Document:

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                                                                     EXHIBIT 4.1

                              eFunds Corporation
                           STOCK INCENTIVE PLAN FOR
                           DELUXE CONVERSION AWARDS,
                                  AS AMENDED

Section 1. Purpose.
------------------

          The purpose of the Plan is to provide substitute Options to certain
employees of the Company and its Affiliates and certain employees of the
Company's parent corporation, Deluxe Corporation, and its Affiliates, as a
result of the adjustments to be made to certain outstanding options under the
Deluxe Corporation 1984 Stock Option Plan, the Deluxe Corporation Stock
Incentive Plan (as amended) or the Deluxe Corporation 1998 DeluxeSHARES Plan in
connection with the distribution by Deluxe Corporation to its shareholders of
Deluxe Corporation's remaining interest in the Company.

Section 2. Definitions.
----------------------

          As used in the Plan, the following terms shall have the meanings set
forth below:

          (a) "Affiliate" shall mean (i) when used with reference to the
Company, any entity that, directly or indirectly through one or more
intermediaries, is controlled by the Company and (ii) when used with reference
to Deluxe, any entity that, directly or indirectly through one or more
intermediaries, is controlled by Deluxe.  As used in this definition, "control"
shall mean the right, either directly or indirectly, to elect a majority of the
directors of a company without the consent or acquiescence of any third party.

          (b) "Board" shall mean the Board of Directors of the Company.

          (c) "Code" shall mean the Internal Revenue Code of 1986, as amended
from time to time, and any regulations promulgated thereunder.

          (d) "Committee" shall mean a committee of Directors designated by the
Board to administer the Plan.  The Committee shall be comprised of not less than
such number of Directors as shall be required to permit Options granted under
the Plan to qualify under Rule 16b-3, and each member of the Committee shall be
a "Non-Employee Director" within the meaning of Rule 16b-3 and an "outside
director" within the meaning of Section 162(m) of the Code.  The Company expects
to have the Plan administered in accordance with requirements for "qualified
performance-based compensation" within the meaning of Section 162(m) of the
Code.

          (e) "Company" shall mean eFunds Corporation, a Delaware corporation,
and any successor corporation.

          (f) "Deluxe" shall mean Deluxe Corporation, the parent corporation of
the Company.
<PAGE>

          (g) "Deluxe Option" shall mean an Option to purchase shares of Deluxe
common stock which was granted under a Deluxe Option Plan (i) on or before
August 11, 2000 or (ii) after August 11, 2000, but only if the Deluxe option
agreement relating to the Deluxe option granted after August 11, 2000 expressly
provides that the Deluxe option will be subject to adjustment in connection with
the Spin-Off.

          (h) "Deluxe Option Agreement" shall mean the Participant's agreement
or agreements with or award from Deluxe containing the terms and conditions of a
Deluxe Option, including any executive retention or other agreement, in writing
and executed between a Participant and Deluxe, setting forth additional or
alternative terms and conditions of the Participant's Deluxe Options.

          (i) "Deluxe Option Plan" shall mean any one of the Deluxe Corporation
1984 Stock Option Plan, the Deluxe Corporation Stock Incentive Plan (as amended)
or the Deluxe Corporation 1998 DeluxeSHARES Plan, whichever Plan is applicable.

          (j) "Director" shall mean a member of the Board.

          (k) "eFunds Option" shall mean an Option to purchase Shares pursuant
to the terms of this Plan, which Option is granted as a result of any
adjustments made to an Eligible Person's Deluxe Option under the provisions of
the applicable Deluxe Option Plan in connection with the Spin-Off.

          (l) "Eligible Person" shall mean any person who holds an outstanding
Deluxe Option as of the Record Date.

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

          (n) "Fair Market Value" shall mean, with respect to any property
(including, without limitation, any Shares or other securities), the fair market
value of such property determined by such methods or procedures as shall be
established from time to time by the Committee.  Notwithstanding the foregoing,
unless otherwise determined by the Committee, the Fair Market Value of Shares on
a given date for purposes of the Plan shall be, if the Shares are then traded on
the Nasdaq National Market, the last sale price of the Shares as reported on the
Nasdaq National Market on such date or, if the Nasdaq National Market is not
open for trading on such date, on the most recent preceding date when it is open
for trading.

          (o) "Incentive Stock Option" shall mean an option that is intended to
meet the requirements of Section 422 of the Code or any successor provision and
which, for purposes of this Plan, (i) relates to a Deluxe Option that was an
Incentive Stock Option immediately prior to the Record Date and (ii) continues
to meet the requirements of Section 422 of the Code or any successor provision
after the Record Date.

          (p) "Non-Qualified Stock Option" shall mean an option that is not
intended to be an Incentive Stock Option.

                                       2
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          (q)  "Option" shall mean an Incentive Stock Option or a Non-Qualified
Stock Option and specifically, for purposes of this Plan, it shall mean an
eFunds Option.

          (r)  "Option Agreement" shall mean a written schedule or other
document showing the adjustments made to the Participant's outstanding Deluxe
Options under and pursuant to the terms of the applicable Deluxe Option Plan,
which Option Agreement shall include the number of Shares subject to the eFunds
Options, the exercise price or prices of the eFunds Options and the expiration
date or dates of the eFunds Options. Each Option Agreement shall be subject to
the applicable terms and conditions of the respective Deluxe Option Plan under
and pursuant to which the Deluxe Options were granted and the terms and
conditions of the applicable Deluxe Option Agreement, as adjusted and modified
by the terms and conditions of this Plan and the terms set forth in the Option
Agreement. To the extent that any of the terms in the applicable Deluxe Option
Plan or Deluxe Option Agreement are inconsistent with the terms of this Plan or
the Option Agreement with respect to the eFunds Options, the terms of this Plan
and the Option Agreement shall govern, and if there is any inconsistency between
this Plan and the terms contained in an Option Agreement, the terms of this Plan
shall govern.

          (s)  "Participant" shall mean an Eligible Person designated to be
granted an Option under the Plan.

          (t)  "Person" shall mean any individual, corporation, partnership,
association or trust.

          (u)  "Plan" shall mean this eFunds Corporation Stock Incentive Plan
for Deluxe Conversion Awards, as amended from time to time.

          (v)  "Record Date" shall mean the date selected and approved by the
Board of Directors of Deluxe as the date for determining the holders of record
of Deluxe common stock who shall be entitled to receive shares of eFunds common
stock in the Spin-Off.

          (w)  "Rule 16b-3" shall mean Rule 16b-3 promulgated by the Securities
and Exchange Commission under the Exchange Act or any successor rule or
regulation.

          (x)  "Shares" shall mean shares of Common Stock, par value $0.01 per
share, of the Company or such other securities or property as may become subject
to Options pursuant to an adjustment made under Section 4(c) of the Plan.

          (y)  "Spin-Off" shall mean the pro rata distribution by Deluxe to its
shareholders of all or substantially all of the shares of eFunds common stock
owned by Deluxe.

          (z)  "Stock Option Conversion Equation" shall mean the equation
attached as Exhibit A hereto.

          (aa) "Tax Sharing Agreement" shall mean the agreement by that name by
and between Deluxe and eFunds dated as of April 1, 2000, as the same may be
amended from time to time.

                                       3
<PAGE>

Section 3.  Administration.
--------------------------

          (a) Power and Authority of the Committee.  The Plan shall be
              ------------------------------------
administered by the Committee.  Subject to the express provisions of the Plan
and to applicable law, the Committee shall have full power and authority to:
(i) designate Participants; (ii) determine the number of Shares to be covered by
(or the method by which payments or other rights are to be calculated in
connection with) each Option; (iii) determine the terms and conditions of any
Option or Option Agreement; (iv) amend the terms and conditions of any Option or
Option Agreement; (v) accelerate the exercisability of any Option or the lapse
of restrictions relating to any Option; (vi) determine whether, to what extent
and under what circumstances Options may be exercised in cash, Shares,
promissory notes, other securities or other property, or canceled, forfeited or
suspended; (vii) determine whether, to what extent and under what circumstances
cash, Shares, promissory notes, other securities, other property and other
amounts payable with respect to an Option under the Plan shall be deferred
either automatically or at the election of the holder thereof or the Committee;
(vii) interpret and administer the Plan and any instrument or agreement,
including an Option Agreement, relating to the Plan; (ix) establish, amend,
suspend or waive such rules and regulations and appoint such agents as it shall
deem appropriate for the proper administration of the Plan; and (x) make any
other determination and take any other action that the Committee deems necessary
or desirable for the administration of the Plan.  Unless otherwise expressly
provided in the Plan, all designations, determinations, interpretations and
other decisions under or with respect to the Plan or any Option shall be within
the sole discretion of the Committee, may be made at any time and shall be
final, conclusive and binding upon any Participant, any holder or beneficiary of
any Option and any employee of the Company or any Affiliate.

          (b) Delegation.  The Committee may delegate its powers and duties
              ----------
under the Plan to one or more Directors or a committee of Directors, subject to
such terms, conditions and limitations as the Committee may establish in its
sole discretion; provided, however, that the Committee shall not delegate its
powers and duties under the Plan with regard to Options granted to officers or
directors of the Company or any Affiliate who are subject to Section 16 of the
Exchange Act or in such a manner as would cause the Plan not to comply with the
requirements of Section 162(m) of the Code.

          (c) Power and Authority of the Board of Directors.  Notwithstanding
              ---------------------------------------------
anything to the contrary contained herein, the Board may, at any time and from
time to time, without any further action of the Committee, exercise the powers
and duties of the Committee under the Plan.

Section 4.  Shares Available for Options.
----------------------------------------

          (a) Shares Available.  Subject to adjustment as provided in Section
              ----------------
4(c) of the Plan, the aggregate number of Shares which may be issued under all
Options under the Plan shall be 3,350,000.

          (b) Adjustments.  In the event that the Committee shall determine that
              -----------
any dividend or other distribution (whether in the form of cash, Shares, other
securities or other property), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase or exchange of Shares or other securities of the Company, issuance of
warrants or other rights to purchase Shares or other securities of the

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<PAGE>

Company or other similar corporate transaction or event affects the Shares such
that an adjustment is determined by the Committee to be appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended
to be made available under the Plan, then the Committee shall, in such manner as
it may deem equitable, adjust any or all of (i) the number and type of Shares
(or other securities or other property) that thereafter may be made the subject
of Options, (ii) the number and type of Shares (or other securities or other
property) subject to outstanding Options and (iii) the purchase or exercise
price with respect to an Option; provided, however, that the number of Shares
covered by an Option or to which such Option relates shall always be a whole
number.

Section 5.  Eligibility.
-----------------------

          Any Eligible Person shall be eligible to be designated a Participant.

Section 6.  Options.
-------------------

          The Committee is hereby authorized and directed to grant eFunds
Options to Participants with the terms and conditions set forth below.  Other
than as specified in this Plan or the Option Agreement, the terms and conditions
of the applicable Deluxe Option Plan and Deluxe Option Agreement to which an
eFunds Option relates shall remain in effect.

          (a) Grant of eFunds Options.  The eFunds Options to be granted under
              -----------------------
the Plan shall be granted as of the close of business on the Record Date as a
result of adjustments made to outstanding Deluxe Options in connection with the
Spin-Off under the applicable Deluxe Option Plan.  The number of eFunds Options
granted to a Participant shall be determined based on the Stock Option
Conversion Equation as applied to the number of outstanding Deluxe Options held
by the Participant as of the Record Date, and then rounded up or down to the
nearest whole share; provided, however, that with respect to an Incentive Stock
Option the number shall be rounded down to the nearest whole share.

          (b) Option Exercise Price.  The eFunds Options granted under the Plan
              ---------------------
shall have an exercise price or exercise prices determined based on the Stock
Option Conversion Equation as applied to the original exercise price or prices
of the corresponding outstanding Deluxe Options held by the Participant as of
the Record Date as a result of adjustments made to outstanding Deluxe Options in
connection with the Spin-Off under the applicable Deluxe Option Plan.  The
exercise price of an Incentive Stock Option under this Plan shall be rounded up
to the nearest whole cent.

          (c) Vesting.  The vesting provisions of the eFunds Options shall be
              -------
the same as the Deluxe Options to which the eFunds Options relate, assuming, for
vesting purposes, that the date of grant of the eFunds Options was the same as
the date of grant for the corresponding Deluxe Options; provided, however, that
(i) the vesting provision of options awarded under the 1998 DeluxeSHARES Plan
that is conditioned upon the per share price of Deluxe common stock reaching a
market price at least equal to 150% of the per share purchase price (exercise
price) applicable to each such option shall be modified to require that vesting
prior to the third anniversary of the applicable option award will be
conditioned upon the per Share price of eFunds Common Stock reaching a market
price at least equal to 150% of the per share exercise price determined in
accordance with Section 6(b) of the eFunds Option corresponding to the

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option issued under the 1998 DeluxeSHARES Plan and (ii) any vesting provision
contained in a Deluxe Option Agreement or Deluxe Option Plan relating to a
change of control of Deluxe shall mean, for purposes of the corresponding eFunds
Options, a change of control of eFunds subsequent to the Spin-Off.

          (d) Exercisability of Options and Option Term.  The exercisability
              -----------------------------------------
provisions and the term (including the applicability of any early termination
provision) of each eFunds Option shall be the same as the exercisability
provisions and term (including the applicability of any early termination
provision) of the corresponding Deluxe Option to which the eFunds Option
relates, assuming, for such purposes, that the date of grant of the eFunds
Option was the same as the date of grant for the corresponding Deluxe Option,
except that, with respect to eFunds Options relating to Deluxe Options granted
prior to 1998 or granted under the 1998 DeluxeSHARES Plan, the exercisability
provisions and term of such Options based on past employment or contingent upon
continued employment shall mean and include past employment with Deluxe and
continued employment with eFunds for those Participants who are employees of
eFunds effective as of the Spin-Off.

          (e)  Method of Exercising Options.
               ----------------------------

               (i)   Subject to the terms and conditions of this Plan, an Option
may be exercised by written notice to the Company, to the attention of the
Secretary, or notice under such other procedure established by the Company for
the exercise of an Option. Such notice shall indicate the election to exercise
the Option, the number of Shares as to which the Option is being exercised, the
manner of payment, the address to which the certificate representing the Shares
should be mailed, and the Participant's social security number and shall be
signed or authorized by the person or persons so exercising the Option. The
notice shall be accompanied by payment in full of the exercise price for all
Shares designated in the notice. To the extent that the Option is exercised
after the Participant's death, the notice of exercise shall also be accompanied
by appropriate proof of the right of such person or persons to exercise the
Option.

               (ii)  Payment of the exercise price shall be made to the Company
through one or a combination of the following methods:

               (A)   by wire transfer or delivery of a certified or bank
     cashier's check payable to the Company or cash, in United States currency,
     or such other payment method as may be acceptable to the Committee; or

               (B)   for options granted under the Deluxe Corporation 1984 Stock
     Option Plan or the Deluxe Corporation Stock Incentive Plan (as amended), by
     delivery of shares of Common Stock acquired by the Participant more than
     six months prior to the date of exercise having a Fair Market Value on the
     date of exercise equal to the Option exercise price under rules of general
     application established by the Committee.  The Participant shall duly
     endorse all certificates delivered to the Company in blank and shall
     represent and warrant in writing that the Participant is the owner of the
     shares so delivered, free and clear of all liens, encumbrances, security
     interests and restrictions.

          (f)  Income Tax Withholding.  In order to provide the Company or
               ----------------------
Deluxe, as the case may be, with the opportunity to claim the benefit of any
income tax deduction which

                                       6
<PAGE>

may be available to the Company or Deluxe upon the exercise of the Option, and
in order to comply with all applicable income tax laws or regulations and the
Tax Sharing Agreement, the Company shall take such action as is appropriate to
ensure that all applicable income, withholding, social security, payroll or
other taxes, which shall be the sole and absolute responsibility of the
Participant, are withheld or collected from the Participant. A Participant may,
at the Participant's election (the "Tax Election"), satisfy any applicable tax
withholding obligations by (i) electing to have the Company withhold a portion
of the Shares of Common Stock otherwise to be delivered upon exercise of the
Option having a Fair Market Value equal to the amount of such taxes or (ii)
delivering to the Company shares of Common Stock having a Fair Market Value
equal to the amount of such taxes. The Tax Election must be made on or before
the date that the amount of tax to be withheld is determined.

          (g) Restrictions; Securities Exchange Listing.  All Shares or other
              -----------------------------------------
securities delivered under the Plan pursuant to any Option or the exercise
thereof shall be subject to such restrictions as the Committee may deem
advisable under the Plan, applicable securities laws, rules or regulations, and
other regulatory requirements, and the Committee may cause appropriate entries
to be made or legends to be placed on the certificates for such Shares or other
securities to reflect such restrictions.  If the Shares or other securities are
traded on the Nasdaq National Market or a securities exchange, the Company shall
not be required to deliver any Shares or other securities covered by an Option
unless and until such Shares or other securities have been admitted for trading
on the Nasdaq National Market or such securities exchange.

Section 7.  Amendment and Termination; Adjustments.
--------------------------------------------------

          (a) Amendments to the Plan.  Subject to the provisions of Section 7(b)
              ----------------------
below, the Board of Directors of the Company may amend, alter, suspend,
discontinue or terminate the Plan; provided, however, that, notwithstanding any
other provision of the Plan or any Option Agreement, prior approval of the
stockholders of the Company shall be required for any amendment to the Plan that
requires stockholder approval under the rules or regulations of the National
Association of Securities Dealers, Inc. or any securities exchange that are
applicable to the Company.

          (b) Amendments to Options.  Subject to the provisions of the Plan, the
              ---------------------
Committee may waive any conditions of or rights of the Company under any
outstanding Option, prospectively or retroactively.  Except as otherwise
provided herein, the Committee may not amend, alter, suspend, discontinue or
terminate any outstanding Option, prospectively or retroactively, if such action
would adversely affect the rights of the holder of such Option, without the
consent of the Participant or holder or beneficiary thereof.

          (c) Correction of Defects, Omissions and Inconsistencies.  The
              ----------------------------------------------------
Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or any Option in the manner and to the extent it shall
deem desirable to carry the Plan into effect.

                                       7
<PAGE>

Section 8.  General Provisions.
------------------------------

          (a) No Rights to Options.  No Eligible Person, Participant or other
              --------------------
Person shall have any claim to be granted any Option under the Plan, and there
is no obligation for uniformity of treatment of Eligible Persons, Participants
or holders or beneficiaries of Options under the Plan.  The terms and conditions
of Options need not be the same with respect to any Participant or with respect
to different Participants.

          (b) Option Agreements.  No Participant shall have rights under an
              -----------------
Option granted to such Participant unless and until an Option Agreement shall
have been duly executed on behalf of the Company.

          (c) No Rights of Stockholders.  Neither a Participant nor the
              -------------------------
Participant's legal representative shall be, or have any of the rights and
privileges of, a stockholder of the Company with respect to any Shares issuable
upon exercise or payment of any Option, in whole or in part, unless and until
the Shares have been issued.

          (d) No Limit on Other Compensation Arrangements.  Nothing contained in
              -------------------------------------------
the Plan shall prevent the Company or any Affiliate from adopting or continuing
in effect other or additional compensation plans or arrangements, and such plans
or arrangements may be either generally applicable or applicable only in
specific cases.

          (e) No Right to Employment.  The grant of an Option shall not be
              ----------------------
construed as giving a Participant the right to be retained as an employee of the
Company or any Affiliate  nor will it affect in any way the right of the Company
or an Affiliate to terminate such employment at any time, with or without cause.
In addition, the Company or an Affiliate may at any time dismiss a Participant
from employment free from any liability or any claim under the Plan, unless
otherwise expressly provided in the Plan or in any Option Agreement.

          (f) Governing Law.  The internal law, and not the law of conflicts, of
              -------------
the State of Delaware, shall govern all questions concerning the validity,
construction and effect of the Plan or any Option, and any rules and regulations
relating to the Plan or any Option.

          (g) Severability.  If any provision of the Plan or any Option is or
              ------------
becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction
or would disqualify the Plan or any Option under any law deemed applicable by
the Committee, such provision shall be construed or deemed amended to conform to
applicable laws, or if it cannot be so construed or deemed amended without, in
the determination of the Committee, materially altering the purpose or intent of
the Plan or the Option, such provision shall be stricken as to such jurisdiction
or Option, and the remainder of the Plan or any such Option shall remain in full
force and effect.

          (h) No Trust or Fund Created.  Neither the Plan nor any Option shall
              ------------------------
create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company or any Affiliate and a Participant or
any other Person.  To the extent that any Person acquires a right to receive
payments from the Company or any Affiliate pursuant to an Option, such right
shall be no greater than the right of any unsecured general creditor of the
Company or any Affiliate.

                                       8
<PAGE>

          (i) No Fractional Shares.  No fractional Shares shall be issued or
              --------------------
delivered pursuant to the Plan or any Option, and the Committee shall determine
whether cash shall be paid in lieu of any fractional Share or whether such
fractional Share or any rights thereto shall be canceled, terminated or
otherwise eliminated.

          (j) Headings.  Headings are given to the Sections and subsections of
              --------
the Plan solely as a convenience to facilitate reference.  Such headings shall
not be deemed in any way material or relevant to the construction or
interpretation of the Plan or any provision thereof.

          (k) Other Benefits.  No compensation or benefit granted to or realized
              --------------
by any Participant under the Plan shall be included for the purpose of computing
such Participant's compensation under any compensation-based retirement,
disability, or similar plan of the Company unless required by law or otherwise
provided by such other plan.

Section 9.  Effective Date of the Plan.
--------------------------------------

          The Plan shall be effective as of April 17, 2000, subject to approval
by Deluxe Corporation, as the sole stockholder of the Company.

Section 10. Term of the Plan.
-----------------------------

          The Plan shall continue until the Options under the Plan are exercised
or terminate.  The authority of the Committee provided for hereunder with
respect to the Plan and any Options, and the authority of the Board of Directors
of the Company to amend the Plan, shall extend beyond the termination of the
Plan.

                                       9
<PAGE>

                                                                       EXHIBIT A

Stock Option Conversion Equation:

Record Date means with respect to eFunds common stock the close of trading on
the Nasdaq National Market on the record date for the Spin-Off (as defined in
the Plan) and with respect to Deluxe common stock the close of trading on the
New York Stock Exchange ("NYSE") on the record date for the Spin-Off.

eFns means the total number of eFunds shares held by Deluxe on the Record Date.

eFmpr means the price per share of eFunds stock under the trading symbol EFDS as
reported on the Nasdaq National Market on the Record Date.

MVeF means the total market value of eFunds shares held by Deluxe on the Record
Date, calculated as follows:

     MVeF = eFns x eFmpr

DXns means the total number of Deluxe shares outstanding on the Record Date.

DXmpr means the price per share of Deluxe stock under the trading symbol DLX as
reported by the NYSE on the Record Date.

MVDX means the total market value of Deluxe on the Record Date less MVeF,
calculated as follows:

     MVDX = DXns x DXmpr - MVeF

NDX means the total number of outstanding and unexercised shares of Deluxe that
may be acquired by the exercise of a Deluxe Option (as defined in the Plan) on
the Record Date.

DXhmpr means the hypothetical per share price of Deluxe stock resulting from the
adjustment to DXmpr calculated as follows:

     DXhmpr = DXmpr x MVDX / (MVeF + MVDX)

E means the original exercise price to purchase one Deluxe share under a Deluxe
Option.

eFopr means the adjusted exercise price of an eFunds Option (as defined the
Plan), calculated  in accordance with the formulas below.

DXopr means the adjusted exercise price of a Deluxe Option made pursuant to
applicable terms of the Deluxe Option Plan (as defined in the Plan) under which
the Deluxe Option was originally granted on the Record Date, calculated in
accordance with the formulas below.

NeF means the number of eFunds shares that may be purchased pursuant to an
eFunds Option after the conversion of the Deluxe Option into an eFunds option,
calculated in  accordance with the formulas below.
<PAGE>

I means the intrinsic value of a Deluxe Option on the Record Date calculated in
accordance with the formulas below.

IDX means the intrinsic value of a Deluxe Option immediately after the Record
Date calculated in accordance with the formulas below.

IeF means the intrinsic value of an eFunds Option immediately after the Record
Date calculated in accordance with the formulas below.

Calculations for eFunds Options:

1)   I = NDX x (DXmpr-E)

2)   IDX = I x MVDX / (MVeF + MVDX)

3)   IeF =  I x MVeF / (MVeF + MVDX)

4)   eFopr = eFmpr x (E / DXmpr)

5)   NeF = IeF / (eFmpr - eFopr)

Calculation for Adjustments to Deluxe Options:

1)   DXopr = E x (DXhmpr / DXmpr)

2)   NDX = no change

                                       2<PAGE>

                                                                     EXHIBIT 4.2

================================================================================

                               eFunds Corporation

                                      and

                         EquiServe Trust Company N.A.,
                                  Rights Agent

                                RIGHTS AGREEMENT

                            Dated as of May 1, 2000

================================================================================
<PAGE>

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<CAPTION>
                                                                                                                       Page
                                                                                                                       ----
<S>                                                                                                                    <C>
Section 1.   Certain Definitions.................................................................................        1
Section 2.   Appointment of Rights Agent.........................................................................        4
Section 3.   Issue of Right Certificates.........................................................................        4
Section 4.   Form of Right Certificates..........................................................................        6
Section 5.   Countersignature and Registration...................................................................        6
Section 6.   Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed,
             Lost or Stolen Right Certificates...................................................................        7
Section 7.   Exercise of Rights; Purchase Price; Expiration Date of Rights.......................................        7
Section 8.   Cancellation of Right Certificates..................................................................        9
Section 9.   Availability of Preferred Shares....................................................................        9
Section 10.  Preferred Shares Record Date........................................................................       10
Section 11.  Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights.........................       10
Section 12.  Certificate of Adjusted Purchase Price or Number of Shares..........................................       18
Section 13.  Consolidation, Merger or Sale or Transfer of Assets or Earning Power................................       18
Section 14.  Fractional Rights and Fractional Shares.............................................................       21
Section 15.  Rights of Action....................................................................................       22
Section 16.  Agreement of Right Holders..........................................................................       22
Section 17.  Right Certificate Holder Not Deemed a Stockholder...................................................       23
Section 18.  Concerning the Rights Agent.........................................................................       23
Section 19.  Merger or Consolidation or Change of Name of Rights Agent...........................................       23
Section 20.  Duties of Rights Agent..............................................................................       24
Section 21.  Change of Rights Agent..............................................................................       26
Section 22.  Issuance of New Right Certificates..................................................................       27
Section 23.  Redemption..........................................................................................       27
Section 24.  Exchange............................................................................................       28
Section 25.  Notice of Certain Events............................................................................       29
Section 26.  Notices.............................................................................................       30
Section 27.  Supplements and Amendments..........................................................................       30
Section 28.  Successors..........................................................................................       31
Section 29.  Benefits of this Agreement..........................................................................       31
Section 30.  Severability........................................................................................       31
Section 31.  Governing Law.......................................................................................       31
Section 32.  Counterparts........................................................................................       31
Section 33.  Descriptive Headings................................................................................       31

Exhibit A         Certificate of Designations of Series A Junior
                  Participation Preferred Stock..................................................................       A1

Exhibit B         Form of Right Certificates.....................................................................       B1
</TABLE>

                                       i
<PAGE>

                                RIGHTS AGREEMENT
                                ----------------

          AGREEMENT, dated as of May 1, 2000, between eFunds Corporation, a
Delaware corporation (the "Company"), and EquiServe Trust Company N.A. (the
"Rights Agent").

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

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

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

               "Acquiring Person" shall mean any Person who or which, together
          with all Affiliates and Associates of such Person, shall be the
          Beneficial Owner of the Threshold Percentage or more of the Common
          Shares then outstanding other than as a result of a Permitted Offer,
          but shall not include any Exempt Person.  Notwithstanding the
          foregoing, no Person shall become an "Acquiring Person" as the result
          of an acquisition of Common Shares by the Company which, by reducing
          the number of shares outstanding, increases the proportionate number
          of shares beneficially owned by such Person to the Threshold
          Percentage or more of the Common Shares of the Company then
          outstanding; provided, however, that if a Person shall become the
                       --------  -------
          Beneficial Owner of the Threshold Percentage or more of the Common
          Shares of the Company then outstanding by reason of share purchases by
          the Company and shall, after such share purchases by the Company,
          increase the number of Common Shares of the Company beneficially owned
          by such Person above the number of Common Shares of the Company
          beneficially owned by such Person at the time of the share purchase by
          the Company that caused such person to exceed the Threshold
          Percentage, then such Person shall be deemed to be an "Acquiring
          Person."  Notwithstanding the foregoing, if the Board of Directors of
          the Company determines in good faith that a Person who would otherwise
          be an "Acquiring Person," as defined pursuant to the foregoing
          provisions of this paragraph, has become such inadvertently, and such
          Person divests as promptly as practicable a sufficient number of
          Common Shares so that such Person would no longer be an "Acquiring
          Person," as defined pursuant to the
<PAGE>

          foregoing provisions of this paragraph, then such Person shall not be
          deemed to be an "Acquiring Person" for any purposes of this Agreement.

                    "Affiliate" and "Associate" shall have the respective
          meanings ascribed to such terms in Rule 12b-2 of the General Rules and
          Regulations under the Exchange Act.  A Person shall be deemed the
          "Beneficial Owner" of and shall be deemed to "beneficially own" any
          securities:

                    (i)    which such Person or any of such Person's Affiliates
               or Associates beneficially owns, directly or indirectly,
               including without limitation securities with respect to which
               such Person or any such Person's Affiliates or Associates has
               "beneficial ownership" pursuant to Rule 13d-3 of the General
               Rules and Regulations under the Exchange Act, as in effect on the
               date of this Agreement;

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

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

                                       2
<PAGE>

          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.

               "Business Day" shall mean any day other than a Saturday, a Sunday
          or a day on which banking institutions in the state where the
          principal office of the Rights Agent is located are authorized or
          obligated by law or executive order to close.

               "Close of Business" on any given date shall mean 5:00 P.M.,
          prevailing time where the principal office of the Rights Agent is
          located, on such date; provided, however, that if such date is not a
                                 --------  -------
          Business Day, it shall mean 5:00 P.M., prevailing time, on the next
          succeeding Business Day.

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

               "Distribution Date" shall have the meaning set forth in Section
          3.

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

               "Exchange Date" shall have the meaning set forth in Section 7.

               "Exempt Person" shall mean the Company, any Subsidiary of the
          Company, any employee benefit plan of the Company or of any Subsidiary
          of the Company, and any Person organized, appointed or established by
          the Company for or pursuant to the terms of any such plan.  Deluxe
          Corporation, a Minnesota corporation, shall be an Exempt Person until
          such time as Deluxe Corporation owns less than 15% of the Company's
          Common Shares.  In addition, any underwriter participating in the
          initial public offering of the Company's Common Shares shall also be
          an Exempt Person until the earliest of (i) the date any such
          underwriter owns less than 15% of the Company's Common Shares, (ii)
          the date Deluxe Corporation owns less than 15% of the Company's Common
          Shares or (iii) December 31, 2000.

                                       3
<PAGE>

               "Final Expiration Date" shall have the meaning set forth in
          Section 7.

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

               "Permitted Offer" shall mean a tender offer or an exchange offer
          for all outstanding Common Shares of the Company determined by the
          Board of Directors of the Company, after receiving such advice as it
          deems necessary and giving due consideration to all relevant factors,
          to be in the best interests of the Company and its stockholders.

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

               "Redemption Date" shall have the meaning set forth in Section 7.

               "Shares Acquisition Date" shall mean the first date of public
          announcement (which, for purposes of this definition, shall include,
          without limitation, a report filed pursuant to Section 13(d) of the
          Exchange Act) by the Company or any Person that a Person has become an
          Acquiring Person.

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

               "Threshold Percentage" shall mean 15%.

          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, shall prior to the Distribution Date also be
the holders of the Common Shares) in accordance with the terms and conditions of
this Agreement, and the Rights Agent hereby accepts such appointment.  The
Company may from time to time appoint such co-Rights Agents as it may deem
necessary or desirable upon ten (10) days prior written notice to the Rights
Agent.  In the event the Company appoints one or more co-Rights Agents, the
respective duties of the Rights Agent and any co-Rights Agents shall be as the
Company shall determine.  The Rights Agent shall have no duty to supervise and
shall in no event be liable for the acts or omissions of any such co-Rights
Agent.

          Section 3.  Issue of Right Certificates.
                      ---------------------------

          (a) Until the earlier of (i) the tenth day after the Shares
Acquisition Date or (ii) the tenth day (or such later date as may be determined
by action of the Board of Directors prior to such time as any Person becomes an
Acquiring Person) after the date of the

                                       4
<PAGE>

commencement by any Person (other than an Exempt Person) of, or of the first
public announcement of the intention of any Person (other than an Exempt Person)
to commence, a tender or exchange offer the consummation of which would result
in any Person becoming an Acquiring Person (the earlier of such dates being
referred to herein as the "Distribution Date"), (x) the Rights will be evidenced
(subject to the provisions of Section 3(b)) by the certificates for Common
Shares registered in the names of the holders thereof (which certificates shall
also be deemed to be Right Certificates) and not by separate Right Certificates,
and (y) the right to receive Right Certificates will be transferable only in
connection with the transfer of Common Shares. As soon as practicable after the
Distribution Date, the Company will prepare and execute, the Rights Agent will
countersign, and the Company will send or cause to be sent (and the Rights Agent
will, if requested, send) by first-class, postage-prepaid mail, to each record
holder of Common Shares as of the Close of Business on the Distribution Date, at
the address of such holder shown on the records of the Company, a Right
Certificate, in substantially the form of Exhibit B (a "Right Certificate"),
evidencing one Right for each Common Share so held. As of the Distribution Date,
the Rights will be evidenced solely by such Right Certificates.

          (b) With respect to certificates for Common Shares outstanding as of
the Close of Business on the Record Date, until the Distribution Date, the
Rights will be evidenced by such certificates registered in the names of the
holders thereof.  Until the Distribution Date (or the earlier of the Redemption
Date or the Final Expiration Date if occurring prior to the Distribution Date),
the surrender for transfer of any certificate for Common Shares outstanding on
the Record Date shall also constitute the transfer of the Rights associated with
the Common Shares represented thereby.

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

          This certificate also evidences and entitles the holder hereof to
          certain rights as set forth in a Rights Agreement between eFunds
          Corporation and the Rights Agent (named in the Rights Agreement) or
          any successor (as amended from time to time the "Rights Agreement"),
          the terms of which are hereby incorporated herein by reference and a
          copy of which is on file at the principal executive office of eFunds
          Corporation  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.  eFunds Corporation
          will mail to the holder of this certificate a copy of the Rights
          Agreement without charge after receipt of a written request therefor.
          Under certain circumstances, as set forth in the Rights Agreement,
          Rights issued to any Person who becomes an Acquiring Person or an
          Associate or Affiliate thereof (as defined in the Rights Agreement),
          or certain transferees of such Person, may become null and void.

                                       5
<PAGE>

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

          (d) Reference in this Agreement to certificates for Common Shares
include uncertificated Common Shares, and any uncertificated Common Share shall
also represent the associated right.  Any legend required to be placed on any
certificate for Common Shares may instead be included on any book entry
confirmation or notification to the holder of such Common Shares.

          Section 4.  Form of Right Certificates.  The Right Certificates (and
                      --------------------------
the forms of election to purchase Preferred Shares and of assignment to be
printed on the reverse thereof) shall be substantially the same as Exhibit B and
may have such marks of identification or designation and such legends, summaries
or endorsements printed thereon as the Company may deem appropriate and as are
not inconsistent with the provisions of this Agreement, or as may be required to
comply with any applicable law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange or automated
quotations system on which the Rights may from time to time be listed, or to
conform to usage.  Subject to the provisions of Section 11, the Right
Certificates shall entitle the holders thereof to purchase such number of one
one-hundredths of a Preferred Share as shall be set forth therein at the price
per one one-hundredth of a Preferred Share set forth therein (the "Purchase
Price"), but the number of such one one- hundredths of a Preferred Share and the
Purchase Price shall be subject to adjustment as provided herein.

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

                                       6
<PAGE>

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

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

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

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

          (a) The registered holder of any Right Certificate may exercise the
Rights evidenced thereby (except as otherwise provided herein) in whole or in
part at any time after the Distribution Date upon surrender of the Right
Certificate, with the form of election to purchase on the reverse side thereof
duly executed, to the Rights Agent at the office or offices of the Rights Agent
designated for such purpose, together with payment of the Purchase Price for
each one one-hundredth of a Preferred Share as to which the Rights are
exercised, at or prior to the earliest of (i) the Close of Business on May 1,
2010 (the "Final Expiration Date"), (ii) the time at which the Rights are
redeemed as provided in Section 23 (the "Redemption Date") or (iii) the time at
which such Rights are exchanged as provided in Section 24 (the "Exchange Date").

                                       7
<PAGE>

          (b) The Purchase Price for each one one-hundredth of a Preferred Share
purchasable pursuant to the exercise of a Right shall initially be $65.00, shall
be subject to adjustment from time to time as provided in Sections 11 and 13 and
shall be payable in lawful money of the United States of America in accordance
with paragraph (c) below.

          (c) Upon receipt of a Right Certificate representing exercisable
Rights, with the form of election to purchase duly executed, accompanied by
payment of the aggregate Purchase Price for the shares to be purchased and an
amount equal to any applicable transfer tax required to be paid by the holder of
such Right Certificate in accordance with Section 9 by certified check,
cashier's check or money order payable to the order of the Company, the Rights
Agent shall thereupon promptly (i) (A) requisition from any transfer agent for
the Preferred Shares (or make available, if the Rights Agent is the transfer
agent for the Preferred Shares) certificates for the number of Preferred Shares
to be purchased and the Company hereby irrevocably authorizes its transfer agent
to comply with all such requests, or (B) if the Company shall have elected to
deposit with a depository agent the total number of Preferred Shares issuable
upon exercise of the Rights hereunder, requisition from the depositary agent
depositary receipts representing such number of one one-hundredths of a
Preferred Share as are to be purchased and the Company hereby directs the
depositary agent to comply with such request, (ii) when appropriate, requisition
from the Company the amount of cash to be paid in lieu of issuance of fractional
shares in accordance with Section 14, (iii) after receipt of such certificates
or depositary receipts, cause the same to be delivered to or upon the order of
the registered holder of such Right Certificate, registered in such name or
names as may be designated by such holder, and (iv) when appropriate, after
receipt, deliver such cash to or upon the order of the registered holder of such
Right Certificate.

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

          (e) 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 unless such registered holder shall have
(i) duly completed and executed the form of election to purchase set forth on
the reverse side of the Right Certificate surrendered for such exercise and (ii)
provided such additional evidence of the identity of the Beneficial Owner (or
former Beneficial Owner) of such Right Certificate or Affiliates or Associates
thereof as the Company shall reasonably request.

          Section 8.  Cancellation of Right Certificates.  All Right
                      ----------------------------------
Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall, if surrendered to the Company or to any of its
agents, be delivered to the Rights Agent for cancellation or in canceled form,
or, if surrendered to the Rights Agent, shall be canceled by it, and no Right
Certificates

                                       8
<PAGE>

shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Rights Agreement. The Company shall deliver to the Rights
Agent for cancellation and retirement, and the Rights Agent shall so cancel and
retire, any other Right Certificate purchased or acquired by the Company
otherwise than upon the exercise thereof. The Rights Agent shall deliver all
canceled Right Certificates to the Company.

          Section 9.  Availability of Preferred Shares.
                      --------------------------------

          (a) The Company will cause to be reserved and kept available out of
its authorized and unissued Preferred Shares, or any Preferred Shares held in
its treasury, the number of Preferred Shares that will be sufficient to permit
the exercise in full of all outstanding Rights.

          (b) At such time, if any, as the Preferred Shares issuable upon the
exercise of Rights may be listed on any national securities exchange, the
Company shall use its best efforts to cause, from and after such time as the
Rights become exercisable (but only to the extent that it is reasonably likely
that the Rights will be exercised), all shares reserved for such issuance to be
listed on such exchange upon official notice of issuance upon such exercise.

          (c) The Company will prepare and file, as soon as practicable after
the Distribution Date, a registration statement under the Securities Act of
1933, as amended (the "Act"), with respect to the Rights and the securities
purchasable upon exercise of the Rights on an appropriate form, and use its best
efforts to cause such registration statement to (i) become effective as soon as
practicable after such filing and (ii) 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 or (B) the
Final 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 90 days
after the date the registration statement is filed, the exercisability of the
Rights in order to permit the registration statement to become effective.  Upon
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.
Notwithstanding any provision of this Agreement to the contrary, the Rights
shall not be exercisable in any jurisdiction if the requisite qualification in
such jurisdiction shall not have been obtained or the exercise thereof is not
permitted under applicable law.

          (d) The Company will take all such action as may be necessary to
ensure that all Preferred Shares delivered upon exercise of Rights shall, at the
time of delivery of the certificates for such Preferred Shares (subject to
payment of the Purchase Price and any applicable transfer taxes), be duly and
validly authorized and issued and fully paid and nonassessable shares.

          (e) The Company will pay when due and payable any and all federal and
state transfer taxes and charges which may be payable in respect of the issuance
or delivery of the

                                       9
<PAGE>

Right Certificates or of any Preferred Shares upon the exercise of Rights. The
Company shall not, however, be required to pay any transfer tax which may be
payable in respect of any transfer or delivery of Right Certificates to a Person
other than, or the issuance or delivery of certificates or depositary receipts
for the Preferred Shares in a name other than that of the registered holder of
the Right Certificate evidencing Rights surrendered for exercise, or to issue or
to deliver any certificates or depositary receipts for Preferred Shares upon the
exercise of any Rights until any such tax shall have been paid (any such tax
being payable by the holder of such Right Certificate at the time of surrender)
or until it has been established to the Company's reasonable satisfaction that
no such tax is due.

          Section 10.  Preferred Shares Record Date.  Each Person in whose name
                       ----------------------------
any certificate for Preferred Shares is issued upon the exercise of Rights shall
for all purposes be deemed to have become the holder of record of the Preferred
Shares represented thereby on, and such certificate shall be dated, the date
upon which the Right Certificate evidencing such Rights was duly surrendered and
payment of the Purchase Price (and any applicable transfer taxes) was made;

provided, however, that if the date of such surrender and payment is a date upon
--------  -------
which the transfer books of the Company for the Preferred Shares 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
such transfer books are open.  Prior to the exercise of the Rights evidenced
thereby, the holder of a Right Certificate shall not be entitled to any rights
of a holder of Preferred Shares for which the Rights shall be exercisable,
including, without limitation, the right to vote, to receive dividends or other
distributions or to exercise any preemptive rights, and shall not be entitled to
receive any notice of any proceedings of the Company, except as provided herein.

          Section 11.  Adjustment of Purchase Price, Number 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:

               (a)(i) In the event the Company shall at any time after the date
          of this Agreement (A) declare a dividend on the Preferred Shares
          payable in Preferred Shares, (B) subdivide the outstanding Preferred
          Shares, (C) combine the outstanding Preferred Shares into a smaller
          number of Preferred Shares or (D) issue any shares of its capital
          stock in a reclassification of the Preferred Shares (including any
          such reclassification in connection with a consolidation or merger in
          which the Company is the continuing or surviving corporation), except
          as otherwise provided in this Section 11(a), the Purchase Price in
          effect at the time of the record date for such dividend or of the
          effective date of such subdivision, combination or reclassification,
          and the number and kind of shares of capital stock to which a Right
          applies on such date, shall be proportionately adjusted so that the
          holder of any Right exercised after such time shall be entitled to
          receive the aggregate number and kind of shares of capital stock
          which, if such Right had been exercised immediately prior to such date
          and at a time when the Preferred Shares transfer books of the Company
          were open, such holder would have owned

                                       10
<PAGE>

          upon such exercise and been entitled to receive by virtue of such
          dividend, subdivision,combination or reclassification; provided,
                                                                 --------
          however, that in no event shall the consideration to be paid upon
          -------
          the exercise of one Right be less than the aggregate par value of the
          shares of capital stock of the Company issuable upon exercise of one
          Right. If an event occurs which would require an adjustment under both
          Section 11(a)(i) and Section 11(a)(ii), 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).

               (ii) Subject to Section 24 of this Agreement, in the event any
          Person becomes an Acquiring Person, unless the event by which such
          Person became an Acquiring Person is a transaction described in
          Section 13(a), each holder of a Right shall thereafter have a right to
          receive, upon exercise thereof at a price equal to the then current
          Purchase Price multiplied by the number of one one-hundredths of a
          Preferred Share for which a Right is then exercisable, in accordance
          with the terms of this Agreement and in lieu of Preferred Shares, such
          number of Common Shares of the Company as shall equal the result
          obtained by (x) multiplying the then current Purchase Price by the
          number of one one-hundredths of a Preferred Share for which a Right is
          then exercisable and dividing that product by (y) 50% of the then
          current per share market price of the Company's Common Shares
          (determined pursuant to Section 11(d)) on the date that such Person
          becomes an Acquiring Person.  In the event that any Person shall
          become an Acquiring Person and the Rights shall then be outstanding,
          the Company shall not take any action that would eliminate or diminish
          the benefits intended to be afforded by the Rights other than as
          provided in the next paragraph.

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

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

                                       11
<PAGE>

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

               (b)  In case the Company shall fix a record date for the issuance
          of rights, options or warrants to all holders of Preferred Shares
          entitling them to subscribe for or purchase Preferred Shares (or
          shares having the same rights, privileges and preferences as the
          Preferred Shares (such shares are herein called "preferred share
          equivalents")) or securities convertible into Preferred Shares or
          preferred share equivalents at a price per Preferred Share or
          preferred share equivalent (or having a conversion price per share, if
          a security convertible into Preferred Shares or preferred share
          equivalents) less than the then current per share market price (as
          such term is defined in Section 11(d)) of the Preferred Shares on such
          record date, the Purchase Price to be in effect after such record date
          shall be determined by multiplying the Purchase Price in effect
          immediately prior to such record date by a fraction, the numerator of
          which shall be the number of Preferred Shares outstanding on such
          record date plus the number of Preferred Shares which the aggregate
          offering price of the total number of Preferred Shares and/or
          preferred share equivalents so to be offered (and/or the aggregate
          initial conversion price of the convertible securities so to be
          offered) would purchase at such current market price and the
          denominator of which shall be the number of Preferred Shares
          outstanding on such record date plus the number of additional
          Preferred Shares and/or preferred share equivalents to be offered for
          subscription or purchase (or into which the convertible securities so
          to be offered are initially convertible); provided, however, that in
                                                    --------  -------
          no event shall the consideration to be paid upon the exercise of one
          Right be less than the aggregate par value of the shares of capital
          stock of the Company issuable upon exercise of one Right.  In case
          such subscription price may be paid in a consideration part or all of
          which shall be in a form other than cash, the value of such
          consideration shall be determined in good faith by the Board of
          Directors of the Company, whose determination shall be described in a
          statement filed with the Rights Agent and shall be binding on the
          Rights Agent and the holders of the Rights.  Preferred Shares held for
          the account of the Company shall not be deemed outstanding for the
          purpose of any such computation.  Such adjustment shall be made
          successively whenever such a record date is fixed; and in the event
          that such rights, options or warrants are not so issued, the Purchase
          Price shall be adjusted to be the Purchase Price which would then be
          in effect if such record date had not been fixed.

               (c)  In case the Company shall fix a record date for the making
          of a distribution to all holders of the Preferred Shares (including
          any such distribution made in connection with a consolidation or
          merger in which the Company is the

                                       12
<PAGE>

          continuing or surviving corporation) of evidences of indebtedness or
          assets (other than a regular quarterly cash dividend or a dividend
          payable in Preferred Shares) or subscription rights or warrants
          (excluding those referred to in Section 11(b)), the Purchase Price to
          be in effect after such record date shall be determined by multiplying
          the Purchase Price in effect immediately prior to such record date by
          a fraction, the numerator of which shall be the then current per share
          market price of the Preferred Shares on such record date, less the
          fair market value (as determined in good faith by the Board of
          Directors of the Company, whose determination shall be described in a
          statement filed with the Rights Agent) of the portion of the assets or
          evidences of indebtedness so to be distributed or of such subscription
          rights or warrants applicable to one Preferred Share, and the
          denominator of which shall be such current per share market price of
          the Preferred Shares; provided, however, that in no event shall the
                                --------  -------
          consideration to be paid upon the exercise of one Right be less than
          the aggregate par value of the shares of capital stock of the Company
          to be issued upon exercise of one Right. Such adjustments shall be
          made successively whenever such a record date is fixed; and in the
          event that such distribution is not so made, the Purchase Price shall
          again be adjusted to be the Purchase Price which would then be in
          effect if such record date had not been fixed.

               (d)(i) For the purpose of any computation hereunder, the "current
          per share market price" of any security (a "Security" for the purpose
          of this Section 11(d)(i)) on any date shall be deemed to be the
          average of the daily closing prices per share of such Security for the
          30 consecutive Trading Days immediately prior to such date; provided,
                                                                      --------
          however, that in the event that the current per share market price of
          -------
          the Security is determined during a period following the announcement
          by the issuer of such Security of (A) a dividend or distribution on
          such Security payable in shares of such Security or securities
          convertible into such shares, or (B) any subdivision, combination or
          reclassification of such Security and prior to the expiration of 30
          Trading Days after the ex-dividend date for such dividend or
          distribution, or the record date for such subdivision, combination or
          reclassification, then, and in each such case, the current per share
          market price shall be appropriately adjusted to reflect the current
          market price per share equivalent of such Security after such ex-
          dividend or record date.  The closing price for each day shall be the
          last sale price, regular way, or, in case no such sale takes place on
          such day, the average of the closing bid and asked prices, regular
          way, in either case as reported in the principal consolidated
          transaction reporting system with respect to securities listed or
          admitted to trading on the New York Stock Exchange or, if the Security
          is not listed or admitted to trading on the New York Stock Exchange,
          as reported in the principal consolidated transaction reporting system
          with respect to securities listed on the principal national securities
          exchange on which the Security is listed or admitted to trading or, if
          the Security is not listed or admitted to trading on any national
          securities exchange, the last sale price on the Nasdaq National Market
          or such other system then in use, or, if on any such date the Security
          is not quoted on

                                       13
<PAGE>

          the Nasdaq National Market, the average of the closing bid and asked
          prices as furnished by a professional market maker making a market in
          the Security selected by the Board of Directors of the Company. If on
          any such day no market maker is making a market in the Common Shares,
          the fair value of such share on such day as determined in good faith
          by the Board of Directors of the Company shall be used in lieu of the
          closing price for such day. The term "Trading Day" shall mean a day on
          which the principal national securities exchange on which the Security
          is listed or admitted to trading or the Nasdaq National Market, as
          applicable, is open for the transaction of business or, if the
          Security is not listed or admitted to trading on any national
          securities exchange or the Nasdaq National Market, a Business Day.

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

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

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

                                       14
<PAGE>

          9, 10, 13 and 14 with respect to the Preferred Shares shall apply on
          like terms to any such other shares.

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

               (h)  Unless the Company shall have exercised its election as
          provided in Section 11(i), subject to the provisions of Sections 11(a)
          and 13, upon each adjustment of the Purchase Price as a result of the
          calculations made in Sections 11(b) and (c), each Right outstanding
          immediately prior to the making of such adjustment shall thereafter
          evidence the right to purchase, at the adjusted Purchase Price, that
          number of one one-hundredths of a Preferred Share (calculated to the
          nearest one one-millionth of a Preferred Share) obtained by (i)
          multiplying (x) the number of one one-hundredths of a Preferred 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 substitution
          for any adjustment in the number of one one-hundredths of a Preferred
          Share purchasable upon the exercise of a Right.  Each of the Rights
          outstanding after such adjustment of the number of Rights shall be
          exercisable for the number of one one-hundredths of a Preferred Share
          for which a Right was exercisable immediately prior to such
          adjustment.  Each Right held of record prior to such adjustment of the
          number of Rights shall become that number of Rights (calculated to the
          nearest one ten-thousandth) obtained by dividing the Purchase Price in
          effect immediately prior to adjustment of the Purchase Price by the
          Purchase Price in effect immediately after adjustment of the Purchase
          Price.  The Company shall make a public announcement of its election
          to adjust the number of Rights, indicating the record date for the
          adjustment, and, if known at the time, the amount of the adjustment to
          be made.  This record date may be the date on which the Purchase Price
          is adjusted or any day thereafter, but, if the Right Certificates have
          been issued, shall be at least ten days later than the date of the
          public announcement.  If Right Certificates have been issued, upon
          each adjustment of the number of Rights pursuant to this Section
          11(i), the Company shall, as promptly as practicable, cause to be
          distributed to holders of record of Right Certificates on such record
          date Right Certificates evidencing, subject to Section 14, the
          additional Rights to which such holders shall be entitled as a result
          of such adjustment, or, at the option of the Company, shall cause to
          be distributed to such holders of record in substitution and
          replacement for the Right Certificates

                                       15
<PAGE>

          held by such holders prior to the date of adjustment, and upon
          surrender thereof, if required by the Company, new Right Certificates
          evidencing all the Rights to which such holders shall be entitled
          after such adjustment. Right Certificates so to be distributed shall
          be issued, executed and countersigned in the manner provided for
          herein, 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 Right 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 Preferred Share
          issuable upon the exercise of the Rights, the Right Certificates
          theretofore and thereafter issued may continue to express the Purchase
          Price and the number of one one-hundredths of a Preferred Share which
          were expressed in the initial Right Certificates issued hereunder.

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

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

               (m)  Anything in this Section 11 to the contrary notwithstanding,
          the Company shall be entitled to make such reductions in the Purchase
          Price, in addition to those adjustments expressly required by this
          Section 11, as and to the extent that in their sole discretion the
          Board of Directors of the Company shall determine to be advisable in
          order that any (i) consolidation or subdivision of the Preferred
          Shares, (ii) issuance wholly for cash of any Preferred Shares at less
          than the current market price, (iii) issuance wholly for cash of
          Preferred Shares or securities which by their terms are convertible
          into or exchangeable for Preferred Shares, (iv) dividends on Preferred
          Shares payable in Preferred Shares or (v) issuance of rights, options
          or warrants referred to hereinabove in Section 11(b),

                                       16
<PAGE>

          hereafter made by the Company to holders of its Preferred Shares shall
          not be taxable to such stockholders.

               (n)  The Company 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 which complies with Section 11(o)),
          (ii) merge with or into any other Person (other than a Subsidiary of
          the Company in a transaction which complies with Section 11(o)), 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 and/or any of its
          Subsidiaries in one or more transaction each of which complies with
          Section 11(o)), 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 which
          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
          shareholders of the Person who constitutes, or would constitute, the
          "Principal Party" for purposes of Section 13(a) shall have received a
          distribution of Rights previously owned by such Person or any of its
          Affiliates and Associates.

               (o)  The Company, after the Distribution Date, will not, except
          as permitted by Section 23, 24 or 27, take (or permit any Subsidiary
          of the Company 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 or the Rights to the contrary
          notwithstanding, in the event that at any time after the date of this
          Agreement and prior to the Distribution Date, the Company shall (i)
          declare or pay any dividend on the Common Shares payable in Common
          Shares or (ii) effect a subdivision, combination or consolidation of
          the Common Shares (by reclassification or otherwise than by payment of
          dividends in Common Shares) into a greater or lesser number of Common
          Shares, then in any such case (i) the Purchase Price for each one one-
          hundredths of a Preferred Share purchasable after such event upon
          proper exercise of each Right shall be determined by multiplying the
          Purchase Price for each one one-hundredths of a Preferred Share so
          purchasable immediately prior to such event by a fraction, the
          numerator of which is the number of Common Shares outstanding
          immediately before such event and the denominator of which is the
          number of Common Shares outstanding immediately after such event, and
          (ii) each Common Share outstanding immediately after such event shall
          have issued with respect to it that number of Rights which each Common
          Share outstanding immediately prior to such event had issued with
          respect to it.  The adjustments provided for in this Section 11(p)
          shall be made successively whenever such a dividend is declared or
          paid or such a subdivision,

                                       17
<PAGE>

          combination or consolidation is effected. If an event occurs which
          would require an adjustment under Section 11(a)(ii) and this Section
          11(p), the adjustments provided for in this Section 11(p) shall be in
          addition and prior to any adjustment required pursuant to Section
          11(a)(ii).

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

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

          (a)  In the event, directly or indirectly, at any time after there is
an Acquiring Person,

               (w)  the Company shall consolidate with, or merge with and into,
          any other Person and the Company shall not be the continuing or
          surviving corporation of such consolidation or merger,

               (x)  any Person shall consolidate with, or merge with and into,
          the Company, 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 Common Shares shall
          be changed into or exchanged for stock or other securities of any
          other Person (or the Company) or cash or any other property,

               (y)  the Company shall effect a statutory share exchange with the
          outstanding Common Shares of the Company being exchanged for stock or
          other securities of any other Person, cash or property, or

               (z)  the Company shall sell or otherwise transfer (or one or more
          of its Subsidiaries shall sell or otherwise transfer), in one or more
          transactions, assets or earning power aggregating 50% or more of the
          assets or earning power of the Company and its Subsidiaries (taken as
          a whole) to any other Person other than the Company or one or more of
          its wholly owned Subsidiaries,

then, and in each such case, except as contemplated by Section 13(e), proper
provision shall be made so that (i) each holder of a Right (except as otherwise
provided in this Agreement) shall thereafter have the right to receive, upon the
exercise thereof at a price equal to the then current Purchase Price multiplied
by the number of one one-hundredths of a Preferred Share for which a Right is
then exercisable, in accordance with the terms of this Agreement and in lieu of
Preferred Shares, such number of validly authorized and issued, fully paid,
nonassessable and freely

                                       18
<PAGE>

tradeable Common Shares of the Principal Party, not subject to any liens,
encumbrances, rights of first refusal or adverse claims, as shall be equal to
the result obtained by (x) multiplying the then current Purchase Price by the
number of one one-hundredths of a Preferred Share for which a Right is,
immediately prior to such consolidation, merger, statutory share exchange, sale
or transfer, exercisable and (y) dividing that product by 50% of the current per
share market price of the Common Shares of such Principal Party (determined
pursuant to Section 11(d)) on the date of consummation of such consolidation,
merger, statutory share exchange, sale or transfer; (ii) such Principal Party
shall thereafter be liable for, and shall assume, by virtue of such merger,
consolidation, statutory share exchange, sale or transfer, all the obligations
and duties of the Company pursuant to this Agreement; (iii) the term "Company"
shall thereafter be deemed to refer to such Principal Party; and (iv) such
Principal Party shall take such steps (including, but not limited to, the
reservation of a sufficient number of its Common Shares to permit the exercise
of all outstanding Rights) in connection with the consummation of any such
transaction as may be necessary to assure that the provisions of this Agreement
shall thereafter be applicable, as nearly as reasonably may be, in relation to
its Common Shares thereafter deliverable upon the exercise of the Rights.

          (b)  "Principal Party" shall mean:

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

               (ii) in the case of any transaction described in clause (z) of
          the first sentence of Section 13(a), 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 Shares of such
--------  -------
Person are not at such time or have not been continuously over the preceding 12-
month period registered under Section 12 of the Exchange Act, and such Person is
a direct or indirect Subsidiary of another Person the Common Shares of which are
and have 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 Shares 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 Shares having the greatest aggregate market value.

          (c)  The Company shall not consummate any such consolidation, merger,
share exchange, sale or transfer unless the Principal Party shall have a
sufficient number of authorized, unreserved Common Shares which have not been
issued or are held in treasury 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

                                       19
<PAGE>

13 and further providing that, as soon as practicable after the date of any such
consolidation, merger, share exchange, sale or transfer, 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 use its best
          efforts to cause such registration statement to (A) become effective
          as soon as practicable after such filing and (B) remain effective
          (with a prospectus at all times meeting the requirements of the Act)
          until the earlier of (1) the date as of which the Rights are no longer
          exercisable for such securities or (2) the Final Expiration Date;

               (ii)  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; and

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

          (d)  The Company shall not enter into any transaction of the kind
referred to in this Section 13 if at the time of such transaction there are any
rights, warrants, instruments or securities outstanding or any agreements or
arrangements which, as a result of the consummation of such transaction, would
substantially diminish or otherwise eliminate the benefits intended to be
afforded by the Rights.  Without limiting the generality of the preceding
sentence, in case the Principal Party which is to be a party to a transaction of
the kind referred to in this Section 13 has a provision in any of its authorized
securities or in its certificate of incorporation or bylaws or other instrument
governing its corporate affairs, which provision would have the effect of (i)
causing such Principal Party to issue, in connection with, or as a consequence
of, the consummation of a transaction of the kind referred to in this Section
13, Common Shares of such Principal Party at less than the then current per
share market price (determined pursuant to Section 11(d)) or securities
exercisable for or convertible into Common Shares of such Principal Party at
less than such then current market price (other than to holders of Rights
pursuant to this Section 13) or (ii) providing for any special payment, tax or
similar provisions in connection with the issuance of Common Shares of such
Principal Party pursuant to the provisions of Section 13, then, in such event,
the Company shall not consummate any such transaction unless prior thereto the
provision in question of such Principal Party shall have been canceled, waived
or amended so as to avoid any of the effects referred to in clauses (i) and (ii)
of this paragraph, or the authorized securities shall have been redeemed, so
that the applicable provision will have no effect in connection with, or as a
consequence of, the consummation of the proposed transaction.

          (e)  Notwithstanding anything in this Agreement to the contrary,
Section 13 shall not be applicable to a transaction described in clauses (w),
(x) or (y) of Section 13(a) if (i) such transaction is consummated with a Person
or Persons who acquired Common Shares pursuant to a Permitted Offer (or a wholly
owned Subsidiary of any such Person or Persons), (ii) the price per Common Share
offered in such transaction is not less than the price per Common

                                       20
<PAGE>

Share paid to all holders of Common Shares 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 Common Shares 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(e), all Rights hereunder shall expire.

          (f)  The provisions of this Section 13 shall similarly apply to
successive mergers, consolidations, statutory share exchanges or sale or other
transfers.

          Section 14.  Fractional Rights and Fractional Shares.
                       ---------------------------------------

          (a)  The Company shall not be required to issue fractions of Rights or
to distribute Right Certificates which evidence fractional Rights.  In lieu of
such fractional Rights, there shall be paid to the registered holders of the
Right Certificates with regard to which such fractional Rights would otherwise
be issuable an amount in cash equal to the same fraction of the current market
value of a whole Right.  For the purposes of this Section 14(a), the current
market value of a whole Right shall be the closing price of the Rights for the
Trading Day immediately prior to the date on which such fractional Rights would
have been otherwise issuable determined in accordance with Section 11(d)(i).

          (b)  The Company shall not be required to issue fractions of Preferred
Shares (other than fractions which are integral multiples of one one-hundredth
of a Preferred Share) upon exercise of the Rights or to distribute certificates
which evidence fractional Preferred Shares (other than fractions which are
integral multiples of one one-hundredth of a Preferred Share).  Fractions of
Preferred Shares in integral multiples of one one-hundredth of a Preferred Share
may, at the election of the Company, be evidenced by depositary receipts
pursuant to an appropriate agreement between the Company and a depositary
selected by it; provided, however, that if the Company issues depositary
                -----------------
receipts pursuant to any such agreement, such agreement shall provide that the
holders of such depositary receipts shall have all the rights, privileges and
preferences to which they are entitled as beneficial owners of the Preferred
Shares represented by such depositary receipts.  In lieu of fractional Preferred
Shares that are not integral multiples of one one-hundredth of a Preferred
Share, the Company shall pay to the registered holders of Right Certificates at
the time such Rights are exercised as herein provided an amount in cash equal to
the same fraction of the current market value of one Preferred Share.  For the
purposes of this Section 14(b), the current market value of a Preferred Share
shall be the closing price of a Preferred Share (as determined pursuant to
Section 11(d)) for the Trading Day immediately prior to the date of such
exercise.

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

          Section 15.  Rights of Action.  All rights of action in respect of
                       ----------------
this Agreement, excepting the rights of action given to the Rights Agent under
Section 18, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the

                                       21
<PAGE>

holders of the Common Shares); and any registered holder of any Right
Certificate (or, prior to the Distribution Date, of the Common Shares), without
the consent of the Rights Agent or of the holder of any other Right Certificate
(or, prior to the Distribution Date, of the Common Shares), may, in such
holder's own behalf and for such holder's own benefit, enforce, and may
institute and maintain any suit, action or proceeding against the Company to
enforce, or otherwise act in respect of, such holder's right to exercise the
Rights evidenced by such Right Certificate in the manner provided in such Right
Certificate and in this Agreement. Without limiting the foregoing or any
remedies available to the holders of Rights, it is specifically acknowledged
that the holders of Rights would not have an adequate remedy at law for any
breach of this Agreement and will be entitled to specific performance of the
obligations under, and injunctive relief against actual or threatened violations
of the obligations of any Person subject to, this Agreement.

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

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

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

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

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

                                       22
<PAGE>

          Section 18.  Concerning the Rights Agent.
                       ---------------------------

          (a)  The Company will pay to the Rights Agent reasonable compensation
for all services rendered by it hereunder and, from time to time, on demand of
the Rights Agent, its reasonable expenses and counsel fees and other
disbursements incurred in the administration and execution of this Agreement and
the exercise and performance of its duties hereunder. The Company will indemnify
the Rights Agent for, and to hold it harmless against, any loss, liability, or
expense, incurred without gross 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 Right
Certificate or certificate for the Preferred Shares (or for depositary receipts
evidencing fractional interests in Preferred Shares) or Common Shares or for
other securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, statement, or other paper or document believed by it to be genuine
and to be signed, executed and, where necessary, verified or acknowledged, by
the proper Person or Persons, or otherwise upon the advice of counsel as set
forth in Section 20.

          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 stock transfer or corporate trust business of the Rights Agent or any
successor Rights Agent, shall be the successor to the Rights Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties to this Agreement, provided that such corporation
would be eligible for appointment as a successor Rights Agent under the
provisions of Section 21. In case at the time such successor Rights Agent shall
succeed to the agency created by this Agreement any of the Right Certificates
shall have been countersigned but not delivered, any such successor Rights Agent
may adopt the countersignature of the predecessor Rights Agent and deliver such
Right Certificates so countersigned; and in case at that time any of the Right
Certificates shall not have been countersigned, any successor Rights Agent may
countersign such Right Certificates either in the name of the predecessor Rights
Agent or in the name of the successor Rights Agent; and in all such cases such
Right Certificates shall have the full force provided in the Right Certificates
and in this Agreement.

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

                                       23
<PAGE>

so countersigned; and in case at that time any of the Right Certificates shall
not have been countersigned, the Rights Agent may countersign such Right
Certificates either in its prior name or in its changed name; and in all such
cases such Right Certificates shall have the full force provided in the Right
Certificates and in this Agreement.

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

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

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

               (c)  The Rights Agent shall be liable hereunder to the Company
          and any other Person only for its own gross 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 Right Certificates (except its countersignature thereof) or be
          required to verify the same, but all such statements and recitals are
          and shall be deemed to have been made by the Company only.

               (e)  The Rights Agent shall not be under any responsibility in
          respect of the validity of this Agreement or the execution and
          delivery of this Agreement (except the due execution of this Agreement
          by the Rights Agent) or in respect of the validity or execution of any
          Right Certificate (except its countersignature thereof); nor shall it
          be responsible for any breach by the Company of any covenant or
          condition contained in this Agreement or in any Right Certificate; nor
          shall it be responsible for any change in the exercisability of the
          Rights (including the Rights becoming void pursuant to Section
          11(a)(ii)) or any adjustment in the terms of the Rights (including the
          manner, method or amount thereof) provided for in Section 3, 11, 13,
          23 or 24, or the ascertaining of the existence of facts that

                                       24
<PAGE>

          would require any such change or adjustment (except with respect to
          the exercise of Rights evidenced by Right Certificates after receipt
          of actual notice from the Company stating that a change or adjustment
          is required and specifying the manner and amount thereof); nor shall
          it by any act hereunder be deemed to make any representation or
          warranty as to the authorization or reservation of any Preferred
          Shares to be issued pursuant to this Agreement or any Right
          Certificate or as to whether any Preferred Shares will, when issued,
          be validly authorized and issued, fully paid and nonassessable.

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

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

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

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

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

                                       25
<PAGE>

          Section 21.  Change of Rights Agent.  The Rights Agent or any
                       ----------------------
successor Rights Agent may resign and be discharged from its duties under this
Agreement upon 30 days' notice in writing mailed to the Company and to each
transfer agent of the Common Shares and Preferred Shares by registered or
certified mail, and to the holders of the Right Certificates by first-class
mail. The Company may remove the Rights Agent or any successor Rights Agent upon
30 days' notice in writing, mailed to the Rights Agent or successor Rights
Agent, as the case may be, and to each transfer agent of the Common Shares and
Preferred Shares by registered or certified mail. If the Rights Agent shall
resign or be removed or shall otherwise become incapable of acting, the Company
shall appoint a successor to the Rights Agent. If the Company shall fail to make
such appointment within a period of 30 days after giving notice of such removal
or after it has been notified in writing of such resignation or incapacity by
the resigning or incapacitated Rights Agent or by the holder of a Right
Certificate (who shall, with such notice, submit such holder's Right Certificate
for inspection by the Company), then the registered holder of any Right
Certificate may apply to any court of competent jurisdiction for the appointment
of a new Rights Agent. Any successor Rights Agent, whether appointed by the
Company or by such a court, shall be (a) a corporation organized and doing
business under the laws of the United States or of the State of New York (or of
any other state of the United States so long as such corporation is authorized
to do business as a banking institution in the State of Wisconsin or New York),
in good standing, having an office in the State of Wisconsin or New York, 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 or is a subsidiary of a corporation which has at the
time of its appointment as Rights Agent a combined capital and surplus of at
least $100 million, 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 Shares and Preferred Shares. Failure to give any notice provided for
in this Section 21, however, or any defect therein, shall not affect the
legality or validity of the resignation or removal of the Rights Agent or the
appointment of the successor Rights Agent, as the case may be.

          Section 22.  Issuance of New Right Certificates.  Notwithstanding any
                       ----------------------------------
of the provisions of this Agreement or of the Rights to the contrary, the
Company may, at its option, issue new Right Certificates evidencing Rights in
such form as may be approved by its Board of Directors to reflect any adjustment
or change in the Purchase Price and the number or kind or class of shares or
other securities or property purchasable under the Right Certificates made in
accordance with the provisions of this Agreement. In addition, in connection
with the issuance or sale of Common Shares after the Distribution Date, the
Company shall, with respect to Common Shares issued upon the exercise,
conversion or exchange of securities hereinafter issued by the Company and
outstanding on the Distribution Date, issue Right Certificates representing the
appropriate number of rights in connection with such issuance; provided,

                                       26
<PAGE>

however, that (i) no such Right 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 Right Certificate would be issued, and (ii) no such
Right Certificate shall be issued if, and to the extent that, appropriate
adjustment shall otherwise have been made in lieu of the issuance thereof.

          Section 23.  Redemption.
                       ----------

          (a)  The Board of Directors of the Company may, at its option, at any
time prior to the Close of Business on the tenth day after the Shares
Acquisition Date, redeem all but not less than all of the then outstanding
Rights at a redemption price of $0.01 per Right, appropriately adjusted to
reflect any stock split, stock dividend or similar transaction occurring after
the date of this Agreement (such redemption price being hereinafter referred to
as the "Redemption Price"). The redemption of the Rights by the Board of
Directors may be made effective at such time and on such basis and with such
conditions as the Board of Directors in its sole discretion may establish.

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

          Section 24.  Exchange.
                       --------

          (a)  The Board of Directors of the Company may, at its option, at any
time after the Close of Business on the tenth day after the Shares Acquisition
Date, exchange all or part of the then outstanding and exercisable Rights (which
shall not include Rights that have become void pursuant to the provisions of
Section 11(a)(ii)) for Common Shares at an exchange ratio of one Common Share
per Right, appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after the date of this Agreement (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

                                       27
<PAGE>

than an Exempt Person) together with all Affiliates and Associates of such
Person, becomes the Beneficial Owner of 50% or more of the Common Shares then
outstanding.

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

          (c)  In the event that there shall not be sufficient Common Shares
issued but not outstanding or authorized but unissued and unreserved to permit
any exchange of Rights as contemplated in accordance with this Section 24, the
Company shall take all such action as may be necessary to authorize additional
Common Shares for issuance upon exchange of the Rights. In the event the Company
shall, after good faith effort, be unable to take all such action as may be
necessary to authorize such additional Common Shares, the Company shall
substitute, for each Common Share that would otherwise be issuable upon exchange
of a Right, a number of Preferred Shares or fraction thereof such that the
current per share market price of one Preferred Share multiplied by such number
or fraction is equal to the current per share market price of one Common Share
as of the date of issuance of such Preferred Shares or fraction thereof.

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

          Section 25.  Notice of Certain Events.
                       ------------------------

          (a)  In case the Company shall propose at any time after the
Distribution Date (i) to pay any dividend payable in stock of any class to the
holders of its Preferred Shares or to make any other distribution to the holders
of its Preferred Shares (other than a regular quarterly

                                       28
<PAGE>

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

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

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

               eFunds Corporation
               400 West Deluxe Parkway
               P.O. Box 12536
               Milwaukee, WI 53212
               Attn: Chief Financial Officer

               Copy to: General Counsel

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 Right
Certificate to or on the Rights

                                       29
<PAGE>

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:

               EquiServe Trust Company N.A.
               Attention: John Ruocco
               1 North State Street
               11/th/ Floor
               Chicago, IL 60602

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

          Section 27.  Supplements and Amendments.  The Company may from time to
                       --------------------------
time supplement or amend this Agreement without the approval of any holders of
Right Certificates in order (i) to extend the Final Expiration Date or, provided
that at the time of such amendment no Person has become an Acquiring Person, the
period during which the Rights may be redeemed, (ii) to cure any ambiguity, to
correct or supplement any provision contained herein which may be defective or
inconsistent with any other provisions of this Agreement, (iii) prior to the
time that any Person becomes an Acquiring Person, to otherwise change or
supplement any provision in this Agreement in any manner which the Company may
deem necessary or desirable, or (iv) subject to clause (i) of this Section 27,
from and after the time that any Person becomes an Acquiring Person, to
otherwise change or supplement any provision in this Agreement in any manner
which the Company may deem necessary or desirable and which shall not adversely
affect the interests of the holders of Right Certificates (other than an
Acquiring Person or an Affiliate or Associate of an Acquiring Person).

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

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

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

                                       30
<PAGE>

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

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

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

                                       31
<PAGE>

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

                                    EFUNDS CORPORATION

                                    By: /s/ John A. Blanchard III
                                        ---------------------------
                                    Name: John A. Blanchard III
                                          -------------------------

                                    EQUISERVE TRUST COMPANY N.A.

                                    By: /s/ John H. Ruocco
                                        ---------------------------
                                    Name: John H. Ruocco
                                          -------------------------

                                       32
<PAGE>

                                                                       Exhibit A
                                                                       ---------

                          CERTIFICATE OF DESIGNATIONS
                                      OF
                 SERIES A JUNIOR PARTICIPATING PREFERRED STOCK
                                      OF
                              EFUNDS CORPORATION

          The undersigned hereby certifies that the Board of Directors of eFunds
Corporation (the "Corporation"), a corporation organized and existing under the
Delaware General Corporation Law, duly adopted the following resolution on
_____, 2000:

          RESOLVED, that a series of preferred stock of the Corporation is
hereby created, and the designation and amount thereof and the relative rights
and preferences of the shares of such series, are as follows:

          Section 1.  Designation and Amount.  The shares of such series shall
                      ----------------------
be designated as "Series A Junior Participating Preferred Stock" (the "Preferred
Shares") and the number of shares constituting the Preferred Shares shall be
1/100th of authorized common.  Such number of shares may be increased or
decreased by resolution of the Board of Directors and any necessary stockholder
approval; provided, however, that no decrease shall reduce the number of shares
          -----------------
of Preferred Shares 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 Preferred Shares.

          Section 2.  Dividends and Distributions.
                      ---------------------------

          (a)  Subject to the rights of the holders of any shares of any series
of preferred stock (or any similar stock) ranking prior and superior to the
Preferred Shares with respect to dividends, the holders of Preferred Shares, in
preference to the holders of Common Stock, par value $.01 (the "Common Stock"),
of the Corporation, and of any other junior stock, shall be entitled to receive,
when, as and if declared by the Board of Directors out of funds legally
available for the purpose, quarterly dividends payable in cash on the first day
of March, June, September and December in each year (each such date being
referred to herein as a "Quarterly Dividend Payment Date"), commencing on the
first Quarterly Dividend Payment Date after the first issuance of a share or
fraction of a share of Preferred Shares, in an amount per share (rounded to the
nearest cent) equal to the greater of (i) $1.00 or (ii) 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

                                      A-1
<PAGE>

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 Preferred Shares. In the event
the Corporation shall at any time after the business day prior to the Company's
initial public offering ("Record Date"), declare or pay any dividend on the
Common Stock payable in shares of Common Stock, or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise) into a greater or lesser number of shares of
Common Stock, then in each such case the amount to which holders of shares of
Preferred Shares were entitled immediately prior to such event under clause (ii)
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
Preferred Shares as provided in paragraph (a) of this Section immediately after
it declares a dividend or distribution on the Common Stock (other than a
dividend payable in shares of Common Stock or a subdivision of the outstanding
Common Stock); provided that, in the event no dividend or distribution shall
have been declared on the Common Stock during the period between any Quarterly
Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a
dividend of $1.00 per share on the Preferred Shares shall nevertheless be
payable, out of funds legally available for such purpose, on such subsequent
Quarterly Dividend Payment Date.

          (c)  Dividends shall begin to accrue and be cumulative on outstanding
shares of Preferred Shares from their date of issue. Accrued but unpaid
dividends shall not bear interest. Dividends paid on the shares of Preferred
Shares 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 Preferred
Shares entitled to receive payment of a dividend or distribution declared
thereon, which record date shall be not more than 60 days prior to the date
fixed for the payment thereof.

          Section 3.  Voting Rights.
                      -------------

          (a)  Subject to the provision for adjustment hereinafter set forth,
each Preferred Share 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 after the Record Date, declare or pay any
dividend on the Common Stock payable in shares of Common Stock, or effect a
subdivision or combination or consolidation of the outstanding shares of Common
Stock (by reclassification or otherwise) 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 Preferred Shares 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.

                                      A-2
<PAGE>

          (b)  Except as otherwise provided herein or by law, the holders of
Preferred Shares and the holders of Common Stock and any other capital stock of
the Corporation having general voting rights shall vote together as one class on
all matters submitted to a vote of stockholders of the Corporation.

          (c)  Except as set forth herein or required by law, holders of
Preferred Shares 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 Preferred Shares 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 Preferred Shares outstanding shall have been paid
in full, the Corporation shall not:

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

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

               (iii)  redeem or purchase or otherwise acquire for consideration
          shares of any stock ranking junior (either as to dividends or upon
          liquidation, dissolution or winding up) to the Preferred Shares;
          provided, however, 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 Preferred Shares; or

               (iv)   redeem or purchase or otherwise acquire for consideration
          any Preferred Shares, or any stock ranking on a parity with the
          Preferred Shares, 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.

                                      A-3
<PAGE>

          (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 Preferred Shares 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 subject to the
conditions and restrictions on issuance set forth herein, in the Certificate of
Incorporation, or in any other certificate of designation creating a series of
preferred stock or any similar stock or as otherwise required by law.

          Section 6.  Liquidation, Dissolution or Winding Up.  Upon any
                      --------------------------------------
liquidation, dissolution or winding up of the Corporation, no distribution shall
be made (1) to the holders of shares of stock ranking junior (either as to
dividends or upon liquidation, dissolution or winding up) to the Preferred
Shares unless, prior thereto, the holders of Preferred Shares shall have
received the greater of (i) $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, or (ii) an aggregate amount per share, subject to the provision
for adjustment hereinafter set forth, equal to 100 times the aggregate amount to
be distributed per share to holders of Common Stock, or (2) to the holders of
stock ranking on a parity (either as to dividends or upon liquidation,
dissolution or winding up) with the Preferred Shares, except distributions made
ratably on the Preferred Shares and all such parity stock in proportion to the
total amounts to which the holders of all such shares are entitled upon such
liquidation, dissolution or winding up. In the event the Corporation shall at
any time after the Record Date declare or pay any dividend on the Common Stock
payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise) into a greater or lesser number of shares of Common Stock, then in
each such case the aggregate amount to which holders of shares of Preferred
Shares were entitled immediately prior to such event under clause (1)(ii) of the
preceding sentence shall be adjusted by multiplying such amount by a fraction
the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

          Section 7.  Consolidation, Merger, etc.  In case the Corporation shall
                      ---------------------------
enter into any consolidation, merger, combination or other transaction in which
the shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case each share of
Preferred Shares shall at the same time be similarly exchanged or changed into
an amount per share, subject to the provision for adjustment hereinafter set
forth, equal to 100 times the aggregate amount of stock, securities, cash and/or
any other property (payable in kind), as the case may be, into which or for
which each share of Common Stock is changed or exchanged. In the event the
Corporation shall at any time after the Record Date declare or pay any dividend
on the Common Stock payable in shares of Common Stock, or effect a subdivision
or combination or consolidation of the outstanding shares of

                                      A-4
<PAGE>

Common Stock (by reclassification or otherwise) 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 Preferred
Shares shall be adjusted by multiplying such amount by a fraction, the numerator
of which is the number of shares of Common Stock outstanding immediately after
such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event.

          Section 8.  No Redemption.  The Preferred Shares shall not be
                      -------------
redeemable.

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

          Section 10. Fractional Shares.  Preferred Shares may be issued in
                      -----------------
fractions of a share which are integral multiples of one one-hundredth of a
share which shall entitle the holder, in proportion to such holder's fractional
shares, to receive dividends, participate in distributions and to have the
benefit of all other rights of holders of Preferred Shares.

          Section 11. 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 rights of the Preferred Shares so as to affect
them adversely without the affirmative vote of the holders of at least two-
thirds of the outstanding shares of Preferred Shares, voting together as a
single class.

          IN WITNESS WHEREOF, I have subscribed my name this ____ day of
____________, 2000.

                                             EFUNDS CORPORATION

                                             By:_____________________
                                             Name:___________________

                                      A-5
<PAGE>

                                                                       Exhibit B
                                                                       ---------

                          FORM OF RIGHT CERTIFICATES
                          --------------------------

Certificate No. R-___  ____________ Rights

NOT EXERCISABLE AFTER MAY 1, 2010 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS.
THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.01 PER RIGHT (SUBJECT TO ADJUSTMENT)
AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN
CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS BENEFICIALLY OWNED BY A
PERSON WHO IS, WAS OR BECOMES AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE
OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND
SUBSEQUENT HOLDERS OF SUCH RIGHTS MAY BECOME NULL AND VOID.

                               RIGHT CERTIFICATE

                              EFUNDS CORPORATION

          This certifies that ____________________, or registered assigns, is
the registered owner of the number of Rights set forth above, each of which
entitles the owner thereof, subject to the terms, provisions and conditions of
the Rights Agreement, dated as of May 1, 2000, (the "Rights Agreement"), between
eFunds Corporation, a Delaware corporation (the "Company"), and EquiServe Trust
Company N.A. (the "Rights Agent"), to purchase from the Company at any time
after the Distribution Date (as such term is defined in the Rights Agreement)
and prior to 5:00 P.M., on May 1, 2010, at the office or offices of the Rights
Agent designated for such purpose, or of its successor as Rights Agent, one one-
hundredth of a fully paid non-assessable share of Series A Junior Participating
Preferred Stock, par value $.01 per share (the "Preferred Shares"), of the
Company, at a purchase price of $65.00 (the "Purchase Price"), upon presentation
and surrender of this Right Certificate with the Form of Election to Purchase
duly executed. The number of Rights evidenced by this Right Certificate (and the
number of one one-hundredths of a Preferred Share which may be purchased upon
exercise hereof) set forth above, and the Purchase Price set forth above, are
the number and Purchase Price as of the [insert appropriate date], based on the
Preferred Shares as constituted at such date. As provided in the Rights
Agreement, the Purchase Price and the number of one one-hundredths of a
Preferred Share which may be purchased upon the exercise of the Rights evidenced
by this Right Certificate are subject to modification and adjustment upon the
happening of certain events.

          This Right Certificate is subject to all of the terms, provisions and
conditions of the 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

                                      B-1
<PAGE>

full description of the rights, limitations of rights, obligations, duties and
immunities hereunder of the Rights Agent, the Company and the holders of the
Right Certificates. Copies of the Rights Agreement are on file at the principal
executive office of the Company and the office or offices of the Rights Agent
and will be mailed without charge by the Company or the Rights Agent to the
holder of this certificate promptly following receipt by the Company or the
Rights Agent of a written request therefor.

          From and after the date that any Person becomes an Acquiring Person,
any Rights that are or were acquired or beneficially owned by any Acquiring
Person (or any Associate or Affiliate of such Acquiring Person) (as such terms
are defined in the Rights Agreement) shall be void and any holder of such Rights
shall thereafter have no right to exercise such Rights under any provision of
this Agreement.

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

          Subject to the provisions of the Rights Agreement, the Rights
evidenced by this certificate (i) may, but are not required to, be redeemed by
the Company at a redemption price of $0.01 per Right, subject to adjustment as
provided in the Rights Agreement, and (ii) may, but are not required to, be
exchanged by the Company in whole or in part for Common Shares.

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

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

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

                                      B-2
<PAGE>

          WITNESS the manual or facsimile signature of the proper officer of the
Company.

Dated: ______________, 2000

                                             EFUNDS CORPORATION

                                             By:__________________________
                                             Name:________________________

Countersigned for purposes
of authentication only:

EquiServe Trust Company N.A.

By:________________________________
   Authorized Signature

                                      B-3
<PAGE>

Form of Reverse Side of Right Certificate

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

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

          FOR VALUE RECEIVED, _____________________ hereby sells, assigns and
transfers unto ________________________ (print name of transferee)
___________________________ (print address of transferee) this Right
Certificate, together with all right, title and interest therein, and does
hereby irrevocably constitute and appoint _____________________ Attorney, to
transfer the within Right Certificate on the books of the within-named Company,
with full power of substitution.

Please insert social security
number taxpayer identification
number or other identifying number:_____________________________________________

Dated:______________

____________________
Signature

Signature Guaranteed:____________________

          The signature(s) should be guaranteed by an eligible guarantor
institution (banks, stockbrokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program),
pursuant to S.E.C. Rule 17Ad-15.

                                      B-4
<PAGE>

Form of Reverse Side of Right Certificate--continued

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

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

To:  EFUNDS CORPORATION

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

Please insert social security
number, taxpayer identification
number or other identifying number:_____________________________________________

________________________________________________________________________________
                        (Please print name and address)

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

Please insert social security,
taxpayer identification
or other identifying number:____________________________________________________

________________________________________________________________________________
                        (Please print name and address)

Dated:_______________

_____________________
Signature

Signature Guaranteed:__________________

     The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.

                                      B-5

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