Document:

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                                                                     EXHIBIT 4.1

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                                RIGHTS AGREEMENT

                                 BY AND BETWEEN

                               REGISTER.COM, INC.

                                       AND

                     AMERICAN STOCK TRANSFER & TRUST COMPANY

                                 AS RIGHTS AGENT

                                   DATED AS OF

                                OCTOBER 28, 2002

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                                TABLE OF CONTENTS

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                                                                                    PAGE
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Section 1.    CERTAIN DEFINITIONS......................................................1

Section 2.    APPOINTMENT OF RIGHTS AGENT..............................................5

Section 3.    ISSUANCE OF RIGHTS CERTIFICATES..........................................5

Section 4.    FORM OF RIGHTS CERTIFICATES..............................................7

Section 5.    COUNTERSIGNATURE AND REGISTRATION........................................8

Section 6.    TRANSFER, SPLIT-UP, COMBINATION AND EXCHANGE OF RIGHTS CERTIFICATES;
              MUTILATED, DESTROYED, LOST OR STOLEN RIGHTS CERTIFICATES.................9

Section 7.    EXERCISE OF RIGHTS; PURCHASE PRICE; EXPIRATION DATE OF RIGHTS...........10

Section 8.    CANCELLATION AND DESTRUCTION OF RIGHTS CERTIFICATES.....................12

Section 9.    RESERVATION AND AVAILABILITY OF PREFERRED STOCK.........................12

Section 10.   PREFERRED STOCK RECORD DATE.............................................13

Section 11.   ADJUSTMENT OF PURCHASE PRICE, NUMBER OF SHARES OR NUMBER OF RIGHTS......13

Section 12.   CERTIFICATE OF ADJUSTED PURCHASE PRICE OR NUMBER OF SHARES..............22

Section 13.   CONSOLIDATION, MERGER OR SALE OR TRANSFER OF ASSETS OR EARNING POWER....22

Section 14.   FRACTIONAL RIGHTS AND FRACTIONAL SHARES.................................25

Section 15.   RIGHTS OF ACTION........................................................26

Section 16.   AGREEMENT OF RIGHTS HOLDERS.............................................26

Section 17.   RIGHTS CERTIFICATE HOLDER NOT DEEMED A STOCKHOLDER......................27

Section 18.   CONCERNING THE RIGHTS AGENT.............................................27

Section 19.   MERGER OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT...............28

Section 20.   DUTIES OF RIGHTS AGENT..................................................28

Section 21.   CHANGE OF RIGHTS AGENT..................................................30

Section 22.   ISSUANCE OF NEW RIGHTS CERTIFICATES.....................................31

Section 23.   REDEMPTION AND TERMINATION..............................................32
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Section 24.   EXCHANGE................................................................33

Section 25.   NOTICE OF CERTAIN EVENTS................................................34

Section 26.   NOTICES.................................................................35

Section 27.   SUPPLEMENTS AND AMENDMENTS..............................................35

Section 28.   SUCCESSORS..............................................................36

Section 29.   DETERMINATIONS AND ACTIONS BY THE BOARD OF DIRECTORS....................36

Section 30.   BENEFITS OF THIS AGREEMENT..............................................36

Section 31.   SEVERABILITY............................................................37

Section 32.   GOVERNING LAW...........................................................37

Section 33.   COUNTERPARTS............................................................37

Section 34.   DESCRIPTIVE HEADINGS....................................................37
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EXHIBITS

Exhibit A     Form of Certificate of Designation of Series A Junior
              Participating Preferred Stock

Exhibit B     Form of Rights Certificate

Exhibit C     Summary of Rights to Purchase Shares of Series A Preferred Stock

                                       ii
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                                RIGHTS AGREEMENT

                RIGHTS AGREEMENT, dated as of October 28, 2002 (the
"Agreement"), by and between Register.com, Inc. a Delaware corporation (the
"Company"), and American Stock Transfer & Trust Company (the "Rights Agent").

                WHEREAS, effective October 28, 2002 (the "Rights Dividend
Declaration Date"), the board of directors of the Company authorized and
declared a distribution of one Right (each, a "Right") for each share of Common
Stock (as hereinafter defined) of the Company outstanding as of the Close of
Business (as hereinafter defined) on November 12, 2002 (the "Record Date"), each
Right initially representing the right to purchase one one-thousandth of a share
(a "Unit") of Preferred Stock (as hereinafter defined) upon the terms and
subject to the conditions in this Agreement, and has further authorized and
directed the issuance of one Right with respect to each share of Common Stock of
the Company 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).

                NOW, THEREFORE, in consideration of the foregoing and the mutual
agreements herein set forth, the parties hereto, intending to be legally bound,
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 (as such term is
hereinafter defined) who or which, together with all Affiliates and Associates
(as such terms are hereinafter defined) of such Person, shall be the Beneficial
Owner (as such term is hereinafter defined) of 15% or more of the shares of
Common Stock of the Company then outstanding, but shall not include the Company,
any Subsidiary (as such term is hereinafter defined) of the Company, any
employee benefit plan of the Company or any Subsidiary of the Company, or any
entity holding shares of Common Stock of the Company for or pursuant to the
terms of any such plan. Notwithstanding the foregoing:

                (i)     no Person shall become an "Acquiring Person" as the
        result of an acquisition of shares of Common Stock by the Company which,
        by reducing the number of shares outstanding, increases the
        proportionate number of shares beneficially owned by such Person to 15%
        or more of the shares of Common Stock of the Company then outstanding;
        PROVIDED, HOWEVER, that if a Person shall become the Beneficial Owner of
        15% or more of the shares of Common Stock of the Company then
        outstanding as a result of any such acquisition of shares of Common
        Stock by the Company and shall, after such acquisition of shares by the
        Company, become the Beneficial Owner of any additional shares of Common
        Stock of the Company (other than as a result of a stock dividend, stock
        split or similar transaction effected by the Company in which all
        holders of Common Stock of the Company are treated equally), then such
        Person shall be deemed to be an "Acquiring Person" hereunder;

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                (ii)    no Person who, alone or together with all Affiliates and
        Associates of such Person, was, at the time of the public announcement
        by the Company of the declaration by its Board of Directors on October
        28, 2002 of the dividend distribution of the Rights, the Beneficial
        Owner of 15% or more of the Common Stock of the Company then outstanding
        shall be deemed to have become an Acquiring Person unless and until such
        time as (A) such Person or any Affiliate or Associate of such Person
        thereafter becomes the Beneficial Owner of any additional Common Stock
        of the Company (other than as a result of a stock dividend, stock split
        or similar transaction effected by the Company in which all holders of
        Common Stock of the Company are treated equally); and

                (iii)   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 provisions of subparagraph (i), has become such
        inadvertently, and such Person divests as promptly as practicable a
        sufficient number of shares of Common Stock of the Company so that such
        Person would no longer be an "Acquiring Person," then such Person shall
        not be deemed to be an "Acquiring Person" for any purpose of this
        Agreement.

                "Adjustment Shares" shall have the meaning set forth in Section
11(a)(ii).

                "Affiliate" and "Associate" shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the Exchange Act Regulations (as
hereinafter defined) as in effect on the date of this Agreement.

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

                (i)     which such Person or any of such Person's Affiliates or
        Associates beneficially owns, directly or indirectly, for purposes of
        Section 13(d) of the Exchange Act (as hereinafter defined) and Rule
        13d-3 thereunder (or any comparable or successor law or regulation); or

                (ii)    which such Person or any of such Person's Affiliates or
        Associates, directly or indirectly, has (A) the right to acquire
        (whether such right is exercisable immediately, contingently or only
        after the passage of time) pursuant to any agreement, arrangement or
        understanding (whether or not in writing, other than customary
        agreements with and between underwriters and selling group members with
        respect to a bona fide public offering of securities), or upon the
        exercise of conversion rights, exchange rights, other rights, warrants
        or options (in each case, other than the Rights), 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 FURTHER,
        HOWEVER, that a Person shall not be deemed the "Beneficial Owner" of, or
        to "beneficially own," any security under this subparagraph (ii) as a
        result of any agreement, arrangement or understanding to vote such
        security if such agreement, arrangement or understanding: (x) arises
        solely from a revocable proxy given in response to a public proxy or
        consent solicitation made pursuant

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        to, and in accordance with, the applicable provisions of the Exchange
        Act and the Exchange Act Regulations, and (y) is not reportable by such
        Person on Schedule 13D under the Exchange Act (or any comparable or
        successor report); or

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

Notwithstanding anything in this definition of "Beneficial Owner" and
"beneficially own" to the contrary, the phrase "then outstanding," when used
with reference to a Person who is the Beneficial Owner 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 beneficially own hereunder.

                "Business Day" shall mean any day other than a Saturday, a
Sunday, or a day on which banking institutions in The City of New York are
authorized or obligated by law or executive order to close.

                "Close of Business" on any given date shall mean 5:00 p.m., New
York City time, on such date; PROVIDED, HOWEVER, that if such date is not a
Business Day it shall mean 5:00 p.m., New York City time, on the next succeeding
Business Day.

                "Common Stock" when used with reference to the Company shall
mean the shares of common stock, par value $0.0001 per share, of the Company.
"Common Stock" when used with reference to any Person other than the Company
shall mean the capital stock (or other equity interest) with the greatest voting
power of such other Person or, if such other Person is a Subsidiary of another
Person, the Person or Persons which ultimately control such first-mentioned
Person.

                "Company" shall have the meaning set forth in the forepart of
this Agreement.

                "Current Per Share Market Price" shall have the meaning set
forth in Section 11(d)(i).

                "Current Value" shall have the meaning set forth in Section
11(a)(iii).

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

                "Equivalent Preferred Stock" shall have the meaning set forth in
Section 11(b).

                "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended, or any successor statute.

                "Exchange Act Regulations" shall mean the General Rules and
Regulations under the Exchange Act, as amended from time to time (including any
successor rules).

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

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

                "NASDAQ" shall have the meaning set forth in Section 11(d)(ii).

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

                "Preferred Stock" shall mean shares of Series A Junior
Participating Preferred Stock, par value $0.0001 per share, of the Company,
having the rights and preferences set forth in the Form of Certificate of
Designation attached to this Agreement as EXHIBIT A.

                "Preferred Stock Equivalents" shall have the meaning set forth
in Section 11(a)(iii).

                "Principal Party" shall have the meaning set forth in Section
13(b).

                "Purchase Price" shall have the meaning set forth in Section
7(b).

                "Record Date" shall have the meaning set forth in the recitals
to this Agreement.

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

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

                "Right" shall have the meaning set forth in the recitals to this
Agreement.

                "Rights Agent" shall have the meaning set forth in the forepart
of this Agreement and shall include any Person that shall become a successor
Rights Agent pursuant to the terms of this Agreement.

                "Rights Certificate" shall have the meaning set forth in Section
3(a).

                "Rights Dividend Declaration Date" shall have the meaning set
forth in the recitals to this Agreement.

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                "Section 11(a)(ii) Event" shall mean any event described in
Section 11(a)(ii)(A), (B) or (C).

                "Section 11(a)(iii) Trigger Date" shall have the meaning set
forth in Section 11(a)(iii).

                "Section 13 Event" shall have the meaning set forth in Section
13.

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

                "Securities Act" shall mean the Securities Act of 1933, as
amended, or any successor statute.

                "Share 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 an Acquiring Person that an Acquiring Person has become such.

                "Spread" shall have the meaning set forth in Section 11(a)(iii).

                "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.

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

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

                "Triggering Event" shall mean any Section 11(a)(ii) Event or any
Section 13 Event.

                "Unit" shall have the meaning set forth in the recitals to this
Agreement.

                Section 2.    APPOINTMENT OF RIGHTS AGENT. The Company hereby
appoints the Rights Agent to act as rights agent for the Company 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 co-Rights
Agents as it may deem necessary or desirable upon ten (10) days' prior written
notice to the Rights Agent and any co-Rights Agents. The Rights Agent shall have
no duty to supervise, and in no event shall be liable for, the acts or omissions
of any such co-Rights Agent.

                Section 3.    ISSUANCE OF RIGHTS CERTIFICATES.

        (a)     Until the earlier of (i) the Close of Business on the tenth day
after the Share Acquisition Date and (ii) the Close of Business on the tenth day
(or such later date as may be determined by action of the Company's board of
directors prior to such time as any Person becomes an Acquiring Person and of
which later date the Company will give the Rights Agent prompt written notice)
after the date that a tender or exchange offer by any Person (other than the

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Company, any Subsidiary of the Company, any employee benefit plan of the Company
or of any Subsidiary of the Company or any Person holding shares of Common Stock
for or pursuant to the terms of any such plan) is commenced within the meaning
of Rule 14d-2(a) of the Exchange Act Regulations or of the first public
announcement of the intention of any Person (other than the Company, any
Subsidiary of the Company, any employee benefit plan of the Company or of any
Subsidiary of the Company or any entity holding shares of Common Stock for or
pursuant to the terms of any such plan) to commence a tender or exchange offer,
if upon consummation thereof such Person would be the Beneficial Owner of 15% or
more of the shares of Common Stock of the Company then outstanding (the earlier
of the events described in (i) and (ii) above being the "Distribution Date"),
(x) the Rights will be evidenced (subject to the provisions of Section 3(b)) by
the certificates for shares of Common Stock of the Company registered in the
names of the holders thereof (which certificates shall also be deemed to be
Rights Certificates) and not by separate Rights Certificates, and (y) the right
to receive Rights Certificates will be transferable only in connection with the
transfer of shares of Common Stock of the Company. As soon as practicable after
the Distribution Date, the Company will prepare and execute, the Rights Agent
will countersign, and the Company will send or cause to be sent (and the Rights
Agent will, if requested and provided with all necessary information, send) by
first-class, insured, postage-prepaid mail, to each record holder of shares of
Common Stock of the Company as of the Close of Business on the Distribution
Date, at the address of such holder shown on the records of the Company, a
Rights Certificate, in substantially the form of EXHIBIT B hereto (a "Rights
Certificate"), evidencing one Right for each share of Common Stock so held. From
and after the Distribution Date, the Rights will be evidenced solely by such
Rights Certificates. The Rights Agent shall have no duty or obligation to take
any action under any section of this Agreement which requires the payment by a
Rights holder of applicable taxes and governmental charges unless and until the
Rights Agent is satisfied that all such taxes and/or charges have been paid. The
Company shall promptly notify the Rights Agent in writing upon the occurrence of
the Distribution Date and, if such notification is given orally, the Company
shall confirm same in writing on or prior to the next Business Day following
such oral notification. Until such notice is received by the Rights Agent, the
Rights Agent may presume conclusively for all purposes that the Distribution
Date has not occurred.

        (b)     On the Record Date, or as soon as practicable thereafter, the
Company will send, or cause to be sent, a copy of a Summary of Rights to
Purchase Preferred Stock, in substantially the form of EXHIBIT C hereto (the
"Summary of Rights"), by first-class, postage-prepaid mail, to each record
holder of shares of Common Stock of the Company as of the Close of Business on
the Record Date, at the address of such holder shown on the records of the
Company. Until the earlier of the Distribution Date or the Expiration Date, the
surrender for transfer of any certificate for shares of Common Stock of the
Company shall also constitute the transfer of the Rights associated with the
shares of Common Stock represented thereby.

        (c)     Certificates evidencing shares of Common Stock of the Company
which become outstanding (whether originally issued or delivered from the
Company's treasury) or are otherwise transferred after the Record Date but prior
to the earlier of the Distribution Date and the Expiration Date shall have
impressed on, printed on, written on or otherwise affixed to them the following
legend (or such other legend as the Company may deem appropriate that is not
inconsistent with the provisions of this Agreement but which does not affect the
rights, duties responsibilities or immunities of the Rights Agent):

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                THIS CERTIFICATE ALSO EVIDENCES AND ENTITLES THE
                HOLDER HEREOF TO CERTAIN RIGHTS AS SET FORTH IN A
                RIGHTS AGREEMENT BETWEEN REGISTER.COM, INC. AND
                AMERICAN STOCK TRANSFER & TRUST COMPANY, AS RIGHTS
                AGENT, DATED AS OF OCTOBER 28, 2002 (THE "RIGHTS
                AGREEMENT"), THE TERMS OF WHICH ARE HEREBY
                INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH
                IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF
                REGISTER.COM, INC. 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. REGISTER.COM, INC.
                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 (AS DEFINED
                IN THE RIGHTS AGREEMENT), WHETHER CURRENTLY HELD BY OR
                ON BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT HOLDER,
                MAY BECOME UNEXERCISABLE.

If the Company purchases or acquires any shares of Common Stock of the Company
prior to the Distribution Date, any Rights associated with such shares of Common
Stock of the Company shall be deemed cancelled and retired so that the Company
shall not be entitled to exercise any Rights associated with any shares of
Common Stock of the Company which are no longer outstanding.

                Section 4.    FORM OF RIGHTS CERTIFICATES.

                (a)     The Rights Certificates (and the forms of election to
purchase Units of Preferred Stock and of assignment to be printed on the reverse
thereof) shall be substantially the same as EXHIBIT B hereto and may have such
marks of identification or designation and such legends, summaries or
endorsements printed thereon as the Company may deem appropriate (but which do
not affect the rights, duties, responsibilities or immunities of the Rights
Agent) 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 a
national market system on which the Rights may from time to time be listed or
included or to conform to usage. Subject to the provisions of Sections 11 and
22, the Rights Certificates, whenever distributed, shall be dated as of the
Record Date (or in the case of Rights issued with respect to Common Stock issued
by the Company after the Record Date, as of the date of issuance of such Common
Stock) and on their face shall entitle the holders thereof to purchase the
number of Units as shall be set forth therein at the price per Unit set forth
therein, but the number of such Units and the Purchase Price shall be subject to
adjustment as provided herein.

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                (b)     Any Rights Certificate issued pursuant to this Agreement
that represents Rights beneficially owned by: (i) an Acquiring Person or any
Associate or Affiliate of an Acquiring Person; (ii) a transferee of an Acquiring
Person (or of any such Associate or Affiliate) who becomes a transferee after
the Acquiring Person becomes such; or (iii) a transferee of an Acquiring Person
(or of any such Associate or Affiliate) that becomes a transferee prior to or
concurrently with the Acquiring Person becoming such and receives such Rights
pursuant to either (A) a transfer (whether or not for consideration) from the
Acquiring Person to holders of equity interests in such Acquiring Person or to
any Person with whom such Acquiring Person has any continuing agreement,
arrangement or understanding regarding the transferred Rights or (B) a transfer
which the board of directors of the Company has determined is part of a plan,
arrangement or understanding which has as a primary purpose or effect avoidance
of Section 7(e); shall in each case contain (to the extent the Rights Agent has
notice thereof and to the extent feasible) the following legend:

                THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE
                OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR
                BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR
                ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE
                DEFINED IN THE RIGHTS AGREEMENT BY AND BETWEEN
                REGISTER.COM, INC. AND AMERICAN STOCK TRANSFER & TRUST
                COMPANY, AS RIGHTS AGENT, DATED AS OF OCTOBER 28, 2002
                (THE "RIGHTS AGREEMENT")). ACCORDINGLY, THIS RIGHTS
                CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY
                BECOME UNEXERCISABLE IN THE CIRCUMSTANCES SPECIFIED IN
                SECTION 7(E) OF THE RIGHTS AGREEMENT.

                Section 5.    COUNTERSIGNATURE AND REGISTRATION.

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

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        (b)     Following the Distribution Date and receipt by the Rights Agent
of notice thereof and all other relevant information referred to in Section
3(a), the Rights Agent will keep or cause to be kept, at its office designated
for such purposes, books for registration and transfer of the Rights
Certificates issued hereunder. Such books shall show the names and addresses of
the respective holders of the Rights Certificates, the number of Rights
evidenced on its face by each of the Rights Certificates and the date of each of
the Rights Certificates.

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

        (a)     Subject to the provisions of Sections 4(b), 7(e), 14 and 24
hereof, at any time after the Close of Business on the Distribution Date, and at
or prior to the Close of Business on the Expiration Date, any Rights Certificate
or Rights Certificates (other than Rights Certificates representing Rights that
are not exercisable pursuant to Section 7(e) or that have been exchanged
pursuant to Section 24) may be transferred, split up, combined or exchanged for
another Rights Certificate or Rights Certificates evidencing exercisable Rights,
entitling the registered holder to purchase a like number of Units of Preferred
Stock (or, following a Triggering Event, other securities, cash or other assets,
as the case may be) as the Rights Certificate or Rights Certificates surrendered
then entitled such holder to purchase. Any registered holder desiring to
transfer, split up, combine or exchange any Rights Certificate or Rights
Certificates shall make such request in writing delivered to the Rights Agent,
and shall surrender the Rights Certificate or Rights Certificates to be
transferred, split up, combined or exchanged at the office of the Rights Agent
designated for such purpose. The Rights Certificates are transferable only on
the Registry Books of the Rights Agent. Neither the Rights Agent nor the Company
shall be obligated to take any action whatsoever with respect to the transfer of
any such surrendered Rights Certificate or Rights Certificates until the
registered holder shall have properly completed and signed the certificate
contained in the form of assignment on the reverse side of such Rights
Certificate or Rights Certificates and shall have provided such additional
evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or
Affiliates or Associates thereof, and the Rights evidenced thereby, as the
Company or the Rights Agent shall reasonably request. Thereupon the Rights Agent
shall, subject to Sections 4(b), 7(e), 14 and 24 hereof, countersign and deliver
to the Person entitled thereto a Rights Certificate or Rights Certificates, as
the case may be, as so requested, registered in such name or names as may be
designated by the surrendering registered holder. The Company or the Rights
Agent may require payment from holders of Rights Certificates of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer, split up, combination or exchange of Rights
Certificates. The Rights Agent shall promptly forward any such sum collected by
it to the Company or to such Persons as the Company shall specify by written
notice. The Rights Agent shall have no duty or obligation to take any action
under this Section or under any section of this Agreement which requires the
payment by a Rights holder of applicable taxes or charges, unless and until the
Rights Agent is satisfied that all such taxes and/or charges have been paid.

        (b)     Upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation of
a Rights Certificate, and such indemnity or security reasonably satisfactory to
the Company and the Rights Agent, 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

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

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

        (a)     The registered holder of any Rights Certificate evidencing
exercisable Rights may exercise the Rights evidenced thereby (except as
otherwise provided herein) in whole or in part at any time after the
Distribution Date and prior to the close of business on the Expiration Date by
surrendering the Rights Certificate, with the form of election to purchase and
the related certification properly completed and duly executed, to the Rights
Agent at the office of the Rights Agent designated for such purpose, together
with payment of the Purchase Price for each Right being exercised (as such
amount may be reduced (including to zero) pursuant to Section 11(a)(iii)) and an
amount equal to any applicable transfer tax or charge required to be paid by the
holder of such Rights Certificate in accordance with Section 9(e) in cash, or by
certified check or by cashier's check, wire transfer, bank draft or money order
payable to the order of the Company), at or prior to the earliest of (i) the
Close of Business on the tenth anniversary of the Record Date (the "Final
Expiration Date"), (ii) the time at which the Rights are redeemed as provided in
Section 23 (the "Redemption Date"), and (iii) the time at which such Rights are
exchanged as provided in Section 24 (the earliest of (i), (ii) and (iii) being
the "Expiration Date").

        (b)     The purchase price for each Unit pursuant to the exercise of a
Right shall initially be $32.00 (the "Purchase Price") and, 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 Rights Certificate representing exercisable
Rights (with the form of election to purchase and certification properly
completed and duly executed), accompanied by payment as provided in Section
7(a), and an amount equal to any applicable tax or charge required to be paid
under Section 9(e) in cash, certified check, cashier's check, wire transfer,
bank draft or money order payable to the order of the Company, the Rights Agent
shall, subject to Section 20(k), thereupon promptly (i) (A) requisition from any
transfer agent of the Preferred Stock a certificate or certificates for the
number of Units to be purchased and the Company hereby irrevocably authorizes
its transfer agent to comply with all such requests or (B) if the Company shall
have elected to deposit the total number of Units issuable upon exercise of the
Rights hereunder with a depositary agent, requisition from the depositary agent
of a depositary receipt or depositary receipts representing such number of Units
as are to be purchased (in which case certificates for the Units represented by
such receipt or receipts shall be deposited by the transfer agent with the
depositary agent) and the Company hereby directs the depositary agent to comply
with such requests; (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 Rights Certificate, registered in such name or names as may be
designated by such holder; and (iv) when appropriate, after receipt thereof,
deliver such cash to or upon the order of the registered holder of such Rights
Certificate. If the Company is obligated to issue other securities of the
Company, pay cash and/or

                                       10
<Page>

distribute other property pursuant to Section 11(a), the Company will make all
arrangements necessary so that such other securities, cash and/or other property
are available for distribution by the Rights Agent, if and when necessary to
comply with the terms of this Agreement.

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

        (e)     Notwithstanding anything in this Agreement to the contrary, from
and after the first occurrence of a Triggering Event, any Rights beneficially
owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring
Person; (ii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate thereof) who becomes a transferee after the Acquiring Person becomes
such; (iii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate thereof) who becomes a transferee prior to or concurrently with the
Acquiring Person becoming such and receives such Rights pursuant to either (A) a
transfer (whether or not for consideration) from the Acquiring Person to holders
of equity interests in such Acquiring Person or to any Person with whom the
Acquiring Person has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (B) a transfer which the board of directors
of the Company has determined is part of a plan, arrangement or understanding
which has as a primary purpose or effect the avoidance of this Section 7(e); or
(iv) any subsequent transferee shall not be exercisable without any further
action and no holder of such Rights shall have any rights whatsoever with
respect to such Rights or any Rights Certificate which formerly evidenced such
Rights, and neither the Company nor the Rights Agent shall have any obligations
whatsoever with respect to such Rights or any Rights Certificate, whether under
any provision of this Agreement or otherwise. The Company shall give the Rights
Agent written notice of the identity of any such Acquiring Person, Associate or
Affiliate, or such transferee of any of the foregoing, and the Rights Agent may
rely on such notice in carrying out its duties under this Agreement and shall be
deemed not to have any knowledge of the identity of any such Acquiring Person,
Associate, Affiliate, or transferee unless and until it shall have received such
notice. The Company shall use commercially reasonable efforts to ensure that the
provisions of Section 4(b) and this Section 7(e) are complied with, but neither
the Company nor the Rights Agent shall have any liability to any holder of
Rights Certificates or to any other Person as a result of its making or failing
to make any determinations with respect to an Acquiring Person or any of such
Acquiring Person's Affiliates, Associates or transferees or taking or failing to
take any actions with respect any Rights or Rights Certificates of any such
Person.

        (f)     Notwithstanding anything in this Agreement to the contrary,
neither the Rights Agent nor the Company shall be obligated to undertake any
action with respect to a registered holder upon the occurrence of any purported
exercise as set forth in this Section 7 unless such registered holder shall have
(i) properly completed and duly executed the certificate contained in the form
of election to purchase set forth on the reverse side of the Rights Certificate
surrendered for such exercise and (ii) provided such additional evidence of the
identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or
Associates thereof, and of the Rights evidenced thereby, as the Company or the
Rights Agent shall reasonably request.

                                       11
<Page>

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

                Section 9.    RESERVATION AND AVAILABILITY OF PREFERRED STOCK.

        (a)     The Company covenants and agrees that it will use its
commercially reasonable efforts to cause to be reserved and kept available out
of, and to the extent of, its authorized and unissued Preferred Stock not
reserved for another purpose a number of shares that will be sufficient to
permit the exercise in full of all outstanding Rights in accordance with this
Agreement. Upon the occurrence of any events resulting in an increase in the
aggregate number of shares of Preferred Stock (or other equity securities of the
Company) issuable upon exercise of all outstanding Rights above the number then
reserved, the Company shall make appropriate increases in the number of shares
so reserved.

        (b)     If the Units of Preferred Stock to be issued and delivered upon
the exercise of the Rights are at any time listed on a national securities
exchange or included for quotation on any national market system, the Company
shall during the period from the Distribution Date to the Expiration Date use
its commercially reasonable efforts to cause all shares reserved for such
issuance to be listed on such exchange or included for quotation on any such
transaction reporting system upon official notice of issuance upon such
exercise.

        (c)     The Company shall use its commercially reasonable efforts to (i)
file, as soon as practicable following the earliest date after the first
occurrence of a Section 11(a)(ii) Event in which the consideration to be
delivered by the Company upon exercise of the Rights has been determined in
accordance with Section 11(a)(iii), or as soon as is required by law following
the Distribution Date, as the case may be, a registration statement under the
Securities Act, with respect to the securities purchasable upon exercise of the
Rights on an appropriate form, (ii) cause such registration statement to become
effective as soon as reasonably practicable after such filing, and (iii) cause
such registration statement to remain effective (with a prospectus at all times
meeting the requirements of the Securities Act) until the earlier of (A) the
date as of which the Rights are no longer exercisable for such securities and
(B) the 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.
Notwithstanding any provision of this Agreement to the contrary, the Rights
shall not be exercisable in any jurisdiction, unless the requisite qualification
of the offering made upon exercise of the Rights in such jurisdiction shall have
been obtained, or an exemption therefrom shall be available and until a
registration statement has been declared effective.

                                       12
<Page>

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

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

                Section 10.   PREFERRED STOCK RECORD DATE Each Person in whose
name any certificate for Units (or, following the occurrence of a Triggering
Event, other securities that may be delivered upon exercise of Rights) is issued
upon the exercise of Rights shall for all purposes be deemed to have become the
holder of record of the Units (or, following the occurrence of a Triggering
Event other securities that may be delivered upon the exercise of the Rights)
represented thereby on, and such certificate shall be dated, at the Close of
Business on the date upon which the Rights Certificate evidencing such Rights
was duly surrendered and payment of the Purchase Price (and any applicable
transfer taxes or charges) was made; PROVIDED, HOWEVER, that if the date of such
surrender and payment is a date upon which the Preferred Stock (or, following
the occurrence of a Triggering Event, other securities that may be delivered
upon the exercise of the Rights) transfer books of the Company are closed, such
person shall be deemed to have become the record holder of such shares at the
Close of Business on, and such certificate shall be dated, the next succeeding
Business Day on which such transfer books are open; PROVIDED FURTHER, HOWEVER,
that if delivery of Units (or following the occurrence of a Triggering Event,
other securities that may be delivered upon the exercise of the Rights) is
delayed pursuant to Section 9(c), such Persons shall be deemed to have become
the record holders of such Units (or following the occurrence of a Triggering
Event, other securities that may be delivered upon the exercise of the Rights)
only when such Units first become deliverable. Prior to the exercise of the
Rights evidenced thereby, the holder of a Rights Certificate shall not be
entitled to any rights of a stockholder of the Company with respect to
securities 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 expressly provided in this
Agreement.

                Section 11.   ADJUSTMENT OF PURCHASE PRICE, NUMBER OF SHARES OR
NUMBER OF RIGHTS. The Purchase Price, the number and kinds of securities covered
by each Right and the

                                       13
<Page>

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 Stock
        payable in shares of Preferred Stock, (B) subdivide the outstanding
        shares of Preferred Stock, (C) combine the outstanding Preferred Stock
        into a smaller number of shares Preferred Stock, or (D) issue any shares
        of its capital stock in a reclassification of the Preferred Stock
        (including any such reclassification in connection with a consolidation
        or merger in which the Company is the continuing or surviving
        corporation), except as otherwise provided in this Section 11(a), 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 for
        which the Rights shall be exercisable, shall be proportionately adjusted
        so that the holder of any Rights exercised after such time shall be
        entitled to receive, upon payment of the Purchase Price then in effect,
        the aggregate number and kind of shares of capital stock which, if such
        Rights had been exercised immediately prior to such date and at a time
        when the applicable transfer books were open, such holder would have
        owned upon such exercise and been entitled to receive by virtue of such
        dividend, subdivision, combination or reclassification; PROVIDED,
        HOWEVER, that in no event shall the consideration to be paid upon the
        exercise of one Right be less than the aggregate par value of the shares
        of capital stock issuable upon exercise of one Right. If an event occurs
        which would require an adjustment under both this Section 11(a)(i) and
        Section 11(a)(ii), the adjustment provided for in this Section 11(a)(i)
        shall be in addition, and shall be made prior, to any adjustment
        required pursuant to Section 11(a)(ii).

                (ii)    Subject to Section 24, if:

                    (A) any Person shall become an Acquiring Person, unless the
            event causing the Person to become an Acquiring Person is a
            transaction to which the provisions of Section 13(a) apply;

                    (B) any Acquiring Person or any Associate or Affiliate of
            any Acquiring Person, at any time after the date of this Agreement,
            directly or indirectly, shall (1) merge into the Company or
            otherwise combine with the Company and the Company shall be the
            continuing or surviving corporation of such merger or combination
            and shares of Common Stock of the Company shall remain outstanding
            and unchanged, (2) in one transaction or a series of transactions,
            transfer any assets to the Company or any of its Subsidiaries in
            exchange (in whole or in part) for shares of Common Stock of the
            Company, for other equity securities of the Company or any of its
            Subsidiaries, or for securities exercisable for or convertible into
            shares of equity securities of the Company or any of its
            Subsidiaries (whether shares of Common Stock of the Company or
            otherwise) or otherwise obtain from the Company or any of its
            Subsidiaries, with or without consideration, any additional shares
            of such equity securities or securities exercisable for or
            convertible into such equity securities (other than pursuant to a
            pro rata distribution to all holders of shares of Common Stock of
            the Company), (3) sell, purchase, lease, exchange, mortgage, pledge,
            transfer or

                                       14
<Page>

            otherwise acquire or dispose of, in one transaction or a series of
            transactions, to, from or with the Company or any of its
            Subsidiaries or any employee benefit plan maintained by the Company
            or any of its Subsidiaries or any trustee or fiduciary with respect
            to such plan acting in such capacity, assets (including securities)
            on terms and conditions less favorable to the Company or such
            Subsidiary, plan, trustee or fiduciary than those that could have
            been obtained in arm's-length negotiations with an unaffiliated
            third party, other than pursuant to a transaction set forth in
            Section 13(a), (4) sell, purchase, lease, exchange, mortgage,
            pledge, transfer or otherwise acquire or dispose of, in one
            transaction or a series of transactions, to, from or with the
            Company or any of its Subsidiaries or any employee benefit plan
            maintained by the Company or any of its Subsidiaries or any trustee
            or fiduciary with respect to such plan acting in such capacity
            (other than transactions, if any, consistent with those engaged in,
            as of the date hereof, by the Company and such Acquiring Person or
            such Associate or Affiliate thereof), assets (including securities
            or intangible assets) having an aggregate fair market value of more
            than $5,000,000, other than pursuant to a transaction set forth in
            Section 13(a), (5) receive, or any designee, agent or representative
            of such Acquiring Person or any Affiliate or Associate of such
            Acquiring Person shall receive, any compensation from the Company or
            any of its Subsidiaries other than compensation for full-time
            employment as a regular employee at rates in accordance with the
            Company's (or its Subsidiaries') past practices, or (6) receive the
            benefit, directly or indirectly (except proportionately as a holder
            of shares of Common Stock of the Company or as required by law or
            governmental regulation), of any loans, advances, guarantees,
            pledges or other financial assistance or any tax credits or other
            tax advantages provided by the Company or any of its Subsidiaries or
            any employee benefit plan maintained by the Company or any of its
            Subsidiaries or any trustee or fiduciary with respect to such plan
            acting in such capacity; or

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

                then promptly following the occurrence of an event described in
        Section 11(a)(ii)(A), (B) or (C) (each being a "Section 11(a)(ii)
        Event"), proper provision shall be made so that each holder of a Right,
        except as otherwise provided in Section 7(e), shall thereafter have the
        right to receive for each Right, upon exercise thereof in accordance
        with the terms of this Agreement and payment of the then-current
        Purchase Price, in lieu of the number of Units of Preferred Stock for
        which a Right was exercisable immediately prior to the first occurrence
        of a Section 11(a)(ii) Event, such number of Units of Preferred Stock as
        shall equal the result obtained by multiplying the then-current

                                       15
<Page>

        Purchase Price by the then number of Units of Preferred Stock for which
        a Right was exercisable (or would have been exercisable if the
        Distribution Date had occurred) immediately prior to the first
        occurrence of a Triggering Event, and dividing that product by 50% of
        the Current Per Share Market Price for shares of Common Stock on the
        date of occurrence of the most recent Triggering Event (such number of
        Units of Preferred Stock being hereinafter referred to as the
        "Adjustment Shares"). Upon the occurrence of a Section 13 Event, any
        Rights that shall not have been previously exercised pursuant to this
        Section 11(a)(ii) shall thereafter be exercisable only pursuant to
        Section 13 and not pursuant to this Section 11(a)(ii). The Company shall
        notify the Rights Agent when this Section 11(a)(ii) applies and shall
        use all commercially reasonable efforts to ensure that the provisions of
        this Section 11(a)(ii) are complied with, but neither the Company nor
        the Rights Agent shall have any liability to any holder of Rights
        Certificates or other Person as a result of the Company's failure to
        make any determinations with respect to any Acquiring Person or its
        Affiliates, Associates or transferees hereunder.

                (iii)   In the event that the number of shares of Preferred
        Stock which are authorized by the Company's certificate of incorporation
        but not outstanding or reserved for issuance for purposes other than
        upon exercise of the Rights are not sufficient to permit the exercise in
        full of the Rights, or if any necessary regulatory approval for such
        issuance has not been obtained by the Company, the Company shall, in
        lieu of issuing Units of Preferred Stock in accordance with Section
        11(a)(ii) hereof: (A) determine the excess of (1) the value of the Units
        of Preferred Stock issuable upon the exercise of a Right (the "Current
        Value") over (2) the Purchase Price (such excess being referred to as
        the "Spread") and (B) with respect to each Right, make adequate
        provision to substitute for such Units of Preferred Stock, upon exercise
        of the Rights, (1) cash, (2) a reduction in the Purchase Price, (3)
        other equity securities of the Company (including, without limitation,
        Common Stock of the Company or shares or units of shares of any series
        of preferred stock which the board of directors of the Company shall
        have conclusively deemed to have the same value as the Units of
        Preferred Stock (such shares or units of preferred stock are herein
        called "Preferred Stock Equivalents")), except to the extent that the
        Company has not obtained any necessary regulatory approval for such
        issuance, (4) debt securities of the Company, except to the extent that
        the Company has not obtained any necessary regulatory approval for such
        issuance, (5) other assets, or (6) any combination of the foregoing,
        having an aggregate value equal to the Current Value, as determined by
        the board of directors of the Company based upon the advice of a
        nationally recognized investment banking firm selected by the board of
        directors of the Company (which determination shall be described in a
        statement filed with the Rights Agent and shall be conclusive and
        binding on the Rights Agent, the holders of the Rights and all other
        persons); PROVIDED, HOWEVER, if the Company shall not have made adequate
        provision to deliver value pursuant to clause (B) above within thirty
        days following the later of (x) occurrence of a Section 11(a)(ii) Event,
        and (y) the date on which the Company's right of redemption pursuant to
        Section 23(a) expires (the later of (x) and (y) being referred to herein
        as the "Section 11(a)(iii) Trigger Date"), then the Company shall be
        obligated to deliver, upon the surrender for exercise of a Right and
        without requiring payment of the Purchase Price, Units of Preferred
        Stock (to the extent available), except to the extent that the Company
        has not obtained any necessary regulatory approval for

                                       16
<Page>

        such issuance, and then, if necessary, cash, having an aggregate value
        equal to the Spread.

        (b)     If the Company shall fix a record date for the issuance of
rights, options or warrants to all holders of Preferred Stock entitling them
(for a period expiring within forty five (45) calendar days after such record
date) to subscribe for or purchase Preferred Stock (or shares having the same
rights, privileges and preferences as the Preferred Stock ("Equivalent Preferred
Stock")) or securities convertible into Preferred Stock or Equivalent Preferred
Stock at a price per Unit of Preferred Stock or Equivalent Preferred Stock (or
having a conversion price per Unit, if a security convertible into Units of
Preferred Stock or Equivalent Preferred Stock) less than the then Current Per
Share Market Price (as determined pursuant to Section 11(d)) of a Unit of
Preferred Stock 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 sum of the number of Units outstanding on such record date plus the
number of Units which the aggregate offering price of the total number of Units
and/or Equivalent Preferred Stock so to be offered (and/or the aggregate initial
conversion price of the convertible securities so to be offered) would purchase
at such Current Per Share Market Price and the denominator of which shall be the
sum of the number of Units outstanding on such record date plus the number of
additional Units and/or Equivalent Preferred Stock to be offered for
subscription or purchase (or into which the convertible securities so to be
offered are initially convertible). If such subscription price may be paid in a
consideration part or all of which shall be in a form other than cash, the value
of such consideration shall be as determined in good faith by the board of
directors of the Company, whose determination shall be described in a statement
filed with the Rights Agent and shall be conclusive and binding on the Rights
Agent and the holders of the Rights. Units owned by or held for the account of
the Company shall not be deemed outstanding for the purpose of any such
computation. Such adjustment shall be made successively whenever such a record
date is fixed; and if 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)     If the Company shall fix a record date for a distribution to all
holders of Units of Preferred Stock (including any such distribution made in
connection with a consolidation or merger in which the Company is the continuing
or surviving corporation) of evidences of indebtedness, cash (other than a
regular quarterly cash dividend), assets (other than a dividend payable in Units
or Equivalent Preferred Stock but including any dividend payable in equity
securities other than Preferred Stock or Equivalent Preferred Stock) or
subscription rights or warrants (excluding those referred to in Section 11(d)),
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 (as determined pursuant to Section 11(d)) of the Preferred Stock on such
record date, less the fair market value (as determined in good faith by the
board of directors of the Company, whose determination shall be described in a
statement filed with the Rights Agent and shall be conclusive and binding on the
Rights Agent and the holders of the Rights) of the cash, assets or evidences of
indebtedness to be distributed or of such subscription rights or warrants
distributable in respect of a share of Preferred Stock, and the denominator of
which shall be such Current Per Share Market Price of a share of Preferred
Stock. Such adjustments shall be made successively whenever such a record date
is fixed; and in the event that such

                                       17
<Page>

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 on any date shall be
        deemed to be the average of the daily closing prices per share of such
        security for the thirty consecutive Trading Days (as such term is
        hereinafter defined) ending on and including the Trading Day 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 security, or (B) any
        subdivision, combination or reclassification of such security and prior
        to the expiration of thirty Trading Days after and not including the
        ex-dividend date for such dividend or distribution, or the record date
        for such subdivision, combination or reclassification, then, and in each
        such case, the Current Per Share Market Price shall be appropriately
        adjusted to reflect the current market price per share equivalent of
        such security. The closing price for each day shall be the last sale
        price, regular way, or, in case no such sale takes place on such day,
        the average of the closing bid and asked prices, regular way, in either
        case as reported in the principal consolidated transaction reporting
        system with respect to securities listed or admitted to trading on the
        Nasdaq Stock Market ("NASDAQ") or, if the security is not listed or
        admitted to trading on the NASDAQ, as reported in the principal
        consolidated transaction reporting system with respect to securities
        listed on the principal national securities exchange on which the
        security is listed or admitted to trading or, if the security is not
        listed or admitted to trading on any national securities exchange, the
        last quoted price or, if not so quoted, the average of the high bid and
        low asked prices in the over-the-counter market, as reported by the
        NASDAQ or such other system then in use, or, if on any such date the
        security is not quoted by any such organization, the average of the
        closing bid and asked prices as furnished by a professional market maker
        making a market in the security selected by the board of directors of
        the Company. If on any such date no market maker is making a market in
        the security, the Current Per Share Market Price of such security on
        such date shall mean the fair value per share or other trading unit as
        determined in good faith by the board of directors of the Company as
        provided for above (which determination shall be described in a
        statement filed with the Rights Agent and shall be conclusive and
        binding on the Rights Agent, the holders of the Rights and all other
        Persons). The term "Trading Day" shall mean a day on which the principal
        national securities exchange on which the security is listed or admitted
        to trading is open for the transaction of business or, if the security
        is not listed or admitted to trading on any national securities
        exchange, a Business Day.

                (ii)    For the purpose of any computation hereunder, the
        Current Per Share Market Price of the Preferred Stock shall be
        determined in accordance with the method set forth in Section 11(d)(i).
        If the Current Per Share Market Price of the Preferred Stock cannot be
        determined in the manner provided above or if the Preferred Stock is not
        publicly held or listed or traded in a manner described in Section
        11(d)(i), the Current Per Share Market Price of the Preferred Stock
        shall be conclusively deemed to be an amount equal to the product of
        $1,000 (as such amount may be appropriately adjusted for such events as
        stock splits, stock dividends and recapitalizations with respect to
        shares of

                                       18
<Page>

        Common Stock of the Company occurring after the date of this Agreement)
        multiplied by the Current Per Share Market Price of Common Stock of the
        Company. If no shares of the Common Stock of the Company or the
        Preferred Stock are publicly held or so listed or traded, "Current Per
        Share Market Price" of the Preferred Stock shall mean the fair value per
        share as determined in good faith by the board of directors of the
        Company, whose determination shall be described in a statement filed
        with the Rights Agent and shall be conclusive and binding on the Rights
        Agent and the holders of the Rights. For all purposes of this Agreement,
        the Current Per Share Market Price of a Unit of Preferred Stock shall be
        equal to the Current Per Share Market Price of one share of Preferred
        Stock divided by 1,000.

        (e)     No adjustment in the Purchase Price shall be required unless
such adjustment would require an increase or decrease of at least one percent 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-hundred-thousandth (1/100,000) of a share of Preferred Stock or
one-hundredth (1/100) 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 Expiration Date.

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

        (g)     All Rights originally issued by the Company subsequent to any
adjustment made to the Purchase Price shall evidence the right to purchase, at
the adjusted Purchase Price, the number of Units of Preferred Stock purchasable
from time to time upon exercise of the Rights, all subject to further adjustment
as provided in this Agreement.

        (h)     Unless the Company shall have exercised its election under
Section 11(i), 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 Units of Preferred
Stock (calculated to the nearest one-millionth of a share of Preferred Stock)
obtained by dividing (i) the product obtained by multiplying (x) the number of
Units of Preferred Stock 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, by (ii) 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 Units of

                                       19
<Page>

Preferred Stock 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 Units of Preferred Stock for which a Right was exercisable
immediately prior to such adjustment. Each Right held of record prior to such
adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one-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. The Company shall promptly give
the Rights Agent a copy of such announcement. This record date may be the date
on which the Purchase Price is adjusted or any day thereafter, but, if the
Rights Certificates have been issued, shall be at least ten (10) days later than
the date of the public announcement. If Rights Certificates have been issued,
upon each adjustment of the number of Rights pursuant to this Section 11(i), the
Company shall, as promptly as practicable, cause to be distributed to holders of
record of Rights Certificates on such record date Rights Certificates
evidencing, subject to Section 14, the additional Rights to which such holders
shall be entitled as a result of such adjustment, or, at the option of the
Company, shall cause to be distributed to such holders of record in substitution
and replacement for the Rights Certificates held by such holders prior to the
date of adjustment, and upon surrender thereof, if required by the Company, new
Rights Certificates evidencing all the Rights to which such holders shall be
entitled after such adjustment. Rights Certificates to be so distributed shall
be issued, executed and countersigned in the manner provided for herein and
shall be registered in the names of the holders of record of Rights Certificates
on the record date specified in the public announcement.

        (j)     Irrespective of any adjustment or change in the Purchase Price
or the number of Units issuable upon the exercise of the Rights, the Rights
Certificates theretofore and thereafter issued may continue to express the
Purchase Price per Unit and the number of Units which were expressed in the
initial Rights Certificates issued hereunder.

        (k)     Before taking any action that would cause an adjustment reducing
the Purchase Price below the then par value of the number of Units 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 number of Units 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 Rights exercised after such record date
of that number of Units and other capital stock or securities of the Company, if
any, issuable upon such exercise over and above the Units 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 (fractional or otherwise) upon the occurrence of the event requiring such
adjustment. The Company shall give the Rights Agent prompt written notice of its
election under this Section 11(l).

                                       20
<Page>

        (m)     Anything in this Section 11 to the contrary notwithstanding, the
Company shall be entitled to make such reductions in the Purchase Price, in
addition to those adjustments expressly required by this Section 11, as and to
the extent that it in its sole discretion shall determine to be advisable in
order that any (i) consolidation or subdivision of the Preferred Stock, (ii)
issuance wholly for cash of any Unit of Preferred Stock at less than the Current
Per Share Market Price, (iii) issuance wholly for cash of Preferred Stock or
securities which by their terms are convertible into or exchangeable for
Preferred Stock, (iv) dividends on Preferred Stock payable in Preferred Stock,
or (v) issuance of rights, options or warrants referred to in this Section 11,
hereafter made by the Company to holders of Units of its Preferred Stock 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
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 transactions 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
Person which constitutes, or would constitute, the Principal Party (as defined
in Section 13(b)) shall have distributed or otherwise transferred to its
stockholders or other persons holding an equity interest in such Person, Rights
previously owned by such Person or any of its Affiliates and Associates;
PROVIDED, HOWEVER, this Section 11(n) shall not affect the ability of any
Subsidiary of the Company to consolidate with, merge with or into, or sell or
transfer assets or earning power to, any other Subsidiary of the Company.

        (o)     After the Distribution Date, the Company shall not, except as
permitted by Section 23 or Section 27, take (or permit any of its Subsidiaries
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)     If, 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
outstanding shares of Common Stock of the Company payable in shares of Common
Stock of the Company or (ii) effect a subdivision, combination or consolidation
of the Common Stock of the Company (by reclassification or otherwise than by
payment of dividends in shares of Common Stock of the Company) into a greater or
lesser number of shares of Common Stock of the Company, then in any such case
the number of Units purchasable after such event upon proper exercise of each
Right shall be determined by multiplying the number of Units so purchasable
immediately prior to such event by a fraction, the numerator of which shall be
the number of shares of Common Stock of the Company outstanding immediately
before such event and the denominator of which shall be the number of shares of
Common Stock of the Company outstanding immediately after such event.

                                       21
<Page>

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, combination
or consolidation is effected.

                Section 12.   CERTIFICATE OF ADJUSTED PURCHASE PRICE OR NUMBER
OF SHARES. Whenever an adjustment is made or any event affecting the Rights or
their exercisability (including without limitation an event which causes Rights
to become unexercisable) as provided in Sections 7(e), 11 or 13, the Company
shall promptly (a) prepare a certificate setting forth such adjustment or
describing such event, and a brief, reasonably detailed statement of the
computations, facts and methodology accounting for such adjustment, (b) file
with the Rights Agent and with each transfer agent for the shares of Common
Stock of the Company or Units a copy of such certificate and (c) mail a brief
summary thereof to each holder of a Rights Certificate in accordance with
Section 25 hereof. Notwithstanding the foregoing sentence, the failure by the
Company to make such certification or give such notice shall not affect the
validity of or the force or effect of the requirement for such adjustment. The
Rights Agent shall be fully protected in relying on any such certificate and on
any adjustment or statement contained therein and shall have no duty or
liability with respect to, and shall not be deemed to have knowledge of, any
adjustment or any such event unless and until it shall have received such
certificate.

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

        (a)     In the event that, following a Share Acquisition Date, directly
or indirectly, (x) the Company shall consolidate with, or merge with and into,
any other Person (other than a Subsidiary of the Company in a transaction which
complies with Section 11(o)), and the Company shall not be the continuing or
surviving corporation of such consolidation or merger, (y) any Person (other
than a Subsidiary of the Company in a transaction which complies with Section
11(o)) shall consolidate with the Company, or merge with and into the Company
and the Company shall be the continuing or surviving corporation of such
consolidation or merger and, in connection with such consolidation or merger,
all or part of the shares of Common Stock of the Company shall be changed into
or exchanged for stock or other securities of any other Person or cash or any
other property, or (z) the Company shall sell or otherwise transfer (or one or
more of its Subsidiaries shall sell or otherwise transfer) to any Person or
Persons (other than a Subsidiary of the Company in a transaction which complies
with Section 11(o)), in one or more transactions, directly or indirectly, assets
or earning power aggregating 50% or more of the assets or earning power of the
Company and its Subsidiaries (taken as a whole), (any such event being a
"Section 13 Event"), then, and in each such case, proper provision shall be made
so that: (i) each holder of a Right, except as provided in Section 7(e), shall
thereafter have the right to receive, upon the exercise thereof at the then
current Purchase Price, such number of validly authorized and issued, fully paid
and non-assessable shares of Common Stock of the Principal Party, which shares
shall not be subject to any liens, encumbrances, rights of first refusal,
transfer restrictions or other adverse claims, as shall be equal to the product
obtained by (1) multiplying the then current Purchase Price by the number of
Units of Preferred Stock for which a Right is exercisable immediately prior to
the first occurrence of a Section 13 Event (or, if a Section 11(a)(ii) Event has
occurred prior to the first occurrence of a Section 13 Event, multiplying the
number of such Units of Preferred Stock for which a Right would be exercisable
hereunder but for the occurrence of such Section 11(a)(ii) Event by the Purchase
Price which would be in effect hereunder but for such first occurrence) and (2)
dividing that product (which,

                                       22
<Page>

following the first occurrence of a Section 13 Event, shall be the "Purchase
Price" for all purposes of this Agreement) by 50% of the Current Per Share
Market Price of the shares of Common Stock of such Principal Party on the date
of consummation of such Section 13 Event; (ii) such Principal Party shall
thereafter be liable for, and shall assume, by virtue of such Section 13 Event,
all the obligations and duties of the Company pursuant to this Agreement; (iii)
the term "Company" shall, for all purposes of this Agreement, thereafter be
deemed to refer to such Principal Party, it being specifically intended that the
provisions of Section 11 shall apply only to such Principal Party following the
first occurrence of a Section 13 Event; (iv) such Principal Party shall take
such steps (including, but not limited to, the reservation of a sufficient
number of shares of its Common Stock) in connection with the consummation of any
such transaction as may be necessary to ensure that the provisions of this
Agreement shall thereafter be applicable to its shares of Common Stock
thereafter deliverable upon the exercise of the Rights; and (v) the provisions
of Section 11(a)(ii) shall be of no further effect following the first
occurrence of any Section 13 Event.

        (b)     "Principal Party" shall mean:

                (i)     in the case of any transaction described in clause (x)
        or (y) of the first sentence of Section 13(a), (A) the Person that is
        the issuer of any securities into which shares of Common Stock of the
        Company are converted in such merger or consolidation, or, if there is
        more than one such issuer, the issuer whose outstanding shares of Common
        Stock have the greatest aggregate Current Per Share Market Price and (B)
        if no securities are so issued, the Person that is the other party to
        such merger or consolidation, or, if there is more than one such Person,
        the Person whose outstanding shares of Common Stock have the greatest
        aggregate Current Per Share Market Price; 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 largest portion of the assets or earning power transferred
        pursuant to such transaction or transactions, or, if each Person that is
        a party to such transaction or transactions receives the same portion of
        the assets or earning power transferred pursuant to such transaction or
        transactions or if the Person receiving the largest portion of the
        assets or earning power cannot be determined, whichever Person whose
        outstanding shares of Common Stock have the greatest aggregate Current
        Per Share Market Price; PROVIDED, HOWEVER, that in any such case, (1) if
        the Common Stock of such Person is not at such time and has not been
        continuously over the preceding twelve-month period registered under
        Section 12 of the Exchange Act ("Registered Common Stock"), or such
        Person is not a corporation, and such Person is a direct or indirect
        Subsidiary of another Person that has Registered Common Stock
        outstanding, "Principal Party" shall refer to such other Person; (2) if
        the Common Stock of such Person is not Registered Common Stock or such
        Person is not a corporation, and such Person is a direct or indirect
        Subsidiary of another Person but is not a direct or indirect Subsidiary
        of another Person which has Registered Common Stock outstanding,
        "Principal Party" shall refer to the ultimate parent entity of such
        first-mentioned Person; (3) if the Common Stock of such Person is not
        Registered Common Stock or such Person is not a corporation, and such
        Person is directly or indirectly controlled by more than one Person, and
        one or more of such other Persons has Registered Common Stock
        outstanding, "Principal Party" shall refer to whichever of such

                                       23
<Page>

        other Persons is the issuer of the Registered Common Stock having the
        highest aggregate Current Per Share Market Price; and (4) if the Common
        Stock of such Person is not Registered Common Stock or such Person is
        not a corporation, and such Person is directly or indirectly controlled
        by more than one Person, and none of such other Persons has Registered
        Common Stock outstanding, "Principal Party" shall refer to whichever
        ultimate parent entity is the corporation having the greatest
        stockholders' equity or, if no such ultimate parent entity is a
        corporation, shall refer to whichever ultimate parent entity is the
        entity having the greatest net assets.

        (c)     The Company shall not consummate any such consolidation, merger,
sale or transfer unless the Principal Party shall have a sufficient number of
authorized shares of its Common Stock which have not been issued or reserved for
issuance to permit the exercise in full of the Rights in accordance with this
Section 13, and unless prior thereto the Company and such Principal Party shall
have executed and delivered to the Rights Agent a supplemental agreement
providing for the terms set forth in paragraphs (a) and (b) of this Section 13
and further providing that the Principal Party will:

                (i)     (A)   file on an appropriate form, as soon as
        practicable following the execution of such agreement, a registration
        statement under the Securities Act with respect to the shares of Common
        Stock of such Principal Party that may be acquired upon exercise of the
        Rights, (B) cause such registration statement to remain effective (and
        to include a prospectus complying with the requirements of the
        Securities Act) until the Expiration Date, and (C) as soon as
        practicable following the execution of such agreement take such action
        as may be required to ensure that any acquisition of such shares of
        Common Stock of such Principal Party upon the exercise of the Rights
        complies with any applicable state securities or "blue sky" laws; and

                (ii)    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
        (or any successor form) under the Exchange Act.

        (d)     In case the Principal Party which is to be a party to a
transaction referred to in this Section 13 has a provision in any of its
authorized securities or in its certificate of incorporation, 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 referred to in this Section
13, shares of Common Stock of such Principal Party at less than in the Current
Per Share Market Price or securities exercisable for, or convertible into,
shares of Common Stock of such Principal Party at less than in the Current Per
Share 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 the shares of Common Stock of such Principal
Party pursuant to the provisions of this Section 13, then, in such event, the
Company shall not consummate any such transaction unless prior thereto the
Company and such Principal Party shall have executed and delivered to the Rights
Agent a supplemental agreement providing that the provision in question of such
Principal Party shall have been cancelled, waived or amended, or that the
authorized securities shall be redeemed, so

                                       24
<Page>

that the applicable provision will have no effect in connection with, or as a
consequence of, the consummation of the proposed transaction.

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

                Section 14.   FRACTIONAL RIGHTS AND FRACTIONAL SHARES.

        (a)     The Company shall not be required to issue fractions of Rights
or to distribute Rights Certificates which evidence fractional Rights. In lieu
of such fractional Rights, there shall be paid to the registered holders of the
Rights Certificates with regard to which such fractional Rights would otherwise
be issuable, an amount in cash equal to the same fraction of the Current Per
Share Market Price of a whole Right. For purposes of this Section 14(a), the
Current Per Share Market Price of a whole Right shall be the closing price per
share of a whole Right on the Trading Day immediately prior to the date on which
such fractional Rights would have been otherwise issuable.

        (b)     The Company shall not be required to issue fractions of
Preferred Stock (other than fractions which are integral multiples of one
one-thousandth of a share of Preferred Stock) upon exercise of the Rights or to
distribute certificates which evidence fractional Preferred Stock (other than
fractions which are integral multiples of one one-thousandth of a share of
Preferred Stock). Fractions of Preferred Stock in integral multiples of one
one-thousandth of a share of Preferred Stock 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 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 Stock represented by such
depositary receipts. In lieu of fractional shares of Preferred Stock that are
not integral multiples of one one-thousandth of a share of Preferred Stock, the
Company shall pay to the registered holders of Rights Certificates at the time
such Rights are exercised as herein provided an amount in cash equal to the same
fraction of the Current Per Share Market Price of one share of Preferred Stock.

        (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).

        (d)     Whenever a payment for fractional Rights or fractional shares is
to be made by the Rights Agent, the Company shall (i) promptly prepare and
deliver to the Rights Agent a certificate setting forth in reasonable detail the
facts related to such payment and the prices and/or formulas utilized in
calculating such payments, and (ii) provide sufficient monies to the Rights
Agent in the form of fully collected funds to make such payments. The Rights
Agent shall be fully protected in relying upon such a certificate and shall have
no duty to respect to, and shall not be deemed to have knowledge of any payment
for fractional Rights or fractional shares under any section of this Agreement
relating to the payment of fractional Rights or fractional

                                       25
<Page>

shares unless and until the Rights Agent shall have received such a certificate
and sufficient monies.

                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 this Agreement, are vested in the respective registered holders of the
Rights Certificates (and, prior to the Distribution Date, the registered holders
of certificates representing shares of Common Stock of the Company); and any
registered holder of any Rights Certificate (or, prior to the Distribution Date,
a certificate representing shares of Common Stock of the Company), without the
consent of the Rights Agent or of the holder of any other Rights Certificate
(or, prior to the Distribution Date, of a certificate representing shares of
Common Stock of the Company), 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 Rights Certificate
or, prior to the Distribution Date, in the manner provided in such Rights
Certificate and in this Agreement. Without limiting the foregoing or any
remedies available to the holders of Rights, it is specifically acknowledged
that the holders of Rights would not have an adequate remedy at law for any
breach by the Company of this Agreement and will be entitled to specific
performance of the obligations hereunder, and injunctive relief against actual
or threatened violations by the Company of the obligations of any Person subject
to this Agreement.

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

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

        (b)     after the Distribution Date, the Rights Certificates are
transferable only on the registry books of the Rights Agent if surrendered at
the office of the Rights Agent designated for such purpose, duly endorsed or
accompanied by a proper instrument of transfer with all required certificates
completed;

        (c)     subject to Sections 6(a) and 7(f), the Company and the Rights
Agent may deem and treat the Person in whose name the Rights Certificate (or,
prior to the Distribution Date, the associated Common Stock certificate) is
registered as the absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Rights
Certificates or the associated Common Stock certificate made by anyone other
than the Company or the Rights Agent) for all purposes whatsoever, and neither
the Company nor the Rights Agent shall be affected by any notice to the
contrary;

        (d)     such holder expressly waives any right to receive any fractional
Rights and any fractional securities upon exercise or exchange of a Right,
except as otherwise provided in Section 14; and

        (e)     notwithstanding anything in this Agreement to the contrary,
neither the Company nor the Rights Agent shall have any liability to any holder
of a Right or other Person as a result

                                       26
<Page>

of its inability to perform any of its obligations under this Agreement by
reason of any preliminary or permanent injunction or other order, judgement,
decree or ruling (whether interlocutory or final) issued by a court or by a
governmental, self-regulatory or administrative agency or commission, or any
statute, rule, regulation or executive order promulgated or enacted by any
governmental authority, prohibiting or otherwise restraining performance of such
obligation; PROVIDED, HOWEVER, the Company shall use commercially reasonable
efforts to have any such injunction, order, judgement, decree or ruling lifted
or otherwise overturned as soon as practicable.

                Section 17.   RIGHTS CERTIFICATE HOLDER NOT DEEMED A
STOCKHOLDER. No holder, as such, of any Rights Certificate shall be entitled to
vote, receive dividends or be deemed for any purpose the holder of the Units of
Preferred Stock or any other securities of the Company which may at any time be
issuable upon the exercise of the Rights represented thereby, nor shall anything
contained in this Agreement or in any Rights Certificate be construed to confer
upon the holder of any Rights Certificate, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action, or to receive notice of meetings or
other actions affecting stockholders (except as provided in Section 25), or to
receive dividends or subscription rights, or otherwise, until the Right or
Rights evidenced by such Rights Certificate shall have been exercised in
accordance with this Agreement.

                Section 18.   CONCERNING THE RIGHTS AGENT. The Company agrees to
pay to the Rights Agent reasonable compensation for all services rendered by it
under this Agreement and, from time to time, on demand of the Rights Agent, its
reasonable expenses and counsel fees and other disbursements incurred in the
preparation, negotiation, execution, delivery, amendment and administration of
this Agreement and the exercise and performance of its duties hereunder. The
Company also agrees to indemnify the Rights Agent for, and to hold it harmless
against, any loss, damage, judgment, fine, penalty, claim, demand, settlement,
cost, liability or expense (including, without limitation, the reasonable fees
and expenses of counsel), incurred without gross negligence, bad faith, or
willful misconduct on the part of the Rights Agent (each as determined by a
final, non-appealable order, judgment, decree or ruling of a court of competent
jurisdiction), for any action taken, suffered or omitted by the Rights Agent in
connection with the execution of this Agreement and the acceptance,
administration, exercise and performance of its duties under this Agreement,
including, without limitation, the costs and expenses of defending against and
appealing any claim of liability arising therefrom, directly or indirectly. The
provisions of this Section 18 and Section 20 shall survive the termination of
this Agreement, the exercise or expiration of the Rights and the resignation or
removal of the Rights Agent. The costs and expenses incurred in enforcing this
right of indemnification shall be paid by the Company.

                In the absence of gross negligence, bad faith, or willful
misconduct, the Rights Agent is authorized and 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 acceptance and administration of this Agreement
and the exercise and performance of its duties hereunder, in reliance upon any
Rights Certificate or certificate for Units 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

                                       27
<Page>

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 Person into which the Rights Agent or any successor Rights
Agent may be merged or with which it may be consolidated, or any Person
resulting from any merger or consolidation to which the Rights Agent or any
successor Rights Agent shall be a party, or any Person succeeding to the
business of the Rights Agent or any successor Rights Agent, shall be the
successor to the Rights Agent under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties hereto;
PROVIDED, however, that such Person must 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 Rights Certificates shall have been countersigned but not
delivered, any such successor Rights Agent may adopt the countersignature of the
predecessor Rights Agent and deliver such Rights Certificates so countersigned;
and in case at that time any of the Rights Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Rights
Certificates either in the name of the predecessor Rights Agent or in the name
of the successor Rights Agent; and in all such cases such Rights Certificates
shall have the full force provided in the Rights Certificates and in this
Agreement.

        (b)     In case at any time the name of the Rights Agent shall be
changed and at such time any of the Rights Certificates shall have been
countersigned but not delivered, the Rights Agent may adopt the countersignature
under its prior name and deliver Rights Certificates so countersigned; and in
case at that time any of the Rights Certificates shall not have been
countersigned, the Rights Agent may countersign such Rights Certificates either
in its prior name or in its changed name; and in all such cases such Rights
Certificates shall have the full force provided in the Rights Certificates and
in this Agreement.

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

        (a)     The Rights Agent may consult with legal counsel of its choice
(who may be legal counsel for the Company or an employee of the Rights Agent),
and the advice or opinion of such counsel shall be full and complete
authorization and protection to the Rights Agent, and the Rights Agent shall
incur no liability for or in respect of, as to any action taken, suffered or
omitted by it in good faith and in accordance with such advice or opinion.

        (b)     Whenever in the administration, exercise or 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, suffering or omitting to take 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 one of the Chairman of the Board, the Chief Executive
Officer, the President, any Vice President, the Chief Financial Officer or the
Secretary of the Company and delivered to the

                                       28
<Page>

Rights Agent; and such certificate shall be full and complete authorization and
protection to the Rights Agent for or in respect of any action taken, suffered
or omitted 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 (each as determined by a final, non-appealable order, judgment,
decree or ruling of a court of competent jurisdiction). Anything to the contrary
notwithstanding, in no event shall the Rights Agent be liable for special,
punitive, indirect, consequential or incidental loss or damage of any kind
whatsoever (including but not limited to lost profits), even if the Rights Agent
has been advised of the likelihood of such loss or damage. Any liability of the
Rights Agent under this Agreement shall be limited to the amount of fees paid by
the Company to the Rights Agent

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

        (e)     The Rights Agent shall not be under any responsibility or have
any liability in respect of the legality, validity or enforceability of this
Agreement or the execution and delivery hereof (except the due execution hereof
by the Rights Agent) or in respect of the legality, validity or enforceability
or the execution of any Rights Certificate (except its countersignature
thereof); nor shall it be liable or responsible for any breach by the Company of
any covenant or condition contained in this Agreement or in any Rights
Certificate; nor shall it be responsible for any change in the exercisability of
the Rights (including the Rights becoming unexercisable pursuant to Section 7(e)
or 11(a)(ii)) or any change or 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 would require any such
change or adjustment (except with respect to the exercise of Rights evidenced by
Rights Certificates after receipt of the certificate described in Section 12,
upon which the Rights Agent may rely); nor shall it by any act hereunder be
deemed to make any representation or warranty as to the authorization or
reservation of any Units of Preferred Stock or other securities to be issued
upon the exercise of any Rights or as to whether any such security will, when
issued, be validly authorized and issued, fully paid and nonassessable.

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

        (g)     The Rights Agent is hereby authorized and directed to accept
instructions with respect to the administration, exercise and performance of its
duties hereunder from any one of the Chairman of the Board, the Chief Executive
Officer, the President, any Vice President, the Chief Financial Officer or the
Secretary of the Company, and to apply to such officers for advice or
instructions in connection with its duties under this Agreement, and such
instructions shall be full authorization and protection to the Rights Agent and
the Rights Agent shall not be responsible or liable for, or in respect of, any
action taken, suffered or omitted to be taken by it in

                                       29
<Page>

accordance with instructions of any such officer or for any delay in acting
while waiting for those instructions. The Rights Agent shall be fully authorized
and protected in relying upon the most recent instructions received from such
officers. Any application by the Rights Agent for written instructions from the
Company may, at the option of the Rights Agent, set forth in writing any action
proposed to be taken, suffered or omitted by the Rights Agent under this
Agreement and the date on and/or after which such action shall be taken or such
omission shall be effective. The Rights Agent shall not be liable for any action
taken or suffered by, or omission of, the Rights Agent in accordance with a
proposal included in any such application on or after the date specified in such
application (which date shall not be less than five (5) Business Days after the
date on which any officer of the Company actually receives such application,
unless any such officer shall have consented in writing to an earlier date)
unless, prior to taking any such action (or the effective date in the case of an
omission), the Rights Agent shall have received written instructions in response
to such application specifying the action to be taken, suffered or omitted.

        (h)     The Rights Agent and any stockholder, affiliate, 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, or any such stockholder, affiliate, director, officer or employee from
acting in any other capacity for the Company or for any other Person.

        (i)     The Rights Agent may execute and exercise any of the rights or
powers hereby vested in it or perform any duty hereunder either itself (through
its directors, officers and employees) or by or through its attorneys or agents,
and the Rights Agent shall not be answerable or accountable for any act,
default, neglect or misconduct of any such attorneys or agents or for any loss
to the Company resulting from any such act, default, neglect or misconduct,
absent gross negligence, bad faith, or willful misconduct (each as determined by
a final non-appealable order, judgment, decree or ruling of a court of competent
jurisdiction).

        (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
the Rights Agent in good faith believes that repayment of such funds or adequate
indemnification against such risk or liability is not reasonably assured to it.

        (k)     If, with respect to any Rights Certificate surrendered to the
Rights Agent for exercise, transfer, split up, combination or exchange, the
certification on the form of assignment or form of election to purchase, as the
case may be, that has been completed to certify the holder is an Acquiring
Person (or an Affiliate or Associate thereof) has either not been completed or
in any manner indicates any other response thereto, the Rights Agent shall not
take any further action with respect to such requested exercise, transfer, split
up, combination or exchange, without first consulting with the Company.

                Section 21.   CHANGE OF RIGHTS AGENT. The Rights Agent or any
successor Rights Agent may resign and be discharged from its duties under this
Agreement upon thirty (30)

                                       30
<Page>

days' notice in writing mailed to the Company by registered or certified mail,
and to the holders of the Rights Certificates by first-class mail. The Company
may remove the Rights Agent or any successor Rights Agent upon thirty (30) days'
notice in writing, mailed to the Rights Agent or successor Rights Agent, as the
case may be, and to each transfer agent of the Common Stock or Preferred Stock
(as to which the Rights Agent has received prior written notice) by registered
or certified mail, and to the holders of the Rights Certificates by first-class
mail. If the Rights Agent shall resign or be removed or shall otherwise become
incapable of acting, the Company shall appoint a successor to the Rights Agent.
If the Company shall fail to make such appointment within a period of thirty
(30) days after giving notice of such removal or after it has been notified in
writing of such resignation or incapacity by the resigning or incapacitated
Rights Agent or by the holder of a Rights Certificate (who shall, with such
notice, submit such holder's Rights Certificate for inspection by the Company),
then the registered holder of any Rights Certificate may apply to any court of
competent jurisdiction for the appointment of a new Rights Agent. Any successor
Rights Agent, whether appointed by the Company or by such a court, shall be (a)
a Person organized and doing business under the laws of the United States or of
any state of the United States, in good standing, and subject to supervision or
examination by federal or state authority and which has at the time of its
appointment as Rights Agent a combined capital and surplus of at least $50
million or (b) an affiliate of a Person described in clause (a). After
appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as Rights
Agent without further act or deed; but the predecessor Rights Agent shall
deliver and transfer to the successor Rights Agent any property at the time held
by it hereunder, and execute and deliver any further assurance, conveyance, act
or deed necessary for the purpose. Not later than the effective date of any such
appointment the Company shall file notice thereof in writing with the
predecessor Rights Agent and each transfer agent of the Common Stock or
Preferred Stock, and mail a notice thereof in writing to the registered holders
of the Rights Certificates. Failure to give any notice provided for in this
Section 21, however, or any defect therein, shall not affect the legality or
validity of the resignation or removal of the Rights Agent or the appointment of
the successor Rights Agent, as the case may be.

                Section 22.   ISSUANCE OF NEW RIGHTS CERTIFICATES.
Notwithstanding any of the provisions of this Agreement or of the Rights to the
contrary, the Company may, at its option, issue new Rights Certificates
evidencing Rights in such form as may be approved by 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 Rights
Certificates made in accordance with the provisions of this Agreement. In
addition, in connection with the issuance or sale of shares of Common Stock of
the Company following the Distribution Date and prior to the Expiration Date,
the Company (a) shall, with respect to shares of Common Stock of the Company so
issued or sold pursuant to the exercise of stock options or under any employee
benefit plan or arrangement or upon the exercise, conversion or exchange of
securities of the Company currently outstanding or issued at any time in the
future by the Company and (b) may, in any other case, if deemed necessary or
appropriate by the board of directors of the Company issue Rights Certificates
representing the appropriate number of Rights in connection with such issuance
or sale; PROVIDED, HOWEVER, that (i) no such Rights Certificate shall be issued
and this sentence shall be null and void AB INITIO if, and to the extent that,
such issuance or this sentence would create a significant risk of or result in
material adverse tax consequences to the Company or the Person to whom such
Rights Certificate would be issued or would create a significant risk

                                       31
<Page>

of or result in such options' or employee plans' or arrangements' failing to
qualify for otherwise available special tax treatment and (ii) no such Rights
Certificate shall be issued if, and to the extent that, appropriate adjustment
shall otherwise have been made in lieu of the issuance thereof.

                Section 23.   REDEMPTION AND TERMINATION.

        (a)     The Company may, at its option, upon approval by the board of
directors, at any time on or prior to the Close of Business (or such later date
as may be determined by its board of directors) on the earlier of (i) the
Distribution Date or (ii) the Final Expiration 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"), and the Company may,
at its option, pay the Redemption Price either in cash, shares of Common Stock
of the Company (based on the Current Per Share Market Price thereof at the time
of redemption), or any other form of consideration deemed appropriate by its
board of directors. The redemption of the Rights by the board of directors of
the Company may be made effective at such time on such basis and with such
conditions as the board of directors of the Company in its sole discretion may
establish. Any such redemption will be effective immediately upon the action of
the board of directors of the Company ordering the same, unless such action of
the board of directors of the Company expressly provides that such redemption
will be effective at a subsequent time or upon the occurrence or nonoccurrence
of one or more specified events (in which case such redemption will be effective
in accordance with the provisions of such action of the board of directors of
the Company).

        (b)     Immediately upon the effectiveness of the redemption of the
Rights pursuant to Section 23(a), and without any further action and without any
notice, the right to exercise the Rights will terminate and the only right
thereafter of the holders of Rights shall be to receive the Redemption Price.
The Company shall promptly give public notice of any such redemption (with
prompt written notice thereof to the Rights Agent); PROVIDED, HOWEVER, that the
failure to give, or any defect in, any such notice shall not affect the legality
or validity of such redemption. Within 10 days after the effectiveness of the
redemption of the Rights, the Company shall give notice of such redemption to
the Rights Agent and 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 Stock. Any notice which is mailed in
such manner shall be deemed given, whether or not the holder receives the
notice. Each 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 or other than in connection with the purchase of shares of Common
Stock prior to the Distribution Date.

        (c)     Notwithstanding anything contained in this Agreement to the
contrary, the Rights shall not be exercisable pursuant to Section 7(a) at any
time when the Rights are redeemable hereunder.

                                       32
<Page>

                Section 24.   EXCHANGE.

        (a)     The Company, at its option, upon approval by its board of
directors, at any time after any Person becomes an Acquiring Person, may
exchange all or part of the then outstanding and exercisable Rights (which shall
not include Rights that have become unexerciseable pursuant to the provisions of
Section 7(e) hereof) for Units of Preferred Stock at an exchange ratio equal to,
subject to adjustment to reflect stock splits, stock dividends and similar
transactions occurring after the date hereof, that number obtained by dividing
the Purchase Price by the then Current Per Share Market Price per Unit of
Preferred Stock on the earlier of (i) the date on which any Person becomes an
Acquiring Person and (ii) the date on which a tender or exchange offer by any
Person (other than the Company, any Subsidiary of the Company, any employee
benefit plan maintained by the Company or any of its Subsidiaries or any trustee
or fiduciary with respect to such plan acting in such capacity) is commenced
within the meaning of Rule 14d-2(a) of the Exchange Act Regulations or any
successor rule, if upon consummation thereof such Person would be the Beneficial
Owner of 15% or more of the shares of Common Stock of the Company then
outstanding (such exchange ratio being hereinafter referred to as the "Section
24(a) Exchange Ratio"). Notwithstanding the foregoing, the Company may not
effect such exchange at any time after any Person (other than the Company, any
Subsidiary of the Company, any employee benefit plan maintained by the Company
or any of its Subsidiaries, or any trustee or fiduciary with respect to such
plan acting in such capacity), together with all Affiliates and Associates of
such Person, becomes the Beneficial Owner of 50% or more of the shares of Common
Stock of the Company then outstanding.

        (b)     Immediately upon the action of the board of directors of the
Company ordering the exchange of any Rights pursuant to subsection (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 Units of Preferred Stock equal
to the number of such Rights held by such holder multiplied by the Section 24(a)
Exchange Ratio. The Company shall promptly give public notice of any such
exchange (with prompt written notice thereof to the Rights Agent); PROVIDED,
HOWEVER, that the failure to give, or any defect in, such notice shall not
affect the legality or 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 provided in this Agreement 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 Units of Preferred Stock
for Rights will be effected and, in the event of any partial exchange, the
number of Rights which will be exchanged. Any partial exchange shall be effected
pro rata based on the number of Rights (other than Rights which have become
unexerciseable pursuant to the provisions of Section 7(e)) held by each holder
of Rights.

        (c)     In the event that the number of shares of Preferred Stock
authorized by the Company's certificate of incorporation but not outstanding or
reserved for issuance for purposes other than upon exercise of the Rights is not
sufficient 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 shares of Preferred Stock for issuance upon exchange of the
Rights or make adequate provision to substitute (1) cash, (2) Common Stock of
the Company or other equity securities of the Company, (3) debt securities of
the Company, (4) other assets, or

                                       33
<Page>

(5) any combination of the foregoing, having an aggregate value equal to the
aggregate Current Per Share Market Price of the Units of Preferred Stock that
would otherwise be issuable in such exchange, all as determined by the board of
directors of the Company (which determination shall be described in a statement
filed with the Rights Agent and shall be conclusive and binding on the Rights
Agent, the holders of the Rights and all other Persons). To the extent that the
Company determines that some action need be taken pursuant to Section 24(a), the
board of directors of the Company may temporarily suspend the exercisability of
the Rights for a period of up to sixty days following the date on which the
event described in Section 24(a) shall have occurred, in order to seek any
authorization of additional shares of Preferred Stock and/or to decide the
appropriate form of distribution to be made pursuant to the above provision and
to determine the value thereof. Upon any such suspension, the Company shall
notify the Rights Agent thereof and 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 supervision is no longer in effect (a copy of
which shall be provided to the Rights Agent).

                Section 25.   NOTICE OF CERTAIN EVENTS.

        (a)     In case the Company shall propose (i) to pay any dividend
payable in stock of any class to the holders of its Preferred Stock or to make
any other distribution to the holders of its Preferred Stock (other than a
regular quarterly cash dividend), (ii) to offer to the holders of its Preferred
Stock rights or warrants to subscribe for or to purchase any additional Units of
Preferred Stock or shares of stock of any class or any other securities, rights
or options, (iii) to effect any reclassification of its Preferred Stock (other
than a reclassification involving only the subdivision of outstanding Preferred
Stock), (iv) to effect any consolidation or merger into or with any other Person
(other than a Subsidiary of the Company in a transaction which complies with
Section 11(o)), or to effect any sale or other transfer (or to permit one or
more of its Subsidiaries to effect any sale or other transfer), in one or more
transactions, of 50% or more of the assets or earning power of the Company and
its Subsidiaries (taken as a whole) to, any other Person, (v) to effect the
liquidation, dissolution or winding up of the Company or (vi) to declare or pay
any dividend on the Common Stock of the Company payable in shares of Common
Stock of the Company or to effect a subdivision, combination or consolidation of
the shares of Common Stock of the Company (by reclassification or otherwise than
by payment of dividends in shares of Common Stock), then, in each such case, the
Company shall give to the Rights Agent and each holder of a Rights 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
shares of Common Stock of the Company and/or shares of Preferred Stock, if any
such date is to be fixed, and such notice shall be so given in the case of any
action covered by clause (i) or (ii) above at least ten (10) days prior to the
record date for determining holders of the shares of Preferred Stock for
purposes of such action, and in the case of any such other action, at least ten
(10) days prior to the date of the taking of such proposed action or the date of
participation therein by the holders of the shares of Common Stock of the
Company and/or shares of Preferred Stock, whichever shall be the earlier.

        (b)     In case any of the events set forth in Section 11(a)(ii) shall
occur, then the Company shall as soon as practicable thereafter give to each
holder of a Rights Certificate, in

                                       34
<Page>

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). In the event any Person becomes an Acquiring
Person, the Company shall provide the Rights Agent with prompt written notice
thereof.

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

                Register.com, Inc.
                575 8th Avenue, 8th Floor
                New York, NY  10018
                Attention: General Counsel

                with a copy (which shall not constitute notice) to:

                Brobeck, Phleger & Harrison LLP
                1633 Broadway, 47th Floor
                New York, NY 10019
                Attention: Scott L. Kaufman, Esq.
                Telecopy: (212) 586-7878

Subject to the provisions of Section 21, any notice or demand authorized by this
Agreement to be given or made by the Company or by the holder of any Rights
Certificate to or on the Rights Agent shall be sent by registered or certified
mail (deemed received at the time of delivery) or by facsimile transmission
(deemed received at the time of confirmed transaction), and addressed (until
another address is filed in writing by the Rights Agent with the Company), as
follows:

                American Stock Transfer & Trust Company
                6201 15th Avenue
                Brooklyn, New York 11219
                Attention: General Counsel

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

                Section 27.   SUPPLEMENTS AND AMENDMENTS. Prior to the
Distribution Date, the Company may supplement or amend this Agreement in any
respect, without the approval of any holders of Rights, by action of its board
of directors. From and after the Distribution Date, the Company may from time to
time supplement or amend this Agreement without the approval of any holders of
Rights, by action of its board of directors in order to (i) cure any ambiguity,
(ii) correct or supplement any provision contained herein which may be defective
or inconsistent with any other provisions herein, (iii) shorten or lengthen any
time period hereunder, or

                                       35
<Page>

(iv) change or supplement the provisions hereunder in any manner that the
Company may deem necessary or desirable and which shall not adversely affect the
interests of the holders of Rights (other than an Acquiring Person or an
Affiliate or Associate of an Acquiring Person), including, without limitation,
to change the Purchase Price, the Redemption Price, any time periods herein
specified, and any other term hereof, any such supplement or amendment to be
evidenced by a writing signed by the Company and the Rights Agent; PROVIDED,
HOWEVER, that from and after such time as any Person becomes an Acquiring
Person, this Agreement shall not be amended in any manner which would adversely
affect the interests of the holders of Rights. Upon receipt of a certificate
from an appropriate officer of the Company and, if requested by the Rights
Agent, an opinion of counsel, which states that the proposed supplement or
amendment is consistent with this Section 27 and, after such time as any Person
has become an Acquiring Person, that the proposed supplement or amendment does
not adversely affect the interests of the holders of Rights, the Rights Agent
shall execute such supplement or amendment. Notwithstanding anything contained
in this Agreement to the contrary, the Rights Agent may, but shall not be
obligated to, enter into any supplement or amendment that affects the Rights
Agent's own rights, duties, obligations or immunities under this Agreement and
the Rights Agent shall not be bound by supplements or amendments not executed by
it.

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

                Section 29.   DETERMINATIONS AND ACTIONS BY THE BOARD OF
DIRECTORS. For all purposes of this Agreement, any calculation of the number of
shares of Common Stock of the Company outstanding at any particular time,
including for purposes of determining the particular percentage of such
outstanding shares of Common Stock of the Company of which any Person is the
Beneficial Owner, shall be made in accordance with the last sentence of Rule
13d-3(d)(1)(i) of the Exchange Act Regulations. The board of directors of the
Company shall have the exclusive power and authority to administer this
Agreement and to exercise all rights and powers specifically granted to the
board of directors, or the Company, or as may be necessary or advisable in the
administration of this Agreement, including, without limitation, the right and
power to (i) interpret the provisions of this Agreement and (ii) make all
determinations or calculations deemed necessary or advisable for the
administration of this Agreement (including a determination to redeem or not
redeem the Rights or to amend the Agreement). All such actions, calculations,
interpretations and determinations (including, for purposes of clause (y) below,
all omissions with respect to the foregoing), which are done or made by the
board of directors of the Company in good faith, shall (x) be final, conclusive
and binding on the Company, the Rights Agent, the holders of the Rights
Certificates and all other Persons and (y) not subject the board of directors of
the Company to any liability to the holders of the Rights. The Rights Agent
shall be entitled to assume that the Board of Directors acted in good faith and
shall be fully protected and incur no liability in reliance thereon.

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

                                       36
<Page>

registered holders of the Rights Certificates (and, prior to the Distribution
Date, shares of Common Stock of the Company).

                Section 31.   SEVERABILITY. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated;
PROVIDED, HOWEVER, that notwithstanding anything in this Agreement to the
contrary, if any such term, provision, covenant or restriction is held by such
court or authority to be invalid, void or unenforceable and the board of
directors of the Company determines in its good faith judgment that severing the
invalid language from this Agreement would adversely affect the purpose or
effect of this Agreement, the right of redemption set forth in Section 23 shall
have expired, such right shall be reinstated (and the Company shall provide the
Rights Agent with prompt written notice of such reinstatement) and shall not
expire until the Close of Business on the tenth (10) day following the date of
such determination by the board of directors of the Company.

                Section 32.   GOVERNING LAW. This Agreement, each Right, and
each Rights Certificate issued hereunder shall be deemed to be a contract made
under the laws of the State of Delaware and for all purposes shall be governed
by and construed in accordance with the laws of such State applicable to
contracts to be made and performed entirely within such state, without regard to
the choice-of-law or conflict-of-laws principles of any jurisdiction; PROVIDED
HOWEVER, that all provisions regarding the rights, duties, obligations and
immunities of the Rights Agent shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be
performed entirely within such State, without regard to the choice-of-law or
conflict-of-laws principles of any jurisdiction.

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

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

                                       37
<Page>

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

                                        REGISTER.COM, INC.

                                        By: /s/ Richard D. Forman
                                            ---------------------
                                        Name: Richard D. Forman
                                        Title: Chief Executive Officer

                                        AMERICAN STOCK TRANSFER & TRUST
                                        COMPANY

                                        By: /s/ Barry S. Rosenthal
                                            ----------------------
                                        Name: Barry S. Rosenthal
                                        Title: Vice President

<Page>

                                    EXHIBIT A

                        FORM OF CERTIFICATE OF DESIGNATION

                      OF RIGHTS, PREFERENCES AND PRIVILEGES

                                       of

                  SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

                                       of

                               REGISTER.COM, INC.,

                         (Pursuant to Section 151 of the
                        Delaware General Corporation Law)

                                   ----------

                Register.com, Inc., a corporation organized and existing under
the General Corporation Law of the State of Delaware (hereinafter called the
"Corporation"), hereby certifies that the following resolution was adopted by
the Board of Directors of the Corporation (the "Board") as required by Section
151 of the General Corporation Law at a meeting duly called and held on October
28, 2002;

                RESOLVED, that pursuant to the authority granted to and vested
in the Board in accordance with the provisions of the Amended and Restated
Certificate of Incorporation of the Corporation (the "Certificate of
Incorporation"), as currently in effect, the Board hereby creates a series of
Preferred Stock, par value $0.0001 per share (the "Preferred Stock"), of the
Corporation and hereby states the designation and number of shares, and fixes
the relative rights, preferences, and privileges thereof as follows:

                Series A Junior Participating Preferred Stock:

        Section 1.  DESIGNATION AND AMOUNT. The shares of such series shall be
designated as "Series A Junior Participating Preferred Stock" (the "Series A
Preferred Stock") and the number of shares constituting the Series A Preferred
Stock shall be Two Million (2,000,000). Such number of shares may be increased
or decreased by resolution of the Board; PROVIDED, that no decrease shall reduce
the number of shares of Series A Preferred Stock to a number less than the
number of shares of Series A Preferred Stock then outstanding plus the number of
Series A Preferred Stock shares reserved for issuance upon the exercise of
outstanding options, rights or warrants or upon the conversion of any
outstanding securities issued by the Corporation convertible into Series A
Preferred Stock.

                                      A-1
<Page>

        Section 2.  DIVIDENDS AND DISTRIBUTIONS.

        (a) Subject to the rights of the holders of any shares of any series of
Preferred Stock (or any similar stock) ranking prior and superior to the Series
A Preferred Stock with respect to dividends, each holder of a share of Series A
Preferred Stock, in preference to the holders of shares of common stock, par
value $0.0001 per share (the "Common Stock"), of the Corporation, and of any
other junior stock, shall be entitled to receive, when declared by the Board out
of funds legally available for such purpose, dividends in an amount per share
(rounded to the nearest cent) equal to, subject to the provision for adjustment
hereinafter set forth, 1,000 times the aggregate per share amount of all cash
dividends, and 1,000 times the aggregate per share amount (payable in kind) of
all non-cash dividends or other distributions, other than a dividend payable in
shares of Common Stock or a subdivision of the outstanding shares of Common
Stock (by reclassification or otherwise), declared on the Common Stock. In the
event the Corporation shall, at any time after October 28, 2002 (the "Rights
Declaration 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 than
by payment of a dividend in shares of Common Stock) into a greater or lesser
number of shares of Common Stock (and an equivalent dividend is not declared on
the Series A Preferred Stock or the Series A Preferred Stock is not similarly
subdivided or combined), then in each such case the amount to which holders of
shares of Series A Preferred Stock were entitled immediately prior to such event
under 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
shares of Series A Preferred Stock as provided in Section 2(a) immediately after
it declares a dividend or distribution on the Common Stock (other than a
dividend payable in shares of Common Stock); PROVIDED, HOWEVER, that, in no
event shall a dividend or distribution be declared by the Board on the Common
Stock for which it does not declare and pay the dividend required to be declared
on the Preferred Stock pursuant to Section 2(a).

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

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

        (a) Subject to the provision for adjustment hereinafter set forth, each
share of Series A Preferred Stock shall entitle the holder thereof to 1,000
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 Rights Declaration
Date, declare or pay any dividend on the Common Stock payable in shares of

                                      A-2
<Page>

Common Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser number
of shares of Common Stock (and an equivalent dividend is not declared on the
Series A Preferred Stock or the Series A Preferred Stock is not similarly
subdivided or combined), then in each such case the number of votes per share to
which holders of shares of Series A Preferred Stock were entitled immediately
prior to such event shall be adjusted by multiplying such number by a fraction,
the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

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

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

        Section 4.  CERTAIN RESTRICTIONS.

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

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

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

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

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

                                      A-3
<Page>

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

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

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

        Section 6.  LIQUIDATION, DISSOLUTION OR WINDING UP.

        (a) Upon any liquidation, dissolution or winding up of the Corporation,
no distribution shall be made (i) to the holders of shares of stock ranking
junior (either as to dividends or upon liquidation, dissolution or winding up)
to the Series A Preferred Stock unless, prior thereto, the holders of shares of
Series A Preferred Stock shall have received the greater of (x) $1,000 per
share, plus an amount equal to accrued and unpaid dividends and distributions
thereon to the date of such payment (the "Series A Liquidation Preference") and
(y) an aggregate amount per share, subject to the provision for adjustment
hereinafter set forth, equal to the product of 1,000 times the aggregate amount
to be distributed per share to holders of shares of Common Stock, or (ii) to the
holders of shares of stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series A Preferred Stock,
except distributions made ratably on the Series A Preferred Stock and all such
parity stock in proportion to the total amounts to which the holders of all such
shares are entitled upon such liquidation, dissolution or winding up. In the
event the Corporation shall, at any time after the Rights Declaration 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 than by
payment of a dividend in shares of Common Stock) into a greater or lesser number
of shares of Common Stock (and an equivalent dividend is not declared on the
Series A Preferred Stock or the Series A Preferred Stock is not similarly
subdivided or combined), then in each such case the aggregate amount to which
holders of shares of Series A Preferred Stock were entitled immediately prior to
such event under the proviso in clause (i) 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.

                                      A-4
<Page>

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

        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 converted or changed into other
stock or securities, cash and/or any other property (or into the right to
receive any of the foregoing), then in any such case each share of Series A
Preferred Stock shall at the same time be similarly exchanged, converted or
changed into an amount per share, subject to the provision for adjustment
hereinafter set forth, equal to 1,000 times the aggregate amount of stock,
securities, cash and/or any other property (payable in kind), as the case may
be, into which or for which each share of Common Stock is converted, changed or
exchanged. In the event the Corporation shall, at any time after the Rights
Declaration 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 than
by payment of a dividend in shares of Common Stock) into a greater or lesser
number of shares of Common Stock (and an equivalent dividend is not declared on
the Series A Preferred Stock or the Series A Preferred Stock is not similarly
subdivided or combined), then in each such case the amount set forth in the
preceding sentence with respect to the conversion, exchange or change of shares
of Series A Preferred Stock shall be adjusted by multiplying such amount by a
fraction, the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to such
event.

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

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

        Section 10. AMENDMENT. The certificate of incorporation of the
Corporation shall not be amended, including any amendment through consolidation,
merger, combination or other transaction, in any manner which would materially
alter or change the powers, preferences or special rights of the Series A
Preferred Stock so as to affect them adversely without the affirmative vote of
the holders of at least a majority of the outstanding shares of Series A
Preferred Stock, voting together as a single class.

                                      A-5
<Page>

                IN WITNESS WHEREOF, this Certificate of Designation is executed
on behalf of the Corporation as of October 28, 2002.

                                        REGISTER.COM, INC.

                                        By: /s/ Richard D. Forman
                                            ---------------------

                                        Name: Richard D. Forman

                                        Title: Chief Executive Officer

                                      A-6
<Page>

                                    EXHIBIT B

                           Form of Rights Certificate

Certificate No. R-                                               ________ Rights

        NOT EXERCISABLE AFTER NOVEMBER 12, 2012 OR EARLIER IF
        REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS ARE SUBJECT TO
        REDEMPTION AT THE OPTION OF THE COMPANY AT $0.01 PER RIGHT AND
        TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.
        UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN
        ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING
        PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND
        ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME UNEXERCISABLE.
        [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE
        BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING
        PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS
        SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). aCCORDINGLY,
        THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY
        BECOME UNEXERCISABLE IN THE CIRCUMSTANCES SPECIFIED IN SUCH
        AGREEMENT]*

                               Rights Certificate

                               REGISTER.COM, INC.

                This certifies that [_____________], or registered assigns, is
the registered owner of the number of Rights set forth above, each of which
entitles the owner thereof, subject to the terms, provisions and conditions of
the Rights Agreement, dated as of October 28, 2002 (the "Rights Agreement"),
between Register.com, Inc., a Delaware corporation (the "Company"), and American
Stock Transfer & Trust Company, as Rights Agent (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., New York City time,
on November 12, 2012 at the office of the Rights Agent designated for such
purpose, or at the office of its successor as Rights Agent, one one-thousandth
(a "Unit") of a fully paid non-assessable share of Series A Junior Participating
Preferred Stock, par value $0.0001 per share (the "Series A Preferred Stock"),
of the Company, at a purchase price of $32.00 per Unit of Series A Preferred
Stock (the "Purchase Price"), upon presentation and surrender of this Rights
Certificate with the Form of Election to Purchase and certification duly
executed and properly completed. The number of Rights evidenced by this Rights
Certificate (and the number of Units of Series A Preferred Stock 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 November 12, 2002 based on
the Series A Preferred

----------
     *  The bracketed language is to be inserted in place of the preceding
        sentence where applicable.

                                       B-1
<Page>

Stock as constituted at such date. As provided in the Rights Agreement, the
Purchase Price and the number of Units of Series A Preferred Stock which may be
purchased upon the exercise of the Rights evidenced by this Rights Certificate
are subject to modification and adjustment upon the happening of certain events.

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

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

                Subject to the provisions of the Rights Agreement, the Rights
evidenced by this Certificate may be redeemed by the Company at a redemption
price of $0.01 per Right.

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

                                       B-2
<Page>

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

                WITNESS the signature of the proper officers of the Company and
its corporate seal.

                                        REGISTER.COM, INC.

        Dated as of ___________.
                                        By:
                                            ------------------------------------

                                            Name:
                                                  ------------------------------

                                            Title:
                                                   -----------------------------

Countersigned:

AMERICAN STOCK TRANSFER &
TRUST COMPANY

as Rights Agent

By:
    ------------------------------------
    Authorized Signatory

    Name:
          ------------------------------

    Title:
           -----------------------------

                                      B-3
<Page>

                   Form of Reverse Side of Rights Certificate

                               FORM OF ASSIGNMENT

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

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

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

DATED:__________________, ___

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

                                                  (Signature must conform in all
                                                  respects to name of holder as
                                                  specified on the face of this
                                                  Rights Certificate)

Signature Guaranteed:

                Signatures must be guaranteed by a participant in an "eligible
guarantor institution" as defined in Rule 17-Ad15 promulgated under the
Securities Exchange Act of 1934, as amended.

                                       B-4
<Page>

                                   CERTIFICATE

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

   -----------------------------------            ------------------------------
                Date                                        Signature

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

                                     NOTICE

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

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

                                       B-5
<Page>

                          FORM OF ELECTION TO PURCHASE

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

To Register.com, Inc.

                The undersigned hereby irrevocably elects to exercise __________
Rights represented by this Rights Certificate to purchase the Units of Series A
Preferred Stock issuable upon the exercise of such Rights and requests that
certificates for such Series A Preferred Stock be issued in the name of:

Please insert social security
or other identifying number_____________________________________________________
                                        (Please print name and address)

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

Please insert social security
or other identifying number_____________________________________________________
                                        (Please print name and address)

DATED:___________________, ____

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

                                                  (Signature must conform in all
                                                  respects to name of holder as
                                                  specified on the face of this
                                                  Rights Certificate)

Signature Guaranteed:

                Signatures must be guaranteed by a participant in an "eligible
guarantor institution" as defined in Rule 17-Ad-15 promulgated under the
Securities Exchange Act of 1934, as amended.

                                       B-6
<Page>

                                   CERTIFICATE

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

   -----------------------------------            ------------------------------
                Date                                        Signature

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

                                     NOTICE

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

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

                                       B-7
<Page>

                                    EXHIBIT C

                          SUMMARY OF RIGHTS TO PURCHASE
                                 PREFERRED STOCK

                On October 28, 2002, the board of directors of Register.com,
Inc. (the "Company") declared a dividend distribution of one right (a "Right")
for each outstanding share of our common stock to stockholders of record at the
close of business on November 12, 2002. Each Right entitles the registered
holder to purchase from the Company one one-thousandth of a share of our Series
A Junior Participating preferred stock, par value $0.0001 per share (the
"Preferred Stock"), at a purchase price of $32.00, subject to adjustment. The
description and terms of the Rights are set forth in a Rights Agreement (the
"Rights Agreement") between the Company and American Stock Transfer & Trust
Company, as Rights Agent.

                Initially, the Rights will be attached to all common stock
certificates representing shares then outstanding, and no separate Rights
certificates will be distributed. The Rights will separate from the common
stock on the distribution date (the "Distribution Date"). The Distribution
Date will occur on the earlier of (i) ten (10) days following a public
announcement that a person or group of affiliated or associated persons has
(subject to certain exceptions) acquired, or obtained the right to acquire,
beneficial ownership of 15% or more of the outstanding shares of our common
stock (the "Share Acquisition Date"), other than as a result of repurchases
of stock by the Company (an "Acquiring Person"), or (ii) ten (10) days (or a
later date that the board shall determine) following the commencement of, or
public announcement of an intention to make, a tender offer or exchange offer
that would result in a person or group beneficially owning 15% or more of the
outstanding shares of our common stock.

                Until the Distribution Date, (i) the Rights will be evidenced by
the common stock certificates and will be transferred with and only with such
common stock certificates, (ii) new common stock certificates issued after the
record date will contain a legend incorporating the Rights Agreement by
reference and (iii) the surrender for transfer of any certificates for common
stock outstanding will also constitute the transfer of the Rights associated
with the common stock represented by such certificate. Prior to the occurrence
of a Triggering Event (as defined below), the Company can require that in order
to exercise Rights, a number of Rights be exercised so that only whole shares of
Preferred Stock will be issued therefor.

                The Rights cannot be exercised until the Distribution Date and
will expire at the close of business on November 12, 2012, unless the Company
redeems them as described below.

                Shortly after the Distribution Date, Rights certificates would
be mailed to record holders of our common stock as of the close of business on
the Distribution Date and, thereafter, the separate Rights certificates alone
will represent the Rights. Unless our board of directors decides differently,
only shares of our common stock issued before the Distribution Date will be
issued with Rights.

                If a person or group of affiliated or associated persons
becomes (subject to certain exceptions) the beneficial owner of 15% or more
of the then outstanding shares of common stock, other than pursuant to an
offer for all the outstanding shares of common stock that our board of
directors determines to be

                                       C-1
<Page>

fair to and otherwise in the best interests of the Company and its stockholders,
once the Rights become exercisable, each holder (other than an Acquiring Person,
its affiliates, associates and certain transferees) of a Right will thereafter
have the right to receive, upon exercise of the Right, preferred stock (or, in
certain circumstances, cash, property or other securities of the Company) having
a value equal to two times the exercise price of the Right. If, at any time
after the Share Acquisition Date, (i) we are acquired in a merger or other
business combination transaction in which we are not the surviving corporation,
other than a merger that results from an offer for all the outstanding shares of
common stock that our board of directors decides is fair and in the best
interests of the Company and its stockholders, or (ii) 50% or more of our
assets, cash flow or earning power is sold or transferred, once the Rights
become exercisable, each holder (other than an Acquiring Person, its affiliates,
associates and certain transferees) of a Right, except Rights which previously
have been voided, will have the right to receive, after exercise of the Right,
common stock of the company that acquires us having a value equal to two times
the exercise price of the Right. The events described in this paragraph are
"Triggering Events."

                For example, at an exercise price of $32.00 per Right, each
Right not owned by an Acquiring Person (or by certain related parties)
following a Triggering Event would entitle its holder to purchase $64.00
worth of preferred stock (or other consideration, as noted above) for $32.00.
Assuming that our common stock had a per share value of $8.00 at such time,
the holder of each valid Right would be entitled to purchase preferred stock
that would be economically equivalent to eight shares of our common stock for
$32.00.

                All Rights that are, or (under certain circumstances specified
in the Rights Agreement) were, beneficially owned by any Acquiring Person will
not be exercisable.

                At any time after a person becomes an Acquiring Person and prior
to the acquisition by such person or group of 50% or more of the outstanding
common stock, the board of directors may exchange the Rights (other than Rights
owned by the person or group which will not be exercisable), in whole or in
part, at an exchange ratio of one share of common stock, or one one-thousandth
of a share of preferred stock (or of a share of a class or series of our
preferred stock having equivalent rights, preferences and privileges), per
Right.

                At any time until ten (10) days following the Distribution
Date, the board of directors may redeem the Rights in whole, but not in part,
at a price of $0.01 per Right (payable in cash, common stock or other
consideration deemed appropriate by the board of directors). Immediately upon
the action of the board of directors ordering redemption of the Rights, the
Rights will terminate and the only right of the holders of Rights will be to
receive the $0.01 redemption price.

                Until a Right is exercised, the holder of a Right will not
have the rights of a stockholder of the Company, such as the right to vote or
to receive dividends. While the distribution of the Rights will not be
taxable to stockholders or to the Company, stockholders may recognize taxable
income in the event that the Rights become exercisable for Preferred Stock
(or other consideration) of the Company or for common stock of the acquiring
company.

                The provisions of the Rights Agreement may be amended by the
board of directors of the Company in any manner; however after the earlier of a
person or entity becoming

                                       C-2
<Page>

an Acquiring Person or the Distribution Date, the Rights Agreement cannot be
amended in a manner which would adversely affect the interests of the holders of
Rights.

                A copy of the Rights Agreement has been filed with the
Securities and Exchange Commission as an exhibit to a Current Report on Form
8-K. A copy of the Rights Agreement is available free of charge from the
Company. This summary description of the Rights is not complete. You should
refer to the Rights Agreement for further information.

                                       C-3exv10wa

 

Exhibit 10(a)

EMPLOYMENT AGREEMENT

         AGREEMENT (“Agreement”) dated as of September 30, 2002 (the “Effective
Date”), by and between OXFORD HEALTH PLANS, INC. (the “Corporation”), having a
principal office in Trumbull, Connecticut, and Charles G. Berg (the
“Employee”).

         WHEREAS, the Corporation entered into an Employment Agreement with the
Employee dated March 12, 2001; and

         WHEREAS, the Corporation and the Employee now wish to enter into a new
employment agreement to reflect expected changes in the Employee’s duties;

         NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, the Corporation and the Employee agree as follows:

         1.     Employment.

		
	 	         (i) From the Promotion Date and during the balance of the Term (as
both terms are hereinafter defined), the Employee shall be employed as
the Chief Executive Officer of the Corporation and shall serve as a
director of the Corporation for so long as he is so elected. As Chief
Executive Officer of the Corporation the Employee shall have those powers
and duties consistent with his position as chief executive officer, which
powers shall in all cases include, without limitation, the power of
supervision and control over and responsibility for the general
management and operation of the Corporation, subject to the powers by law
vested in the Board of Directors of the Corporation (the “Board”) and in
the Corporation’s stockholders. The Employee shall report directly to the
Board, and shall perform such other related duties as the Board may from
time to time reasonably direct or request. The Employee shall be a full
time employee of the Corporation, and shall devote substantially all his
working time to the performance of his duties hereunder.

 

 

		
	 	         (ii) Notwithstanding any provision in the Employee’s employment
agreement with the Corporation dated March 13, 2001, as it may have been
amended from time to time (the “Former Agreement”), such Former Agreement
shall continue to govern all of the terms and conditions of the
Employee’s employment with the Corporation until the Promotion Date, and
from and after the Promotion Date, if the Employee is still employed by
the Corporation, this Agreement shall supersede the Former Agreement and
any other employment or severance agreement or arrangements between the
parties.

         For purposes of this Agreement, “Promotion Date” shall mean the date on
which Norman C. Payson, M.D. ceases to be employed as Chief Executive Officer
of the Corporation.

         The Employee shall perform his duties and responsibilities under this
Agreement faithfully, diligently and to the best of the Employee’s ability, and
in compliance with all applicable laws and the Corporation’s Certificate of
Incorporation and Bylaws, as they may be amended from time to time.

         2.     Term. The initial term of employment under this Agreement shall be
for a period of two (2) years commencing on the Promotion Date (the “Term”) and
the Employee hereby agrees to work in the employ of the Corporation, subject to
the terms and conditions of this Agreement. This Agreement shall be extended
automatically for two (2) additional years on the second anniversary date of
the Promotion Date and on each second anniversary of the Promotion Date
thereafter, unless either the Corporation or the Employee gives contrary
written notice to the other not less than three (3) months in advance of such
anniversary of the Promotion Date. References herein to the Term shall refer
both to such initial term and such successive terms. Upon a “Change in Control”
(as defined in Section 7(a)) of the Corporation, the Term shall be extended to
two (2) years from the date of such Change in Control, unless notice to
terminate the Term has been properly provided prior to the date of such Change
in Control, and such Change in Control date shall be treated as the Promotion
Date for purposes of renewals of

2

 

 this Agreement. The Term shall end upon the termination of the Employee’s
employment under this Agreement.

         3.     Compensation. Base Salary. The Corporation agrees to pay the
Employee during the Term an annual base salary (“Base Salary”) of $700,000.
The Base Salary shall be reviewed at least annually during the Term by the
Board, and the Employee shall receive such increases in Base Salary, if any, as
the Compensation Committee of the Board (the “Committee”) in its absolute
discretion may determine, together with such performance or merit increases, if
any, as the Committee in its absolute discretion may determine. Base Salary
shall refer to Base Salary as increased from time to time pursuant to the
previous sentence. Base Salary shall not be decreased. Participation with
respect to discretionary bonuses, retirement and other employee benefit plans
and fringe benefits shall not reduce the Base Salary payable to the Employee
under this Section 3. The Base Salary shall be payable to the Employee in
equal installments in conformity with the Corporation’s normal payroll periods.

                  (b) Bonus. During the Term, the Employee shall be eligible for an annual
performance bonus as determined by the Committee with a target amount of 100%
of Base Salary, based on annual performance targets to be determined by the
Committee.

         4.     Withholding Obligation. The Corporation shall have the ability to
withhold from the compensation otherwise due to the Employee under this
Agreement any federal income tax, Federal Insurance Contribution Act tax,
Federal Unemployment Act tax, or other amounts required to be withheld from
compensation from time to time under the Internal Revenue Code of 1986, as
amended (the “Code”), or under any state or municipal laws or regulations.

         5.     Fringe Benefits.

                  (a) Time Off and Leave. During the Term, the Employee shall be entitled
to the greater of twenty-three (23) select days per year and the maximum
allowed under the Corporation’s select time program. Select days are used for
vacation, personal time and sick time. In addition, the Employee will receive
paid company holidays each year

3

 

in accordance with the Corporation’s standard policy (seven holidays as of
the Effective Date). The employee shall also be eligible for such other leave,
with or without compensation, as shall be mutually agreed upon by the Employee
and the Committee.

                  (b) Participation in Retirement and Employee Benefit Plans. During the
Term, the Employee shall be eligible to participate in the Corporation’s 1991
Stock Option Plan, annual incentive compensation plan, and any other plan of
the Corporation or its subsidiaries relating to stock options, stock
appreciation, stock purchases, pension, thrift, profit sharing, group life
insurance, medical coverage, education or other retirement or employee benefits
that the Corporation may adopt for the benefit of its executive employees.

                  (c) Disability. If the Employee shall become disabled or incapacitated
during the Term to the extent that he is unable to perform his duties and
responsibilities hereunder, he shall be eligible to receive disability benefits
of the type provided to him as of the Effective Date, or, if more favorable to
the Employee, benefits of the type provided for other executive employees of
the Corporation.

                  (d) Death. If the Employee shall die during the Term, the Corporation
shall pay to such person as the Employee has designated in a notice filed with
the Corporation, or, if no such notice is filed, to his estate, the Employee’s
Base Salary at the date of his death plus an amount equal to the Bonus as
defined in Section 3(b), which Bonus, for this purpose, shall be deemed to be
no less than $700,000, amortized in 26 equal bi-weekly payments.

                  (e) Other Benefits. During the Term, the Employee shall be entitled to
participate in any other fringe benefits which are or may become applicable to
the Corporation’s executive employees, including a reasonable expense account
and any other benefits which are commensurate with the duties and
responsibilities to be performed by the Employee under this Agreement. In
addition, the Corporation agrees, during the Term, to reimburse the Employee
for the cost of the Employee’s personal disability and life insurance policies
as in effect on April 15, 1998.

4

 

         6.     Termination of Employment. The Employee’s employment hereunder may be
terminated under the circumstances set forth in paragraphs (a) through (e)
below:

                  (a) Death. The Employee’s employment hereunder shall terminate upon his
death.

                  (b) Disability. If, as a result of the Employee’s incapacity due to
physical or mental illness, the Employee shall have been absent from his duties
hereunder (i.e., has been unable to perform such duties) on a full-time basis
for the entire period of six (6) consecutive months, and within thirty (30)
days after written Notice of Termination is given (which may occur before or
after the end of such six (6) month period) shall not have returned to the
performance of his duties hereunder on a full-time basis, the Corporation may
terminate the Employee’s employment hereunder for “Disability.”

                  (c) Cause. The Corporation may terminate the Employee’s employment
hereunder for Cause or without Cause. Except as provided in Section 7(b) hereof
following a Change in Control, termination for Cause shall mean termination
because the Employee (i) engages in the following conduct in connection with
his employment with the Corporation: personal dishonesty, willful misconduct,
breach of fiduciary duty involving personal profit, breach of a restrictive
covenant against competition, [intentional] disclosure of confidential
information of the Corporation, consistent intentional failure to perform
stated duties after notice and the failure to cure, or (ii) willfully violates
any law, rule, or regulation (other than traffic violations or similar
offenses), which willful violation materially impacts the Employee’s ability to
perform his duties to the Corporation.

                  (d) Good Reason. The Employee may terminate his employment hereunder with
or without Good Reason; provided, however, that the Employee agrees not to
terminate his employment hereunder (other than for Good Reason or for
Retirement) during the ninety-day period following a Change in Control. Except
as provided in Section 7(c) hereof during the two-year period following a
Change in Control, for purposes of this Agreement “Good Reason” shall mean any
(i) removal of the Employee from, or failure to re-appoint the Employee to, his
position as Chief

5

 

Executive Officer, or failure to nominate him for election to the Board
(unless in the reasonable judgment of the Board such nomination would violate
applicable law or a requirement of a stock exchange on which the Corporation’s
securities are listed), except, in each case, in connection with termination of
the Employee for Cause, (ii) failure by the Corporation to comply with Section
3 or Section 5 hereof in any material respect, (iii) material diminution in the
Employee’s duties and responsibilities, or (iv) requirement of the Corporation
that the Employee be based in an office that increases the Employee’s commute
thirty (30) or more miles from the Employee’s commute at the Promotion Date
(Westport, CT home to Trumbull, CT office), except that relocation to the
Corporation’s New York City, NY office shall not give rise to Good Reason under
this clause. This paragraph is applicable only to a termination which occurs
prior to a Change in Control or following the two-year period immediately
subsequent to a Change in Control as provided in Section 6(h) hereof. For
purposes of this Agreement, “Good Reason” shall not exist until after the
Employee has given the Corporation notice of the applicable event within 90
days of such event and which is not remedied within 30 days after receipt of
written notice from the Employee specifically delineating such claimed event
and setting forth Employee’s intention to terminate employment if not remedied;
provided, that if the specified event cannot reasonably be remedied within such
30-day period and the Corporation commences reasonable steps within such 30-day
period to remedy such event and diligently continues such steps thereafter
until a remedy is effected, such event shall not constitute “Good Reason”
provided that such event is remedied within 60 days after receipt of such
written notice.

                  (e) Retirement. For purposes of this Agreement, “Retirement” shall mean
termination of the Employee’s employment by either the Employee (other than for
Good Reason) or the Corporation (other than for Cause) on or after the
Employee’s normal retirement age under the terms of the Corporation’s pension
plan (or, any other tax-qualified plan, if no pension plan exists); provided,
that, following a Change in Control such normal retirement age may not be
reduced for purposes of this Agreement without the consent of the Employee.

6

 

                  (f) Date of Termination. For purposes of this Agreement, “Date of
Termination” means (1) the effective date on which the Employee’s employment by
the Corporation terminates as specified in a Notice of Termination by the
Corporation or the Employee, as the case may be, or (2) if the Employee’s
employment terminates by reason of death, the date of death of the Employee.
Notwithstanding the previous sentence, (i) if the Employee’s employment is
terminated for Disability (as defined in Section 6(b)), then such Date of
Termination shall be no earlier than thirty (30) days following the date on
which a Notice of Termination is received.

                  (g) Payment Upon Termination. Upon any termination of employment
hereunder, the Corporation shall pay the Employee, within ten (10) days
following his Date of Termination, a lump sum cash amount equal to the sum of
(i) the Employee’s unpaid Base Salary through the Date of Termination, (ii) any
bonus payments which have become payable (other than deferred amounts), to the
extent not theretofore paid, (iii) any reimbursable expenses, accrued or owing
the Employee hereunder and (iv) any accrued, unused select time up to eighty
(80) hours.

                  (h) Termination Without Cause, For Good Reason or Upon Failure to Renew.
In addition to the payments set forth in Section 6(g) hereof, in the event that
the Employee’s employment with the Corporation terminates either prior to a
Change in Control or following the two-year period immediately subsequent to a
Change in Control (including as a result of a notice of non-renewal of the Term
by the Corporation provided during such two-year period), in each case as a
result of (i) a termination by the Employee for Good Reason (as defined in
Section 6(d) hereof), (ii) a termination by the Corporation without Cause
(other than for Retirement or Disability) or (iii) notice by the Corporation of
non-renewal of the Term (other than for Retirement), then the Corporation shall
pay to the Employee, in twenty-four (24) equal monthly installments in
conformity with the Corporation’s normal payroll periods, an amount (the
“Termination Payment”) equal to the sum of (i) two (2) times the Employee’s
annual Base Salary at the Employee’s Date of Termination, and (ii) two (2)
times the annual performance bonus earned by the Employee from the Corporation
and its subsidiaries in respect of the fiscal year immediately preceding the
Employee’s Date of Termination, which annual

7

 

performance bonus, for this purpose, shall be deemed to be no less than
$700,000 (“Bonus Amount”). The Employee will also be eligible for the same
level of medical and dental benefits (as well as reimbursement for the personal
life and disability insurance policies referred to in Section 5(e) hereunder)
for twelve months following the Date of Termination.

         7.     Termination of Employment Following a Change in Control.

                  (a) Change in Control Defined. For purposes of this Agreement, a “Change
in Control” shall be deemed to have taken place if:

		
	 	         (i) any “person” (as defined below) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Securities Exchange Act of
1934 (the “Exchange Act”)), directly or indirectly, of securities of the
Corporation representing 30% or more of the total voting power
represented by the Corporation’s then outstanding voting securities;

		
	 	         (ii) a change in the composition of the Board occurs, as a result of
which fewer than two-thirds (2/3) of the incumbent directors are
directors who either (A) had been directors of the Corporation on the
“look-back date” (as defined below) or (B) were elected, or nominated for
election, to the Board with the affirmative votes of at least a majority
of the directors who had been directors of the Corporation on the
“look-back date” and who were still in office at the time of the election
or nomination;

		
	 	         (iii) the stockholders of the Corporation approve a merger or
consolidation of the Corporation with any other corporation, other than a
merger or consolidation which would result in the voting securities of
the Corporation outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity) at least 80% of the total
voting power represented by the voting securities of the Corporation or
such surviving entity outstanding immediately after such merger or
consolidation; or

8

 

		
	 	         (iv) the stockholders of the Corporation approve (A) a plan of
complete liquidation of the Corporation or (B) an agreement for the sale
or disposition by the Corporation of all or substantially all of the
Corporation’s assets.

	 	 	 	For purposes of paragraph (a)(i), the term “person” shall have the same
meaning as when used in sections 13(d) and 14(d) of the Exchange Act, but
shall exclude (1) a trustee or other fiduciary holding securities under
an employee benefit plan of the Corporation or of a parent or subsidiary
of the Corporation or (2) a corporation owned directly or indirectly by
the stockholders of the Corporation in substantially the same proportions
as their ownership of the common stock of the Corporation. For purposes
of paragraph (a)(ii), the term “look-back date” shall mean the later of
(A) the date twenty-four (24) months prior to the change in the
composition of the Board and (B) the Promotion Date. Any other provision
of this Section 7(a) notwithstanding, the term “Change in Control” shall
not include either of the following events, if undertaken at the election
of the Corporation:

	 	(x)	 	a transaction, the
sole purpose of which is to change the state of
the Corporation’s incorporation; or
	 
	 	(y)	 	a transaction, the
result of which is to sell all or substantially
all of the assets of the Corporation to another
corporation or entity (the “surviving entity”);
provided that the voting power represented by
the surviving entity’s securities (or other
equity interests) is owned directly or
indirectly by the stockholders of the
Corporation immediately following such
transaction in substantially the same
proportions as their ownership of the voting
power represented by the Corporation’s common
stock immediately preceding such transaction;
and

9

 

	 	 	 	provided, further, that the surviving entity
expressly assumes this Agreement.

                  Notwithstanding anything in this Agreement to the contrary, if the
Employee’s employment terminates prior to a Change in Control, and the Employee
reasonably demonstrates that such termination was at the request or suggestion
of a third party who has indicated an intention or taken steps reasonably
calculated to effect a Change in Control (a “Third Party”), then for all
purposes of this Agreement, the date of a Change in Control shall mean the date
immediately prior to the date of such termination of employment.

                  (b) Cause. During the two-year period following a Change in Control,
“Cause” shall mean (i) the willful and continued failure of the Employee to
substantially perform his duties with the Corporation (other than any such
failure resulting from the Employee’s incapacity due to physical or mental
illness or any such failure subsequent to the Employee being delivered a Notice
of Termination without Cause by the Corporation or delivering a notice of
termination for Good Reason to the Corporation) after a written demand for
substantial performance is delivered to the Employee by the Board which
specifically identifies the manner in which the Board believes that the
Employee has not substantially performed the Employee’s duties and giving the
Employee such time to cure, as it, in its reasonable business judgment, deems
appropriate, or (ii) the willful engaging by the Employee in illegal conduct or
gross misconduct which is demonstrably and materially injurious to the
Corporation or its subsidiaries. For purposes of this paragraph (b), no act or
failure to act by the Employee shall be considered “willful” unless done or
omitted to be done by the Employee in bad faith and without reasonable belief
that the Employee’s action or omission was in the best interests of the
Corporation or its affiliates. Any act, or failure to act, based upon authority
given pursuant to a resolution duly adopted by the Board, based upon the advice
of counsel for the Corporation, shall be conclusively presumed to be done, or
omitted to be done, by the Employee in good faith and in the best interests of
the Corporation. Cause shall not exist unless and until the Corporation has
delivered to the Employee a copy of a resolution duly adopted by two-thirds
(2/3) of the entire Board at a meeting of the Board called and

10

 

held for such purpose (after reasonable notice to the Employee and an
opportunity for the Employee, together with counsel, to be heard before the
Board), finding that in the good faith opinion of the Board an event set forth
in clause (i) or (ii) has occurred and specifying the particulars thereof in
detail. For purposes of Board approval with respect thereto, the Employee shall
abstain from acting on matters pertaining to this Section 7(b) and shall not be
counted as a Board member for purposes of the two-thirds (2/3) requirement.
Following a Change in Control, the Corporation must notify the Employee of any
event constituting Cause within ninety (90) days following the Corporation’s
knowledge of its existence or such event shall not constitute Cause under this
Agreement.

                  (c) Good Reason. During the two-year period following a Change in
Control, “Good Reason” shall mean, without the Employee’s express written
consent, the occurrence of any of the following events:

		
	 	         (1) the assignment to the Employee of any duties inconsistent with
the Employee’s title, position, status, reporting relationships,
authority, duties or responsibilities as contemplated by Section 1, or
any other action by the Corporation which results in a diminution in such
title, position, status, reporting relationships, authority, duties or
responsibilities (including, without limitation, the Employee not being
the Chief Executive Officer of or, subject to the limitation set forth in
Section 6(d)(i), not being nominated to the board of the surviving entity
(as referred to in Sections 7(a)(iii) and 7(a)(y)) or, if the voting
securities of the surviving entity are not publicly traded, then of the
ultimate parent corporation whose securities are publicly traded), other
than an isolated, insubstantial and inadvertent action not taken in bad
faith and which is remedied by the Corporation promptly after receipt of
notice thereof given by the Employee;

		
	 	         (2) a reduction by the Corporation in the Employee’s rate of annual
Base Salary or annual target bonus opportunity (including any adverse
change in the formula for such annual bonus target) as in effect
immediately prior to such Change in Control or as the same may be
increased from time to time thereafter;

		
	 	         (3) any requirement of the Corporation that the Employee (i) be
based in

11

 

		
	 	an office that increases the Employee’s commute thirty (30) or more
miles from the Employee’s commute at the Promotion Date (Westport, CT
home to Trumbull, CT office) or (ii) travel on the Corporation’s business
to an extent substantially greater than the travel obligations of the
Employee immediately prior to such Change in Control;

		
	 	         (4) the failure of the Corporation to (i) continue in effect any
employee benefit plan, compensation plan, welfare benefit plan or
material fringe benefit plan in which the Employee is participating
immediately prior to such Change in Control, or the taking of any action
by the Corporation which would adversely affect the Employee’s
participation in or reduce the Employee’s benefits under any such plan,
unless the Employee is permitted to participate in other plans providing
the Employee with substantially equivalent aggregate benefits (at
substantially comparable cost with respect to welfare benefit plans), or
(ii) provide the Employee with paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Corporation and
its affiliated companies as in effect for the Employee immediately prior
to such Change in Control; or

		
	 	         (5) the failure of the Corporation to obtain the assumption
agreement from any successor as contemplated in Section 11(a) hereof.

                  Any event or condition described in Section 7(c)(1) through (4) which
occurs prior to a Change in Control, but with respect to which the Employee is
able to reasonably demonstrate was at the request or suggestion of a Third
Party, shall constitute Good Reason following a Change in Control for purposes
of this Agreement (as if a Change in Control had occurred immediately prior to
the occurrence of such event or condition) notwithstanding that it occurred
prior to the Change in Control. An isolated, insubstantial and inadvertent
action taken in good faith and which is remedied by the Corporation promptly
after receipt of notice thereof given by the Employee shall not constitute Good
Reason. The Employee’s right to terminate employment for Good Reason shall not
be affected by the Employee’s incapacity due to mental or physical

12

 

illness and the Employee’s continued employment shall not constitute
consent to, or a waiver of rights with respect to, any event or condition
constituting Good Reason. Following a Change in Control, the Employee must
provide Notice of Termination of employment within ninety (90) days of the
Employee’s knowledge of an event constituting Good Reason or such event shall
not constitute Good Reason under this Agreement, and the provisions of the last
sentence of Section 6(d) will apply.

                  (d) In addition to the payments set forth in Section 6(g) above, in the
event the Employee’s employment with the Corporation terminates within two (2)
years following a Change in Control either (i) by the Corporation without Cause
(other than for Retirement or Disability) or (ii) by the Employee for Good
Reason, then the Corporation shall (1) pay to the Employee, within ten (10)
days following the Employee’s Date of Termination, a lump sum cash amount equal
to two and one-half (2.5) times the sum of (i) the Employee’s Base Salary at
the Employee’s Date of Termination (unless a Good Reason event was a reduction
in the Employee’s Base Salary described in Section 7(c)(2), in which case Base
Salary at Date of Termination shall be deemed to be the Employee’s Base Salary
immediately prior to such reduction) and (ii) the highest annual performance
bonus earned by the Employee during the two (2) year period immediately
preceding the Employee’s Date of Termination, provided, however, that in no
event will the amount determined pursuant to this Clause (1) be less than the
Termination Payment defined in Section 6(h)), (2) cause the options granted to
the Employee prior to and during the Term to become fully vested and
immediately exercisable, and (3) continue to provide, for a period of two and
one-half (2.5) years following the Date of Termination, the Employee (and the
Employee’s dependents if applicable) with the same level of medical and dental
benefits (as well as reimbursement for personal life and disability insurance
policies referred to in Section 5(e) hereunder) upon the substantially same
terms and conditions (including cost of coverage to the Employee) as existed
immediately prior to the Employee’s Date of Termination (or, if more favorable
to the Employee, as such benefits and terms and conditions existed immediately
prior to the Change in Control); provided, that if the Employee cannot continue
to participate in the Corporation’s plans providing such benefits, the
Corporation shall otherwise provide

13

 

such benefits on the same after-tax basis as if continued participation
had been permitted. Notwithstanding the foregoing, in the event the Employee
becomes reemployed with another employer and becomes eligible to receive
medical and dental benefits from such employer, the benefits described herein
shall be secondary to such benefits during the period of the Employee’s
eligibility, but only to the extent that the Corporation reimburses the
Employee for any increased cost and provides any additional benefits necessary
to give the Employee the benefit hereunder.

                  (e) Anything in this Agreement to the contrary notwithstanding, in the
event it shall be determined that any payment or distribution, or any
acceleration of vesting of any benefit or award, by the Corporation or its
affiliated companies to or for the benefit of the Employee (whether paid or
payable, distributed or distributable or accelerated or subject to acceleration
pursuant to the terms of this Agreement or otherwise, but determined without
regard to any additional payments required under this Section 7(e)) (a
“Payment”) would be subject to the excise tax imposed by Section 4999 of the
Code, or any interest or penalties are incurred by the Employee with respect to
such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the “Excise Tax”), then
the Employee shall be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by the Employee of all taxes
imposed upon the Gross-Up Payment and any interest or penalties imposed with
respect to such taxes, the Employee retains an amount of the Gross-Up Payment
equal to the sum of (x) the Excise Tax imposed upon the Payments and (y) the
product of any deductions disallowed because of the inclusion of the Gross-Up
Payment in the Employee’s adjusted gross income and the highest applicable
marginal rate of federal income taxation for the calendar year in which the
Gross-Up Payment is to be made. For purposes of determining the amount of the
Gross-Up Payment, the Employee shall be deemed to (A) pay federal income taxes
at the highest marginal rates of federal income taxation for the calendar year
in which the Gross-Up Payment is to be made, (B) pay applicable state and local
income taxes at the highest marginal rate of taxation for the calendar year in
which the Gross-Up Payment is to be made, net of the maximum reduction in
federal income taxes
which could be

14

 

obtained from deduction of such state and local taxes and
(C) have otherwise allowable deductions for federal income tax purposes at
least equal to those which could be disallowed because of the inclusion of the
Gross-Up Payment in the Employee’s adjusted gross income. The payment of a
Gross-Up Payment under this Section 7(e) shall in no event be conditioned upon
the Employee’s termination of employment or the receipt of severance benefits
under this Agreement.

                  (ii) Subject to the provisions of Section 7(e)(i), all determinations
required to be made under this Section 7(e), including whether and when a
Gross-Up Payment is required and the amount of such Gross-Up Payment and the
assumptions to be utilized in arriving at such determination, shall be made by
the public accounting firm that is retained by the Corporation as of the date
immediately prior to the Change in Control (the “Accounting Firm”) which shall
provide detailed supporting calculations both to the Corporation and the
Employee within fifteen (15) business days of the receipt of notice from the
Corporation or the Employee that there has been a Payment, or such earlier time
as is requested by the Corporation (collectively, the “Determination”). In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change in Control, the Employee may
appoint another nationally recognized public accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder). All fees and expenses of the Accounting
Firm shall be borne solely by the Corporation and the Corporation shall enter
into any agreement requested by the Accounting Firm in connection with the
performance of its services hereunder. The Gross-Up Payment under this Section
7(e) with respect to any Payment shall be made no later than thirty (30) days
following such Payment. If the Accounting Firm determines that no Excise Tax is
payable by the Employee, it shall furnish the Employee with a written opinion
to such effect, and to the effect that failure to report the Excise Tax, if
any, on the Employee’s applicable federal income tax return will not result in
the imposition of a negligence or similar penalty. The Determination by the
Accounting Firm shall be binding upon the Corporation and the Employee. As a
result of the uncertainty in the application of Section 4999 of the Code at the
time of the Determination, it is possible

15

 

that Gross-Up Payments which will not have been made by the Corporation
should have been made (“Underpayment”) or Gross-Up Payments are made by the
Corporation which should not have been made (“Overpayment”), consistent with
the calculations required to be made hereunder. In the event that the Employee
thereafter is required to make payment of any additional Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has
occurred and any such Underpayment (together with interest at the rate provided
in Section 1274(b)(2)(B) of the Code) shall be promptly paid by the Corporation
to or for the benefit of the Employee. In the event the amount of the Gross-Up
Payment exceeds the amount necessary to reimburse the Employee for his Excise
Tax, the Accounting Firm shall determine the amount of the Overpayment that has
been made and any such Overpayment (together with interest at the rate provided
in Section 1274(b)(2) of the Code) shall be promptly paid by the Employee to or
for the benefit of the Corporation. The Employee shall cooperate, to the extent
his expenses are reimbursed by the Corporation, with any reasonable requests by
the Corporation in connection with any contests or disputes with the Internal
Revenue Service in connection with the Excise Tax.

         8.     Covenants Not to Compete; Confidentiality.

                  (a) The Employee covenants that following his Date of Termination, unless
such termination is within the two-year period following a Change in Control,
he shall not, for a period of one (1) year following such Date of Termination:

		
	 	         (1) engage or be interested, whether alone or together with or on
behalf or through any other person, firm, association, trust, venture, or
corporation, whether as sole proprietor, partner, shareholder, agent,
officer, director, employee, adviser, consultant, trustee, beneficiary or
otherwise, in any business principally and directly engaged in by the
Corporation and its subsidiaries, including but not limited to, the
operation of health maintenance organizations or the health insurance
business; which business operates in a geographic area in which, at the
time of such termination of employment, the Corporation is conducting
business or plans to conduct business (a “Competing Business”);

16

 

		
	 	         (2) assist others in conducting any Competing Business;

		
	 	         (3) directly or indirectly recruit or induce or hire any person who
is an employee of the Corporation or any of its subsidiaries, or solicit
any of the Corporation’s customers, clients or providers; or

		
	 	         (4) own any capital stock or any other securities of, or have any
other direct or indirect interest in, any entity which owns or operates a
Competing Business, other than the ownership of (i) less than five
percent (5%) of any such entity whose stock is listed on a national
securities exchange or traded in the over-the-counter market and which is
not controlled by the Employee or any affiliate of the Employee or (ii)
any limited partnership interest in such an entity.

                  (b) The Employee hereby agrees and covenants, as a condition of the
Corporation’s performance of its obligations arising from this Agreement, that,
both during and after the Term, except as may be necessary to perform the
Employee’s duties for the benefit of the Corporation, he will not, directly or
indirectly, use or disclose any material proprietary or confidential
information, whether written or oral, received or gained by him in the course
of his employment by the Corporation or of his duties with the Corporation
(“Confidential Information”). Confidential Information does not include
information that is or becomes widely known outside the Corporation through no
act or failure to act by the Employee. The rights set forth in this Agreement
are in addition to any rights the Corporation may have under the common law or
applicable statutes relating to the protection of trade secrets and
confidential information.

                  (c) In the event that the Employee breaches or threatens to breach any of
the terms of this Section 8, the Employee acknowledges that the Corporation’s
remedy at law would be inadequate and that the Corporation shall be entitled to
an injunction restraining the Employee from committing or continuing such
breach. The Employee therefore consents to the entry of a restraining order,
preliminary injunction or other court order to enforce those paragraphs and
expressly waives any security that might otherwise be required in connection
with such relief. The Employee also agrees that any request for

17

 

such relief by the Corporation shall be in addition and without prejudice
to any claim for monetary damages which the Corporation might seek.

         9.     Payment Obligation Absolute; No Mitigation. Except with respect to
continued welfare benefits under Section 7(d), the Corporation’s obligation to
pay the Employee the compensation and other benefits provided herein shall be
absolute and unconditional and shall not be affected by any circumstances,
including, without limitation, any set-off, counterclaim, recoupment, defense
or other right which the Corporation may have against the Employee. All amounts
payable by the Corporation hereunder shall be paid without notice or demand.
The Employee shall not be required to mitigate amounts payable pursuant to this
Agreement by seeking other employment or otherwise, (other than as provided in
Section 7(d)) with respect to certain welfare benefits.

         10.     Notice.

                  (a) For purposes of this Agreement, all notices and other communications
required or permitted hereunder shall be in writing and shall be deemed to have
been duly given when delivered or five (5) days after deposit in the United
States mail, certified and return receipt requested, postage prepaid, addressed
as follows:

	 	 	 
	 	 	
If to the Employee:
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
Charles G. Berg

10 Blind Brook Road

Westport, CT 06880

	
	
	
	

	 	 	 
	
	
	
	

	 	 	
If to the Corporation:
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
Oxford Health Plans, Inc.

48 Monroe Turnpike

Trumbull, CT 06611

Attention: Secretary

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

18

 

                  (b) A written notice (a “Notice of Termination”) of the Employee’s Date of
Termination by the Corporation or the Employee, as the case may be, to the
other, shall (i) indicate the specific termination provision in this Agreement
relied upon, (ii) to the extent applicable, set forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of the
Employee’s employment under the provision so indicated and (iii) specify the
Date of Termination. The failure by the Employee or the Corporation to set
forth in such notice any particular fact or circumstance which contributes to a
showing of Good Reason or Cause shall not waive any right of the Employee or
the Corporation hereunder or preclude the Employee or the Corporation from
asserting such fact or circumstance in enforcing the Employee’s or the
Corporation’s rights hereunder.

         11.     General Provisions.

                  (a) No Assignments. This Agreement is personal to each of the parties
hereto. Neither party may assign or delegate any of his or its rights or
obligations hereunder without first obtaining the written consent of the other
party; provided, however, that the Corporation agrees that concurrently with
any merger or sale of assets which would constitute a Change in Control
hereunder, it will cause any successor or transferee unconditionally to assume,
by written instrument delivered to the Employee (or his beneficiary or estate),
all of the obligations of the Corporation hereunder. Failure of the Corporation
to obtain such assumption prior to the effectiveness of any such merger or sale
of assets, shall be a breach of this Agreement and shall constitute Good Reason
hereunder and shall entitle the Employee to compensation and other benefits
from the Corporation in the same amount and on the same terms to which the
Employee would be entitled hereunder if the Employee’s employment were
terminated following a Change in Control under Section 7(d) hereof. For
purposes of implementing the foregoing, the date on which any such merger or
sale of assets becomes effective shall be deemed the date Good Reason occurs,
and shall be the Date of Termination if requested by the Employee.
Notwithstanding the foregoing, this Agreement shall inure to the benefit of and
be enforceable by the Employee’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If the
Employee

19

 

shall die while any amounts would be payable to the Employee hereunder had
the Employee continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to such
person or persons appointed in writing by the Employee to receive such amounts
or, if no person is so appointed, to the Employee’s estate.

                  (b) Indemnification of Employee. (i) In the event the employment of the
Employee is terminated by the Corporation without Cause or by the Employee for
Good Reason hereof and the Corporation fails to make timely payment of the
amounts then owed to the Employee under this Agreement, the Employee shall be
entitled to indemnification for all reasonable costs (as such costs are
incurred), including attorneys’ fees and disbursements, incurred by the
Employee in taking action to collect such amounts or otherwise to enforce this
Agreement, plus interest on all such amounts at the annual rate of one percent
above the prime rate (defined as the base rate on corporate loans at large U.S.
money center commercial banks as published by The Wall Street Journal),
compounded monthly, for the period from the time payment is due until payment
is made to the Employee. The Employee shall also be entitled to interest (at
the rate described in the immediately preceding sentence) on such reasonable
costs incurred from the date the Employee delivers a receipt to the Corporation
for such costs until the date they are reimbursed to the Employee. Such
indemnification and interest shall be in addition to all rights to which the
Employee is otherwise entitled under this Agreement.

                  (ii) To the extent permitted under applicable law, the Corporation agrees
that if the Employee is made a party, or is threatened to be made a party, to
any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (a “Proceeding”), by reason of the
fact that he is or was a director, officer or employee of the Corporation or is
or was serving at the request of the Corporation as a director, officer,
member, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, including service with respect to employee benefit
plans, whether or not the basis of such Proceeding is the Employee’s alleged
action in an official capacity while serving as a director, officer, member,
employee or agent, the Employee shall be indemnified and held harmless by the

20

 

Corporation to the fullest extent permitted or authorized by the Corporation’s
certificate of incorporation or bylaws or, if greater, by the laws of the State
of Delaware, against all costs, expenses, liabilities and losses (including,
without limitation, attorney’s fees, judgments, fines, ERISA excise taxes or
penalties and amounts paid or to be paid in settlement) reasonably incurred or
suffered by the Employee in connection therewith (including, without
limitation, investigating, preparing for and defending any such Proceeding),
and such indemnification shall continue as to the Employee even if he has
ceased to be a director, officer, member, employee or agent of the Corporation
or other entity and shall inure to the benefit of the Employee’s heirs,
executors and administrators. The Corporation shall advance to the Employee
all reasonable costs and expenses incurred by him in connection with a
Proceeding within 20 days after receipt by the Corporation of a written request
for such advance. Such request shall include an undertaking by the Employee to
repay the amount of such advance if it shall ultimately be determined that he
is not entitled to be indemnified against such costs and expenses. Without in
any way limiting the foregoing or the scope or generality thereof, the
Corporation agrees to indemnify and hold harmless the Employee against all
costs, expenses, liabilities and losses reasonably incurred or suffered by the
Employee by reason of, arising from or relating to any written statement of the
Employee that (1) is required to be, and is, filed with the Securities and
Exchange Commission regarding the accuracy of reports or statements filed by
the Corporation with such Commission pursuant to Federal securities laws or (2)
is made to another officer or employee of the Corporation to support such a
required filed statement of such other officer or employee, provided that, in
making (and, if applicable, filing) such written statement, the Employee acted
in good faith and in a manner the Employee reasonably believed to be in and not
opposed to the best interests of the Corporation, and, with respect to any
criminal action or proceeding, had no reasonable cause to believe that the
Employee’s conduct was unlawful.

                  (c) Entire Agreement; Amendments or Additions; Action by Board. This
Agreement contains the entire agreement between the parties hereto with respect
to the transactions contemplated hereby and supersedes all prior oral and
written agreements,

21

 

memoranda, understandings and undertakings between the parties hereto
relating to the subject matter hereof. No amendments or additions to this
Agreement shall be binding unless in writing and signed by both parties.

                  (d) Governing Law. This Agreement shall be governed by the laws of the
State of Connecticut as to all matters, including, but not limited to, matters
of validity, construction, effect and practice.

                  (e) Arbitration. Except with respect to injunctive relief under Section
8(b) hereof, any dispute or controversy under this Agreement shall be settled
exclusively by arbitration in Norwalk, Connecticut by three (3) arbitrators in
accordance with the rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitration award in any court having
jurisdiction. The Corporation shall bear all costs and expenses arising in
connection with any arbitration proceeding pursuant to this Section 11(e).

                  (f) Employment with Subsidiaries. Employment with the Corporation for
purposes of this Agreement shall include employment with any subsidiary of the
Corporation.

                  (g) Severability. The provisions of this Agreement shall be deemed
severable and the invalidity or unenforceability of any provision shall not
affect the validity or enforceability of the other provisions hereof.

                  (h) Section Headings. The section headings used in this Agreement are
included solely for convenience and shall not affect, or be used in connection
with, the interpretation of this Agreement.

                  (i) Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original and all of which
together shall constitute one and the same instrument.

22

 

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

	 	 	 	 	 
	 	 	OXFORD HEALTH PLANS, INC.
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:
	 	/s/ ROBERT B. MILLIGAN, JR.
	 	 	 	 	

	 	 	 	 	Robert B. Milligan, Jr.
	
	
	
	

	 	 	 	 	 
	
	
	
	

	Dated:  September 30, 2002	 	 	 	/s/ CHARLES G. BERG
	 	 	 	 	

	 	 	 	 	Charles G. Berg

23

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