Document:

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                                                                   EXHIBIT 10(d)

                                 $450,000,000

                     UNITED RENTALS (NORTH AMERICA), INC.

                         10 3/4% Senior Notes Due 2008

                         REGISTRATION RIGHTS AGREEMENT
                         -----------------------------

                                                                  April 20, 2001

Credit Suisse First Boston Corporation
Goldman, Sachs & Co.
Salomon Smith Barney Inc.
Banc of America Securities LLC
Deutsche Banc Alex. Brown Inc.
Chase Securities Inc.
Fleet Securities, Inc.
Credit Lyonnais Securities (USA) Inc.
First Union Securities, Inc.
Scotia Capital (USA) Inc.
c/o Credit Suisse First Boston Corporation
 Eleven Madison Avenue
 New York, New York 10010-3629

Dear Sirs:

     United Rentals (North America), Inc., a Delaware corporation (the
"Company"), proposes to issue and sell to the initial purchasers, for whom
Credit Suisse First Boston Corporation, Goldman, Sachs & Co. and Salomon Smith
Barney Inc. are joint book-running managers (collectively, the "Initial
Purchasers"), upon the terms set forth in a purchase agreement of even date
herewith (the "Purchase Agreement"), $450,000,000 aggregate principal amount of
its 10 3/4% Senior Notes due 2008 (the "Notes") to be guaranteed (the
"Guaranties") by the entities listed herein (the "Guarantors"). The Notes and
the Guaranties are together referred to as the "Initial Securities". The Initial
Securities will be issued pursuant to an Indenture, dated as of April 20, 2001
(the "Indenture"), among the Company, the Guarantors named therein and The Bank
of New York, as trustee (the "Trustee"). As an inducement to the Initial
Purchasers to enter into the Purchase Agreement, the Company agrees with the
Initial Purchasers, for the benefit of the Initial Purchasers and the holders of
the Securities (as defined below) (collectively the "Holders"), as follows:

     1.   Registered Exchange Offer. Unless not permitted by applicable law, the
Company shall prepare and, not later than 90 days (such 90th day being a "Filing
Deadline") after the date on which the Initial Purchasers purchase the Initial
Securities pursuant to the Purchase Agreement (the "Closing Date"), file with
the Securities and Exchange Commission (the "Commission") a registration
statement (the "Exchange Offer Registration Statement") on an appropriate form
under the Securities Act of 1933, as amended (the "Securities Act"), with
respect to a proposed offer (the "Registered Exchange Offer") to the Holders of
Transfer Restricted Securities (as defined in Section 6 hereof), who are not
prohibited by any law or policy of the Commission from participating in the
Registered Exchange Offer, to issue and deliver to such Holders, in exchange for
the Initial Securities, a like aggregate principal amount of debt securities of
the Company issued under the Indenture, identical in all material respects to
the Initial Securities and registered under the Securities Act (the "Exchange
Securities"). The Company shall use its best efforts to (i) cause such Exchange
Offer Registration Statement to become effective under the
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                                                                               2

Securities Act within 150 days after the Closing Date (such 150th day being an
"Effectiveness Deadline") and (ii) keep the Exchange Offer Registration
Statement effective for not less than 30 days (or longer, if required by
applicable law) after the date notice of the Registered Exchange Offer is mailed
to the Holders (such period being called the "Exchange Offer Registration
Period").

     If the Company commences the Registered Exchange Offer, the Company will be
required to consummate the Registered Exchange Offer no later than 180 days
after the Closing Date (such 180th day being the "Consummation Deadline").

     Following the declaration of the effectiveness of the Exchange Offer
Registration Statement, the Company shall, as soon as practicable, commence the
Registered Exchange Offer, it being the objective of such Registered Exchange
Offer to enable each Holder of Transfer Restricted Securities electing to
exchange the Initial Securities for Exchange Securities (assuming that such
Holder is not an affiliate of the Company within the meaning of the Securities
Act, acquires the Exchange Securities in the ordinary course of such Holder's
business and has no arrangements with any person to participate in the
distribution of the Exchange Securities and is not prohibited by any law or
policy of the Commission from participating in the Registered Exchange Offer) to
trade such Exchange Securities from and after their receipt without any
limitations or restrictions under the Securities Act and without material
restrictions under the securities laws of the several states of the United
States.

     The Company acknowledges that, pursuant to current interpretations by the
Commission's staff of Section 5 of the Securities Act, in the absence of an
applicable exemption therefrom, (i) each Holder which is a broker-dealer
electing to exchange Initial Securities, acquired for its own account as a
result of market making activities or other trading activities, for Exchange
Securities (an "Exchanging Dealer"), is required to deliver a prospectus
containing the information set forth in (a) Annex A hereto on the cover, (b)
Annex B hereto in the "Exchange Offer Procedures" section and the "Purpose of
the Exchange Offer" section, and (c) Annex C hereto in the "Plan of
Distribution" section of such prospectus in connection with a sale of any such
Exchange Securities received by such Exchanging Dealer pursuant to the
Registered Exchange Offer and (ii) an Initial Purchaser that elects to sell
Securities (as defined below) acquired in exchange for Initial Securities
constituting any portion of an unsold allotment, is required to deliver a
prospectus containing the information required by Items 507 or 508 of Regulation
S-K under the Securities Act, as applicable, in connection with such sale.

     The Company shall use its best efforts to keep the Exchange Offer
Registration Statement effective and to amend and supplement the prospectus
contained therein, in order to permit such prospectus to be lawfully delivered
by all persons subject to the prospectus delivery requirements of the Securities
Act for a period of time commencing on the day the Registered Exchange Offer is
consummated and continuing for 90 days (or such shorter period during which
Exchanging Dealers and other persons, if any, are required by law to deliver
such prospectus); provided, however, that such period may be extended pursuant
                  --------  -------
to Section 3(j) below.

     If, upon consummation of the Registered Exchange Offer, any Initial
Purchaser holds Initial Securities acquired by it as part of its initial
distribution, the Company, simultaneously with the delivery of the Exchange
Securities pursuant to the Registered Exchange Offer, shall issue and deliver to
such Initial Purchaser upon the written request of such Initial Purchaser, in
exchange (the "Private Exchange") for the Initial Securities held by such
Initial Purchaser, a like principal amount of debt securities of the Company
issued under the Indenture and identical in all material respects to the Initial
Securities (the "Private Exchange Securities").  The Initial Securities, the
Exchange Securities and the Private Exchange Securities are herein collectively
called the "Securities".

     In connection with the Registered Exchange Offer, the Company shall:

          (a)  mail to each Holder a copy of the prospectus forming part of the
     Exchange Offer Registration Statement, together with an appropriate letter
     of transmittal and related documents;
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          (b)  keep the Registered Exchange Offer open for not less than 30 days
     (or longer, if required by applicable law) after the date notice thereof is
     mailed to the Holders;

          (c)  utilize the services of a depositary for the Registered Exchange
     Offer with an address in the Borough of Manhattan, The City of New York,
     which may be the Trustee or an affiliate of the Trustee;

          (d)  permit Holders to withdraw tendered Securities at any time prior
     to the close of business, New York time, on the last business day on which
     the Registered Exchange Offer shall remain open; and

          (e)  otherwise comply with all applicable laws.

     As soon as practicable after the close of the Registered Exchange Offer or
the Private Exchange, as the case may be, the Company shall:

          (x)  accept for exchange all the Securities validly tendered and not
     withdrawn pursuant to the Registered Exchange Offer and the Private
     Exchange;

          (y)  deliver, or cause to be delivered, to the Trustee for cancelation
     all the Initial Securities so accepted for exchange; and

          (z)  cause the Trustee to authenticate and deliver promptly to each
     Holder of the Initial Securities, Exchange Securities or Private Exchange
     Securities, as the case may be, equal in principal amount to the Initial
     Securities of such Holder so accepted for exchange.

     The Indenture will provide that the Exchange Securities will not be subject
to the transfer restrictions set forth in the Indenture and that all the
Securities will vote and consent together on all matters as one class and that
none of the Securities will have the right to vote or consent as a class
separate from one another on any matter.

     Interest on each Exchange Security and Private Exchange Security issued
pursuant to the Registered Exchange Offer and in the Private Exchange will
accrue from the last interest payment date on which interest was paid on the
Initial Securities surrendered in exchange therefor or, if no interest has been
paid on the Initial Securities, from the date of original issue of the Initial
Securities (the "Original Issue Date").

     Each Holder participating in the Registered Exchange Offer shall be
required to represent to the Company that at the time of the consummation of the
Registered Exchange Offer (i) any Exchange Securities received by such Holder
will be acquired in the ordinary course of business, (ii) such Holder will have
no arrangements or understanding with any person to participate in the
distribution of the Securities or the Exchange Securities within the meaning of
the Securities Act, (iii) such Holder is not an "affiliate," as defined in Rule
405 of the Securities Act, of the Company or if it is an affiliate, such Holder
will comply with the registration and prospectus delivery requirements of the
Securities Act to the extent applicable, (iv) if such Holder is not a broker-
dealer, that it is not engaged in, and does not intend to engage in, the
distribution of the Exchange Securities and (v) if such Holder is a broker-
dealer, that it will receive Exchange Securities for its own account in exchange
for Initial Securities that were acquired as a result of market-making
activities or other trading activities and that it will be required to
acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities.

     Notwithstanding any other provisions hereof, the Company will ensure that
(i) any Exchange Offer Registration Statement and any amendment thereto and any
prospectus forming part thereof and any supplement thereto complies in all
material respects with the Securities Act and the rules and regulations
thereunder, (ii) any Exchange Offer Registration Statement and any amendment
thereto does not, when it
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becomes effective, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading and (iii) any prospectus forming part of any
Exchange Offer Registration Statement, and any supplement to such prospectus,
does not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

     2.   Shelf Registration.  If, (i) because of any change in law or in
applicable interpretations thereof by the staff of the Commission, the Company
is not permitted to effect a Registered Exchange Offer, as contemplated by
Section 1 hereof, (ii) the Registered Exchange Offer is not consummated by the
180th day after the Closing Date, (iii) any Initial Purchaser so requests with
respect to the Initial Securities (or the Private Exchange Securities) not
eligible to be exchanged for Exchange Securities in the Registered Exchange
Offer and held by it following consummation of the Registered Exchange Offer or
(iv) any Holder (other than an Exchanging Dealer) is not eligible to participate
in the Registered Exchange Offer or, in the case of any Holder (other than an
Exchanging Dealer) that participates in the Registered Exchange Offer, such
Holder does not receive freely tradeable Exchange Securities on the date of the
exchange and any such Holder so requests, the Company shall take the following
actions (the date on which any of the conditions described in the foregoing
clauses (i) through (iv) occur, including in the case of clauses (iii) or (iv)
the receipt of the required notice, being a "Trigger Date"):

            (a)  The Company shall, on or prior to 90 days after the Trigger
     Date (such 90th day being a "Filing Deadline"), use its best efforts to
     file with the Commission and thereafter use its best efforts to cause to be
     declared effective no later than 150 days after the Trigger Date (such
     150th day being an "Effectiveness Deadline") a registration statement (the
     "Shelf Registration Statement" and, together with the Exchange Offer
     Registration Statement, a "Registration Statement") on an appropriate form
     under the Securities Act relating to the offer and sale of the Transfer
     Restricted Securities by the Holders thereof from time to time in
     accordance with the methods of distribution set forth in the Shelf
     Registration Statement and Rule 415 under the Securities Act (hereinafter,
     the "Shelf Registration"); provided that if the obligation to file the
     Shelf Registration Statement arises because the Exchange Offer has not been
     consummated within 180 days after the Original Issue Date, then the Company
     will use its best efforts to file the Shelf Registration Statement on or
     prior to the 30th day after such filing obligation arises; provided,
                                                                --------
     however, that no Holder (other than an Initial Purchaser) shall be entitled
     -------
     to have the Securities held by it covered by such Shelf Registration
     Statement unless such Holder agrees in writing to be bound by all the
     provisions of this Agreement applicable to such Holder.

            (b)  The Company shall use its best efforts to keep the Shelf
     Registration Statement continuously effective in order to permit the
     prospectus included therein to be lawfully delivered by the Holders of the
     relevant Securities for a period of two years (or for such longer period if
     extended pursuant to Section 3(j) below) from the date of its effectiveness
     or such shorter period that will terminate when all the Securities covered
     by the Shelf Registration Statement (i) have been sold pursuant thereto or
     (ii) are no longer restricted securities (as defined in Rule 144 under the
     Securities Act, or any successor rule thereof) (such period being the
     "Shelf Registration Period").  The Company shall be deemed not to have used
     its best efforts to keep the Shelf Registration Statement effective during
     the requisite period if it voluntarily takes any action that would result
     in Holders of Securities covered thereby not being able to offer and sell
     such Securities during that period, unless such action is required by
     applicable law.

            (c)  Notwithstanding any other provisions of this Agreement to the
     contrary, the Company use its best efforts to ensure that the Shelf
     Registration Statement and the related prospectus and any amendment or
     supplement thereto, as of the effective date of the Shelf Registration
     Statement, amendment or supplement, (i) comply in all material respects
     with the applicable requirements of the Securities Act and the rules and
     regulations thereunder; (ii) the
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     Shelf Registration Statement and any amendment thereto does not, when it
     becomes effective, contain an untrue statement of a material fact or omit
     to state a material fact required to be stated therein or necessary to make
     the statements therein not misleading; and (iii) any prospectus forming
     part of any Shelf Registration Statement does not contain any untrue
     statement of a material fact or omit to state a material fact required to
     be stated therein or necessary in order to make the statements therein, in
     light of the circumstances under which they were made, not misleading.

     3.   Registration Procedures. In connection with any Shelf Registration
contemplated by Section 2 hereof and, to the extent applicable, any Registered
Exchange Offer contemplated by Section 1 hereof, the following provisions shall
apply:

            (a)  The Company shall (i) furnish to each Initial Purchaser, prior
     to the filing thereof with the Commission, a copy of the Registration
     Statement and each amendment thereof and each supplement, if any, to the
     prospectus included therein and, in the event that an Initial Purchaser
     (with respect to any portion of an unsold allotment from the original
     offering) is participating in the Registered Exchange Offer or the Shelf
     Registration Statement, the Company shall use its best efforts to reflect
     in each such document, when so filed with the Commission, such comments as
     such Initial Purchaser reasonably may propose; (ii) include the information
     set forth in Annex A hereto on the cover, in Annex B hereto in the
     "Exchange Offer Procedures" section and the "Purpose of the Exchange Offer"
     section and in Annex C hereto in the "Plan of Distribution" section of the
     prospectus forming a part of the Exchange Offer Registration Statement and
     include the information set forth in Annex D hereto in the Letter of
     Transmittal delivered pursuant to the Registered Exchange Offer; (iii) if
     requested by an Initial Purchaser, include the information required by
     Items 507 or 508 of Regulation S-K under the Securities Act, as applicable,
     in the prospectus forming a part of the Exchange Offer Registration
     Statement; (iv) include within the prospectus contained in the Exchange
     Offer Registration Statement a section entitled "Plan of Distribution,"
     reasonably acceptable to the Initial Purchasers, which shall contain a
     summary statement of the positions taken or policies made by the staff of
     the Commission with respect to the potential "underwriter" status of any
     broker-dealer that is the beneficial owner (as defined in Rule 13d-3 under
     the Securities Exchange Act of 1934, as amended (the "Exchange Act")) of
     Exchange Securities received by such broker-dealer in the Registered
     Exchange Offer (a "Participating Broker-Dealer"), whether such positions or
     policies have been publicly disseminated by the staff of the Commission or
     such positions or policies, in the reasonable judgment of the Initial
     Purchasers based upon advice of counsel (which may be in-house counsel),
     represent the prevailing views of the staff of the Commission; and (v) in
     the case of a Shelf Registration Statement, include the names of the
     Holders who propose to sell Securities pursuant to the Shelf Registration
     Statement as selling securityholders.

            (b)  After the Registration Statement has been declared effective,
     the Company shall give written notice to the Initial Purchasers, the
     Holders of the Securities and any Participating Broker-Dealer from whom the
     Company has received prior written notice that it will be a Participating
     Broker-Dealer in the Registered Exchange Offer of the occurrence of any of
     the following that occurs after the Registration Statement has been
     declared effective (which notice pursuant to clauses (ii)-(v) hereof shall
     be accompanied by an instruction to suspend the use of the prospectus until
     the requisite changes have been made):

                    (i)  when the Registration Statement or any amendment
            thereto has been filed with the Commission and when the Registration
            Statement or any post-effective amendment thereto has become
            effective, provided that this clause (i) shall not apply with
            respect to regular filings of any document or report under the
            Exchange Act, at any time following the effectiveness of the
            applicable Registration Statement hereunder, where such filing is
            made as part of the Company's periodic disclosure obligations under
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                                                                               6

            Sections 13 and 15 of the Exchange Act;

                 (ii)   of any request by the Commission or any state securities
            authority for amendments or supplements to the Registration
            Statement or the prospectus included therein or for additional
            information;

                 (iii)  of the issuance by the Commission or any state
            securities authority of any stop order suspending the effectiveness
            of the Registration Statement or the initiation of any proceedings
            for that purpose;

                 (iv)   of the receipt by the Company or its legal counsel of
            any notification with respect to the suspension of the qualification
            of the Securities for sale in any jurisdiction or the initiation or
            threatening of any proceeding for such purpose;

                 (v)    of the happening of any event that requires the Company
            to make changes in the Registration Statement or the prospectus in
            order that the Registration Statement or the prospectus do not
            contain an untrue statement of a material fact nor omit to state a
            material fact required to be stated therein or necessary to make the
            statements therein (in the case of the prospectus, in light of the
            circumstances under which they were made) not misleading; and

                 (vi)   of any determination by the Company that a post-
            effective amendment to a Registration Statement would be
            appropriate.

            (c) The Company shall make every reasonable effort to obtain the
     withdrawal at the earliest possible time, of any order suspending the
     effectiveness of the Registration Statement.

            (d) The Company shall furnish to each Holder of Securities included
     within the coverage of the Shelf Registration, without charge, at least one
     copy of the Shelf Registration Statement and any post-effective amendment
     thereto, including financial statements and schedules, and, if the Holder
     so requests in writing, all exhibits thereto (including those, if any,
     incorporated by reference).

            (e) The Company shall deliver to each Exchanging Dealer and each
     Initial Purchaser, and to any other Holder who so requests, without charge,
     at least one copy of the Exchange Offer Registration Statement and any
     post-effective amendment thereto, including financial statements and
     schedules, and, if any Initial Purchaser or any such Holder requests, all
     exhibits thereto (including those incorporated by reference).

            (f) The Company shall, during the Shelf Registration Period, deliver
     to each Holder of Securities included within the coverage of the Shelf
     Registration, without charge, as many copies of the prospectus (including
     each preliminary prospectus) included in the Shelf Registration Statement
     and any amendment or supplement thereto as such person may reasonably
     request. The Company consents, subject to the provisions of this Agreement,
     to the use of the prospectus or any amendment or supplement thereto by each
     of the selling Holders of the Securities in connection with the offering
     and sale of the Securities covered by the prospectus, or any amendment or
     supplement thereto, included in the Shelf Registration Statement.

            (g) The Company shall deliver to each Initial Purchaser, any
     Exchanging Dealer, any Participating Broker-Dealer and such other persons
     required to deliver a prospectus following the Registered Exchange Offer,
     without charge, as many copies of the final prospectus included in the
     Exchange Offer Registration Statement and any amendment or supplement
     thereto as such persons may reasonably request.  The Company consents,
     subject to the provisions of this Agreement, to
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                                                                               7

     the use of the prospectus or any amendment or supplement thereto by any
     Initial Purchaser, if necessary, any Participating Broker-Dealer and such
     other persons required to deliver a prospectus following the Registered
     Exchange Offer in connection with the offering and sale of the Exchange
     Securities covered by the prospectus, or any amendment or supplement
     thereto, included in such Exchange Offer Registration Statement.

          (h)  Prior to any public offering of the Securities pursuant to any
     Registration Statement the Company shall use its reasonable best efforts to
     register or qualify or cooperate with the Holders of the Securities
     included therein and their respective counsel in connection with the
     registration or qualification of the Securities for offer and sale under
     the securities or "blue sky" laws of such states of the United States as
     any Holder of the Securities reasonably requests in writing and do any and
     all other acts or things necessary or advisable to enable the offer and
     sale in such jurisdictions of the Securities covered by such Registration
     Statement; provided, however, that the Company shall not be required to (i)
                --------  -------
     qualify generally to do business in any jurisdiction where it is not then
     so qualified or (ii) take any action which would subject it to general
     service of process or to taxation in any jurisdiction where it is not then
     so subject.

          (i)  The Company shall cooperate with the Holders of the Securities to
     facilitate the timely preparation and delivery of certificates representing
     the Securities to be sold pursuant to any Registration Statement free of
     any restrictive legends and in such denominations and registered in such
     names as the Holders may request a reasonable period of time prior to sales
     of the Securities pursuant to such Registration Statement.

          (j)  Upon the occurrence of any event contemplated by paragraphs (ii)
     through (v) of Section 3(b) above during the period for which the Company
     is required to maintain an effective Registration Statement, the Company
     shall use its best efforts to prepare and file a post-effective amendment
     to the Registration Statement or a supplement to the related prospectus and
     any other required document so that, as thereafter delivered to Holders of
     the Securities or purchasers of Securities, the prospectus will not contain
     an untrue statement of a material fact or omit to state any material fact
     required to be stated therein or necessary to make the statements therein,
     in light of the circumstances under which they were made, not misleading.
     The Company hereby agrees to notify the Initial Purchasers, the Holders of
     the Securities and any known Participating Broker-Dealer in accordance with
     paragraphs (ii) through (v) of Section 3(b) above to suspend the use of the
     prospectus until the requisite changes to the prospectus have been made,
     then the Initial Purchasers, the Holders of the Securities and any such
     Participating Broker-Dealers shall suspend use of such prospectus, and the
     period of effectiveness of the Shelf Registration Statement provided for in
     Section 2(b) above and the Exchange Offer Registration Statement provided
     for in Section 1 above shall each be extended by the number of days from
     and including the date of the giving of such notice to and including the
     date when the Initial Purchasers, the Holders of the Securities and any
     known Participating Broker-Dealer shall have received such amended or
     supplemented prospectus pursuant to this Section 3(j).

          (k)  Not later than the effective date of the applicable Registration
     Statement, the Company will provide a CUSIP number for the Initial
     Securities, the Exchange Securities or the Private Exchange Securities, as
     the case may be, and provide the applicable trustee with printed
     certificates for the Initial Securities, the Exchange Securities or the
     Private Exchange Securities, as the case may be, in a form eligible for
     deposit with The Depository Trust Company.

          (l)  The Company will use its best efforts to comply with all rules
     and regulations of the Commission to the extent and so long as they are
     applicable to the Registered Exchange Offer or the Shelf Registration and
     will make generally available to its security holders (or otherwise provide
     in accordance with Section 11(a) of the Securities Act) an earnings
     statement satisfying the provisions of Section 11(a) of the Securities Act,
     no later than 45 days after the end of a 12-month period (or 90 days, if
     such period is a fiscal year) beginning with the first month of the
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                                                                               8

     Company's first fiscal quarter commencing after the effective date of the
     Registration Statement, which statement shall cover such 12-month period.

          (m)  The Company shall cause the Indenture to be qualified under the
     Trust Indenture Act of 1939, as amended, in a timely manner and containing
     such changes, if any, as shall be necessary for such qualification. In the
     event that such qualification would require the appointment of a new
     trustee under the Indenture, the Company shall appoint a new trustee
     thereunder pursuant to the applicable provisions of the Indenture.

          (n)  The Company may require each Holder of Securities to be sold
     pursuant to the Shelf Registration Statement to furnish to the Company such
     information regarding the Holder and the distribution of the Securities as
     the Company may from time to time reasonably require for inclusion in the
     Shelf Registration Statement, and the Company may exclude from such
     registration the Securities of any Holder that unreasonably fails to
     furnish such information within a reasonable time after receiving such
     request.

          (o)  Subject to Section 8(c), the Company shall enter into such
     customary agreements (including, if requested, an underwriting agreement in
     customary form) and take all such other action, if any, as the Holders of a
     majority of the aggregate principal amount of Securities covered by such
     Registration Statement  (the "Majority Holders") shall reasonably request
     in order to facilitate the disposition of the Securities pursuant to any
     Shelf Registration.

          (p)   For a reasonable period prior to the filing of a Shelf
     Registration Statement and prior to the execution of any underwriting or
     similar agreement make available for inspection by counsel selected by the
     Majority Holders ("Holders' Counsel") and any underwriters participating in
     an underwritten offering pursuant to a Shelf Registration Statement and not
     more than one accounting firm retained by the Majority Holders or
     underwriters, all financial and other records, pertinent corporate
     documents and properties of the Company reasonably requested by any such
     persons, and cause the respective officers, directors, employees, and any
     other agents of the Company to supply all information reasonably requested
     by any such persons, in connection with a Registration Statement; provided
     that any such records, documents, properties and such information that is
     designated in writing by the Company, in good faith, as confidential at the
     time of delivery of such records, documents, properties or information
     shall be kept confidential by any such persons and shall be used only in
     connection with such Registration Statement, unless disclosure thereof is
     made in connection with a court proceeding or required by law, or such
     information has become available (not in violation of this agreement) to
     the public generally or through a third party without an accompanying
     obligation of confidentiality, and the Company shall be entitled to request
     that such persons sign a confidentiality agreement to the foregoing effect.

          (q)  Subject to Section 8(c), in the case of any Shelf Registration,
     the Company, if requested by counsel to the Majority Holders of the
     Securities covered thereby, shall cause (i) its counsel to deliver an
     opinion and updates thereof relating to the Securities in customary form
     addressed to such Holders and the managing underwriters, if any, thereof
     and dated, in the case of the initial opinion, the effective date of such
     Shelf Registration Statement in form, substance and scope customarily
     covered in opinions delivered in connection with shelf registrations;
     provided, however, that in the case of an underwritten offering such
     opinions shall also be addressed to the underwriters and also cover the
     matters customarily covered in opinions delivered by issuers in connection
     with primary underwritten offerings of debt securities comparable to the
     Securities (such additional opinions to be agreed upon by the underwriters
     and the Company, such agreement not to be unreasonably withheld), (ii) its
     officers to execute and deliver all customary documents and certificates
     and updates thereof requested by any underwriters of the applicable
     Securities and (iii) its independent public accountants [and the
     independent public accountants
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                                                                               9

     with respect to any other entity for which financial information is
     provided in the Shelf Registration Statement] to provide to the selling
     Holders of the applicable Securities and any underwriter therefor a comfort
     letter in customary form and covering matters of the type customarily
     covered in comfort letters in connection with shelf registrations;
     provided, however, that in the case of an underwritten offering such
     letters shall also be addressed to the underwriters and cover the matters
     customarily covered in "comfort letters" delivered by issuers in connection
     with primary underwritten offerings of debt securities comparable to the
     Securities (such letters to be agreed upon by the underwriters and such
     accountants, such agreement not to be unreasonably withheld); subject to
     receipt of appropriate documentation as contemplated, and only if
     permitted, by Statement of Auditing Standards No. 72.

          (r)  In the case of the Registered Exchange Offer, if requested by any
     Initial Purchaser or any known Participating Broker-Dealer that is subject
     to the prospectus delivery requirements of the Securities Act, and if a
     Registration Statement is required to be filed under the Securities Act,
     the Company shall cause (i) its counsel to deliver to such Initial
     Purchaser or such Participating Broker-Dealer a signed opinion in the form
     set forth in Section 6(d ) of the Purchase Agreement with such changes as
     are customary in connection with the preparation of a Registration
     Statement and (ii) its independent public accountants and the independent
     public accountants with respect to any other entity for which financial
     information is provided in the Registration Statement to deliver to such
     Initial Purchaser or such Participating Broker-Dealer a comfort letter, in
     customary form, meeting the requirements as to the substance thereof as set
     forth in Section 6(a) and (b) of the Purchase Agreement, with appropriate
     date changes.

          (s)  If a Registered Exchange Offer or a Private Exchange is to be
     consummated, upon delivery of the Initial Securities by Holders to the
     Company (or to such other Person as directed by the Company) in exchange
     for the Exchange Securities or the Private Exchange Securities, as the case
     may be, the Company shall mark, or caused to be marked, on the Initial
     Securities so exchanged that such Initial Securities are being canceled in
     exchange for the Exchange Securities or the Private Exchange Securities, as
     the case may be; in no event shall the Initial Securities be marked as paid
     or otherwise satisfied.

          (t)  The Company will use its best efforts to (a) if the Initial
     Securities have been rated prior to the initial sale of such Initial
     Securities, confirm such ratings will apply to the Securities covered by a
     Registration Statement, or (b) if the Initial Securities were not
     previously rated, cause the Securities covered by a Registration Statement
     to be rated with the appropriate rating agencies, if so requested by the
     Majority Holders, or by the managing underwriters, if any.

          (u)  In the event that any broker-dealer registered under the Exchange
     Act shall underwrite any Securities or participate as a member of an
     underwriting syndicate or selling group or "assist in the distribution"
     (within the meaning of the Conduct Rules (the "Rules") of the National
     Association of Securities Dealers, Inc. ("NASD")) thereof, whether as a
     Holder of such Securities or as an underwriter, a placement or sales agent
     or a broker or dealer in respect thereof, or otherwise, the Company will
     assist such broker-dealer in complying with the requirements of such Rules,
     including, without limitation, by (i) if such Rules, including Rule 2720,
     shall so require, engaging a "qualified independent underwriter" (as
     defined in Rule 2720) to participate in the preparation of the Registration
     Statement relating to such Securities, to exercise usual standards of due
     diligence in respect thereto and, if any portion of the offering
     contemplated by such Registration Statement is an underwritten offering or
     is made through a placement or sales agent, to recommend the yield of such
     Securities, (ii) indemnifying any such qualified independent underwriter to
     the extent of the indemnification of underwriters provided in Section 5
     hereof and (iii) providing such information to such broker-dealer as may be
     required in order for such broker-dealer to comply with the requirements of
     the Rules.
<PAGE>

                                                                              10

          (v) The Company shall use its best efforts to take all other steps
     necessary to effect the registration of the Securities covered by a
     Registration Statement contemplated hereby.

                4.  Registration Expenses. Subject to Section 8(c), all expenses
     incident to the Company's performance of and compliance with this Agreement
     will be borne by the Company, regardless of whether a Registration
     Statement is ever filed or becomes effective, including without limitation;

                      (i)     all registration and filing fees and expenses;

                      (ii)    all fees and expenses of compliance with federal
                securities and state "blue sky" or securities laws;

                      (iii)   all expenses of printing (including printing
                certificates for the Securities to be issued in the Registered
                Exchange Offer and the Private Exchange and printing of
                Prospectuses), messenger and delivery services and telephone;

                      (iv)    all rating agency fees;

                      (v)     all fees and disbursements of counsel for the
                Company;

                      (vi)    all application and filing fees in connection with
                listing the Exchange Securities on a national securities
                exchange or automated quotation system pursuant to the
                requirements hereof; and

                      (vii)   all fees and disbursements of independent
                certified public accountants of the Company (including the
                expenses of any special audit and comfort letters required by or
                incident to such performance).

                      (viii)  all fees and disbursements relating to the
                qualification of the Indenture under applicable securities laws,
                (ix) all premiums and other costs of policies of insurance
                maintained by the Company against liabilities arising out of the
                public offering of the Transfer Restricted Securities being
                registered (x) all fees and expenses of a "qualified independent
                underwriter" as defined by Conduct Rule 2720 of the NASD, if
                required by the NASD rules, in connection with the offering of
                the Exchange Securities or Transfer Restricted Securities in an
                underwritten offering, (xi) the reasonable fees and expenses of
                the Trustee, including its counsel, and any escrow agent or
                custodian. Notwithstanding the foregoing, the holders of the
                Exchange Securities or Transfer Restricted Securities being
                registered shall pay all agency or brokerage fees and
                commissions and underwriting discounts and commissions
                attributable to the sale of Transfer Restricted Securities and
                the fees and disbursements of any counsel or other advisors or
                experts retained by such holders (severally or jointly)
                (excluding advisors or other experts retained by the Company, as
                aforesaid); provided, however, that in the case of a Shelf
                Registration Statement under Section 2 and Section 3 hereof, the
                Majority Holders may, in each case, if they so elect, select
                Holders' Counsel to represent them (which may be counsel to the
                Initial Purchasers), in which event the aforementioned
                registration expenses shall include the reasonable fees and
                disbursements of such counsel up to a maximum of $80,000.

     The Company will bear its internal expenses (including, without limitation,
all salaries and expenses of its officers and employees performing legal or
accounting duties), the expenses of
<PAGE>

                                                                              11

any annual audit and the fees and expenses of any person, including special
experts, retained by the Company.

          5.  Indemnification.  (a)  Each of the Company and the Guarantors
named in the Schedule hereto agree to indemnify and hold harmless the Initial
Purchasers, each Holder of the Securities, any Participating Broker-Dealer, each
underwriter who participates in an offering of Transfer Restricted Securities
and each person, if any, who controls such Initial Purchaser, Holder,
Participating Broker-Dealer or underwriter within the meaning of the Securities
Act or the Exchange Act (each Initial Purchaser, Holder, any Participating
Broker-Dealer, underwriter and such controlling persons are referred to
collectively as the "Indemnified Parties") from and against any losses, claims,
damages or liabilities, joint or several, or any actions in respect thereof
(including, but not limited to, any losses, claims, damages, liabilities or
actions relating to purchases and sales of the Securities) to which each
Indemnified Party may become subject under the Securities Act, the Exchange Act
or otherwise, insofar as such losses, claims, damages, liabilities or actions
arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in a Registration Statement or in any amendment or
supplement thereto, or arise out of, or are based upon, the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, or such losses, claims,
damages, liabilities or actions arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in prospectus
or in any amendment or supplement thereto or in any preliminary prospectus
relating to a Shelf Registration, or arise out of, or are based upon, the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, and shall reimburse,
as incurred, the Indemnified Parties for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action in respect thereof; provided, however, that
                                                       --------  -------
(i) the Company shall not be liable in any such case to the extent that such
loss, claim, damage or liability arises out of or is based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus relating to a Shelf Registration in reliance
upon and in conformity with written information pertaining to such Initial
Purchaser, Holder, Participating Broker-Dealer or underwriter and furnished to
the Company by or on behalf of such Initial Purchaser, Holder, Participating
Broker-Dealer or underwriter specifically for inclusion therein and (ii) with
respect to any untrue statement or omission or alleged untrue statement or
omission made in any preliminary prospectus relating to a Shelf Registration
Statement shall not inure to the benefit of any Initial Purchaser, Holder,
Participating Broker-Dealer or underwriter from whom the person asserting any
such losses, claims, damages or liabilities purchased the Securities concerned,
to the extent that a prospectus relating to such Securities was required to be
delivered by such Initial Purchaser, Holder, Participating Broker-Dealer or
underwriter under the Securities Act in connection with such purchase and any
such loss, claim, damage or liability of such Initial Purchaser, Holder,
Participating Broker-Dealer or underwriter results from the fact that there was
not sent or given to such person, at or prior to the written confirmation of the
sale of such Securities to such person, a copy of the final prospectus if the
Company had previously furnished copies thereof to such Initial Purchaser,
Holder, Participating Broker-Dealer or underwriter; provided further, however,
                                                    -------- -------  -------
that this indemnity agreement will be in addition to any liability which the
Company may otherwise have to such Indemnified Party.

          (b)  Each Holder of the Securities, severally and not jointly, will
indemnify and hold harmless the Company, the Initial Purchasers, each
underwriter who participates in an offering of Transfer Restricted Securities
and the other selling Holders and each of their respective directors and
officers (including each officer of the Company who signed the Registration
Statement) and each person, if any, who controls the Company within the meaning
of the Securities Act or the Exchange Act from and against any losses, claims,
damages or liabilities or
<PAGE>

                                                                              12

any actions in respect thereof, to which the Company or any such controlling
person may become subject under the Securities Act, the Exchange Act or
otherwise, insofar as such losses, claims, damages, liabilities or actions arise
out of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in a Registration Statement or in any amendment or
supplement thereto, or arise out of, or are based upon, the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, or such losses, claims,
damages, liabilities or actions arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in prospectus
or in any amendment or supplement thereto or in any preliminary prospectus
relating to a Shelf Registration, or arise out of, or are based upon, the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, but in each case only
to the extent that the untrue statement or omission or alleged untrue statement
or omission was made in reliance upon and in conformity with written information
pertaining to such Holder and furnished to the Company by or on behalf of such
Holder specifically for inclusion therein; and, subject to the limitation set
forth immediately preceding this clause, shall reimburse, as incurred, the
Company for any legal or other expenses reasonably incurred by the Company or
any such controlling person in connection with investigating or defending any
loss, claim, damage, liability or action in respect thereof. This indemnity
agreement will be in addition to any liability which such Holder may otherwise
have to the Company or any of its controlling persons.

          (c)  Promptly after receipt by an indemnified party under this Section
5 of notice of the commencement of any action or proceeding (including a
governmental investigation), such indemnified party will, if a claim in respect
thereof is to be made against the indemnifying party under this Section 5,
notify the indemnifying party of the commencement thereof; but the omission so
to notify the indemnifying party will not, in any event, relieve the
indemnifying party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraph (a) or (b) above.  In case any
such action is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein and, to the extent that it may wish, jointly
with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel reasonably satisfactory to such indemnified party (who
shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof the
indemnifying party will not be liable to such indemnified party under this
Section 5 for any legal or other expenses, other than reasonable costs of
investigation, subsequently incurred by such indemnified party in connection
with the defense thereof. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement of any pending or
threatened action in respect of which any indemnified party is or could have
been a party and indemnity could have been sought hereunder by such indemnified
party unless such settlement includes an unconditional release of such
indemnified party from all liability on any claims that are the subject matter
of such action, and does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.  The
indemnifying party will not be liable for the costs and expenses of any
settlement of such action effected by such indemnified party without the consent
of the indemnifying party, which consent shall not be unreasonably withheld.

          (d)  If the indemnification provided for in this Section 5 is
unavailable or insufficient to hold harmless an indemnified party under
subsections (a) or (b) above, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to in
subsection (a) or (b) above in such proportion as is appropriate to reflect the
relative fault of the indemnifying party or parties on the one hand and the
indemnified party on the other in connection with the statements or omissions
that resulted in such losses, claims, damages or liabilities (or actions in
respect thereof) as well as any other relevant equitable considerations.
<PAGE>

                                                                              13

The relative fault of the parties shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Company on the one hand or such Initial Purchaser,
Holder, Participating Broker-Dealer or underwriter or such other indemnified
party, as the case may be, on the other, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The amount paid by an indemnified party as a result of
the losses, claims, damages or liabilities referred to in the first sentence of
this subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any action or claim which is the subject of this subsection (d).
Notwithstanding any other provision of this Section 5(d), the Holders of the
Securities shall not be required to contribute any amount in excess of the
amount by which the net proceeds received by such Holders from the sale of the
Securities pursuant to a Registration Statement exceeds the amount of damages
which such Holders have otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11 (f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. For purposes of this paragraph (d),
each person, if any, who controls such indemnified party within the meaning of
the Securities Act or the Exchange Act shall have the same rights to
contribution as such indemnified party and each person, if any, who controls the
Company within the meaning of the Securities Act or the Exchange Act shall have
the same rights to contribution as the Company.

          (e) The agreements contained in this Section 5 shall survive the sale
of the Securities pursuant to a Registration Statement and shall remain in full
force and effect, regardless of any termination or cancelation of this Agreement
or any investigation made by or on behalf of any indemnified party.

          6.  Additional Interest Under Certain Circumstances. (a)  Additional
interest (the "Additional Interest") with respect to the Securities shall be
assessed as follows if any of the following events occur (each such event in
clauses (i) through (iv) below being herein called a "Registration Default"):

          (i)    any Registration Statement required by this Agreement is not
                 filed with the Commission on or prior to the applicable Filing
                 Deadline;

          (ii)   any Registration Statement required by this Agreement is not
                 declared effective by the Commission on or prior to the
                 applicable Effectiveness Deadline;

          (iii)  the Registered Exchange Offer has not been consummated on or
                 prior to the Consummation Deadline; or

          (iv)   any Registration Statement required by this Agreement has been
                 declared effective by the Commission but, thereafter during the
                 period during which the Company is required to maintain the
                 effectiveness thereof, (A) such Registration Statement
                 thereafter ceases to be effective or (B) such Registration
                 Statement or the related prospectus ceases to be usable in
                 connection with resales of Transfer Restricted Securities, for
                 a period of 60 days, whether or not consecutive, because either
                 (1) any event occurs as a result of which the related
                 prospectus forming part of such Registration Statement would
                 include any untrue statement of a material fact or omit to
                 state any material fact necessary to make the statements
                 therein in the light of the circumstances under which they were
                 made not misleading, or (2) it shall be necessary to
<PAGE>

                                                                              14

                    amend such Registration Statement or supplement the related
                    prospectus, to comply with the Securities Act or the
                    Exchange Act or the respective rules thereunder.

     Each of the foregoing will constitute a Registration Default whatever the
reason for any such event and whether it is voluntary or involuntary or is
beyond the control of the Company or pursuant to operation of law or as a result
of any action or inaction by the Commission .

               Additional Interest shall accrue on the Specified Securities over
and above the interest set forth in the title of the Securities from and
including the date on which any such Registration Default shall occur to but
excluding the date on which all such Registration Defaults have been cured, at a
rate of 0.25% per annum (the "Additional Interest Rate") for the first 90-day
period immediately following the occurrence of such Registration Default. The
Additional Interest Rate shall increase by an additional 0.25% per annum with
respect to each subsequent 90-day period until all Registration Defaults have
been cured, up to a maximum Additional Interest Rate of 1.0% per annum.

               (b) A Registration Default referred to in Section 6(a)(iv) hereof
shall be deemed not to have occurred and be continuing in relation to a Shelf
Registration Statement, or the related prospectus if (i) such Registration
Default has occurred solely as a result of (x) the filing of a post-effective
amendment to such Shelf Registration Statement to incorporate annual audited
financial information with respect to the Company where such post-effective
amendment is not yet effective and needs to be declared effective to permit
Holders to use the related prospectus or (y) other material events, with respect
to the Company that would need to be described in such Shelf Registration
Statement or the related prospectus and (ii) in the case of clause (y), the
Company is proceeding promptly and in good faith to amend or supplement such
Shelf Registration Statement and related prospectus to describe such events;
provided, however, that in any case if such Registration Default occurs for a
--------  -------
period of 60 days, whether or not consecutive, Additional Interest shall be
payable in accordance with the above paragraph from the day such Registration
Default occurs until such Registration Default is cured.

               (c) Notwithstanding the foregoing, any Registration Default
specified in clause (i), (ii) or (iii) of the preceding section (a) that relates
to the Exchange Offer Registration Statement or the Exchange Offer shall be
deemed cured at such time as the Shelf Registration Statement is declared
effective by the SEC.

               (d) Any amounts of Additional Interest due pursuant to Section
6(a) will be payable in cash on the regular interest payment dates with respect
to the Securities. The amount of Additional Interest will be determined by
multiplying the applicable Additional Interest Rate by the principal amount of
the Securities and further multiplied by a fraction, the numerator of which is
the number of days such Additional Interest Rate was applicable during such
period (determined on the basis of a 360-day year comprised of twelve 30-day
months), and the denominator of which is 360.

               (e) Following the cure of all Registration Defaults the accrual
of additional interest on the Specified Securities will cease and the interest
rate will revert to the original rate; provided, however, that if, after any
such additional interest ceases to accrue, a different event specified in clause
(i), (ii), (iii) or (iv) of the definition of Registration Default above occurs,
such additional interest shall begin to accrue again pursuant to the foregoing
provisions.

               The Company shall notify the Trustee within five business days
after the occurrence of each Registration Default.
<PAGE>

                                                                              15

               The Company shall pay the additional interest due on the
Securities by depositing with the Trustee, in trust, for the benefit of the
Holders thereof, by 12:00 noon, New York City time, on or before the applicable
semi-annual interest payment date for the Securities, immediately available
funds in sums sufficient to pay the additional interest then due. The additional
interest amount due shall be payable on each interest payment date to the record
Holder of Securities entitled to receive the interest payment to be made on such
date as set forth in the Indenture.

               Additional interest pursuant to this Section 6 constitutes
liquidated damages with respect to Registration Defaults and shall be the
exclusive monetary remedy available to the Holders and/or the Initial Purchasers
with respect to any Registration Default.

               (f)  "Specified Securities" means the securities (not including
the Exchange Securities); provided, however, that, if the Registration Default
                          --------  -------
relates solely to a Shelf Registration Statement, then (i) if such Shelf
Registration Statement is required to cover both Securities and Exchange
Securities, the "Specified Securities" shall mean both the Securities and
Exchange Securities and (ii) if such Shelf Registration Statement is required to
cover only Exchange Securities, the "Specified Securities" shall mean only the
Exchange Securities; provided further, however, that if the Registration Default
                     -------- -------  -------
relates to an Exchange Offer Registration Statement that is unavailable for use
during the Participating Broker-Dealer Prospectus Period, the "Specified
Securities" shall mean the Exchange Securities.

               (g)  "Transfer Restricted Securities" means each Initial Security
until (i) the date on which such Security has been exchanged by a person other
than a broker-dealer for a freely transferable Exchange Security in the
Registered Exchange Offer, (ii) following the exchange by a broker-dealer in the
Registered Exchange Offer of an Initial Security for an Exchange Security, the
date on which such Exchange Security is sold to a purchaser who receives from
such broker-dealer on or prior to the date of such sale a copy of the prospectus
contained in the Exchange Offer Registration Statement, (iii) the date on which
such Security has been effectively registered under the Securities Act and
disposed of in accordance with the Shelf Registration Statement, (iv) the date
on which such Security is distributed to the public pursuant to Rule 144 under
the Securities Act or is saleable pursuant to Rule 144(k) under the Securities
Act, (v) the date on which such Security shall have been otherwise transferred
by the Holder thereof and a new Security not bearing a legend restricting
further transfer shall have been delivered by the Issuer and subsequent
disposition of such Security shall not require registration or qualification
under the 1933 Act or any similar state law then in force , or (vi) such
Security ceases to be outstanding.

               7.   Rules 144 and 144A. The Company shall use its best efforts
to file the reports required to be filed by it under the Securities Act and the
Exchange Act in a timely manner and, if at any time the Company is not required
to file such reports, it will, upon the request of any Holder of Securities,
make publicly available other information so long as necessary to permit sales
of their securities pursuant to Rules 144 and 144A. The Company covenants that
it will take such further action as any Holder of Securities may reasonably
request, all to the extent required from time to time to enable such Holder to
sell Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rules 144 and 144A (including the
requirements of Rule 144A(d)(4)). The Company will provide a copy of this
Agreement to prospective purchasers of Initial Securities identified to the
Company by the Initial Purchasers upon request. Upon the request of any Holder
of Initial Securities, the Company shall deliver to such Holder a written
statement as to whether it has complied with such requirements. Notwithstanding
the foregoing, nothing in this Section 7 shall be deemed to require the Company
to register any of its securities pursuant to the Exchange Act.
<PAGE>

                                                                              16

               8.   Underwritten Registrations. (a) If any of the Transfer
Restricted Securities covered by any Shelf Registration are to be sold in an
underwritten offering, the investment banker or investment bankers and manager
or managers that will administer the offering ("Managing Underwriters") will be
selected by the Majority Holders of such Transfer Restricted Securities to be
included in such offering.

               (b)  No person may participate in any underwritten registration
hereunder unless such person (i) agrees to sell such person's Transfer
Restricted Securities on the basis reasonably provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such
arrangements and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements.

               (c)  Notwithstanding anything to the contrary contained herein,
(i) the Company shall not be required to cooperate with an underwritten offering
unless a request for an underwritten offering is made by holders of 33-1/3% of
Transfer Restricted Securities outstanding, (ii) the Company shall not be
obligated to cooperate with more than one underwritten offering pursuant to this
Agreement, (iii) upon receipt of a request to prepare and file an amendment or
supplement to a Registration Statement and Prospectus in connection with an
underwritten offering, the Company may delay the filing of any such amendment or
supplement for up to 120 days if the Company in good faith has a valid business
reason for such delay provided that nothing in this clause (iii) limits the
Company's obligations under Section 1, and (iv) the Company shall not be
required to pay more than an aggregate of $200,000 of registration-related
expenses, in addition to internal expenses of the Company (including, without
limitation, salaries of officers and employees performing legal and accounting
duties) in connection with any such underwritten offering.

               9.   Miscellaneous.

               (a)  Remedies. The Company acknowledges and agrees that any
failure by the Company to comply with its obligations under Section 1 and 2
hereof may result in material irreparable injury to the Initial Purchasers or
the Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, the Initial Purchasers or any Holder may obtain such relief
as may be required to specifically enforce the Company's obligations under
Sections 1 and 2 hereof. The Company further agrees to waive the defense in any
action for specific performance that a remedy at law would be adequate.

               (b)  No Inconsistent Agreements. The Company will not on or after
the date of this Agreement enter into any agreement with respect to its
securities that is inconsistent with the rights granted to the Holders in this
Agreement or otherwise conflicts with the provisions hereof. The rights granted
to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of the Company's securities
under any agreement in effect on the date hereof.

               (c)  Amendments and Waivers. The provisions of this Agreement may
not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, except by the Company and the
written consent of the Majority Holders affected by such amendment,
modification, supplement, waiver or consents.

               (d)  Notices. All notices and other communications provided for
or permitted hereunder shall be made in writing by hand delivery, first-class
mail, facsimile transmission, or air courier which guarantees overnight
delivery:
<PAGE>

                                                                              17

                    (1)  if to a Holder of the Securities, at the most current
address given by such Holder to the Company.

                    (2)  if to the Initial Purchasers;

                               Credit Suisse First Boston Corporation
                               Eleven Madison Avenue
                               New York, NY 10010-3629
                               Fax No.: (212) 325-8278
                               Attention: Transactions Advisory Group

               with a copy to:

                               Cravath, Swaine & Moore
                               825 Eighth Avenue
                               New York, NY 10019
                               Attention: Kris F. Heinzelman

                    (3)  if to the Company, at its address as follows:

                               United Rentals, Inc.
                               Five Greenwich Office Park
                               Greenwich, Ct 06830
                               Attention: Chief Financial Officer

               with a copy to:

                               Weil, Gotshal & Manges LLP
                               767 Fifth Avenue
                               New York, NY 10153
                               Attention: Malcolm Landau

                               Ehrenreich Eilenberg & Krause, LLP
                               11 E. 44th St., 17th Floor
                               New York, NY 10017
                               Attention: Joseph Ehrenreich

               All such notices and communications shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; three
business days after being deposited in the mail, postage prepaid, if mailed;
when receipt is acknowledged by recipient's facsimile machine operator, if sent
by facsimile transmission; and on the day delivered, if sent by overnight air
courier guaranteeing next day delivery.

               (e)  Third Party Beneficiaries. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right to
enforce such agreements directly to the extent they may deem such enforcement
necessary or advisable to protect their rights or the rights of Holders
hereunder.

               (f)  Successors and Assigns. This Agreement shall be binding upon
the Company and its successors and assigns.

               (g)  Counterparts. This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed
<PAGE>

                                                                              18

shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

               (h)  Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.

               (i)  Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAWS.

               (j)  Severability. If any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal
or unenforceable, the validity, legality and enforceability of any such
provision in every other respect and of the remaining provisions contained
herein shall not be affected or impaired thereby.

               (k)  Securities Held by the Company. Whenever the consent or
approval of Holders of a specified percentage of principal amount of Securities
is required hereunder, Securities held by the Company or its affiliates (other
than subsequent Holders of Securities if such subsequent Holders are deemed to
be affiliates solely by reason of their holdings of such Securities) shall not
be counted in determining whether such consent or approval was given by the
Holders of such required percentage.

<PAGE>

                                                                              19

               If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the Company a counterpart hereof, whereupon
this instrument, along with all counterparts, will become a binding agreement
among the several Initial Purchasers and the Company and the Guarantors in
accordance with its terms.

                                        Very truly yours,

                                        United Rentals (North America), Inc.

                                                by
                                                      _________________________

                                                      Name:
                                                      Title:

                                        FOR THE GUARANTORS LISTED ON
                                        SCHEDULE A

                                                by:   _________________________

                                                      Name: Michael J. Nolan
                                                      Title: Vice President and
                                                      Secretary

          The foregoing Registration
          Rights Agreement is hereby confirmed
          and accepted as of the date first
          above written.

          Credit Suisse First Boston Corporation
          Goldman Sachs & Co.
          Salomon Smith Barney Inc.

          By: Credit Suisse First Boston Corporation

          by
               _____________________________________
               Name:
               Title:
<PAGE>

                                                                         ANNEX A

               Each broker-dealer that receives Exchange Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. The Letter
of Transmittal states that by so acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act. This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Securities received in exchange for Initial Securities
where such Initial Securities were acquired by such broker-dealer as a result of
market-making activities or other trading activities. The Company has agreed
that it will allow Participating Broker-Dealers and any other persons, if any,
with similar prospectus delivery requirements to use the prospectus contained in
the Exchange Offer Registration Statement in connection with the resale of such
Exchange Securities, for a period commencing on the day the Exchange Offer is
consummated and continuing for 90 days (or such shorter period during which
Participating Broker-Dealers are required by law to deliver such prospectus);
provided, however, that if for any day during such period the Company restricts
the use of such prospectus, such period shall be extended on a day-for-day
basis. See "Plan of Distribution."
<PAGE>

                                                                         ANNEX B

               Each broker-dealer that receives Exchange Securities for its own
account in exchange for Initial Securities, where such Initial Securities were
acquired by such broker-dealer as a result of market-making activities or other
trading activities, must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities. See "Plan of
Distribution."
<PAGE>

                                                                         ANNEX C

                             PLAN OF DISTRIBUTION

                    Each broker-dealer that receives Exchange Securities for its
     own account pursuant to the Exchange Offer must acknowledge that it will
     deliver a prospectus in connection with any resale of such Exchange
     Securities. This Prospectus, as it may be amended or supplemented from time
     to time, may be used by a broker-dealer in connection with resales of
     Exchange Securities received in exchange for Initial Securities where such
     Initial Securities were acquired as a result of market-making activities or
     other trading activities. The Company has agreed that it will allow
     Participating Broker-Dealers and any other persons, if any, with similar
     prospectus delivery requirements to use the prospectus contained in the
     Exchange Offer Registration Statement in connection with the resale of such
     Exchange Securities, for a period commencing on the day the Exchange Offer
     is consummated and continuing for 90 days (or such shorter period during
     which Participating Broker-Dealers are required by law to deliver such
     prospectus); provided, however, that if for any day during such period the
     Company restricts the use of such prospectus, such period shall be extended
     on a day-for-day basis. In addition, until , 200 , all dealers effecting
     transactions in the Exchange Securities may be required to deliver a
     prospectus./1/

                    The Company will not receive any proceeds from any sale of
     Exchange Securities by broker-dealers. Exchange Securities received by
     broker-dealers for their own account pursuant to the Exchange Offer may be
     sold from time to time in one or more transactions in the over-the-counter
     market, in negotiated transactions, through the writing of options on the
     Exchange Securities or a combination of such methods of resale, at market
     prices prevailing at the time of resale, at prices related to such
     prevailing market prices or negotiated prices. Any such resale may be made
     directly to purchasers or to or through brokers or dealers who may receive
     compensation in the form of commissions or concessions from any such
     broker-dealer or the purchasers of any such Exchange Securities. Any
     broker-dealer that resells Exchange Securities that were received by it
     for its own account pursuant to the Exchange Offer and any broker or dealer
     that participates in a distribution of such Exchange Securities may be
     deemed to be an "underwriter" within the meaning of the Securities Act and
     any profit on any such resale of Exchange Securities and any commission or
     concessions received by any such persons may be deemed to be underwriting
     compensation under the Securities Act. The Letter of Transmittal states
     that, by acknowledging that it will deliver and by delivering a prospectus,
     a broker-dealer will not be deemed to admit that it is an "underwriter"
     within the meaning of the Securities Act.

                    For a period of 90 days after the Expiration Date the
     Company will promptly send additional copies of this Prospectus and any
     amendment or supplement to this Prospectus to any broker-dealer that
     requests such documents in the Letter of Transmittal. The Company has
     agreed to pay all expenses incident to the Exchange Offer other than
     commissions or concessions of any brokers or dealers and will indemnify the
     Holders of the Securities (including any broker-dealers) against certain
     liabilities, including liabilities under the Securities Act.

____________________

     /1/  In addition, the legend required by Item 502(e) of Regulation S-K will
appear on the back cover page of the Exchange Offer prospectus.  This sentence
may be deleted if such delivery requirements do not apply under Rule 174 of the
Securities Act.
<PAGE>

                                                                         ANNEX D

     [_]  CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10
ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR
SUPPLEMENTS THERETO.

               Name:_______________________________

               Address:____________________________

     If the undersigned is not a broker-dealer, the undersigned represents that
it is not engaged in, and does not intend to engage in, a distribution of
Exchange Securities. If the undersigned is a broker-dealer that will receive
Exchange Securities for its own account in exchange for Initial Securities that
were acquired as a result of market-making activities or other trading
activities, it acknowledges that it will deliver a prospectus in connection with
any resale of such Exchange Securities; however, by so acknowledging and by
delivering a prospectus, the undersigned will not be deemed to admit that it is
an "underwriter" within the meaning of the Securities Act.
<PAGE>

                                                                               1

                                  SCHEDULE A

Guarantor                                                     Place of Formation
---------                                                     ------------------

Advance Barricades and Signing, Inc.                          Florida
All Cities Trailer Exchange, Inc.                             California
Arrow Equipment Company                                       Illinois
Bakersfield Compaction Equipment                              California
BNR Equipment Inc.                                            New York
Coast Line Marking, Inc.                                      Florida
Dealers Service Corporation                                   New Jersey
Equipment Leasing Services, Inc.                              Massachusetts
Flasher Co. of Kansas, Inc.                                   Kansas
Flasher Company of Oklahoma, Inc.                             Oklahoma
Frontenac Equipment, Inc.                                     Missouri
Highway Supply Company, Inc.                                  New Mexico
Jadco Signing, Inc.                                           Florida
Liddell Management Co., Inc.                                  Massachusetts
Paul E. Carlson, Inc. d/b/a Carlson Equipment Company         Minnesota
Paul E. Carlson, Inc. d/b/a Carlson Equipment Company         Minnesota
Rentals Unlimited, Incorporated                               Rhode Island
Rocky Mountain Safety Service, Inc.                           Wyoming
Russ Enterprises, Inc.                                        California
Shoring & Supply Company, Inc.                                Kansas
Thoesen Equipment Inc.                                        Illinois
Traffic Markings South, Inc.                                  Georgia
Traffic Safety Services, Inc.                                 North Dakota
Tri-Mac, Corporation, d/b/a Tri-Mack Barricade Company        Indiana
United Rentals, Inc.                                          Delaware
United Rentals Gulf, Inc.                                     Delaware
        United Equipment Rentals Gulf, L.P.                   Texas
<PAGE>

                                                                               2

Guarantor                                                     Place of Formation
---------                                                     ------------------

     A.S.C. Pavement Markings, Inc.                           Texas
     Highway Safety Service Company                           Texas
     Lectric Safety Lites Co.                                 Texas
     Paige Barricades, Inc.                                   Texas
     United Rentals Highway Technologies, Inc.                Massachusetts
United Rentals Highway Technologies Gulf, Inc.                Delaware
United Rentals Highway Technologies, L.P.                     Texas
United Rentals Northwest, Inc.                                Oregon
United Rentals Southeast, Inc.                                Delaware
United Rentals Southeast, L.P.                                Georgia
Wanamaker Rents, Incorporated                                 California
Warning Safety Lights, Inc.                                   Florida
Warning Safety Lights of Georgia, Inc.                        Florida
West-Co Rental & Sales                                        Colorado
WLI Industries, Inc.                                          Illinois
Safe-T-Flare Services, Inc.                                   Missouri
Warning Lites of Indiana, Inc.                                Indiana
Warning Lites of Iowa, Inc.                                   Iowa
Work Zone, Inc.                                               Louisiana
Work Zone Safety, Inc.                                        Colorado
Woudenberg Enterprises, Inc.                                  Arizona
Highway Rentals, Inc.                                         Nevada
Wynne Systems, Inc.                                           California<PAGE>

                                                                   EXHIBIT 10.38

                              EMPLOYMENT AGREEMENT

                                 BY AND BETWEEN

                             CONSTELLATION 3D, INC.

                                       AND

                                  STEVE HADDAD
<PAGE>

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is entered into effective
as of February 9, 2001 by and between Steve Haddad ("Employee") residing at 2511
Sunny Meadow McKinney, TX 75070 and Constellation 3D, Inc. ("C3D") a Corporation
incorporated in the state of Delaware with its offices at 230 Park Avenue, Suite
453, New York, NY 10169.

         WHEREAS, C3D desires to employ Employee, and Employee desires to become
employed by C3D, on the terms hereinafter set forth.

         NOW, THEREFORE, in consideration for the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

                                    ARTICLE 1

                                     DUTIES

         1.1 During the term of this Agreement, Employee shall be employed by
C3D as Senior Vice President of Business Development and as an officer of C3D
and shall report to the President/Chief Executive Officer of C3D. As such,
Employee shall have duties and responsibilities commensurate with such position,
including, without limitation, the duties and responsibilities set forth in
Exhibit A to this Agreement and such other duties and responsibilities
commensurate with such position as may from time to time be assigned to or
vested in Employee by C3D's Board of Directors, or by the Chairman of the Board
of Directors, or by the Director of Business Development or by the
President/Chief Executive Officer of C3D, all upon the terms and subject to the
conditions set forth herein. Subject to the provisions of Article 5.13, Employee
acknowledges and agrees that Employee may be required, without additional
compensation, to perform services for any business entity controlling,
controlled by, or under common control with C3D by virtue of direct or indirect
beneficial ownership of voting securities of or voting interest in the
controlled entity (such business entities hereinafter individually and
collectively, "Affiliates") and to accept such office or position with any
Affiliate as C3D may reasonably require, including, but not limited to, service
as an officer or director of C3D or any Affiliate, provided that the nature of
such duties is not inconsistent with Employee's position hereunder. Employee
shall comply with all applicable written policies of C3D and Affiliates.
Notwithstanding the foregoing, nothing contained herein shall preclude Employee
from receiving securities in, or from participating in any option plans of, any
Affiliates.

         1.2 During the term of this Agreement, C3D agrees to provide all
reasonable assistance and support to Employee in furtherance of Employee's goals
detailed in Exhibit A to this Agreement. Employee specifically recognizes that
C3D is a development stage company and operates under significant financial
constraints. It shall not be a failure by C3D to provide the requisite support
to Employee, if monetary constraints dictate otherwise.

         1.3 During the term of this Agreement, Employee shall, except during
periods of vacation, sick leave, or other duly authorized leave of absence,
devote the whole of Employee's time, attention, skill, and ability during usual
business hours (and outside those hours on a reasonable basis and when
reasonably necessary to Employee's duties hereunder) to the faithful and
diligent performance of his duties and responsibilities.
<PAGE>

         1.4 During the term of this Agreement, it shall not be a violation of
this Agreement for Employee to serve as an officer or director of a cooperative
apartment, or civic or charitable organization or committee (including, without
limitation, service on a church finance committee), to perform speaking
engagements, or to manage personal passive investments, so long as such
activities (individually or collectively) do not conflict or materially
interfere with the performance of Employee's duties hereunder.

         1.5 Employee's services shall be regularly performed primarily from
Employee's office in Dallas, Texas and at such locations and subject to such
travel requirements as reasonably necessary to the performance of Employee's
duties herein.

                                    ARTICLE 2

                               TERM OF EMPLOYMENT

         The term of this Agreement shall commence on the effective date hereof
and continue for a period of one year subject to earlier termination as
hereinafter provided. At the end of the initial term of this Agreement and each
renewal term of this Agreement, this Agreement shall renew for a period of one
(1) year unless terminated by either party upon providing written notice to the
other party at least thirty days prior to the anniversary of this Agreement. If
at the end of the initial term of this Agreement, C3D does not renew this
Agreement for any reason other than for "Good Cause" as that term is defined
herein, then C3D agrees to pay and Employee shall be entitled to receive 6
months of benefits, perquisites and severance pay of salary, payable in
accordance with C3D's then prevailing practices of its regular payroll. In the
event C3D terminates this Agreement during the initial term or at any time prior
to the two (2) year anniversary of the effective date of this Agreement, for any
reason other than for Good Cause, then C3D agrees to pay and Employee shall be
entitled to receive the remaining term of the Agreement or 6 months, whichever
is longer, of all benefits, perquisites and severance pay of salary, payable in
accordance with C3D's then prevailing practices of its regular payroll. In the
event C3D terminates this Agreement during any term after the two year
anniversary of the effective date of this Agreement, for any reason other than
for Good Cause, then C3D agrees to pay and Employee shall be entitled to receive
for the remainder of the term all benefits, perquisites and severance pay of
salary, payable in accordance with C3D's then prevailing practice of its regular
payroll. In the event C3D fails to pay Employee any and all payments indicated
in this Article 2 when due, Employee shall be entitled to an additional two
months of benefits, perquisites and severance pay in addition to the amounts
payable in accordance with C3D's then prevailing practice of its regular
payroll.

                                    ARTICLE 3

                                  COMPENSATION

3.1.1    Compensation. During the term of this Agreement, as compensation for
         services rendered under this Agreement and in consideration of this
         Agreement, C3D shall pay Employee a salary, in accordance with C3D's
         then prevailing payroll practices, at an annual rate of one hundred
         twenty thousand ($120,000.00) U.S. dollars per year. At the discretion
         of the Board of Directors and upon completion by C3D of its next
         significant financing,

                                       2
<PAGE>

         Employee's salary may be adjusted in accordance with any adjustment
         granted to other senior executive officers of C3D.

3.1.2    Bonus. For each year of the term of this Agreement, Employee shall be
         entitled to receive a bonus which shall be subject to the discretion of
         the Board of Directors of C3D. At C3D's election, such bonus may be
         paid in cash and/or as a grant of stock options. In the event C3D
         elects to grant Employee stock options as a bonus, such options shall
         be granted upon terms and conditions reasonably determined by the Board
         of Directors and in accordance with C3D's then current Incentive Stock
         Option Plan.

3.2      Options. In connection with and upon the execution of this Agreement by
         both parties, C3D shall grant to Employee under C3D's then current
         Incentive Stock Option Plan an Option to purchase shares of C3D's
         Common Stock at the exercise price and vesting schedule set forth
         below. Any Option must be exercised not later than forty-eight (48)
         months following its vesting.

         a)       Primary Grant: Employee is hereby granted an option to
                  purchase one hundred thousand (100,000) shares of common stock
                  of C3D at an exercise price per share of $6.0625, the closing
                  price of the common stock of C3D on the Nasdaq National Market
                  (Symbol: CDDD) on the effective date of this Agreement.
                  Employee's right to exercise this Primary Grant shall vest as
                  follows: 50% of the Options (representing 50,000 shares)
                  granted pursuant to the Primary Grant shall vest on the six
                  (6) month anniversary of the effective date of this Agreement.
                  The remaining 50% of the Options (representing the remaining
                  50,000 shares) granted pursuant to this Primary Grant shall
                  vest on the one (1) year anniversary of the effective date of
                  this Agreement. In the event Employee is terminated for "Good
                  Cause" and/or resigns for any reason other than for "Good
                  Reason" as that term is defined herein during the initial term
                  of this Agreement, all Options granted to Employee hereunder
                  which have not vested prior to Employee's termination date
                  shall be forfeited and shall not vest and/or be exercisable
                  under any circumstance.

         b)       Secondary Grant: Employee is hereby granted an option to
                  purchase an additional one hundred thousand (100,000) shares
                  of common stock of C3D at an exercise price per share of
                  $6.0625, the closing price of the common stock of C3D on the
                  Nasdaq National Market (Symbol: CDDD) on the effective date of
                  this Agreement. Employee's right to exercise this Secondary
                  Grant of options shall be premised upon Employee achieving the
                  goals detailed in Exhibit A to this Agreement and incorporated
                  herein. The Board of Directors of C3D shall, in its sole
                  discretion and with all due reasonableness and good faith,
                  make the determination as to whether Employee has achieved the
                  goals detailed in Exhibit A. In the event C3D's Board of
                  Directors determines that Employee has achieved the goals
                  detailed in Exhibit A, the options granted under this
                  Secondary Grant shall immediately vest. In the event the
                  Employee is terminated for "Good Cause" and/or resigns for any
                  reason other than for "Good Reason", all Options granted to
                  Employee under the Secondary Grant which have not vested prior
                  to Employee's termination date shall be forfeited

                                       3
<PAGE>

                  and shall not vest and/or be exercisable under any
                  circumstance, subject to the provisions of Article 3.2.3(b)
                  below.

         c)       Additional Grant: Employee is hereby granted an additional
                  option to purchase 17,320 shares of common stock of C3D at an
                  exercise price per share of $.01. The options granted pursuant
                  to this Additional Grant shall vest immediately upon the
                  effective date of this Agreement. The number of shares that
                  Employee shall be entitled to purchase pursuant to this
                  Additional Grant was determined by dividing One Hundred Five
                  Thousand and No/100 dollars by $6.0625 per share which was the
                  closing price of C3D's common stock on the Nasdaq National
                  Market (symbol: CDDD) on the effective date of this Agreement.

3.2.1    Method of Exercise. The Option shall be exercisable only by delivery of
         an Exercise Notice which shall state the election to exercise the
         Option, the number of Shares in respect of which the Option is being
         exercised (provided that no fractional shares may be exercised except
         on the last exercise of the Option), and such other provisions as may
         be reasonably necessary to evidence Employee's exercise of the Option.
         Such Exercise Notice shall be signed by the Optionee and shall be
         delivered in person or by certified mail to C3D accompanied by payment
         of the Exercise Price. The Option shall be deemed to be exercised upon
         receipt by C3D of such written notice accompanied by the Exercise Price
         as permitted to be paid in Article 3.2.2 below.

3.2.2    Method of Payment. Payment of the Exercise Price shall be by any of the
         following, or a combination thereof, at the election of the Optionee;
         provided, however, that such exercise method does not then violate any
         Applicable Law:

         a)       Cash; or

         b)       Check; or

         c)       Surrender of C3D Shares or delivery of a properly executed
                  form of attestation of ownership of C3D Shares as may be
                  required (including withholding of C3D Shares otherwise
                  deliverable upon exercise of the Option) which have a Fair
                  Market Value on the date of surrender or attestation equal to
                  the aggregate Exercise Price of the Shares as to which the
                  Option is being exercised (but only to the extent that such
                  exercise of the Option would not result in an accounting
                  compensation charge with respect to C3D Shares used to pay the
                  exercise price); and

         d)       Delivery of a properly executed Exercise Notice together with
                  such other documentation as may be required to effect an
                  exercise of the Option and delivery to C3D of the proceeds
                  required to pay the Exercise Price.

3.2.3    Change in Control. With respect to the options granted in Article 3.2
         of this Agreement, upon a "Change of Control" the following shall
         occur:

                                       4
<PAGE>

         a)       The option for 100,000 shares granted pursuant to the "Primary
                  Grant" shall immediately vest and be exercisable;

         b)       In the event a Change of Control occurs subsequent to the
                  expiration of the initial term of this Agreement, but prior to
                  a determination having been made by the Board of Directors as
                  to whether Employee has achieved the goals set forth in
                  Exhibit A hereto, the option for 100,000 shares granted
                  pursuant to the Secondary Grant shall vest on a pro rata basis
                  to the extent the part or all of the goals set forth in
                  Exhibit A have been achieved as reasonably and with good faith
                  determined by C3D's Board of Directors.

         c)       In the event a Change of Control occurs subsequent to a
                  determination having been made by the Board of Directors that
                  Employee has achieved the goals set forth in Exhibit A hereto,
                  the option for 100,000 shares granted pursuant to the
                  Secondary Grant shall immediately vest and be exercisable; and

         d)       The options granted pursuant to the Additional Grant shall
                  immediately vest and be exercisable.

         For purposes of this Agreement, "Change in Control" means the
occurrence of any of the following events: (i) the acquisition by any person
(deemed to have the same meaning as when used in Section 13 of the Securities
Exchange Act of 1934) or group of persons in one or more specifically related
transactions (and designated as such) of more than Fifty Percent (50%) of C3D's
shares of stock entitled to vote for directors; (ii) a merger, consolidation or
other combination of C3D with one or more other corporations or entities which
results in more than Fifty Percent (50%) of the voting stock or other voting
interests of the surviving corporation being held by former shareholders of the
corporations or entities (other than C3D) which are parties to such merger,
consolidation or other combination; or (iii) the dissolution and liquidation of
C3D or the adoption and execution of a plan or agreement for the sale or other
disposition of all or substantially all of the assets of C3D.

3.3      Benefits and Perquisites. Employee shall be entitled to participate in
         C3D's health, accident and other benefit plans or programs, as
         implemented. Employee agrees and understands that the benefits may be
         changed, altered, amended, discontinued, decreased, or increased at the
         sole discretion of the Board of Directors. Such benefit plans and
         programs may be structured as (i) a C3D-sponsored benefit plan; (ii) a
         grant by C3D of an allowance for Employee to obtain such benefits; or
         (iii) such other structure as C3D may implement at its discretion.
         Until such time as C3D implements an employee benefit plan, Employee
         shall be entitled to reimbursement of COBRA and other premium payments
         for his (and his family's) continuing health, dental, disability,
         employee life and dependent life insurance coverage at benefit levels
         comparable to the benefits provided by Employee's previous employer,
         including for disability, employee life and dependent life insurance
         coverage. With respect to this Article 3.3, C3D shall not be required
         to reimburse Employee for any amounts exceeding $ 1800 per month.

3.4      Vacations. Employee shall be entitled to twenty (20) days of vacation
         per year, during which time the Employee's compensation shall continue
         to be paid in full. The scheduling

                                       5
<PAGE>

         of vacation time shall be subject to the prior reasonable approval of
         the CEO. The CEO may from time to time approve leaves of absence, with
         full or partial payment of salary and other expenses, for other reasons
         in its sole discretion.

3.5      Sick Leave. Employee shall be entitled to 5 (five) days of sick leave
         per year, during which time compensation and other benefits shall
         continue to be paid in full.

3.6      Reimbursement for Expenses. Employee shall be expected to incur various
         business expenses customarily incurred by persons holding like
         position, including but not limited to traveling, office equipment,
         entertainment and similar expenses, all of which are to be incurred by
         Employee for the benefit of C3D. Subject to C3D's reasonable policy
         regarding the reimbursement and non-reimbursement of such expenses, C3D
         shall promptly within 30 days of a properly submitted request,
         reimburse Employee for such expenses from time to time, at Employee's
         request, and Employee shall account to C3D for such expenses.

                                    ARTICLE 4

                                   TERMINATION

4.1      Unless Employee's employment is terminated pursuant to this Article, or
         pursuant to Article 2 above, C3D shall continue to employ Employee and
         Employee shall continue to serve C3D throughout the term of this
         Agreement.

4.2      This Agreement shall terminate automatically upon Employee's death. In
         the event this Agreement terminates by reason of Employee's death: (a)
         the options granted pursuant to the Primary Grant (option for 100,000
         shares) shall immediately vest and be exercisable as of the date of
         Employee's termination, and (b) to the extent Employee has achieved
         part or all of the goals set forth in Exhibit A hereto, the options
         granted pursuant Secondary Grant shall, on a pro rata basis, vest and
         immediately be exercisable. A determination as to the extent that
         Employee has achieved part or all of the goals set forth in Exhibit A
         hereto, if at all, shall be made solely by and in the reasonable and
         good-faith discretion of C3D's Board of Directors.

4.3      Upon Employee's "Disability", the payment of benefits under C3D's
         short-term and long-term disability insurance programs, if any, shall
         represent payments in lieu of salary and shall satisfy in full C3D's
         obligations for the payment of salary under the foregoing. If C3D has
         no short term and long term disability insurance program, then
         Employee's salary provided herein shall continue to be paid throughout
         Employee's Disability until such time as Employee's employment with C3D
         is terminated. For purposes of this Agreement, Employee shall be deemed
         to be under a Disability if Employee shall be unable, by virtue of
         illness or physical or mental incapacity or disability (from any cause
         or causes whatsoever), to perform Employee's essential job functions
         hereunder, whether with or without reasonable accommodation, in
         substantially the manner and to the extent reasonably required
         hereunder prior to the commencement of such disability, for a period
         exceeding Ninety (90) consecutive days. In light of the unique nature
         of Employee's services, and the undue burden on C3D that would result
         from Employee's long term absence, C3D shall have the right to
         terminate Employee's employment hereunder in the event Employee shall
         remain under a Disability for a period exceeding One Hundred

                                       6
<PAGE>

         Eighty (180) consecutive days, such termination to occur at the end of
         any calendar month during the continuance of such Disability, upon at
         least Thirty (30) days prior written notice to Employee. In the event
         this Agreement is terminated by reason of Employee's Disability: (a)
         the options granted pursuant to the Primary Grant (option for 100,000
         shares) shall immediately vest and be exercisable as of the date of
         Employee's termination; and (b) to the extent Employee has achieved
         part or all of the goals set forth in Exhibit A hereto, the options
         granted pursuant Secondary Grant shall, on a pro rata basis, vest and
         immediately be exercisable. A determination as to the extent that
         Employee has achieved part or all of the goals set forth in Exhibit A
         hereto, if at all, shall be made solely by and in the reasonable and
         good-faith discretion of C3D's Board of Directors.

4.4      Termination by C3D for Good Cause. Subject to the provisions of this
         Article, this Agreement may be terminated by C3D for "Good Cause" upon
         30-days prior written notice to Employee, during which time Employee
         shall be given the opportunity to cure. It shall be "Good Cause" for
         termination if Employee after expiration of such cure period: (i)
         materially or significantly defaults in performance of, or other
         material or significant breach by Employee of, Employee's obligations
         hereunder; or (ii) repeatedly fails to perform diligently Employee's
         material duties hereunder, other than by reason of illness or
         Disability; or (iii) commits an act of misconduct, dishonesty,
         insubordination, or other such intentional and bad faith act
         detrimental to C3D or its good will or damaging to its relationships
         with its customers, suppliers, or employees, including, without
         limitation, (A) the inappropriate and excessive use of alcohol or
         illegal drugs such as to materially interfere with the performance of
         Employee's obligations hereunder, (B) conviction of or plea of guilty
         or no contest to a felony or any crime involving moral turpitude,
         dishonesty, or theft, and (C) material failure by Employee to comply
         with applicable material laws or governmental regulations with respect
         to C3D operations or the performance of Employee's duties, of which
         matter or matters Employee knew or should have known. C3D shall provide
         notice of its intention to terminate employment for Good Cause. In the
         event of termination pursuant to this Article 4.4, C3D shall pay
         Employee, within fifteen (15) days of such termination, the monetary
         compensation earned to the date of such termination.

4.5      Termination by Employee. Employee may terminate employment under this
         Agreement for Good Reason. For purposes of this Agreement, Good Reason
         shall include (i) C3D's failure to pay salary and/or compensation
         and/or benefits as provided in this Agreement, or (ii) the repeated
         failure by C3D to timely reimburse Employee for expenses properly
         incurred on C3D's behalf, or (iii) a material change or diminution in
         Employee's position and/or duties or responsibilities contrary to the
         terms of this Agreement, or (iv) fails to timely issue stock upon
         exercise of Employee's options. Before terminating employment for Good
         Reason, Employee shall provide C3D not less than Ten (10) business
         days' advance written notice of intention do so and as to the nature of
         the Good Reason, and opportunity to cure such Good Reason. In the event
         Employee resigns for Good Reason, the Options granted pursuant to the
         Primary Grant and Additional Grant shall continue to vest and be
         exercisable, however the Options granted pursuant to the Secondary
         Grant shall only vest on a pro rata basis to the extent Employee has
         achieved part or all of the goals set forth in Exhibit A to this
         Agreement, all other options under the Secondary Grant shall be
         forfeited and shall not vest and/or be exercisable under any
         circumstance. A determination as to the extent that Employee has
         achieved part or all of the goals set forth

                                       7
<PAGE>

         in Exhibit A hereto, if at all, shall be made solely by and in the
         reasonable and good-faith discretion of C3D's Board of Directors. In
         the event Employee resigns for any reason other than Good Reason, such
         resignation shall be deemed a "Good Cause" basis for terminating
         Employee's employment pursuant to Article 4.4 herein.

                                    ARTICLE 5

                              INTELLECTUAL PROPERTY

5.1      Inventions. As used in this Agreement, the term "Inventions" means any
         and all useful art, discovery, improvement, technical development, or
         invention whether or not patentable, and all related know-how, designs,
         maskworks, trademarks, formulae, processes, manufacturing techniques,
         trade secrets, ideas, artwork, software or other copyrightable or
         patentable works. However, the term "Invention" shall not be deemed to
         include art, discovery, improvement, technical development, or
         invention whether or not patentable, and all related know-how, designs,
         maskworks, trademarks, formulae, processes, manufacturing techniques,
         trade secrets, ideas, artwork, software or other copyrightable or
         patentable works which is: (a) unrelated at the time of conception or
         reduction to practice of the invention to C3D's business or actual or
         demonstrably anticipated research or development, and (b) which was not
         developed on any amount of C3D's time or with the use of any of C3D's
         equipment, supplies, facilities or trade secret information, and (c)
         which did not result from any work Employee performed for C3D.

5.2      Ownership of C3D's Inventions and License of Prior Inventions. Employee
         agrees promptly to disclose and describe to C3D, and hereby assigns and
         agrees to assign to C3D or its designee, his entire right, title, and
         interest in and to all Inventions and any associated intellectual
         property rights which he may solely or jointly conceive, develop or
         reduce to practice during the period of his employment with C3D (a)
         which relate at the time of conception or reduction to practice of the
         invention to C3D's business or actual or demonstrably anticipated
         research or development, or (b) which were developed on any amount of
         C3D's time or with the use of any of C3D's equipment, supplies,
         facilities or trade secret information, or (c) which resulted from any
         work Employee performed for C3D ("C3D's Inventions"). Employee agrees
         to grant C3D or its designees a royalty free, irrevocable, perpetual,
         worldwide license (with rights to sublicense through multiple tiers of
         distribution) to practice all applicable patent, copyright and other
         intellectual rights relating to any Inventions which Employee
         incorporates, or permits to be incorporated, in any C3D's Inventions.
         Notwithstanding the foregoing, Employee agrees that he will not
         incorporate, or permit to be incorporated, Inventions in any C3D's
         Inventions without C3D's prior written consent.

5.3      Future Inventions. Employee recognizes that C3D's Inventions or
         Proprietary Information (as defined in Article 5.7 below) relating to
         Employee's activities while working for C3D

                                       8
<PAGE>

         and conceived or made by Employee, alone or with others, within one (1)
         year after termination of his employment may have been conceived in
         significant part while employed by C3D. Accordingly, Employee agrees
         that such Inventions and Proprietary Information will be presumed to
         have been conceived during his employment with C3D and are to be
         assigned to C3D unless and until Employee has established the contrary.

5.4      Non-assignable Inventions. This Agreement does not apply to an
         Invention which qualifies fully as a non-assignable Invention under the
         provisions of the respective Labor Code. Employee has reviewed the
         notification in Exhibit B ("Limited Exclusion Notification") and agrees
         that his signature acknowledges receipt of the notification. However,
         Employee agrees to disclose promptly in writing to C3D all Inventions
         made or conceived by him during the term of his employment and for one
         (1) year thereafter, whether or not Employee believes such Inventions
         are subject to this Agreement, to permit a determination by C3D as to
         whether or not the Inventions should be the property of C3D. Any such
         information will be received in confidence by C3D.

5.5      Cooperation in Perfecting Rights to Inventions.

         (a)      At C3D's sole cost and expense, Employee agrees to perform,
                  during and for a reasonable time after his employment, all
                  acts reasonably deemed necessary or desirable by C3D to permit
                  and assist it, at its expense, in obtaining and enforcing the
                  full benefits, enjoyment, rights and title throughout the
                  world in the Inventions hereby assigned to C3D. Such acts may
                  include, but are not limited to, execution of documents and
                  reasonable assistance or cooperation in the registration and
                  enforcement by C3D of applicable patents, copyrights,
                  maskworks or other legal proceedings.

         (b)      In the event that C3D, after 15 days written notice is unable
                  for any reason to secure Employee's signature to any document
                  required to apply for or execute any patent, copyright,
                  maskwork or other applications with respect to any Inventions
                  (including improvements, renewals, extensions, continuations,
                  divisions or continuations in part thereof), Employee hereby
                  irrevocably designates and appoints C3D and its duly
                  authorized officers and agents as his agents and
                  attorneys-in-fact to act for and on Employee's behalf and
                  instead of him, to execute and file any such application and
                  to do all other lawfully permitted acts to further the
                  prosecution and issuance of patents, copyrights, maskworks or
                  other rights thereon with the same legal force and effect as
                  if executed by the Employee. Notwithstanding the foregoing,
                  C3D agrees to indemnify and hold Employee and his successors
                  and assigns, harmless from and against all actions, claims,
                  losses, costs, obligations and damages asserted against or
                  incurred by Employee in connection with or relating to any
                  Inventions and/or any such actions taken by C3D on behalf of
                  Employee, including without limitation any alleged
                  infringement by C3D of the intellectual property rights of
                  others.

5.6 Proprietary Information. Employee's employment creates a relationship of
confidence and trust between C3D and Employee with respect to any non-public
information: Applicable to the business of C3D; or applicable to the business of
any client or customer of C3D, or learned by Employee in such context during the
period of his employment.

                                       9
<PAGE>

         All of such information has commercial value in the business in which
         C3D is engaged and is hereinafter called "Proprietary Information." By
         way of illustration, but not limitation, Proprietary Information
         includes any and all technical and non-technical information including
         patent, copyright, trade secret, and proprietary information,
         techniques, sketches, drawings, models, inventions, know-how,
         processes, apparatus, equipment, algorithms, software programs,
         software source documents, and formulae related to the current, future
         and proposed products and services of C3D, and includes, without
         limitation, its respective information concerning research,
         experimental work, development, design details and specifications,
         engineering and financial information, procurement requirements,
         purchasing, manufacturing, customer lists, business forecasts, sales
         and merchandising and marketing plans and information. "Proprietary
         Information" also includes proprietary or confidential information of
         any third party who may disclose such information to C3D or Employee in
         the course of C3D's business during the term of this Agreement.

5.7      Nondisclosure of Proprietary Information. At all times, both during
         Employee's employment by C3D and after its termination, Employee agrees
         to keep in confidence and trust all Proprietary Information, and
         Employee agrees that he will not use or disclose any Proprietary
         Information or anything directly relating to it without the written
         consent of C3D, except as may be necessary in the ordinary course of
         performing the Employee's duties as set forth in this Agreement.
         Notwithstanding the foregoing, it is understood that, at all such
         times, Employee is free to use information which is or becomes
         generally known in the trade or industry not as a result of a breach of
         this Agreement and Employee's own skill, knowledge, know-how and
         experience to whatever extent and in whatever way Employee wishes.

5.8      No Violation of Rights of Third Parties. Employee's performance of all
         the terms of this Agreement and as an employee of C3D does not and will
         not breach any agreement to keep in confidence proprietary information,
         knowledge or data acquired by Employee prior to his employment with
         C3D, and Employee agrees that he will not disclose to C3D, or induce
         C3D to use, any confidential or proprietary information or material
         belonging to any previous employer or others. Employee asserts that he
         is not a party to any other agreement that will interfere with his full
         compliance with this Agreement.

5.9      Return of Materials. Upon termination of Employee's employment or at
         the request of C3D before termination, Employee will deliver to C3D all
         written and tangible material in his possession incorporating the
         Proprietary Information or otherwise relating to C3D's business.

5.10     Notification To Third Parties. In the event that Employee leaves the
         employ of C3D, Employee hereby consents to the notification by C3D to
         his new employer or principal of Employee's rights and obligations
         under this Agreement if C3D reasonably and in good faith believes that
         Employee is in default of the provisions of Article 5 of this
         Agreement.

5.11     Injunctive Relief. A breach of any of the promises or agreements
         contained herein will result in irreparable and continuing damage to
         C3D for which there will be no adequate remedy at law, and C3D shall be
         entitled to injunctive relief and/or a decree for specific performance,
         and such other relief as may be proper (including all monetary,
         consequential and compensatory damages, provided however, that C3D
         shall not be entitled to recover punitive and/or speculative damages
         from Employee).

                                       10
<PAGE>

5.12     Survival. This Article of the Agreement ("Article 5") (a) shall survive
         Employee's employment by C3D for the period specified above, (b) does
         not in any way restrict Employee's right or the right of C3D to
         terminate his employment at any time, for any reason or for no reason,
         subject to the terms of this Agreement, (c) inures to the benefit of
         successors and assigns of C3D, and (d) is binding upon Employee's heirs
         and legal representatives.

5.13     Indemnification. To the maximum extent permitted by law, applicable
         statutes and the Articles of Incorporation, By-laws and resolutions of
         C3D and its Affiliates in effect from time to time, C3D and its
         Affiliates shall indemnify Employee against all claims, actions,
         obligations, costs, liability and loss arising out of or in connection
         with Employee's actual or attempted performance or misfeasance or
         nonfeasance in the performance of Employee's actions, obligations and
         duties on behalf of C3D and its Affiliates, and all actions taken by
         C3D and its officers and agents pursuant to Article 5.5 hereof,
         including, but not limited to, judgments, fines, settlements, and
         expenses incurred in the defense of action, proceedings, and appeals
         therefrom. The Provisions of this paragraph shall apply to and inure to
         the benefit of Employee and the estate, executor, administrator, heirs,
         legatees, or devisees of Employee, shall survive the termination of
         this Agreement and Employee's employment for any reason, and shall be
         binding on C3D, Affiliates and C3D's successors and assigns.

                                    ARTICLE 6

                      NON-COMPETITION AND NON-SOLICIATATION

6.1      No Solicitation. As a condition of employment with C3D, and as a
         further material inducement to C3D to employ Employee hereunder,
         Employee agrees that unless approved in writing by C3D's Board of
         Directors, during the period that Employee is employed by C3D, and for
         a period of six months following the Employee's termination, Employee
         shall not, directly or indirectly solicit, hire, or induce the
         termination from employment or engagement with C3D of any person who
         was employed or engaged by C3D (including without limitation
         consultants and independent contractors) or any Affiliate or induce
         such person to accept employment other than with C3D or any Affiliate.

6.2      No Competition. As a condition of employment with C3D, and as a
         material inducement to C3D to employ Employee hereunder, Employee
         agrees that, while Employee is employed by C3D, and during the six
         month period following Employee's termination, so long as Employee
         receives his severance and other payments, Employee shall not, directly
         or indirectly, whether or not for compensation, and whether or not as
         an employee, be engaged in or have a 5% or greater financial interest
         in any other business which competes with any business conducted by C3D
         and its Affiliates in any area where such business is being conducted
         by C3D and its Affiliates as of the date of Employee's termination.
         Notwithstanding the foregoing, Employee shall not be prevented from
         returning to the employment of Texas Instruments as a regular employee
         and/or independent contractor, subject to the provisions of Article 5
         herein, which shall survive termination of this Agreement.

                                       11
<PAGE>

6.3      Survival. This provision of the Agreement ("Article 6") (a) shall
         survive Employee's employment by C3D for the period referenced above,
         (b) does not in any way restrict Employee's right or the right of C3D
         to terminate his employment at any time, for any reason or for no
         reason, subject to the terms of this Agreement, (c) inures to the
         benefit of successors and assigns of C3D, and (d) is binding upon
         Employee's heirs and legal representatives.

6.4      Injunctive Relief. A breach of any of the promises or agreements
         contained in this Article 6 will result in irreparable and continuing
         damage to C3D for which there will be no adequate remedy at law, and
         C3D shall be entitled to injunctive relief and/or a decree for specific
         performance, and such other relief as may be proper (including all
         monetary, consequential and compensatory damages, provided however,
         that C3D shall not be entitled to recover punitive and/or speculative
         damages from Employee).

                                    ARTICLE 7

                                  MISCELLANEOUS

7.1      Modification; Amendment; Waiver. No modification, amendment or waiver
         of any provisions of this Agreement shall be effective unless approved
         in writing by both parties. The failure at any time to enforce any of
         the provisions of this Agreement shall in no way be construed as a
         waiver of such provisions and shall not affect the right of either
         party thereafter to enforce each and every provision hereof in
         accordance with its terms.

7.2      Severability. Whenever possible, each provision of this Agreement shall
         be interpreted in such manner as to be effective and valid under
         applicable law, but if any provision of this Agreement shall be held to
         be prohibited by or invalid under applicable law, such provision shall
         be ineffective only to the extent of such prohibition or invalidity,
         without invalidating the remainder of such provision or the remaining
         provisions of this Agreement. For purposes of interpreting this
         Agreement, neither party shall be deemed the author of the Agreement.

7.3      Survival. Employee's obligations as set forth in Articles 5 and 6,
         above, represent independent covenants for which Employee is receiving
         additional consideration in the form of severance payments (as set
         forth herein) and by which Employee shall remain bound, notwithstanding
         any breach or claim of breach by C3D and/or Employee, and shall survive
         the termination or expiration of this Agreement, except as otherwise
         provided in Article 6.

7.4      Assignment. The rights and obligations of the parties under this
         Agreement shall be binding upon and inure to the benefit of their
         respective successors, assigns, executors, administrators and heirs,
         provided, however, that neither C3D nor Employee nor their respective
         successors, assigns, executors, administrators and heirs may assign,
         transfer, pledge, or hypothecate this Agreement or any rights, duties
         or obligations thereunder without the prior written consent of the
         other.

7.5      Notices. All notices and other communications hereunder shall be in
         writing and shall be deemed to have been duly given if delivered
         personally, mailed by certified mail (return receipt requested) or sent
         by reputable overnight delivery service, cable, telegram, facsimile

                                       12
<PAGE>

         transmission or telex to the parties at the following addresses or at
         such other addresses as shall be specified by the parties by like
         notice:

                  If to C3D:                       230 Park Avenue Suite 453
                                                   New York, NY 10169
                                                   Attention: General Counsel

                  With a Copy to:                  Michael Goldberg
                                                   2625 NE 11th Court
                                                   Fort Lauderdale, FL 33304

                  If to the Employee:              Steve Haddad
                                                   2511 Sunny Meadow
                                                   McKinney, Texas 75070

                  Copy to attorney:                Glen A. Bellinger
                                                   Bellinger & DeWolf, L.L.P.
                                                   750 North St. Paul, Suite 900
                                                   Dallas, Texas 75201

7.6      Complete Agreement. This Agreement constitutes the entire agreement
         between the parties, and cancels and supersedes all other agreements
         between the parties that may have related to the subject matter
         contained in this Agreement.

7.7      Articles and Headings. The articles and headings throughout this
         Agreement are for convenience of reference and shall in no way be held
         or deemed to be a part of or affect the interpretation of this
         Agreement.

7.8      Governing Law. This Agreement and performance under it, and all
         proceedings that may ensue from its breach, shall be construed in
         accordance with and under the laws of the State of New York and in New
         York. The Parties consent and agree to the exclusive jurisdiction of
         the Federal and State courts located in New York, New York.

7.9      Execution. This Agreement may be executed in counterparts, each of
         which shall be deemed an original, but all of which together shall
         constitute one and the same instrument.

7.10     Attorney's Fees. If any action at law or in equity is necessary to
         enforce or interpret the terms of this Agreement, the prevailing party
         shall be entitled to reasonable attorney's fees and costs, in addition
         to any other relief to which he may be entitled.

                                       13
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement effective as
of the day and year indicated above.

         CONSTELLATION 3D, INC.             EMPLOYEE:

         /s/ Eugene Levich                  /s/ Steve Haddad
         -----------------                  ----------------
         Eugene Levich                      Steve Haddad
         President & CEO

                                       14

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