I have also been hitting this both in Ubuntu 11.04 and Mint 11. Window
manager doesn't seem to matter because it happened in Unity, "Classic"
and Fluxbox.

gnome-terminal and rxvt did not exhibit this behavior for me.

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which is subscribed to xterm in Ubuntu.
https://bugs.launchpad.net/bugs/778439

Title:
  Typing "exit" in xterm kills X session

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https://bugs.launchpad.net/ubuntu/+source/xterm/+bug/778439/+subscriptions

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