Document:

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                                                                     Exhibit 4.2

                          REGISTRATION RIGHTS AGREEMENT

                                      among

                           AXCELIS TECHNOLOGIES, INC.

                                   as Issuer,

                                       and

                       MORGAN STANLEY & CO. INCORPORATED,

                            SALOMON SMITH BARNEY INC.

                                       and

                         SG COWEN SECURITIES CORPORATION

                              as Initial Purchasers

                          Dated as of January 15, 2002

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         REGISTRATION RIGHTS AGREEMENT dated as of January 15, 2002 among
Axcelis Technologies, Inc., a Delaware corporation (the "Company"), and Morgan
Stanley & Co. Incorporated, Salomon Smith Barney Inc. and SG Cowen Securities
Corporation (the "Initial Purchasers") pursuant to the Purchase Agreement dated
January 9, 2002 (the "Purchase Agreement"), between the Company and the Initial
Purchasers. In order to induce the Initial Purchasers to enter into the Purchase
Agreement, the Company has agreed to provide the registration rights set forth
in this Agreement. The execution of this Agreement is a condition to the closing
under the Purchase Agreement.

         The Company agrees with the Initial Purchasers, (i) for their benefit
as Initial Purchasers and (ii) for the benefit of the beneficial owners
(including the Initial Purchasers) from time to time of the Notes (as defined
herein) and the beneficial owners from time to time of the Underlying Common
Stock (as defined herein) issued upon conversion of the Notes (each of the
foregoing a "Holder" and together the "Holders"), as follows:

         SECTION 1. Definitions. Capitalized terms used herein without
definition shall have their respective meanings set forth in the Purchase
Agreement. As used in this Agreement, the following terms shall have the
following meanings:

         "Affiliate" means with respect to any specified person, an "affiliate,"
as defined in Rule 144, of such person.

         "Amendment Effectiveness Deadline Date" has the meaning set forth in
Section 2(d) hereof.

         "Business Day" means each Monday, Tuesday, Wednesday, Thursday and
Friday that is not a day on which either banking institutions in The City of New
York are authorized or obligated by law or executive order to close or the SEC
is closed.

         "Common Stock" means the shares of common stock, $0.001 par value, of
the Company, together with the rights evidenced by such common stock to the
extent provided in the Rights Agreement dated as of June 30, 2000 between the
Company and EquiServe Trust Company N.A., and any other shares of common stock
(and accompanying rights) as may constitute "Common Stock" for purposes of the
Indenture, including the Underlying Common Stock.

         "Conversion Price" has the meaning assigned such term in the Indenture.

         "Damages Accrual Period" has the meaning set forth in Section 2(e)
hereof.

         "Damages Payment Date" means each January 15 and July 15.

         "Deferral Notice" has the meaning set forth in Section 3(i) hereof.

         "Deferral Period" has the meaning set forth in Section 3(i) hereof.

         "Effectiveness Deadline Date" has the meaning set forth in Section 2(a)
hereof.

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         "Effectiveness Period" means the period commencing on the date hereof
and ending on the date that all Registrable Securities have ceased to be
Registrable Securities.

         "Event" has the meaning set forth in Section 2(e) hereof.

         "Event Date" has the meaning set forth in Section 2(e) hereof.

         "Event Termination Date" has the meaning set forth in Section 2(e)
hereof.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations of the SEC promulgated thereunder.

         "Filing Deadline Date" has the meaning set forth in Section 2(a)
hereof.

         "Holder" has the meaning set forth in the second paragraph of this
Agreement.

         "Indenture" means the Indenture, dated as of January 15, 2002, between
the Company and State Street Bank and Trust Company, as trustee, pursuant to
which the Notes are being issued.

          "Initial Purchasers" means Morgan Stanley & Co. Incorporated, Salomon
Smith Barney Inc. and SG Cowen Securities Corporation.

         "Initial Shelf Registration Statement" has the meaning set forth in
Section 2(a) hereof.

         "Issue Date" means the first date of original issuance of the Notes.

         "Liquidated Damages Amount" has the meaning set forth in Section 2(e)
hereof.

         "Losses" has the meaning set forth in Section 6 hereof.

         "Material Event" has the meaning set forth in Section 3(i) hereof.

         "Notes" means the 4 1/4% Convertible Subordinated Notes due 2007 of the
Company to be purchased pursuant to the Purchase Agreement.

         "Notice and Questionnaire" means a written notice executed by the
respective Holder and delivered to the Company containing substantially the
information called for by the Selling Securityholder Notice and Questionnaire
attached as Annex A to the Offering Memorandum of the Company issued January 9,
2002 relating to the Notes.

         "Notice Holder" means, on any date, any Holder that has delivered a
Notice and Questionnaire to the Company on or prior to such date.

         "Purchase Agreement" has the meaning set forth in the preamble hereof.

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         "Prospectus" means the prospectus included in any Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any amendment or prospectus
supplement, including post-effective amendments, and all materials incorporated
by reference or explicitly deemed to be incorporated by reference in such
Prospectus.

         "Record Holder" means with respect to any Damages Payment Date relating
to any Notes or Underlying Common Stock as to which any Liquidated Damages
Amount has accrued, the registered holder of such Note or Underlying Common
Stock on the January 1 immediately preceding a Damages Payment Date occurring on
a January 15, and on the July 1 immediately preceding a Damages Payment Date
occurring on a July 15.

         "Registrable Securities" means the Notes until such Notes have been
converted into or exchanged for the Underlying Common Stock and, at all times
subsequent to any such conversion or exchange the Underlying Common Stock and
any securities into or for which such Underlying Common Stock has been converted
or exchanged, and any security issued with respect thereto upon any stock
dividend, split or similar event until, in the case of any such security, (A)
the earliest of (i) its effective registration under the Securities Act and
resale in accordance with the Registration Statement covering it, (ii)
expiration of the holding period that would be applicable under Rule 144(k) to a
sale by a non-Affiliate of the Company or (iii) its sale to the public pursuant
to Rule 144 (or any similar provision then in force, but not Rule 144A) under
the Securities Act, and (B) as a result of the event or circumstance described
in any of the foregoing clauses (i) through (iii), the legend with respect to
transfer restrictions required under the Indenture are removed or removable in
accordance with the terms of the Indenture or such legend, as the case may be.

         "Registration Expenses" has the meaning set forth in Section 5 hereof.

         "Registration Statement" means any registration statement of the
Company that covers any of the Registrable Securities pursuant to the provisions
of this Agreement including the Prospectus, amendments and supplements to such
registration statement, including post-effective amendments, all exhibits, and
all materials incorporated by reference or explicitly deemed to be incorporated
by reference in such registration statement.

         "Restricted Securities" means "Restricted Securities" as defined in
Rule 144.

         "Rule 144" means Rule 144 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted
by the SEC.

         "Rule 144A" means Rule 144A under the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC.

         "SEC" means the Securities and Exchange Commission.

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         "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated by the SEC thereunder.

         "Shelf Registration Statement" has the meaning set forth in Section
2(a) hereof.

         "Special Counsel" means Davis Polk & Wardwell or one such other
successor counsel as shall be specified by the Holders of a majority of the
Registrable Securities, but which may, with the written consent of the Initial
Purchasers (which shall not be unreasonably withheld), be another nationally
recognized law firm experienced in securities law matters designated by the
Company, the reasonable fees and expenses of which will be paid by the Company
pursuant to Section 5 hereof. For purposes of determining the holders of a
majority of the Registrable Securities in this definition, Holders of Notes
shall be deemed to be the Holders of the number of shares of Underlying Common
Stock into which such Notes are or would be convertible as of the date the
consent is requested.

         "Subsequent Shelf Registration Statement" has the meaning set forth in
Section 2(b) hereof.

         "TIA" means the Trust Indenture Act of 1939, as amended.

         "Trustee" means State Street Bank and Trust Company, the Trustee under
the Indenture.

         "Underlying Common Stock" means the Common Stock into which the Notes
are convertible or issued upon any such conversion.

         SECTION 2. Shelf Registration. (a) The Company shall prepare and file
or cause to be prepared and filed with the SEC, as soon as practicable but in
any event by the date (the "Filing Deadline Date") ninety (90) days after the
Issue Date, a Registration Statement for an offering to be made on a delayed or
continuous basis pursuant to Rule 415 of the Securities Act (a "Shelf
Registration Statement") registering the resale from time to time by Holders
thereof of all of the Registrable Securities (the "Initial Shelf Registration
Statement"). The Initial Shelf Registration Statement shall be on Form S-3 or
another appropriate form permitting registration of such Registrable Securities
for resale by such Holders in accordance with the methods of distribution
elected by the Holders and set forth in the Initial Shelf Registration
Statement. The Company shall use its reasonable best efforts to cause the
Initial Shelf Registration Statement to be declared effective under the
Securities Act as promptly as is practicable but in any event by the date (the
"Effectiveness Deadline Date") that is one hundred eighty (180) days after the
Issue Date, and, subject to the exceptions provided herein, to keep the Initial
Shelf Registration Statement (or any Subsequent Shelf Registration Statement)
continuously effective under the Securities Act until the expiration of the
Effectiveness Period. At the time the Initial Shelf Registration Statement is
declared effective, each Holder that became a Notice Holder on or prior to the
date ten (10) Business Days prior to such time of effectiveness shall be named
as a selling securityholder in the Initial Shelf Registration Statement and the
related Prospectus in such a manner as to permit such Holder to deliver such
Prospectus to purchasers of Registrable Securities in accordance with applicable
law. None of the Company's security holders (other than the Holders of
Registrable

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Securities) shall have the right to include any of the Company's securities in
the Shelf Registration Statement.

          (b) If the Initial Shelf Registration Statement or any Subsequent
Shelf Registration Statement ceases to be effective for any reason at any time
during the Effectiveness Period (other than because all Registrable Securities
registered thereunder shall have been resold pursuant thereto or shall have
otherwise ceased to be Registrable Securities), the Company shall use its
reasonable best efforts to obtain the prompt withdrawal of any order suspending
the effectiveness thereof, and in any event shall within thirty (30) days of
such cessation of effectiveness amend the Shelf Registration Statement in a
manner reasonably expected to obtain the withdrawal of the order suspending the
effectiveness thereof, or file an additional Shelf Registration Statement
covering all of the securities that as of the date of such filing are
Registrable Securities (a "Subsequent Shelf Registration Statement"). If a
Subsequent Shelf Registration Statement is filed, the Company shall use its
reasonable best efforts to cause the Subsequent Shelf Registration Statement to
become effective as promptly as is practicable after such filing and to keep
such Registration Statement (or subsequent Shelf Registration Statement)
continuously effective until the end of the Effectiveness Period.

          (c) The Company shall supplement and amend the Shelf Registration
Statement if required by the rules, regulations or instructions applicable to
the registration form used by the Company for such Shelf Registration Statement,
if required by the Securities Act or as reasonably requested by the Initial
Purchasers or by the Trustee on behalf of the Holders of the Registrable
Securities covered by such Shelf Registration Statement.

          (d) Each Holder agrees that if such Holder wishes to sell Registrable
Securities pursuant to a Shelf Registration Statement and related Prospectus, it
will do so only in accordance with this Section 2(d) and Section 3(i). Each
Holder wishing to sell Registrable Securities pursuant to a Shelf Registration
Statement and related Prospectus agrees to deliver a Notice and Questionnaire to
the Company at least three (3) Business Days prior to any intended distribution
of Registrable Securities under the Shelf Registration Statement. From and after
the date the Initial Shelf Registration Statement is declared effective, the
Company shall, as promptly as practicable after the date a Notice and
Questionnaire is delivered, and in any event upon the later of (x) ten (10)
Business Days after such date (but no earlier than ten (10) Business Days after
effectiveness) or (y) ten (10) Business Days after the expiration of any
Deferral Period in effect when the Notice and Questionnaire is delivered or put
into effect within ten (10) Business Days of such delivery date:

              (i) if required by applicable law, file with the SEC a
          post-effective amendment to the Shelf Registration Statement or
          prepare and, if required by applicable law, file a supplement to the
          related Prospectus or a supplement or amendment to any document
          incorporated therein by reference or file any other required document
          so that the Holder delivering such Notice and Questionnaire is named
          as a selling securityholder in the Shelf Registration Statement and
          the related Prospectus in such a manner as to permit such Holder to
          deliver such Prospectus to purchasers of the Registrable Securities in
          accordance with applicable law and, if the Company shall file a
          post-effective amendment to the Shelf Registration Statement, use its
          reasonable best efforts

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     to cause such post-effective amendment to be declared effective under the
     Securities Act as promptly as is practicable, but in any event by the date
     (the "Amendment Effectiveness Deadline Date") that is forty-five (45) days
     after the date such post-effective amendment is required by this clause to
     be filed;

           (ii)  provide such Holder copies of any documents filed pursuant to
     Section 2(d)(i); and

           (iii) notify such Holder as promptly as practicable after the
     effectiveness under the Securities Act of any post-effective amendment
     filed pursuant to Section 2(d)(i);

provided that if such Notice and Questionnaire is delivered during a Deferral
Period, the Company shall so inform the Holder delivering such Notice and
Questionnaire and shall take the actions set forth in clauses (i), (ii) and
(iii) above upon expiration of the Deferral Period in accordance with Section
3(i). Notwithstanding anything contained herein to the contrary, (i) the Company
shall be under no obligation to name any Holder that is not a Notice Holder as a
selling securityholder in any Registration Statement or related Prospectus and
(ii) the Amendment Effectiveness Deadline Date shall be extended by up to ten
(10) Business Days from the expiration of a Deferral Period (and the Company
shall incur no obligation to pay Liquidated Damages during such extension) if
such Deferral Period shall be in effect on the Amendment Effectiveness Deadline
Date.

     (e) The parties hereto agree that the Holders of Registrable Securities
will suffer damages, and that it would not be feasible to ascertain the extent
of such damages with precision, if

           (i)   the Initial Shelf Registration Statement has not been filed on
           or prior to the Filing Deadline Date,

           (ii)  the Initial Shelf Registration Statement has not been declared
     effective under the Securities Act on or prior to the Effectiveness
     Deadline Date,

           (iii) the Company has failed to perform its obligations set forth in
     Section 2(d) within the time period required therein,

           (iv)  any post-effective amendment to a Shelf Registration Statement
     filed pursuant to Section 2(d)(i) has not become effective under the
     Securities Act on or prior to the Amendment Effectiveness Deadline Date,

           (v)   the aggregate duration of Deferral Periods in any period
     exceeds the number of days permitted in respect of such period pursuant to
     Section 3(i) hereof, or

           (vi)  the number of Deferral Periods in any period exceeds the number
     permitted in respect of such period pursuant to Section 3(i) hereof.

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Each event described in any of the foregoing clauses (i) through (vi) is
individually referred to herein as an "Event." For purposes of this Agreement,
each Event set forth above shall begin and end on the dates set forth in the
table set forth below:

   Type of
   Event by          Beginning                            Ending
    Clause             Date                                Date
    ------             ----                                ----

     (i)     Filing Deadline Date               the date the Initial Shelf
                                                Registration Statement is filed

     (ii)    Effectiveness Deadline Date        the date the Initial Shelf
                                                Registration Statement becomes
                                                effective under the Securities
                                                Act

    (iii)    the date by which the Company is   the date the Company performs
             required to perform its            its obligations set forth in
             obligations under Section 2(d)     Section 2(d)

     (iv)    the Amendment Effectiveness        the date the applicable
             Deadline Date                      post-effective amendment to a
                                                Shelf Registration Statement
                                                becomes effective under the
                                                Securities Act

     (v)     the date on which the aggregate    termination of the Deferral
             duration of Deferral Periods in    Period that caused the limit on
             any period exceeds the number of   the aggregate duration of
             days permitted by Section 3(i)     Deferral Periods to be exceeded

     (vi)    the date of commencement of a      termination of the Deferral
             Deferral Period that causes the    Period that caused the number of
             number of Deferral Periods to      Deferral Periods to exceed the
             exceed the number permitted by     number permitted by Section 3(i)
             Section 3(i)

For purposes of this Agreement, Events shall begin on the beginning dates set
forth in the table above and shall continue until the ending dates set forth in
the table above.

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          Commencing on (and including) any date that an Event has begun and
ending on (but excluding) the next date on which there are no Events that have
occurred and are continuing (a "Damages Accrual Period"), the Company shall pay,
as liquidated damages and not as a penalty, to Record Holders of Registrable
Securities an amount (the "Liquidated Damages Amount") accruing, for each day in
the Damages Accrual Period, (i) in respect of any Note, at a rate per annum
equal to 0.5% of the aggregate principal amount of such Note and (ii) in respect
of each share of Underlying Common Stock at a rate per annum equal to 0.5% on
the Conversion Price on such date; provided that in the case of a Damages
Accrual Period that is in effect solely as a result of an Event of the type
described in clause (iii) or (iv) of the preceding paragraph, such Liquidated
Damages Amount shall be paid only to the Holders (as set forth in the succeeding
paragraph) that have delivered Notices and Questionnaires that caused the
Company to incur the obligations set forth in Section 2(d) the non-performance
of which is the basis of such Event, and only with respect to the Notes covered
by such Notices and Questionnaires. In calculating the Liquidated Damages Amount
on any date on which no Notes are outstanding, the Conversion Price and the
Liquidated Damages Amount shall be calculated as if the Notes were still
outstanding. Notwithstanding the foregoing, no Liquidated Damages Amount shall
accrue as to any Registrable Security from and after the earlier of (x) the date
such security is no longer a Registrable Security and (y) expiration of the
Effectiveness Period. The rate of accrual of the Liquidated Damages Amount with
respect to any period shall not exceed the rate provided for in this paragraph
notwithstanding the occurrence of multiple concurrent Events.

          The Liquidated Damages Amount shall accrue from the first day of the
applicable Damages Accrual Period, and shall be payable on each Damages Payment
Date during the Damages Accrual Period (and on the Damages Payment Date next
succeeding the end of the Damages Accrual Period if the Damages Accrual Period
does not end on a Damages Payment Date) to the Record Holders of the Registrable
Securities entitled thereto; provided that any Liquidated Damages Amount accrued
with respect to any Note or portion thereof redeemed by the Company on a
redemption date or converted into Underlying Common Stock on a conversion date
prior to the Damages Payment Date, shall, in any such event, be paid instead to
the Holder who submitted such Note or portion thereof for redemption or
conversion on the applicable redemption date or conversion date, as the case may
be, on such date (or promptly following the conversion date, in the case of
conversion); provided further, that, in the case of an Event of the type
described in clause (iii) or (iv) of the first paragraph of this Section 2(e),
such Liquidated Damages Amount shall be paid only to the Holders entitled
thereto pursuant to such first paragraph by check mailed to the address set
forth in the Notice and Questionnaire delivered by such Holder. The Trustee
shall be entitled, on behalf of registered holders of Notes or Underlying Common
Stock, to seek any available remedy for the enforcement of this Agreement,
including for the payment of such Liquidated Damages Amount. Notwithstanding the
foregoing, the parties agree that the sole damages payable for a violation of
the terms of this Agreement with respect to which liquidated damages are
expressly provided shall be such liquidated damages. Nothing shall preclude any
Holder from pursuing or obtaining specific performance or other equitable relief
with respect to this Agreement.

          All of the Company's obligations set forth in this Section 2(e) that
are outstanding with respect to any Registrable Security at the time such
security ceases to be a Registrable Security

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shall survive until such time as all such obligations with respect to such
security have been satisfied in full (notwithstanding termination of this
Agreement pursuant to Section 8(k)).

         The parties hereto agree that the liquidated damages provided for in
this Section 2(e) constitute a reasonable estimate of the damages that may be
incurred by Holders of Registrable Securities by reason of the failure of a
Shelf Registration Statement to be filed or declared effective or available for
effecting resales of Registrable Securities in accordance with the provisions
hereof.

         SECTION 3. Registration Procedures. In connection with the registration
obligations of the Company under Section 2 hereof, the Company shall:

                  (a) Prepare and file with the SEC a Registration Statement or
         Registration Statements on any appropriate form under the Securities
         Act available for the sale of the Registrable Securities by the Holders
         thereof in accordance with the intended method or methods of
         distribution thereof, and use its reasonable best efforts to cause each
         such Registration Statement to become effective and remain effective as
         provided herein; provided that before filing any Registration Statement
         or Prospectus or any amendments or supplements thereto with the SEC,
         the Company shall furnish to the Initial Purchasers and the Special
         Counsel of such offering, if any, subject to an obligation of
         confidentiality, copies of all such documents proposed to be filed and
         use its reasonable best efforts to reflect in each such document when
         so filed with the SEC such comments as the Initial Purchasers or the
         Special Counsel, if any, reasonably shall propose within five (5)
         Business Days of the delivery of such copies to the Initial Purchasers
         and the Special Counsel.

                  (b) Prepare and file with the SEC such amendments and
         post-effective amendments to each Registration Statement as may be
         necessary to keep such Registration Statement continuously effective
         for the applicable period specified in Section 2(a); cause the related
         Prospectus to be supplemented by any required prospectus supplement,
         and as so supplemented to be filed pursuant to Rule 424 (or any similar
         provisions then in force) under the Securities Act; and use its
         reasonable best efforts to comply with the provisions of the Securities
         Act applicable to it with respect to the disposition of all securities
         covered by such Registration Statement during the Effectiveness Period
         in accordance with the intended methods of disposition by the sellers
         thereof set forth in such Registration Statement as so amended or such
         Prospectus as so supplemented.

                  (c) As promptly as practicable give notice to the Notice
         Holders, the Initial Purchasers and the Special Counsel, (i) when any
         Prospectus, prospectus supplement, Registration Statement or
         post-effective amendment to a Registration Statement has been filed
         with the SEC and, with respect to a Registration Statement or any
         post-effective amendment, when the same has been declared effective,
         (ii) of any request, following the effectiveness of the Initial Shelf
         Registration Statement under the Securities Act, by the SEC or any
         other federal or state governmental authority for amendments or
         supplements to any Registration Statement or related Prospectus or for
         additional information, (iii) of the issuance by the SEC or any other
         federal or state governmental authority of any stop order suspending
         the effectiveness of any Registration Statement or the initiation or

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         threatening of any proceedings for that purpose, (iv) of the receipt by
         the Company of any notification with respect to the suspension of the
         qualification or exemption from qualification of any of the Registrable
         Securities for sale in any jurisdiction or the initiation or
         threatening of any proceeding for such purpose, (v) of the occurrence
         of a Material Event and (vi) of the determination by the Company that a
         post-effective amendment to a Registration Statement will be filed with
         the SEC, which notice may, at the discretion of the Company (or as
         required pursuant to Section 3(i)), state that it constitutes a
         Deferral Notice, in which event the provisions of Section 3(i) shall
         apply.

                  (d) Use its reasonable best efforts to obtain the withdrawal
         of any order suspending the effectiveness of a Registration Statement
         or the lifting of any suspension of the qualification (or exemption
         from qualification) of any of the Registrable Securities for sale in
         any jurisdiction in which they have been qualified for sale, in either
         case at the earliest possible moment, and provide immediate notice to
         each Notice Holder and the Initial Purchasers of the withdrawal of any
         such order.

                  (e) If reasonably requested by the Initial Purchasers or any
         Notice Holder, as promptly as practicable incorporate in a prospectus
         supplement or post-effective amendment to a Registration Statement such
         information as the Initial Purchasers and the Special Counsel, or such
         Notice Holder shall on the basis of a written opinion of
         nationally-recognized counsel experienced in such matters, determine to
         be required to be included therein by applicable law and make any
         required filings of such prospectus supplement or post-effective
         amendment.

                  (f) Upon request, as promptly as practicable furnish to each
         Notice Holder, the Special Counsel and the Initial Purchasers, without
         charge, at least one (1) conformed copy of the Registration Statement
         and any amendment thereto, including exhibits and all documents
         incorporated or deemed to be incorporated therein by reference.

                  (g) During the Effectiveness Period, deliver to each Notice
         Holder, the Special Counsel, if any, and the Initial Purchasers, in
         connection with any sale of Registrable Securities pursuant to a
         Registration Statement, without charge, as many copies of the
         Prospectus or Prospectuses relating to such Registrable Securities
         (including each preliminary prospectus) and any amendment or supplement
         thereto as such Notice Holder may reasonably request; and the Company
         hereby consents (except during such periods that a Deferral Notice is
         outstanding and has not been revoked) to the use of such Prospectus or
         each amendment or supplement thereto by each Notice Holder in
         connection with any offering and sale of the Registrable Securities
         covered by such Prospectus or any amendment or supplement thereto in
         the manner set forth therein.

                  (h) Prior to any public offering of the Registrable Securities
         pursuant to a Registration Statement, use its reasonable best efforts
         to register or qualify or cooperate with the Notice Holders and the
         Special Counsel in connection with the registration or qualification
         (or exemption from such registration or qualification) of such
         Registrable Securities for offer and sale under the securities or Blue
         Sky laws of such jurisdictions

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<PAGE>

         within the United States as any Notice Holder reasonably requests in
         writing (which request may be included in the Notice and
         Questionnaire); prior to any public offering of the Registrable
         Securities pursuant to the Shelf Registration Statement, use its
         reasonable best efforts to keep each such registration or
         qualification (or exemption therefrom) effective during the
         Effectiveness Period in connection with such Notice Holder's offer and
         sale of Registrable Securities pursuant to such registration or
         qualification (or exemption therefrom) and do any and all other acts
         or things reasonably necessary or advisable to enable the disposition
         in such jurisdictions of such Registrable Securities in the manner set
         forth in the relevant Registration Statement and the related
         Prospectus; provided that the Company will not be required to (i)
         qualify as a foreign corporation or as a dealer in securities in any
         jurisdiction where it would not otherwise be required to qualify but
         for this Agreement or (ii) take any action that would subject it to
         general service of process in suits or to additional taxation in any
         such jurisdiction.

                    (i)  Upon (A) the issuance by the SEC of a stop order
         suspending the effectiveness of the Shelf Registration Statement or the
         initiation of proceedings with respect to the Shelf Registration
         Statement under Section 8(d) or 8(e) of the Securities Act, (B) the
         occurrence of any event or the existence of any fact (a "Material
         Event") as a result of which any Registration Statement shall contain
         any untrue statement of a material fact or omit to state any material
         fact required to be stated therein or necessary to make the statements
         therein not misleading, or any Prospectus shall contain any untrue
         statement of a material fact or omit to state any material fact
         required to be stated therein or necessary to make the statements
         therein, in the light of the circumstances under which they were made,
         not misleading, or (C) the occurrence or existence of any pending
         corporate development that, in the reasonable discretion of the
         Company, makes it appropriate to suspend the availability of the Shelf
         Registration Statement and the related Prospectus for a discrete period
         of time:

                         (i) in the case of clause (B) above, subject to the
                    next sentence, as promptly as practicable prepare and file,
                    if necessary pursuant to applicable law, a post-effective
                    amendment to such Registration Statement or a supplement to
                    the related Prospectus or any document incorporated therein
                    by reference or file any other required document that would
                    be incorporated by reference into such Registration
                    Statement and Prospectus so that such Registration Statement
                    does not contain any untrue statement of a material fact or
                    omit to state any material fact required to be stated
                    therein or necessary to make the statements therein not
                    misleading, and such Prospectus does not contain any untrue
                    statement of a material fact or omit to state any material
                    fact required to be stated therein or necessary to make the
                    statements therein, in the light of the circumstances under
                    which they were made, not misleading, as thereafter
                    delivered to the purchasers of the Registrable Securities
                    being sold thereunder, and, in the case of a post-effective
                    amendment to a Registration Statement, subject to the next
                    sentence, use its reasonable best efforts to cause it to be
                    declared effective as promptly as is practicable, and

                                       12

<PAGE>

                        (ii) give notice to the Notice Holders, and the
                    Special Counsel, if any, that the availability of the Shelf
                    Registration Statement is suspended (a "Deferral Notice")
                    and, upon receipt of any Deferral Notice, each Notice Holder
                    agrees not to sell any Registrable Securities pursuant to
                    the Registration Statement until such Notice Holder's
                    receipt of copies of the supplemented or amended Prospectus
                    provided for in clause (i) above, or until it is advised in
                    writing by the Company that the Prospectus may be used, and
                    has received copies of any additional or supplemental
                    filings that are incorporated or deemed incorporated by
                    reference in such Prospectus.

                  The Company will use its reasonable best efforts to ensure
         that the use of the Prospectus may be resumed (x) in the case of clause
         (A) above, as promptly as is practicable, (y) in the case of clause (B)
         above, as soon as, in the sole judgment of the Company, public
         disclosure of such Material Event would not be prejudicial to or
         contrary to the interests of the Company or, if necessary to avoid
         unreasonable burden or expense, as soon as practicable thereafter and
         (z) in the case of clause (C) above, as soon as in the reasonable
         discretion of the Company, such suspension is no longer appropriate.
         The Company shall be entitled to exercise its right under this Section
         3(i) to suspend the availability of the Shelf Registration Statement or
         any Prospectus, without incurring or accruing any obligation to pay
         liquidated damages pursuant to Section 2(e), no more than one (1) time
         in any three month period or three (3) times in any twelve month
         period, and any such period during which the availability of the
         Registration Statement and any Prospectus is suspended (the "Deferral
         Period") shall, without incurring any obligation to pay liquidated
         damages pursuant to Section 2(e), not exceed 30 days; provided that the
         aggregate duration of any Deferral Periods shall not exceed 30 days in
         any three month period (or 60 days in any three month period in the
         event of a Material Event pursuant to which the Company has delivered a
         second notice as required below) or 90 days in any twelve (12) month
         period; provided that in the case of a Material Event relating to an
         acquisition or a probable acquisition or financing, recapitalization,
         business combination or other similar transaction, the Company may,
         without incurring any obligation to pay liquidated damages pursuant to
         Section 2(e), deliver to Notice Holders a second notice to the effect
         set forth above, which shall have the effect of extending the Deferral
         Period by up to an additional 30 days, or such shorter period of time
         as is specified in such second notice.

                    (j) If requested in writing in connection with a disposition
         of Registrable Securities pursuant to a Registration Statement, make
         reasonably available for inspection during normal business hours by a
         representative for the Notice Holders of such Registrable Securities,
         any broker-dealers, attorneys and accountants retained by such Notice
         Holders, and any attorneys or other agents retained by a broker-dealer
         engaged by such Notice Holders, all relevant financial and other
         records and pertinent corporate documents and properties of the Company
         and its subsidiaries, and cause the appropriate officers, directors and
         employees of the Company and its subsidiaries to make reasonably
         available for inspection during normal business hours on reasonable
         notice all relevant information reasonably requested by such
         representative for the Notice Holders, or any such broker-dealers,
         attorneys or accountants in connection with such disposition, in each
         case as is customary for similar "due diligence" examinations; provided
         that such persons

                                       13

<PAGE>

          shall first agree in writing with the Company that any information
          that is reasonably and in good faith designated by the Company in
          writing as confidential at the time of delivery of such information
          shall be kept confidential by such persons and shall be used solely
          for the purposes of exercising rights under this Agreement, unless (i)
          disclosure of such information is required by court or administrative
          order or is necessary to respond to inquiries of regulatory
          authorities, (ii) disclosure of such information is required by law
          (including any disclosure requirements pursuant to federal securities
          laws in connection with the filing of any Registration Statement or
          the use of any prospectus referred to in this Agreement), (iii) such
          information becomes generally available to the public other than as a
          result of a disclosure or failure to safeguard by any such
          person or (iv) such information becomes available to any such person
          from a source other than the Company and such source is not bound by a
          confidentiality agreement, and provided further that the foregoing
          inspection and information gathering shall, to the greatest extent
          possible, be coordinated on behalf of all the Notice Holders and the
          other parties entitled thereto by the Special Counsel.

                  (k) Comply with all applicable rules and regulations of the
          SEC and make generally available to its securityholders earning
          statements (which need not be audited) satisfying the provisions of
          Section 11(a) of the Securities Act and Rule 158 thereunder (or any
          similar rule promulgated under the Securities Act) for a 12-month
          period commencing on the first day of the first fiscal quarter of the
          Company commencing after the effective date of a Registration
          Statement, which statements shall be made available no later than 45
          days after the end of the 12-month period or 90 days if the 12-month
          period coincides with a fiscal year of the Company.

                  (l) Cooperate with each Notice Holder to facilitate the timely
          preparation and delivery of certificates representing Registrable
          Securities sold or to be sold pursuant to a Registration Statement,
          which certificates shall not bear any restrictive legends, and cause
          such Registrable Securities to be in such denominations as are
          permitted by the Indenture and registered in such names as such Notice
          Holder may request in writing at least one (1) Business Day prior to
          any sale of such Registrable Securities.

                  (m) Provide a CUSIP number for all Registrable Securities
          covered by each Registration Statement not later than the effective
          date of such Registration Statement and provide the Trustee and the
          transfer agent for the Common Stock with printed certificates for the
          Registrable Securities that are in a form eligible for deposit with
          The Depository Trust Company.

                  (n) Cooperate and assist in any filings required to be made
          with the National Association of Securities Dealers, Inc.

                  (o) Upon (i) the filing of the Initial Shelf Registration
          Statement and (ii) the effectiveness of the Initial Shelf Registration
          Statement, announce the same, in each case by release to Reuters
          Economic Services and Bloomberg Business News.

                                       14

<PAGE>

          SECTION 4. Holder's Obligations. Each Holder agrees, by acquisition of
the Registrable Securities, that no Holder shall be entitled to sell any of such
Registrable Securities pursuant to a Registration Statement or to receive a
Prospectus relating thereto, unless such Holder has furnished the Company with a
Notice and Questionnaire as required pursuant to Section 2(d) hereof (including
the information required to be included in such Notice and Questionnaire) and
the information set forth in the next sentence. Each Notice Holder agrees
promptly to furnish to the Company all information required to be disclosed in
order to make the information previously furnished to the Company by such Notice
Holder not misleading and any other information regarding such Notice Holder and
the distribution of such Registrable Securities as the Company may from time to
time reasonably request. Any sale of any Registrable Securities by any Holder
shall constitute a representation and warranty by such Holder that the
information relating to such Holder and its plan of distribution is as set forth
in the Prospectus delivered by such Holder in connection with such disposition,
that such Prospectus does not as of the time of such sale contain any untrue
statement of a material fact relating to or provided by such Holder or its plan
of distribution and that such Prospectus does not as of the time of such sale
omit to state any material fact relating to or provided by such Holder or its
plan of distribution necessary to make the statements in such Prospectus, in the
light of the circumstances under which they were made, not misleading.

          SECTION 5. Registration Expenses. The Company shall bear all fees and
expenses incurred in connection with the performance by the Company of its
obligations under Sections 2 and 3 of this Agreement whether or not any
Registration Statement is declared effective. Such fees and expenses shall
include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses (x) with respect to filings required to be
made with the National Association of Securities Dealers, Inc. and (y) of
compliance with federal and state securities or Blue Sky laws (including,
without limitation, reasonable fees and disbursements of the Special Counsel in
connection with Blue Sky qualifications of the Registrable Securities under the
laws of such jurisdictions as Notice Holders of a majority of the Registrable
Securities being sold pursuant to a Registration Statement may designate), (ii)
printing expenses (including, without limitation, expenses of printing
certificates for Registrable Securities in a form eligible for deposit with The
Depository Trust Company), (iii) duplication expenses relating to copies of any
Registration Statement or Prospectus delivered to any Holders hereunder, (iv)
fees and disbursements of counsel for the Company and the Special Counsel in
connection with the Shelf Registration Statement (provided that the Company
shall not be liable for the fees and expenses of more than one separate firm for
all parties participating in any transaction hereunder), (v) reasonable fees and
disbursements of the Trustee and its counsel and of the registrar and transfer
agent for the Common Stock and (vi) Securities Act liability insurance obtained
by the Company in its sole discretion. In addition, the Company shall pay the
internal expenses of the Company (including, without limitation, all salaries
and expenses of officers and employees performing legal or accounting duties),
the expense of any annual audit, the fees and expenses incurred in connection
with the listing by the Company of the Registrable Securities on any securities
exchange on which similar securities of the Company are then listed and the fees
and expenses of any person, including special experts, retained by the Company.
Notwithstanding the provisions of this Section 5, each seller of Registrable
Securities shall pay selling expenses and all registration expenses to the
extent required by applicable law.

                                       15

<PAGE>

          SECTION 6. Indemnification.

           (a) Indemnification by the Company. The Company shall indemnify and
hold harmless each Notice Holder and each person, if any, who controls any
Notice Holder (within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act) from and against any losses, liabilities,
claims, damages and expenses (including, without limitation, any legal or other
expenses reasonably incurred in connection with defending or investigating any
such action or claim) (collectively, "Losses"), arising out of or based upon any
untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement or Prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or based upon any omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, provided
that the Company shall not be liable in any such case to the extent that any
such Losses arise out of or are based upon an untrue statement or alleged untrue
statement contained in or omission or alleged omission from any of such
documents in reliance upon and conformity with any of the information relating
to the Holders furnished to the Company in writing by a Holder expressly for use
therein; provided further, that the indemnification contained in this paragraph
shall not inure to the benefit of any Holder (or to the benefit of any person
controlling such Holder) on account of any such Losses arising out of or based
upon an untrue statement or alleged untrue statement or omission or alleged
omission made in any preliminary prospectus or Prospectus provided in each case
the Company has performed its obligations under Section 3(a) hereof if (A) (i)
such Holder failed to send or deliver a copy of the Prospectus with or prior to
the delivery of written confirmation of the sale by such Holder to the person
asserting the claim from which such Losses arise and (ii) the Prospectus would
have corrected such untrue statement or alleged untrue statement or such
omission or alleged omission, (B) (x) such untrue statement or alleged untrue
statement, omission or alleged omission is corrected in an amendment or
supplement to the Prospectus and (y) having previously been furnished by or on
behalf of the Company with copies of the Prospectus as so amended or
supplemented, such Holder thereafter fails to deliver such Prospectus as so
amended or supplemented, with or prior to the delivery of written confirmation
of the sale of a Registrable Security to the person asserting the claim from
which such Losses arise, or (C) such untrue or alleged untrue statement or
omission is contained in a preliminary prospectus or Prospectus used during a
Deferral Period.

           (b) Indemnification by Holders. Each Holder agrees severally and not
jointly to indemnify and hold harmless the Company and its respective directors
and officers, and each person, if any, who controls the Company (within the
meaning of either Section 15 of the Securities Act or Section 20 of the Exchange
Act) or any other Holder, from and against all Losses arising out of or based
upon any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement or Prospectus or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out of or based
upon any omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in reliance upon and
in conformity

                                       16

<PAGE>

with information furnished to the Company by such Holder expressly for use in
such Registration Statement or Prospectus or amendment or supplement thereto. In
no event shall the liability of any Holder hereunder be greater in amount than
the dollar amount of the proceeds received by such Holder upon the sale of the
Registrable Securities pursuant to the Registration Statement giving rise to
such indemnification obligation.

          (c)  Conduct of Indemnification Proceedings. In case any proceeding
(including any governmental investigation) shall be instituted involving any
person in respect of which indemnity may be sought pursuant to Section 6(a) or
6(b) hereof, such person (the "indemnified party") shall promptly notify the
person against whom such indemnity may be sought (the "indemnifying party") in
writing and the indemnifying party, upon request of the indemnified party, shall
retain counsel reasonably satisfactory to the indemnified party to represent the
indemnified party and any others the indemnifying party may designate in such
proceeding and shall pay the reasonable fees and disbursements of such counsel
related to such proceeding. In any such proceeding, any indemnified party shall
have the right to retain its own counsel, but the fees and expenses of such
counsel shall be at the expense of such indemnified party unless (i) the
indemnifying party and the indemnified party shall have mutually agreed to the
retention of such counsel or (ii) the named parties to any such proceeding
(including any impleaded parties) include both the indemnifying party and the
indemnified party and representation of both parties by the same counsel would
be inappropriate due to actual or potential differing interests between them. It
is understood that the indemnifying party shall not, in respect of the legal
expenses of any indemnified party in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the fees and expenses of
more than one separate firm (in addition to any local counsel) for all
indemnified parties, and that all such fees and expenses shall be reimbursed as
they are incurred. Such separate firm shall be designated in writing by, in the
case of parties indemnified pursuant to Section 6(a), the Holders of a majority
(with Holders of Notes deemed to be the Holders, for purposes of determining
such majority, of the number of shares of Underlying Common Stock into which
such Notes are or would be convertible as of the date on which such designation
is made) of the Registrable Securities covered by the Registration Statement
held by Holders that are indemnified parties pursuant to Section 6(a) and, in
the case of parties indemnified pursuant to Section 6(b), the Company. The
indemnifying party shall not be liable for any settlement of any proceeding
effected without its written consent, but if settled with such consent or if
there be a final judgment for the plaintiff, the indemnifying party agrees to
indemnify the indemnified party from and against any loss or liability by reason
of such settlement or judgment. Notwithstanding the foregoing sentence, if at
any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel as contemplated
by the second and third sentences of this paragraph, the indemnifying party
agrees that it shall be liable for any settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more than 60
days after receipt by such indemnifying party of the aforesaid request and (ii)
such indemnifying party shall not have reimbursed the indemnified party in
accordance with such request prior to the date of such settlement; provided that
the indemnifying party shall not be so liable for a settlement effected without
its written consent so long as it is reasonably contesting in good faith the
amount of the fees and expenses of counsel of the indemnified party that must be
reimbursed. No indemnifying party shall, without the prior written consent of
the indemnified party, effect any settlement of any pending or threatened
proceeding in respect of

                                       17

<PAGE>

which any indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party, unless such settlement
includes an unconditional release of such indemnified party from all liability
on claims that are the subject matter of such proceeding.

          (d)  Contribution. To the extent that the indemnification provided for
in this Section 6 is unavailable to an indemnified party under Section 6(a) or
6(b) hereof in respect of any Losses or is insufficient to hold such indemnified
party harmless, then each applicable indemnifying party, in lieu of indemnifying
such indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such Losses (i) in such proportion as is
appropriate to reflect the relative benefits received by the indemnifying party
or parties on the one hand and the indemnified party or parties on the other
hand or (ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the indemnifying party or parties on the one hand and of the indemnified party
or parties on the other hand in connection with the statements or omissions that
resulted in such Losses, as well as any other relevant equitable considerations.
Benefits received by the Company shall be deemed to be equal to the total net
proceeds from the initial placement pursuant to the Purchase Agreement (before
deducting expenses) of the Registrable Securities to which such Losses relate.
Benefits received by any Holder shall be deemed to be equal to the value of
receiving Registrable Securities that are registered under the Securities Act.
The relative fault of the Holders on the one hand and the Company on the other
hand shall be determined by reference to, among other things, whether the untrue
or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Holders
or by the Company, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The Holders' respective obligations to contribute pursuant to this paragraph are
several in proportion to the respective number of Registrable Securities they
have sold pursuant to a Registration Statement, and not joint.

         The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 6(d) were determined by pro rata
allocation or by any other method or allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
The amount paid or payable by an indemnified party as a result of the Losses
referred to in the immediately preceding paragraph shall be deemed to include,
subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any such action or claim. Notwithstanding this Section 6(d), an
indemnifying party that is a selling Holder shall not be required to contribute
any amount in excess of the amount by which the total price at which the
Registrable Securities sold by such indemnifying party and distributed to the
public were offered to the public exceeds the amount of any damages that such
indemnifying party has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.

                                       18

<PAGE>

          (e)  The indemnity, contribution and expense reimbursement obligations
of the parties hereunder shall be in addition to any liability any indemnified
party may otherwise have hereunder, under the Purchase Agreement or otherwise.

          (f)  The indemnity and contribution provisions contained in this
Section 6 shall remain operative and in full force and effect regardless of (i)
any termination of this Agreement, (ii) any investigation made by or on behalf
of any Holder or any person controlling any Holder, or the Company, or the
Company's officers or directors or any person controlling the Company and (iii)
the sale of any Registrable Securities by any Holder.

          SECTION 7. Information Requirements. The Company covenants that, if at
any time before the end of the Effectiveness Period the Company is not subject
to the reporting requirements of the Exchange Act, it will cooperate with any
Holder and take such further reasonable action as any Holder may reasonably
request in writing (including, without limitation, making such reasonable
representations as any such Holder may reasonably request), all to the extent
required from time to time to enable such Holder to sell Registrable Securities
without registration under the Securities Act within the limitation of the
exemptions provided by Rule 144 and Rule 144A under the Securities Act and
customarily taken in connection with sales pursuant to such exemptions. Upon the
written request of any Holder, the Company shall deliver to such Holder a
written statement as to whether it has complied with such filing requirements,
unless such a statement has been included in the Company's most recent report
filed pursuant to Section 13 or Section 15(d) of Exchange Act. Notwithstanding
the foregoing, nothing in this Section 7 shall be deemed to require the Company
to register any of its securities (other than the Common Stock) under any
section of the Exchange Act.

          SECTION 8. Miscellaneous.

          (a)  No Conflicting Agreements. The Company is not, as of the date
hereof, a party to, nor shall it, on or after the date of this Agreement, enter
into, any agreement with respect to its securities that conflicts with the
rights granted to the Holders in this Agreement. The Company represents and
warrants that the rights granted to the Holders hereunder do not in any way
conflict with the rights granted to the holders of the Company's securities
under any other agreements.

          (b)  Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the Company has obtained the written consent of Holders
of a majority of the then outstanding Registrable Securities (with Holders of
Notes deemed to be the Holders, for purposes of this Section, of the number of
shares of Underlying Common Stock into which such Notes are or would be
convertible as of the date on which such consent is requested). Notwithstanding
the foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of Holders whose
securities are being sold pursuant to a Registration Statement and that does not
directly or indirectly affect the rights of other Holders may be given by
Holders of at least a majority of the Registrable Securities being sold by such
Holders pursuant to such Registration Statement; provided, that the provisions
of this sentence may not be amended, modified, or

                                       19

<PAGE>

supplemented except in accordance with the provisions of the immediately
preceding sentence. Each Holder of Registrable Securities outstanding at the
time of any such amendment, modification, supplement, waiver or consent or
thereafter shall be bound by any such amendment, modification, supplement,
waiver or consent effected pursuant to this Section 8(b), whether or not any
notice, writing or marking indicating such amendment, modification, supplement,
waiver or consent appears on the Registrable Securities or is delivered to such
Holder.

          (c)  Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, by telecopier, by
courier guaranteeing overnight delivery or by first-class mail, return receipt
requested, and shall be deemed given (i) when made, if made by hand delivery,
(ii) upon confirmation, if made by telecopier, (iii) one (1) Business Day after
being deposited with such courier, if made by overnight courier or (iv) on the
date indicated on the notice of receipt, if made by first-class mail, to the
parties as follows:

                  (i)  if to a Holder, at the most current address given by
          such Holder to the Company in a Notice and Questionnaire or any
          amendment thereto;

                  (ii) if to the Company, to:

Axcelis Technologies, Inc.
55 Cherry Hill Drive
Beverly, Massachusetts 01915
Attention: General Counsel
Telecopy No.: (978) 787-4200

and

Palmer & Dodge LLP
111 Huntington Avenue
Boston, Massachusetts 02199
Attention: Matthew Dallett
Telecopy No.: (617) 227-4420

                                       20

<PAGE>

          (iii) if to the Initial Purchasers, to:

Morgan Stanley & Co. IncorporatedSalomon Smith Barney Inc.
SG Cowen Securities Corporation

c/o Morgan Stanley & Co. Incorporated
1585 Broadway
New York, New York 10036
Attention: Equity Capital Markets
Telecopy No.: (212) 761-0538

or to such other address as such person may have furnished to the other persons
identified in this Section 8(c) in writing in accordance herewith.

          (d)  Approval of Holders. Whenever the consent or approval of Holders
of a specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Company or its affiliates (as such term is
defined in Rule 405 under the Securities Act) (other than the Initial Purchasers
or subsequent Holders if such subsequent Holders are deemed to be such
affiliates solely by reason of their holdings of such Registrable Securities)
shall not be counted in determining whether such consent or approval was given
by the Holders of such required percentage.

          (e)  Successors and Assigns. Any person who purchases any Registrable
Securities from the Initial Purchasers shall be deemed, for purposes of this
Agreement, to be an assignee of the Initial Purchasers. This Agreement shall
inure to the benefit of and be binding upon the successors and assigns of each
of the parties and shall inure to the benefit of and be binding upon each Holder
of any Registrable Securities.

          (f)  Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be original and all of which taken together
shall constitute one and the same agreement.

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

          (h)  Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

          (i)  Severability. If any term, provision, covenant or restriction of
this Agreement is held to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated thereby, and the parties hereto shall use their reasonable best
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction, it being intended that all of the rights and privileges
of the parties shall be enforceable to the fullest extent permitted by law.

                                       21

<PAGE>

          (j)  Entire Agreement. This Agreement is intended by the parties as a
final expression of their agreement and is intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein and the registration rights
granted by the Company with respect to the Registrable Securities. Except as
provided in the Purchase Agreement, there are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein,
with respect to the registration rights granted by the Company with respect to
the Registrable Securities. This Agreement supersedes all prior agreements and
undertakings among the parties with respect to such registration rights. No
party hereto shall have any rights, duties or obligations other than those
specifically set forth in this Agreement. In no event will such methods of
distribution take the form of an underwritten offering of the Registrable
Securities without the prior agreement of the Company.

          (k)  Termination. This Agreement and the obligations of the parties
hereunder shall terminate upon the end of the Effectiveness Period, except for
any liabilities or obligations under Section 4, 5 or 6 hereof and the
obligations to make payments of and provide for liquidated damages under Section
2(e) hereof to the extent such damages accrue prior to the end of the
Effectiveness Period, each of which shall remain in effect in accordance with
its terms.

                                       22

<PAGE>

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

                                           AXCELIS TECHNOLOGIES, INC.

                                           By /s/   Brian R. Bachman
                                              ---------------------------
                                             Name:  Brian R. Bachman
                                             Title: Vice Chairman and CEO

Confirmed and accepted as of
the date first above written:

MORGAN STANLEY & CO. INCORPORATED

By /s/ Timothy H. Harned
   --------------------------------
Name:  Timothy H. Harned
Title: Executive Director

SALOMON SMITH BARNEY INC.

By /s/ Lawrence Braham
   --------------------------------
Name:  Lawrence Braham
Title: Vice President

SG COWEN SECURITIES CORPORATION

By /s/ Schuyler Grow
   --------------------------------
Name:  Schuyler Grow
Title: Managing Director<PAGE>

                                                                     Exhibit 4.1
                                                                     -----------

                          REGISTRATION RIGHTS AGREEMENT

                                  by and among

                       BOTTOMLINE TECHNOLOGIES (DE), INC.

                       GENERAL ATLANTIC PARTNERS 74 L.P.,

                       GAP COINVESTMENT PARTNERS II, L.P.,

                                  GAPSTAR, LLC

                                       and

                               GAPCO GMBH & CO. KG

                       -----------------------------------
                             Dated: January 15, 2002
                       -----------------------------------

<PAGE>

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

<TABLE>
<CAPTION>
                                                                                        Page
                                                                                        ----
<S>                                                                                     <C>
1.        Definitions                                                                      1

2.        General; Securities Subject to this Agreement ..............................     5
     (a)  Grant of Rights ............................................................     5
     (b)  Registrable Securities .....................................................     5

3.        Demand Registration ........................................................     5
     (a)  Request for Demand Registration ............................................     5
     (b)  Incidental or "Piggy-Back" Rights with Respect to a Demand Registration ....     6
     (c)  Effective Demand Registration ..............................................     6
     (d)  Expenses ...................................................................     7
     (e)  Underwriting Procedures ....................................................     7
     (f)  Selection of Underwriters ..................................................     7

4.        Incidental or "Piggy-Back" Registration ....................................     7
     (a)  Request for Incidental Registration ........................................     8
     (b)  Expenses ...................................................................     8

5.        Restrictions on Public Sale by Designated Holders ..........................     8

6.        Registration Procedures ....................................................     9
     (a)  Obligations of the Company .................................................     9
     (b)  Seller Information .........................................................    12
     (c)  Notice to Discontinue ......................................................    12
     (d)  Registration Expenses ......................................................    12

7.   Indemnification; Contribution ...................................................    13
     (a)  Indemnification by the Company .............................................    13
     (b)  Indemnification by Designated Holders ......................................    13
     (c)  Conduct of Indemnification Proceedings .....................................    14
     (d)  Contribution ...............................................................    15

8.        Rule 144 ...................................................................    15

9.        Miscellaneous ..............................................................    15
     (a)  Recapitalizations, Exchanges, etc ..........................................    16
     (b)  No Inconsistent Agreements .................................................    16
     (c)  Remedies ...................................................................    16
     (d)  Amendments and Waivers .....................................................    16
     (e)  Notices ....................................................................    16
     (f)  Successors and Assigns; Third Party Beneficiaries ..........................    18
     (g)  Counterparts ...............................................................    19
</TABLE>

                                       i

<PAGE>

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
        <S>                                                                 <C>
        (h)     Headings ..................................................   19
        (i)     GOVERNING LAW..............................................   19
        (j)     Severability...............................................   19
        (k)     Rules of Construction......................................   19
        (l)     Entire Agreement...........................................   19
        (m)     Further Assurances.........................................   20
        (n)     Other Agreements...........................................   20
</TABLE>

                                       ii

<PAGE>

SCHEDULES
I         Selling Stockholders
9(b)      Inconsistent Agreements

                                       1

<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

          REGISTRATION RIGHTS AGREEMENT, dated January 15, 2002 (this
"Agreement"), among Bottomline Technologies (de), Inc., a Delaware corporation
 ---------
(the "Company"), General Atlantic Partners 74, L.P., a Delaware limited
      -------
partnership ("GAP LP"), GAP Coinvestment Partners II, L.P., a Delaware limited
              ------
partnership ("GAP Coinvestment"), GapStar, LLC, a Delaware limited liability
              ----------------
company ("GapStar"), and GAPCO GmbH & Co. KG, a German limited partnership
          -------
("GmbH Coinvestment" and together with GAP LP, GAP Coinvestment and GapStar, the
  -----------------
"Purchasers").
 ----------

          WHEREAS, pursuant to the Stock Purchase Agreement, dated January 8,
2002 (the "Stock Purchase Agreement"), among the Company, GAP LP, GAP
           ------------------------
Coinvestment, GapStar, GmbH Coinvestment and the Stockholders listed on Schedule
                                                                        --------
I (the "Selling Stockholders") thereto, (i) the Company has agreed to issue and
-       --------------------
sell to the Purchasers an aggregate of 2,100,000 shares of Common Stock, par
value $0.001 per share, of the Company (the "Common Stock") and (ii) the Selling
                                             ------------
Stockholders have agreed to sell to the Purchasers an aggregate of 600,000
shares of Common Stock; and

          WHEREAS, in order to induce each of the Purchasers to purchase its
shares of Common Stock, the Company has agreed to grant registration rights with
respect to the Registrable Securities (as hereinafter defined) as set forth in
this Agreement.

          NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth herein and for good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto agree as
follows:

          1.   Definitions. As used in this Agreement, and unless the context
               -----------
requires a different meaning, the following terms have the meanings indicated:

          "Affiliate" shall mean any Person who is an "affiliate" as defined in
           ---------
Rule 12b-2 of the General Rules and Regulations under the Exchange Act.

          "Agreement" means this Agreement as the same may be amended,
           ---------
supplemented or modified in accordance with the terms hereof.

          "Approved Underwriter" has the meaning set forth in Section 3(f) of
           --------------------
this Agreement.

          "Board of Directors" means the Board of Directors of the Company.
           ------------------

          "Business Day" means any day other than a Saturday, Sunday or other
           ------------
day on which commercial banks in the State of New York are authorized or
required by law or executive order to close.

          "Closing Price" means, with respect to the Registrable Securities, as
           -------------
of the date of determination, (a) if the Registrable Securities are listed on a
national securities

<PAGE>

                                                                               2

exchange, the closing price per share of a Registrable Security on such date
published in The Wall Street Journal (National Edition) or, if no such closing
             ------------------------------------------
price on such date is published in The Wall Street Journal (National Edition),
                                   ------------------------------------------
the average of the closing bid and asked prices on such date, as officially
reported on the principal national securities exchange on which the Registrable
Securities are then listed or admitted to trading; or (b) if the Registrable
Securities are not then listed or admitted to trading on any national securities
exchange but are designated as national market system securities by the NASD,
the last trading price per share of a Registrable Security on such date; or (c)
if there shall have been no trading on such date or if the Registrable
Securities are not designated as national market system securities by the NASD,
the average of the reported closing bid and asked prices of the Registrable
Securities on such date as shown by The Nasdaq Stock Market, Inc. (or its
successor) and reported by any member firm of The New York Stock Exchange, Inc.
selected by the Company; or (d) if none of (a), (b) or (c) is applicable, a
market price per share determined in good faith by the Board of Directors or, if
such determination is not satisfactory to the Designated Holder for whom such
determination is being made, by a nationally recognized investment banking firm
selected by the Company and such Designated Holder, the expenses for which shall
be borne equally by the Company and such Designated Holder. If trading is
conducted on a continuous basis on any exchange, then the closing price shall be
at 4:00 P.M. New York City time.

               "Commission" means the Securities and Exchange Commission or any
                ----------
similar agency then having jurisdiction to enforce the Securities Act.

               "Common Stock" means the Common Stock, par value $0.001 per
                ------------
share, of the Company or any other capital stock of the Company into which such
stock is reclassified or reconstituted and any other common stock of the
Company.

               "Company" has the meaning set forth in the preamble to this
                -------
Agreement.

               "Company Underwriter" has the meaning set forth in Section 4(a)
                -------------------
of this Agreement.

               "Demand Registration" has the meaning set forth in Section 3(a)
                -------------------
of this Agreement.

               "Designated Holder" means each of the General Atlantic
                -----------------
Stockholders and any transferee of any of them to whom Registrable Securities
have been transferred in accordance with Section 9(f) of this Agreement, other
than a transferee to whom Registrable Securities have been transferred pursuant
to a Registration Statement under the Securities Act or Rule 144 or Regulation S
under the Securities Act (or any successor rule thereto).

               "Exchange Act" means the Securities Exchange Act of 1934, as
                ------------
amended, and the rules and regulations of the Commission thereunder.

<PAGE>

                                                                               3

               "GAP Coinvestment" has the meaning set forth in the preamble to
                ----------------
this Agreement.

               "GAP LLC" means General Atlantic Partners, LLC, a Delaware
                -------
limited liability company and the general partner of GAP LP and the managing
member of GapStar, and any successor to such entity.

               "GAP LP" has the meaning set forth in the preamble to this
                ------
Agreement.

               "GapStar" has the meaning set forth in the preamble to this
                -------
Agreement.

               "General Atlantic Designee" has the meaning set forth in the
                -------------------------
Stock Purchase Agreement.

               "General Atlantic Stockholders" means GAP LP, GAP Coinvestment,
                -----------------------------
GapStar, GmbH Coinvestment, any Subsequent General Atlantic Purchaser and any
Affiliate thereof to whom Registrable Securities are transferred in accordance
with Section 9(f) of this Agreement.

               "GmbH Coinvestment" has the meaning set forth in the preamble to
                -----------------
this Agreement.

               "GmbH Management" means GAPCO Management GmbH, a German company
                ---------------
with limited liability and the general partner of GmbH Coinvestment, and any
successor to such entity.

               "Holders' Counsel" has the meaning set forth in Section 6(a)(i)
                ----------------
of this Agreement.

               "Incidental Registration" has the meaning set forth in Section
                -----------------------
4(a) of this Agreement.

               "Indemnified Party" has the meaning set forth in Section 7(c) of
                -----------------
this Agreement.

               "Indemnifying Party" has the meaning set forth in Section 7(c) of
                ------------------
this Agreement.

               "Initiating Holders" has the meaning set forth in Section 3(a) of
                ------------------
this Agreement.

               "Inspector" has the meaning set forth in Section 6(a)(vii) of
                ---------
this Agreement.

               "Liability" has the meaning set forth in Section 7(a) of this
                ---------
Agreement.

<PAGE>

                                                                               4

               "Market Price" means, on any date of determination, the average
                ------------
of the daily Closing Price of the Registrable Securities for the immediately
preceding thirty (30) days on which the national securities exchanges are open
for trading.

               "NASD" means the National Association of Securities Dealers, Inc.
                ----

               "Person" means any individual, firm, corporation, partnership,
                ------
limited liability company, trust, incorporated or unincorporated association,
joint venture, joint stock company, limited liability company, government (or an
agency or political subdivision thereof) or other entity of any kind, and shall
include any successor (by merger or otherwise) of such entity.

               "Records" has the meaning set forth in Section 6(a)(vii) of this
                -------
Agreement.

               "Registrable Securities" means each of the following: (a) any and
                ----------------------
all Purchased Shares or New Securities (each as defined in the Stock Purchase
Agreement) acquired by the Designated Holders pursuant to the Stock Purchase
Agreement, (b) any other shares of Common Stock acquired or owned by any of the
Designated Holders after the date hereof if such Designated Holder is an
Affiliate of the Company and (c) any shares of Common Stock issued or issuable
to any of the Designated Holders with respect to the foregoing by way of stock
dividend, stock split, recapitalization or other similar event thereof.

               "Registration Expenses" has the meaning set forth in Section 6(d)
                ---------------------
of this Agreement.

               "Registration Statement" means a Registration Statement filed
                ----------------------
pursuant to the Securities Act.

               "Securities Act" means the Securities Act of 1933, as amended,
                --------------
and the rules and regulations of the Commission promulgated thereunder.

               "Selling Stockholders" has the meaning set forth in the recitals
                --------------------
to this Agreement.

               "Stock Equivalent" means any security or obligation which is
                ----------------
convertible, exchangeable or exercisable into or for shares of Common Stock or
capital stock of the Company, and any option, warrant or other subscription or
purchase right with respect to any of the foregoing.

               "Stock Purchase Agreement" has the meaning set forth in the
                ------------------------
recitals to this Agreement.

               "Subsequent General Atlantic Purchaser" means any Affiliate of
                -------------------------------------
GAP LLC that, after the date hereof, acquires shares of Common Stock, other
shares of capital stock of the Company, or any Stock Equivalent.

<PAGE>

                                                                               5

               "Valid Business Reason" has the meaning set forth in Section 3(a)
                ---------------------
of this Agreement.

               2.   General; Securities Subject to this Agreement.
                    ---------------------------------------------

               (a) Grant of Rights. The Company hereby grants registration
                   ---------------
rights to the Designated Holders upon the terms and conditions set forth in this
Agreement.

               (b) Registrable Securities. For the purposes of this Agreement,
                   ----------------------
Registrable Securities will cease to be Registrable Securities upon the earlier
of (i) the date a Registration Statement covering such Registrable Securities
has been declared effective under the Securities Act by the Commission and such
Registrable Securities have been disposed of pursuant to such effective
Registration Statement, (ii) the date the entire amount of the Registrable
Securities owned by a Designated Holder may be sold in a single sale, in the
opinion of counsel satisfactory to the Company and such Designated Holder, each
in their reasonable judgment, without any limitation as to volume pursuant to
Rule 144 (or any successor provision then in effect) under the Securities Act or
(iii) the date the Registrable Securities are proposed to be sold or distributed
by a Person not entitled to the registration rights granted by this Agreement.

               3.   Demand Registration.
                    -------------------

               (a) Request for Demand Registration. At any time after January
                   -------------------------------
15, 2003, the General Atlantic Stockholders, acting through GAP LLC or its
written designee, the identity of which shall be certified to the Company in
writing by the General Atlantic Stockholders (the "Initiating Holders"), may
make a written request to the Company to register, and the Company shall
register, under the Securities Act (other than pursuant to a Registration
Statement on Form S-4 or S-8 or any successor thereto) (a "Demand
Registration"), the number of Registrable Securities held by such Initiating
Holders stated in such request; provided, however, that the Company shall not be
obligated to effect more than one such Demand Registration for the Initiating
Holders unless less than seventy-five percent (75%) of the requested securities
were included in the previous Demand Registration, in which case the Initiating
Holders shall have the right to require the Company to effect one additional
Demand Registration. Notwithstanding the foregoing, the Company shall not be
required to effect more than two Demand Registrations. If the Board of
Directors, in its good faith judgment, determines that any registration of
Registrable Securities should not be made or continued because it would
materially interfere with any material financing, acquisition, corporate
reorganization or merger or other material transaction involving the Company (a
"Valid Business Reason"), the Company may (x) postpone filing a Registration
Statement relating to a Demand Registration until such Valid Business Reason no
longer exists, but in no event for more than ninety (90) days, and (y) in case a
Registration Statement has been filed relating to a Demand Registration, the
Company, upon the approval of a majority of the Board of Directors, such
majority to include the General Atlantic Designee, may cause such Registration
Statement to be withdrawn and its effectiveness terminated or may postpone
amending or supplementing such Registration Statement. The Company shall give
written notice of its determination to postpone or withdraw a Registration
Statement

<PAGE>

                                                                               6

and of the fact that the Valid Business Reason for such postponement or
withdrawal no longer exists, in each case, promptly after the occurrence
thereof. Notwithstanding anything to the contrary contained herein, the Company
may not postpone or withdraw a filing under this Section 3(a) more than once in
any twelve (12) month period. Each request for a Demand Registration by the
Initiating Holders shall state the amount of the Registrable Securities proposed
to be sold and the intended method of disposition thereof.

               (b) Incidental or "Piggy-Back" Rights with Respect to a Demand
                   ----------------------------------------------------------
Registration. Each of the Designated Holders (other than Initiating Holders
------------
which have requested a registration under Section 3(a)) may offer its or his
Registrable Securities under any Demand Registration pursuant to this Section
3(b). Within five (5) days after the receipt of a request for a Demand
Registration from an Initiating Holder, the Company shall (i) give written
notice thereof to all of the Designated Holders (other than Initiating Holders
which have requested a registration under Section 3(a)) and (ii) subject to
Section 3(e), include in such registration all of the Registrable Securities
held by such Designated Holders from whom the Company has received a written
request for inclusion therein within ten (10) days after the Company gives
notice to such Designated Holders, such written notice referred to in clause (i)
above. Each such request by such Designated Holders shall specify the number of
Registrable Securities proposed to be registered. The failure of any Designated
Holder to respond within such 10-day period referred to in clause (ii) above
shall be deemed to be a waiver of such Designated Holder's rights under this
Section 3 with respect to such Demand Registration. Any Designated Holder may
waive its rights under this Section 3 prior to the expiration of such 10-day
period by giving written notice to the Company, with a copy to the Initiating
Holders. If a Designated Holder sends the Company a written request for
inclusion of part or all of such Designated Holder's Registrable Securities in a
registration, such Designated Holder shall not be entitled to withdraw or revoke
such request without the prior written consent of the Company in its sole
discretion unless, as a result of facts or circumstances arising after the date
on which such request was made relating to the Company or to market conditions,
such Designated Holder reasonably determines that participation in such
registration would have a material adverse effect on such Designated Holder.

               (c) Effective Demand Registration. The Company shall use its
                   -----------------------------
reasonable best efforts to cause any such Demand Registration to become and
remain effective not later than sixty (60) days after it receives a request
under Section 3(a) hereof. A registration shall not constitute a Demand
Registration until it has become effective and remains continuously effective
for the lesser of (i) the period during which all Registrable Securities
registered in the Demand Registration are sold and (ii) 120 days; provided,
however, that a registration shall not constitute a Demand Registration if (x)
after such Demand Registration has become effective, such registration or the
related offer, sale or distribution of Registrable Securities thereunder is
interfered with by any stop order, injunction or other order or requirement of
the Commission or other governmental agency or court for any reason not
attributable to the Initiating Holders and such interference is not thereafter
eliminated or (y) the conditions specified in the underwriting agreement, if
any, entered into in connection with such Demand Registration are not satisfied
or waived, other than by reason of a failure by the Initiating Holder.

<PAGE>

                                                                               7

               (d) Expenses. The Company shall pay all Registration Expenses in
                   --------
connection with a Demand Registration, whether or not such Demand Registration
becomes effective; provided, however, that if a Demand Registration is withdrawn
at the request of the Initiating Holders (other than as a result of information
concerning the business or financial condition of the Company which is made
known to the Initiating Holders after the date on which such Demand Registration
was requested) and if the Initiating Holders elect not to have such registration
count as a Demand Registration, the Initiating Holders and the other Designated
Holders who requested Registrable Securities to be registered on such
registration statement shall pay the Registration Expenses of such registration
pro rata in accordance with the number of their Registrable Securities included
in such registration.

               (e) Underwriting Procedures. If the Company or the Initiating
                   -----------------------
Holders holding a majority of the Registrable Securities held by all of the
Initiating Holders so elect, the Company shall use its reasonable best efforts
to cause such Demand Registration to be in the form of a firm commitment
underwritten offering and the managing underwriter or underwriters selected for
such offering shall be the Approved Underwriter selected in accordance with
Section 3(f). In connection with any Demand Registration under this Section 3
involving an underwritten offering, none of the Registrable Securities held by
any Designated Holder making a request for inclusion of such Registrable
Securities pursuant to Section 3(b) hereof shall be included in such
underwritten offering unless such Designated Holder accepts the terms of the
offering as agreed upon by the Company, the Initiating Holders and the Approved
Underwriter, and then only in such quantity as will not, in the opinion of the
Approved Underwriter, jeopardize the success of such offering by the Initiating
Holders. If the Approved Underwriter advises the Company that the aggregate
amount of such Registrable Securities requested to be included in such offering
is sufficiently large to have a material adverse effect on the success of such
offering, then the Company shall include in such registration only the aggregate
amount of Registrable Securities that the Approved Underwriter believes may be
sold without any such material adverse effect and shall reduce the amount of
Registrable Securities to be included in such registration, first as to the
Company, second as to the Designated Holders (who are not Initiating Holders and
who requested to participate in such registration pursuant to Section 3(b)
hereof) as a group, if any, and third as to the Initiating Holders as a group,
pro rata within each group based on the number of Registrable Securities owned
by each such Designated Holder or Initiating Holder, as the case may be.

               (f) Selection of Underwriters. If any Demand Registration of
                   -------------------------
Registrable Securities is in the form of an underwritten offering, the Company
shall select and obtain an investment banking firm of national reputation to act
as the managing underwriter of the offering (the "Approved Underwriter");
provided, however, that the Approved Underwriter shall, in any case, also be
approved by the Initiating Holders, such approval not to be unreasonably
withheld.

               4.   Incidental or "Piggy-Back" Registration.
                    ---------------------------------------

<PAGE>

                                                                               8

               (a) Request for Incidental Registration. At any time after the
                   -----------------------------------
date hereof, if the Company proposes to file a Registration Statement under the
Securities Act with respect to an offering by the Company for its own account
(other than a Registration Statement on Form S-4 or S-8 or any successor
thereto) or for the account of any stockholder of the Company other than the
Designated Holders, then the Company shall give written notice of such proposed
filing to each of the Designated Holders at least twenty (20) days before the
anticipated filing date, and such notice shall describe the proposed
registration and distribution and offer such Designated Holders the opportunity
to register the number of Registrable Securities as each such Designated Holder
may request (an "Incidental Registration"). The Company shall use its reasonable
best efforts (within twenty (20) days of the notice provided for in the
preceding sentence) to cause the managing underwriter or underwriters in the
case of a proposed underwritten offering (the "Company Underwriter") to permit
each of the Designated Holders who have requested in writing to participate in
the Incidental Registration to include its or his Registrable Securities in such
offering on the same terms and conditions as the securities of the Company or
the account of such other stockholder, as the case may be, included therein. In
connection with any Incidental Registration under this Section 4(a) involving an
underwritten offering, the Company shall not be required to include any
Registrable Securities in such underwritten offering unless the Designated
Holders thereof accept the terms of the underwritten offering as agreed upon
between the Company, such other stockholders, if any, and the Company
Underwriter, and then only in such quantity as the Company Underwriter believes
will not jeopardize the success of the offering by the Company. If the Company
Underwriter determines that the registration of all or part of the Registrable
Securities which the Designated Holders have requested to be included would
materially adversely affect the success of such offering, then the Company shall
be required to include in such Incidental Registration, to the extent of the
amount that the Company Underwriter believes may be sold without causing such
adverse effect, first, all of the securities to be offered for the account of
the Company; second, the Registrable Securities to be offered for the account of
the Designated Holders pursuant to this Section 4, pro rata based on the number
of Registrable Securities owned by each such Designated Holder; and third, any
other securities requested to be included in such offering.

               (b) Expenses. The Company shall bear all Registration Expenses in
                   --------
connection with any Incidental Registration pursuant to this Section 4, whether
or not such Incidental Registration becomes effective.

               5.   Restrictions on Public Sale by Designated Holders. To the
                    -------------------------------------------------
extent (i) requested (A) by the Company or the Initiating Holders, as the case
may be, in the case of a non-underwritten public offering and (B) by the
Approved Underwriter or the Company Underwriter, as the case may be, in the case
of an underwritten public offering and (ii) all of the Company's officers,
directors and holders in excess of one percent (1%) of its outstanding capital
stock execute agreements identical to those referred to in this Section 5(a),
each Designated Holder agrees (x) not to effect any public sale or distribution
of any Registrable Securities or of any securities convertible into or
exchangeable or exercisable for such Registrable Securities, including a sale
pursuant to Rule 144 under the Securities Act, or offer to sell, contract to
sell (including without

<PAGE>

                                                                               9

limitation any short sale), grant any option to purchase or enter into any
hedging or similar transaction with the same economic effect as a sale any
Registrable Securities and (y) not to make any request for a Demand Registration
under this Agreement, during the ninety (90) day period or such shorter period,
if any, mutually agreed upon by such Designated Holder and the requesting party
beginning on the effective date of the Registration Statement (except as part of
such registration) for such public offering. No Designated Holder of Registrable
Securities subject to this Section 5(a) shall be released from any obligation
under any agreement, arrangement or understanding entered into pursuant to this
Section 5(a) unless all other Designated Holders of Registrable Securities
subject to the same obligation are also released.

                6.      Registration Procedures.
                        -----------------------

                (a) Obligations of the Company. Whenever registration of
                    --------------------------
Registrable Securities has been requested pursuant to Section 3 or Section 4 of
this Agreement, the Company shall use its reasonable best efforts to effect the
registration and sale of such Registrable Securities in accordance with the
intended method of distribution thereof as quickly as practicable, and in
connection with any such request, the Company shall, as expeditiously as
possible:

                                (i)     prepare and file with the Commission a
Registration Statement on any form for which the Company then qualifies or which
counsel for the Company shall deem appropriate and which form shall be available
for the sale of such Registrable Securities in accordance with the intended
method of distribution thereof, and cause such Registration Statement to become
effective; provided, however, that (x) before filing a Registration Statement or
           --------  -------
prospectus or any amendments or supplements thereto, the Company shall provide
counsel selected by the Designated Holders holding a majority of the Registrable
Securities being registered in such registration ("Holders Counsel") and any
                                                   ---------------
other Inspector with an adequate and appropriate opportunity to review and
comment on such Registration Statement and each prospectus included therein (and
each amendment or supplement thereto) to be filed with the Commission, subject
to such documents being under the Company's control, and (y) the Company shall
notify the Holders Counsel and each seller of Registrable Securities of any stop
order issued or threatened by the Commission and take all action required to
prevent the entry of such stop order or to remove it if entered;

                                (ii)    prepare and file with the Commission
such amendments and supplements to such Registration Statement and the
prospectus used in connection therewith as may be necessary to keep such
Registration Statement effective for the lesser of (x) 120 days and (y) such
shorter period which will terminate when all Registrable Securities covered by
such Registration Statement have been sold, and comply with the provisions of
the Securities Act with respect to the disposition of all securities covered by
such Registration Statement during such period in accordance with the intended
methods of disposition by the sellers thereof set forth in such Registration
Statement;

<PAGE>

                                                                              10

                                (iii)   furnish to each seller of Registrable
Securities such number of copies of such Registration Statement, each amendment
and supplement thereto (in each case including all exhibits thereto), and the
prospectus included in such Registration Statement (including each preliminary
prospectus) and any prospectus filed under Rule 424 under the Securities Act as
each such seller may reasonably request in order to facilitate the disposition
of the Registrable Securities owned by such seller;

                                (iv)    register or qualify such Registrable
Securities under such other securities or "blue sky" laws of such jurisdictions
as any seller of Registrable Securities may request, and to continue such
qualification in effect in such jurisdiction for as long as permissible pursuant
to the laws of such jurisdiction, or for as long as any such seller requests or
until all of such Registrable Securities are sold, whichever is shortest, and do
any and all other acts and things which may be reasonably necessary or advisable
to enable any such seller to consummate the disposition in such jurisdictions of
the Registrable Securities owned by such seller; provided, however, that the
                                                 --------  -------
Company shall not be required to (x) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
Section 6(a)(iv), (y) subject itself to taxation in any such jurisdiction or (z)
consent to general service of process in any such jurisdiction;

                                (v)     notify each seller of Registrable
Securities at any time when a prospectus relating thereto is required to be
delivered under the Securities Act, upon discovery that, or upon the happening
of any event as a result of which, the prospectus included in such Registration
Statement contains an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading and the Company shall promptly prepare a supplement or amendment to
such prospectus and furnish to each seller of Registrable Securities a
reasonable number of copies of such supplement to or an amendment of such
prospectus as may be necessary so that, after delivery to the purchasers of such
Registrable Securities, such prospectus shall not contain an untrue statement of
a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading;

                                (vi)    enter into and perform customary
agreements (including an underwriting agreement in customary form with the
Approved Underwriter or Company Underwriter, if any, selected as provided in
Section 3 or Section 4, as the case may be) and take such other actions as are
prudent and reasonably required in order to expedite or facilitate the
disposition of such Registrable Securities, including causing its officers to
participate in "road shows" and other information meetings organized by the
Approved Underwriter or Company Underwriter;

                                (vii)   make available at reasonable times for
inspection by any seller of Registrable Securities, any managing underwriter
participating in any disposition of such Registrable Securities pursuant to a
Registration Statement, Holders' Counsel and any attorney, accountant or other
agent retained by any such seller or any managing underwriter (each, an
"Inspector" and collectively, the "Inspectors"), all
 ---------                         ----------

<PAGE>

                                                                              11

financial and other records, pertinent corporate documents and properties of the
Company and its subsidiaries (collectively, the "Records") as shall be
                                                 -------
reasonably necessary to enable them to exercise their due diligence
responsibility, and cause the Company's and its subsidiaries' officers,
directors and employees, and the independent public accountants of the Company,
to supply all information reasonably requested by any such Inspector in
connection with such Registration Statement. Records that the Company
determines, in good faith, to be confidential and which it notifies the
Inspectors are confidential shall not be disclosed by the Inspectors (and the
Inspectors shall confirm their agreement in writing in advance to the Company if
the Company shall so request) unless (x) the disclosure of such Records is
necessary, in the Company's judgment, to avoid or correct a misstatement or
omission in the Registration Statement, (y) the release of such Records is
ordered pursuant to a subpoena or other order from a court of competent
jurisdiction after exhaustion of all appeals therefrom or (z) the information in
such Records was known to the Inspectors on a non-confidential basis prior to
its disclosure by the Company or has been made generally available to the
public. Each seller of Registrable Securities agrees that it shall, upon
learning that disclosure of such Records is sought in a court of competent
jurisdiction, give notice to the Company and allow the Company, at the Company's
expense, to undertake appropriate action to prevent disclosure of the Records
deemed confidential;

                                (viii)  if such sale is pursuant to an
underwritten offering, obtain a "cold comfort" letters dated the effective date
of the Registration Statement and the date of the closing under the underwriting
agreement from the Company's independent public accountants in customary form
and covering such matters of the type customarily covered by "cold comfort"
letters as Holders' Counsel or the managing underwriter reasonably requests;

                                (ix)    furnish, at the request of any seller of
Registrable Securities on the date such securities are delivered to the
underwriters for sale pursuant to such registration or, if such securities are
not being sold through underwriters, on the date the Registration Statement with
respect to such securities becomes effective, an opinion, dated such date, of
counsel representing the Company for the purposes of such registration,
addressed to the underwriters, if any, and to the seller making such request,
covering such legal matters with respect to the registration in respect of which
such opinion is being given as the underwriters, if any, and such seller may
reasonably request and are customarily included in such opinions;

                                (x)     comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as
soon as reasonably practicable but no later than fifteen (15) months after the
effective date of the Registration Statement, an earnings statement covering a
period of twelve (12) months beginning after the effective date of the
Registration Statement, in a manner which satisfies the provisions of Section
11(a) of the Securities Act and Rule 158 thereunder;

                                (xi)    cause all such Registrable Securities to
be listed on each securities exchange on which similar securities issued by the
Company are then listed, provided that the applicable listing requirements are
                         --------
satisfied;

<PAGE>

                                                                              12

                                (xii)   keep Holders' Counsel advised in writing
as to the initiation and progress of any registration under Section 3 or Section
4 hereunder;

                                (xiii)  cooperate with each seller of
Registrable Securities and each underwriter participating in the disposition of
such Registrable Securities and their respective counsel in connection with any
filings required to be made with the NASD; and

                                (xiv)   take all other steps reasonably
necessary to effect the registration of the Registrable Securities contemplated
hereby.

                (b) Seller Information. The Company may require each seller of
                    ------------------
Registrable Securities as to which any registration is being effected to
furnish, and such seller shall furnish, to the Company such information
regarding the distribution of such securities as the Company may from time to
time reasonably request in writing.

                (c) Notice to Discontinue. Each Designated Holder agrees that,
                    ---------------------
upon receipt of any notice from the Company of the happening of any event of the
kind described in Section 6(a)(v), such Designated Holder shall forthwith
discontinue disposition of Registrable Securities pursuant to the Registration
Statement covering such Registrable Securities until such Designated Holder's
receipt of the copies of the supplemented or amended prospectus contemplated by
Section 6(a)(v) and, if so directed by the Company, such Designated Holder shall
deliver to the Company (at the Company's expense) all copies, other than
permanent file copies then in such Designated Holder's possession, of the
prospectus covering such Registrable Securities which is current at the time of
receipt of such notice. If the Company shall give any such notice, the Company
shall extend the period during which such Registration Statement shall be
maintained effective pursuant to this Agreement (including, without limitation,
the period referred to in Section 6(a)(ii)) by the number of days during the
period from and including the date of the giving of such notice pursuant to
Section 6(a)(v) to and including the date when sellers of such Registrable
Securities under such Registration Statement shall have received the copies of
the supplemented or amended prospectus contemplated by and meeting the
requirements of Section 6(a)(v).

                (d) Registration Expenses. The Company shall, subject to the
                    ---------------------
proviso in Section 3(d), pay all expenses arising from or incident to its
performance of, or compliance with, this Agreement, in connection with
Registration Statements filed pursuant to the terms of this Agreement,
including, without limitation, (i) Commission, stock exchange and NASD
registration and filing fees, (ii) all fees and expenses incurred in complying
with securities or "blue sky" laws (including reasonable fees, charges and
disbursements of counsel to any underwriter incurred in connection with "blue
sky" qualifications of the Registrable Securities as may be set forth in any
underwriting agreement), (iii) all printing, messenger and delivery expenses,
(iv) the fees, charges and expenses of counsel to the Company and of its
independent public accountants and any other accounting fees, charges and
expenses incurred by the Company (including, without limitation, any expenses
arising from any "cold comfort" letters or any special audits incident to or
required by any registration or qualification) and any reasonable

<PAGE>

                                                                              13

legal fees and expenses incurred of one outside counsel for the General Atlantic
Stockholders in connection with any Demand Registration, and (v) any liability
insurance or other premiums for insurance obtained by the Company in connection
with any Demand Registration, or Incidental Registration pursuant to the terms
of this Agreement, regardless of whether such Registration Statement is declared
effective. All of the expenses described in the preceding sentence of this
Section 6(d) are referred to herein as "Registration Expenses." The Designated
Holders of Registrable Securities sold pursuant to a Registration Statement
shall bear the expense of any broker's commission or underwriter s discount or
commission relating to registration and sale of such Designated Holders'
Registrable Securities and, subject to clause (iv) above, shall bear the fees
and expenses of their own counsel.

                7.      Indemnification; Contribution.
                        -----------------------------

                (a) Indemnification by the Company. The Company agrees to
                    ------------------------------
indemnify and hold harmless each Designated Holder, its partners, directors,
officers, affiliates and each Person who controls (within the meaning of Section
15 of the Securities Act) such Designated Holder from and against any and all
losses, claims, damages, liabilities and expenses (including reasonable costs of
investigation) (each, a "Liability" and collectively, "Liabilities"), arising
out of or based upon any untrue, or allegedly untrue, statement of a material
fact contained in any Registration Statement, prospectus or preliminary
prospectus or notification or offering circular (as amended or supplemented if
the Company shall have furnished any amendments or supplements thereto) or
arising out of or based upon any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading under the circumstances such statements were made, except
insofar as such Liability arises out of or is based upon any untrue statement or
alleged untrue statement or omission or alleged omission contained in such
Registration Statement, preliminary prospectus or final prospectus in reliance
and in conformity with information concerning such Designated Holder furnished
in writing to the Company by such Designated Holder expressly for use therein,
including, without limitation, the information furnished to the Company pursuant
to Section 7(b). The Company shall also provide customary indemnities to any
underwriters of the Registrable Securities, their officers, directors and
employees and each Person who controls such underwriters (within the meaning of
Section 15 of the Securities Act) to the same extent as provided above with
respect to the indemnification of the Designated Holders of Registrable
Securities.

                (b) Indemnification by Designated Holders.  In connection with
                    -------------------------------------
any Registration Statement in which a Designated Holder is participating
pursuant to Section 3 or Section 4 hereof, each such Designated Holder shall
promptly furnish to the Company in writing such information with respect to such
Designated Holder as the Company may reasonably request or as may be required by
law for use in connection with any such Registration Statement or prospectus and
all information required to be disclosed in order to make the information
previously furnished to the Company by such Designated Holder not materially
misleading or necessary to cause such Registration Statement not to omit a
material fact with respect to such Designated Holder necessary in order to make
the statements therein not misleading. Each Designated Holder agrees to

<PAGE>

                                                                              14

indemnify and hold harmless the Company, any underwriter retained by the Company
and each Person who controls the Company or such underwriter (within the meaning
of Section 15 of the Securities Act) to the same extent as the foregoing
indemnity from the Company to the Designated Holders, but only if such statement
or alleged statement or omission or alleged omission was made in reliance upon
and in conformity with information with respect to such Designated Holder
furnished in writing to the Company by such Designated Holder expressly for use
in such Registration Statement or prospectus, including, without limitation, the
information furnished to the Company pursuant to this Section 7(b); provided,
however, that the total amount to be indemnified by such Designated Holder
pursuant to this Section 7(b) shall be limited to the net proceeds (after
deducting the underwriters' discounts and commissions) received by such
Designated Holder in the offering to which the Registration Statement or
prospectus relates.

               (c) Conduct of Indemnification Proceedings. Any Person entitled
                   --------------------------------------
to indemnification hereunder (the "Indemnified Party") agrees to give prompt
written notice to the indemnifying party (the "Indemnifying Party") after the
receipt by the Indemnified Party of any written notice of the commencement of
any action, suit, proceeding or investigation or threat thereof made in writing
for which the Indemnified Party intends to claim indemnification or contribution
pursuant to this Agreement; provided, however, that the failure so to notify the
Indemnifying Party shall not relieve the Indemnifying Party of any Liability
that it may have to the Indemnified Party hereunder (except to the extent that
the Indemnifying Party is materially prejudiced or otherwise forfeits
substantive rights or defenses by reason of such failure). If notice of
commencement of any such action is given to the Indemnifying Party as above
provided, the Indemnifying Party shall be entitled to participate in and, to the
extent it may wish, jointly with any other Indemnifying Party similarly
notified, to assume the defense of such action at its own expense, with counsel
chosen by it and reasonably satisfactory to such Indemnified Party. The
Indemnified Party shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of such
counsel shall be paid by the Indemnified Party unless (i) the Indemnifying Party
agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense
of such action with counsel reasonably satisfactory to the Indemnified Party or
(iii) the named parties to any such action (including any impleaded parties)
include both the Indemnifying Party and the Indemnified Party and such parties
have been advised by such counsel that either (x) representation of such
Indemnified Party and the Indemnifying Party by the same counsel would be
inappropriate under applicable standards of professional conduct or (y) there
may be one or more legal defenses available to the Indemnified Party which are
different from or additional to those available to the Indemnifying Party. In
any of such cases, the Indemnifying Party shall not have the right to assume the
defense of such action on behalf of such Indemnified Party, it being understood,
however, that the Indemnifying Party shall not be liable for the fees and
expenses of more than one separate firm of attorneys (in addition to any local
counsel) for all Indemnified Parties. No Indemnifying Party shall be liable for
any settlement entered into without its written consent, which consent shall not
be unreasonably withheld. No Indemnifying Party shall, without the consent of
such Indemnified Party, effect any settlement of any pending or threatened
proceeding in respect of which such Indemnified Party is a party and

<PAGE>

                                                                              15

indemnity has been sought hereunder by such Indemnified Party, unless such
settlement includes an unconditional release of such Indemnified Party from all
liability for claims that are the subject matter of such proceeding.

               (d) Contribution. If the indemnification provided for in this
                   ------------
Section 8 from the Indemnifying Party is due but unavailable to an Indemnified
Party hereunder in respect of any Liabilities referred to herein, then the
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such Liabilities in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions which resulted in such Liabilities, as well as any other relevant
equitable considerations. The relative faults of such Indemnifying Party and
Indemnified Party shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material fact, has
been made by, or relates to information supplied by, such Indemnifying Party or
Indemnified Party, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such action. The amount paid
or payable by a party as a result of the Liabilities referred to above shall be
deemed to include, subject to the limitations set forth in Sections 7(a), 7(b)
and 7(c), any legal or other fees, charges or expenses reasonably incurred by
such party in connection with any investigation or proceeding; provided that the
total amount to be contributed by such Designated Holder shall be limited to the
net proceeds (after deducting the underwriters' discounts and commissions)
received by such Designated Holder in the offering.

               The parties hereto agree that it would not be just and equitable
if contribution pursuant to this Section 7(d) were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in the immediately preceding paragraph.
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.

               8. Rule 144. The Company covenants that it shall (a) file any
                  --------
reports required to be filed by it under the Exchange Act and (b) take such
further action as each Designated Holder may reasonably request (including
providing any information necessary to comply with Rule 144 under the Securities
Act), all to the extent required from time to time to enable such Designated
Holder to sell Registrable Securities without registration under the Securities
Act within the limitation of the exemptions provided by (i) Rule 144 under the
Securities Act, as such rule may be amended from time to time, or Regulation S
under the Securities Act or (ii) any similar rules or regulations hereafter
adopted by the Commission. The Company shall, upon the request of any Designated
Holder, deliver to such Designated Holder a written statement as to whether it
has complied with such requirements.

               9. Miscellaneous.
                  -------------

<PAGE>

                                                                              16

               (a) Recapitalizations, Exchanges, etc. The Company shall cause
                   ---------------------------------
any successor or assign (whether by merger, consolidation, sale of assets or
otherwise) to enter into a new registration rights agreement with the Designated
Holders on terms substantially the same as this Agreement as a condition of any
such transaction.

               (b) No Inconsistent Agreements. Except as set forth on Schedule
                   --------------------------
9(b), the Company represents and warrants that it has not granted to any Person
the right to now or in the future request or require the Company to register any
securities issued by the Company, other than the rights granted to the
Designated Holders herein. The Company shall not enter into any agreement with
respect to its securities that is inconsistent with the rights granted to the
Designated Holders in this Agreement or grant any additional registration rights
to any Person or with respect to any securities which are not Registrable
Securities which are prior in right to or inconsistent with the rights granted
in this Agreement, except that the Company may grant the registration rights
held by the General Atlantic Stockholders to any Subsequent General Atlantic
Purchaser.

               (c) Remedies. The Designated Holders, in addition to being
                   --------
entitled to exercise all rights granted by law, including recovery of damages,
shall be entitled to specific performance of their rights under this Agreement.
The Company agrees that monetary damages would not be adequate compensation for
any loss incurred by reason of a breach by it of the provisions of this
Agreement and hereby agrees to waive in any action for specific performance the
defense that a remedy at law would be adequate.

               (d) Amendments and Waivers. Except as otherwise provided herein,
                   ----------------------
the provisions of this Agreement may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given unless consented to in writing by (i) the Company and (ii) the General
Atlantic Stockholders holding Registrable Securities representing (after giving
effect to any adjustments) at least a majority of the aggregate number of
Registrable Securities owned by all of the General Atlantic Stockholders. Any
such written consent shall be binding upon the Company and all of the Designated
Holders. Notwithstanding the first sentence of this Section 9(d), the Company,
without the consent of any other party, may amend this Agreement to add any
Subsequent General Atlantic Purchaser as a party to this Agreement as a General
Atlantic Stockholder.

               (e) Notices. All notices, demands and other communications
                   -------
provided for or permitted hereunder shall be made in writing and shall be made
by registered or certified first-class mail, return receipt requested,
telecopier, courier service or personal delivery:

                            (i) if to the Company:

                            Bottomline Technologies (de), Inc.
                            155 Fleet Street
                            Portsmouth, NH 03801
                            Telecopy: 603-559-4040
                            Attention: Robert A. Eberle

<PAGE>

                                                                              17

                            with a copy to:

                            Hale and Dorr LLP
                            60 State Street
                            Boston, MA 02109
                            Telecopy:  617-526-5000
                            Attention: John A. Burgess, Esq.

                            (ii)   if to GAP LP, GapStar or GAP Coinvestment:

                            c/o General Atlantic Service Corporation
                            3 Pickwick Plaza
                            Greenwich, CT 06830
                            Telecopy:  (203) 622-8818
                            Attention: Matthew Nimetz
                                       Thomas J. Murphy

                            with a copy to:

                            Paul, Weiss, Rifkind, Wharton & Garrison
                            1285 Avenue of the Americas
                            New York, NY 10019-6064
                            Telecopy:  (212) 757-3990
                            Attention: Douglas A. Cifu, Esq.

                            (iii)  if to GmbH Coinvestment:

                            c/o General Atlantic Partners GmbH
                            Koenigsalle 88
                            40212 Duesseldorf
                            Germany
                            Telecopy:  011-49-211-602-888-89
                            Attention: Matthew Nimetz
                                       Thomas J. Murphy

<PAGE>

                                                                              18

                            with a copy to:

                            General Atlantic Service Corporation
                            3 Pickwick Plaza
                            Greenwich, CT  06830
                            Telecopy:  (203) 622-8818
                            Attention: Matthew Nimetz
                                       Thomas J. Murphy

                            and

                            Paul, Weiss, Rifkind, Wharton & Garrison
                            1285 Avenue of the Americas
                            New York, NY 10019-6064
                            Telecopy:  (212) 757-3990
                            Attention: Douglas A. Cifu, Esq.

                            (iv)  if to any other Designated Holder, at its
address as it appears on the record books of the Company.

               All such notices, demands and other communications shall be
deemed to have been duly given (i) when delivered by hand, if personally
delivered; (ii) one Business Day after being sent, if sent via a reputable
nationwide overnight courier service guaranteeing next business day delivery;
(iii) five (5) Business Days after being sent, if sent by registered or
certified mail, return receipt requested, postage prepaid; and (iv) when receipt
is mechanically acknowledged, if telecopied. Any party may by notice given in
accordance with this Section 9(e) designate another address or Person for
receipt of notices hereunder. Any party may give any notice, request, consent or
other communication under this Agreement using any other means (including,
without limitation, personal delivery, messenger service, first class mail or
electronic mail), but no such notice, request, consent or other communication
shall be deemed to have been duly given unless and until it is actually received
by the party to whom it is given.

               (f) Successors and Assigns; Third Party Beneficiaries. This
                   -------------------------------------------------
Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of the parties hereto as hereinafter provided. The Demand
Registration rights and related rights of the General Atlantic Stockholders
contained in Section 3 hereof, shall be (i) with respect to any Registrable
Security that is transferred to an Affiliate of a General Atlantic Stockholders,
automatically transferred to such Affiliate and (ii) with respect to any
Registrable Security that is transferred in all cases to a non-Affiliate,
transferred only with the written consent of the Company which consent shall not
be unreasonably withheld; provided that (x) the transfer of rights pursuant to
clause (i) or clause (ii) shall be contingent upon the transferee providing a
written instrument to the Company notifying the Company of such transfer and
assignment and agreeing in writing to be bound by the terms of this Agreement
and (y) the transfer of rights pursuant to clause (ii) shall be contingent upon
the transferee acquiring not less than 100,000 Registrable

<PAGE>

                                                                              19

Securities (subject to stock splits, stock dividends or similar events). The
incidental or "piggy-back" registration rights of the Designated Holders
contained in Sections 3(b) and 4 hereof and the other rights of each of the
Designated Holders with respect thereto shall be, with respect to any
Registrable Security, automatically transferred to any Person who is the
transferee of such Registrable Security; provided that such transfer of rights
shall be contingent upon (x) the transferee providing a written instrument to
the Company notifying the Company of such transfer and assignment, and agreeing
in writing to be bound by the terms of this Agreement and (y) the transferee
acquiring not less than 100,000 Registrable Securities (subject to stock splits,
stock dividends or similar events). All of the obligations of the Company
hereunder shall survive any such transfer. Except as provided in Section 7, no
Person other than the parties hereto and their successors and permitted assigns
is intended to be a beneficiary of this Agreement.

                (g) Counterparts. This Agreement may be executed in any number
                    ------------
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

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

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

                (j) Severability. If any one or more of the provisions contained
                    ------------
herein, or the application thereof in any circumstance, is held invalid, illegal
or unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions hereof shall not be in any way impaired, unless the provisions held
invalid, illegal or unenforceable shall substantially impair the benefits of the
remaining provisions hereof.

                (k) Rules of Construction.  Unless the context otherwise
                    ---------------------
requires, references to sections or subsections refer to sections or subsections
of this Agreement.

                (l) Entire Agreement. Subject to any letter agreements among the
                    ----------------
Company, the Designated Holders and/or certain stockholders of the Company, this
Agreement is intended by the parties as a final expression of their agreement
and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto with respect to the subject matter contained
herein. There are no restrictions, promises, representations, warranties or
undertakings with respect to the subject matter contained herein, other than
those set forth or referred to herein. This Agreement supersedes all prior
agreements and understandings among the parties with respect to such subject
matter.

<PAGE>

                                                                              20

                (m) Further Assurances.  Each of the parties shall execute such
                    ------------------
documents and perform such further acts as may be reasonably required or
desirable to carry out or to perform the provisions of this Agreement.

                (n) Other Agreements. Nothing contained in this Agreement shall
                    ----------------
be deemed to be a waiver of, or release from, any obligations any party hereto
may have under, or any restrictions on the transfer of Registrable Securities or
other securities of the Company imposed by, any other agreement including, but
not limited to, the Stock Purchase Agreement.

                  [Remainder of page intentionally left blank]

<PAGE>

                  IN WITNESS WHEREOF, the undersigned have executed, or have
caused to be executed, this Registration Rights Agreement on the date first
written above.

                            BOTTOMLINE TECHNOLOGIES (de), INC.

                            By:     /s/ Robert Eberle
                                    --------------------------------------------
                                    Name:  Robert Eberle
                                    Title: EVP, COO & CFO

                            GENERAL ATLANTIC PARTNERS 74, L.P.

                                    By:  GENERAL ATLANTIC PARTNERS, LLC,
                                         its General Partner

                                    By:  /s/ Matthew Nimetz
                                         ---------------------------------------
                                         Name:  Matthew Nimetz
                                         Title: A Managing Member

                            GAP COINVESTMENT PARTNERS II, L.P.

                            By:     /s/ Matthew Nimetz
                                    --------------------------------------------
                                    Name:  Matthew Nimetz
                                    Title: A General Partner

                            GAPSTAR, LLC

                                    By:  GENERAL ATLANTIC PARTNERS, LLC,
                                         its Managing Member

                                    By:  /s/ Matthew Nimetz
                                         ---------------------------------------
                                         Name:  Matthew Nimetz
                                         Title: A Managing Member

                            GAPCO GMBH & CO. KG

                                    By:  GAPCO MANAGEMENT GMBH,
                                         its General Partner

                                    By:  /s/ Matthew Nimetz
                                         ---------------------------------------
                                         Name:  Matthew Nimetz
                                         Title: A Managing Director

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