Document:

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                                                                     Exhibit 4.3

                                     FORM OF
                            INVESTOR RIGHTS AGREEMENT

         INVESTOR RIGHTS AGREEMENT, dated as of ________, 2004 (this
"Agreement"), by and among Alliance Laundry Holdings, Inc., a Delaware
corporation (the "Company") the entities listed on Exhibit 1 attached hereto
(including successors, assigns and Transferees thereof, collectively "Bain
Funds"), the entities listed on Exhibit 2 attached hereto (including successors,
assigns and Transferees thereof, collectively "BRS Investors"), each of the
Securityholders listed on Exhibit [__] hereto (including any heirs, personal
representatives, successors, assigns and transferees thereof, "Management" and
each a "member of Management"; Bain Funds, BRS Investors and Management,
collectively, the "Holders."

                                   BACKGROUND

1. The Company has effected an initial public offering of Income Depositary
Securities ("IDSs") representing shares of the Company's Class A Common Stock
and $_______ aggregate principal amount of ____% Senior Subordinated Notes due
2019 of the Company ("Senior Subordinated Notes") pursuant to an effective
registration statement under the Securities Act (as defined herein) in the
United States.

2. The Holders will own IDSs and Class B Common Stock (as defined below). Upon
any sale of such shares of Class B Common Stock by a Holder, at the option of
such Holder, the Company has agreed to exchange with the purchasers thereof a
portion of such shares of Class B Common Stock for an amount of Class A Common
Stock and Senior Subordinated Notes such that the purchasers thereof shall be
able to combine the applicable number of shares of Class A Common Stock and
principal amount of Senior Subordinated Notes to form integral numbers of IDSs.

3. The Company has agreed to provide certain registration rights to the Holders
with respect to their shares of Class B Common Stock (which include the exchange
rights described in paragraph 3 above) and any IDSs they hold upon the terms and
subject to the conditions set forth herein.

NOW THEREFORE, in consideration of the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties to this Agreement hereby agree as follows:
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                                   ARTICLE I

                                   DEFINITIONS

      1.1 Definitions. As used in this Agreement, the following terms shall have
the following respective meanings:

"Agreement" shall have the meaning specified in the introductory paragraph
hereto.

"Bain Funds" shall have the meaning specified in the introductory paragraph
hereto.

"BRS Investors" shall have the meaning specified in the introductory paragraph
hereto.

"Class A Common Stock" means the Company's class A common shares, par value
$0.01 per share.

"Class A Common Stock Equivalents" shall mean any stock, warrants, rights,
calls, options, debt or other securities exchangeable or exercisable for or
convertible into Class A Common Stock.

"Class B Common Stock" means the Company's class B common shares, par value
$0.01 per share.

"Class C Common Stock" means the Company's class C common shares, par value
$0.01 per share.

"Common Stock" means the Company's Class A Common Stock, Class B Common Stock
and the Class C Common Stock and any securities issued or distributed in respect
thereof, or in substitution therefor, in connection with any stock split,
dividend, spin-off or combination, or any reclassification, recapitalization,
merger, consolidation, exchange or other similar reorganization or business
combination.

"Company" shall have the meaning specified in the introductory paragraph hereto.

"Company Offering" shall have the meaning specified in Section 2.6(a) hereto.

"Delay Notice" shall have the meaning specified in Section 2.6(b) hereto.

"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended from
time to time.

"Governmental Entity" shall mean any court, department, body, board, bureau,
administrative agency or commission or other governmental authority or
instrumentality in the United States.

"Holders" shall have the meaning specified in the introductory paragraph hereto.

"IDSs" shall have the meaning specified in the Recitals hereto.

"Information Delay Notice" shall have the meaning specified in Section 2.6(b)
hereto.
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"Indenture" shall mean the indenture, dated as of [   ], 2004 among the Company,
Alliance Laundry Holdings, Inc. and the Bank of New York, as Trustee.

"Inspectors" shall have the meaning specified in Section 5.1(l) hereto.

"Majority Holders" shall mean the Holders of a majority of the voting power of
all such securities (including IDSs) held by such Holders; provided that all
such securities shall be treated as having the voting rights of any underlying
securities.

"Majority Sellers" shall mean a majority (based on the number of Registrable
Securities owned) of the Holders eligible to sell pursuant to this Agreement.

"Management" shall have the meaning specified in the introductory paragraph
hereto.

"NASD" shall have the meaning specified in this Section 1.1 (under "Registration
Expenses" below).

"Person" shall mean an individual, corporation, limited liability company,
association, partnership, group (as defined in Section 13(d)(3) of the Exchange
Act), trust, joint venture, business trust or unincorporated organization,
Governmental Entity or any other entity of any nature whatsoever.

"register," "registered" and "registration" refer to a registration effected by
preparing and filing a registration statement in compliance with the Securities
Act and the effectiveness of such registration statement.

"Registrable Securities" shall mean Class A Common Stock, IDSs, Senior
Subordinated Notes and the IDSs into which shares of Class B Common Stock may be
exchanged and any shares of Class A Common Stock owned or to be acquired upon
conversion, exercise or exchange of Class A Common Stock Equivalents, in each
case now or hereafter owned by the Holders or any Transferee thereof. As to any
particular Registrable Securities, once issued, such Registrable Securities
shall cease to be Registrable Securities when (i) a registration statement with
respect to the sale by the applicable Holder of such securities has become
effective under the Securities Act, and such securities have been disposed of in
accordance with such registration statement or prospectus, as the case may be,
(ii) such securities have been distributed to the public pursuant to Rule 144
(or any successor provision) under the Securities Act, (iii) such securities
have been otherwise transferred, new certificates for such securities not
bearing a legend restricting further transfer have been delivered by the Company
and subsequent disposition of such securities does not require registration or
qualification of such securities under the Securities Act or any state
securities or blue sky law then in force, or (iv) such securities have ceased to
be outstanding.

"Registration Expenses" shall mean all expenses incident to the Company's
performance of or compliance with this Agreement, including without limitation
all SEC, stock exchange or quotation system and National Association of
Securities Dealers, Inc. (the "NASD") filing fees and expenses, fees and
expenses of compliance with securities or blue sky laws (including reasonable
fees and underwriters in connection with blue sky qualifications of the
Registrable Securities), rating agency fees, printing expenses, messenger,
telephone and delivery expenses, the fees and expenses incurred in connection
with the listing of the securities to be registered on

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any securities exchange or quotation system, fees and disbursements of counsel
for the Company and all independent certified public accountants (including the
expenses of any annual audit, special audit and "cold comfort" letters required
by or incident to such performance and compliance), securities laws liability
insurance (if the Company so desires), the fees and disbursements of
underwriters (including all fees and expenses of any "qualified independent
underwriter" required by the rules of the NASD) customarily paid by issuers or
sellers of securities, the expenses customarily borne by the issuers of
securities in a "road show" presentation to potential investors, the reasonable
fees and disbursements of one legal counsel for the selling Holders in each
registration (as selected by the Majority Sellers), the reasonable fees and
expenses of any special experts retained by the Company in connection with such
registration, and fees and expenses of other persons retained by the Company
(but not including any underwriting discounts or commissions (which shall be
paid or borne by the selling Holder) or transfer taxes, if any, attributable to
the sale of Registrable Securities) and other reasonable out-of-pocket expenses
of the Holders.

"Requesting Party" shall have the meaning specified in Section 2.1 hereto.

"SEC" shall mean the Securities and Exchange Commission.

"Securities Act" shall mean the Securities Act of 1933, as amended from time to
time.

"Senior Subordinated Notes" shall have the meaning specified in the Recitals
hereto.

"Shelf Registration" shall have the meaning specified in Section 2.4 hereto.

"Transaction Delay Notice" shall have the meaning specified in Section 2.6(a)
hereto.

"Transferee" shall mean any Person to whom any Holder or any Transferee thereof
transfers Registrable Securities, including any Person who purchases shares of
Class B Common Stock from the Holders and receives Class A Common Stock and
Senior Subordinated Notes combinable into IDSs from the Company in exchange.

                                   ARTICLE II

                               DEMAND REGISTRATION

      2.1 Request for Registration. After compliance with the procedures set
forth herein, upon the written request of any Holder (other than Management)
(the "Requesting Party"), at any time after, [ ], 2004 (and subject to the
procedures of this paragraph), requesting that the Company effect the
registration under the Securities Act of all or part of the Registrable
Securities and specifying the intended method of disposition thereof, and
provided that such Holder beneficially owns more than 1% of the outstanding
shares of Class A Common Stock, Class B Common Stock, Senior Subordinated Notes,
or IDSs, as the case may be, the Company will use its best efforts to effect the
registration under the Securities Act of such Registrable Securities (which
registration shall also include any Registrable Securities requested by the
other Holders to be included in such registration request made by the Requesting
Party). Prior to making such request, the Requesting Party shall notify the
other Holders (other than Management) of its intent to make such request and,
upon the affirmative decision of the

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Majority Holders (other than Management) to proceed with such request, afford
such other Holders the opportunity to include Registrable Securities in such
request. The Requesting Party, any other selling Holder and the Company shall
consult with one another at the beginning of, and throughout, the registration
process to coordinate the timing of the proposed offering, among other things,
with respect to the existence of any material business combination discussions
that may be ongoing. Notwithstanding the foregoing, in no event shall the
Company have any obligation to effect an underwritten public offering under this
Section 2.1 unless the amount of the Registrable Securities requested to be
included in such offering would result in initial aggregate proceeds (determined
at the time of the time of the initial filing of the registration statement
relating thereto) in excess of $10.0 million; provided, however, that if the
Holders have at least one demand registration right remaining, the Holders may
make a demand registration pursuant to this Section 2.1 if such demand
registration is for the remaining shares of Registrable Securities of such
Holders, even if such offering would result in initial aggregate proceeds
(determined at the time of the time of the initial filing of the registration
statement relating thereto) less than $10.0 million. Notwithstanding anything in
this Article II to the contrary, in no event will the Holders collectively be
entitled to more than 4 registrations pursuant to this Section 2.1, except that
the following shall not constitute a registration for this purpose: a
registration so requested (i) that is not deemed to have been effected pursuant
to Section 2.3 or (ii) where the number of Registrable Securities included by
the Holders in such registration and sold pursuant thereto is less than 75% of
the number of shares of Registrable Securities sought to be included by the
Holders in such registration.

      2.2 Registration Statement Form. If any registration requested pursuant to
this Article II which is proposed by the Company to be effected by the filing of
a registration statement on Form S-3 (or any successor or similar short-form
registration statement) shall be in connection with an underwritten public
offering, and if the managing underwriter shall advise the Company in writing
that, in its opinion, the use of another form of registration statement is of
material importance to the success of such proposed offering, then such
registration shall be effected on such other form. The Company agrees to include
in any registration statement all information which, in the reasonable opinion
of counsel to the underwriters, if any, the selling Holders or the Company, is
required to be included.

      2.3 Effective Registration Statement. A registration requested pursuant to
this Article II shall not be deemed to have been effected:

            (a) unless a registration statement with respect thereto has become
effective and remained effective in compliance with the provisions of the
Securities Act for at least six months with respect to the disposition of all
Registrable Securities covered by such registration statement or, if earlier,
until such time as all of such Registrable Securities have been disposed of in
accordance with the intended methods of disposition thereof set forth in such
registration statement, other than primarily as a result of acts or omissions of
any selling Holder or any authorized agent thereof;

            (b) if after it has become effective, such registration is
interfered with by any stop order, injunction or other order or requirement of
the SEC or other Governmental Entity for any reason not attributable to any
selling Holder or any of their Affiliates and has not thereafter become
effective; or

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            (c) if the conditions to closing specified in the underwriting
agreement, if any, entered into in connection with such registration are not
satisfied or waived.

      2.4 Shelf Registration. If the Company has used and is then generally
using registration statements pursuant to Rule 415 under the Securities Act (the
"Shelf Registration") for the sale of IDSs or Class A Common Stock, the Majority
Sellers shall be permitted to request that any registration under this Article
II be made under a Shelf Registration. The Company shall use its reasonable best
efforts to keep such Shelf Registration continuously effective for the period
beginning on the date on which the Shelf Registration is declared effective and
ending on the first date that there are no Registrable Securities covered by
such registration. During the period during which the Shelf Registration is
effective, the Company shall supplement or make amendments to the Shelf
Registration, if required by the Securities Act or if reasonably requested by
the Majority Sellers or an underwriter of Registrable Securities, including to
reflect any specific plan of distribution or method of sale, and shall use its
reasonable best efforts to have such supplements and amendments declared
effective, if required, as soon as practicable after filing.

      2.5 Priority in Requested Registrations. If a requested registration
pursuant to this Article II involves an underwritten offering and the managing
underwriter (in consultation with the underwriter appointed by the Majority
Sellers pursuant to Section 2.8 below) advises the Company and the Holders in
writing that, in its opinion, the number of securities requested to be included
in such registration by all Holders, the Company and other holders (including
securities of the Company which are not Registrable Securities and which the
holder thereof has the right to include in any such registration) exceeds the
largest number of securities which can be sold without reasonably expecting to
have an adverse effect on such offering, including the price at which such
securities can be sold, the number of such securities to be included in such
registration shall be reduced to such extent, and the Company shall include in
such registration such maximum number of securities as follows: (a) first, all
the Registrable Securities requested to be included in such registration by the
Holders, (b) second, to the extent that the number of Registrable Securities
which the Holders have requested to be included in such registration is less
than the number of securities which the Company has been advised can be sold in
such offering without having the adverse effect referred to above, all the
securities which the Company proposes to sell for its own account and (c) third,
to the extent that the number of securities which the Holders have requested to
be included in such registration and the number of securities which the Company
proposes to sell for its own account is, in the aggregate, less than the number
of securities which the Company has been advised can be sold in such offering
without having the adverse effect referred to above, the number of securities
requested to be included in such registration by all other holders thereof which
number shall be limited to such extent, and, subject to any rights of such other
holders, shall be allocated pro rata among all such holders on the basis of the
relative number of such securities then held by each such holder; provided that
any such amount thereby allocated to any such holder that exceeds such holder's
request shall be reallocated among the remaining requesting holders in like
manner. If any Holder advises the managing underwriter of any underwritten
offering that the Registrable Securities and other securities covered by the
registration statement cannot be sold in such offering within a price range
acceptable to such Holder, then such Holder shall have the right to exclude all
or any portion of its Registrable Securities from registration.

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      2.6 Postponements in Requested Registrations.

            (a) If, upon receipt of a registration request pursuant to Section
2.1, the Company is advised in writing by a nationally recognized investment
banking firm in the United States selected by the Company that, in such firm's
opinion, a registration by the Company at the time and on the terms requested
would adversely affect any public offering of securities of the Company (other
than in connection with employee benefit and similar plans) (a "Company
Offering") with respect to which the Company has commenced preparations for a
registration prior to the receipt of a registration request pursuant to Section
2.1 and the Company furnishes the Holders with a certificate signed by the Chief
Executive Officer or Chief Financial Officer of the Company to such effect (the
"Transaction Delay Notice") promptly after such request, the Company shall not
be required to effect a registration pursuant to Section 2.1 until the earliest
of (i) 30 days after the completion of such Company Offering, (ii) promptly
after the abandonment of such Company Offering or (iii) 90 days after the date
of the Transaction Delay Notice; provided that in any event the Company shall
not be required to effect any registration prior to the termination, waiver or
reduction of any "blackout period" required by the underwriters to be applicable
to the Holders in connection with any Company Offering; provided further that in
no event shall the Company delay such registration for more than 180 days.

            (b) If upon receipt of a registration request pursuant to Section
2.1 or while a registration request pursuant to Section 2.1 is pending, the
Company determines in its good faith judgment after consultation with its
securities counsel that the filing of a registration statement or any amendment
thereto would require disclosure of material information which the Company has a
bona fide business purpose for preserving as confidential and the Company
provides the Holders written notice (the "Information Delay Notice" and,
together with the Transaction Delay Notice, the "Delay Notice") thereof promptly
after the Company makes such determination, which shall be made promptly after
the receipt of any request, the Company shall not be required to comply with its
obligations under Section 2.1 until the earlier of (i) the date upon which such
material information is disclosed to the public or ceases to be material or (ii)
30 days after the Holders' receipt of such notice.

            (c) Notwithstanding the foregoing provisions of this Section 2.6,
the Company shall be entitled to serve only one Delay Notice (A) within any
period of 180 consecutive days or (B) with respect to any two consecutive
registrations requested pursuant to Section 2.1.

      2.7 Expenses. The Company will pay all Registration Expenses in connection
with the registrations requested pursuant to Section 2.1.

      2.8 Selection of Underwriters. The Majority Sellers shall have the right
to select any investment banker and manager or co-managers to administer the
offering, subject to the consent of the Company (which shall not be unreasonably
withheld or delayed). The Company and all participating Holders shall enter into
an underwriting agreement in customary form with the underwriter or underwriters
selected for such underwriting, as well as all other documents customary in
similar offerings, including underwriting agreements, custody agreements, powers
of attorney, and indemnification agreements.

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                                  ARTICLE III

                             INCIDENTAL REGISTRATION

      3.1 Right to Include Registrable Securities. If the Company proposes to
register any of its IDSs, Class A Common Stock, Senior Subordinated Notes or
other securities or any security convertible into or exchangeable or exercisable
for any Class A Common Stock, Senior Subordinated Notes, IDSs or other
securities of the Company (other than in connection with an employee stock
option or other benefit plan) under the Securities Act (other than: a
registration on Form S-8, S-4 or any successor or similar forms, whether or not
for sale for its own account (and including any registration pursuant to a
request or demand registration right of any other person), at any time, then the
Company will each such time, subject to the provisions of Section 3.2 hereof,
give prompt written notice to the Holders of its intention to do so and of the
Holders' rights under this Article III, at least 30 days prior to the
anticipated filing date of the registration statement relating to such
registration; provided, in the case of a registration pursuant to Article II,
the Company need not provide such notice to any Holder participating in such
registration but will provide such notice to the Management Holders. Such notice
shall offer the Holders the opportunity to include in such registration
statement such number of Registrable Securities as each Holder may request. Upon
the written request of any Holder made within 15 days after the receipt of the
Company's notice (which request shall specify the number of Registrable
Securities intended to be disposed of by such Holder), the Company shall use its
best efforts to effect the proposed registration under the Securities Act of all
Registrable Securities which the Company has been so requested to register by
such Holder to the extent requisite to permit the disposition of the Registrable
Securities so to be registered; provided that (i) if such registration involves
an underwritten offering, any such Holder must sell its Registrable Securities
to the underwriters selected by the Company on the same terms and conditions as
apply to the Company (except that indemnification obligations of any such Holder
shall be limited to those obligations set forth in Article VI hereof) and (ii)
if, at any time after giving written notice of its intention to register any
securities pursuant to this Section 3.1 and prior to the effective date of the
registration statement filed in connection with such registration, the Company
shall determine for any reason not to register such securities, the Company
shall give written notice to each such Holder and, thereupon, shall be relieved
of its obligation to register any Registrable Securities in connection with such
registration. If a registration pursuant to this Section 3.1 involves an
underwritten public offering, any such Holder may elect, in writing no less than
one business day prior to the effective date of the registration statement filed
in connection with such registration, not to register such securities in
connection with such registration. No registration effected under this Article
III shall relieve the Company of its obligations to effect registrations upon
request under Article II hereof. The Company will pay all Registration Expenses
in connection with each registration of Registrable Securities requested
pursuant to this Article III.

      3.2 Priority in Incidental Registrations. If a registration pursuant to
this Article III involves an underwritten offering and the managing underwriter
advises the Company in writing that, in its opinion, the number of securities
(including IDSs and all Registrable Securities) which the Company, the Holders
and any other persons intend to include in such registration exceeds the largest
number of securities which can be sold without reasonably expecting to have an
adverse effect on such offering, including the price at which such securities
can be sold, the number of such securities to be included in such registration
shall be reduced to such extent, and

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the Company will include in such registration such maximum number of securities
as follows: first, all the securities the Company proposes to sell for its own
account pursuant to Section 3.1 in such registration and second, to the extent
that the number of securities which the Company proposes to sell for its own
account pursuant to Section 3.1 hereof is less than the number of securities
which the Company has been advised can be sold in such offering without having
the adverse effect referred to above, the aggregate of the number of Registrable
Securities requested to be included in such registration by the Holders and the
number of any other such securities requested to be included in such
registration by other holders shall be limited to such extent, and shall be
allocated pro rata among the Holders and all such holders on the basis of the
relative number of such securities then held by each Holder and each such
holder; provided that any such amount thereby allocated to each Holder or any
such other holder that exceeds such Holder's or such holder's request,
respectively, shall be reallocated among the Holders and the remaining
requesting holders in like manner, as applicable.

                                   ARTICLE IV

                               HOLDBACK AGREEMENTS

      4.1 Restrictions on Public Sale by the Company and Others. If any
registration of Registrable Securities shall be made in connection with an
underwritten public offering, the Company agrees not to effect any public sale
or distribution of any IDSs, Class A Common Stock, Class A Common Stock
Equivalents, Senior Subordinated Notes or other securities or of any security
convertible into or exchangeable or exercisable for any IDSs, Class A Common
Stock, Class A Common Stock Equivalents, Senior Subordinated Notes or other
securities of the Company (other than in connection with an employee stock
option or other benefit plan) during the 7 days prior to, and during the 180-day
period beginning on, the closing date of the sale of the Registrable Securities
pursuant to an effective registration statement (except as part of such
registration) and (ii) that any agreement entered into on or after the date of
this Agreement pursuant to which the Company issues or agrees to issue any
privately placed IDSs, Class A Common Stock, Class A Common Stock Equivalents,
Senior Subordinated Notes, Class B Common Stock or other securities shall
contain a provision under which holders of such securities agree not to effect
any public sale or distribution of any such securities during the period
referred to in the foregoing clause, including any sale pursuant to Rule 144
under the Securities Act (except as part of such registration, if permitted).

                                   ARTICLE V

                             REGISTRATION PROCEDURES

      5.1 Registration Procedures. If and whenever the Company is required to
use its best efforts to effect or cause the registration of any Registrable
Securities under the Securities Act as provided in this Agreement, the Company
will, as expeditiously as possible:

            (a) use its best efforts to prepare and file with the SEC within 30
days (or, for registration on a Form S-3 or any similar short-form registration
statement, 15 days), after receipt of a request for registration with respect to
such Registrable Securities, a registration statement or prospectus on any form
for which the Company then qualifies or which counsel for the

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Company shall deem appropriate, and which form shall be available for the sale
of the Registrable Securities in accordance with the intended methods of
distribution thereof, and use its best efforts to cause such registration
statement to become and remain effective as promptly as practicable, subject to
the Majority Holders' right to defer the Company's request for the acceleration
of effectiveness of any such registration statement as may be necessary to
accommodate the anticipated timetable for such offering; provided that before
filing with the SEC a registration statement or any amendments or supplements
thereto, the Company will (i) furnish to the selling Holders copies of the form
of prospectus (including the preliminary prospectus) proposed to be filed and
furnish to counsel for the selling Holders copies of all such documents proposed
to be filed, which documents will be subject to the review of such counsel and
shall not be filed without the approval of such counsel (which approval shall
not be unreasonably withheld) and (ii) notify the selling Holders of any stop
order issued or threatened by the SEC and take all reasonable actions required
to prevent the entry of such stop order or to remove it if entered;

            (b) subject to Section 2.4 in the case of a Shelf Registration,
prepare and file with the SEC such amendments and supplements to such
registration statement and the prospectus (including each preliminary
prospectus) used in connection therewith as may be necessary to keep such
registration statement effective for a period of not less than 180 days or such
shorter period which will terminate when all Registrable Securities covered by
such registration statement have been sold (but not before the expiration of the
90-day period referred to in Section 4(3) of the Securities Act and Rule 174
thereunder, and 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 such period in accordance with the intended
methods of disposition by the sellers thereof set forth in such registration
statement;

            (c) promptly furnish to each Holder and each underwriter, if any, of
Registrable Securities covered by such registration statement such number of
copies of such registration statement, each amendment and supplement thereto (in
each case including all exhibits thereto), in conformity with the requirements
of the Securities Act, copies of any correspondence with the SEC relating to the
registration statement and such other documents as any Holder or underwriter may
reasonably request in order to facilitate the disposition of the Registrable
Securities by such Holder;

            (d) use its reasonable best efforts to register or qualify such
Registrable Securities under such other securities or blue sky laws of such
jurisdictions as any Holder or each underwriter, if any, reasonably requests and
do any and all other acts and things which may be reasonably necessary or
advisable to enable such Holder and each underwriter, if any, to consummate the
disposition in such jurisdictions of the Registrable Securities; provided that
the Company will not be required to (i) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
paragraph (d), (ii) subject itself to taxation in any such jurisdiction or (iii)
consent to general service of process in any such jurisdiction;

            (e) use its best efforts to cause the Registrable Securities covered
by such registration statement to be registered with or approved by such other
Governmental Entities as may be necessary to enable the selling Holders to
consummate the disposition of such Registrable Securities;

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            (f) immediately notify the selling Holders at any time when a
prospectus relating thereto is required to be delivered under the Securities Act
of the happening of any event which comes to the Company's attention if as a
result of such event 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 will promptly prepare and furnish to the selling Holders a supplement or
amendment to such prospectus so that, as thereafter delivered to the purchasers
of such Registrable Securities, such prospectus will not contain an untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading;

            (g) use its reasonable best efforts to prevent the issuance of and
obtain the withdrawal of any stop order suspending the effectiveness of a
registration statement relating to the Registrable Securities at the earliest
practicable moment;

            (h) if requested by the managing underwriter or underwriters or any
Holder, immediately incorporate in a prospectus supplement or post-effective
amendment such information as the managing underwriters and each applicable
selling Holder agree and reasonably request should be included therein relating
to the plan of distribution with respect to such Registrable Securities,
including information with respect to the number of Registrable Securities being
sold to such underwriters, the purchase price being paid therefor by such
underwriters and with respect to any other terms of the underwritten (or best
efforts underwritten) offering of the Registrable Securities to be sold in such
offering; and make all required filings of such prospectus supplement or
post-effective amendment as soon as notified of the matters to be incorporated
in such prospectus supplement or post-effective amendment;

            (i) cooperate with the Holders and the managing underwriters, if
any, to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold and not bearing any restrictive
legends; and enable such Registrable Securities to be in such denominations and
registered in such names as the managing underwriters may request at least three
business days prior to any sale of the Registrable Securities to the
underwriters;

            (j) use its best efforts to cause all such Registrable Securities to
be listed on each securities exchange or quotation system on which the same
securities issued by the Company are then listed, and enter into such customary
agreements including a listing application and indemnification agreement in
customary form if the applicable listing requirements are satisfied, and to
provide a transfer agent and registrar for such Registrable Securities covered
by such registration statement no later than the effective date of such
registration statement;

            (k) enter into such customary agreements (including an underwriting
agreement in customary form) and take all such other actions as the Majority
Sellers or the underwriters, if any, reasonably request in order to expedite or
facilitate the disposition of such Registrable Securities, including, without
limitation, customary indemnification and customary participation in "road show"
presentations to potential investors;

                                       11
<PAGE>
            (l) make available for inspection by the Holders, any underwriter
participating in any disposition pursuant to such registration statement, and
any attorney, accountant or other agent retained by any Holder or underwriter
(collectively, the "Inspectors"), all financial and other records, pertinent
corporate documents and properties of the Company and its subsidiaries, if any,
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 to supply all information and respond to all inquiries
reasonably requested by any such Inspector in connection with such registration
statement;

            (m) use its best efforts to obtain (i) an opinion of outside counsel
to the Company and (ii) a "cold comfort" letter or letters from the Company's
independent public accountants in customary form and covering such matters of
the type customarily covered by opinions and "cold comfort" letters (provided,
that the term "customarily" as applied to any Registrable Securities shall be
deemed to include, without limitation, letters and opinions delivered to the
Company in connection with the initial public offering of IDSs) as the selling
Holders or the underwriter reasonably requests;

            (n) otherwise use its best efforts to comply with all applicable
rules and regulations of the SEC, and make available to its security holders,
within the required time periods, an earning statement covering the required
periods, which earning statement shall satisfy the provisions of Section 11(a)
of the Securities Act and Rule 158 thereunder or any successor provisions
thereto;

            (o) promptly prior to the filing of any document which is to be
incorporated by reference into the registration statement or the prospectus
(after the initial filing of the registration statement, including each
preliminary prospectus), provide copies of such document to counsel to the
selling Holders and to the managing underwriters, if any, make the Company's
representatives available for discussion of such document and make such changes
in such document prior to the filing thereof as counsel for the selling Holders
may reasonably request;

            (p) (p) promptly notify the selling Holders, counsel for the selling
Holders, and the managing underwriter or agent and provide them with copies of
such relevant documents, (i) when the registration statement, or any
post-effective amendment to the registration statement, shall have become
effective, or any supplement to the prospectus or any amendment to the
prospectus shall have been filed, (ii) of the receipt of any comments from the
SEC, (iii) of any request of the SEC to amend the registration statement or
amend or supplement the prospectus or for additional information, and (iv) of
the issuance by the SEC of any stop order suspending the effectiveness of the
registration statement or of any order preventing or suspending the use of any
prospectus, or of the suspension of the qualification of the registration
statement for offering or sale in any jurisdiction, or of the institution or
threatening of any proceedings for any of such purposes; and

            (q) cooperate with the selling Holders and each underwriter or agent
participating in the disposition of such Registrable Securities and their
respective counsel in connection with any filings required to be made with any
securities exchange and/or the NASD. It shall be a condition precedent to the
obligation of the Company to take any action pursuant to this Agreement in
respect of the securities which are to be registered at the request of any
Holder

                                       12
<PAGE>
that such Holder shall furnish to the Company such information regarding the
securities held by such Holder and the intended method of disposition thereof as
the Company shall reasonably request in connection with such registration. Each
Holder agrees that, upon receipt of any notice from the Company of the happening
of any event of the kind described in clause (f) of Section 5.1 hereof, such
Holder will forthwith discontinue disposition of Registrable Securities pursuant
to the registration statement covering such Registrable Securities until such
Holder receives the copies of the prospectus supplement or amendment
contemplated by clause (f) of Section 5.1 hereof, and, if so directed by the
Company, such Holder will deliver to the Company (at the Company's expense) all
copies, other than permanent file copies, then in such Holder's possession, of
the prospectus covering such Registrable Securities current at the time of
receipt of such notice. In the event the Company shall give any such notice, the
period mentioned in clause (b) of Section 5.1 hereof shall be extended by the
greater of (i) three months or (ii) the number of days during the period from
and including the date of the giving of such notice pursuant to clause (f) of
Section 5.1 hereof to and including the date when such Holder shall have
received the copies of the prospectus supplement or amendment contemplated by
clause (f) of Section 5.1 hereof.

                                   ARTICLE VI

                          TRANSFEREE EXCHANGE; LEGENDS

      6.1 Transferee Exchange. With respect to any shares of Class B Common
Stock held by Bain Funds or BRS Investors, upon any sale of the shares of Class
B Common Stock following the second anniversary of the consummation of the
Company's initial public offering, such parties agree with the Company that at
the option of the selling party, upon prior written notice to the Company, the
Company shall exchange with the transferee in such sale one IDS for each share
of Class B Common Stock such that the number of shares of Class B Common Stock
received by the transferee of such shares shall make an integral whole number of
IDSs. For the purposes of this Section 6.1, if the transferee receives such
Class B Common Stock in a distribution in kind from any member of Bain Funds or
BRS Investors, the Company agrees that the transferee may, at its option, not
require the Company to exchange the Class B Common Stock for an IDS, but rather,
at such transferee's option, have such exchange occur upon the subsequent sale
to another transferee.

      The parties hereto agree that, prior to any sale of shares of Class B
Common Stock in which there will be an exchange for an amount of IDSs pursuant
to this Section 6.1, the following conditions must be met:

            (a) such sale and exchange shall comply with applicable laws,
including, without limitation, securities laws, laws relating to the redemption
of common stock and laws relating to the issuance of debt,

            (b) such sale and exchange shall occur pursuant to an effective
registration statement in the United States,

            (c) such sale and exchange will not conflict with or cause a default
under any material financing agreement,

                                       13
<PAGE>
            (d) such sale and exchange shall not cause a mandatory suspension of
dividends or deferral of interest under any material financing agreement as of
the measurement date immediately following the proposed sale and exchange date,

            (e) no event of default or deferral of interest has occurred and is
continuing under the Indenture governing the Senior Subordinated Notes and all
deferred interest, if any, together with interest accrued thereon has been paid
in full; and

            (f) the selling party shall have given the Company at least 30 but
not more than 60 days advance notice of its desire to effect such transaction.

      6.2 Legends. A copy of this Agreement shall be filed with the secretary of
the Company and kept with the records of the Company. Each certificate
representing shares of Class B Common Stock subject to this Agreement shall bear
the following legend on the face thereof (in addition to any legend required by
state securities or "blue sky" laws):

"THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE
AND ARE SUBJECT TO AN INVESTOR RIGHTS AGREEMENT. A COPY OF THE INVESTOR RIGHTS
AGREEMENT IS AVAILABLE FOR INSPECTION AT THE COMPANY'S PRINCIPAL OFFICES. NO
TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH
THE PROVISIONS OF THE INVESTOR RIGHTS AGREEMENT AND (A) PURSUANT TO A
REGISTRATION STATEMENT EFFECTIVE UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR (B) A TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION
THAT IS EXEMPT FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT OF 1933,
AS AMENDED, AND THE RULES AND REGULATIONS THEREUNDER AND, IF REQUESTED, THE
COMPANY MAY REQUIRE PROOF OF SUCH EXEMPTION. UPON CERTAIN TRANSFERS OF THE CLASS
B COMMON SHARES REPRESENTED BY THIS CERTIFICATE, THE COMPANY SHALL EXCHANGE WITH
THE TRANSFEREE A CERTAIN AMOUNT OF THE SHARES OF CLASS B COMMON STOCK FOR THE
COMPANY'S CLASS A COMMON STOCK AND SENIOR SUBORDINATED NOTES PURSUANT TO THE
TERMS OF, AND SUBJECT TO THE LIMITATIONS CONTAINED IN, THE INVESTOR RIGHTS
AGREEMENT. THE HOLDER OF THIS CERTIFICATE AGREES TO BE BOUND BY ALL OF THE
PROVISIONS OF SUCH INVESTOR RIGHTS AGREEMENT."

      The Company agrees to promptly remove (or cause to be removed) the legend
set forth above and to take such further action to remove any restrictions on
the shares of Class B Common Stock in connection with a transfer that is
pursuant to a registration statement effective under the Securities Act, or
exempt from such registration or filing in the United States.

                                       14
<PAGE>
                                   ARTICLE VII

                                 INDEMNIFICATION

      7.1 Indemnification by the Company. In the event of any registration of
any Registrable Securities of the Holders under the Securities Act pursuant to
Article II or III hereof, the Company will, and it hereby does, indemnify and
hold harmless, to the full extent permitted by law, each selling Holder, their
directors and officers, employees, stockholders, general partners, limited
partners, members, advisory directors and managing directors (and directors,
officers, stockholders, general partners, limited partners, members, advisory
directors, managing directors and controlling persons thereof), each other
person who participates as an underwriter in the offering or sale of such
securities and each other person, if any, who controls, is controlled by or is
under common control with such Holder within the meaning of the Securities Act,
against any and all losses, claims, damages or liabilities, joint or several,
and reasonable expenses (including, without limitation, reasonable attorney's
fees) to which such Holder, any such director, or officer, employee,
stockholder, general or limited partner, member, or advisory or managing
director or any such underwriter or controlling person may become subject under
the Securities Act, state securities or blue sky laws, common law or otherwise,
insofar as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) or expenses arise out of or are based upon (i)
any untrue statement or alleged untrue statement of any material fact contained,
on the effective date thereof, in any registration statement under which such
Registrable Securities were registered under the Securities Act, any prospectus
(including each preliminary prospectus) contained therein, or any amendment or
supplement thereto or (ii) 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 (in the case of a prospectus (including each preliminary
prospectus), in light of the circumstances under which they are made), and the
Company will reimburse each such Holder and each such director, officer,
employee, general partner, limited partner, advisory director, managing director
or underwriter and controlling person for any legal or any other expenses
reasonably incurred by them as such expenses are incurred in connection with
investigating or defending such loss, claim, liability, action or proceeding;
provided that the Company shall not be liable in any such case to the extent
that any such loss, claim, damage, liability (or action or proceeding in respect
thereof) or expense arises out of or is based upon any untrue statement or
alleged untrue statement or omission or alleged omission made in such
registration statement or amendment or supplement thereto or in any such
prospectus (including each preliminary prospectus) in reliance upon and in
conformity with written information furnished to the Company through an
instrument duly executed by such Holder or such director, officer, employee,
general or limited partner, managing director or underwriter specifically
stating that it is for use in the preparation thereof; provided, further, that
the Company shall not be required to indemnify any such person if such untrue
statement or omission or alleged untrue statement or omission was contained or
made in any preliminary prospectus and corrected in the final prospectus or any
amendment or supplement thereto and the final prospectus does not contain any
other untrue statement or omission or alleged untrue statement or omission of a
material fact that was the subject matter of the related proceeding and any such
loss, liability, claim, damage or expense suffered or incurred by such
indemnified person resulted from any action, claim or suit by any person who
purchased Registrable Securities which are the subject thereof from such
indemnified person and it is established in the related proceeding that such
indemnified person failed to deliver or provide a copy of the final

                                       15
<PAGE>
prospectus (as amended or supplemented) to such person with or prior to the
confirmation of the sale of such Registrable Securities sold to such person if
required by applicable law, unless such failure to deliver or provide a copy of
the final prospectus (as amended or supplemented) was a result of noncompliance
by the Company with this Agreement or as a result of the failure of the Company
to provide such final prospectus. Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of each Holder or
any such director, officer, employee, general partner, limited partner, managing
director, underwriter or controlling person and shall survive the transfer of
such securities by any Holder.

      7.2 Indemnification by Holders and Underwriters. The Company may require,
as a condition to including Registrable Securities in any registration statement
filed in accordance with Article II or III hereof, that the Company will have
received an undertaking reasonably satisfactory to it from any selling Holder or
any underwriter to indemnify and hold harmless (in the same manner and to the
same extent as set forth in Section 6.1) the Company and its directors,
officers, employees, controlling persons and all other prospective sellers and
their respective directors, officers, general and limited partners, managing
directors, and their respective controlling persons, against any and all losses,
claims, damages or liabilities, joint or several, and expenses (including any
amounts paid in any settlement effected with the consent of the applicable
Holder and underwriter) to which the Company and its directors, officers,
employees, controlling persons or any other prospective sellers and their
respective directors, officers, general and limited partners, managing
directors, and their respective controlling persons may become subject under the
Securities Act, state securities or blue sky laws, common law or otherwise,
insofar as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) or expenses arise out of or are based upon (i)
any untrue statement or alleged untrue statement of any material fact contained,
on the effective date thereof, in any registration statement under which such
Registrable Securities were registered under the Securities Act, any prospectus
(including each preliminary prospectus) contained therein, or any amendment or
supplement thereto or (ii) 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 (in the case of a prospectus (including each preliminary
prospectus), in light of the circumstances under which they are made), and the
applicable Holder and underwriter will reimburse the Company and its directors,
officers, employees, controlling persons and all other prospective sellers and
their respective directors, officers, general and limited partners, managing
directors, and their respective controlling persons for any legal or any other
expenses reasonably incurred by them as such expenses are incurred in connection
with investigating or defending such loss, claim, liability, action or
proceeding; provided that any Holder and any underwriter shall only be liable in
any such case if any such loss, claim, damage, liability (or action or
proceeding in respect thereof) or expense arises out of or is based upon any
untrue statement or alleged untrue statement or omission or alleged omission
made in such registration statement or amendment or supplement thereto or in any
such prospectus (including each preliminary prospectus) in reliance upon and in
conformity with written information furnished to the Company through an
instrument duly executed by such Holder or any such underwriter specifically
stating that it is for use in the preparation thereof; provided, further, that
such Holder or underwriter shall not be required to indemnify the Company if
such untrue statement or omission or alleged untrue statement or omission was
contained or made in any preliminary prospectus and corrected in the final
prospectus or any amendment or supplement thereto and the final prospectus does
not contain any other untrue statement or omission or alleged untrue statement
or omission of a

                                       16
<PAGE>
material fact that was the subject matter of the related proceeding and is
covered by such Holder's or underwriter's obligation under this Section 6.2 and
any such loss, liability, claim, damage or expense suffered or incurred by the
Company resulted from any action, claim or suit by any person who purchased
Registrable Securities or other securities of the Company which are the subject
thereof from the Holder or the Company or another holder and it is established
in the related proceeding that a copy of the final prospectus (as amended or
supplemented) was delivered or provided to such person with or prior to the
confirmation of the sale of such Registrable Securities sold to such Person if
required by applicable law. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Company or any such
director, officer, employee or controlling person or other indemnified person.
No Holder shall be liable under any indemnity provided pursuant to this Article
VI for any amounts exceeding the product of the purchase price per Registrable
Security and the number of Registrable Securities being sold pursuant to such
registration statement or prospectus by such Holder.

      7.3 Notices of Claims, Etc. Promptly after receipt by an indemnified party
hereunder of written notice of the commencement of any action or proceeding with
respect to which a claim for indemnification may be made pursuant to this
Article VI, such indemnified party shall, if a claim in respect thereof is to be
made against an indemnifying party, promptly give written notice to the latter
of the commencement of such action; provided, however, that the failure of any
indemnified party to give notice as provided herein shall not relieve the
indemnifying party of its obligations under the preceding Sections of this
Article VI, except to the extent that the indemnifying party is actually
materially prejudiced by such failure to give notice. If any such claim or
action is brought against an indemnified party, unless in such indemnified
party's reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist in respect of such claim, the indemnifying party
will be entitled to participate in and, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, to the extent that it
may wish, with counsel reasonably satisfactory to such indemnified party, and
after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof, the indemnifying party will not be
liable to such indemnified party for any legal or other expenses subsequently
incurred by the latter in connection with the defense thereof, unless in such
indemnified party's reasonable judgment a conflict of interest between such
indemnified and indemnifying parties arises in respect of such claim after the
assumption of the defense thereof or a court of competent jurisdiction
determines that the indemnifying party is not vigorously defending such action
or proceeding. An indemnifying party will not be subject to any liability for
any settlement made without its consent (which consent shall not be unreasonably
withheld). No indemnifying party will consent to entry of any judgment or enter
into any settlement of any pending or threatened proceeding which (i) does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to all indemnified parties of a release from all liability in respect to such
claim or litigation, (ii) involves the imposition of equitable remedies or the
imposition of any non-financial obligations on such indemnified party or (iii)
otherwise adversely affects such indemnified party, other than as a result of
the imposition of financial obligations for which such indemnified party will be
indemnified hereunder. Notwithstanding anything to the contrary contained
herein, an indemnifying party will not be obligated to pay the fees and expenses
of more than one counsel (together with local counsel) for all parties
indemnified by such indemnifying party with respect to such claim, unless in the
reasonable judgment of any indemnified party a conflict of interest may exist

                                       17
<PAGE>
between such indemnified party and any other of such indemnified parties with
respect to such claim, in which event the indemnifying party shall be obligated
to pay the fees and expenses of such additional counsel or counsels (together
with the fees of local counsel).

      7.4 Contribution. If the indemnification provided for in this Article VI
is unavailable to an indemnified party under Section 6.1 or Section 6.2 hereof
(other than by reason of exceptions provided in those Sections) in respect of
any losses, claims, damages, liabilities or expenses referred to therein, then
each applicable indemnifying party, in lieu of indemnifying such indemnified
party thereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages, liabilities or
expenses in such proportion as is appropriate to reflect the relative benefits
received by the indemnifying party on the one hand and the indemnified party on
the other, and the relative fault of the indemnifying party on the one hand and
of the indemnified party on the other in connection with the statements or
omissions that resulted in such losses, claims, damages, liabilities or
expenses, as well as any other relevant equitable considerations. The relative
fault of the indemnifying party, on the one hand, and of the indemnified party,
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 indemnifying party or by the indemnified party and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The amount paid or payable by a party as a
result of the losses, claims, damages, liabilities and expenses referred to
above shall be deemed to include, subject to the limitations set forth in
Section 6.1 or Section 6.2, any legal or other fees or expenses reasonably
incurred by such party in connection with investigating or defending any action
or claim.

      The Company and the Holders agree that it would not be just and equitable
if contribution pursuant to this Section 6.4 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.
Notwithstanding the provisions of this Section 6.4, no Holder shall be required
to contribute any amount in excess of the amount by which the total price at
which the Registrable Securities sold by such Holder to any purchaser exceeds
the amount of any damages which such Holder 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.

      7.5 Other Indemnification. Indemnification and contribution similar to
that specified in Section 6.1 and Section 6.2 (with appropriate modifications)
shall be given by the Company and each Holder with respect to any required
registration or other qualification of securities under any federal, state or
blue sky law or regulation of any Governmental Entity other than as required by
the Securities Act.

      7.6 Non-Exclusivity. The obligations of the parties under this Article VI
shall be in addition to any indemnification or contribution which any
indemnified party may have pursuant to law or contract and shall remain
operative and in full force and effect regardless of any

                                       18
<PAGE>
investigation made by or on behalf of any indemnified party and shall survive
the transfer of any of the Registrable Securities by any such party.

      7.7 Indemnification Payments. The indemnification and contribution
required by Sections 6.1, 6.2 and 6.4 shall be made by periodic payments of the
amount thereof during the course of the investigation or defense, as and when
bills are received or expense, loss, damage or liability is incurred.

                                  ARTICLE VIII

                                  MISCELLANEOUS

      8.1 Remedies. The Company and each Holder acknowledge and agree that in
the event of any breach of this Agreement by any of them, the Holders and the
Company would be irreparably harmed and could not be made whole by monetary
damages. Each party accordingly agrees to waive the defense in any action for
specific performance that a remedy at law would be adequate and that the
parties, in addition to any other remedy to which they may be entitled at law or
in equity, shall be entitled to compel specific performance of this Agreement.

      8.2 7.2 Entire Agreement. This Agreement constitutes the entire agreement
and understanding of the parties hereto in respect of the subject matter
contained herein, and there are no restrictions, promises, representations,
warranties, covenants, or undertakings with respect to the subject matter
hereof, other than those expressly set forth or referred to herein and in the
Stockholders Agreement. This Agreement supersedes all prior agreements and
understandings among the parties hereto with respect to the subject matter
hereof.

      8.3 Notices. Any notice, request, instruction or other document to be
given hereunder by any party hereto to another party hereto shall be in writing,
shall be delivered personally or sent by certified or registered mail, postage
prepaid, return receipt requested, or by Federal Express or other delivery
service, to the Company at the address set forth below and to any other
recipient and to any subsequent holder of Registrable Securities subject to this
Agreement at such address as indicated by the Company's records or to such other
address as the party to whom notice is to be given may provide in a written
notice to the Company, a copy of which written notice shall be maintained on
file with the Secretary of the Company.

            (a)   To the Company:

                  Alliance Laundry Holdings Inc.
                  P.O. Box 990
                  Ripon, Wisconsin 54971-0990
                  Attn: General Counsel

      Any notice, request, instruction or document shall be deemed to have been
received on the date of delivery thereof.

      8.4 Applicable Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York without regard to principles
of conflicts of

                                       19
<PAGE>
law to the extent that the application of the laws of another jurisdiction would
be required thereby.

      8.5 Jurisdiction. The courts of the State of New York in New York County
and the United States District Court for the Southern District of New York shall
have jurisdiction over the parties with respect to any dispute or controversy
between them arising under or in connection with this agreement and, by
execution and delivery of this agreement, each of the parties to this Agreement
submits to the exclusive jurisdiction of those courts, including but not limited
to the in personam and subject matter jurisdiction of those courts, waives any
objections to such jurisdiction on the grounds of venue or forum non conveniens,
the absence of in personam or subject matter jurisdiction and any similar
grounds, consents to service of process by mail (in accordance with Section 7.2)
or any other manner permitted by law, and irrevocably agrees to be bound by any
judgment rendered thereby in connection with this Agreement.

      8.6 MUTUAL WAIVER OF JURY TRIAL. THE PARTIES HERETO WAIVE ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO ENFORCE OR DEFEND ANY
RIGHTS OR REMEDIES UNDER THIS AGREEMENT.

      8.7 Severability. The invalidity, illegality or unenforceability of one or
more of the provisions of this Agreement in any jurisdiction shall not affect
the validity, legality or enforceability of the remainder of this Agreement in
such jurisdiction or the validity, legality or enforceability of this Agreement,
including any such provision, in any other jurisdiction, it being intended that
all rights and obligations of the parties hereunder shall be enforceable to the
fullest extent permitted by law.

      8.8 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.

      8.9 Successors; Assigns; Transferees. The provisions of this Agreement
shall be binding upon and accrue to the benefit of the parties hereto and their
respective heirs, personal representatives, successors and permitted assigns. In
addition, and whether or not any express assignment shall have been made, the
provisions of this Agreement which are for the benefit of the Holders shall also
be for the benefit of and enforceable by any Transferee or subsequent holder of
Registrable Securities, subject to the provisions contained herein; provided
that the Company is given written notice at the time or within 90 days of said
transfer, stating the name and address of the Transferee and identifying the
securities with respect to which such registration rights are being transferred;
and provided, further, that the Transferee or assignee of such rights assumes in
writing the obligations of such Holder under this Agreement (in which case such
Holder shall be released from such obligations). Each Holder shall have the
exclusive option to determine which rights and obligations shall be assigned to
any Transferee.

      8.10 Information to be Furnished by the Holders. Each Holder shall furnish
to the Company such information as the Company may reasonably request and as
shall be required in connection with the registration and related proceedings
referred to herein.

                                       20
<PAGE>
      8.11 Amendments, Waivers. This Agreement may not be amended, modified or
supplemented and no waivers of or consents to departures from the provisions
hereof may be given unless consented to in writing by the Company and the
Majority Holders; provided, however, that any amendment, modification,
supplement or waiver of or to this Agreement that treats any Holder differently
than any other Holder shall require the consent of the Majority Holders of each
group of similarly treated Holders.

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

      8.13 Limited Liability. Notwithstanding any other provision of this
Agreement neither the stockholders, members, general partners, limited partners,
advisory directors or managing directors, or any directors or officers of any
stockholders, members, general partners, limited partners, advisory directors or
managing directors, nor any future stockholders, members, general partners,
limited partners, advisory directors or managing directors, if any, of any
Holder shall have any personal liability for performance of any obligation of
such Holder under this Agreement.

      8.14 Adjustments Affecting Registrable Securities. The Company will not
take any action, or permit any change to occur, with respect to the Registrable
Securities which would (i) adversely affect the ability of any Holder to include
such Registrable Securities in a registration undertaken pursuant to this
Agreement or (ii) adversely affect the marketability of such Registrable
Securities in any such registration.

      8.15 Rule 144. If the Company is subject to the requirements of Section
13, 14 or 15(d) of the Exchange Act, the Company covenants that it will file
with the SEC in a timely manner any reports required to be filed by it under the
Securities Act and the Exchange Act (or, if the Company is not required to file
such reports, it will, upon the request of any Holder, make publicly available
such information) and it will take such further action as any Holder may
reasonably request, so as to enable such 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 (ii) any similar rule or regulation hereafter
adopted by the SEC. Upon the request of any Holder, the Company will deliver to
such Holder a written statement as to whether it has complied with such
requirements.

      8.16 Other Registration Rights. The Company covenants that it will not
grant any right of registration under the Securities Act relating to any of its
IDSs, shares of Class A Common Stock, Class A Common Stock Equivalents, Senior
Subordinated Notes, Class B Common Stock or other securities to any person
unless the Holders shall be entitled to have included in any registration
effected (i) pursuant to Article II hereof, all Registrable Securities requested
by it to be so included prior to the inclusion of any securities requested to be
registered by the persons entitled to any such other registration rights
pursuant to any provision providing incidental registration rights comparable to
those contained in Article III hereof and (ii) pursuant to Article III hereof,
pro rata with the inclusion of any securities requested to be registered by the
persons entitled to any such other registration rights pursuant to any provision
providing incidental registration rights comparable to those contained in
Article III hereof.

                                       21
<PAGE>
            (a) If the Company at any time grants to any other holders of IDSs,
Class A Common Stock, Class A Common Stock Equivalents, Senior Subordinated
Notes, Class B Common Stock or other securities of the Company any rights to
request the Company to effect the registration (whether requested or incidental)
under the Securities Act of any such securities on any terms more favorable to
such holders than the terms set forth in this Agreement, the terms of this
Agreement shall, at the request of the Majority Holders, be deemed amended or
supplemented to the extent necessary to provide the Holders such more favorable
rights and benefits.

            (b) The Company covenants that it will not enter into, or cause or
permit any of its subsidiaries to enter into, any agreement which conflicts with
or limits or prohibits the exercise of the rights granted to the Holders in this
Agreement.

            (c) The Company covenants that it will not grant any right of
registration under the Securities Act relating to any of its IDSs, shares of
Class A Common Stock, Class A Common Stock Equivalents, Senior Subordinated
Notes, Class B Common Stock or other securities to any Person pursuant to any
provision providing registration rights comparable to those contained in Article
II hereof without providing that the exercise of such rights will only be
permitted following the consummation of an underwritten public offering by the
Majority Holders.

      8.17 Limitation on Separate Registration of Common Stock. Notwithstanding
anything in this Agreement to the contrary, nothing herein shall require the
Company to separately register the Class A Common Stock (not in the form of
IDSs) at any time that the Class A Common Stock is not then actively traded on
the American Stock Exchange or any other national securities exchange or
automated securities quotation system.

      8.18 Headings. The headings and captions contained herein are for
convenience of reference only and shall not control or affect the meaning or
construction of any provision hereof.

                                       22
<PAGE>
            This Agreement has been duly executed and delivered by the
individuals whose names appear below and by the duly authorized representatives
of each party hereto as of the date first above written.

                                          ALLIANCE LAUNDRY HOLDINGS, INC.

                                          By:
                                             ---------------------------------
                                          Name:
                                          Title:

                                          [BAIN FUNDS]

                                          By:
                                             ---------------------------------
                                          Name:
                                          Title:

                                          [BRS INVESTORS]

                                          By:
                                             ---------------------------------
                                          Name:
                                          Title:

                                          [MANAGEMENT INVESTORS]

                                          By:
                                             ---------------------------------
                                          Name:
                                          Title:

                                       23
<PAGE>
                                    Exhibit 1

Bain Capital Fund V, L.P.

BCIP Trust Associates II-B

BCIP Associates II

BCIP Associates II-B

                                       24
<PAGE>
                                    Exhibit 2

BCB Family Partners, L.P.

NAZ Family Partners, L.P.

Payl D. Kaminski

Bruce C. Bruckmann

Donald J. Bruckmann

Harold O. Rosser

Stephen C. Sherrill

H. Virgil Sherrill

Nancy A. Zweng

John Rice Edmonds

Susan Kaider

Marilena Tibrea

Walker C. Simmons

Beverly Place

Elizabeth McShane

MLPF&S Custodian FBO Paul Kaminski

                                       25
<PAGE>
                                    Exhibit 3

                                       26<PAGE>
                                                                    Exhibit 4.01

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION ("DTC"), TO A NOMINEE OF DTC OR BY DTC OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
TO CITIGROUP GLOBAL MARKETS HOLDINGS INC. OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

No. R-1                                              INITIAL PRINCIPAL AMOUNT
CUSIP 173076 84 5                                    REPRESENTED $18,000,000
                                                     representing 1,800,000 ELKS
                                                     ($10 per ELKS)

                     CITIGROUP GLOBAL MARKETS HOLDINGS INC.
     7.5% Equity Linked Securities (ELKS(R)) based upon the common stock of
                       Genentech, Inc. due August 30, 2005

      Citigroup Global Markets Holdings Inc., a New York corporation
(hereinafter referred to as the "Company", which term includes any successor
corporation under the Indenture herein referred to), for value received and on
condition that this Note is not redeemed by the Company prior to August 30, 2005
(the "Stated Maturity Date"), hereby promises to pay to CEDE & CO., or its
registered assigns, the Maturity Payment (as defined below), on the Stated
Maturity Date. This Note will pay semi-annual coupon payments, is not subject to
any sinking fund, is not subject to redemption at the option of the Holder
thereof prior to the Stated Maturity Date, and is not subject to the defeasance
provisions of the Indenture.

      Payment of the Maturity Payment with respect to this Note shall be made
upon presentation and surrender of this Note at the corporate trust office of
the Trustee in the Borough of Manhattan, The City and State of New York, in such
coin or currency of the United States as at the time of payment is legal tender
for payment of public and private debts or, if applicable, in the common stock
of Genentech, Inc. ("Genentech").

      This Note is one of the series of 7.5% Equity Linked Securities based upon
the common stock of Genentech due August 30, 2005 (the "ELKS").
<PAGE>
COUPON

      A coupon of $0.3771 per ELKS will be paid in cash on February 28, 2005 and
a coupon of $0.3750 per ELKS will be paid in cash on August 30, 2005. The
February 28, 2005 coupon will be composed of $0.1081 of interest and a partial
payment of an option premium in the amount of $0.2690. The August 30, 2005
coupon will be composed of $0.1075 of interest and a partial payment of an
option premium in the amount of $0.2675. Coupon payments will be payable to the
persons in whose names the ELKS are registered at the close of business on the
fifth Business Day preceding each Coupon Payment Date. If a Coupon Payment Date
falls on a day that is not a Business Day, the coupon payment to be made on such
Coupon Payment Date will be made on the next succeeding Business Day with the
same force and effect as if made on such Coupon Payment Date, and no additional
interest will accrue as a result of such delayed payment.

      "Business Day" means any day that is not a Saturday, a Sunday or a day on
which securities exchanges or banking institutions or trust companies in the
City of New York are authorized or obligated by law or executive order to close.

      The interest portion of the coupon will represent interest accruing at a
rate of 2.1500% per annum from August 27, 2004 or from the most recent Coupon
Payment Date to which the interest portion of the coupon has been paid or
provided for until maturity. The interest portion of the coupon will be computed
on the basis of a 360-day year of twelve 30-day months.

PAYMENT AT MATURITY

      On the Stated Maturity Date, Holders of the ELKS will receive for each
ELKS the Maturity Payment described below.

DETERMINATION OF THE MATURITY PAYMENT

      The Maturity Payment for each ELKS will equal either:

      -     a number of shares of Genentech common stock equal to the Exchange
            Ratio, if the Trading Price of Genentech common stock on any Trading
            Day after August 24, 2004 up to and including the third Trading Day
            before the Stated Maturity Date (whether intra-day or at the close
            of trading on any day) is less than or equal to $36.15
            (approximately 75% of the Initial Share Price), or

      -     $10 in cash.

      In lieu of any fractional share of Genentech common stock otherwise
payable in respect of any ELKS, at the Stated Maturity Date, the Holder of this
Note will receive an amount in cash equal to the value of such fractional share.
The number of full shares of Genentech common stock, and any cash in lieu of a
fractional share, to be delivered at the Stated Maturity Date to the Holder of
this Note will be calculated based on the aggregate number of ELKS held by such
Holder.

                                       2
<PAGE>
      The "Initial Share Price" equals $48.21, the price per share of Genentech
common stock at the market close on August 24, 2004.

      The "Exchange Ratio" equals 0.20743.

      A "Market Disruption Event" means the occurrence or existence of any
suspension of or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by any exchange or market or otherwise) of, or the
unavailability, through a recognized system of public dissemination of
transaction information, of accurate price, volume or related information in
respect of, (1) the shares of Genentech common stock (or any other security for
which a Trading Price or Closing Price must be determined) on any exchange or
market, or (2) any options contracts or futures contracts relating to the shares
of Genentech common stock (or other security), or any options on such futures
contracts, on any exchange or market if, in each case, in the determination of
the calculation agent, any such suspension, limitation or unavailability is
material.

      A "Trading Day" means a day, as determined by the calculation agent, on
which trading is generally conducted (or was scheduled to have been generally
conducted, but for the occurrence of a Market Disruption Event) on the New York
Stock Exchange, the American Stock Exchange, the Nasdaq National Market, the
Chicago Mercantile Exchange and the Chicago Board Options Exchange, and in the
over-the-counter market for equity securities in the United States.

      The "Trading Price" of Genentech common stock on any date of determination
will be (1) if the common stock is listed on a national securities exchange on
that date of determination, any reported sale price, regular way, of the
principal trading session on that date on the principal U.S. exchange on which
the common stock is listed or admitted to trading, (2) if the common stock is
not listed on a national securities exchange on that date of determination, or
if the reported sale price on such exchange is not obtainable (even if the
common stock is listed or admitted to trading on such exchange), and the common
stock is quoted on the Nasdaq National Market, any reported sale price of the
principal trading session on that date as reported on the Nasdaq, and (3) if the
common stock is not quoted on the Nasdaq on that date of determination, or if
the reported sale price on the Nasdaq is not obtainable (even if the common
stock is quoted on the Nasdaq), any reported sale price of the principal trading
session on the over-the-counter market on that date as reported on the OTC
Bulletin Board, the National Quotation Bureau or a similar organization. The
determination of the Trading Price by the calculation agent in the event of a
Market Disruption Event may be deferred by the calculation agent for up to five
consecutive Trading Days on which a Market Disruption Event is occurring, but
not past the Trading Day prior to the Stated Maturity Date. If no reported sale
price of the principal trading session is available pursuant to clauses (1), (2)
or (3) above or if there is a Market Disruption Event, the Trading Price on any
date of determination, unless deferred by the calculation agent as described in
the preceding sentence, will be the arithmetic mean, as determined by the
calculation agent, of the bid prices of the common stock obtained from as many
dealers in such stock (which may include Citigroup Global Markets Inc. or any of
our other subsidiaries or affiliates), but not exceeding three such dealers, as
will make such bid prices available to the calculation agent. A security "quoted
on the Nasdaq National Market" will include a security included for listing or

                                       3
<PAGE>
quotation in any successor to such system and the term "OTC Bulletin Board" will
include any successor to such service.

      DILUTION ADJUSTMENTS

      If Genentech, after the closing date of the offering of the ELKS,

      (1) pays a stock dividend or makes a distribution with respect to its
common stock in shares of the stock,

      (2) subdivides or splits the outstanding shares of its common stock into a
greater number of shares,

      (3) combines the outstanding shares of the common stock into a smaller
number of shares, or

      (4) issues by reclassification of shares of its common stock any shares of
other common stock of Genentech,

then, in each of these cases, the Exchange Ratio will be multiplied by a
dilution adjustment equal to a fraction, the numerator of which will be the
number of shares of common stock outstanding immediately after the event, plus,
in the case of a reclassification referred to in (4) above, the number of shares
of other common stock of Genentech, and the denominator of which will be the
number of shares of common stock outstanding immediately before the event. The
Initial Share Price will also be adjusted in that case in the manner described
below.

      If Genentech, after the closing date, issues, or declares a record date in
respect of an issuance of, rights or warrants to all holders of its common stock
entitling them to subscribe for or purchase shares of its common stock at a
price per share less than the Then-Current Market Price of the common stock,
other than rights to purchase common stock pursuant to a plan for the
reinvestment of dividends or interest, then, in each case, the Exchange Ratio
will be multiplied by a dilution adjustment equal to a fraction, the numerator
of which will be the number of shares of common stock outstanding immediately
before the adjustment is effected, plus the number of additional shares of
common stock offered for subscription or purchase pursuant to the rights or
warrants, and the denominator of which will be the number of shares of common
stock outstanding immediately before the adjustment is effected by reason of the
issuance of the rights or warrants, plus the number of additional shares of
common stock which the aggregate offering price of the total number of shares of
common stock offered for subscription or purchase pursuant to the rights or
warrants would purchase at the Then-Current Market Price of the common stock,
which will be determined by multiplying the total number of shares so offered
for subscription or purchase by the exercise price of the rights or warrants and
dividing the product obtained by the Then-Current Market Price. To the extent
that, after the expiration of the rights or warrants, the shares of common stock
offered thereby have not been delivered, the Exchange Ratio will be further
adjusted to equal the Exchange Ratio which would have been in effect had the
adjustment for the issuance of the rights or warrants been made upon the basis
of

                                       4
<PAGE>
delivery of only the number of shares of common stock actually delivered. The
Initial Share Price will also be adjusted in that case in the manner described
below.

      If Genentech, after the closing date, declares or pays a dividend or makes
a distribution to all holders of the common stock of any class of its capital
stock, the capital stock of one or more of its subsidiaries, evidences of its
indebtedness or other non-cash assets, excluding any dividends or distributions
referred to in the above paragraph, or issues to all holders of its common stock
rights or warrants to subscribe for or purchase any of its or one or more of its
subsidiaries' securities, other than rights or warrants referred to in the above
paragraph, then, in each of these cases, the Exchange Ratio will be multiplied
by a dilution adjustment equal to a fraction, the numerator of which will be the
Then-Current Market Price of one share of the common stock, and the denominator
of which will be the Then-Current Market Price of one share of the common stock,
less the fair market value (as determined by a nationally recognized independent
investment banking firm retained for this purpose by the Company, whose
determination will be final) as of the time the adjustment is effected of the
portion of the capital stock, assets, evidences of indebtedness, rights or
warrants so distributed or issued applicable to one share of common stock. The
Initial Share Price will also be adjusted in that case in the manner described
below.

      Notwithstanding the foregoing, in the event that, with respect to any
dividend or distribution to which the above paragraph would otherwise apply, the
denominator in the fraction referred to in the above formula is less than $1.00
or is a negative number, then the Company may, at its option, elect to have the
adjustment provided by the above paragraph not be made and in lieu of this
adjustment, the Trading Price of Genentech common stock on any Trading Day
thereafter up to and including the third Trading Day before the Stated Maturity
Date will be deemed to be equal to the fair market value of the capital stock,
evidences of indebtedness, assets, rights or warrants (determined, as of the
date this dividend or distribution is made, by a nationally recognized
independent investment banking firm retained for this purpose by the Company,
whose determination will be final) so distributed or issued applicable to one
share of Genentech common stock and, if the Trading Price of Genentech common
stock on any Trading Day thereafter, up to and including the third Trading Day
before the Stated Maturity Date, is less than or equal to approximately 75% of
the Initial Share Price, each holder of the ELKS will have the right to receive
at maturity cash in an amount per ELKS equal to the Exchange Ratio multiplied by
such fair market value.

      If Genentech, after the closing date, declares a record date in respect of
a distribution of cash, other than any Permitted Dividends described below, any
cash distributed in consideration of fractional shares of common stock and any
cash distributed in a Reorganization Event referred to below, by dividend or
otherwise, to all holders of its common stock, or makes an Excess Purchase
Payment, then the Exchange Ratio will be multiplied by a dilution adjustment
equal to a fraction, the numerator of which will be the Then-Current Market
Price of the common stock, and the denominator of which will be the Then-Current
Market Price of the common stock on the record date less the amount of the
distribution applicable to one share of common stock which would not be a
Permitted Dividend, or, in the case of an Excess Purchase Payment, less the
aggregate amount of the Excess Purchase Payment for which adjustment is being
made at the

                                       5
<PAGE>
time divided by the number of shares of common stock outstanding on the record
date. The Initial Share Price will also be adjusted in that case in the manner
described below.

      For the purposes of these adjustments:

      A "Permitted Dividend" is any quarterly cash dividend in respect of
Genentech common stock, other than a quarterly cash dividend that exceeds the
immediately preceding quarterly cash dividend, and then only to the extent that
the per share amount of this dividend results in an annualized dividend yield on
the common stock in excess of 10%.

      An "Excess Purchase Payment" is the excess, if any, of (x) the cash and
the value (as determined by a nationally recognized independent investment
banking firm retained for this purpose by the Company, whose determination will
be final) of all other consideration paid by Genentech with respect to one share
of common stock acquired in a tender offer or exchange offer by Genentech, over
(y) the Then-Current Market Price of the common stock.

      Notwithstanding the foregoing, in the event that, with respect to any
dividend, distribution or Excess Purchase Payment to which the sixth paragraph
in this section would otherwise apply, the denominator in the fraction referred
to in the formula in that paragraph is less than $1.00 or is a negative number,
then the Company may, at its option, elect to have the adjustment provided by
the sixth paragraph in this section not be made and in lieu of this adjustment,
the Trading Price of Genentech common stock on any Trading Day thereafter up to
and including the third Trading Day before the Stated Maturity Date will be
deemed to be equal to the sum of the amount of cash and the fair market value of
other consideration (determined, as of the date this dividend or distribution is
made, by a nationally recognized independent investment banking firm retained
for this purpose by the Company, whose determination will be final) so
distributed or applied to the acquisition of the common stock in the tender
offer or exchange offer applicable to one share of Genentech common stock and,
if the Trading Price of Genentech common stock on any Trading Day thereafter, up
to and including the third Trading Day before the Stated Maturity Date, is less
than or equal to approximately 75% of the Initial Share Price, each holder of
the ELKS will have the right to receive at maturity cash in an amount per ELKS
equal to the Exchange Ratio multiplied by such sum.

      If any adjustment is made to the Exchange Ratio as set forth above, an
adjustment will also be made to the Initial Share Price. The required adjustment
will be made by dividing the Initial Share Price by the relevant dilution
adjustment.

      Each dilution adjustment will be effected as follows:

      -     in the case of any dividend, distribution or issuance, at the
            opening of business on the Business Day next following the record
            date for determination of holders of Genentech common stock entitled
            to receive this dividend, distribution or issuance or, if the
            announcement of this dividend, distribution, or issuance is after
            this record date, at the time this dividend, distribution or
            issuance was announced by Genentech,

                                       6
<PAGE>
      -     in the case of any subdivision, split, combination or
            reclassification, on the effective date of the transaction,

      -     in the case of any Excess Purchase Payment for which Genentech
            announces, at or prior to the time it commences the relevant share
            repurchase, the repurchase price per share for shares proposed to be
            repurchased, on the date of the announcement, and

      -     in the case of any other Excess Purchase Payment, on the date that
            the holders of the repurchased shares become entitled to payment in
            respect thereof.

      All dilution adjustments will be rounded upward or downward to the nearest
1/10,000th or, if there is not a nearest 1/10,000th, to the next lower
1/10,000th. No adjustment in the Exchange Ratio will be required unless the
adjustment would require an increase or decrease of at least one percent
therein, provided, however, that any adjustments which by reason of this
sentence are not required to be made will be carried forward (on a percentage
basis) and taken into account in any subsequent adjustment. If any announcement
or declaration of a record date in respect of a dividend, distribution, issuance
or repurchase requiring an adjustment as described herein is subsequently
canceled by Genentech, or this dividend, distribution, issuance or repurchase
fails to receive requisite approvals or fails to occur for any other reason,
then, upon the cancellation, failure of approval or failure to occur, the
Exchange Ratio and the Initial Share Price will be further adjusted to the
Exchange Ratio and the Initial Share Price which would then have been in effect
had adjustment for the event not been made. If a Reorganization Event described
below occurs after the occurrence of one or more events requiring an adjustment
as described herein, the dilution adjustments previously applied to the Exchange
Ratio will not be rescinded but will be applied to the Reorganization Event as
provided for below.

      The "Then-Current Market Price" of the common stock, for the purpose of
applying any dilution adjustment, means the average Closing Price per share of
common stock for the ten Trading Days immediately before this adjustment is
effected or, in the case of an adjustment effected at the opening of business on
the Business Day next following a record date, immediately before the earlier of
the date the adjustment is effected and the related Ex-Date. For purposes of
determining the Then-Current Market Price, the determination of the Closing
Price by the calculation agent in the event of a Market Disruption Event, as
described in the definition of Closing Price, may be deferred by the calculation
agent for up to five consecutive Trading Days on which a Market Disruption Event
is occurring, but not past the Trading Day prior to the Stated Maturity Date.

      The "Closing Price" of Genentech common stock (or any other security for
which a Closing Price must be determined) on any date of determination will be
(1) if the common stock is listed on a national securities exchange on that date
of determination, the closing sale price or, if no closing sale price is
reported, the last reported sale price on that date on the principal U.S.
exchange on which the common stock is listed or admitted to trading, (2) if the
common stock is not listed on a national securities exchange on that date of
determination, or if the closing sale price or last reported sale price is not
obtainable (even if the common stock is listed or admitted to trading on such
exchange), and the common stock is quoted on the Nasdaq National Market,

                                       7
<PAGE>
the closing sale price or, if no closing sale price is reported, the last
reported sale price on that date as reported on the Nasdaq, and (3) if the
common stock is not quoted on the Nasdaq on that date of determination or, if
the closing sale price or last reported sale price is not obtainable (even if
the common stock is quoted on the Nasdaq), the last quoted bid price for the
common stock in the over-the-counter market on that date as reported by the OTC
Bulletin Board, the National Quotation Bureau or a similar organization. The
determination of the Closing Price by the calculation agent in the event of a
Market Disruption Event may be deferred by the calculation agent for up to five
consecutive Trading Days on which a Market Disruption Event is occurring, but
not past the Trading Day prior to the Stated Maturity Date. If no closing sale
price or last reported sale price is available pursuant to clauses (1), (2) or
(3) above or if there is a Market Disruption Event, the Closing Price on any
date of determination, unless deferred by the calculation agent as described in
the preceding sentence, will be the arithmetic mean, as determined by the
calculation agent, of the bid prices of the common stock obtained from as many
dealers in such stock (which may include Citigroup Global Markets Inc. or any of
our other subsidiaries or affiliates), but not exceeding three such dealers, as
will make such bid prices available to the calculation agent. A security "quoted
on the Nasdaq National Market" will include a security included for listing or
quotation in any successor to such system and the term "OTC Bulletin Board" will
include any successor to such service. If, during any period of ten Trading Days
used to calculate the Then-Current Market Price, there occurs any event
requiring an adjustment to be effected as described herein, then the Closing
Price for each Trading Day in such period of ten Trading Days occurring prior to
the day on which such adjustment is effected will be adjusted by being divided
by the relevant dilution adjustment.

      The "Ex-Date" relating to any dividend, distribution or issuance is the
first date on which the shares of the common stock trade in the regular way on
their principal market without the right to receive this dividend, distribution
or issuance.

      In the event of any of the following "Reorganization Events":

      -     any consolidation or merger of Genentech, or any surviving entity or
            subsequent surviving entity of Genentech, with or into another
            entity, other than a merger or consolidation in which Genentech is
            the continuing corporation and in which the common stock outstanding
            immediately before the merger or consolidation is not exchanged for
            cash, securities or other property of Genentech or another issuer,

      -     any sale, transfer, lease or conveyance to another corporation of
            the property of Genentech or any successor as an entirety or
            substantially as an entirety,

      -     any statutory exchange of securities of Genentech or any successor
            of Genentech with another issuer, other than in connection with a
            merger or acquisition, or

      -     any liquidation, dissolution or winding up of Genentech or any
            successor of Genentech,

                                       8
<PAGE>
the Trading Price of Genentech common stock on any Trading Day thereafter up to
and including the third Trading Day before the Stated Maturity Date will be
deemed to be equal to the Transaction Value.

      The "Transaction Value" will be the sum of:

      (1) for any cash received in a Reorganization Event, the amount of cash
received per share of common stock,

      (2) for any property other than cash or Marketable Securities received in
a Reorganization Event, an amount equal to the market value on the date the
Reorganization Event is consummated of that property received per share of
common stock, as determined by a nationally recognized independent investment
banking firm retained for this purpose by the Company, whose determination will
be final, and

      (3) for any Marketable Securities received in a Reorganization Event, an
amount equal to the Closing Price per share of these Marketable Securities on
the applicable Trading Day multiplied by the number of these Marketable
Securities received for each share of common stock.

      "Marketable Securities" are any perpetual equity securities or debt
securities with a stated maturity after the maturity date, in each case that are
listed on a U.S. national securities exchange or reported by the Nasdaq National
Market. The number of shares of any equity securities constituting Marketable
Securities included in the calculation of Transaction Value pursuant to clause
(3) above will be adjusted if any event occurs with respect to the Marketable
Securities or the issuer of the Marketable Securities between the time of the
Reorganization Event and maturity that would have required an adjustment as
described above, had it occurred with respect to Genentech common stock or
Genentech. Adjustment for these subsequent events will be as nearly equivalent
as practicable to the adjustments described above.

      If Genentech common stock has been subject to a Reorganization Event and
the Trading Price of Genentech common stock on any Trading Day thereafter, up to
and including the third Trading Day before the Stated Maturity Date, is less
than or equal to approximately 75% of the Initial Share Price, then each holder
of the ELKS will have the right to receive per $10 principal amount of ELKS (i)
cash in an amount equal to the Exchange Ratio multiplied by the sum of clauses
(1) and (2) in the definition of "Transaction Value" above and (ii) the number
of Marketable Securities received for each share of stock in the Reorganization
Event multiplied by the Exchange Ratio.

GENERAL

      This Note is one of a duly authorized issue of Debt Securities of the
Company, issued and to be issued in one or more series under a Senior Debt
Indenture, dated as of October 27, 1993, as supplemented by a First Supplemental
Indenture, dated as of November 28, 1997, a Second Supplemental Indenture, dated
as of July 1, 1999, and as further supplemented from time to time (the
"Indenture"), between the Company and The Bank of New York, as trustee (the
"Trustee",

                                       9
<PAGE>
which term includes any successor trustee under the Indenture), to which
Indenture reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the ELKS, and the terms upon which the ELKS are, and
are to be, authenticated and delivered.

      In case an Event of Default with respect to the ELKS shall have occurred
and be continuing, the principal of the ELKS may be declared due and payable in
the manner and with the effect provided in the Indenture. In such case, the
amount declared due and payable upon any acceleration permitted by the Indenture
will be determined by the calculation agent and will be equal to, with respect
to this Note, the Maturity Payment calculated as though the Stated Maturity Date
of this Note were the date of early repayment. In case of default at Maturity of
this Note, this Note shall bear interest, payable upon demand of the beneficial
owners of this Note in accordance with the terms of the ELKS, from and after
Maturity through the date when payment of such amount has been made or duly
provided for, at the rate of 2.75% per annum on the unpaid amount (or the cash
equivalent of such unpaid amount) due.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Debt Securities of each series to
be affected under the Indenture at any time by the Company and a majority in
aggregate principal amount of the Debt Securities at the time Outstanding of
each series affected thereby. The Indenture also contains provisions permitting
the Holders of specified percentages in aggregate principal amount of the Debt
Securities of any series at the time Outstanding, on behalf of the Holders of
all Debt Securities of such series, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Note.

      The Holder of this Note may not enforce such Holder's rights pursuant to
the Indenture or the Notes except as provided in the Indenture. No reference
herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company to pay the Maturity Payment with
respect to this Note, and to pay any interest on any overdue amount thereof at
the time, place and rate, and in the coin or currency, herein prescribed.

      All terms used in this Note which are defined in the Indenture but not in
this Note shall have the meanings assigned to them in the Indenture.

      Unless the certificate of authentication hereon has been executed by the
Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purposes.

                                       10
<PAGE>
      IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

                                       CITIGROUP GLOBAL MARKETS HOLDINGS INC.

                                       By:        /s/ Scott Freidenrich
                                          --------------------------------------
                                            Name:   Scott Freidenrich
                                            Title:  Executive Vice President
                                                    and Treasurer

Corporate Seal
Attest:

By:        /s/ Douglas C. Turnbull
   --------------------------------------
     Name:  Douglas C. Turnbull
     Title: Assistant Secretary

Dated August 27, 2004

CERTIFICATE OF AUTHENTICATION
  This is one of the Notes referred to in
  the within-mentioned Indenture.

The Bank of New York,
as Trustee

By:        /s/ Stacey Poindexter
   --------------------------------------
     Authorized Signatory

                                       11

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