and Certificate must
correspond 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

                  SUMMARY OF RIGHTS TO PURCHASE PREFERRED STOCK

     On August 15, 1995, the Board of Directors of Investors Financial Services
Corp. (the "Company") declared a dividend of one preferred stock purchase right
(a "Right") for each outstanding share of the Company's Common Stock and Class A
Stock (collectively referred to as the "Common Stock") to stockholders of record
at the close of business on the day preceding the date on which the Company
acquires all the issued and outstanding capital stock of Investors Bank & Trust
Company in exchange for Common Stock, (the "Record Date"). Each Right entitles
the registered holder to purchase from the Company a unit consisting of one
one-hundredth of a share (a "Unit") of Series A Junior Participating Preferred
Stock, $.01 par value per share (the "Preferred Stock"), at a purchase price of
$75 per Unit (the "Purchase Price"), subject to adjustment. The description and
terms of the Rights are set forth in a Rights Agreement, dated September 25,
1995 ( the "Rights Agreement") between the Company and First Chicago Trust
Company of New York, as Rights Agent.

     Initially, the Rights will be attached to all Common Stock certificates
representing shares then outstanding, and no separate Rights Certificates will
be distributed. The Rights will separate from the Common Stock and a
Distribution Date will occur upon the earlier of (i) 10 days following a public
announcement by the Company or any Person that such Person or group of
affiliated or associated Persons, other than the Company, any Subsidiary of the
Company, or any Person or entity organized, appointed or established by the
Company for or pursuant to the terms of the Company's benefit plan (an
"Acquiring Person") has acquired, or obtained the right to acquire, beneficial
ownership of more than 15% of the outstanding shares of Common Stock (the "Stock
Acquisition Date"), (ii) 10 business days following the commencement of a tender
offer or exchange offer that may result in a person or group, other than the
Company, any Subsidiary of the Company, or any Person or entity organized,
appointed or established by the Company for or pursuant to the terms of such
plan, beneficially owning 15% or more of such outstanding shares of Common
Stock, or (iii) 10 business days following an Adverse Person Event (as defined
below).

     Until the Distribution Date (or earlier redemption or expiration of the
Rights), (i) the Rights will be evidenced by the Common Stock certificates and
will be transferred with and only with such Common Stock certificates, (ii) new
Common Stock certificates issued after the Record Date will contain a notation
incorporating the Rights Agreement by reference and (iii) the surrender for
transfer of any certificates for Common Stock outstanding, even without such
notation, will also constitute the transfer of the Rights associated with the
Common Stock represented by such certificate. Pursuant to the Rights Agreement,
the Company reserves the right to require prior to the occurrence of a
Triggering Event (as defined below) that, upon any exercise of Rights, a number
of Rights may be exercised so that only whole shares of Preferred Stock will be
issued.

<PAGE>

     The Rights are not exercisable until the Distribution Date and will expire
at the Close of Business on August 15, 2005, unless earlier redeemed by the
Company as described below.

     As soon as practicable after the Distribution Date, separate certificates
evidencing the Rights ("Rights Certificates") will be mailed to holders of
record of the Common Stock as of the close of business on the Distribution Date
and, thereafter, such separate Rights Certificates alone will represent the
Rights. Except as otherwise determined by the Board of Directors and except in
connection with shares of Common Stock issued upon the exercise of employee
stock options, issuances under other employee stock benefit plans or upon the
conversion of convertible securities issued hereafter, only shares of Common
Stock issued prior to the Distribution Date will be issued with Rights.

     If at any time following the Distribution Date, (i) the Company is the
surviving corporation in a merger with an Acquiring Person and its Common Stock
is not changed or exchanged, (ii) 10 business days after a Person or group of
affiliated or associated Persons other than the Company or its affiliates and
associates acquires beneficial ownership of 20% of the outstanding Common Stock
of the Company (except pursuant to an offer for all outstanding shares of Common
Stock which the Independent Directors determine to be fair to, and otherwise in
the best interests of, the Company and its stockholders), (iii) an Acquiring
Person engages in one or more "self-dealing" transactions as set forth in the
Rights Agreement, (iv) during such time as there is an Acquiring Person, an
event occurs which results in such Acquiring Person's ownership interest being
increased by more than 1% (E.G., a reverse stock split), or (v) 10 business days
after the Continuing Directors (as defined below) of the Company shall declare
any Person to be an Adverse Person, upon a determination that such Person, alone
or together with its affiliates and associates, has become the Beneficial Owner
of an amount of Common Stock which the Continuing Directors determine to be
substantial (which amount shall in no event be less than 10% of the shares of
Common Stock then outstanding) and a majority of the Continuing Directors (with
the concurrence of a majority of the Independent Directors (as defined below))
determines, after reasonable inquiry and investigation, including consultation
with such persons as such directors shall deem appropriate, that (a) such
beneficial ownership by such person is intended to cause the Company to
repurchase the Common Stock beneficially owned by such person or to cause
pressure on the Company to take action or enter into a transaction or series of
transactions intended to provide such person with short-term financial gain
under circumstances where such directors determine that the best long-term
interests of the Company and its stockholders would not be served by taking such
action or entering into such transaction or series of transactions at that time
or (b) such beneficial ownership is causing or is reasonably likely to cause a
material adverse impact on the business or prospect of the Company (including,
but not limited to, impairment of relationships with customers, impairment of
the Company's ability to maintain its competitive position or impairment of the
Company's business reputation or ability to deal with government agencies or
meet regulatory requirements an "Adverse Person Event")

     Then, each holder of a Right will thereafter have the right to receive,
upon exercise, that number of shares of Common Stock (referring here to Common
Stock alone not Common and Class A Stock) (or, in certain circumstances, cash,
property or other securities of the Company)

                                     -C-2-

<PAGE>

which equals the exercise price of the Right divided by 50% of the current
market price (as defined in the Rights Agreement) of the Common Stock at the
date of the occurrence of the event. However, Rights are not exercisable
following the occurrence of any of the events set forth above until such time as
the Rights are no longer redeemable by the Company as set forth below.
Notwithstanding any of the foregoing, following the occurrence of any of the
events set forth in the above paragraph, all Rights that are, or (under certain
circumstances specified in the Rights Agreement) were, beneficially owned by an
Acquiring Person or an Adverse Person will be null and void. The events set
forth in the above paragraph are referred to as "Section 11(a)(ii) Events."

     For example, at an exercise price of $75.00 per Right, each Right not owned
by an Acquiring Person or an Adverse Person (or by certain related parties)
following an event set forth in the preceding paragraph would entitle its holder
to purchase $150.00 worth of Common Stock (or other consideration, as noted
above) for $75.00. Assuming that the Common Stock has a per share value of $30
at such time, the holder of each valid Right would be entitled to purchase 5
shares of Common Stock for $75.00.

     In the event that, at any time following the Stock Acquisition Date, (i)
the Company is acquired in a merger or other business combination transaction in
which the Company is not the surviving corporation (other than a merger which
follows an offer determined by the Board of Directors to be fair as described in
clause (ii) of the second preceding paragraph), or (ii) more than 50% of the
Company's assets or earning power is sold or transferred, each holder of a Right
(except Rights which previously have been voided as set forth above) shall
thereafter have the right to receive, upon exercise, that number of shares of
common stock of the acquiring company which equals the exercise price of the
Right divided by one-half of the current market price (as defined in the Rights
Agreement) of such common stock at the date of the occurrence of the event. The
events set forth in this paragraph and in the third preceding paragraph are
referred to as the "Triggering Events."

     At any time after the occurrence of a Section 11(a)(ii) Event, a majority
of the Continuing Directors may exchange the Rights (other than Rights owned by
an Acquiring Person or Adverse Person which have become void), in whole or in
part, at an exchange ratio of one share of Common Stock, or one Common Stock
Equivalent (as defined in the Rights Agreement), per Right (subject to
adjustment).

     The Purchase Price payable, and the number of Units of Preferred Stock or
other securities or property issuable, upon exercise of the Rights are subject
to adjustment from time to time to prevent dilution (i) in the event of a stock
dividend on, or a subdivision, combination or reclassification of, the Preferred
Stock, (ii) if holders of the Preferred Stock are granted certain rights or
warrants to subscribe for Preferred Stock or convertible securities at less than
the current market price of the Preferred Stock, or (iii) upon the distribution
to holders of the Preferred Stock of evidences of indebtedness or assets
(excluding regular quarterly cash dividends) or of subscription rights or
warrants (other than those referred to above).

     With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments amount to at least 1% of the Purchase
Price. No fractional Units will be

                                     -C-3-

<PAGE>

issued and, in lieu thereof, an adjustment in cash will be made based on the
market price of the Preferred Stock on the last trading date prior to the date
of exercise.

     In general, the Company may redeem the Rights in whole, but not in part, at
any time until ten days following the Stock Acquisition Date, at a price of $.01
per Right (payable in cash, Common Stock or other consideration deemed
appropriate by the Board of Directors). Under certain circumstances set forth in
the Rights Agreement, the decision to redeem shall require the concurrence of a
majority of the Continuing Directors. The Company may not redeem the Rights if
the Continuing Directors have previously declared a person to be an Adverse
Person. After the redemption period has expired, the Company's right of
redemption may be reinstated if either (i) an Acquiring Person reduces its
beneficial ownership to less than 15% of the outstanding shares of Common Stock
in a transaction or a series of transactions not involving the Company, or (ii)
the Board of Directors approves the merger of the Company with, or acquisition
of the Company by, a Person unrelated to the Acquiring Person. Immediately upon
the action of the Board of Directors ordering redemption of the Rights, with,
where required, the concurrence of the Continuing Directors, the Rights will
terminate and the only right of the holders of Rights will be to receive the
$.01 per Right redemption price.

     The term "Continuing Directors" means any member of the Board of Directors
of the Company who was a member of the Board of Directors on the date of the
Rights Agreement, and any person who is subsequently elected to the Board of
Directors if such person is recommended or approved by a majority of the
Continuing Directors, but shall not include an Acquiring Person, an Adverse
Person or an Affiliate or Associate of an Acquiring Person or an Adverse Person,
or any representative of the foregoing entities. The term "Independent
Directors" means Continuing Directors who are not officers of the Company.

     Until a Right is exercised, the holder thereof, as such, will have no
rights as a stockholder of the Company, including, without limitation, the right
to vote or to receive dividends. While the distribution of the Rights will not
be taxable to stockholders or to the Company, stockholders may, depending upon
the circumstances, recognize taxable income in the event that the Rights become
exercisable for Common Stock (or other consideration) of the Company or for
common stock of the acquiring company as set forth above.

     Other than those provisions relating to the principal economic terms of the
Rights, any of the provisions of the Rights Agreement may be amended by the
Board of Directors of the Company prior to the earlier to occur of the
determination that a person is an Adverse Person or the Distribution Date. After
the earlier of such events, the provisions of the Rights Agreement may be
amended by the Board of Directors (in certain circumstances, with the
concurrence of the Continuing Directors) in order to cure any ambiguity, to make
changes which do not adversely affect the interests of holders of Rights
(excluding the interests of any Acquiring Person or any Adverse Person), or to
shorten or lengthen any time period under the Rights Agreement; PROVIDED,
HOWEVER, that no amendment to adjust the time period governing redemption shall
be made at such time as the Rights are not redeemable.

                                     -C-4-

<PAGE>

     A copy of the Rights Agreement is available free of charge from the
Company. This summary description of the Rights does not purport to be complete
and is qualified in its entirety by reference to the Rights Agreement, which is
incorporated herein by reference.

                                     -C-5-<PAGE>

                                                                    Exhibit 10.3

                                                                    CONFIDENTIAL
                                                                    TREATMENT
                                                                    REQUESTED

                                AGREEMENT BETWEEN

                         INVESTORS BANK & TRUST COMPANY

                                       AND

                       ELECTRONIC DATA SYSTEMS CORPORATION

                    LARGE FINANCIAL INSTITUTIONS DIVISION

                                      FOR

                         INFORMATION TECHNOLOGY SERVICES

                               SEPTEMBER 20, 1995
<Page>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE I  DEFINITIONS ...................................................    1

ARTICLE II  TERM OF AGREEMENT ............................................    3

ARTICLE III  SCOPE OF WORK PROVIDED ......................................    3

ARTICLE IV  PAYMENT FOR SERVICES .........................................    9

ARTICLE V  INPUT AND OUTPUT DATA .........................................   11

ARTICLE VI  SAFEGUARDING OF DATA .........................................   12

ARTICLE VII  WAIVER ......................................................   12

ARTICLE VIII  LIMITATION OF LIABILITY ....................................   13

ARTICLE IX  TERMINATION ..................................................   14

ARTICLE X  MISCELLANEOUS .................................................   18

SCHEDULES

Schedule A           Price Schedule
Schedule B           Software
Schedule C           Performance Standards

                                        i
<Page>

                                    AGREEMENT

      This Agreement for Information Technology Services ("Agreement") dated
effective as of SEPTEMBER 20, 1995 ("Effective Date") is between Electronic Data
Systems Corporation, Large Financial Institutions Division, a Texas corporation
("EDS"), and Investors Bank & Trust Company, a Massachusetts state-chartered
bank and trust company ("Customer").

      The parties hereto entered into that certain Agreement for Information
Technology Services dated September 24, 1990 ("Original Agreement"), the term of
which would have otherwise expired on December 9, 1995. However, EDS and
Customer each desire to continue their relationship pursuant to the terms of
this Agreement. Therefore, EDS and Customer agree that, as of the Effective
Date, this Agreement supersedes and replaces the Original Agreement, and the
Original Agreement will be of no further force and effect from and after the
Effective Date.

      Under this Agreement, EDS will provide to Customer the information
technology services contemplated in this Agreement, and Customer will obtain all
its requirements for such services (with the exception of report and financial
printing described in SECTION 3.2 (h), which Customer may obtain elsewhere) from
EDS, at the prices set forth in SCHEDULE A, all upon the terms and conditions
set forth in this Agreement.

                                    ARTICLE I
                                   DEFINITIONS

For purposes of this Agreement:

1.1   "Abend" will mean abnormal ending in a processing cycle.

1.2   "ACF2" will mean the commercially available software package used to
      provide data security that is marketed under that name.

1.3   "Benchmark" will mean each Acceptable Performance Level for measuring EDS'
      performance set forth in PART II OF TABLE A OF SCHEDULE C, as revised
      pursuant to SECTION 3.3.

1.4   "Business Day" will mean each day that Customer is open to conduct full
      and normal business activities and will exclude weekend days and holidays
      that are both national banking holidays and holidays recognized by the New
      York Stock Exchange.

1.5   "CPU" will mean central processing unit.

                                       1
<Page>

1.6   "Customer Systems" will mean the application and operating systems that
      are owned by or otherwise provided by Customer and which are set forth on
      SCHEDULE B.

1.7   "DASD" will mean Direct Access Storage Device hardware.

1.8   "Data" will mean any and all information that is required to conduct
      Customer's affairs and that is delivered to, or maintained by, EDS.

1.9   "DSU" will mean Data Service Unit hardware.

1.10  "EDS IPC" will mean the EDS Information Processing Center located at Camp
      Hill, Pennsylvania, or such other EDS Information Processing Center as EDS
      may choose from time to time during the term of this Agreement.

1.11  "EDS Licensed Customer Applications" will mean certain systems that are
      licensed to Customer or licensed to EDS for the benefit of Customer and
      which are identified as "EDS Licensed Customer Applications" on SCHEDULE
      B.

1.12  "EDS*NET" will mean EDS' proprietary digital communications network.

1.13  "EDS Systems" will mean the application and operating systems that are
      owned by, licensed to, or otherwise provided by EDS, the majority of which
      are identified as "EDS Systems" on SCHEDULE B.

1.14  "Single Loss" will mean any one act or omission (or any series of related
      acts or omissions) that results in liability referred to in SECTION 8.2,
      unless such term is used in connection with a loss covered by Customer's
      Financial Institution Bond Insurance Policy (or its substitute), if
      Customer elects to maintain such policy, in which case it will mean all
      losses covered by such policy resulting from:

      (a)   any one act or series of related acts of burglary, robbery, or
            attempted thereat, in which no employee (as such term is defined in
            such policy) is implicated, or

      (b)   any one act or series of related unintentional or negligent acts or
            omissions on the part of any person, whether an employee (as such
            term is defined in such policy) or not, resulting in the damage to
            or destruction or misplacement of property (as such term is defined
            in such policy), or

                                       2
<Page>

      (c)   all acts or omissions other than those specified in the preceding
            subsections (a) and (b) caused by any person or in which such person
            is implicated, or

      (d)   any one casualty or event not specified in the preceding subsections
            (a), (b), or (c).

1.15  "TSO" will mean the software utility known as "Time Sharing Option."

1.16  "WSF2" will mean the output archival utility.

                                   ARTICLE II
                                TERM OF AGREEMENT

2.1   The term of this Agreement will begin on the Effective Date and will
      continue until December 31, 2000.

2.2   The term of this Agreement may be extended beyond December 31, 2000, by a
      written election by Customer to extend the term of this Agreement by up to
      three additional one year periods, which election(s) will be made not less
      than six months prior to the next date this Agreement would otherwise
      expire. EDS will give Customer notice of each date on which Customer may
      elect to extend this Agreement at least thirty days before such date.

                                   ARTICLE III
                             SCOPE OF WORK PROVIDED

3.1   EDS will perform the services set forth in this Agreement as an
      independent contractor in accordance with its own methods, subject to its
      compliance with the provisions of this Agreement and all applicable laws,
      ordinances, and regulations. In performing such services, EDS will provide
      to Customer the same quality of service as that provided to EDS' other
      customers. If Customer's processing is behind schedule, EDS will use its
      best reasonable efforts to get Customer' s processing back on schedule.

3.2   EDS will provide Customer with the following services and make available
      to Customer the following EDS Systems and hardware:

      (a)   PRIMARY FACILITIES. The primary information processing center
            ("IPC") facilities located at the EDS IPC that will be available to
            Customer will consist of an IBM or IBM compatible CPU running the
            systems set forth in Schedule B and the following hardware: IBM or
            compatible

                                       3
<Page>

            DASD, tape cartridge and tape reel drives, and a climate controlled
            data center with raised floor to house such hardware. EDS will also
            make available to Customer as the primary print facility for
            services under this Agreement the EDS print facility located in
            Boston, Massachusetts, that houses Xerox high-speed laser printers
            which will provide simplex, duplex, and quadriplex printing and IBM
            or IBM compatible impact printers which will provide printing for
            special forms and other special request needs. The EDS IPC will
            maintain a help desk twenty-four hours a day, seven days a week.

      (b)   BACKUP FACILITIES. EDS will provide backup data center facilities
            consisting of alternate CPU, DASD, tape drives, and system software
            and programming tools. Backup facilities will be located on-site at
            the EDS IPC as well as off-site at such alternate EDS IPC as EDS may
            determine.

      (c)   CONTINGENCY PLANNING, DISASTER RECOVERY AND PREVENTION. The parties'
            responsibilities with respect to contingency planning will be as
            follows:

            (i)   EDS will develop, maintain (with Customer's assistance and
                  approval) and, as necessary in the event of a disaster,
                  execute a disaster recovery plan (the "EDS Plan") for EDS IPC
                  that is consistent with this Agreement and EDS' overall
                  disaster recovery policy. EDS will provide to Customer and its
                  auditors and inspectors such access to the EDS Plan as
                  Customer may reasonably request from time to time. EDS will
                  not be required to provide access to information of other EDS
                  customers.

                  (A)   Disaster recovery and prevention will be provided by EDS
                        by means of alternate on-site and off-site hardware
                        components in the EDS IPC and the alternate EDS IPC
                        referred to in SECTION 3.2(b) which are housed in EDS
                        data center facilities utilizing an uninterruptable
                        power source for interim back-up power (for up to 30
                        minutes) and diesel generators for ongoing back-up
                        power. Tapes of applications and Data will be stored
                        off-site from the EDS IPC at a strategically located
                        facility selected by EDS.

                  (B)   EDS has a disaster recovery policy to prepare to move to
                        the alternate EDS IPC upon determination that the EDS
                        IPC may suffer an

                                       4
<Page>

                        outage expected to last for more than four hours but
                        less than twenty four hours and to commence moving to
                        the alternate EDS IPC immediately upon determination
                        that the EDS IPC may suffer an outage expected to last
                        for more than twenty four hours. EDS will notify
                        Customer prior to placing into effect any revisions to
                        such policy.

                  (C)   At no additional charge to Customer, EDS will devote up
                        to forty man-hours a year to testing such disaster
                        recovery plan, which testing would occur during a
                        scheduled drill. During this annual drill, Customer may
                        also test the recovery plan for its Customer Systems at
                        no charge; however, additional charges may apply if such
                        test utilizes non-standard testing requirements. Any
                        non-standard testing requirements and the associated
                        additional charges will be identified prior to the
                        drill.

            (ii)  Customer will, at its expense, develop, maintain and, as
                  necessary in the event of a disaster, execute a business
                  resumption plan (the "Customer Plan") for all Customer
                  locations and the telecommunications links between the
                  Customer locations and the EDS IPC and will provide to EDS
                  such access to the Customer Plan as EDS may reasonably request
                  from time to time. Customer will also be responsible for
                  providing, at Customer's expense and with assistance from EDS,
                  the telecommunications equipment necessary to connect between
                  Customer's locations and the alternate EDS IPC, and Customer
                  will pay all telecommunications usage charges associated with
                  any drill or execution of the EDS Plan or Customer Plan.

            (iii) EDS will provide to Customer such information as may be
                  reasonably required for Customer to assure that the Customer
                  Plan is compatible with the EDS Plan.

            (iv)  Each party will be responsible for the training of its own
                  personnel as required in connection with all applicable
                  contingency planning activities.

            (v)   Each party's contingency planning activities will comply, as
                  appropriate, with such of the following regulatory policies as
                  may be applicable to Customer's business, as the same may be
                  amended or replaced from time to time: a. Federal Deposit

                                       5
<Page>

                  Insurance Corporation Bank Letter BL-22-88 dated July 14,
                  1989; b. Federal Reserve System Supervision and Regulation
                  Number SR-89-16 dated August 1, 1989; c. Office of the
                  Comptroller of the Currency Banking Circular Number BC177
                  dated July 12, 1989; and d. Office of Thrift Supervision
                  Bulletin Number TB30 dated July 19, 1989. If compliance with
                  any amendments or replacements of the policies listed above
                  would significantly increase EDS' cost of providing services,
                  EDS will be entitled to increase the charges under this
                  Agreement by an amount that reflects a pro rata allocation of
                  EDS' increased cost among the applicable EDS customers,
                  including Customer.

      (d)   DATA AND FACILITY SECURITY. The primary and back-up data centers
            will be physically secured for limited access. All entrances to the
            EDS IPC will be monitored twenty-four hours a day by video cameras
            and armed security guards. Such guards will patrol all EDS IPCs
            twenty-four hours a day, seven days a week, limit access to all EDS
            IPCs to designated individuals through a card access system that
            locks and controls all external doors, admit visitors only under
            controlled conditions, and constantly monitor building security and
            access and log discrepancies. Access to computer rooms will be
            limited to employees who can enter only by inserting magnetic cards
            into a reader and entering correct access codes issued to employees
            with a need for access to a specific area. EDS will protect physical
            resources and personal information at the EDS IPC against theft or
            purposeful damage and provide protection of the EDS IPC against
            damage from external conditions such as fire and water. The EDS IPC
            will be supported by an uninterruptable power source for interim
            back-up power (for up to 30 minutes) and diesel generators for
            on-going back-up power to prevent loss of Data. EDS will provide
            ACF2 data security and ACF2 reports of unauthorized attempts to
            enter the system.

      (e)   OPERATIONS SUPPORT. EDS will provide data center operations support,
            which will include ongoing maintenance and job scheduling. EDS will
            notify Customer of application Abends, but will not attempt
            resolution of any such Abends, and will provide cycle monitoring.
            EDS will provide operations support including hardware, network, and
            software support for EDS Systems. EDS will not provide application
            software support for EDS Licensed Customer Applications.

      (f)   HARDWARE AND SYSTEM SOFTWARE. EDS will make available to Customer
            the hardware and EDS Systems described in

                                       6
<Page>

            SECTION 3.2(a) every day for on-line processing from 7:00 a.m.,
            Massachusetts time, until the time Customer notifies EDS to commence
            the daily cycle (usually between 8:00 p.m. and 9:00 p.m. that
            evening, Massachusetts time), and twenty four hours a day for TSO
            and batch processing, with the exception of downtime for regular
            maintenance which will be scheduled to prevent interference with
            Customer's processing.

      (g)   TELECOMMUNICATIONS NETWORK. EDS will provide the network lines from
            Customer's site to the EDS IPC. Customer is responsible for the DSU
            at its site and all internal equipment from such DSU. Customer and
            EDS will from time to time mutually agree upon any additional
            telecommunications equipment and back-up equipment required during
            the term of this Agreement and the charges therefor.

      (h)   REPORT AND FINANCIAL PRINTING. EDS will provide report and financial
            printing at EDS' Boston data center utilizing laser and impact
            printers. Printed reports will be available for pick-up by
            Customer's courier. Customer may reject printed reports that are
            unacceptable in quality within two (2) days after receipt and EDS
            will reprint or cause to be reprinted such reports and have them
            redelivered to Customer as soon as possible at no additional cost to
            Customer.

      (i)   MICROFICHE. EDS will provide microfiche originals and copies at EDS'
            Boston data center or through use of a subcontractor, at EDS'
            discretion. Microfiche will be available for pick-up by Customer's
            courier. Customer may reject microfiche that is unacceptable in
            quality within two (2) days after receipt and EDS will reprint or
            cause to be reprinted such microfiche and have them redelivered to
            Customer as soon as possible at no additional cost to Customer.

      (j)   RUNTIME IMPROVEMENT. Throughout the term of this Agreement, EDS,
            through the account manager described in SECTION 3.2(k), and
            Customer, through its designated representative, will work to
            improve Customer's processing efficiencies. Without limiting the
            generality of the previous sentence, during the term of this
            Agreement, EDS will make available at no charge up to one hundred
            fifty (150) man-hours of the time of EDS systems engineers to
            consult with and advise Customer regarding reduction of resource
            usage.

      (k)   ACCOUNT MANAGER. EDS will provide an account manager to Customer who
            will be available to Customer on a full-time basis if Customer
            elects to utilize such account manager

                                       7
<Page>

            to that extent. Customer will provide reasonable work space,
            furnishings, services (including telephone, modem hook-up or EDS*Net
            systems network architecture ("SNA") connection, telecopy and
            photocopy equipment, janitorial service, etc.), and supplies, for
            use when on-site presence is required. The account manager will be
            available for Customer's calls after normal business hours. The
            account manager will prepare a monthly statistical report and
            interim notifications about changes in the hardware or software
            environment made available to Customer under this Agreement. The
            account manager will attend periodic status meetings with Customer's
            management to review other pertinent topics.

      (l)   SPECIAL FORMS AND CHECKS. EDS will stock special forms and checks
            provided by Customer according to a stocking plan maintained by
            Customer and EDS. EDS will deliver to Customer all printed checks
            and all checks rendered unusable and will implement strict control
            procedures acceptable to Customer over EDS' stock of checks provided
            by Customer according to the stocking plan. EDS will be responsible
            for direct damages up to the limits of liability set forth in
            Section 8.2 for unauthorized or fraudulent use of the checks or
            printed signature images of Customer in EDS' possession from the
            time such items come into the possession of EDS until the items are
            delivered into the possession of Customer.

      (m)   CERTAIN CHANGES. EDS will make the following changes and additions
            as soon as practicable but in no event later than the time
            parameters indicated below:

            <Table>
            <Caption>
            CHANGE/ADDITION                          TIME PARAMETER
            ---------------                          --------------
                <S>                                  <C>
                TSO ID's                             Two Business Days
                EDS*NET ID's                         Three Business Days
                Terminal ID's                        Four weeks
                Security parameters                  Two weeks
                Report delivery                      Two Business Days
                </Table>

3.3   If EDS' performance falls below any of the "Acceptable Performance Levels"
      as indicated in SCHEDULE C, as they may be revised from time to time by
      mutual agreement of the parties. Customer will notify EDS of the problem.
      After such notice, Customer and EDS will mutually determine the cause of
      the performance problem. If the cause is solely under EDS' control, EDS
      will use its best reasonable efforts and all necessary resources to
      restore performance to the Acceptable Performance Level as soon as
      possible at no cost to Customer. If the cause is not solely under EDS'
      control, Customer and EDS will each use its best reasonable efforts to
      improve actual performance to the applicable Acceptable Performance Level
      at no cost to Customer except for the costs of

                                       8
<Page>

      resources utilized (as set forth in SCHEDULE A) and other mutually agreed
      costs, and, if unsuccessful, will revise the applicable Acceptable
      Performance Level.

3.4   Customer will provide timely decisions and necessary system modifications
      to support IPC technology upgrades. Customer will pay all costs incurred
      due to its requirement that EDS use prior models of hardware, non-current
      releases of software, or a particular non-standard operating methodology
      at the IPC. Prior to making any changes in the EDS IPC processing
      environment that may affect Customer's software application environment,
      EDS will give Customer reasonable notice of such changes to permit
      Customer to make any necessary modifications to its application
      environment.

                                   ARTICLE IV
                              PAYMENT FOR SERVICES

4.1   In consideration for the services, equipment and EDS Systems provided by
      EDS as described in Article III, Customer will pay EDS as follows:

      (a)   A monthly service fee, calculated in accordance with SCHEDULE A,
            plus once each year at the applicable time the amount of the annual
            insurance premium described in SECTION 10.3.

      (b)   for EDS Licensed Customer Applications, a charge equal to the
            vendor's invoice, plus 20% (or if the EDS Licensed Customer
            Applications are shared by multiple customers, Customer's allocated
            share of the invoice, plus 20%), plus installation charges.

      (c)   for telecommunications circuits, equipment and maintenance, a charge
            equal to (i) EDS' then current commercial rate for the item or
            service, if EDS has established a commercial rate for such item, or
            (ii) the vendor's invoice, plus 20%, if EDS has not established a
            commercial rate for such item.

      (d)   for network connection, a charge calculated as provided on
            SCHEDULE A.

      (e)   for freight and delivery, a charge equal to the vendor's invoice,
            plus 20%.

      (f)   EDS will submit to Customer the following invoices (which invoices
            may be combined as appropriate):

            (i)   the monthly service fee,

            (ii)  other services described in this Agreement, and

                                       9
<Page>

            (iii) services agreed upon by the parties from time to time.

            Each invoice will be submitted as soon as practical (generally 30
            days) after the applicable billing period cutoff for the service.
            The billing period cutoff for processing (e.g. the monthly service
            fee) and other services is at mid-month. The cut-off for print
            services is at month-end. EDS and Customer may from time to time
            agree to adjust the billing period cutoff times.

      (g)   Each invoice will be in a form reasonably acceptable to Customer,
            including a report describing Customer's actual resource utilization
            and associated fee, and detail regarding the categories of resource
            use and volumes, unit prices, extended charges, and, if applicable,
            volume discounts and multiple print modes. EDS will disclose the
            methods and tools used to collect usage information and to calculate
            or adjust raw data, as well as the raw data itself at Customer's
            request. EDS will maintain one year of resource usage data from
            which monthly reports will be generated listing charges by access
            code and by resource unit (see SCHEDULE A for a listing of resource
            unit categories). EDS will also provide weekly reports listing
            Customer's DASD data sets and daily CPU time for scheduled
            production jobs. EDS will run queries and produce reports from this
            data base at Customer's request. A reasonable number of requests for
            queries and reports by Customer for the purpose of clarifying
            billing information will be provided at no additional charge.
            Otherwise, requests for queries and reports will be provided at
            Customer's expense, based on the applicable resource rates set forth
            in SECTION 1 of SCHEDULE A. Except as provided in SECTION 4.3, there
            will be no changes in unit prices unless mutually agreed by the
            parties in writing.

      (h)   Payment of each invoice will be due 10 days after receipt of such
            invoice by Customer. Payment will be delivered by Customer to EDS at
            the address set forth on the invoice. If payment in full is not made
            within thirty days after the date of the invoice, a finance charge
            of the lesser of: (i) the base (or prime) rate established from time
            to time by Citibank, N.A., or (ii) the highest rate of interest
            allowed by applicable law (the lesser of which will be referred to
            as the "Late Payment Interest Rate"), will be applied to the unpaid
            balance of the invoice until paid. If Customer successfully disputes
            any fees assessed or charged by EDS, EDS will promptly refund the
            fees which were not owed by Customer, together with interest at the
            Late

                                       10
<Page>

            Payment Interest Rate calculated from the date payment of such fees
            was received by EDS until refunded.

4.2   Customer may request from time to time that EDS provide services in
      addition to those set forth in this Agreement. In consideration for the
      agreement by EDS to perform such additional services, Customer will pay
      to EDS the charges agreed upon by the parties or charges calculated based
      on EDS' then current commercial rates, plus the out-of-pocket expenses
      incurred by EDS with the prior approval of Customer. However, if the
      additional services are provided through EDS by a vendor, charges will be
      equal to the vendor's charge, plus 20%. Unless otherwise agreed by the
      parties, all of the terms and conditions of this Agreement will be
      applicable to the additional services.

4.3   Customer will pay or reimburse EDS for any taxes, tariffs, or license fees
      of any taxing authority, however delegated or designated, levied or based
      on this Agreement or the systems, products, or services to be provided
      hereunder or on their sale, license, or use, or any action taken under
      this Agreement, exclusive, however, of any taxes based on EDS' net income
      and any corporate excise tax attributable to EDS as a result of its doing
      business in any jurisdiction. Any taxes assessable on the systems,
      products, or services to be provided under this Agreement on or after
      delivery will be borne by Customer. EDS may issue a separate invoice for
      such taxes and related charges under this Section.

                                    ARTICLE V
                              INPUT AND OUTPUT DATA

5.1   Any tapes or other Data to be furnished by Customer in order that EDS may
      provide the services set forth in ARTICLE III must be compatible with EDS'
      equipment and must be in good condition for machine processing. In
      addition, if Customer furnishes any program or system, other than those
      described as Customer Systems on SCHEDULE B, to EDS for use by EDS in
      providing services hereunder, Customer and EDS will negotiate in good
      faith to establish, in advance of installation, a plan for the review,
      testing, installation, and related costs, if any, of such software in
      order to ensure the compatibility of such software with EDS' operating
      environment and information technology techniques. EDS will not be
      required to provide application software support for any EDS Licensed
      Customer Applications.

5.2   EDS will take reasonable precautions to protect and secure all tapes and
      other Data furnished to it by Customer for performance under this
      Agreement.

                                       11
<Page>

5.3   If Data submitted by Customer to EDS for processing is incorrect,
      incomplete, or not in the form referred to in SECTION 5.1, Customer agrees
      either to correct or complete such Data or otherwise prepare it for
      processing or, alternatively, to pay EDS at the then current commercial
      rates for the additional work performed by EDS to correct or complete such
      Data or otherwise prepare it for processing, at Customer's election. In
      the event such additional work by EDS is necessary, EDS will use its best
      reasonable efforts to reschedule and process Customer's work as promptly
      as possible, but in any event, the time schedule for processing all such
      Data will be extended appropriately.

5.4   EDS will be responsible for correction of any errors or omissions in the
      processing, transmission, or output of Data for which EDS is the sole
      cause, without additional charge to Customer.

                                   ARTICLE VI
                              SAFEGUARDING OF DATA

EDS will establish and maintain mutually acceptable, reasonable safeguards
against the destruction or loss of Data in the possession of EDS. Customer will
be responsible for establishment of instructions for data retention and archival
including maintenance of duplicate records, and EDS will be responsible for
following such instructions. Customer will duplicate critical archive files and
will identify such files to EDS for permanent retention and off-site storage. If
any Data are lost, damaged, or destroyed while in the sole possession or under
the exclusive control of EDS because EDS has not exercised reasonable care. EDS
will, at its expense, reconstruct such Data, and will reimburse Customer for
amounts paid by Customer to its employees as overtime, as a result of the loss
or destruction of such Data.

                                   ARTICLE VII
                                     WAIVER

No material covenant, condition, or undertaking contained in this Agreement may
be waived except by written agreement of the parties, and forbearance or
indulgence in any other form by either party in any regard whatsoever will not
constitute a waiver of the covenant, condition, or undertaking to be kept or
performed by the party to which the same may apply, and until complete
satisfaction or performance of all such covenants, conditions, or undertaking
the other party will be entitled to invoke any remedy available under this
Agreement, or under law, despite any such forbearance or indulgence. Any such
waiver will not constitute a waiver of any previous or subsequent breach of such
covenant, condition, or undertaking or any other covenant, condition, or
undertaking.

                                       12
<Page>

                                  ARTICLE VIII
                             LIMITATION OF LIABILITY

8.1   EDS will perform in accordance with the performance standards set forth in
      SCHEDULE C. EDS will not be liable to Customer for any expense, claim,
      loss, or damages suffered by reason of EDS' performance of this Agreement
      unless Customer provides EDS with notice of its claim as soon as Customer
      becomes aware that any such expense, claim, loss, or damages exist or may
      exist, but in no event will Customer fail to provide EDS with notice
      thereof later than eighteen months from the date the term of this
      Agreement expires.

8.2   Either party's liability, if any, to the other, or to any third person for
      any expense, claim, loss, or damages arising out of or in any way related
      to its failure to perform its obligations hereunder from any cause,
      including negligence, other than such liability as may arise under SECTION
      8.3, will be limited to an amount not to exceed One Million Dollars
      ($1,000,000.00) per Single Loss, except that to the extent that EDS'
      liability is covered by the data processing errors and omissions insurance
      policy referred to in SECTION 10.3, such greater amount will be in
      addition to such limit of One Million Dollars ($1,000,000).

8.3   NEITHER PARTY WILL IN ANY EVENT BE LIABLE TO THE OTHER FOR SPECIAL,
      CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES UNDER ANY CIRCUMSTANCES,
      WHETHER OR NOT CAUSED BY ITS NEGLIGENCE.

8.4   Any dispute, controversy, or claim arising out of, in connection with, or
      relating to this Agreement, or the breach, termination, validity, or
      enforceability of any provision of this Agreement shall be resolved by
      final and binding arbitration by a panel of three (3) arbitrators in
      accordance with and subject to the Commercial Arbitration Rules of the
      American Arbitration Association then in effect. Each party shall
      promptly select one arbitrator within five Business Days and the two
      arbitrators so selected shall promptly select the third arbitrator within
      five Business Days. Discovery in the forms permitted by the Federal Rules
      of Civil Procedure then in effect shall be allowed in connection with such
      arbitration to the extent consistent with the purpose of the arbitration
      and as allowed by the arbitrators. Such arbitrators are authorized to
      render awards of monetary damages, direction to take or refrain from
      taking action, or both. Each party will bear its own costs and expenses of
      arbitration, although the arbitrators are authorized to award such costs
      and expenses to a party as part of its monetary damages if such award is
      fair and equitable. Judgment upon the award rendered in any such
      arbitration may be entered in any court of competent

                                       13
<Page>

      jurisdiction, or application may be made to such court for judicial
      acceptance and enforcement of the award, as the law of such jurisdiction
      may require or allow. EDS shall continue to provide services hereunder
      during any such arbitration proceedings and Customer shall continue to
      make payments, other than any disputed payments, to EDS in accordance
      with this Agreement. The fact that arbitration has or may be allowed shall
      not impair the exercise of any termination right in accordance with this
      Agreement.

8.5   Any limitation of the amount or type of damages or remedies recoverable
      through arbitration by one party against another provided for in this
      Agreement will not apply to acts or omissions of gross negligence or
      willful misconduct.

                                   ARTICLE IX
                                   TERMINATION

9.1   (a)   In the event that either EDS or Customer materially or repeatedly
            defaults in the performance of any of its duties and obligations
            hereunder, which default will not be substantially cured within five
            days after written notice to the defaulting party if a default in
            the payment of money, or for any other default within forty-five
            days after written notice is given to the defaulting party,
            specifying the default, or with respect to those defaults (other
            than a payment of money) which cannot be cured within forty-five
            days if the defaulting party fails to proceed within five days to
            commence curing said default and thereafter to proceed with all due
            diligence to substantially cure the same, then the party not in
            default may, upon giving written notice thereof to the defaulting
            party, terminate this Agreement as of a date specified in such
            notice, which date will not be less than thirty days from the giving
            of termination notice. EDS may not terminate this Agreement for
            nonpayment in the case of any charge set forth in any invoice that
            Customer disputes in good faith, provided that Customer will
            promptly pay any such amount upon resolution of the dispute in EDS'
            favor.

      (b)   (i)   Notwithstanding the termination rights set forth in SECTION
                  9.1(a), if EDS recurrently performs below one of the
                  performance levels set forth in TABLE A OF SCHEDULE C, which
                  substandard performance is solely caused by EDS, during the
                  time periods described in COLUMN I OF TABLE B OF SCHEDULE C,
                  Customer may give EDS written notice of its intention to
                  terminate this Agreement at the end of the applicable cure
                  period described

                                       14
<Page>

                  in COLUMN III OF TABLE B OF SCHEDULE C. Should EDS not achieve
                  performance consistent with the acceptable performance levels
                  in SCHEDULE C within such cure period, Customer may terminate
                  this Agreement.

            (ii)  Should EDS achieve performance consistent with the acceptable
                  performance levels in SCHEDULE C within such cure period
                  referred to in the preceding Subsection, Customer and EDS will
                  monitor EDS' performance during the succeeding number of days
                  indicated in COLUMN I OF TABLE B OF SCHEDULE C to mutually
                  determine whether actions taken by EDS constitute a cure.

            (iii) EDS will be deemed to have recurrently performed below one of
                  the performance levels set forth in SCHEDULE C when its
                  performance of a particular performance criterion falls below
                  the applicable performance level more often than is permitted
                  under TABLE B OF SCHEDULE C. For example, EDS' failure to
                  provide on-line production availability on a daily average of
                  less than four hours for more than three Business Days within
                  forty-five consecutive Business Days, which is the criteria
                  applicable to the "Unacceptable Performance Level" indicated
                  on SCHEDULE C, or on a daily average of less than 98% for more
                  than five Business Days within thirty consecutive Business
                  Days, which is the criteria applicable to the Acceptable
                  Performance Level, if caused solely by EDS, would be deemed to
                  be recurring substandard performance. and would permit
                  Customer to give EDS written notice of its intention to
                  terminate this Agreement. In the event such notice was given
                  and if EDS could not cure performance below the unacceptable
                  Performance Level within two Business Days, the applicable
                  cure period set forth in TABLE B OF SCHEDULE C for such
                  performance level, or cure performance below the Acceptable
                  Performance Level within seven Business Days, the applicable
                  cure period for such performance level, this Agreement may be
                  terminated. Failures by EDS to meet more than one performance
                  level within the applicable time periods may not be
                  accumulated to deem EDS to have recurrently failed to meet
                  such levels unless EDS recurrently performs below each such
                  level; provided that if EDS performs in a manner that more
                  than twenty incidents of substandard performance on a
                  cumulative basis occurs within any thirty consecutive Business

                                       15
<Page>

                  Days, EDS will be deemed to have recurrently performed below
                  the performance standards on a cumulative basis and, upon
                  written notice from Customer of its intention to terminate
                  this Agreement, EDS will have ten Business Days to institute
                  a cure calculated to prevent such recurrent, cumulative,
                  substandard performance. The monitoring procedure described in
                  SUBSECTION 9.1(b)(ii) would apply to such cure.

      (c)   Notwithstanding the performance standards and the cure procedure
            described in SECTION 9.1(b), if EDS is prevented from materially
            performing its duties and obligations under this Agreement for more
            than seventy-two consecutive hours for any reason, Customer will
            have the right to terminate this Agreement by giving written notice
            to EDS.

9.2   (a)   Customer or EDS may terminate this Agreement at any time after EDS
            has paid monetary damages pursuant to this Agreement of One Million
            Dollars ($1,000,000.00) or more, provided that written notice of
            such termination is given at least sixty days before the
            contemplated date of termination.

      (b)   Customer may terminate this Agreement at any time in the event that
            (i) EDS fails to maintain the data processing error and omissions
            policy in accordance with SECTION 10.3 (provided Customer has paid
            the amounts referred to in SECTION 10.3), or (ii) any valid claim is
            made upon Customer's bond referred to in SECTION 1.13 in connection
            with any expense, claim, loss, or damage arising out of or in any
            way related to the performance (or failure to perform) by EDS or any
            of its directors, officers, employees, consultants, or agents of
            their respective obligations under this Agreement for any cause,
            including negligence.

      (c)   In the event that EDS elects to terminate this Agreement pursuant to
            SECTION 9.2(a) or Customer elects to terminate this Agreement
            pursuant to SECTION 9.2(b), the terminating party will pay the
            reasonable out-of-pocket and internal costs incurred in connection
            with the conversion of Customer Systems to an information
            processing center not owned by EDS; provided that the maximum amount
            a terminating party will be required to pay under this SECTION
            9.2(c) will be One Hundred Thousand Dollars ($100,000.00) in the
            aggregate; provided further that the amount a terminating party will
            be required to pay for internal costs will not exceed Fifty Thousand
            Dollars ($50,000.00).

                                       16
<Page>

9.3   EDS will be excused from performance hereunder for any period EDS is
      prevented in whole or in part from performing any service pursuant hereto
      as a result of an act of God, war, civil disturbance, court order, or
      other cause beyond its reasonable control provided that, and only so long
      as, EDS uses its best reasonable efforts to comply with the disaster
      recovery plan referred to in SECTION 3.2(c). Such non-performance will not
      be a ground for default or termination except as provided in this SECTION
      9.3. In the event EDS will be excused from performance under this Section,
      EDS will use its best reasonable efforts to provide directly or
      indirectly, and to the extent practicable, alternate performance,
      including, without limitation, using other data centers maintained by EDS
      and permitting Customer employees to have access to such EDS facilities
      and to the Customer Systems, EDS Systems, and Data files used in
      processing Customer's business. If the data processing system is in the
      possession of Customer, Customer agrees that it will keep the EDS Systems
      confidential and will not disclose its contents to any third person, and
      upon resumption of performance by EDS, such EDS Systems will be promptly
      returned to EDS. If any such contingency excuses EDS' performance
      hereunder, Customer may elect to:

      (a)   Arrange for the performance by others of those services which were
            to be performed by EDS hereunder. Customer will make known to EDS
            the actual cost of such performance, and EDS will reimburse Customer
            for all such costs (including any one-time conversion costs) that
            exceed the amount that would have been paid to EDS had EDS rendered
            such services.

      (b)   Terminate this Agreement at any time upon written notice to EDS, as
            described in SECTION 9.1(c), should such contingency prevent EDS
            from materially performing its duties and obligations under this
            Agreement for more than seventy-two consecutive hours. In the event
            of such termination, EDS would be excused, and Customer hereby
            releases EDS, from performance under this Agreement except as
            provided in SECTIONS 9.5 AND 10.1.

9.4   Subject to the provisions of Title 11, United States Code, either party,
      in its discretion, may terminate this Agreement at any time upon written
      notice to the other in the event of any of the following:

      (a)   The commencement of any proceeding, whether under court supervision
            or otherwise, for the liquidation of the other;

      (b)   The insolvency of the other;

                                       17
<Page>

      (c)   The making of any assignment for the benefit of creditors by the
            other; or

      (d)   The filing of a petition in bankruptcy by or against the other under
            any bankruptcy or debtor's law for its relief or reorganization, or
            for the composition, extension, or arrangement for adjustment of its
            obligations. However, such right or termination will not accrue in
            the event of a filing against either party of an involuntary
            petition to have such party declared bankrupt and in which such
            party does not acquiesce, if such petition is dismissed within sixty
            days of the date of such filing.

9.5   In the event of any termination, EDS will continue to provide the services
      described in this Agreement and will cooperate with Customer as reasonably
      necessary to effect an orderly conversion of Customer information
      technology requirements to Customer or a third party, for which services
      Customer will pay at the rates set forth in SCHEDULE A, provided that
      payments to EDS are secured in form satisfactory to EDS and amount
      consistent with the anticipated amount of charges calculated in accordance
      with this Agreement.

                                    ARTICLE X
                                  MISCELLANEOUS

10.1  OWNERSHIP OF DATA. Customer Systems and Data will be and remain the
      property of Customer and be returned to Customer by EDS promptly after
      termination of this Agreement. All Customer Systems and Data are and will
      be the exclusive property of Customer, which EDS will keep free of all
      claims, liens, and encumbrances. Upon request by Customer or at the
      expiration of the Operational Period, EDS will return all Data and
      Customer Systems to Customer in format reasonably requested by Customer,
      for which Customer will pay the cost of materials for electronic media to
      EDS. The limitation of liability set forth in SECTION 8.2 will not apply
      in the event EDS wrongfully fails to comply with this Section.

10.2  ASSIGNMENT OF AGREEMENT. This Agreement will be binding on the parties and
      their heirs, successors, and assigns, but neither party may assign this
      Agreement without the prior written consent of the other, except to a
      corporation owned by or under common control with the assignor and except
      as provided hereafter. The following transactions shall not require
      approval of Customer under this Section and shall not be deemed an
      assignment of this Agreement by EDS: any merger (including without
      limitation a re-incorporation merger), consolidation, reorganization,
      stock exchange, sale of stock or substantially all of the assets or other
      similar or

                                       18
<Page>

      related transaction in which (i) EDS is the surviving entity, or (ii) if
      EDS is not the surviving entity, the surviving entity continues to conduct
      the business conducted by EDS prior to consummation of the transaction.
      The following transactions shall not require approval of EDS under this
      Section and shall not be deemed an assignment of this Agreement by
      Customer: any merger (including without limitation a re-incorporation
      merger), consolidation, reorganization, stock exchange, sale of stock or
      substantially all of the assets or other similar or related transaction in
      which (i) Customer is the surviving entity, or (ii) if Customer is not the
      surviving entity, the surviving entity continues to conduct the business
      conducted by Customer prior to consummation of the transaction.

10.3  ACCIDENTS, INJURIES AND PROPERTY DAMAGES. EDS will indemnify and hold
      harmless Customer from any loss, damage, cost, or expense which it may
      sustain or incur by reason of, or arising from, any accident or injury to
      personnel or employees of EDS, as well as any loss, damage, or destruction
      of the property owned, leased, or used by EDS in the course of EDS' work
      in the performance of this Agreement. Customer will indemnify and hold
      harmless EDS from any loss by reason of, or arising from, any accident or
      injury to the personnel of Customer, as well as any loss, damage, or
      destruction of property owned, leased, or used by Customer in the course
      of receiving services for EDS under this Agreement. Each Party agrees to
      maintain adequate insurance coverage or reserves against the risks it
      assumes, in keeping with sound business practices, and will notify the
      other of any material decrease in coverage or reserves, or substantial
      claim made against such coverage or reserves. EDS will maintain at its own
      expense during all times when its employees are on Customer's premises
      worker's compensation, unemployment, disability, and liability insurance
      or reserves for itself and its employees and will provide to Customer,
      upon request, certification thereof. EDS will also maintain a data
      processing errors and omissions insurance policy, with coverage
      satisfactory to Customer, of at least Ten Million Dollars ($10,000,000),
      applying only to work performed by EDS for Customer; provided that, upon
      presentation by EDS to Customer of a receipt for payment thereof, Customer
      will promptly reimburse EDS each year an amount equal to (a) the annual
      premium for such policy, less (b) the amount of any increase in such
      premium due to the loss experience of EDS. At Customer's request, EDS will
      provide Customer with a copy of the errors and omissions insurance policy
      obtained in accordance with this Section.

10.4  CONFIDENTIALITY OF INFORMATION. EDS will not have or claim any rights to
      or interests in any Customer information, Data, Customer Systems,
      programs, or practices and procedures with

                                       19
<Page>

      respect to Customer' s operations and Customer will not have or claim any
      rights to or interests in any EDS Systems, programs, or practices and
      procedures with respect to EDS' operations. EDS recognizes and agrees that
      all Data and Customer Systems and any materials, documents, or information
      pertaining thereto are proprietary to Customer and constitute trade
      secrets. Customer recognizes and agrees that all EDS Systems and any
      materials, documents, or information pertaining thereto are proprietary to
      EDS and constitute trade secrets. All information with respect to such
      trade secrets communicated by one party to the other, either before or
      after the date of this Agreement, will be received in strict confidence,
      will be used only for the purposes of this Agreement, and that no such
      information will be disclosed by the recipient party without the prior
      written consent of the other party, except as provided herein, or as may
      be necessary by reason of legal, accounting, or regulatory requirements.
      However, this Section will not apply to proprietary information owned by
      one party which:

      (a)   Is already known by the other party; or

      (b)   Is or becomes publicly known through no wrongful act of the other
            party; or

      (c)   Is rightfully received by the other party from a third party without
            a similar restriction and without breach of this Agreement; or

      (d)   Is independently developed by the other party without breach of this
            Agreement; or

      (e)   Is furnished to a third party by the party owning the information
            without a similar restriction on the third party's right; or

      (f)   Is approved for release by written authorization of the party owning
            the information.

      Customer may disclose the contents of this Agreement (other than SCHEDULE
      A) to customers and clients of Customer provided that Customer obtains
      EDS' prior written consent which may not be unreasonably withheld. The
      limitation of liability set forth in SECTION 8.2 will not apply to the
      party that wrongfully fails to comply with this Section.

10.5  INSPECTION AND AUDIT RIGHTS.

      (a)   Customer and its auditors and regulators will have the right to
            inspect and audit fully any invoices submitted by EDS and any and
            all of the Data, Customer Systems, and work performed or being
            performed hereunder either

                                       20
<Page>

            directly by EDS or through arrangement with another party as if such
            Data and Customer Systems were kept, or such work was performed, at
            Customer's site, provided that in no event will Customer or its
            auditors or regulators have any access to data or other property of.
            other customers of EDS. Upon request, EDS will allow complete
            Customer inspection of all documentation in support of any work
            performed by EDS. EDS will furnish to Customer (i) a copy of its
            annual financial statements when generally available and, upon
            request by Customer, its quarterly financial statements when
            generally available, and (ii) information concerning any adverse
            material change in EDS' financial condition concurrently with
            release to the public. Customer and its auditors and regulators will
            also have the right to inspect EDS' stock of special forms and
            checks provided by Customer under SECTION 3.2(1) and EDS' compliance
            with the stocking plan referred to in SECTION 3.2(1).

      (b)   Any customer or client of Customer may inspect and audit any
            information or Data pertaining to such customer or client and the
            application software used by Customer with respect to such
            information or Data. EDS will provide a representative to assist any
            such inspection or audit, provided that Customer will pay EDS for
            the time (in excess of two (2) man-days per year, which will be free
            of charge) expended by such representative in connection with such
            inspections and audits at a mutually agreed rate.

10.6  TIME FOR PERFORMANCE. Time for performance as stated herein is of the
      utmost importance.

10.7  LOWER TIER SUBCONTRACTS. EDS will have the right to subcontract portions
      of the services to be performed by EDS hereunder; provided, however, no
      such subcontract will relieve EDS of responsibility hereunder for the
      subcontracted obligations. EDS will notify Customer of material services
      for which EDS intends to enter a subcontract following the Effective Date
      and will solicit comments from Customer on such matter. EDS agrees to give
      due consideration to Customer's comments regarding subcontracting.

10.8  GOVERNING LAW. This Agreement will be construed and the rights and
      obligations of the parties determined in accordance with the provisions of
      the laws of the Commonwealth of Massachusetts.

10.9  CORPORATE AUTHORITY. Customer represents and warrants that there is no
      legal impediment to the execution by Customer of this Agreement or to the
      full and complete compliance with or performance by Customer of all the
      terms and provisions

                                       21
<Page>

      thereof. Furthermore, EDS represents and warrants that there is no legal
      impediment to the execution by EDS of this Agreement or to the full and
      complete compliance with or performance by EDS of all the terms and
      provisions thereof.

10.10 PATENT INDEMNITY. Each party will indemnify, defend, and hold harmless the
      other from any and all claims, actions, damages, liabilities, costs, and
      expenses, including reasonable attorneys' fees and expenses, arising out
      of any claims of infringement by the indemnitor of any United States
      letters patent, trade secret, copyright, trademark, service mark, trade
      name, license, or similar proprietary rights conferred by common law or by
      any law of the United States said to have occurred because of systems
      provided (i.e., with respect to Customer, the Customer Systems, and with
      respect to EDS, the EDS Systems) or work performed by the indemnitor or
      that may arise from a claim of infringement or violation by indemnitor of
      any license or similar agreement. This indemnity will not apply unless the
      party claiming indemnification notifies the other promptly of any matters
      in respect of which the foregoing indemnity may apply and which the
      notifying party has knowledge and give the other party full opportunity to
      control the response and the defense, including, without limitation, any
      agreement relating to the settlement.

10.11 DISHONEST EMPLOYEES. Pursuant to its dedication to maintaining the highest
      standards of business ethics, EDS has a policy of immediately terminating
      any employee who commits any serious, illegal act such as theft,
      embezzlement, or similar crimes involving dishonesty. EDS will not permit
      any employee whom EDS is aware has committed any such act to perform any
      tasks in connection with EDS' services to Customer contemplated in this
      Agreement.

10.12 ENTIRE AGREEMENT. This Agreement, including the Schedules referred to
      herein, each of which is incorporated into this Agreement for all
      purposes, constitutes the entire Agreement between the parties hereto with
      respect to the subject matter hereof. There are no understandings or
      agreements hereto which are not fully expressed in this Agreement. No
      amendment, change, waiver or discharge hereof will be valid unless in
      writing and executed by the party against whom such amendment, change,
      waiver or discharge is sought to be enforced. Any prices or terms
      contemplated in this Agreement to be mutually agreed upon by the parties
      shall be reflected in a written addendum to this Agreement.

10.13 NOTICES. Any notice, election, consent, or other communication required or
      permitted under this Agreement will be in writing and deemed given when
      delivered in person or by telecopy (with confirmation of receipt) or when
      sent by

                                       22
<Page>

      registered or certified mail, return receipt requested, postage prepaid
      and addressed as follows:

      If to EDS:         Electronic Data Systems Corporation
                         5400 Legacy Drive
                         Plano, Texas 75024
                         Attn: Vice President - Operations
                               Large Financial Institutions

      If to Customer:    Investors Bank & Trust Company
                         One Lincoln Plaza
                         89 South Street, 8th Floor
                         Boston, Massachusetts 02111
                         Attn: President

      Any party to this Agreement may change its address for notice purposes by
      giving the other party written notice thereof specifying the new address
      and the date upon which such address will become effective.

IN WITNESS WHEREOF, EDS and Customer have each caused this Agreement to be
signed and delivered by its duly authorized representative, all as of the
date(s) indicated below.

Investors Bank & Trust Company            Electronic Data System
                                          Corporation

By: /s/ Kevin J. Sheehan                  By: /s/ [ILLEGIBLE]
    ----------------------------              ----------------------------

Title: President                          Title: Managing Director
                                                 -------------------------
                                                 Large Financial
                                                 Institutions Division

Date: 9/15/95                             Date: 9/20/95
      --------------------------                --------------------------

                                       23
<Page>

[-------] indicates material that has been omitted and or which confidential
treatment has been requested. All such omitted material has been filed
separately with the Commission pursuant to Rule 24b-2.

                                   SCHEDULE A

1.    PRICE SCHEDULE FOR RESOURCE USAGE

      The monthly service fee will be calculated by multiplying the volume usage
      for a resource for a month by the resource unit price set forth in the
      table below for the applicable year. In the table below, "Prime" refers to
      "Prime Time" which is defined as 6:00 am - 6:00 pm weekdays, local time
      at the EDS IPC. "Offshift" means any time other than Prime Time.

<Table>
<Caption>
                                                                       (Amounts below are in U.S. Dollars)              Extension
Resource                        Measurement Unit          1995-1996        1997        1998        1999        2000        Term
--------                        ----------------          ---------        ----        ----        ----        ----     ---------
<S>                             <C>                       <C>           <C>         <C>         <C>         <C>         <C>
PROCESSING
CICS Calls Offshift             Per 10 Calls              [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
CICS Calls Prime                Per 10 Calls              [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
MVS CPU Offshift                3081K Equivalent
                                 CPU Minute               [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
MVS CPU prime                   3081K Equivalent
                                 CPU Minute               [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
CICS CPU Offshift               3081K Equivalent
                                 CPU Second               [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
CICS CPU Prime                  3081K Equivalent
                                 CPU Second               [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
TSO CPU Offshift                3081K Equivalent
                                 CPU Minute               [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
TSO CPU prime                   3081K Equivalent
                                 CPU Minute               [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
CICS Transactions
 Offshift                       Per Transaction           [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
CICS Transaction
 Prime                          Per Transaction           [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
DASD                            Megabyte Day              [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Tape Mount                      Per Mount                 [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Cartridge Storage
 Offsite                        Cartridges Per Day        [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Cartridge Storage
 Onsite                         Cartridges Per Day        [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Reel Storage Onsite             Reels Per Day             [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Storage-Low Performance
 (Level 10)                     Megabyte Day              Undefined     Undefined   Undefined   Undefined   Undefined   Undefined
Storage-High Performance
 (Level 30)                     Megabyte Day              Undefined     Undefined   Undefined   Undefined   Undefined   Undefined
Storage-Medium Performance
 (Level 20)                     Megabyte Day              Undefined     Undefined   Undefined   Undefined   Undefined   Undefined
</Table>

                                       A-1
<Page>

[-------] indicates material that has been omitted and or which confidential
treatment has been requested. All such omitted material has been filed
separately with the Commission pursuant to Rule 24b-2.

                                   (continued)

<Table>
<Caption>
                                                                       (Amounts below are in U.S. Dollars)              Extension
Resource                        Measurement Unit          1995-1996        1997        1998        1999        2000        Term
--------                        ----------------          ---------        ----        ----        ----        ----     ---------
<S>                             <C>                       <C>           <C>         <C>         <C>         <C>         <C>
DB2 Getpages                    Per 1000 Getpages         [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
TSO Connect Offshift            Elapsed Hour              [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
TSO Connect Prime               Elapsed Hour              [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Removable Media
 Handling                       Per Tape                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
DRA Emergency Call
 Back - 6 hours                 Per Callback              [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
DRA Emergency Call
 Back - 3 hours                 Per Callback              [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Emergency NCP, VTAM,
 CICS Chg                       Per Change                [-------]     [-------]   [-------]   [-------]   [-------]   [-------]

NETWORK/COMMUNICATIONS
Port - 4.8/9.6 RJE              Per Port                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Port - 9.6/SNA                  Per Port                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Port 19.2                       Per Port                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Port 56KB                       Per Port                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Port - 128 Kbps                 Per Port                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Port - 256 Kbps                 Per Port                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Port - 512 Kbps                 Per Port                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Port - 1024 Kbps                Per Port                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Port - Tl                       Per Port                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Logical Unit - Remote           Per Logical Unit          [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Logical unit
 - Channel Attached             Per Logical Unit          [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Foreign Network/Subarea         Per Foreign Unit/
                                 Subarea                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Elit Transmission               Per Kilobyte              [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
800 Access Usage                Per Hour                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Network Dial-in                 Per Logon ID              [-------]     [-------]   [-------]   [-------]   [-------]   [-------]

PRINT
Impact print                    Per 1000 Lines            [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Simplex print                   Per Page                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Duplex                          Per Page                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Quadruplex Print                Per Page                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Bursting                        Per Page                  [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Check signing                   Per Check                 [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Microfiche original,            Per Fiche                 [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
Microfiche Copy                 Per Fiche                 [-------]     [-------]   [-------]   [-------]   [-------]   [-------]
</Table>

                                       A-2
<Page>

                                   SCHEDULE B
                                    SOFTWARE

1.    CUSTOMER SYSTEMS

      Fund Accounting and Custody Tracking System (FACTS)
      Institutional Transfer Agent System (VISA)
      Retirement Plans Reporting System (RPRS)
      Multiple Asset System (MAS)
      Outbound

2.    EDS LICENSED CUSTOMER APPLICATIONS

      Adders

      RMDS

      Mantissa

      File-Aid

      Tempus Link

      Xpediter

      Strobe

      Back-Leveled EDS Systems

      EasyTrieve Plus

      UFO

      Direct Connect (NDM)

      COBOL OS/VS

3.    EDS SYSTEMS (INCLUDING SOME "VALUE-ADDED" SYSTEMS)

      Operating Systems

            MVS
            JES2
            VSAM
            CICS/MVS
            Synchsort

                                       B-1
<Page>

      Management Aids
            WSF2
            DMS-OS
            DFDSS
            MVS DITTO
            TLS
            CONTROL-M

      Programming Languages
            COBOL II
            COBOL 370

      Development Aids
            TSO/E
            ISPF/PDF
            SAM
            CA-OPTIMIZER
            INTERTEST
            CHAMP
            ATRM
            ABENDAID
            FILEAID BATCH
            DOCUTEXT
            JCL CHECK

      Security
            ACF2

      Networking
            EDS*ELIT
            NETMENU

      Management Aids
            IPACS

      Value Added Software
            SDB
            DF-HSM
            DF-DFS
            ADRP
            DB2
            SQL/QMF
            PDS-COMP
            CAT/BLDG

                                       B-2
<Page>

<Table>
<Caption>
                                                             SCHEDULE C
                                                        PERFORMANCE STANDARDS
                                                        ---------------------
                                                               TABLE A
                                                               -------

====================================================================================================================================
ITEM                          ACCEPTABLE                          UNACCEPTABLE
                              PERFORMANCE                         PERFORMANCE                    MITIGATING        STATUS (See Table
                              LEVEL                               LEVEL                          FACTORS           B)
------------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>                                 <C>                            <C>               <C>
I. OUTPUT AVAILABILITY
------------------------------------------------------------------------------------------------------------------------------------
A. Availability of            7:30 a.m. of day the cycle is       More than 3 1/2 hours late     3, 4              Regular
   printed reports            scheduled to complete
------------------------------------------------------------------------------------------------------------------------------------
B. Availability of            9:00 a.m. of day after cycle is     More than 5 hours late         3, 4              Regular
   fiche                      scheduled to complete
------------------------------------------------------------------------------------------------------------------------------------
C. WSF2 report                (i) Daily average of 20 minutes     More than 2 hours late                           Regular
   availability               after completion of job creating
                              output with less than 10,000
                              lines                               More than 6 hours late                           Regular

                              (ii) Daily average of 2 hours
                              after completion of job with
                              more than 10,000 lines
------------------------------------------------------------------------------------------------------------------------------------
D. Availability of            7:00 a.m. of day cycle is           More than 3 hours late         2, 5              Priority
   files for download         scheduled to complete
------------------------------------------------------------------------------------------------------------------------------------
E. Transmission of            1                                   More than 2 hours late         2                 Priority
   external files and
   receipts (e.g. for
   customers of
   Customer)
====================================================================================================================================
</Table>

(1)   To be established and amended by agreement of the parties from time to
      time as reasonably necessary.

(2)   Cycle start time plus any time lost due to Abends.

(3)   Print volume greater than average.

(4)   Print availability after 3:00 a.m.

(5)   Critical path of cycle less than 5 hours.

                                                                             C-1
<Page>

<Table>
<Caption>
====================================================================================================================================
ITEM                          ACCEPTABLE                          UNACCEPTABLE
                              PERFORMANCE                         PERFORMANCE                    MITIGATING
                              LEVEL                               LEVEL                          FACTORS           STATUS
------------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>                                 <C>                            <C>               <C>
II. RESPONSE TIME
------------------------------------------------------------------------------------------------------------------------------------
A. On-line response time 2    Daily average of 2.0 seconds        Daily average of more than 4   1                 Regular
                                                                  seconds
------------------------------------------------------------------------------------------------------------------------------------
B. Completion of batch        6 hours                             More than 10 hours             3,4,5             Priority
   cycle after release
   of cycle to EDS.
------------------------------------------------------------------------------------------------------------------------------------
C. Start of execution         Daily average of 5 minutes after    More than 30 minutes           1                 Priority
   manually submitted         submission
   production jobs.
------------------------------------------------------------------------------------------------------------------------------------
D. Start of execution         Daily average of 20 minutes         Daily average of more than 2   None              Regular
   of test jobs in            after submission                    hours
   immediate execution
   classes.
------------------------------------------------------------------------------------------------------------------------------------
E. Notification to            15 minutes after occurrence         More than 30 minutes           6                 Priority
   Customer that Abend
   has occurred.
====================================================================================================================================
</Table>

(1)   Based upon benchmark results.

(2)   Measured from time enter key is struck until the time complete response
      appears on terminal and system is ready for keying of next transaction.

(3)   Cycle start time plus any time lost due to Abends.

(4)   Cycle critical path less than 5 hours.

(5)   Delays due to data sets unnecessarily directed to tape instead of DASD.

(6)   Availability of Customer's designated "on call" representative based on
      call list.

                                                                             C-2
<Page>

<Table>
<Caption>
====================================================================================================================================
ITEM                                   ACCEPTABLE                 UNACCEPTABLE
                                       PERFORMANCE                PERFORMANCE                    MITIGATING
                                       LEVEL                      LEVEL                          FACTORS           STATUS
------------------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                        <C>                            <C>               <C>
III. SYSTEM
     AVAILABILITY
------------------------------------------------------------------------------------------------------------------------------------
A. Batch production up-time,           Daily average of           More than 4 hours              None              Priority
   i.e. application environ-           98% during Business        unavailability on
   ment (CPU, system software         Day 1                      any Business Day
   application software, DASD,
   tapes, telecommunications,
   VSAM, initiators, etc.)
   is fully functional
------------------------------------------------------------------------------------------------------------------------------------
B. On-line production up-time          Daily average of           More than 4 hours              None              Priority
   i.e., application environ-          98% from 7:00 a.m.         unavailability on
   ment (CPU, system software          until all uploads          any Business Day
   application software, DASD,         are successful and
   tapes, telecommunications,          complete during
   VSAM, initiators, etc.) is          Business Day
   fully functional
------------------------------------------------------------------------------------------------------------------------------------
C. Development up-time, i.e.,          Daily average of           More than 4 hours              None              Priority
   development environment,            98% during Business        unavailability on
   (CPU, system software,              Day                        any Business Day
   application software, DASD,
   tapes, telecommunications,
   VSAM, initiators, etc.) is
   fully functional
====================================================================================================================================
</Table>

For the purposes of this Table A only, the term "Business Day" will include
holidays.

                                                                             C-3
<Page>

<Table>
<Caption>
                                                       SCHEDULE C
                                                         TABLE B
                                                         -------

=======================================================================================================================
                                                         I.                        II.                        III.
                                                   NUMBER OF DAYS*           NUMBER OF DAYS*
                                                   FOR MEASURING             OF INCIDENTS OF
STATUS                                             SUBSTANDARD               SUBSTANDARD                  CURE PERIOD*
                                                   PERFORMANCE               PERFORMANCE
-----------------------------------------------------------------------------------------------------------------------
<S>                                                      <C>                        <C>                       <C>
1.    Regular
      A.    Acceptable Performance Level                 30                         6                         10
      B.    Unacceptable Performance Level               45                         3                         5
-----------------------------------------------------------------------------------------------------------------------
2.    Priority
      A.    Acceptable Performance Level                 30                         5                         7
      B.    Unacceptable Performance Level               45                         3                         2
-----------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------
* Measured by Business Days
=======================================================================================================================
</Table>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]