Document:

Exhibit 10.2

                             MANAGEMENT SUBSCRIPTION
                           AND STOCKHOLDERS AGREEMENT

         This   Management   Subscription   and   Stockholders   Agreement  (the
"Agreement")  is entered into as of March 31, 1998 by and among Diamond  Triumph
Auto Glass, Inc., a Delaware corporation (the "Company"), Green Equity Investors
II, L.P., a Delaware limited partnership  ("GEI"),  and the person identified on
Annex A attached hereto (hereinafter referred to as the "Management  Investor"),
with reference to the following facts:

         WHEREAS, GEI is the principal shareholder of the Company;

         WHEREAS,  Management  Investor is a key executive of the Company or one
of  its  subsidiaries  and,  accordingly,  as an  incentive  to  the  Management
Investor,  the Company desires to issue  uncertificated  shares of the Company's
common  stock (the  "Common  Stock")  to the  Management  Investor  as set forth
herein; and

         NOW, THEREFORE, in consideration of the premises and for other good and
valuable   consideration,   the  receipt   and   adequacy  of  which  is  hereby
acknowledged, the parties hereto agree as follows:

         1.       Management Investor Representations.

                  (a) Investment  Risk. The Management  Investor  represents and
acknowledges  that (i) as a result of the  Management  Investor's  (A)  existing
relationship  with the  Company  and by virtue of being a key  executive  of the
Company or one of its subsidiaries, and (B) experience in financial matters, the
Management  Investor is properly  able to evaluate the capital  structure of the
Company, the business of the Company and its subsidiaries and the risks inherent
therein;  (ii) the Management  Investor has been given the opportunity to obtain
any additional  information or documents from and to ask questions,  and receive
answers of, the officers and representatives of the Company and its subsidiaries
to the  extent  necessary  to  evaluate  the  merits  and  risks  related  to an
investment in the Company;  (iii) the Management  Investor has been and will be,
to the extent the Management Investor deems necessary,  advised by legal counsel
of  the  Management  Investor's  choice  at  Management  Investor's  expense  in
connection  with  this  Agreement  and the  issuance  and sale of  Common  Stock
hereunder and (iv) the purchase of Common Stock hereunder will be consistent, in
both  nature and  amount,  with the  Management  Investor's  overall  investment
program  and  financial  condition,  and  the  Management  Investor's  financial
condition  will be such that the  Management  Investor  will be able to bear the
economic risk of holding  unregistered Common Stock for which there is no market
and to suffer a complete loss of the Management  Investor's  investment therein.
The Management Investor further acknowledges that investment in the Common Stock
hereunder  involves  significant  risks and that these  risks  include,  without
limitation, the fact that the Company will have a leveraged financial structure.

<PAGE>

                  (b)      Purchase for Investment.

                           (i) The Management  Investor  represents and warrants
that: (A) the Common Stock acquired by the Management Investor hereunder will be
acquired for the Management  Investor's own account for investment,  without any
present intention of selling or further distributing the same and the Management
Investor  does not have any reason to  anticipate  any change in the  Management
Investor's  circumstances or any other particular  occasion or event which would
cause the Management Investor to desire to sell any of such Common Stock and (B)
the  Management  Investor  is fully aware that in agreeing to sell or issue such
Common  Stock to the  Management  Investor  the Company will be relying upon the
truth and  accuracy of these  representations  and  warranties.  The  Management
Investor agrees that the Management  Investor will not sell or otherwise dispose
of any Common Stock except in  compliance  with the  Securities  Act of 1933, as
amended (the "Act"),  the rules and  regulations  of the Securities and Exchange
Commission  thereunder,  the relevant state  securities  laws  applicable to the
Management Investor's action and the terms of this Agreement.

                           (ii)  Subject to Section 6 below,  in addition to the
other restrictions provided in
this  Agreement,  the  Management  Investor  agrees  that  prior to  making  any
disposition of any Common Stock acquired  hereunder (other than a disposition to
the Company),  the Management  Investor will give not less than 10 days' advance
written   notice  to  the  Company   describing  the  manner  of  such  proposed
disposition. The Management Investor further agrees that the Management Investor
will not effect  such  proposed  disposition  until  either  (A) the  Management
Investor has provided to the Company, if so requested by the Company, an opinion
of counsel  reasonably  satisfactory  in form and  substance to the Company that
such  proposed  disposition  is exempt from  registration  under the Act and any
applicable state  securities laws or (B) a registration  statement under the Act
covering such proposed  disposition  has been filed by the Company under the Act
and has become  effective and compliance with applicable  state  securities laws
has been effected.

                           (iii) The Management  Investor  acknowledges  that no
trading market for the Common Stock exists  currently or is expected to exist at
any time in the  foreseeable  future  and  that,  as a  result,  the  Management
Investor may be unable to sell any of the Common Stock acquired hereunder for an
indefinite period. Further, the Company has no obligation to register any of the
Common Stock, except as expressly provided in Section 7 of this Agreement.

                           (iv) The Management Investor  acknowledges and agrees
that nothing herein,  including the opportunity to make any equity investment in
the Company,  shall be deemed to create any implication  concerning the adequacy
of the Management  Investor's services to the Company or any of its subsidiaries
or shall be construed as an agreement by the Company or any of its subsidiaries,
express or  implied,  to employ the  Management  Investor  or  contract  for the
Management  Investor's services,  to restrict the right of the Company or any of
its subsidiaries to discharge the Management  Investor or cease  contracting for
the Management  Investor's services or to modify,  extend or otherwise affect in
any manner  whatsoever  the terms of any  employment  agreement  or contract for
services which may exist between the Management  Investor and the Company or any
of its subsidiaries.

                                      -2-

<PAGE>

         2.       Grant of Management Shares and Legend on Certificates.

                  (a) Grant of Management  Shares.  The Company hereby grants to
the Management  Investor the right to purchase,  on the terms and conditions set
forth in this  Agreement,  all or any part of the number of shares  indicated on
Annex A hereto at the purchase price of $20.00 (the "Purchase Price") per share.
All shares of Common Stock issued hereunder shall be subject to all of the terms
and restrictions  contained in this Agreement,  including,  without  limitation,
those in  Sections  1(b),  3, 4, 8 and 9, and  shall be  uncertificated  shares.
Subject to the  limitations  set forth in Section 2(b), the Management  Investor
shall be entitled,  upon written  request to the Company,  to have a certificate
issued to him or her representing Common Stock issued hereunder.

                  (b) Legend on Certificates.  Each stock certificate  issued to
the Management Investor upon written request to the Company  representing Common
Stock issued  hereunder shall bear the following (or  substantially  equivalent)
legends on the face or reverse side thereof:

                  THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE HAVE NOT BEEN
                  REGISTERED  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED (THE
                  "ACT"),  AND  MAY  NOT  BE  SOLD,  TRANSFERRED,   ASSIGNED  OR
                  HYPOTHECATED   UNLESS  THERE  IS  AN  EFFECTIVE   REGISTRATION
                  STATEMENT UNDER THE ACT COVERING SUCH SECURITIES,  THE SALE IS
                  MADE IN ACCORDANCE  WITH RULE 144 OR ANY SUCCESSOR  RULE UNDER
                  THE ACT OR DIAMOND  TRIUMPH AUTO GLASS,  INC. (THE  "COMPANY")
                  RECEIVES  AN OPINION OF COUNSEL  SATISFACTORY  TO THE  COMPANY
                  THAT AN EXEMPTION  FROM SUCH  REGISTRATION  IS AVAILABLE.  THE
                  SECURITIES  REPRESENTED BY THIS  CERTIFICATE  ARE SUBJECT TO A
                  MANAGEMENT SUBSCRIPTION AND STOCKHOLDERS AGREEMENT DATED AS OF
                  MARCH 31,  1998,  AMONG THE  PURCHASER  PARTY  THERETO,  GREEN
                  EQUITY INVESTORS II, L.P., AND THE COMPANY, A COPY OF WHICH IS
                  ON FILE WITH THE SECRETARY OF THE COMPANY,  AND THE SECURITIES
                  REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED,  SOLD,
                  ASSIGNED,  PLEDGED,  HYPOTHECATED  OR  OTHERWISE  DISPOSED  OF
                  UNLESS SUCH TRANSFER, SALE, ASSIGNMENT,  PLEDGE, HYPOTHECATION
                  OR OTHER  DISPOSITION  COMPLIES  WITH THE  PROVISIONS  OF SUCH
                  AGREEMENT.

Any stock  certificate  issued at any time in exchange or  substitution  for any
certificates  bearing such  legends  (except a new  certificate  issued upon the
completion of a public  distribution of Common Stock represented  thereby) shall
also bear such (or substantially  equivalent)  legends,  unless the Common Stock
represented  by such  certificate  is no longer  subject  to the  provisions  of
Sections 1(b)(ii),  3(a), 3(b), 4, 8 and 9 of this Agreement and, in the opinion
of counsel for the

                                      -3-

<PAGE>

Company,  the  Common  Stock  represented  thereby  need no longer be subject to
restrictions pursuant to the Act or applicable state securities law. The Company
shall not be required to transfer on its books any  certificate for Common Stock
in violation of the provisions of this Agreement.

         3.       Transfer of Stock.

                  (a)  Prohibition  on Transfer.  Subject to the  provisions  of
Section 6, neither the  Management  Investor nor any other Holder (as defined in
Section 7(a)) shall,  on or prior to the fifth  anniversary  of this  Agreement,
directly or indirectly, sell, pledge, give, bequeath, transfer, assign or in any
other way whatsoever  encumber or dispose of (a  "transfer")  any Covered Shares
(as defined in Section 7(a)) (or any interest therein), except for transfers (i)
pursuant to this  Section 3 or Sections 4, 7, 8, or 9 of this  Agreement or (ii)
as may be  specifically  authorized  by the Board of Directors of the Company in
its sole discretion (either of (i) or (ii), a "Permitted Transfer").

                  (b) Transfer  Procedure;  Right of First Refusal.  Neither the
Management  Investor  nor any  other  Holder  shall,  prior to the  lapse of the
restriction in clause (a) of this Section 3, transfer any Covered Shares (or any
interest  therein),  except for  Permitted  Transfers or transfers in accordance
with the following:

                           (i) If any  Holder  shall  have  received a bona fide
         arms'  length  written  offer (a "Bona Fide  Offer")  which such Holder
         desires to accept from an  independent  party  unrelated to such Holder
         (the  "Outside   Party")  for  the  purchase  of  Covered   Shares  for
         consideration  consisting entirely of cash, then such Holder shall give
         a notice in writing  (the  "Option  Notice") to GEI setting  forth such
         desire,  which  notice shall set forth at least the name and address of
         the Outside Party and the price and terms of the Bona Fide Offer and be
         accompanied by a copy of the Bona Fide Offer.

                           (ii) Upon the giving of such Option Notice, GEI shall
         have an option  (transferable,  in the sole  discretion  of GEI,  to an
         Affiliate  (as  defined in Section  7(b)) of GEI or to the Company or a
         subsidiary  of the  Company)  to  purchase  all of the  Covered  Shares
         specified  in the Option  Notice,  said option to be  exercised  within
         thirty  (30) days after the giving of such Option  Notice,  by giving a
         counter-notice (the "Election Notice") to the Holder.

                           (iii) If GEI (or an  Affiliate of GEI, the Company or
         a subsidiary of the Company,  if applicable)  elects to purchase all of
         such Covered Shares, it shall be obligated to purchase,  and the Holder
         shall be obligated to sell,  such Covered  Shares at the cash price and
         terms indicated in the Bona Fide Offer,  except that the closing of the
         purchase by GEI (or an Affiliate of GEI, the Company or a subsidiary of
         the  Company,  if  applicable)  shall be held on a business  day within
         sixty (60) days after the giving of the Election  Notice at 10:30 a.m.,
         Eastern  Standard  Time,  at  the  principal  executive  office  of the
         Company,  or at such other time and place as may be mutually  agreed to
         by GEI (or an  Affiliate  of GEI,  the Company or a  subsidiary  of the
         Company, if applicable) and the Holder.

                                      -4-

<PAGE>

                           (iv) If an Election  Notice is not  delivered  by GEI
         (or an Affiliate of GEI, the Company or a subsidiary of the Company, if
         applicable)  within the period specified above, the Holder  thereafter,
         at any time  within a period of sixty (60) days from the giving of said
         Option Notice, may transfer all (but not less than all) of such Covered
         Shares to the Outside  Party at the cash price and terms  contained  in
         the Bona Fide Offer,  and the Outside Party shall thereafter be subject
         to and  bound by all of the  provisions  of this  Agreement  and,  as a
         condition  precedent  to the  completion  of such  transfer  of Covered
         Shares to such  Outside  Party,  such Outside  Party shall  execute and
         deliver to the Company and GEI a written consent to such effect in form
         and substance  satisfactory to the Company and GEI; provided,  however,
         that in the event the Holder has not so transferred said Covered Shares
         to the  Outside  Party  within  said sixty (60) day  period,  then said
         Covered  Shares  thereafter  shall continue to be subject to all of the
         restrictions contained in this Agreement.

                           (c) No Waiver by GEI. Any election in any instance by
GEI (or an  Affiliate of GEI,  the Company or a  subsidiary  of the Company,  if
applicable)  not to exercise  its rights of first  refusal  under this Section 3
shall not  constitute a waiver of such rights with respect to any other proposed
transfer of Covered Shares.

                           (d) Transfer to Related Transferees.  Notwithstanding
anything to the contrary contained in clauses (a) through (c) of this Section 3,
the Management  Investor or any other Holder may transfer Covered Shares without
restriction to the Management  Investor's Related Transferees (as defined below)
provided  that each such  Related  Transferee  shall first (i) execute a written
consent in form and substance satisfactory to the Company and GEI to be bound by
all of the  provisions of this  Agreement and (ii) give a duplicate  original of
such consent to the Company and GEI. The "Related Transferees" of the Management
Investor  shall consist of the  Management  Investor's  spouse,  the  Management
Investor's  adult  lineal   descendants,   the  adult  spouses  of  such  lineal
descendants,  trusts solely for the benefit of the Management  Investor's spouse
or the Management Investor's minor or adult lineal descendants and, in the event
of  death,  the  Management   Investor's  personal   representatives  (in  their
capacities  as  such),  estate  and  named  beneficiaries.  In the  event of any
transfer by the  Management  Investor to his Related  Transferees  of all or any
part of the Covered  Shares (or in the event of any  subsequent  transfer by any
such  Related  Transferee  to  another  Related  Transferee  of  the  Management
Investor),  such Related  Transferees shall receive and hold said Covered Shares
subject  to and be  bound  by the  terms of this  Agreement.  There  shall be no
further  transfer  of such  Covered  Shares  by a Related  Transferee  except as
permitted by this Agreement.

         4.       "Call" Option.

                  (a)  Upon  the   termination  of  the  Management   Investor's
employment  with,  or cessation of services as a director of, the Company or any
of its  subsidiaries  for any reason  (including  without  limitation  Voluntary
Termination,  a Just Cause Dismissal,  Involuntary  Termination Without Cause or
the  Retirement,  death or Permanent  Disability of the Management  Investor (as
such terms are defined in Section 5 below)) (a "Call Purchase  Event"),  subject
to the provisions of Section 6 and this Section 4, the Company shall give prompt
written notice of such  termination or cessation to GEI and GEI (or an Affiliate
of GEI  designated by GEI) may, at its

                                      -5-

<PAGE>

option  exercisable  by written  notice (a "Purchase  Notice")  delivered to the
Management  Investor  and each other  Holder  within  ninety (90) days after the
applicable  Call Purchase Event (or, in the event the  applicable  Call Purchase
Event is the death of the Management Investor, within thirty (30) days after the
appointment and  qualification of the deceased  Management  Investor's  personal
representative,  if  later),  elect to  purchase  and,  upon the  giving of such
notice,  GEI (or an  Affiliate of GEI  designated  by GEI) shall be obligated to
purchase  and the  Management  Investor  and each other Holder (each a "Seller")
shall be obligated to sell, all, or any lesser portion indicated in the Purchase
Notice, of the Covered Shares held by such Holder at a per share price equal to:

                           (i) in the case of  Voluntary  Termination  or a Just
Cause  Dismissal,  the lower of the Adjusted  Purchase  Price or the Fair Market
Value (as each such term is defined in Section 5 below); or

                           (ii) in the case of any other termination  (including
without limitation Involuntary  Termination Without Cause, death,  Retirement or
Permanent Disability), the Fair Market Value.

                                      -6-

<PAGE>

Notwithstanding the foregoing provisions of this Section 4(a), in the event that
the  applicable  Call  Purchase  Event  occurs more than one year after the date
hereof,  in the case of Voluntary  Termination  or a Just Cause  Dismissal,  the
price per share for the Applicable Percentage of the Covered Shares held by each
Holder shall be the Fair Market Value and the price per share for the  remaining
Covered  Shares held by such Holder shall be the lower of the Adjusted  Purchase
Price or the Fair Market Value. The "Applicable  Percentage" shall be determined
from the following table, based upon the period during which the applicable Call
Purchase Event occurs.

                 Period during which Call
                 Purchase Event Occurs                   Applicable Percentage
                 ---------------------                   ---------------------

                 12 months commencing on the
                 first anniversary of the
                 date of this Agreement                          33-1/3%

                 12 months commencing on the
                 second anniversary of the
                 date of this Agreement                          66-2/3%

                 On or after the third anniversary
                 of the date of this Agreement                      100%

If, as a result of the provisions of the two preceding sentences,  there are two
different  prices per share applicable to the Covered Shares held by each Holder
and  less  than all  Covered  Shares  held by each  Holder  are to be  purchased
pursuant to this Section 4, the Covered  Shares not  purchased  from such Holder
shall be those having the higher price per share.

                  (b) If GEI (or an Affiliate of GEI designated by GEI) does not
elect to exercise its option set forth in  paragraph  (a) of this Section 4, GEI
shall give written  notice that it is not so electing to the Company  within the
time periods  specified in paragraph (a) of this Section 4 for the giving of the
Purchase  Notice.  Upon receipt of such notice from GEI, the Company  shall have
the  option,  exercisable  by  written  notice  (a  "Company  Purchase  Notice")
delivered to the  Management  Investor and each other Holder within fifteen (15)
days after  receipt of such notice from GEI, to purchase  from each Seller (and,
upon the giving of the Company Purchase  Notice,  the Company shall be obligated
to  purchase  and each  Seller  shall be  obligated  to sell) all, or any lesser
portion  indicated in the Company Purchase Notice, of the Covered Shares held by
such Seller at the per share price set forth in paragraph (a) of this Section 4.

                  (c) In the event a purchase of Covered Shares pursuant to this
Section 4 by the  Company  shall be  prohibited  by law or would cause a default
under the terms of any indenture or loan agreement or other  instrument to which
the Company or any of its  subsidiaries  may be a party, the obligations of each
Seller and the Company  pursuant to this Section 4 shall be suspended until such
time as such prohibition  first lapses or is waived and no such default would be
caused; provided, however, that (x) the purchase price to be paid by the Company
for the Covered  Shares  shall accrue  interest at the lowest rate  necessary to
prevent the imputation of interest or original issue discount under the Internal
Revenue Code of 1986, as amended,  reduced

                                      -7-

<PAGE>

by any dividends or  distributions  on such Covered  Shares during the period of
such  suspension,  which interest  shall likewise be paid when such  prohibition
first  lapses or is waived  and no such  default  would be caused and (y) in the
event of any such suspension,  if GEI so elects and no violation of law would be
caused and no default  under the terms of any  indenture  or loan  agreement  or
other  instrument to which the Company or any of its subsidiaries may be a party
would result, the Company shall transfer its obligations under this Section 4 to
GEI or to an Affiliate of GEI, in which case GEI or the  Affiliate  (as the case
may be) and the  Seller(s)  shall be  obligated to complete the purchase of such
Covered Shares pursuant to this Section 4.

         5. Purchase Price, Closing and Terms of Payment for "Call" Sales.

                  (a) (i) For  purposes  of this  Agreement,  the  "Fair  Market
Value" of each share of Common Stock shall be  determined  as of the time of the
Call Purchase  Event by the Board of Directors of the Company in the exercise of
its reasonable discretion;  provided,  however, that such determination shall be
based upon the Company as a going  concern and shall not  discount  the value of
such shares  either  because they are subject to the  restrictions  set forth in
this  Agreement  or because  they  constitute  only a minority  interest  in the
Company.  Upon  delivery of notice of such Fair  Market  Value to GEI and to the
Seller(s) of Common  Stock  pursuant to Section 4 (which  shall  indicate,  in a
general fashion, the factors considered by the Board of Directors in determining
such amount), the Management Investor shall have ten (10) business days in which
to notify the Company in writing of any  disagreement.  If no written  notice of
disagreement  is given by the  Management  Investor,  the Fair  Market  Value as
determined  by the Board of Directors  of the Company  shall be  conclusive  and
binding on each Seller and on GEI or any Affiliate of GEI. If written  notice is
given by the  Management  Investor  of a  disagreement,  GEI and the  Management
Investor  shall  mutually  agree upon an  independent  appraiser  experienced in
making  valuations  of such sort which  shall make a  determination  of the Fair
Market Value. Such determination shall be final,  binding and nonappealable upon
GEI (or an Affiliate of GEI or the Company,  as applicable) and each Seller. The
costs and expenses  incurred in connection  with the  determination  made by the
independent  appraiser  shall be borne equally by GEI (or an Affiliate of GEI or
the Company, as applicable) and by the Management Investor.

                      (ii)  For  purposes  of  this  Agreement,   the  "Adjusted
Purchase Price" of each share of Common Stock shall be determined as of the time
of the Call  Purchase  Event and shall equal (A)  $20.00,  plus (or minus in the
case of a loss) (B) an amount  equal to the  quotient of (1) the  aggregate  net
income  (loss) of the Company  applicable  to the Common  Stock,  determined  in
accordance with generally accepted accounting  principles  consistently applied,
for the period (treated as one accounting  period) beginning on April 1, 1998 to
the end of the most recent fiscal  quarter  ending prior to the date of the Call
Purchase Event,  divided by (2) the number of outstanding shares of Common Stock
(determined  on a fully diluted  basis) as of the end of such most recent fiscal
quarter, less (C) an amount equal to the aggregate dividends per share of Common
Stock paid during the period from April 1, 1998 to the date of the Call Purchase
Event.

                  (b) For purposes of this  Agreement,  the Management  Investor
shall be deemed to be "Permanently  Disabled" if the Management Investor becomes
unable to engage in any substantial  gainful activity by reason of any medically
determinable  physical or mental

                                      -8-

<PAGE>

impairment  which can be  expected to result in death or which has lasted or can
be expected to last for a continuous period of not less than twelve (12) months.
The Company, at its option and expense,  shall be entitled to retain a physician
to confirm the existence of such incapacity or disability and the  determination
of such  physician  shall be binding upon the Company (or GEI or an Affiliate of
GEI, as applicable) and each Seller;  provided,  however, that if the Management
Investor  disagrees  with such  determination  of  Permanent  Disability  within
fifteen  (15) days of being  notified  of it, the  Management  Investor  and the
Company  shall  jointly  agree upon an  independent  physician  (or, if they are
unable to agree upon such  physician,  they shall each  select a  physician  and
those two physicians shall select the independent  physician) who shall make the
determination,  whose  decision  shall be binding upon the Company (or GEI or an
Affiliate of GEI, as applicable) and each Seller.

                  (c)  For  the  purposes  of  this  Agreement,  the  Management
Investor shall be deemed to be "Involuntarily Terminated Without Cause" upon the
later of the termination of the Management  Investor's employment by, or removal
or  failure  to be  reelected  as a  director  of,  the  Company  or  any of its
subsidiaries, unless such termination, removal or failure to be reelected is due
to  Retirement,   death,   Permanent  Disability  or  a  Just  Cause  Dismissal.
"Retirement" shall mean retirement in accordance with the retirement policies or
practices  of the  Company  or its  subsidiaries  applicable  to  executives  or
directors,  as the case may be,  but in no event at an age of less than  seventy
(70).  "Voluntary  Termination"  shall mean the  termination  by the  Management
Investor of his  employment  with,  or his  resignation  or refusal to stand for
reelection  as a director  of, the Company or any of its  subsidiaries,  for any
reason other than death,  Permanent  Disability,  or  Retirement.  A "Just Cause
Dismissal" shall mean termination of the Management  Investor's employment with,
or service as a director of, the Company or any of its  subsidiaries as a result
of any of the following (each, a "Cause"):

                           (i) the Management Investor commits any act of fraud,
         intentional  misrepresentation or serious misconduct in connection with
         the  business of the  Company or its  subsidiaries,  including  but not
         limited to,  falsifying  any  documents or  agreements  (regardless  of
         form); or

                           (ii) the Management  Investor materially violates any
         rule or  policy  of the  Company  or its  subsidiaries  (A)  for  which
         violation  an  employee  may be  terminated  pursuant  to  the  written
         policies of the Company or its subsidiaries  reasonably applicable to a
         key employee,  or (B) which violation results in material damage to the
         Company or its subsidiaries,  or (C) which,  after written notice to do
         so, the Management  Investor fails to correct within a reasonable time;
         or

                           (iii) the Management  Investor  wilfully  breaches or
         habitually  neglects any material  aspect of the Management  Investor's
         duties  (A)  as  described  in  the  Management  Investor's  employment
         contract,  or (B) in the ordinary  course of the Management  Investor's
         employment or service as a director,  or (C) assigned to the Management
         Investor  by the  Company or its  subsidiaries,  which  assignment  was
         reasonable  in light of the  Management  Investor's  position  with the
         Company or its subsidiaries (all of the foregoing duties, "Duties"); or

                                      -9-

<PAGE>

                           (iv) the  Management  Investor  fails,  after written
         notice, adequately to perform any Duties and such failure is reasonably
         likely to have an adverse impact upon the Company,  its subsidiaries or
         the operations of any of them; or

                           (v)  the  Management  Investor  materially  fails  to
         comply with a direction  from the Board of  Directors of the Company or
         its subsidiaries with respect to a material matter, which direction was
         reasonable  in light of the  Management  Investor's  position  with the
         Company or its subsidiaries; or

                           (vi)   while   employed   by  the   Company   or  its
         subsidiaries,  and without the written  approval of the Chief Executive
         Officer of the  Company  (or, in case the  Management  Investor is such
         Chief Executive Officer, approval of the Company's Board of Directors),
         the Management  Investor performs services for any other corporation or
         person which competes with the Company or its subsidiaries; or

                           (vii) the Management Investor is convicted by a court
         of competent  jurisdiction  of a felony (other than a traffic or moving
         violation) or any crime involving dishonesty; or

                           (viii) the Management Investor engages in any conduct
         which is materially  injurious or damaging to the Company or any of its
         subsidiaries   or  the   reputation  of  the  Company  or  any  of  its
         subsidiaries; or

                           (ix) any willful breach by the Management Investor of
         his or her fiduciary  duties as a director of the Company or any of its
         subsidiaries.

In the event that there is a dispute  between the  Seller(s) and the Company (or
GEI or an Affiliate of GEI, as applicable) as to whether "Cause" for termination
exists:  (x) such termination shall  nonetheless be effective,  (y) such dispute
shall be subject to  arbitration  pursuant  to Section 12 (f) hereof and (z) the
payments  or  deliveries,  if  any,  to be  made  by the  Company  (or GEI or an
Affiliate of GEI, as applicable) in connection with a purchase of Covered Shares
held by the  Seller(s)  pursuant  to Section 4 shall be delayed  until the final
resolution of such dispute in such arbitration.

                           (d)  The  closing  for all  purchases  and  sales  of
Covered Shares provided for in Section 4 hereof (the "Call Closing") shall be at
the principal  executive offices of the Company at 10:30 a.m.,  Eastern Standard
Time,  on the later of (A) the sixtieth  day after the giving of the  applicable
Purchase  Notice or Company  Purchase  Notice and (B), if the per share price is
the Fair Market Value,  the thirtieth day after the final  determination  of the
Fair Market  Value of the Common Stock as set forth  above;  provided,  however,
that if any Seller is deceased on the closing  date and such  deceased  person's
personal  representative  shall not have been  appointed  and  qualified by such
date,  then the closing in respect of such Seller shall be  postponed  until the
tenth  day  after  the   appointment   and   qualification   of  such   personal
representative.  If the  aforesaid  closing  date  falls on a day which is not a
business  day, then the closing  shall be held on the next  succeeding  business
day.

                           (e) The  purchase  price for the purchase and sale of
Covered  Shares  pursuant to the  provisions  hereof  shall be paid in cash,  by
certified or by official bank check.

                                      -10-

<PAGE>

                           (f) On the  date of the  Call  Closing,  each  Seller
authorizes the Company (or the Company's  transfer  agent,  if any) to record in
the  Company's  books and records the transfer of all of such  Seller's  Covered
Shares to be sold at the Call Closing,  which are not represented by one or more
certificates  issued by the  Company,  from such Seller to the  purchaser at the
Call Closing.  On the date of the Call  Closing,  each Seller shall also deliver
all  certificates,  if any, issued by the Company which represent Covered Shares
to be sold at the Call Closing by such Seller,  duly  endorsed for transfer with
signatures guaranteed,  to the purchaser at the Call Closing. In addition,  each
Seller shall take all actions as the Company or any other  purchaser at the Call
Closing  shall request as necessary to vest in the purchaser at the Call Closing
all  shares  sold by such  Seller  pursuant  to  Section  4 hereof,  whether  in
certificated or  uncertificated  form, free and clear of all liens,  charges and
encumbrances of any kind.

         6.  Termination  and Lapse of Rights and  Restrictions;  Application to
Other Stock.

                  (a) The provisions of Sections 1(b)(ii),  3(a), 3(b), 4, 8 and
9 of this  Agreement  shall lapse and be of no further  effect  with  respect to
Covered  Shares upon the  commencement  of the public  trading of the  Company's
Common Stock (or any capital stock exchanged for or distributed upon such Common
Stock  as  described  in  paragraph  (b) of  this  Section  6) on  any  national
securities  exchange,  on the  NASDAQ  National  Market  System or on the NASDAQ
"Small Cap" Issues System; provided,  however, that nothing in this Section 6(a)
shall affect any options to purchase,  or any  obligations to purchase and sell,
Covered Shares which arose prior to the commencement of such public trading.

                  (b) In the event any capital stock of the Company or any other
corporation  shall be distributed on, with respect to, or in exchange for shares
of Common  Stock of the  Company as a stock  dividend,  stock  split,  spin-off,
reclassification   or   recapitalization   in  connection  with  any  merger  or
reorganization, the restrictions, rights and options set forth in Sections 3, 4,
7, 8 and 9 shall  apply with  respect to such  other  capital  stock to the same
extent as they are, or would have been applicable,  to the Covered Shares on, or
with respect to, which such other capital stock was distributed.

         7.       Piggyback Registration Rights.

                  (a)      As used in this Agreement:

                           (i) the term "Holder" means the Management  Investor,
         any Related  Transferee of the Management  Investor  and/or any Outside
         Party that, at the time, owns Covered Shares; provided,  however, that,
         unless the Company is otherwise  notified,  the record owner of Covered
         Shares shall be deemed to be the Holder of such Covered Shares;

                           (ii) the term  Covered  Shares  means  the  shares of
         Common  Stock  acquired  by the  Management  Investor  pursuant to this
         Agreement.

                  (b) Subject to the  provisions  herein,  if the Company at any
time  proposes  to  include  all or any part of GEI's  Common  Stock in a public
offering of Common Stock registered  under the Act (other than  registration (x)
on Forms S-4 or S-8 or any  successor  forms  thereto or (y) filed in connection
with an exchange  offer),  the Company shall give written notice of the

                                      -11-

<PAGE>

proposed  registration  to each  Holder at least  thirty  (30) days prior to the
filing thereof,  and each Holder shall have the right to request that all or any
part of its Covered  Shares be included in such  registration  by giving written
notice to the Company  within  fifteen (15) days after the giving of such notice
by the Company (any Holder giving the Company a notice  requesting  that Covered
Shares owned by it be included in such proposed  registration  being hereinafter
referred to in this Section 7 as a  "Registering  Holder");  provided,  however,
that (i) if the  registration  is in whole  or in part an  underwritten  primary
registration  on behalf of the Company  and the  managing  underwriters  of such
offering  determine that the aggregate amount of securities of the Company which
all Registering Holders and all other security holders of the Company,  pursuant
to contractual  rights to participate in such  registration  ("Other  Holders"),
propose to include in such registration  statement exceeds the maximum amount of
securities  that should be included  therein,  the Company  will include in such
registration,  first, the shares which the Company proposes to sell and, second,
the shares of such  Registering  Holders and other securities to be sold for the
account of Other Holders,  pro rata among all such Registering Holders and Other
Holders,  taken together,  on the basis of the relative equity  interests in the
Company of all  Registering  Holders and Other Holders who have  requested  that
securities  owned  by them be so  included  (it  being  agreed  and  understood,
however,  that such underwriters  shall have the right to eliminate entirely the
participation  in  such  registration  of  all  Registering  Holders  and  Other
Holders),  (ii) if the registration is an underwritten secondary registration on
behalf of any of the Other Holders pursuant to demand registration rights (other
than  such  right  of GEI or  its  Affiliates)  and  the  managing  underwriters
determine that the aggregate amount of securities which all Registering  Holders
and all Other  Holders  propose  to  include in such  registration  exceeds  the
maximum amount of securities that should be included  therein,  the Company will
include in such  registration,  first, the securities to be sold for the account
of the Other Holders  demanding  registration (but only to the extent such Other
Holders are entitled to demand inclusion  thereof) second,  any securities to be
sold for the account of the Company,  and, third, the shares of such Registering
Holders and other  securities  to be sold for the  account of the Other  Holders
electing to include (but not being  entitled to demand  inclusion of) securities
in such  registration,  pro rata among all such  Registering  Holders  and Other
Holders,  taken  together,  on the basis of  relative  equity  interests  in the
Company of all  Registering  Holders and such Other  Holders who have  requested
that  securities  owned by them be  included  (it being  agreed and  understood,
however,  that such underwriters  shall have the right to eliminate entirely the
participation  therein of all such  Registering  Holders  and Other  Holders not
entitled to demand  inclusion of  securities  in such  registration).  Shares of
Common  Stock  proposed  to be  registered  and  sold  for  the  account  of any
Registering  Holder  shall  be  sold to  prospective  underwriters  selected  or
approved  by the Company on the terms and  subject to the  conditions  of one or
more underwriting agreements negotiated between the Company and/or Other Holders
demanding  registration  and the  prospective  underwriters,  and  (iii)  if the
registration is an underwritten  secondary  registration on behalf of GEI or any
of its  Affiliates  pursuant  to demand  registration  rights  and the  managing
underwriters  determine  that the  aggregate  amount  of  securities  which  all
Registering  Holders  and GEI and its  Affiliates  propose  to  include  in such
registration  exceeds the maximum  amount of securities  that should be included
therein,  the  Company  will  include  in such  registration  the shares of such
Registering  Holders and other  securities to be sold for the account of GEI and
its  Affiliates  pro rata  among all such  Registering  Holders  and GEI and its
Affiliates, taken together, on the basis of the relative equity interests in the
Company of all Registering Holders and GEI and its Affiliates who have requested
that  securities  owned  by  them  be

                                      -12-

<PAGE>

included.  For the purposes hereof, an "Affiliate" of any person or entity means
any other person or entity  controlling,  controlled by or under common  control
with such  person or  entity;  provided,  however,  that none of the  Management
Stockholders (defined below) or any of their Affiliates shall be deemed to be an
Affiliate of GEI. "Management Stockholders" means, collectively,  all holders of
capital stock or other  securities  issued by the Company who are also employees
of the Company or its subsidiaries.

         In the event the Company  proposes to register  any of its Common Stock
under the Act on Form S-8 (or any successor thereto),  if the Company determines
that it is  permissible  to do so and will not result in material added costs to
the Company from such registration, the Company shall, at a Registering Holder's
request,  include in such registration a percentage of such Registering Holder's
Covered Shares equal to the percentage,  if any, of GEI's shares of Common Stock
held as of the date of this Agreement sold by GEI in private  transactions  from
the date hereof to the date of such request.

         The Registering Holders shall be permitted to withdraw all or a part of
the Covered Shares held by such Registering Holders which were to be included in
such registration at any time prior to the effective date of such  registration.
The  Company  shall  not  be  required  to  maintain  the  effectiveness  of the
registration  statement for such registration beyond the earlier to occur of 120
days after the effective date thereof or consummation of the distribution by the
Registering  Holders included in such  registration  statement.  The Company may
withdraw any registration statement at any time before it becomes effective,  or
postpone  the offering of  securities,  without  obligation  or liability to any
Holder.

                  (c) The registration  rights set forth in this Section 7 shall
terminate and be of no further effect with respect to the Covered Shares held by
a Holder:  (i) at such  time as the  Company  has  filed,  and there has  become
effective,  one  registration  statement in which all Holders have been afforded
the  opportunity  to include all Covered Shares held by them or (ii) if earlier,
after an initial  public  offering,  at such time as all Covered Shares owned by
such Holder are eligible for sale  pursuant to the  provisions of Rule 144 under
the Act.

                  (d) In connection  with any  registration  of shares under the
Act  pursuant to this  Section 7, the Company  will  furnish  each Holder  whose
Covered  Shares  are  registered  thereunder  with  a copy  of the  registration
statement  and all  amendments  thereto  and will  supply  each such Holder with
copies of any prospectus  included therein  (including a preliminary  prospectus
and all  amendments  and  supplements  thereto),  in such  quantities  as may be
reasonably  necessary  for the  purpose  of the  proposed  sale or  distribution
covered by such  registration.  The Company shall not,  however,  be required to
maintain the  registration  statement and to supply copies of a prospectus for a
period beyond 120 days after the effective date of such  registration  statement
and, at the end of such period,  the Company may deregister any shares of Common
Stock covered by such  registration  statement and not then sold or distributed.
In connection with any such  registration of shares of Common Stock, the Company
will, at the request of the managing  underwriter with respect thereto,  use its
best efforts to qualify  such  registered  shares for sale under the  securities
laws of such states as is reasonably required to permit the distribution of such
registered shares; provided,  however, that the Company shall not be required in
connection therewith or as condition thereof to qualify as a foreign corporation
or

                                      -13-

<PAGE>

to execute a general consent to service of process in any jurisdiction or become
subject to taxation in any jurisdiction.

                  (e)  Notwithstanding any other provision of this Section 7, in
the event of an underwritten  public offering of Common Stock for the account of
the  Company,  no Holder shall offer for public sale (other than as part of such
underwritten  public  offering)  any shares of Common  Stock during the ten (10)
days  prior to,  and such  number of days  (not in  excess  of 180)  after,  the
effective  date of the  registration  statement  in  connection  with such pubic
offering as the underwriters and the Company may request in writing, without the
consent of the underwriters;  provided, however, that, in the case of death of a
Holder,  if  consented  to by the  underwriters,  a Holder shall be permitted to
offer for public sale prior to the  expiration  of such period  shares of Common
Stock reasonably necessary to generate funds for the payment of estate taxes.

                  (f) Except as otherwise  required by state  securities laws or
the rules and regulations  promulgated thereunder,  all expenses,  disbursements
and fees incurred by the Company in connection with carrying out its obligations
under this Section 7 shall be borne by the Company; provided, however, that each
Holder shall pay (i) all costs and expenses of counsel for such Holder,  if such
counsel is not also counsel for the Company,  (ii) all  underwriting  discounts,
commissions  and expenses  and all transfer  taxes with respect to the shares of
Common Stock sold by such Holder and (iii) all other  expenses  incurred by such
Holder and  incidental to the sale and delivery of the shares of Common Stock to
be sold by such Holder.

                  (g) It shall be a condition of each Holder's rights  hereunder
to have Covered Shares owned by such Holder registered that:

                           (i) such Holder shall  cooperate  with the Company by
         supplying  information and executing  documents relating to such Holder
         or the  securities  of the Company  owned by such Holder in  connection
         with such registration;

                           (ii) such Holder  shall  enter into any  undertakings
         and take such other  action  relating  to the  conduct of the  proposed
         offering which the Company or the underwriters  may reasonably  request
         as  being  necessary  to  insure  compliance  with  federal  and  state
         securities  laws and the rules or other  requirements  of the  National
         Association  of  Securities  Dealers,  Inc. or which the Company or the
         underwriters  may  reasonably  request  to  otherwise   effectuate  the
         offering; and

                           (iii)  such  Holder  shall  execute  and  deliver  an
         agreement to  indemnify  and hold  harmless  the  Company,  each of its
         directors,  each  of its  officers  who  has  signed  the  registration
         statement,  any underwriter (as defined in the Act) and each person, if
         any who controls the Company or such underwriter  within the meaning of
         the Act, against such losses, claims, damages or liabilities (including
         reimbursement for legal and other expenses) to which the Company or any
         such director,  officer,  underwriter or controlling  person may become
         subject under the Act or otherwise,  in such manner as is customary for
         registration of the type then proposed and, in any event, equivalent in
         scope to  indemnities  given by the  Company  in  connection  with such
         registration, but only with respect to written information furnished by
         such  Holder  in  his or  her  capacity  as a  selling  shareholder  in
         connection with such registration.

                                      -14-

<PAGE>

                  (h) In the  event  of any  registration  under  the Act of any
Covered  Shares  pursuant  to this  Section  7, the  Company  hereby  agrees  to
indemnify and hold harmless  each Holder  disposing of such shares  against such
losses, claims,  damages or liabilities  (including  reimbursement for legal and
other  expenses)  to which  such  Holder  may  become  subject  under the Act or
otherwise,  in such manner as is customary  for  registrations  of the type then
proposed,  but not with respect to written information  furnished by such Holder
in his capacity as a selling shareholder in connection with such registration.

         8.       Tag-Along Rights.

                  (a)  Right to  Participate  in  Sale.  If GEI  enters  into an
agreement to transfer,  sell or otherwise  dispose of for value (such  transfer,
sale or other disposition being referred to as a "Tag-Along Sale") a majority of
its shares of Common  Stock of the  Company  held on the date  hereof,  then GEI
shall afford each Holder the opportunity to participate  proportionately in such
Tag-Along  Sale in  accordance  with this  Section 8. Each Holder shall have the
right, but not the obligation  (except as provided in Section 9), to participate
in such  Tag-Along  Sale.  The number of shares of Common Stock that each Holder
will be entitled to include in such Tag-Along  Sale (such Holder's  "Allotment")
shall be determined  by  multiplying  (i) the number of Covered  Shares owned by
such  Holder as of the close of business on the day  immediately  preceding  the
Tag-Along Notice Date (as defined below),  by (ii) a fraction,  the numerator or
which  shall  equal the number of shares of Common  Stock  proposed by GEI to be
sold or otherwise disposed of pursuant to the Tag-Along Sale and the denominator
of which  shall  equal the total  number  of  shares  of Common  Stock  that are
beneficially owned as of the close of business on the day immediately  preceding
the  Tag-Along  Notice  Date by (a) GEI and (b) all  holders of shares of Common
Stock  (including the Holders) to the extent that such holders have the right to
"tag-along" in the Tag-Along Sale. The "Tag Along Notice Date" shall be the date
that the Tag-Along Sale Notice (as defined below) is first delivered,  mailed or
sent by courier, Telex or telecopy to the Holders.

                  (b) Terms of Tag-Along  Sale. Any sales of Covered Shares by a
Holder as a result of the "Tag-Along  Rights"  granted to the Holder pursuant to
this  agreement  shall be on the  same  terms  and  conditions  as the  proposed
Tag-Along Sale by GEI.

                  (c) Sale  Notice.  GEI shall  provide each Holder with written
notice  (the  "Tag-Along  Sale  Notice")  not more than sixty (60) nor less than
twenty  (20)  days  prior  to the  proposed  date  of the  Tag-Along  Sale  (the
"Tag-Along  Sale Date").  Each  Tag-Along  Sale Notice shall set forth:  (i) the
number of shares  proposed to be  transferred  or sold by GEI; (ii) the proposed
amount and form of  consideration  to be paid for such  shares and the terms and
conditions of payment  offered by each proposed  transferee or purchaser;  (iii)
the aggregate number of shares of Common Stock held of record as of the close of
business on the day immediately preceding the Tag-Along Notice Date by GEI; (iv)
such Holder's  Allotment assuming such Holder elected to sell the maximum number
of Covered Shares  possible;  (v)  confirmation  that the proposed  purchaser or
transferee has been informed of the "Tag-Along  Rights"  provided for herein and
has agreed to purchase  Covered Shares in accordance with the terms hereof;  and
(vi) the Tag-Along Sale Date.

                                      -15-

<PAGE>

                  (d) Tag-Along Notice. If a Holder wishes to participate in the
Tag-Along  Sale,  such Holder  shall  provide  written  notice  (the  "Tag-Along
Notice") to GEI no less than ten (10) days prior to the Tag-Along Sale Date. The
Tag-Along  Notice shall set forth the number of Covered  Shares that such Holder
elects to include in the  Tag-Along  Sale,  which shall not exceed such Holder's
Allotment.  The  Tag-Along  Notice  shall also specify the  aggregate  number of
additional Covered Shares owned of record as of the close of business on the day
immediately  preceding the Tag-Along  Notice Date by such Holder,  if any, which
such Holder desires also to include in the Tag-Along Sale ("Additional  Shares")
in the  event  there is any  under-subscription  for the  entire  amount  of all
Holders'  Allotments  and of all shares that may be included by persons  having,
pursuant to agreements of even date  herewith in form  substantially  similar to
this  Agreement  (the  "Other  Agreements"),  tag-along  rights  relative to GEI
(collectively, the "Management Investors' Allotments"). In the event there is an
under-subscription  by all holders of Management  Investors'  Allotments for the
entire amount of the Management Investors'  Allotments,  GEI shall apportion the
unsubscribed  Management  Investors'  Allotments  to such  holders on a pro rata
basis in  accordance  with the  number  of  Additional  Shares  (as such term is
defined  in this  Agreement  and the  Other  Agreements)  specified  by all such
holders in their  Tag-Along  Notices (as such term is defined in this  Agreement
and the Other  Agreements).  The  Tag-Along  Notice  given by each Holder  shall
constitute such Holder's binding  agreement to sell the Covered Shares specified
in such Tag-Along  Notice  (including  any Additional  Shares to the extent such
Additional  Shares are to be  included  in the  Tag-Along  Sale  pursuant to the
apportionment  described in the preceding  sentence) on the terms and conditions
applicable to the  Tag-Along  Sale,  subject to the  provisions of Section 8 (b)
above; provided, however, that in the event that there is any material change in
the terms and conditions of such  Tag-Along Sale  applicable to any Holder after
such Holder gives its Tag-Along Notice, then, notwithstanding anything herein to
the contrary, such Holder shall have the right to withdraw from participation in
the Tag-Along Sale with respect to all of its Covered Shares  affected  thereby.
If the purchaser  does not  consummate the purchase of all of such shares on the
same  terms and  conditions  applicable  to GEI  (except as  otherwise  provided
herein) then GEI shall not consummate the Tag-Along Sale of any of its shares to
such  transferee  or  purchaser,  unless the  shares of each  Holder and GEI are
reduced or limited pro rata in  proportion  to the  respective  number of shares
actually sold in such Tag-Along Sale.

         If a Tag-Along  Notice is not  received by GEI from any Holder prior to
the  ten-day  period  specified  above,  GEI  shall  have  the  right to sell or
otherwise transfer the number of shares specified in the Tag-Along Notice to the
proposed  purchaser or transferee  without any participation by such Holder, but
only on terms and conditions which are no more favorable in any material respect
to GEI than as stated in the  Tag-Along  Notice to such  Holder and only if such
Tag-Along Sale occurs on a date within sixty (60) business days of the Tag-Along
Sale Date.

                  (e) Authority to Record Transfer/Delivery of Certificates.  On
the  Tag-Along  Sale Date,  each  Holder,  if a  participant  in the  applicable
Tag-Along Sale, authorizes the Company (or the Company's transfer agent, if any)
to record  in the  Company's  books  and  records  the  transfer  of all of such
Holder's   Covered  Shares  included  in  such  Tag-Along  Sale  which  are  not
represented by one or more certificates  issued by the Company,  from the Holder
to the purchaser in the Tag-Along Sale. On the Tag-Along Sale Date, each Holder,
if a  participant  in the  applicable  Tag-Along  Sale,  shall also  deliver all
certificates, if any, issued by the

                                      -16-

<PAGE>

Company which  represent  Covered  Shares owned by such Holder  included in such
Tag-Along Sale, duly endorsed for transfer with  signatures  guaranteed,  to the
purchaser in the Tag-Along  Sale, in the manner and at the address  indicated in
the Tag-Along Notice against delivery of the purchase price for such shares.  In
addition,  each Holder, if a participant in the applicable Tag-Along Sale, shall
take all action as GEI or the purchaser in the  Tag-Along  Sale shall request as
necessary to vest in the  purchaser  in the  Tag-Along  Sale all Covered  Shares
owned by such Holder included in such Tag-Along Sale, whether in certificated or
uncertificated  form, free and clear of all liens,  charges and  encumbrances of
any kind.

                  (f) Exempt  Transfers.  The provisions of this Section 8 shall
not  apply to (i) any sale of Common  Stock by GEI in a bona  fide  underwritten
offering of Common Stock pursuant to an effective  registration  statement under
the Act or any bona fide public  distribution of Common Stock by GEI pursuant to
Rule 144  thereunder;  (ii) any bona fide  pledge  by GEI of  Common  Stock to a
commercial  bank,  savings and loan  institution  or any other  similar  lending
institution  as security  for any  indebtedness  to such lender or any sale upon
foreclosure of any such pledge; (iii) any transfer, sale or other disposition of
Common Stock by GEI to one of its Affiliates  (except that (A) prior to any such
disposition,  the party  receiving  such  shares of Common  Stock shall agree in
writing to be bound by the terms of this Agreement  applicable to GEI as if such
transferee were an original party hereto and (B) any such shares of Common Stock
shall  continue to be subject to this  Agreement);  (iv) any  redemption  by the
Company of its Common Stock; or (v) any GEI  Distribution (as defined in Section
13). In the event of any transfer,  sale or other disposition of Common Stock by
GEI to one of its Affiliates,  to the extent  provided in any agreement  between
GEI and such  Affiliate,  such Affiliate  shall have any or all of the rights of
GEI under this Agreement and references in this Agreement to GEI shall be deemed
to be references to such Affiliate.

         9.       Drag-Along Sales.

                  (a) Right to Require Sale. Notwithstanding any other provision
hereof, if GEI agrees to sell 100% of the shares of Common Stock held by it to a
third person who is not an  Affiliate of GEI (a "Third  Party") or if GEI agrees
to sell a portion of its shares pursuant to a transaction in which more than 50%
of the total Common  Stock of the Company will be sold to a Third Party  (either
of such sales, a "Drag-Along  Sale"),  then, upon the demand of GEI, each Holder
hereby  agrees  to sell to such  Third  Party the same  percentage  of the total
number of  Covered  Shares  held by such  Holder  on the date of the  Drag-Along
Notice  (as  defined  below),  as the  number of shares  GEI is  selling  in the
Drag-Along  Sale bears to the total  number of shares held by GEI as of the date
of the Drag-Along Notice (the "Sale  Percentage"),  at the same price and on the
same terms and conditions as GEI has agreed to with such Third Party.

                  (b) Drag-Along Notice. Prior to making any Drag-Along Sale, if
GEI elects to exercise the option described in this Section 9, GEI shall provide
each Holder with written  notice (the  "Drag-Along  Notice") not more than sixty
(60) nor less than twenty (20) days prior to the proposed date of the Drag-Along
Sale (the  "Drag-Along Sale Date").  The Drag-Along  Notice shall set forth: (i)
the  proposed  amount and form of  consideration  to be paid per share of Common
Stock and the terms and conditions of payment  offered by the Third Party;  (ii)
the  aggregate  number of shares of Common Stock held by GEI as of the date that
the Drag-Along  Notice is first delivered,  mailed or sent by courier,  telex or
telecopy to the Holder(s);  (iii) the

                                      -17-

<PAGE>

Sale  Percentage;  (iv) the Drag-Along Sale Date and (v)  confirmation  that the
proposed  Third  Party has agreed to purchase  the  Holder's  Covered  Shares in
accordance with the terms hereof.

                  (c) Authority to Record Transfer/Delivery of Certificates.  On
the  Drag-Along  Sale Date,  each Holder,  if a  participant  in the  applicable
Drag-Along  Sale,  authorizes the Company (or the Company's  transfer  agent, if
any) to record in the  Company's  books and records the  transfer of all of such
Holder's  Covered  Shares  included  in  such  Drag-Along  Sale  which  are  not
represented by one or more certificates issued by the Company,  from such Holder
to the purchaser in the  Drag-Along  Sale.  On the  Drag-Along  Sale Date,  each
Holder,  if a participant in the applicable  Drag-Along Sale, shall also deliver
all  certificates,  if any, issued by the Company which represent Covered Shares
owned by such  Holder  included  in such  Drag-Along  Sale,  duly  endorsed  for
transfer with signatures guaranteed, to the purchaser in the Drag-Along Sale, in
the  manner  and at the  address  indicated  in the  Drag-Along  Notice  against
delivery of the purchase price for such shares.  In addition,  each Holder, if a
participant in the applicable  Drag-Along  Sale, shall take all action as GEI or
the purchaser in the  Drag-Along  Sale shall request as necessary to vest in the
purchaser  in the  Drag-Along  Sale all  Covered  Shares  owned  by such  Holder
included in such Drag-Along  Sale,  whether in  certificated  or  uncertificated
form, free and clear of all liens, charges and encumbrances of any kind.

                  (d)  Consideration.  The  provisions  of this  Section 9 shall
apply regardless of the form of consideration received in the Drag-Along Sale.

         10. Notices.  All notices or other  communications under this Agreement
shall be given in writing  and shall be deemed  duly given and  received  on the
third full business day  following the day of the mailing  thereof by registered
or certified mail or when delivered personally or sent by facsimile transmission
as follows:

                  (a) if to the Company,  at its principal  executive offices at
the time of the giving of such  notice,  or at such other  place as the  Company
shall have  designated by notice as herein provided to GEI and to the Management
Investor and any other Holders, Attention: Chief Executive Officer;

                  (b) if to the  Management  Investor,  at  the  address  of the
Management  Investor  as it  appears  in Annex A or at such  other  place as the
Management  Investor shall have  designated by notice as herein  provided to the
Company and GEI;

                  (c) if to any Holder other than the  Management  Investor,  at
the address of such  Holder as set forth in the stock  records of the Company or
at such other place as such  Holder  shall have  designated  by notice as herein
provided to the Company and GEI; and

                  (d) if to GEI, at its principal  executive offices at the time
of the  giving  of such  notice,  or at  such  other  place  as GEI  shall  have
designated  by notice as herein  provided to the  Company and to the  Management
Investor and any other Holders, Attention: Gregory J. Annick.

         11.  Specific  Performance.  Due to the fact that the securities of the
Company  cannot be readily  purchased  or sold in the open  market and for other
reasons,  the  parties  will be  irreparably  damaged  in the  event  that  this
Agreement is not specifically  enforced.  In the event of a breach or threatened
breach of the terms, covenants and/or conditions of this Agreement by any

                                      -18-

<PAGE>

of the  parties  hereto,  the other  parties  shall,  in  addition  to all other
remedies,  be entitled  (without any bond or other security being required) to a
temporary and/or permanent injunction, without showing any actual damage or that
monetary  damages  would not  provide an  adequate  remedy,  and/or a decree for
specific performance, in accordance with the provisions hereof.

         12.      Miscellaneous.

                  (a) This  writing  constitutes  the  entire  agreement  of the
parties  with  respect to the subject  matter  hereof and may not be modified or
amended  except  by a  written  agreement  signed  by the  Company,  GEI and the
Holders; provided, however, that any of the provisions of this Agreement (except
as hereinafter provided) may be modified,  amended or eliminated by agreement of
the  Company,  GEI and a  majority  in  interest  (on the basis of the number of
"covered  shares"  of Common  Stock  then  owned of all of the  Holders  and all
holders of securities pursuant to agreements in forms  substantially  similar to
this  Agreement,  which  agreement  shall bind each  Holder  whether or not such
Holder has agreed thereto;  provided further,  that no modification or amendment
which would materially  adversely affect the rights of any Holder under Sections
3, 4, 5, 6, 7, 8, 9 or 12(a) of this  Agreement  shall be  effective  as to such
Holder if such Holder shall not have consented in writing  thereto.  Anything in
this Agreement to the contrary notwithstanding, any modification or amendment of
this  Agreement by a written  agreement  signed by, or binding upon,  any Holder
shall be valid and binding  upon any and all persons or entities who may, at any
time, have or claim any rights under or pursuant to this Agreement in respect of
Covered Shares acquired from such Holder.

                  (b) No waiver  of any  breach or  default  hereunder  shall be
considered valid unless in writing,  and no such waiver shall be deemed a waiver
of any subsequent  breach or default of the same or similar nature.  Anything in
this  Agreement to the contrary  notwithstanding,  any waiver,  consent or other
instrument  under or pursuant to this Agreement  signed by, or binding upon, the
Management  Investor or any other Holder shall be valid and binding upon any and
all persons or entities  (other than the Company,  GEI or any  Affiliate of GEI)
who may,  at any  time,  have or claim  any  rights  under or  pursuant  to this
Agreement in respect of Covered Shares acquired from such Holder.

                  (c)  Except  as  otherwise  expressly  provided  herein,  this
Agreement shall be binding upon and inure to the benefit of the Company and GEI,
their  respective  successors  and assigns and the  Management  Investor and the
other Holders and their respective heirs, personal  representatives,  successors
and assigns; provided, however, that nothing contained herein shall be construed
as  granting to any Holder the right to transfer  any Covered  Shares  except in
accordance with this Agreement and any transferee shall hold such Covered Shares
having only those rights and being subject to the  restrictions  provided for in
this Agreement.

                  (d) If any  provision  of this  Agreement  shall be invalid or
unenforceable,  such  invalidity or  unenforceability  shall attach only to such
provision and shall not in any manner affect or render invalid or  unenforceable
any other  severable  provision of this  Agreement,  and this Agreement shall be
carried out as if any such invalid or unenforceable provision were not contained
herein.

                  (e)  The  provisions  of this  Agreement  shall  apply  to all
Covered Shares.

                                      -19-

<PAGE>

                  (f) Except as set forth in Section  11,  arbitration  shall be
the  exclusive  remedy for  resolving  any  dispute or  controversy  between the
Company,  any of its  subsidiaries  or GEI and any Management  Investor or other
Holder.  Such  arbitration  shall be conducted in accordance  with the then most
applicable rules of the American Arbitration  Association.  The arbitrator shall
be  empowered to grant only such relief as would be available in a court of law.
In the  event  of any  conflict  between  this  Agreement  and the  rules of the
American  Arbitration  Association,  the provisions of this  Agreement  shall be
determinative. If the parties are unable to agree upon an arbitrator, they shall
select a single  arbitrator from a list of seven  arbitrators  designated by the
office of the American  Arbitration  Association  having  responsibility for the
city in which the Management Investor last resided while employed by the Company
or its  subsidiaries,  all of whom  shall be  retired  judges  who are  actively
involved  in  hearing  private  cases or  members  of the  National  Academy  of
Arbitrators.  If the  parties are unable to agree upon an  arbitrator  from such
list, they shall each strike names  alternatively  from the list, with the first
to strike being determined by lot. After each party has used three strikes,  the
remaining name on the list shall be the arbitrator. The fees and expenses of the
arbitrator shall initially be borne equally by the parties;  provided,  however,
that each party shall  initially be responsible for the fees and expenses of its
own representatives  and witnesses.  If the parties cannot agree upon a location
for the arbitration,  the arbitrator shall determine the location.  Judgment may
be entered on the award of the arbitrator in any court having jurisdiction.  The
prevailing party in the arbitration proceeding, as determined by the arbitrator,
and in any  enforcement  or other  court  proceedings,  shall be entitled to the
extent  provided  by law to  reimbursement  from the other  party for all of the
prevailing  party's  costs  (including  but  not  limited  to  the  arbitrator's
compensation), expenses and reasonable attorneys' fees.

                  (g) Should any party to this Agreement be required to commence
any  litigation  concerning  any  provision of this  Agreement or the rights and
duties of the parties  hereunder,  the prevailing party in such proceeding shall
be  entitled,  in  addition  to such  other  relief  as may be  granted,  to the
reasonable   attorneys'  fees  and  court  costs  incurred  by  reason  of  such
litigation.

                  (h) The section headings contained herein are for the purposes
of convenience only and are not intended to define or limit the contents of said
sections.

                  (i) Each  party  hereto  shall  cooperate  and shall take such
further  action and shall  execute and deliver such further  documents as may be
reasonably requested by any other party in order to carry out the provisions and
purposes of this Agreement.

                  (j) The Management Investor represents that, if the Management
Investor is married and resides in a community  property  state,  the Management
Investor's spouse has signed the Acknowledgment and Agreement of Spouse relating
to the Management Investor at the end of this Agreement.

                  (k)  Words in the  singular  shall be read  and  construed  as
though in the  plural  and words in the plural  shall be read and  construed  as
though in the singular in all cases where they would so apply.

                                      -20-

<PAGE>

                  (l)  This   Agreement   may  be   executed   in  one  or  more
counterparts, all of which taken together shall be deemed one original.

                  (m) The  Management  Investor  and each  other  Holder  hereby
irrevocably  and  unconditionally  consents to the  jurisdiction of any New York
State court or federal  court of the United  States  sitting in the State of New
York in any action or  proceeding  relating to this  Agreement  and  consents to
service of process in  connection  therewith  by the  delivery of notice to such
Management  Investor's  or  Holder's  address at the address for notices to such
Holder pursuant to this Agreement.

                  (n) This Agreement  shall be deemed to be a contract under the
laws of the  State of New  York and for all  purposes  shall  be  construed  and
enforced in accordance  with the internal  laws of said state without  regard to
the principles of conflicts of law.

         13.      GEI Distributions Exempt.

                  It is expressly  understood and agreed that GEI may distribute
to its partners or other equity  participants,  in accordance  with the terms of
its  limited  partnership  agreement,  all or any  part  of  the  shares  of the
Company's  capital  stock  or  other  Company  securities  held by it (any  such
distribution,  a "GEI Distribution").  Notwithstanding  anything to the contrary
contained in this Agreement, any GEI Distribution shall not constitute a "sale,"
"transfer" or  "disposition"  for any purpose under this  Agreement and shall be
exempt in all respects from the terms and  conditions of this  Agreement.  As an
example,  and without limiting the generality of the foregoing,  it is expressly
understood and agreed that a GEI  Distribution  shall not constitute a Tag-Along
Sale for the  purposes  of  Section  8  hereof.  Further,  it is also  expressly
understood and agreed that, following a GEI Distribution,  (i) the shares of the
Company's capital stock or other Company securities  distributed to the partners
or equity  participants  of GEI shall in no way be subject to this Agreement and
(ii) any  partner  or equity  participant  of GEI which  receives  shares of the
Company's  capital  stock  or  other  Company  securities   pursuant  to  a  GEI
Distribution shall not be required or deemed to become a party to this Agreement
or otherwise be subject to this Agreement.

                                      -21-

<PAGE>

         IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
first date written above.

                                      DIAMOND TRIUMPH AUTO GLASS, INC.

                                      By: /s/ Kenneth Levine
                                         --------------------------
                                      Name: Kenneth Levine
                                      Its:  Co-Chairman & Co-Chief
                                            Executive Officer

                                      GREEN EQUITY INVESTORS II, L.P.

                                      By:  Grand Avenue Capital Partners, L.P.

                                      By:  Grand Avenue Capital Corporation, its
                                             general partner

                                      By: /s/ Gregory Annick
                                         --------------------------
                                      Name: Gregory Annick

                                      Management Investor

                                      By: /s/ Michael Sumsky
                                         --------------------------
                                      Name: Michael Sumsky

                                      -22-

<PAGE>Exhibit 10.3

                             STOCKHOLDERS AGREEMENT

                           DATED AS OF MARCH 31, 1998

                                      among

                         GREEN EQUITY INVESTORS II, L.P.

                                 KENNETH LEVINE,
                                  RICHARD RUTTA

                                       and

                        DIAMOND TRIUMPH AUTO GLASS, INC.

<PAGE>

                             STOCKHOLDERS AGREEMENT

         THIS  STOCKHOLDERS  AGREEMENT (the  "Agreement")  is entered into as of
March 31, 1998, by and among Green Equity Investors II, L.P., a Delaware limited
partnership  (the  "Purchaser"),   Kenneth  Levine  ("Levine"),   Richard  Rutta
("Rutta")(the  foregoing  individuals being sometimes  hereinafter  referred to,
individually,  as an  Executive  and,  collectively,  as the  "Executives")  and
Diamond Triumph Auto Glass, Inc., a Delaware  corporation (the "Company").  Each
of the parties to this  Agreement  (other than the Company) and any other Person
(as defined in Section  4.1) who shall become a party to or agree to be bound by
the terms of this  Agreement  after the date  hereof  is  sometimes  hereinafter
referred to as a "Stockholder".

                                    RECITALS

                  Concurrently  with  the  execution  of  this  Agreement,   the
Company,  the Purchaser and the  Executives  will  consummate  the  transactions
contemplated by that certain Second Amended and Restated Stock Purchase and Sale
Agreement  dated  as of  January  15,  1998,  (the  "Purchase  Agreement").  The
execution  and  delivery  of  this  Agreement  is a  condition  to the  parties'
obligations under the Purchase Agreement.

                  Following the consummation of the transactions contemplated by
the Purchase  Agreement,  Purchaser will own 770,000 shares of Common Stock, par
value $.01 per share,  of the Company (the "Common  Stock") and 28,000 shares of
12% Senior Cumulative  Preferred Stock, with a liquidation  preference of $1,000
per share,  of the  Company  (the  "Preferred  Stock"),  Levine will own 100,000
shares of Common Stock and 3,500  Shares of  Preferred  Stock and Rutta will own
100,000  shares of Common Stock and 3,500 shares of Preferred  Stock.  Shares of
Common  Stock are  collectively  referred to as the "Common  Shares",  shares of
Preferred Stock are collectively referred to as the "Preferred Shares and Common
Shares and Preferred Shares are collectively referred to as the "Shares".

                  The Company  and each of the  Stockholders  desire,  for their
mutual benefit and  protection,  to enter into this Agreement to set forth their
respective  rights and obligations  with respect to their Shares (whether issued
or acquired  hereafter,  including all shares of Common Stock  issuable upon the
exercise of warrants, options or other rights to acquire shares of Common Stock,
or upon the conversion or exchange of any security ("Rights")).

         NOW,  THEREFORE,  in  consideration of the foregoing and for other good
and  valuable  consideration,  the  receipt and  sufficiency  of which is hereby
acknowledged, the parties hereto agree as follows:

                        ARTICLE 1. Election of Directors.

                  So  long  as an  Executive  is an  executive  officer  of  the
Company,  each  Stockholder  shall vote his or its Common Shares in favor of the
election of such Executive as a director of the Company.

                                      -2-

<PAGE>

                       ARTICLE 2. Restrictions on Transfer

         2.1 General Restrictions on Transfer. Each Stockholder agrees that such
Stockholder will not, directly or indirectly, sell, hypothecate, give, bequeath,
transfer,  assign,  pledge or in any other way whatsoever encumber or dispose of
(any such event, a "Transfer")  any Shares now or hereafter at any time owned by
such Stockholder (or any interest therein) to another Person ("Transferee"),  to
the extent such Transfer is prohibited by this Agreement.  The Company shall not
transfer  upon its books any Shares to any Person to the  extent  prohibited  by
this Agreement and any purported  transfer in violation hereof shall be null and
void and of no effect.  Each Executive  represents and warrants to the Purchaser
and the Company that, except as permitted by Section 2.4 and Article 3, there is
not any plan or  intention on the part of such  Executive  to sell,  exchange or
otherwise  dispose  of the Shares  owned by such  Executive  on the date  hereof
following the  consummation  of the  transactions  contemplated  by the Purchase
Agreement.

         2.2 Compliance with Securities Laws. No Stockholder  shall Transfer any
Shares,  and the Company shall not transfer on its books any Shares,  unless (a)
the  Transfer is  pursuant  to an  effective  registration  statement  under the
Securities  Act of 1933, as amended,  or any similar  federal  statute,  and the
rules and regulations of the Commission (as defined in Section 4.1)  thereunder,
all as the same shall be in effect at the time (the "Securities  Act") and is in
compliance  with any  applicable  state  securities or blue sky laws or (b) such
Stockholder shall have furnished the Company with an opinion of counsel,  to the
extent  reasonably  required by the Company,  which opinion and counsel shall be
reasonably  satisfactory to the Company, to the effect that no such registration
is required because of the availability of an exemption from registration  under
the  Securities  Act;  provided  that any Transfer by a  Stockholder  which is a
state-sponsored  employee  benefit  plan to a successor  trust or  fiduciary  or
pursuant to a  statutory  reconstitution  shall be  expressly  permitted  and no
opinions of counsel shall be required in connection  therewith.  As used in this
Agreement,  the term "affiliate"  means,  with respect to any Person,  any other
Person  directly  or  indirectly  controlling,  controlled  by, or under  common
control with such Person.  For purposes of this  Agreement,  the term "control",
(including, with correlative meanings, the terms "controlling", "controlled by",
and "under common control with"), as used with respect to any Person, shall mean
the  possession,  directly  or  indirectly,  of the power to direct or cause the
direction  of the  management  or policies of such Person,  whether  through the
ownership of voting securities or by contract or otherwise.

         2.3 Agreement to be Bound. No Transfer of Shares by a Stockholder shall
be effective (and the Company shall not transfer on its books any Shares) unless
(i) the  certificates  representing  such Shares issued to the Transferee  shall
bear the legend  provided in Section  7.4, if required by such  Section 7.4, and
(ii) the  Transferee  shall have  executed and  delivered  to the Company,  as a
condition  precedent to such Transfer,  an instrument or instruments in form and
substance  satisfactory to the Company  confirming that the Transferee agrees to
be bound by the terms of this  Agreement and accepts the rights and  obligations
set forth hereunder,  provided,  however,  that the conditions set forth in this
Section  2.3  shall not apply to any sale of  Shares  pursuant  to an  effective
registration  statement  under the Securities Act or,  provided such sale is (x)
not to an affiliate  of the Company and (y) not made prior to a Public  Offering
Event (as defined in Section  2.4.5),  pursuant to Rule 144 under the Securities
Act,  as such  Rule may be

                                      -3-

<PAGE>

amended from time to time, or any other similar regulation  hereafter adopted by
the SEC ("Rule 144").

         2.4      Tag-Along Rights for the Executive Parties.

                  2.4.1 Right to  Participate  in Sale.  (a)  Purchaser  and its
affiliates are sometimes  referred to in this  Agreement,  collectively,  as the
"Purchaser  Parties" and,  individually,  as a "Purchaser Party." The Executives
and their  respective  spouses,  descendants and ancestors and any trusts solely
for the benefit of any or all of the foregoing are sometimes referred to in this
Agreement,  collectively,  as the "Executive Parties" and,  individually,  as an
"Executive Party." If at any time any Purchaser Parties propose to enter into an
agreement (or substantially contemporaneous agreements,  whether or not with the
same or affiliated parties) to sell or otherwise dispose of for value any Common
Shares in one or more related  transactions which will result in the transfer of
at least ten percent (10%) of the outstanding  Common Shares (such sale or other
disposition  for value  being  referred  to as a  "Tag-Along  Sale"),  then such
Purchaser  Parties  shall afford the  Executive  Parties  (each  individually  a
"Tag-Along  Stockholder" and,  collectively,  the "Tag-Along  Stockholders") the
opportunity to participate  proportionately in such Tag-Along Sale in accordance
with  this  Section  2.4.  The  number  of Common  Shares  that  each  Tag-Along
Stockholder  will be entitled to include in such Tag-Along Sale (the  "Tag-Along
Allotment")  shall be determined by multiplying  (i) the number of Common Shares
held by such  Tag-Along  Stockholder  as of the  close  of  business  on the day
immediately prior to the Tag-Along Notice Date (as hereinafter  defined) by (ii)
a fraction, the numerator of which shall equal the number Common Shares proposed
by the  Purchaser  Parties to be sold or  otherwise  disposed of pursuant to the
Tag-Along  Sale and the  denominator  of which shall  equal the total  number of
Common Shares that are  beneficially  owned by the  Purchaser  Parties as of the
close of business on the day immediately prior to the Tag-Along Notice Date (the
"Purchaser Fraction");  provided,  however, that if any of the Executive Parties
fails to elect to participate in a Tag-Along  Sale,  Purchaser shall give notice
of such failure to the other Tag-Along  Stockholders.  Such notice shall be made
by telephone and confirmed in writing within two (2) days.  The other  Tag-Along
Stockholders  shall have  three (3) days from the date such  notice was given to
agree to sell their pro rata share of any unsold  portion.  For purposes of this
Section  2.4.1, a Tag-Along  Stockholder's  pro rata share of any unsold portion
shall be equal to the number of shares  obtained by dividing  (A) the  Purchaser
Fraction  times the total number of Common Shares that are held by the Executive
Parties that are not  participating  in the Tag-Along  Sale by (B) the number of
Tag-Along Stockholders that are participating in the Tag-Along Sale.

                  2.4.2  Sale  Notice.  The  relevant  Purchaser  Parties  shall
provide each  Tag-Along  Stockholder  and the Company  with written  notice (the
"Tag-Along Sale Notice") not more than sixty (60) days nor less than thirty (30)
days prior to the  proposed  date of the  Tag-Along  Sale (the  "Tag-Along  Sale
Date"). Each Tag-Along Sale Notice shall be accompanied by a copy of any written
agreement  relating to the Tag-Along Sale and shall set forth:  (i) the name and
address of each proposed Transferee of Common Shares in the Tag-Along Sale; (ii)
the  number  of Common  Shares  proposed  to be  Transferred  by such  Purchaser
Parties; (iii) the proposed amount and form of consideration to be paid for such
Common Shares and the terms and  conditions of payment  offered by each proposed
Transferee;  (iv) the  aggregate  number of Common  Shares held of record by the
Purchaser  Parties as of the close of business on the day

                                      -4-

<PAGE>

immediately  prior to the date of the Tag-Along  Notice (the  "Tag-Along  Notice
Date");  (v)  the  Tag-Along  Stockholder's  Tag-Along  Allotment  assuming  the
Tag-Along  Stockholder  elected  to sell the  maximum  number of  Common  Shares
possible;  (vi) confirmation  that the proposed  Transferee has been informed of
the  "Tag-Along  Rights"  provided for herein and has agreed to purchase  Common
Shares from any Tag-Along  Stockholder in accordance with the terms hereof;  and
(vii) the Tag-Along Sale Date.

                  2.4.3 Tag-Along Notice. Any Tag-Along  Stockholder  wishing to
participate in the Tag-Along Sale shall provide  written notice (the  "Tag-Along
Notice") to the relevant  Purchaser Parties no less than fifteen (15) days prior
to the Tag-Along Sale Date.  The Tag-Along  Notice shall set forth the number of
Common Shares that such Tag-Along Stockholder elects to include in the Tag-Along
Sale, which shall not exceed such Tag-Along  Stockholder's  Tag-Along Allotment.
The Tag-Along  Notice given by any Tag-Along  Stockholder  shall constitute such
Tag-Along Stockholder's binding agreement to sell the Common Shares specified in
the  Tag-Along  Notice on the terms and  conditions  applicable to the Tag-Along
Sale; provided,  however, that in the event that there is any material change in
the terms and  conditions  of such  Tag-Along  Sale  applicable to the Tag-Along
Stockholder  (including,  but not limited to, any decrease in the purchase price
that occurs  other than  pursuant to an  adjustment  mechanism  set forth in the
agreement relating to the Tag-Along Sale) after such Tag-Along Stockholder gives
its Tag-Along Notice, then, notwithstanding anything herein to the contrary, the
Tag-Along Stockholder shall have the right to withdraw from participation in the
Tag-Along Sale with respect to all of its Common Shares affected thereby. If the
proposed Transferee does not consummate the purchase of all of the Common Shares
requested to be included in the Tag-Along  Sale by any Tag-Along  Stockholder on
the same terms and  conditions  applicable to the Purchaser  Parties,  then such
Purchaser  Parties shall not  consummate the Tag-Along Sale of any of its Common
Shares to such  Transferee,  unless the Common Shares of such Purchaser  Parties
and the  Tag-Along  Stockholders  to be sold are  reduced or limited pro rata in
proportion to the respective  number of Common Shares  actually sold in any such
Tag-Along  Sale and all other terms and conditions of the Tag-Along Sale are the
same for such Purchaser Parties and the Tag-Along Stockholders.

         If a Tag-Along Notice from any Tag-Along Stockholder is not received by
such Purchaser  Parties prior to the ten (10) day period specified  above,  such
Purchaser  Parties shall have the right to consummate the Tag-Along Sale without
the  participation  of  such  Tag-Along  Stockholder,  but  only  on  terms  and
conditions which are no more favorable in any material respect to such Purchaser
Parties  (and,  in any  event,  at no greater a  purchase  price,  except as the
purchase  price  may be  adjusted  pursuant  to the  agreement  relating  to the
relevant Tag-Along Sale) than as stated in the Tag-Along Sale Notice and only if
such  Tag-Along  Sale occurs on a date within  sixty (60) days of the  Tag-Along
Sale Date.  If such  Tag-Along  Sale does not occur  within  such sixty (60) day
period,  the  Common  Shares  that were to be  subject  to such  Tag-Along  Sale
thereafter shall continue to be subject to all of the restrictions  contained in
this Section 2.4.

                  2.4.4  Delivery of  Certificates.  On the Tag-Along Sale Date,
each Tag-Along  Stockholder  shall deliver a certificate or certificates for the
Common Shares to be sold by such Tag-Along  Stockholder  in connection  with the
Tag-Along Sale, duly endorsed for transfer with

                                      -5-

<PAGE>

signatures  guaranteed,  to the  Transferee  in the  manner  and at the  address
indicated in the Tag-Along  Notice  against  delivery of the purchase  price for
such Common Shares.

                  2.4.5 Exempt  Transfers.  The  provisions  of this Section 2.4
shall not apply:

                  (i)   to any sale or other disposition of Common Shares by and
         among Purchaser Parties;

                  (ii)  to any sale of Common  Shares to the public  pursuant to
         an  effective  registration  statement  under  the  Securities  Act  or
         pursuant to Rule 144;

                  (iii) from and after a Public Offering Event. For the purposes
         of this Agreement,  a "Public Offering Event" shall mean the first date
         after which at least twenty percent (20%) of the Company's  outstanding
         shares of Common Stock is publicly held and such Common Stock is listed
         or admitted to trading on a national  securities  exchange or quoted on
         the National Association of Securities Dealers,  Inc.'s National Market
         System or Small Capitalization System.

                  (iv)  any bona fide  pledge of Common  Shares to a  commercial
         bank,  savings  and  loan  institution  or any  other  similar  lending
         institution as security for any  indebtedness to such lender,  provided
         that, prior to any such pledge,  the Executives are informed in writing
         of such pledge and the pledgee shall deliver to the Company its written
         agreement, in form and substance satisfactory to the Company, that upon
         any foreclosure such pledgee shall comply with the terms of Section 2.3
         of this Agreement; or

                  (v)   to any sale or other disposition of Preferred Shares.

         2.5  Cooperation  by the Company.  The Company will provide  reasonable
assistance  to any Executive  Party or any  Purchaser  Party seeking to sell its
Shares,  provided  that  the  Company  shall  not be  required  to  provide  any
confidential  information  to any  prospective  purchaser who has not executed a
confidentiality  agreement in form reasonably  satisfactory to the Company.  Any
reasonable out-of-pocket costs to the Company of providing such assistance shall
be paid pro rata by each  Stockholder  seeking to sell its  Shares.  The Company
will also  cooperate with any Executive  Party or any Purchaser  Party in having
all stop transfer  instructions or notations and  restrictive  legends lifted in
connection  with the sale (other than to an  affiliate of the Company) of Shares
pursuant to Rule 144 promulgated under the Securities Act; provided that in such
a case the selling Stockholder shall be required to provide the Company with the
opinion provided for in Section 2.2(b).

         2.6 Improper  Transfer.  Any attempt to Transfer or otherwise  encumber
any Shares in violation of this Agreement shall be null and void and neither the
Company  nor any  transfer  agent of such  Shares  shall give any effect to such
attempted Transfer or encumbrance in its stock records.

         2.7  Involuntary  Transfer.  In the  case of any  Transfer  of title or
beneficial ownership of Shares upon default, foreclosure,  forfeit, court order,
or  otherwise  than by a  voluntary  decision on the part of a  Stockholder  (an
"Involuntary  Transfer"),  such Stockholder (or his legal

                                      -6-

<PAGE>

representatives)  shall  promptly  (but in no event later than two (2)  Business
Days after such  Involuntary  Transfer)  furnish  written  notice to the Company
indicating  that the Involuntary  Transfer has occurred,  specifying the name of
the  Person  to whom  such  Shares  have  been  transferred,  giving a  detailed
description  of the  circumstances  giving  rise to, and stating the legal basis
for, the Involuntary Transfer.

         2.8      First Option Rights.

                  2.8.1 First Option.  (a) No Executive Party shall Transfer any
Shares except as specifically  permitted by this Section 2.8. If at any time any
Executive  Party (a  "Selling  Executive  Party")  desires to sell or  otherwise
dispose  of for  value  all or any  part of the  Shares  held  by  such  Selling
Executive  Party,  and such  Selling  Executive  Party  shall have  received  an
irrevocable  and  unconditional  bona fide arm's length written offer (the "Bona
Fide Offer") for the purchase of such Shares for consideration consisting solely
of cash from any third party  unaffiliated with such Selling Executive Party (an
"Outside Party"),  the Selling Executive Party shall provide written notice (the
"Sale  Notice")  to  each of (i)  Purchaser  (together  with  its  assigns,  the
"Purchaser Buyer") and (ii) the Company (each of Purchaser Buyer and the Company
a "Potential  Buyer") setting forth such desire to sell or otherwise  dispose of
for value such Shares,  which Sale Notice shall be accompanied by a photocopy of
the  original  Bona Fide Offer and shall set forth at least the name and address
of the Outside  Party and the price and terms of such Bona Fide Offer.  Upon the
giving  of  such  Sale  Notice,  each  Potential  Buyer  shall,  subject  to the
priorities  set forth  below,  have the  option  (which  option  (the  "Purchase
Option"), in the case of Purchaser only, shall be assignable at Purchaser's sole
discretion) to purchase all, but not less than all, of such Shares  specified in
the Sale Notice, on the same terms and conditions,  including but not limited to
the offer price for the Shares,  of the Bona Fide Offer.  Each  Potential  Buyer
shall have thirty (30) days from  receipt of the Sale Notice to provide  written
notice (the "Acceptance  Notice") to such Selling  Executive Party of its desire
to exercise such Purchase Option. If more than one Potential Buyer shall deliver
an Acceptance  Notice within such thirty (30) day period,  the priority as among
the Potential Buyers to match the Bona Fide Offer and purchase such Shares shall
be, to the extent such  Potential  Buyers  have  delivered  Acceptance  Notices,
first, the Purchaser Buyer and, second, the Company.

                  If a  Potential  Buyer or  Potential  Buyers,  as  applicable,
elects to purchase, in the aggregate, all of the Shares covered by the Bona Fide
Offer on the terms and  conditions  set forth in the Sale Notice,  the Potential
Buyer(s)  entitled to purchase  such Shares  (the  "Chosen  Buyer(s)")  shall be
determined in  accordance  with the  priorities  set forth above and such Chosen
Buyer(s) shall be obligated to purchase,  and such Selling Executive Party shall
be obligated to sell,  such Shares at the price and terms  specified in the Sale
Notice.  The closing of the purchase by the Chosen  Buyer(s)  shall be held on a
Business  Day  within  sixty  days (60) days  after the  giving of the  relevant
Acceptance  Notice, at the principal offices of the Chosen Buyer(s),  or at such
other time and place as may be mutually agreed to by the Chosen Buyer(s) and the
Selling Executive Party.

                  If no  Acceptance  Notice(s)  is (are)  delivered  within  the
periods  specified above by one or more Potential  Buyers,  as applicable,  with
respect  to all (but not  less  than  all) of the  Shares  included  in the Sale
Notice,  the Selling  Executive Party shall, upon compliance with the

                                      -7-

<PAGE>

provisions of Section 2.3, have the right to consummate the sale of all (but not
less than all) of the Shares covered by the Sale Notice to the Outside Party but
only at the price and upon terms and conditions no less favorable to the Selling
Executive  Party than those  contained  in the Sale  Notice  (provided  that the
purchase price must be payable solely in cash) and only if such sale occurs on a
date within sixty (60) days of the date of the Sale Notice;  provided,  however,
that in the event the Selling  Executive  Party has not so transferred  all (but
not less than all) of such Shares to the Outside  Party  within such  ninety-day
period,  then such Shares  thereafter shall continue to be subject to all of the
restrictions contained in this Agreement.

                  2.8.2 No Waiver. Any election in any instance by any Potential
Buyer not to  exercise  its  option  rights  under  this  Section  2.8 shall not
constitute a waiver of such rights with respect to any other  proposed  Transfer
of Shares.

                  2.8.3 Exempt  Transfers.  The  provisions  of this Section 2.8
shall not apply:

                  (i) to any Transfer of Shares to Levine,  Rutta, the spouse of
         either of them,  any direct lineal  descendant or ancestor of either of
         them  or  any  trust  solely  for  the  benefit  of  any  or all of the
         foregoing,  provided  that each of the  following  conditions  shall be
         satisfied:

                                    (A) after  giving  effect to such  Transfer,
                           each of Levine and Rutta shall be the sole beneficial
                           and  record  owner  of  a  number  of  Common  Shares
                           representing  not less than five  percent (5%) of the
                           then issued and outstanding Common Shares;

                                    (B) after  giving  effect to such  Transfer,
                           sole voting  power with  respect to such  Transferred
                           Shares shall be held by Levine and/or Rutta; and

                                    (C)  the  Transferee  of  such   Transferred
                           Shares  shall  have  executed  and  delivered  to the
                           Company,  as a condition  precedent to such Transfer,
                           an  instrument or  instruments  in form and substance
                           satisfactory  to  the  Company  confirming  that  the
                           Transferee  agrees  to be bound by the  terms of this
                           Agreement and accepts the rights and  obligations set
                           forth in this Agreement; or

                           (ii) to any sale of Shares by an  Executive  Party to
         the public  pursuant to an effective  registration  statement under the
         Securities Act.

                          ARTICLE 3. Drag-Along Sales.

         3.1 Right of  Purchaser  to  Require  Sale.  Notwithstanding  any other
provision of this Agreement,  if some or all Purchaser  Parties (the "Drag-Along
Sellers")  agree  to  sell  or  otherwise  dispose  of (or  cause  to be sold or
otherwise  disposed of) for value all or substantially  all of the Common Shares
and/or  Preferred Shares then owned by the Purchaser  Parties,  in one in one or
more related  transactions  (a  "Drag-Along  Sale"),  to a third Person or third
Persons  who are not  affiliates  of any of the  Drag-Along  Sellers  (a  "Third
Party"),  then,  upon the demand of

                                      -8-

<PAGE>

a majority of the  Drag-Along  Sellers,  the  Executive  Parties (the  "Required
Sellers")  shall be required to sell to such Third Party all,  but not less than
all of the shares of Common Stock and/or Preferred Stock, as applicable, if any,
then held by them, at the same price and on the same terms and conditions as the
Drag-Along Sellers have agreed to with such Third Party.

         3.2  Drag-Along  Notice.  Prior to  making  any  Drag-Along  Sale,  the
Drag-Along  Sellers shall  promptly  provide each  Required  Seller with written
notice (the "Drag-Along  Notice") not more than thirty (30) or less than fifteen
(15) days prior to the proposed  date of the  Drag-Along  Sale (the  "Drag-Along
Sale Date").  The Drag-Along Notice shall set forth: (i) the name and address of
the Third  Party;  (ii) the name and  address of each  member of the  Drag-Along
Sellers;  (iii) the  proposed  amount and form of  consideration  to be paid per
Common  Share and/or  Preferred  Share and the terms and  conditions  of payment
offered  by the Third  Party;  (iv) the number of Common  Shares  and  Preferred
Shares held of record as of the close of business on the date of the  Drag-Along
Sale Notice (the  "Drag-Along  Notice Date") by the Required  Seller to whom the
notice is sent; (v) the aggregate  number of Common Shares and Preferred  Shares
held of record as of the Drag-Along Notice Date by the Drag-Along Sellers;  (vi)
confirmation that the Drag-Along Sellers are selling all or substantially all of
the aggregate  number of Common Shares and/or Preferred Shares then held by them
to the Third Party; (vii) the Drag-Along Sale Date; and (viii) confirmation that
the proposed Third Party has agreed to purchase the Required  Sellers' shares of
Common Stock and/or Preferred Stock, as applicable, in accordance with the terms
hereof.

         3.3  Delivery  of  Certificates.  On the  Drag-Along  Sale  Date,  each
Required  Seller shall  deliver a  certificate  or  certificates  for all of its
shares of Common Stock, and/or Preferred Stock, as applicable, duly endorsed for
transfer with  signatures  guaranteed,  to such Third Party in the manner and at
the address  indicated in the Drag-Along Notice against delivery of the purchase
price for such Required Seller's shares of Common Stock.

         3.4  Consideration.  The  provisions  of this  Section  3  shall  apply
regardless of the form of consideration received in the Drag-Along Sale.

         3.5  Cooperation.  The Executive  Parties shall cooperate in good faith
with  the  Drag-Along  Sellers  in  connection  with  the  consummation  of  the
Drag-Along Sale.

                         ARTICLE 4. Registration Rights.

         4.1      Definitions.

                  "Commission"  means the Securities and Exchange  Commission or
any other federal agency at the time administering the Securities Act.

                  "Exchange Act" means the  Securities  Exchange Act of 1934, as
amended,  or any similar federal  statute,  and the rules and regulations of the
Commission (as defined in Section 4.1) thereunder.

                  "Executive  Holder"  means a Holder of  Registrable  Executive
Shares,  including  a  Transferee  of  Registrable  Executive  Shares if (i) the
Transfer to such  Transferee is not prohibited

                                      -9-

<PAGE>

by this Agreement,  and (ii) the Shares Transferred to such Transferee  continue
to be Registrable Shares.

                  "Holder"  means a Holder of  Registrable  Shares.  A Person is
deemed  to  be  a  Holder  of  Registrable  Shares  whenever  such  Person  owns
Registrable  Shares;  provided,  however,  that unless the Company is  otherwise
notified by the Holder of Registrable  Shares,  the Holder of Registrable Shares
shall be deemed to be that  Person  set  forth on the books and  records  of the
Company or the registrar for such Registrable Shares.

                  "Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or
government or other agency or political subdivision thereof.

                  "Purchaser  Holder"  means a Holder of  Registrable  Purchaser
Shares,  including  a  Transferee  of  Registrable  Purchaser  Shares if (i) the
Transfer to such  Transferee is not prohibited by this  Agreement,  and (ii) the
Shares Transferred to such Transferee continue to be Registrable Shares.

                  "Registrable  Purchaser  Shares"  means  the  shares of Common
Stock  issued  pursuant to the Purchase  Agreement to Purchaser or  subsequently
acquired by any  Purchaser  Party (and any  securities  issued or issuable  with
respect to such Common  Stock by way of stock  dividends  or stock  splits or in
connection   with   a   combination   of   shares,   recapitalization,   merger,
consolidation, or other reorganization or otherwise); and "Registrable Executive
Shares"  means the shares of Common Stock owned by either  Executive on the date
hereof  immediately  following  the  Closing  under the  Purchase  Agreement  or
subsequently  acquired  by any  Executive  Party (and any  securities  issued or
issuable  with respect to such Common  Stock by way of stock  dividends or stock
splits or in connection with a combination of shares, recapitalization,  merger,
consolidation,  or other  reorganization or otherwise)  (collectively,  together
with the Registrable  Purchaser  Shares,  the "Registrable  Shares");  provided,
however,  that any such  shares will cease to be  Registrable  Shares when (i) a
registration  statement  covering  such  Registrable  Shares  has been  declared
effective  and such  Registrable  Shares have been  disposed of pursuant to such
effective   registration   statement,   or  (ii)  such  Registrable  Shares  are
distributed to the public pursuant to Rule 144.

                  "Selling  Holder"  means,  with  respect  to any  registration
statement, any Holder whose Registrable Shares are included therein.

         4.2      Demand Registrations.

                  4.2.1    Number of Registrations.

                  (a)  Purchaser  Holders'  Demand  Rights.  Commencing  on  the
earlier of (i) the date that is three (3) months after a Public  Offering Event,
and (ii) the second anniversary of the date of this Agreement, Purchaser Holders
holding an aggregate  number of Registrable  Purchaser  Shares at least equal to
twenty percent (20%) of the number of Registrable  Purchaser  Shares on the date
hereof shall be entitled to make written  request (a "Demand") of the Company to
register all or part of their Registrable  Purchaser Shares under the Securities
Act

                                      -10-

<PAGE>

(including,  but not limited to, a shelf registration under Rule 415 promulgated
under the Securities Act) (a "Demand Registration"); provided, however, that not
more than an  aggregate  of two (2)  Demand  Registrations  with  respect to the
Registrable  Purchaser Shares may be made pursuant to the rights granted by this
Section  4.2.1(a);  and  provided,  further that if one or more of the Purchaser
Parties have not registered all or part of their Registrable  Shares through the
first  Demand  Registration,  then  one or more  Purchaser  Holders  holding  an
aggregate  number of  Registrable  Purchaser  Shares at least  equal to  fifteen
percent (15%) of the  Registrable  Purchaser  Shares on the date hereof shall be
entitled to make the second Demand; and provided,  further that the first Demand
Registration  must cover an aggregate number of Registrable  Purchaser Shares at
least equal to twenty-five percent (25%) of the number of Registrable  Purchaser
Shares on the date  hereof  and the  second  Demand  Registration  must cover an
aggregate  number  of  Registrable  Purchaser  Shares  at least  equal to twenty
percent (20%) of the number of Registrable Purchaser Shares on the date hereof.

                  (b)  Selection  of   Underwriter.   Any  Demand   Registration
hereunder shall be on any  appropriate  form under the Securities Act permitting
registration of such Registrable  Shares for resale by the Purchaser  Holders in
the  manner  or  manners  designated  by them  (including,  without  limitation,
pursuant to one or more  underwritten  offerings).  The determination of whether
the  offering  will  involve an  underwritten  offering,  and the  selection  of
investment bankers and managers,  if any, and counsel,  shall be made by Holders
of a  majority  of the  Registrable  Purchaser  Shares  to be  included  in such
registration,  provided,  however,  that the selection of investment bankers and
managers,  if any, and counsel so selected shall be reasonably  satisfactory  to
the Company.  If  requested,  the Company  shall enter into an  underwriting  or
purchase  agreement with an investment  banking firm in connection with a Demand
Registration, containing representations, warranties, indemnities and agreements
then  customarily  included  in  underwriting  or  purchase  agreements  by such
underwriter with respect to secondary distributions of securities.

                  4.2.2  Registration.  The  Company  shall file a  registration
statement with respect to each Demand  Registration  and use its best efforts to
cause the same to be declared  effective  as promptly as  practicable  following
such Demand, but not later than one hundred twenty (120) days thereafter. Unless
all of the Purchaser  Registrable  Shares covered by the registration  statement
have earlier been sold or withdrawn  from sale,  the Company shall keep any such
Registration  Statement  effective  for a period of at least one hundred  eighty
(180) days after such registration  statement is first declared effective plus a
period equal to (x) any period during which the Selling  Holders are  prohibited
from  making  sales  because of any stop  order,  injunction  or other  order or
requirement of the Commission or any other governmental agency or court plus (y)
any Demand  Suspension  Period (as defined  below) plus (z) any holdback  period
pursuant  to  Section  4.6 that  occurs  while  the  registration  statement  is
effective (the "Demand  Period") and a  registration  will not count as a Demand
Registration  unless it is  declared  effective  by the  Commission  and remains
effective  until the  earlier of such time as all of the  Purchaser  Registrable
Shares included in such  registration have been sold or disposed of or withdrawn
from sale by the Selling  Holders or the  expiration of the Demand Period or, if
the  registration  remains  effective for a shorter period,  the Selling Holders
have sold at least eighty percent (80%) of their  Purchaser  Registrable  Shares
included in such Demand  Registration.  In addition,  a request for registration
shall not be deemed to constitute a Demand  Registration  if: (i) the conditions
to

                                      -11-

<PAGE>

closing  specified in the purchase  agreement or underwriting  agreement entered
into in connection with such Demand Registration are not satisfied other than by
reason  of some act or  omission  by the  Purchaser  Holders  that  are  Selling
Holders;  (ii) the Company voluntarily takes any action that would result in the
Selling Holders not being able to sell such  Registrable  Shares covered thereby
during the Demand  Period;  (iii)  after it has become  effective,  such  Demand
Registration  becomes  subject to any stop order,  injunction  or other order or
requirement  of the  Commission or other  governmental  agency or court and such
order,  injunction or requirement is not promptly  withdrawn or lifted, and such
Demand  Registration has not otherwise  remained effective for the Demand Period
(including  effective  periods  both before and after the order,  injunction  or
requirement  is made or  imposed);  or (iv) such  Demand  Registration  does not
involve an  underwritten  offering  and the  Purchaser  Holders that are Selling
Holders  determine not to proceed  following any delay imposed  hereunder by the
Company;  provided,  however, that prior to such a delay under this clause (iv),
the  Purchaser  Holders that are Selling  Holders have not sold more than eighty
percent  (80%) of the  Purchaser  Registrable  Shares  included  in such  Demand
Registration. Notwithstanding the foregoing, the Company may, at any time, delay
the filing or delay or suspend the effectiveness of the Demand  Registration or,
without suspending such effectiveness,  instruct the Selling Holders not to sell
any securities  included in the Demand  Registration,  if the Company shall have
determined  in good faith (as evidenced by a Board  resolution  delivered to the
Selling  Holders) that proceeding with the Demand  Registration at such time may
have a  material  adverse  effect  on the  Company  or the  Company  shall  have
determined  upon the advice of counsel that it would be required to disclose any
actions  taken by the  Company  in good  faith and for valid  business  reasons,
including without  limitation,  the acquisition or divestiture of assets,  which
disclosure may have a material  adverse effect on the Company or on such actions
(a "Demand  Suspension  Period"),  by providing the Selling Holders with written
notice of such Demand Suspension  Period and the reasons  therefor.  The Company
shall use its best  efforts to provide  such notice at least ten (10) days prior
to the commencement of such a Demand Suspension Period; provided,  however, that
in  any  event  the  Company  shall  provide  such  notice  no  later  than  the
commencement of such Demand Suspension Period; and provided, further, that in no
event shall the Demand  Suspension  Periods exceed one hundred twenty (120) days
in any three hundred sixty (360) day period.

                  The  Company  further  agrees  to  supplement  or  amend  such
registration statement with respect to such Demand Registration,  as required by
the registration form utilized by the Company or by the instructions  applicable
to such  registration  form or by the  Securities  Act for the  registration  of
securities or as reasonably  requested (which request shall result in the filing
of a supplement or amendment  subject to approval thereof by the Company,  which
approval  shall  not be  unreasonably  withheld)  by any  Selling  Holder or any
managing  underwriter  of Registrable  Shares to which such Demand  Registration
relates,  and the  Company  agrees to furnish to the  Selling  Holders  (and any
managing  underwriter)  copies,  in  substantially  the form proposed to be used
and/or filed, of any such supplement or amendment prior to its being used and/or
filed  with  the   Commission.   The  Company  shall  amend  or  supplement  the
registration  statement  with  respect  to  such  Demand  Registration  no  less
frequently than every forty five (45) days to update the list of Selling Holders
pursuant to written requests by such Holders.

                  4.2.3 Inclusion of Registrable Shares. Any written request for
a Demand  shall  specify  the  number  of  Purchaser  Registrable  Shares  to be
registered and the intended methods of

                                      -12-

<PAGE>

disposition  thereof.  Within ten (10) days after  receipt of such  Demand,  the
Company shall give written notice of such registration request to all Holders of
Purchaser  Registrable  Shares  which have not made the Demand,  and the Company
shall include in such registration all Purchaser Registrable Shares with respect
to which the Company has received written requests for inclusion  therein within
fifteen  (15) days  after  the date on which  such  notice  is given.  Each such
request shall also specify the aggregate number of Purchaser  Registrable Shares
to be  registered.  The  Company may also  include in such  Demand  Registration
shares of Common Stock for the account of the Company and any other  Persons who
hold shares of Common Stock.

                  4.2.4   Priority   on  Demand   Registrations.   If  a  Demand
Registration is an underwritten  registration  and the managing  underwriters of
such offering  determine that the aggregate number of (i) Purchaser  Registrable
Shares of the Selling  Holders  exercising  their rights to  participate  in the
Demand Registration on a demand basis, pursuant to this Section 4.2; (ii) Shares
of the  Company;  and  (iii)  Common  Shares of any other  Persons  entitled  to
participate in such Demand Registration, in each case proposed to be included in
such  registration  statement,  exceeds the maximum number of Common Shares that
can  reasonably  be expected to be sold within a price range  acceptable  to the
Company and the Purchaser Holders that are the Selling Holders,  then the number
of shares to be offered  for the  account of the  Company and for the account of
all such other  Persons,  other than  holders of  Purchaser  Registrable  Shares
participating  on a demand basis,  participating in such  registration  shall be
reduced or limited pro rata (and to zero,  if  necessary)  in  proportion to the
respective  number of Common  Shares  requested to be  registered  to the extent
necessary to reduce the total number of Common  Shares  requested to be included
in such  registration  statement to the maximum number of Common Shares that can
reasonably  be  expected to be included  therein  and still  satisfy  such price
requirement.  If the foregoing  market  "cutback"  does not reduce the aggregate
number of Common Shares proposed to be included in the registration statement to
the maximum  number of Common Shares that can  reasonably be expected to be sold
within the price range acceptable to the Company and the Purchaser  Holders that
are Selling Holders,  the Company shall include in such registration,  Purchaser
Registrable  Shares of such  Selling  Holders  pro rata  among all such  Selling
Holders  on the  basis of the  number  of  Purchaser  Registrable  Shares of the
Company  requested to be included by all such Selling  Holders.  Any request for
registration  with respect to which such a market "cutback" with respect to such
Selling Holders occurs shall be deemed to constitute a Demand  Registration  for
all  purposes  of this  Article 4;  provided,  however,  that if any such market
"cutback"  occurs with  respect to a Demand  Registration  and all such  Selling
Holders are not able to sell at least eighty  percent  (80%) of the  Registrable
Shares which such Holders proposed to sell pursuant to such Demand Registration,
then such request for registration  will not count against the number of Demands
to which the Purchaser Holders are entitled pursuant to Section 4.2 hereof.

                  4.2.5 Compliance. Notwithstanding any other provisions hereof,
the  Company  shall use its best  efforts  to ensure  that (i) any  registration
statement  filed in  connection  with a Demand  Registration,  and any amendment
thereto,  and any prospectus forming a part thereof, and any supplement thereto,
complies in all  material  respects  with the  Securities  Act and the rules and
regulations thereunder, (ii) any registration statement filed in connection with
a Demand  Registration,  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

                                      -13-

<PAGE>

or  necessary  to make the  statements  therein  not  misleading  and  (iii) any
prospectus forming part of any registration statement filed in connection with a
Demand Registration,  and any supplement to such prospectus, does not include an
untrue  statement of a material fact or omit to state a material fact  necessary
in order to make the statements,  in the light of the circumstances  under which
they are made, not misleading.

         4.3      Piggyback Registration.

                  4.3.1 Right to Include  Registrable  Shares. If the Company at
any time proposes to register any of its equity  securities under the Securities
Act,  whether  or not for  sale for its own  account,  on a form and in a manner
which would permit  registration  of  Registrable  Shares for a public  offering
under the Act (other than on a  registration  statement  (i) on Form S-4 or Form
S-8 or any successor  form thereto or (ii) filed in connection  with an exchange
offer),  the Company shall give written notice of the proposed  registration  to
each Holder at least  fifteen  (15) days prior to the filing  thereof,  and each
Holder shall have the right to request  that all or any part of its  Registrable
Shares be included in such  registration by giving written notice to the Company
within fifteen (15) days after the giving of such notice by the Company.  If the
registration  statement is to cover an underwritten  offering,  such Registrable
Shares shall be included in the underwriting on the same terms and conditions as
the securities  otherwise being sold through the  underwriters.  Notwithstanding
the  foregoing,  an  Executive  Holder may not request the  registration  of its
Registrable  Executive Shares if such  Registrable  Executive Shares may, at the
time (or within thirty days  thereafter),  be distributed to the public pursuant
to paragraph  (k), as such  paragraph  may be amended from time to time,  or any
other similar provision hereafter adopted by the SEC, of Rule 144.

                  4.3.2    Priority on Piggyback Registrations.

                  (a)  Company   Registrations.   If  the   registration  is  an
underwritten  primary  registration  on behalf of the Company  and the  managing
underwriter(s) of such offering  determine in their good faith judgment that the
aggregate number of securities,  including  Registrable  Shares,  of the Company
which all Holders and all other  security  holders of the  Company,  pursuant to
contractual  rights to participate in such  registration  (the "Other Holders"),
propose to include in such registration  statement exceeds the maximum number of
securities,  including Registrable Shares, that can reasonably be expected to be
sold  in  such  offering   without   materially  and  adversely   affecting  the
marketability  of the offering or the selling price to be obtained,  the Company
will include in such  registration,  first,  the shares of Common Stock or other
securities  which the Company  proposes  to sell and,  second,  the  Registrable
Shares of such Selling  Holders and other  securities to be sold for the account
of Other  Holders,  pro rata among all such Selling  Holders and Other  Holders,
taken  together,  on the  basis of the  number  of  Registrable  Shares or other
securities  of the Company  requested to be included by all Selling  Holders and
Other Holders who have  requested that  securities  owned by them be so included
(it being agreed and  understood,  however,  that such  managing  underwriter(s)
shall  have  the  right  to  eliminate   entirely  the   participation  in  such
registration of all Selling Holders and Other Holders).

                  (b) Selling Holders'  Registration.  If the registration is an
underwritten  secondary  registration  on behalf  of  Selling  Holders  that are
Purchaser   Holders   pursuant  to

                                      -14-

<PAGE>

Section 4.2 hereof, and the managing underwriter(s) determine that the aggregate
number of  securities  which all  Selling  Holders,  the  Company  and all Other
Holders  propose to include in such  registration  exceeds the maximum number of
securities  that can  reasonably  be  expected to be sold within the price range
acceptable  to the Company and the Purchaser  Holders that are Selling  Holders,
the Company will include in such registration,  first, the Purchaser Registrable
Shares of the Selling  Holders  participating  in such  registration on a demand
basis in accordance with Section 4.2.4 hereof, and, second, any securities to be
sold for the account of the  Company,  securities  to be sold for the account of
the Selling Holders  participating in such offering on a piggyback basis and any
securities to be sold for the account of the Other  Holders  electing to include
securities in such  registration,  pro rata among the Company,  all such Selling
Holders and all such Other Holders,  taken together,  on the basis of the number
of Shares or other  securities  to be sold by the Company in the absence of such
pro ration, the number of Registrable Shares or other securities requested to be
included  by all  such  Selling  Holders  and the  number  of  Shares  or  other
securities  requested to be included by all such Other  Holders (it being agreed
and understood,  however, that such managing underwriter(s) shall have the right
to eliminate  entirely the participation  therein of the Company and of all such
Selling  Holders and Other  Holders).

                  (c) Other Holders'  Registration.  If the  registration  is an
underwritten  secondary  registration  on  behalf  of any of the  Other  Holders
pursuant to demand registration rights and the managing  underwriters  determine
that the aggregate number of securities  which all Selling Holders,  the Company
and all Other  Holders  propose  to  include in such  registration  exceeds  the
maximum number of securities that should be included  therein,  the Company will
include in such  registration,  first, the securities to be sold for the account
of the Other Holders  demanding  registration (but only to the extent such Other
Holders are entitled to demand inclusion thereof pursuant to demand registration
rights),  second, any securities to be sold for the account of the Company, and,
third, the Registrable Shares of such Selling Holders and other securities to be
sold for the account of the Other  Holders  electing  to include  (but not being
entitled  pursuant  to  demand  registration  rights  to  demand  inclusion  of)
securities  in such  registration,  pro rata among all such Selling  Holders and
Other Holders,  taken together, on the basis of the number of Registrable Shares
or other  securities  of the  Company  requested  to be  included by all Selling
Holders and such Other Holders who have requested that securities  owned by them
be  included  (it being  agreed  and  understood,  however,  that such  managing
underwriter(s)  shall have the right to  eliminate  entirely  the  participation
therein of all such  Selling  Holders  and Other  Holders  with  respect to such
securities  since they are not entitled to demand  inclusion of such  securities
pursuant to demand registration rights).

                  (d) Underwriters. Registrable Shares proposed to be registered
and  sold  for  the  account  of any  Selling  Holder  pursuant  to a  piggyback
registration shall be sold to prospective  underwriters  selected or approved by
the  Company,  and on the terms and  subject  to the  conditions  of one or more
underwriting  agreements  negotiated between the Company, the Purchaser Holders,
if any,  and/or  Other  Holders  demanding  registration  and  such  prospective
underwriters.  The Selling  Holders shall be permitted to withdraw all or a part
of the Registrable Shares held by such Selling Holders which were to be included
in such piggyback  registration  at any time prior to the effective date of such
registration.  The Company may  withdraw  any  registration  statement  for such
registration at any time before it becomes  effective,  or postpone the offering
of   securities,   without   obligation  or  liability  to  any  Selling  Holder
participating on a piggy-back basis.

                                      -15-

<PAGE>

         4.4  Registration  Statement.  In connection  with any  registration of
Registrable  Shares under the  Securities  Act pursuant to this  Agreement,  the
Company will furnish each Selling  Holder and each  underwriter,  if any, with a
copy of the  registration  statement and all amendments  thereto and will supply
each  such  Selling  Holder  with  copies  of any  prospectus  included  therein
(including a preliminary prospectus and all amendments and supplements thereto),
in each  case  including  all  exhibits,  and  such  other  documents  as may be
reasonably requested,  in such quantities as may be reasonably necessary for the
purposes of the proposed sale or distribution  covered by such registration (the
Company  hereby  consenting to the use in accordance  with all applicable law of
each such  registration  statement  (or  amendment or  post-effective  amendment
thereto) and each such  prospectus  (or  preliminary  prospectus  or  supplement
thereto) by each such Selling Holder and the underwriters, if any, in connection
with  the  offering  and  sale  of  the  Registrable   Shares  covered  by  such
registration  statement  or  prospectus).  The Company  shall not,  however,  be
required  to  maintain  the   registration   statement   relating  to  a  Demand
Registration and to supply copies of a prospectus for a period beyond the Demand
Period,  and,  at the  end of  such  period,  the  Company  may  deregister  any
Registrable  Shares covered by such registration  statement and not then sold or
distributed. In connection with any such registration of Registrable Shares, the
Company will, at the request of the managing  underwriter  with respect  thereto
(or, if not an underwritten  offering, at the request of Selling Holders holding
a majority of the Registrable Shares to be included in the registration) use its
best efforts to register or qualify such  Registrable  Shares for sale under the
securities  laws of  such  states  as is  reasonably  requested  to  permit  the
distribution  of such  Registrable  Shares and to use its reasonable  efforts to
keep each such  registration or  qualification  effective during the period such
registration  statement  is required to be kept  effective  and to do such other
acts  or  things  reasonably   necessary  to  enable  the  disposition  in  such
jurisdictions of the securities covered by the applicable registration statement
in accordance with applicable "blue sky" securities laws of such  jurisdictions;
provided,  however,  that  the  Company  shall  not be  required  in  connection
therewith or as a condition  thereof to qualify as a foreign  corporation  or to
execute a general  consent to service of process in any  jurisdiction  or become
subject to taxation in any jurisdiction.

         In  connection  with any  offering  of  Registrable  Shares  registered
pursuant to this  Agreement,  the Company shall (i) furnish each Selling Holder,
at the Company's  expense and at least three (3) business days prior to the sale
of any Registrable Shares to the underwriters, with unlegended certificates in a
form  eligible  for  deposit  with The  Depository  Trust  Company  representing
ownership of the Registrable  Shares which are sold pursuant to the registration
statement,  in such  denominations  and registered in such names as the managing
underwriter,  if any, or such Selling Holder shall reasonably request,  and (ii)
instruct  the  transfer  agent and  registrar of the Common Stock to release any
stop transfer orders with respect to the Registrable Shares so sold.

         4.5   Registration   Procedures.   In  connection  with  the  Company's
obligations  to effect a  registration  pursuant  to  Sections  4.2 and 4.3 (but
subject to the last  sentence of Section  4.3.2(d)  and  provided  that any time
periods set forth in this Section 4.5 regarding  effective  periods and the like
shall apply only in the event of a Demand  Registration),  the  Company  will as
expeditiously as is reasonably practicable:

                                      -16-

<PAGE>

                  (i)  prepare  and  file  with  the   Commission   as  soon  as
practicable (in the case of a Demand Registration) a registration statement with
respect to such  Registrable  Shares,  on a form  available  for the sale of the
Registrable Shares by the Holders thereof in accordance with the intended method
or methods of distribution  thereof and use its commercially  reasonable efforts
to cause  each such  registration  statement  to become  and  remain  effective;
provided,  however, that before filing a registration statement or prospectus or
any  amendments  or  supplements  thereto  (including  documents  that  would be
incorporated or deemed to be incorporated  therein by reference) and, whether or
not filed  pursuant  to Section  4.2 or 4.3,  the  Company  will  furnish to the
Holders of the Registrable Shares covered by such registration statement and the
underwriters,  if any, and any attorney,  accountant or other agent  retained by
the Holders of Registrable Shares covered by such registration statement, copies
of all such documents  proposed to be filed,  which documents will be subject to
the review and comment of such Holders,  such counsel and underwriters,  if any.
The Company will not file any registration statement or any amendment thereto or
any  prospectus  or  any  supplement   thereto  in  connection   with  a  Demand
Registration  pursuant to Section 4.2 (including such documents  incorporated by
reference and proposed to be filed after the initial filing of the  registration
statement) to which the Holders of a majority of the Registrable  Shares covered
by such registration statement or the underwriters, if any, shall reasonably and
timely object;

                  (ii) prepare and file with the Commission  such amendments and
post-effective amendments to such registration statement and such supplements to
the  prospectus  used in  connection  therewith as may be necessary to keep such
registration  statement  effective  (to the extent  otherwise  required  by this
Agreement)  and to comply with the provisions of the Securities Act with respect
to the  disposition of all  securities  covered by such  registration  statement
until such time as all of such  securities  have been  disposed of in accordance
with the intended  methods of disposition  by the seller or sellers  thereof set
forth in such registration  statement or the expiration of the Demand Period (in
the case of a Demand Registration), whichever occurs earlier; provided, however,
that the only  remedy for any  failure  to keep the  registration  statement  so
effective shall be as set forth in Section 4.2.2 and provided, further, that the
Company  will  have  no  obligation  to  a  Selling  Holder  participating  on a
"piggyback" basis in a registration  statement that has become effective to keep
such  registration  statement  effective  for a period  beyond 120 days from the
effective date of such registration statement;

                  (iii) cooperate and assist in any filings  required to be made
with the National Association of Securities Dealers, Inc. (the "NASD");

                  (iv) notify each Selling Holder and the managing  underwriter,
if any, promptly (and in any event within three (3) business days): (A) when the
prospectus or any  prospectus  supplement or  post-effective  amendment has been
filed,  and with respect to the  registration  statement  or any  post-effective
amendment,  when  the same  has  become  effective;  (B) of any  request  by the
Commission  or any  other  federal  or  state  governmental  authority  for  any
amendments or supplements to the registration statement or the prospectus or for
additional information;  (C) of the issuance by the Commission of any stop order
suspending the effectiveness of the registration  statement or the initiation of
any  proceedings  for that  purpose;  (D) if, at any time  prior to the  closing
contemplated by an underwriting  agreement  entered into in connection with such
registration  statement,  that the representations and warranties of the

                                      -17-

<PAGE>

Company  contained in such  agreement  cease to be true and correct;  (E) of the
receipt by the Company of any notification with respect to the suspension of the
qualification  of the  Registrable  Shares for sale in any  jurisdiction  or the
initiation  or  threatening  of any  proceeding  for  such  purpose;  (F) of the
happening  of any event  which  makes  any  statement  made in the  registration
statement,  the  prospectus  or  any  document  incorporated  or  deemed  to  be
incorporated  therein by  reference  untrue or which  requires the making of any
changes  in  the  registration   statement,   the  prospectus  or  any  document
incorporated  therein by reference in order to make the  statements  therein not
misleading;   and  (G)  of  the  Company's   reasonable   determination  that  a
post-effective amendment to a registration statement would be required;

                  (v)  make  commercially  reasonable  efforts  to  prevent  the
issuance of any order suspending the effectiveness of the registration statement
or of any order  preventing or suspending  the use of a prospectus or suspending
the qualification of any of the Registrable  Shares included therein for sale in
any jurisdiction (subject to the proviso at the end of the penultimate paragraph
of Section 4.4), and, in the event of the issuance of any stop order  suspending
the effectiveness of the registration  statement,  or of any order suspending or
preventing the use of any related  prospectus or suspending the qualification of
any  Common  Shares  included  in such  registration  statement  for sale in any
jurisdiction  (subject to the proviso at the end of the penultimate paragraph of
Section  4.4),  the Company  will use its best  efforts to  promptly  obtain the
withdrawal of any such order;

                  (vi)  furnish  to  each   Selling   Holder  and  the  managing
underwriters,  if any,  without any  additional  charge,  one signed copy of the
registration  statement  and any  post-effective  amendment  thereto,  including
financial  statements  and  schedules,  all  documents  incorporated  therein by
reference and all exhibits (including those incorporated by reference);

                  (vii) as  promptly as  reasonably  practicable,  if  required,
based on the advice of the  Company's  counsel,  or upon the  occurrence  of any
event  contemplated  by Section  4.5(iv)(F),  prepare and file a  supplement  or
post-effective  amendment to the registration statement,  the related prospectus
or any document  incorporated  therein by  reference or file any other  required
document so that, as thereafter  delivered to the purchasers of the  Registrable
Shares,  the prospectus will not contain an untrue  statement of a material fact
or omit to state any material fact necessary to make the statements  therein not
misleading;

                  (viii)   cause  all   Registrable   Shares   covered   by  the
registration  statement  to be  listed  on each  securities  exchange  on  which
identical  securities  issued by the Company are then listed if requested by the
Selling Holders  holding a majority in number of the Registrable  Shares covered
by the Registration Statement or the managing underwriters, if any;

                  (ix) provide and cause to be  maintained a transfer  agent and
registrar for all Registrable Shares covered by such registration statement from
and  after a date  not  later  than  the  effective  date  of such  registration
statement;

                  (x) use its best  efforts  to  provide a CUSIP  number for the
Registrable  Shares,  not  later  than the  effective  date of the  registration
statement;

                                      -18-

<PAGE>

                  (xi) use its best efforts to (A) obtain opinions of counsel to
the Company (which counsel and opinions (in form,  scope and substance) shall be
reasonably  satisfactory to the managing underwriters,  if any, and not objected
to by the Holders of a majority  of the  Registrable  Shares  being  sold),  and
updates  thereof  addressed  to  the  Selling  Holders,   covering  the  matters
customarily  covered in opinions  requested in  underwritten  offerings and such
other matters as may be reasonably  requested by the  underwriters,  if any; and
(B) obtain "cold comfort" letters and updates thereof (which letters and updates
(in form, scope and substance) shall be reasonably  satisfactory to the managing
underwriters,  if  any,  and  counsel  to  the  Holders  of a  majority  of  the
Registrable Shares being sold) from the Company's  independent  certified public
accountants  addressed to such Selling  Holders (and,  if  necessary,  any other
independent  certified public accountants of any subsidiary of the Company or of
any  business  acquired  by the  Company  for  which  financial  statements  and
financial  data  are,  or are  required  to  be,  included  in the  registration
statement),  such  letters to be in customary  form and covering  matters of the
type customarily  covered in "cold comfort" letters by accountants in connection
with underwritten offerings and such other matters as the underwriters,  if any,
or the Holders of a majority of the  Registrable  Shares being sold,  reasonably
request.  The above shall be done at each  closing  under such  underwriting  or
similar  agreement  or as and to the extent  required  thereunder  or, if not an
underwritten  offering,  as otherwise  reasonably  requested by the Holders of a
majority of the Registrable Shares being sold;

                  (xii) make available for inspection by a representative of the
Selling Holders and any attorneys or accountants  retained by such Holders (and,
to the extent  reasonably  requested,  furnish  copies),  in connection with the
preparation  of  a  registration  statement  pursuant  to  this  Agreement,  all
financial and other records and pertinent  corporate documents and properties of
the Company, and cause the Company's officers, directors and employees to supply
all information reasonably requested by any such representative(s),  attorney(s)
or accountant(s) in connection with such registration;  provided,  however, that
any records,  information  or documents  that are  designated  by the Company in
writing  as  confidential  shall be kept  confidential  by such  persons  unless
disclosure  of such  records,  information  or documents is required by court or
administrative  order or under  applicable  law;  and  provided,  further,  that
appropriate  arrangements  are  made,  to  the  extent  required  by  applicable
antitrust  law,  to  limit  access  to  such   information  of  the  Company  to
representatives  of the Holders who are not officers or employees of the Selling
Holders;  and provided,  further that,  without limiting the foregoing,  no such
information  shall be used by any such  Person  in  connection  with any  market
transactions  in securities of the Company or its  subsidiaries  in violation of
law;

                  (xiii)  enter  into  such  agreements   reasonably   requested
(including,  as  applicable,  an  underwriting  agreement  in  form,  scope  and
substance as is customary in underwritten  secondary offerings and is reasonably
satisfactory  to the Company) and take all such other  customary and  reasonable
actions in  connection  therewith  (including  those  requested  by the managing
underwriters)  in  order  to  expedite  or  facilitate  the  disposition  of the
Registrable  Shares,  and in such  connection,  whether  or not an  underwriting
agreement is entered into and whether or not the registration is an underwritten
registration:

                  (a) make such representations and warranties to the Holders of
         such Registrable Shares included in the registration  statement and the
         underwriters,  if any,

                                      -19-

<PAGE>

         with  respect  to the  business  of the  Company  and the  registration
         statement,  prospectus and documents, if any, incorporated or deemed to
         be incorporated by reference therein, in each case, in form,  substance
         and  scope  as are  customarily  made by  issuers  to  underwriters  in
         underwritten  offerings  and confirm the same,  if and when  reasonably
         requested; and

                  (b)  deliver  such  documents  and   certificates  as  may  be
         reasonably  requested  by the Holders of a majority of the  Registrable
         Shares  being  included  in the  registration  statement  and  managing
         underwriters,  if any, to evidence compliance with clause (a) above and
         with any provisions  contained in the  underwriting  agreement or other
         similar agreement entered into by the Company;

The above  shall be done at each  closing  under  such  underwriting  or similar
agreement or as and, if not an underwritten  offering,  to the extent  otherwise
reasonably  requested  by the  Holders of a majority of the  Registrable  Shares
being sold pursuant to the registration statement;

                  (xiv) (a) if so required  by the  managing  underwriter  in an
underwritten offering of Registrable Shares covered by a registration  statement
filed  pursuant to Section 4.2 or 4.3 hereof,  not publicly or  privately  sell,
make any short sale of,  loan,  grant any  option,  effect  any  public  sale or
distribution  of or otherwise  dispose of its equity  securities  or  securities
convertible  into or  exchangeable  or  exercisable  for any of such  securities
during  the  ten  (10)  days  prior  to and  the  ninety  (90)  days  after  any
underwritten  registration pursuant hereto has become effective,  except as part
of such  underwritten  registration and except pursuant to any exchange offer or
registrations  on Form S-4 or S-8 or any  successor  or similar  forms  thereto,
except that the Company may make grants of options  under its stock option plans
and may issue securities issuable upon the exercise or conversion of outstanding
convertible securities,  stock options and other options, warrants and rights of
the Company and (b) if requested, use reasonable efforts to cause each holder of
ten percent (10%) or more of the  securities of the same class as the securities
included in any underwritten registration pursuant to Section 4.2 hereof, or any
securities  convertible into or exchangeable or exercisable for such securities,
in each  case  purchased  from the  Company  at any time  after the date of this
Agreement  (other than in a registered  public  offering) to agree not to effect
any public or private sale or distribution or otherwise dispose (including sales
pursuant to Rule 144 promulgated  under the Act) of any such  securities  during
the ten (10)  days  prior to and the  ninety  (90) days  after any  underwritten
registration  pursuant  hereto  has  become  effective  (except  as part of such
underwritten  registration,  if otherwise  permitted),  unless the  underwriters
managing the registered public offering otherwise agree;

                  (xv) if requested, furnish each Selling Holder with a copy (or
a reasonable  number of copies,  as  requested)  of the  registration  statement
(together  with the Exhibits  thereto) and each  amendment  thereto prior to the
filing thereof with the Commission;

                  (xvi) if requested by the managing underwriters,  if any, or a
Holder of Registrable Shares being sold,  promptly  incorporate in a prospectus,
supplement  or  post-effective   amendment  such  information  as  the  managing
underwriters,  if any,  and the  Holders of the  Registrable  Shares  being sold
reasonably  request  to  be  included  therein  relating  to  the  sale  of

                                      -20-

<PAGE>

the Registrable Shares, including, without limitation,  information with respect
to the number of  Registrable  Shares being sold to  underwriters,  the purchase
price being paid  therefor by such  underwriters  and with  respect to any other
terms of the underwritten  offering of the Registrable Shares to be sold in such
offering;  and make all  required  filings  of such  prospectus,  supplement  or
post-effective  amendment promptly  following  notification of the matters to be
incorporated in such supplement or post-effective amendment;

                  (xvii)  upon the  occurrence  of any event that would  cause a
shelf registration  statement (A) to contain a material misstatement or omission
or (B) to be not  effective and usable for resale of  Registrable  Shares during
the Demand  Period,  the Company shall  promptly file an amendment to such shelf
registration  statement,  in  the  case  of  clause  (A),  correcting  any  such
misstatement  or omission  and, in the case of either clause (A) or (B), use its
commercially reasonable efforts to cause such amendment to be declared effective
and such shelf  registration  statement to become  usable as soon as  reasonably
practicable thereafter;

                  (xviii)  otherwise use its best efforts to (x) comply with all
applicable  rules and  regulations of the Commission and to take all other steps
reasonably  necessary  to effect  the  registration  of the  Registrable  Shares
covered  by  the  registration  statement  contemplated  hereby,  and  (y)  make
available to its  securityholders  an earnings  statement  which  satisfies  the
provisions of Section 11(a) of the  Securities  Act and Rule 158  thereunder (or
any similar rule  promulgated  under the Act) no later than forty-five (45) days
after the end of any twelve-month (12) period (or ninety (90) days after the end
of any  twelve-month  (12) period if such  period is a fiscal  year) (or in each
case within such extended  period of time as may be permitted by the  Commission
for filing the applicable  report with the Commission) (i) commencing at the end
of any fiscal quarter in which Registrable  Shares are sold to underwriters in a
firm  commitment or best efforts  underwritten  offering and (ii) if not sold to
underwriters  in such an  offering,  commencing  on the  first  day of the first
fiscal  quarter  of the  Company  after  the  effective  date of a  Registration
Statement, which statements shall cover said twelve-month (12) periods; and

                  (xix) in connection with any underwritten offering,  cooperate
with all marketing efforts reasonably  requested by the managing  underwriter or
managing  underwriters in connection  with the sale of the  Registrable  Shares,
including, without limitation, participation in a reasonable number of road-show
presentations (in major U.S.  financial cities) and other marketing  activity by
executives and other employees of the Company  requested by such  underwriter or
underwriters  provided that the scheduling of the road-show  presentations shall
be set in  consultation  with the Company  and will not  require  the  Company's
involvement  at any  time  or  place  to  which  the  Company  has a  reasonable
objection.

         4.6      Holdback Agreements.

                  Restrictions on Public Sale by Holders of Registrable  Shares.
Each Holder of Registrable  Shares (whether or not such  Registrable  Shares are
covered by a Registration Statement filed pursuant to Section 4.2 or 4.3 hereof)
agrees,  if  requested  (pursuant  to a timely  written  notice) by the managing
underwriter  or  underwriters  in an  underwritten  offering,  not to effect any
public sale or distribution of any of the Company's securities, including a sale
pursuant to Rule 144 (except as part of such underwritten offering),  during the
period  beginning

                                      -21-

<PAGE>

ten (10) days prior to, and ending  ninety (90) days after,  the closing date of
the underwritten offering made pursuant to such Registration Statement.

                  The  foregoing  provisions  shall not  apply to any  holder of
Registrable  Shares  if such  Holder  is  prevented  by  applicable  statute  or
regulation from entering into any such agreement;  provided,  however,  that any
such Holder shall undertake not to effect any public sale or distribution of the
class of securities  covered by such  Registration  Statement (except as part of
such underwritten offering) during such period unless it has provided sixty (60)
days'  prior  written  notice  of such  sale  or  distribution  to the  managing
underwriter.

         4.7  Registration  Expenses.  Except  as  otherwise  required  by state
securities  laws  or the  rules  and  regulations  promulgated  thereunder,  all
expenses,  disbursements  and fees  incurred by the Company in  connection  with
carrying out its obligations under this Article 4, including but not limited to,
(i) the  reasonable  and  documented  fees and  expenses  of one counsel for the
Selling Holders (which counsel shall be selected by Holders of a majority of the
Registrable   Shares  included  in  the  applicable   registration),   (ii)  all
registration,  filing fees and expenses  (including fees with respect to filings
made with the NASD  (including,  if  applicable,  the fees and  expenses  of any
"qualified  independent  underwriter" and its counsel, as may be required by the
rules and  regulations of the NASD,  (iii) fees and expenses of compliance  with
securities or blue sky laws (including fees and disbursements of counsel for the
underwriters or Selling Holders in connection  with blue sky  qualifications  of
the Registrable  Shares and  determinations  of their eligibility for investment
under the laws of such jurisdiction as the managing underwriters or Holders of a
majority of the  Registrable  Shares  being sold may  designate,  subject to the
proviso to the last sentence of the penultimate  paragraph of Section 4.4), (iv)
printing expenses (including printing certificates for the Registrable Shares to
be  sold  and the  registration  statements  and  prospectuses),  messenger  and
delivery expenses,  duplication,  word processing,  and telephone,  (v) fees and
disbursements of counsel for the Company, and (vi) fees and disbursements of all
independent  certified public  accountants of the Company incurred in connection
with such  registration  (including  the expenses of any special audit and "cold
comfort" letters incident to such  registration)  and fees and  disbursements of
underwriters (excluding discounts, commissions or fees of underwriters,  selling
brokers,  dealer managers or similar securities industry  professionals relating
to the distribution of the Registrable Shares) and other Persons retained by the
Company (all such expenses being herein called "Registration Expenses"), will be
borne by the Company  regardless  of whether a  registration  statement  becomes
effective;  provided,  however,  that the Company  will,  in any event,  pay its
internal expenses (including,  without limitation), all salaries and expenses of
its officers and employees  performing legal or accounting duties), the expenses
of any annual  audit or quarterly  review,  the fees and expenses of any Person,
including special experts, retained by the Company, the expense of any liability
insurance and the expenses and fees for listing the  securities to be registered
on each securities  exchange on which similar  securities  issued by the Company
are then listed or on the NASD automated quotation system; and provided further,
that each Selling  Holder shall pay (x) all costs and expenses of counsel (other
than the  counsel  costs  referred  to in (i) above),  accounting  or  financing
professionals  retained by such Selling Holder, (y) all underwriting  discounts,
commissions, fees and expenses and all transfer taxes with respect to the

                                      -22-

<PAGE>

Shares sold by such Selling Holder,  and (z) all other expenses incurred by such
Selling  Holder and incidental to the sale and delivery of the Shares to be sold
by such Holder.

         4.8  Conditions  to Holder's  Rights.  It shall be a condition  of each
Selling Holder's rights hereunder that:

                  4.8.1  Cooperation.  Such Selling Holder shall  cooperate with
the Company by supplying  information and executing  documents  relating to such
Selling  Holder or the securities of the Company owned by such Selling Holder in
connection with such registration which are customary for offerings of this type
(including  agreeing to sell such  Selling  Holder's  Registrable  Shares on the
basis  provided in any  underwriting  arrangements  containing  customary  terms
reasonably satisfactory to such Selling Holder);

                  4.8.2  Undertakings.  Such Selling Holder shall enter into any
undertakings  and take such other action relating to the conduct of the proposed
offering which the Company or the underwriters  may reasonably  request as being
necessary to insure  compliance  with federal and state  securities laws and the
rules or other requirements of the NASD or which the Company or the underwriters
may reasonably request to otherwise effectuate the offering; and

                  4.8.3  Indemnification.  Such Selling Holder shall execute and
deliver an agreement to  indemnify  to the fullest  extent  permitted by law and
hold harmless the Company,  each of its directors,  each of its officers who has
signed the registration statement, any underwriter (as defined in the Securities
Act),  and each person,  if any,  who  controls the Company or such  underwriter
within the meaning of the Securities Act, against such losses,  claims,  damages
or liabilities  (including  reimbursement for legal and other expenses) to which
the Company or any such director, officer, underwriter or controlling person may
become  subject  under the  Securities  Act or  otherwise,  in such manner as is
customary for registrations of the type then proposed,  but only with respect to
written information about or pertaining to such Selling Holder furnished by such
Selling Holder for inclusion in the Registration Statement.

         4.9      Indemnification.

                  4.9.1  Indemnification  by the  Company.  In the  case  of any
offering registered pursuant to this Agreement,  the Company agrees to indemnify
to the  fullest  extent  permitted  by law and hold each  Selling  Holder,  each
affiliate  of  such  Selling   Holder  and  each   director,   officer,   agent,
representative  and employee of such  Selling  Holder and its  affiliates,  each
Person who controls each Selling  Holder within the meaning of Section 15 of the
Securities  Act or Section 20 of the Exchange Act and the  directors,  officers,
agents or employees of each such controlling person harmless against any and all
losses,  claims,  damages,   liabilities,   actions  (including  reasonable  and
documented  costs  (including,  without  limitation,  costs of  preparation  and
reasonable attorneys' fees and disbursements) and expenses, including reasonable
expenses of investigation)  (collectively "Losses") to which they or any of them
may become  subject under the  Securities Act or any other statute or common law
or  otherwise,  insofar as any such  Losses  shall arise out of, be caused by or
shall be based upon (i) any untrue  statement or alleged  untrue  statement of a
material fact contained in the  registration  statement  relating to the sale of
the Registrable  Shares covered thereby,  or the omission or alleged omission to
state therein a

                                      -23-

<PAGE>

material fact required to be stated  therein or necessary to make the statements
therein not misleading, or (ii) any untrue statement or alleged untrue statement
of a material  fact  contained  in any  preliminary  prospectus  (as  amended or
supplemented  if the Company shall have filed with the  Commission any amendment
thereof or  supplement  thereof),  if used prior to the  effective  date of such
registration   statement,   or  contained  in  the  prospectus  (as  amended  or
supplemented   if  the  Company  shall  have  filed  with  the   Commission  any
amendment,thereof  or supplement thereof,  including the information deemed part
of such  registration  statement  pursuant  to Rule 430A  promulgated  under the
Securities  Act),  if used within the period  during which the Company  shall be
required to keep the  registration  statement to which such  prospectus  relates
current  pursuant  to the terms of this  Agreement,  or the  omission or alleged
omission to state  therein (if so used) a material  fact  necessary  in order to
make the statements therein, in light of the circumstances under which they were
made, not misleading;  provided,  however,  that the  indemnification  agreement
contained in this Section 4.9.1 shall not apply to such Losses which shall arise
from the sale of Registrable Shares to any Person if such Losses shall arise out
of,  shall be  caused by or shall be based  upon any such  untrue  statement  or
alleged untrue statement,  or any such omission or alleged omission, (i) if such
statement or omission  shall have been made in reliance  upon and in  conformity
with  information  furnished  in writing to the Company by such  Selling  Holder
specifically  for use in connection  with the  preparation  of the  registration
statement  or  any  preliminary   prospectus  or  prospectus  contained  in  the
registration statement or any such amendment thereof or supplement thereto; (ii)
if such untrue  statement or omission was made in any preliminary  prospectus to
the extent  that (a) the  prospectus  corrected  such untrue  statement  or such
omission and (b) the Selling  Holder was legally  required to and failed to send
or deliver a copy of the  prospectus  with or prior to the  delivery  of written
confirmation  of the sale by such Selling  Holder of  Registrable  Shares to the
Person  asserting the claim from which such Losses  arise;  or (iii) if any such
Losses  arise out of,  are caused by or are based  upon an untrue  statement  or
omission in the  prospectus,  to the extent that (a) such  untrue  statement  or
omission is corrected in an amendment or  supplement to the  prospectus  and (b)
having  previously  been furnished by or on behalf of the Company with copies of
the  prospectus as so amended or  supplemented,  such Selling Holder was legally
required to and  thereafter  fails to deliver such  prospectus  as so amended or
supplemented,  prior to or concurrently  with the sale of Registrable  Shares to
the Person  asserting  the claim from which such Losses  arise.  This  indemnity
shall be in  addition  to any other  indemnification  arrangements  to which the
Company may otherwise be a party.

                  4.9.2  Indemnification by Holders of Registrable  Shares. Each
Selling  Holder agrees to indemnify to the fullest  extent  permitted by law and
hold the Company, its directors, officers, agents and employees, each Person who
controls the Company  within the meaning of Section 15 of the  Securities Act or
Section 20 of the Exchange Act and the directors,  officers, agents or employees
of such controlling  persons harmless against any and all Losses arising out of,
caused by or based upon any untrue statement of a material fact contained in any
registration  statement,  prospectus or form of  prospectus,  or arising out of,
caused by or based upon any  omission of a material  fact  required to be stated
therein  or  necessary  to make  the  statements  therein  (in  the  case of the
preliminary prospectus and the prospectus, in each case, including amendments or
supplements,  in light  of the  circumstances  in  which  they  were  made)  not
misleading, to the extent, but only to the extent, that such untrue statement or
omission is  contained in any  information  furnished in writing by such Selling
Holder to the  Company,

                                      -24-

<PAGE>

expressly  for use in  such  registration  statement  or  prospectus;  provided,
however,  that the  obligation to indemnify will be several and not joint and in
no event shall the  liability  of any  Selling  Holder  hereunder  be greater in
amount  than  the  dollar  amount  of  the  proceeds  (net  of  the  payment  of
underwriting  discounts and commissions payable by such Selling Holder) received
by any such Selling Holder upon the sale of the  Registrable  Shares giving rise
to such indemnification obligation. The Company and the Selling Holders shall be
entitled to receive  indemnities  from  underwriters,  selling  brokers,  dealer
managers and similar  securities  industry  professionals  participating  in the
distribution to the same extent as provided above with respect to information so
furnished  in writing by such Persons  expressly  for use in any  prospectus  or
registration statement.

                  4.9.3  Conduct  of  Indemnification  Proceedings.  Any  Person
entitled to indemnity under this Agreement (an  "Indemnified  Party") shall give
prompt  written  notice to the party from which such  indemnity  is sought  (the
"Indemnifying Party") of any claim or of the commencement of any proceeding with
respect to which such Indemnified  Party seeks  indemnification  or contribution
pursuant  hereto;  provided,   however,  that  the  failure  so  to  notify  the
Indemnifying  Party shall not relieve the indemnifying party from any obligation
or  liability  except  to the  extent  that  the  Indemnifying  Party  has  been
prejudiced  materially by such failure.  The  Indemnifying  Party shall have the
right,  exercisable by giving  written  notice to an Indemnified  Party promptly
after the receipt of written notice from such Indemnified Party of such claim or
proceeding to assume,  at the Indemnifying  Party's expense,  the defense of any
such  claim  or  proceeding,   with  counsel  reasonably  satisfactory  to  such
Indemnified  Party;   provided,   however,  that  under  such  circumstances  an
Indemnified  Party shall have the right to employ  separate  counsel in any such
claim or proceeding and to participate in the defense thereof,  but the fees and
expenses  of such  counsel  shall be at the  expense of such  Indemnified  Party
unless: (1) the Indemnifying Party agrees to pay such fees and expenses;  or (2)
the  Indemnifying  Party  fails  promptly to assume the defense of such claim or
proceeding  or  fails  to  employ  counsel   reasonably   satisfactory  to  such
Indemnified  Party;  or (3) the  Indemnified  Party  shall have been  advised by
counsel that (i) there may be one or more  material  defenses  available to such
Indemnified  Party that are different  from or additional to those  available to
the Indemnifying Party or its affiliates,  or (ii) a conflict of interest likely
exists if such counsel  represents such Indemnified  Party and such Indemnifying
Party or its affiliate,  in which case, if such  Indemnified  Party notifies the
Indemnifying  Party in writing that it elects to employ separate  counsel at the
expense of the Indemnifying  Party,  the  Indemnifying  Party shall not have the
right to assume the defense  thereof,  it being  understood,  however,  that the
Indemnifying  Party  shall  not,  in  connection  with  any one  such  claim  or
proceeding,   or  separate  but  substantially  similar  or  related  claims  or
proceedings  arising out of the same general  allegations or  circumstances,  be
liable for the fees and  expenses of more than one  separate  firm of  attorneys
(together with appropriate  local counsel which such counsel shall be designated
by the Indemnified Party and be reasonably acceptable to the Indemnifying Party)
at any time for such  Indemnified  Party,  or for fees and expenses that are not
reasonable.  Whether or not such defense is assumed by the  Indemnifying  Party,
such Indemnifying  Party will not be subject to any liability for any settlement
made without its consent (which consent shall not be unreasonably withheld). The
Indemnifying  Party  shall not  consent  to entry of any  judgment  or settle or
compromise  any pending or threatened  claim,  action or  proceeding,  unless it
contains  as an  unconditional  term  thereof  the  giving  by the  claimant  or
plaintiff  to  the  Indemnified  Party  of a

                                      -25-

<PAGE>

release, in form and substance  satisfactory to such Indemnified Party, from all
liability  in  respect of such claim or  litigation  for which such  Indemnified
Party would be entitled to indemnification hereunder.

                  The  Indemnifying  Party's  liability to any such  Indemnified
Party hereunder shall not be extinguished  solely because any other  Indemnified
Party is not entitled to indemnity hereunder.

                  4.9.4  Contribution.  If the  indemnification  provided for in
this Section 4.9 is unavailable to an Indemnified Party in respect of any Losses
or is insufficient to hold such Indemnified Party harmless,  then, except to the
extent that  contribution is not permitted under Section 11(f) of the Securities
Act, each applicable  Indemnifying  Party shall contribute to the amount paid or
payable by such Indemnified Party as a result of such Losses, in such proportion
as is appropriate to reflect the relative fault of the  Indemnifying  Party,  on
the one hand, and such Indemnified  Party, on the other hand, in connection with
the actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations appropriate under the circumstances. The
relative fault of such Indemnifying Party, on the one hand, and such Indemnified
Party,  on the other hand,  shall be  determined  by  reference  to, among other
things,  whether any action in  question,  including  any untrue  statement of a
material fact or omission to state a material  fact,  has been taken or made by,
or relates to information  supplied by, such  Indemnifying  Party or Indemnified
Party,  and the  parties'  relative  intent,  knowledge,  access to  information
concerning  the  matter  with  respect  to which  the  claim  was  asserted  and
opportunity to correct or prevent such action, statement or omission. The amount
paid or payable by a party as a result of any Losses  shall be deemed to include
any  legal  or other  fees or  expenses  reasonably  incurred  by such  party in
connection with any investigation or proceeding.

                  The  parties  hereto  agree  that it  would  not be  just  and
equitable if contribution  pursuant to this Section 4.9.4 were determined by pro
rata  allocation  or by any other method of  allocation  that does not take into
account the equitable  considerations  referred to in the immediately  preceding
paragraph. Notwithstanding the provisions of this Section 4.9.4, no Indemnifying
Party that is a Selling  Holder  shall be required to  contribute  any amount in
excess of the amount by which the net proceeds  received by such Selling  Holder
from the sale of Registrable  Shares exceeds the amount of any damages that such
Selling  Holder has  otherwise  been required to pay by reason of such untrue or
alleged   untrue   statement  or  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.

                  The indemnity and  contribution  agreements  contained in this
Section 4.9 are in addition to any liability that the  Indemnifying  Parties may
have to the Indemnified Parties.

                  4.9.5  Underwriting  Agreement  to Govern.  At such time as an
underwriting  agreement  with  respect to a particular  underwriting  is entered
into, the terms of any such underwriting  agreement shall govern with respect to
the matters set forth therein to the extent  inconsistent with this Section 4.9;
provided,  however,  that the  indemnification  provisions of such  underwriting
agreement as they relate to Selling Holders are customary for  registrations  of
the

                                      -26-

<PAGE>

type then proposed and provide for  indemnification by such Selling Holders only
with respect to written information furnished by such Selling Holders.

         4.10 Rule 144.  Following a Public  Offering  Event,  the Company shall
file the  reports  required to be filed by it under the  Securities  Act and the
Exchange Act and the rules and regulations adopted by the Commission  thereunder
and will take such  further  action as any  Holder  of  Registrable  Shares  may
reasonably request,  all to the extent required from time to time to enable such
Holder to sell Registrable Shares without  registration under the Securities Act
within the limitation of the  exemptions  provided by Rule 144. Upon the request
of any Holder of Registrable  Shares,  the Company will deliver to such Holder a
written statement as to whether it has complied with such requirements.

                    ARTICLE 5. Representations and Warranties

         5.1      Representations and Warranties of the Company.

                  The Company  represents  and warrants to the  Stockholders  as
follows:

                  5.1.1  Organization.  It is a corporation  duly  organized and
validly listing under the laws of the State of Delaware;

                  5.1.2 Authority.  It has full corporate power and authority to
execute,  deliver and perform this Agreement and to consummate the  transactions
contemplated hereby;

                  5.1.3  Binding   Obligation.   The  execution,   delivery  and
performance  of  this  Agreement  by it  and  the  consummation  by  it  of  the
transactions  contemplated  hereby have been duly and validly  authorized by all
necessary  corporate  action on its part,  and this  Agreement  constitutes  its
binding obligation,  enforceable against it in accordance with its terms, except
insofar as enforceability may be limited by bankruptcy,  insolvency,  moratorium
or other laws which may affect creditors'  rights and remedies  generally and by
principles of equity  (regardless of whether  enforceability  is considered in a
proceeding in equity or at law); and

                  5.1.4 No Conflict. The execution,  delivery and performance of
this Agreement by it and the consummation by it of the transactions contemplated
hereby will not,  with or without the giving of notice or the lapse of time,  or
both, (i) violate any provision of law, statute,  rule or regulation to which it
is subject,  (ii)  violate any order,  judgment or decree  applicable  to it, or
(iii)  conflict  with,  or  result  in a breach or  default  under,  any term or
condition of its certificate or articles of  incorporation or its by-laws or any
material  agreement or other  material  instrument  to which it is a party or by
which it or its property is bound.

         5.2  Representations  and Warranties of the  Stockholders.  Each of the
Stockholders  represents  and  warrants  to each  other  and to the  Company  as
follows:

                  5.2.1  Organization.  If it is an entity, it is a corporation,
limited  partnership or other entity duly  organized and validly  existing under
the laws of its respective state of organization;

                                      -27-

<PAGE>

                  5.2.2  Authority.  It has full power and authority to execute,
deliver  and  perform  this  Agreement  and  to  consummate   the   transactions
contemplated hereby;

                  5.2.3  Binding   Obligation.   The  execution,   delivery  and
performance  of  this  Agreement  by it  and  the  consummation  by  it  of  the
transactions  contemplated  hereby have been duly and validly  authorized by all
necessary  action  on its  part,  and this  Agreement  constitutes  its  binding
obligation,  enforceable against it in accordance with its terms, except insofar
as enforceability may be limited by bankruptcy,  insolvency, moratorium or other
laws which may affect creditors' rights and remedies generally and by principles
of equity (regardless of whether enforceability is considered in a proceeding in
equity or at law); and

                  5.2.4 No Conflict. The execution,  delivery and performance of
this Agreement by it and the consummation by it of the transactions contemplated
hereby will not,  with or without the giving of notice or the lapse of time,  or
both, (i) violate any provision of law, statute,  rule or regulation to which it
is subject,  (ii)  violate any order,  judgment or decree  applicable  to it, or
(iii)  conflict  with,  or  result  in a breach or  default  under,  any term or
condition of its certificate of  incorporation,  bylaws or equivalent  governing
document or any material agreement or other material instrument to which it is a
party or by which it or its property is bound.

                       ARTICLE 6. Termination of Agreement

         Subject to the next succeeding sentence, this Agreement shall terminate
ten (10) years from the date of this Agreement  (the  "Termination  Date").  The
provisions of Article 1 and Article 3 of this  Agreement  and the  provisions of
Sections 2.4 and 2.8 of this Agreement  shall  terminate on the date of a Public
Offering Event which occurs prior to the Termination Date.

                               ARTICLE 7. General

         7.1  Recapitalization,   Exchanges,  etc.  Affecting  the  Shares.  The
provisions  of this  Agreement  shall apply to the full extent set forth  herein
with  respect  to (a) the  Shares  and any  option,  right or warrant to acquire
Shares,  and (b) any and all  shares  of  capital  stock of the  Company  or any
successor or assign of the Company  (whether by merger,  consolidation,  sale of
assets or  otherwise)  which may be issued in respect of, in exchange for, or in
substitution for any Shares, by combination, recapitalization, reclassification,
merger,  consolidation  or  otherwise.  In  the  event  of  any  change  in  the
capitalization of the Company, as a result of any stock split, stock dividend or
stock  combination,  the  provisions of this  Agreement  shall be  appropriately
adjusted.

         7.2 Injunctive  Relief.  It is hereby agreed and  acknowledged  that it
will be impossible to measure in money the damages that would be suffered if the
parties fail to comply with any of the  obligations  herein  imposed on them and
that, in the event of any such failure,  an aggrieved person will be irreparably
damaged and will not have an  adequate  remedy of law.  Any such  person  shall,
therefore, be entitled to injunctive relief, including specific performance,  to
enforce  such  obligations,  without  the  posting of any bond and if any action
should be brought in equity to enforce any of the provisions of this  Agreement,
none of the parties  hereto  shall  raise the defense  that there is an adequate
remedy at law.

                                      -28-

<PAGE>

         7.3  Notices.  Any and all  notices,  demands  or other  communications
required or  permitted  hereunder  shall be in writing and shall be made by hand
delivery  (deemed  given upon  receipt),  or by  certified  mail return  receipt
requested  (deemed given upon execution of such return receipt),  addressed to a
Stockholder  and the Company at the  address  set forth  below such  person's or
entity's signature.  Any party may change its address for notice by notice given
to each  Stockholder  and the  Company  in  accordance  with the  foregoing.  No
objection  may be made to the  method of  delivery  of any notice  actually  and
timely received.

         7.4 Legend.  In addition to any other  legend  which may be required by
applicable law, each share certificate  representing Shares which are subject to
this Agreement shall have endorsed, to the extent appropriate, upon its face the
following words:

                  THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE HAVE NOT BEEN
                  REGISTERED  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED (THE
                  "ACT"),  OR THE  SECURITIES  LAWS  OF ANY  JURISDICTION.  SUCH
                  SECURITIES  MAY NOT BE OFFERED,  SOLD,  TRANSFERRED,  PLEDGED,
                  ASSIGNED,  ENCUMBERED,  HYPOTHECATED OR OTHERWISE  DISPOSED OF
                  EXCEPT  PURSUANT TO (I) A REGISTRATION  STATEMENT WITH RESPECT
                  TO  SUCH  SECURITIES  THAT  IS  EFFECTIVE  UNDER  SUCH  ACT OR
                  APPLICABLE  STATE  SECURITIES  LAW, OR (II) ANY EXEMPTION FROM
                  REGISTRATION  UNDER SUCH ACT, OR APPLICABLE  STATE  SECURITIES
                  LAW, RELATING TO THE DISPOSITION OF SECURITIES, INCLUDING RULE
                  144,  PROVIDED  AN  OPINION OF  COUNSEL  IS  FURNISHED  TO THE
                  COMPANY, IN FORM AND SUBSTANCE REASONABLY  SATISFACTORY TO THE
                  COMPANY, TO THE EFFECT THAT AN EXEMPTION FROM THE REGISTRATION
                  REQUIREMENTS OF THE ACT AND/OR APPLICABLE STATE SECURITIES LAW
                  IS AVAILABLE.

                  IN ADDITION,  THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE
                  MAY NOT BE TRANSFERRED,  SOLD, ASSIGNED, PLEDGED, HYPOTHECATED
                  OR OTHERWISE  DISPOSED OF UNLESS SUCH  TRANSFER  COMPLIES WITH
                  THE PROVISIONS OF A STOCKHOLDERS  AGREEMENT  DATED AS OF MARCH
                  31, 1998 (THE "STOCKHOLDERS AGREEMENT"), A COPY OF WHICH IS ON
                  FILE  AND MAY BE  INSPECTED  AT THE  PRINCIPAL  OFFICE  OF THE
                  COMPANY.  NO  TRANSFER OF THE  SECURITIES  WILL BE MADE ON THE
                  BOOKS  OF  THE  COMPANY  UNLESS  ACCOMPANIED  BY  EVIDENCE  OF
                  COMPLIANCE  WITH  THE  TERMS  OF SUCH  PRINCIPAL  STOCKHOLDERS
                  AGREEMENT.  THE SECURITIES REPRESENTED BY THIS

                                      -29-

<PAGE>

                  CERTIFICATE  ARE ALSO SUBJECT TO OTHER RIGHTS AND  OBLIGATIONS
                  AS SET FORTH IN THE PRINCIPAL STOCKHOLDERS AGREEMENT.

         7.5 Transferees Bound. All Shares owned by a Transferee shall,  subject
to the terms of Section 2.3 of this  Agreement,  for all  purposes be subject to
the terms of this  Agreement,  whether  or not such  Transferee  has  executed a
consent to be bound by this Agreement. The foregoing shall not apply in the case
of any Shares acquired by a Transferee  pursuant to a sale of Shares pursuant to
an effective  registration  statement  under the  Securities  Act or, except for
sales to an  affiliate  of the Company or sales made prior to a Public  Offering
Event, pursuant to Rule 144.

         7.6  Amendment;  Waiver.  This  Agreement  may  be  amended,  modified,
supplemented  or terminated only by a written  instrument  signed by each of (i)
the Company,  (ii) Stockholders holding a majority of the Registrable  Purchaser
Shares, and (iii) Stockholders  holding a majority of the Registrable  Executive
Shares.  No  provision of this  Agreement  may be waived  orally,  but only by a
written  instrument  signed by the party against whom enforcement of such waiver
is sought. Stockholders shall be bound from and after the date of the receipt of
a written notice from the Company  setting forth such amendment or waiver by any
consent  authorized by this  Section,  whether or not the Shares shall have been
marked to indicate such consent; no alteration, modification or impairment shall
be  implied  by reason  of any  previous  waiver,  extension  of time,  delay or
omission in exercise, or other indulgence.

         7.7 Additional  Documents.  Each party hereto agrees to execute any and
all further  documents and writings  within its powers and to perform such other
actions which may be or become  necessary or expedient to  effectuate  and carry
out this Agreement.

         7.8 No Third-Party  Benefits.  None of the provisions of this Agreement
shall be for the benefit of, or enforceable by, any third-party beneficiary.

         7.9 Successors and Assigns. Subject to the terms hereof, this Agreement
shall be binding  upon and shall inure to the benefit of the  Stockholders,  and
their  respective  successors  and permitted  assigns;  provided,  however,  (i)
neither  this  Agreement  nor  any  rights  or  obligations   hereunder  may  be
transferred by the Company and (ii) no rights or obligations of any  Stockholder
under this Agreement may be assigned  except that any  Stockholder  may transfer
its rights and obligations hereunder,  in whole or in part, in connection with a
Transfer  of  Shares  made in  compliance  with  all of the  provisions  of this
Agreement.

         7.10 Severability.  In case any one or more of the provisions contained
in this  Agreement  shall,  for any reason,  be held to be  invalid,  illegal or
unenforceable in any respect,  such invalidity,  illegality or  unenforceability
shall not affect any other  provisions  of this  Agreement,  and this  Agreement
shall be construed as if such invalid,  illegal or  unenforceable  provision had
never been contained herein;  provided,  however,  that the parties hereto shall
use their best  efforts to find and employ an  alternative  means to achieve the
same or  substantially  the same result as that  contemplated  by such  invalid,
illegal or unenforceable term, provision, covenant or restriction.

                                      -30-

<PAGE>

         7.11 Integration.  This Agreement contains the entire  understanding of
the  parties  with  respect  to  the  subject  matter   hereof.   There  are  no
restrictions,  agreements, promises,  representations,  warranties, covenants or
undertakings  with  respect  to the  subject  matter  hereof  other  than  those
expressly set forth or referred to herein.  This Agreement  supersedes all prior
agreements  and  understandings  between the parties with respect to its subject
matter.

         7.12 Governing Law. THE RIGHTS AND  LIABILITIES OF THE PARTIES SHALL BE
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK, REGARDLESS OF THE CHOICE
OF LAWS PROVISIONS OF SUCH STATE OR ANY OTHER JURISDICTION.

         7.13 Attorneys' Fees. Should any litigation or arbitration be commenced
(including any proceedings in a bankruptcy  court) between the parties hereto or
their  representatives  concerning any provision of this Agreement or the rights
and duties of any person or entity hereunder, the party or parties prevailing in
such  proceeding  shall be entitled,  in addition to such other relief as may be
granted, to the reasonable attorneys' fees and court costs incurred by reason of
such litigation or arbitration.

         7.14  Headings.  The headings in this  Agreement are inserted only as a
matter of convenience,  and in no way define,  limit, or extend or interpret the
scope of this Agreement or of any particular Section.

         7.15 Information for Notices.  No Stockholder (other than a Stockholder
as of the date of this  Agreement  with  respect to the  Shares  held as of such
date) shall hold any of its Shares in nominee name unless it otherwise  provides
the  Company  and the other  Stockholders  with its name and  address  and other
information  reasonably  requested  by the  Company in order to  establish  such
Stockholder's  particular  status under this Agreement (e.g.,  Purchaser Holder,
Executive Party, etc.).

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

         7.17  Consent  to  Jurisdiction.   Each  Stockholder  agrees  that  any
proceeding  arising  out of or  relating  to this  Agreement  or the  breach  or
threatened  breach of this  Agreement may be commenced and prosecuted in a court
in  the  State  of  New  York.   Each   Stockholder   hereby   irrevocably   and
unconditionally  consents and submits to the non-exclusive personal jurisdiction
of any court in the State of New York in  respect of any such  proceeding.  Each
Stockholder  consents  to service of  process  upon it with  respect to any such
proceeding by registered mail, return receipt requested,  and by any other means
permitted by applicable laws and rules.  Each  Stockholder  waives any objection
that it may now or hereafter have to the laying of venue of any such  proceeding
in any court in the State of New York and any claim that it may now or hereafter
have  that any such  proceeding  in any  court in the State of New York has been
brought in an inconvenient forum.

                                      -31-

<PAGE>

         7.18 No Inconsistent  Agreements.  The Company will not hereafter enter
into any agreements with respect to its securities which are  inconsistent  with
or violate  in any  material  respects  the  rights  granted  to the  Holders of
Registrable Shares in this Agreement.

         7.19  Certain  Distributions  Exempt.  Notwithstanding  anything to the
contrary  contained  in  this  Agreement,  any  distribution  of  Shares  by the
Purchaser or any other Purchaser Party to its equity  participants in accordance
with the terms of its limited  partnership  agreement,  operating  agreement  or
other  governing  agreement  or  instrument  shall be exempt  from the terms and
conditions of this Agreement,  other than that the Persons  receiving the Shares
in connection with any such distribution shall be bound on a going-forward basis
by the terms and conditions of this  Agreement.  For example,  and not by way of
limitation,  any such  distribution  shall not  trigger  any of the  "tag-along"
rights set forth in Section 2.4.

         7.20  Certain  Limitations.  Notwithstanding  anything to the  contrary
contained in this Agreement,  prior to the issuance or sale of any shares of the
Company's  capital stock pursuant to an effective  registration  statement under
the  Securities  Act, the Company shall not be required to register any transfer
of Shares on the Company's  books if in the  reasonable,  good faith judgment of
the Company, registering such transfer would cause the Company to become subject
to registration pursuant to the Exchange Act.

         7.21  Information  Regarding  Beneficial  Ownership.  Each  Stockholder
agrees to promptly  provide to the Company any  information  or  representations
that the Company may request  regarding  such holder's  beneficial  ownership of
shares of any class of the Company's capital stock.

                                      -32-

<PAGE>

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

                                    Diamond Triumph Auto Glass, Inc.

                                    By: /s/ Kenneth Levine
                                       ----------------------------------
                                        Name:  Kenneth Levine
                                        Title: Co-Chairman & Co-Chief
                                                 Executive Officer

                                    220 Division Street
                                    Kingston, Pennsylvania 18704
                                    Fax: 717-287-9775
                                    Attention: Co-Chairmen of the Board

                                    Green Equity Investors II, L.P.

                                    By: Grand Avenue Capital Partners, L.P.

                                    By: Grand Avenue Capital Corporation,its
                                          general partner

                                    By: /s/ Gregory Annick
                                       ----------------------------------
                                       Name:  Gregory Annick
                                       Title:

                                    Leonard Green & Partners, L.P.
                                    11111 Santa Monica Boulevard
                                    Suite 200
                                    Los Angeles, California 90025
                                    Fax: 310-954-0404
                                    Attention: Gregory J. Annick

                                    /s/ Kenneth Levine
                                    ------------------------------------
                                        Kenneth Levine

                                    RD1 Box 411C
                                    Dalton, PA 18414
                                    Fax: 717-586-7733

                                      -33-

<PAGE>

                                    /s/ Richard Rutta
                                    ------------------------------------
                                        Richard Rutta

                                    626 Taylor Avenue
                                    Scranton, PA 18510
                                    Fax: 717-342-3393

                                      -34-

<PAGE>

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