Document:

EXHIBIT 4.5

                          REGISTRATION RIGHTS AGREEMENT

                                      AMONG

                              KANSAS CITY SOUTHERN

                                   AS ISSUER,

                                       AND

                       MORGAN STANLEY & CO. INCORPORATED,

                                       AND

                          DEUTSCHE BANK SECURITIES INC.

                              AS INITIAL PURCHASERS

                             DATED AS OF MAY 5, 2003

<PAGE>

     REGISTRATION  RIGHTS  AGREEMENT  dated as of May 5, 2003 among  Kansas City
Southern,  a Delaware  corporation  (the  "COMPANY"),  and Morgan  Stanley & Co.
Incorporated and Deutsche Bank Securities  Inc., as the initial  purchasers (the
"INITIAL  PURCHASERS")  under the Placement  Agreement dated April 29, 2003 (the
"PLACEMENT AGREEMENT"), between the Company and the Initial Purchasers. In order
to induce the Initial  Purchasers  to enter into the  Placement  Agreement,  the
Company  has  agreed  to  provide  the  registration  rights  set  forth in this
Agreement.  The execution of this  Agreement is a condition to the closing under
the Placement Agreement.

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

     Section 1. DEFINITIONS.  Capitalized  terms used herein without  definition
shall have their respective  meanings set forth in the Placement  Agreement.  As
used in this Agreement, the following terms shall have the following meanings:

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

     "AMENDMENT  EFFECTIVENESS  DEADLINE  DATE"  has the  meaning  set  forth in
Section 2(d) hereof.

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

     "CERTIFICATE OF DESIGNATIONS" means the Certificate of Designations,  dated
as of May 5, 2003  setting  forth the  preferences  and rights,  qualifications,
limitations and restrictions of the Preferred Stock.

     "COMMON  STOCK" means the shares of common stock,  $0.01 par value,  of the
Company,  and any other securities as may constitute "Common Stock" for purposes
of the Certificate of Designations, including the Underlying Common Stock.

     "CONVERSION PRICE" has the meaning assigned such term in the Certificate of
Designations.

     "DAMAGES ACCRUAL PERIOD" has the meaning set forth in Section 2(e) hereof.

     "DAMAGES  PAYMENT  DATE"  means each  February  15,  May 15,  August 15 and
November 15.

     "DEFERRAL NOTICE" has the meaning set forth in Section 3(i) hereof.

     "DEFERRAL PERIOD" has the meaning set forth in Section 3(i) hereof.

     "DIVIDEND  PAYMENT  DATE"  has the  meaning  assigned  to such  term in the
Certificate of Designations.

     "EFFECTIVENESS  DEADLINE  DATE" has the meaning  set forth in Section  2(a)
hereof.

     "EFFECTIVENESS  PERIOD" means the period commencing on the date the Initial
Shelf  Registration  Statement is declared effective and ending on the date that
all Registrable Securities have ceased to be Registrable Securities.

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

     "REGISTRATION  DEFAULT  DATE" has the  meaning  set forth in  Section  2(e)
hereof.

     "REGISTRATION  DEFAULT  TERMINATION  DATE"  has the  meaning  set  forth in
Section 2(e) hereof.

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

     "FILING DEADLINE DATE" has the meaning set forth in Section 2(a) hereof.

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

     "INITIAL  PURCHASERS"  has the  meaning  set forth in the  preamble to this
Agreement.

     "INITIAL SHELF REGISTRATION STATEMENT" has the meaning set forth in Section
2(a) hereof.

     "ISSUE  DATE"  means the first date of original  issuance of the  Preferred
Stock.

     "LIQUIDATED  DAMAGES  AMOUNT"  has the  meaning  set forth in Section  2(e)
hereof.

     "LIQUIDATED DAMAGES PAYMENTS" has the meaning set forth in Section 2(e).

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

     "MATERIAL EVENT" has the meaning set forth in Section 3(i) hereof.

     "NOTICE AND QUESTIONNAIRE"  means a written notice delivered to the Company
containing   substantially   the   information   called   for  by  the   Selling
Securityholder  Notice and  Questionnaire  attached  as Annex A to the  Offering
Memorandum of the Company dated April 29, 2003 relating to the Preferred Stock.

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

     "OFFERING MEMORANDUM" has the meaning set forth in Section 2(a) hereof.

     "PLACEMENT AGREEMENT" has the meaning set forth in the preamble hereof.

     "PREFERRED  STOCK"  means  the  4.25%  Redeemable  Cumulative   Convertible
Perpetual  Preferred Stock,  Series C (par value $1.00 per share) of the Company
that has the rights,  powers and  preferences  set forth in the  Certificate  of
Designations.

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

     "RECORD DATE" has the meaning  assigned to such term in the  Certificate of
Designations.

     "RECORD HOLDER" means (i) with respect to any Damages Payment Date relating
to any  Preferred  Stock as to which  any such  Liquidated  Damages  Amount  has
accumulated, the holder of record of such share of Preferred Stock on the Record
Date with  respect to the Dividend  Payment  Date on which such Damages  Payment
Date shall occur and (ii) with respect to any Damages  Payment Date  relating to
the Underlying  Common Stock as to which any such Liquidated  Damages Amount has
accrued,  the registered  holder of such  Underlying  Common Stock on the Record
Date immediately preceding the relevant Damages Payment Date.

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

     "REGISTRATION EXPENSES" has the meaning set forth in Section 5 hereof.

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

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

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

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

     "SEC" means the Securities and Exchange Commission.

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

     "SHELF  REGISTRATION  STATEMENT"  has the meaning set forth in Section 2(a)
hereof.

     "SPECIAL  COUNSEL" means a nationally  recognized  law firm  experienced in
securities law matters  designated by the Company,  with the written  consent of
the  Initial  Purchasers  (which  shall  not  be  unreasonably  withheld),   the
reasonable  fees and  expenses of which will be paid by the Company  pursuant to
Section 5 hereof,  or one such other successor  counsel as shall be specified by
the Holders of a majority of the Registrable Securities.

     "SPECIAL   DIVIDENDS"  has  the  meaning  assigned  to  such  term  in  the
Certificate of Designations.

     "SUBSEQUENT  SHELF  REGISTRATION  STATEMENT"  has the  meaning set forth in
Section 2(b) hereof.

     "TRANSFER AGENT" means UMB Bank, N.A., the Transfer Agent for the Preferred
Stock or any successor  Transfer Agent pursuant to the terms of the  Certificate
of Designations.

     "UNDERLYING  COMMON  STOCK" means the Common Stock into which the Preferred
Stock is convertible or that is issued upon any such conversion.

     Section 2. SHELF REGISTRATION.  The Company shall prepare and file or cause
to be prepared and filed with the SEC, by the date (the "FILING  DEADLINE DATE")
ninety (90) days after the Issue Date, a Registration  Statement for an offering
to be made  on a  delayed  or  continuous  basis  pursuant  to  Rule  415 of the
Securities Act (a "SHELF  REGISTRATION  STATEMENT")  registering the resale from
time  to time by  Holders  thereof  of all of the  Registrable  Securities  (the
"INITIAL  SHELF  REGISTRATION   STATEMENT").   The  Initial  Shelf  Registration
Statement  shall  be  on  Form  S-3  or  another   appropriate  form  permitting
registration  of such  Registrable  Securities  for  resale by such  Holders  in
accordance with the methods of distribution elected by the Holders and set forth
in the Initial  Shelf  Registration  Statement.  The Company  shall use its best
efforts  to cause  the  Initial  Shelf  Registration  Statement  to be  declared
effective  under the  Securities  Act as promptly as is  practicable  but in any
event by the date (the "EFFECTIVENESS DEADLINE DATE") that is one hundred eighty
(180) days after the Issue Date,  and, to keep the  Initial  Shelf  Registration
Statement  (or  any  Subsequent  Shelf  Registration   Statement)   continuously
effective  under the Securities  Act until the  expiration of the  Effectiveness
Period.  At the  time the  Initial  Shelf  Registration  Statement  is  declared
effective,  each Holder that became a Notice  Holder on or prior to the date ten
(10)  Business  Days  prior to such  time of  effectiveness  shall be named as a
selling  securityholder  in the Initial  Shelf  Registration  Statement  and the
related  Prospectus  in such a manner as to permit such  Holder to deliver  such
Prospectus to purchasers of Registrable Securities in accordance with applicable
law.  None  of the  Company's  security  holders  (other  than  the  Holders  of
Registrable  Securities)  shall have the right to include  any of the  Company's
securities in the Shelf Registration Statement;  provided, however, that if that
if  the  proposed   transactions   contemplated  by  the  Acquisition  Agreement
(including the ancillary  agreements  thereto) and the Stock Purchase  Agreement
(each as defined in the  Offering  Memorandum  relating to the  Preferred  Stock
dated April 29, 2003 (the "OFFERING  MEMORANDUM"))  are  consummated,  any party
under any such  agreements  will not,  if  required  under  registration  rights
granted  to such any  party  by the  Company  pursuant  to such  agreements,  be
prohibited  from including such shares of Common Stock for  registration  in any
Subsequent Shelf Registration Statement required to be filed under Section 2(b).
The Company shall use commercially reasonable efforts to seek a waiver from such
parties prior to including such shares of Common Stock for  registration in such
Subsequent Shelf Registration Statement.

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

     (c) The Company shall supplement and amend the Shelf Registration Statement
if  required  by  the  rules,  regulations  or  instructions  applicable  to the
registration form used by the Company for such Shelf Registration  Statement, if
required by the  Securities  Act or as  necessary  to name a Notice  Holder as a
selling securityholder pursuant to Section (d) below.

     (d) Each  Holder  agrees  that if such  Holder  wishes to sell  Registrable
Securities pursuant to a Shelf Registration Statement and related Prospectus, it
will do so only in  accordance  with this  Section 2(d) and Section  3(i).  Each
Holder wishing to sell Registrable  Securities  pursuant to a Shelf Registration
Statement and related Prospectus agrees to deliver a Notice and Questionnaire to
the Company at least three (3) Business Days prior to any intended  distribution
of Registrable Securities under the Shelf Registration Statement. From and after
the date the Initial Shelf  Registration  Statement is declared  effective,  the
Company  shall,  as  promptly  as  practicable  after  the  date  a  Notice  and
Questionnaire  is  delivered,  and in any  event  upon the later of (x) five (5)
Business Days after such date or (y) five (5) Business Days after the expiration
of any Deferral Period in effect when the Notice and  Questionnaire is delivered
or put into effect within five (5) Business Days of such delivery date:

          (i) if required by applicable law, file with the SEC a  post-effective
     amendment to the Shelf  Registration  Statement or prepare and, if required
     by  applicable  law,  file a  supplement  to the  related  Prospectus  or a
     supplement or amendment to any document  incorporated  therein by reference
     or file any other  required  document  so that the Holder  delivering  such
     Notice and Questionnaire is named as a selling  securityholder in the Shelf
     Registration  Statement  and the related  Prospectus in such a manner as to
     permit  such  Holder  to  deliver  such  Prospectus  to  purchasers  of the
     Registrable  Securities  in  accordance  with  applicable  law and,  if the
     Company  shall file a  post-effective  amendment to the Shelf  Registration
     Statement,  use its  commercially  reasonable  best  efforts  to cause such
     post-effective  amendment to be declared effective under the Securities Act
     as promptly as is practicable, but in any event by the date (the "AMENDMENT
     EFFECTIVENESS  DEADLINE  DATE") that is forty-five (45) days after the date
     such post-effective amendment is required by this clause to be filed;

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

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

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

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

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

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

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

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

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

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

Each  event  described  in any of the  foregoing  clauses  (i)  through  (vi) is
individually  referred to herein as a  "REGISTRATION  DEFAULT."  For purposes of
this  Agreement,  each  Registration  Default set forth above shall begin on the
dates set forth in the table set forth below and shall continue until the ending
dates set forth in the table below:

<TABLE>
<CAPTION>
    Type of Registration
     Default by Clause                   Beginning Date                            Ending Date
----------------------------     -------------------------------          -----------------------------

          <S>                    <C>                                      <C>
           (i)                   Filing Deadline Date                     the date the Initial Shelf
                                                                          Registration Statement is filed

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

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

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

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

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

     Commencing  on (and  including)  any date that a  Registration  Default has
begun  and  ending  on (but  excluding)  the  next  date on which  there  are no
Registration  Defaults that have occurred and are continuing (a "DAMAGES ACCRUAL
PERIOD"),  the Company shall pay, as liquidated damages and not as a penalty, to
Record  Holders of  Registrable  Securities an amount (the  "LIQUIDATED  DAMAGES
AMOUNT") accruing, for each day in the Damages Accrual Period, (i) in respect of
any share of Preferred Stock, as SPECIAL DIVIDENDS at the rate and in the manner
specified in the Certificate of Designation and (ii) in respect of each share of
Underlying  Common Stock, as "LIQUIDATED  DAMAGES  PAYMENTS" at a rate per annum
equal to 0.50% of the  Conversion  Price in  effect on the first day of any such
period;  PROVIDED that in the case of a Damages Accrual Period that is in effect
solely as a result of a  Registration  Default of the type  described  in clause
(iii) or (iv) of the preceding  paragraph,  such Liquidated Damages Amount shall
be paid only to the Holders (as set forth in the succeeding paragraph) that have
delivered  Notices  and  Questionnaires  that  caused  the  Company to incur the
obligations set forth in Section 2(d) the  non-performance of which is the basis
of such Registration  Default.  In calculating the Liquidated  Damages Amount on
any date on which no Preferred  Stock is outstanding,  the Conversion  Price and
the Liquidated Damages Amount shall be calculated as if the Preferred Stock were
still outstanding.  Notwithstanding the foregoing,  no Liquidated Damages Amount
shall cumulate as to any Registrable  Security from and after the earlier of (x)
the date such security is no longer a Registrable Security and (y) expiration of
the  Effectiveness  Period.  The rate of accumulation of the Liquidated  Damages
Amount with respect to any period shall not exceed the rate provided for in this
paragraph  notwithstanding  the occurrence of multiple  concurrent  Registration
Defaults.

     The  Liquidated  Damages  Amount shall  cumulate  from the first day of the
applicable  Damages Accrual Period, and shall be payable in cash on each Damages
Payment  Date  during the  Damages  Accrual  Period to the Record  Holder of the
Registrable  Securities on the record date immediately  preceding the applicable
Damages Payment Date (and on the Damages Payment Date next succeeding the end of
the  Damages  Accrual  Period if the  Damages  Accrual  Period does not end on a
Damages Payment Date) to the Record Holders of the Registrable  Securities as of
the date that such Damages Accrual Period ends; PROVIDED, that, in the case of a
Registration  Default of the type described in clause (iii) or (iv) of the first
paragraph of this Section 2(e),  such  Liquidated  Damages  Amount shall be paid
only to the Holders  entitled  thereto pursuant to such first paragraph by check
mailed to the address  set forth in the Notice and  Questionnaire  delivered  by
such Holder.  Notwithstanding  the  foregoing,  the parties  agree that the sole
damages  payable for a violation of the terms of this  Agreement with respect to
which Special  Dividends or Liquidated  Damages Payments are expressly  provided
shall be such Special Dividends or Liquidated  Damages Payments,  as applicable.
Nothing  shall   preclude  any  Holder  from  pursuing  or  obtaining   specific
performance or other equitable relief with respect to this Agreement.

     All of the  Company's  obligations  set forth in this Section 2(e) that are
outstanding  with respect to any Registrable  Security at the time such security
ceases to be a  Registrable  Security  shall survive until such time as all such
obligations   with  respect  to  such  security  have  been  satisfied  in  full
(notwithstanding  termination of this Agreement pursuant to Section 8(k)) or, in
the case of Special  Dividends  payable on any shares of Preferred Stock,  until
such shares cease to be outstanding.

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

     Section 3.  REGISTRATION  PROCEDURES.  In connection with the  registration
obligations of the Company under Section 2 hereof, the Company shall:

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

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

          (c) As promptly as practicable give notice to the Notice Holders,  the
     Initial  Purchasers  and the  Special  Counsel,  (i) when  any  Prospectus,
     prospectus supplement,  Registration Statement or post-effective  amendment
     to a  Registration  Statement has been filed with the SEC and, with respect
     to a Registration Statement or any post-effective  amendment, when the same
     has  been  declared   effective,   (ii)  of  any  request,   following  the
     effectiveness  of  the  Initial  Shelf  Registration  Statement  under  the
     Securities  Act,  by the SEC or any  other  federal  or state  governmental
     authority for amendments or supplements  to any  Registration  Statement or
     related Prospectus or for additional information,  (iii) of the issuance by
     the SEC or any other  federal or state  governmental  authority of any stop
     order suspending the  effectiveness  of any  Registration  Statement or the
     initiation or threatening of any proceedings for that purpose,  (iv) of the
     receipt by the Company of any  notification  with respect to the suspension
     of  the  qualification  or  exemption  from  qualification  of  any  of the
     Registrable  Securities for sale in any  jurisdiction  or the initiation or
     threatening of any proceeding for such purpose,  (v) of the occurrence of a
     Material  Event  and  (vi)  of  the  determination  by the  Company  that a
     post-effective amendment to a Registration Statement will be filed with the
     SEC,  which  notice may, at the  discretion  of the Company (or as required
     pursuant to Section 3(i)),  state that it constitutes a Deferral Notice, in
     which event the provisions of Section 3(i) shall apply.

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

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

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

          (g) During the  Effectiveness  Period,  deliver to each Notice Holder,
     the Special Counsel, if any, and the Initial Purchasers, in connection with
     any sale of Registrable  Securities  pursuant to a Registration  Statement,
     without charge,  as many copies of the Prospectus or Prospectuses  relating
     to such Registrable Securities (including each preliminary  prospectus) and
     any  amendment or supplement  thereto as such Notice Holder may  reasonably
     request; to provide a "reasonable number" of copies thereof to the New York
     Stock Exchange as  contemplated  by Rule 153 under the Securities  Act; and
     the Company  hereby  consents  (except  during such periods that a Deferral
     Notice  is  outstanding  and  has  not  been  revoked)  to the  use of such
     Prospectus or each amendment or supplement thereto by each Notice Holder in
     connection with any offering and sale of the Registrable Securities covered
     by such Prospectus or any amendment or supplement thereto in the manner set
     forth therein.

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

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

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

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

     The Company  will use its  commercially  reasonable  best efforts to ensure
that the use of the  Prospectus  may be  resumed  (x) in the case of clause  (A)
above,  as promptly as is  practicable,  (y) in the case of clause (B) above, as
soon as, in the sole judgment of the Company, public disclosure of such Material
Event would not be  prejudicial  to or contrary to the  interests of the Company
or, if necessary to avoid unreasonable burden or expense, as soon as practicable
thereafter and (z) in the case of clause (C) above, as soon as in the reasonable
discretion of the Company, such suspension is no longer appropriate. The Company
shall be entitled to exercise  its right under this  Section 3(i) to suspend the
availability  of the Shelf  Registration  Statement or any  Prospectus,  without
incurring or accruing  any  obligation  to pay  liquidated  damages  pursuant to
Section  2(e),  no more than one (1) time in any three month period or three (3)
times  in any  twelve  month  period,  and any  such  period  during  which  the
availability of the Registration  Statement and any Prospectus is suspended (the
"DEFERRAL  PERIOD")  shall,  without  incurring any obligation to pay liquidated
damages  pursuant  to  Section  2(e),  not  exceed  30 days;  PROVIDED  that the
aggregate duration of any Deferral Periods shall not exceed 30 days in any three
month period or 90 days in any twelve (12) month period.

     (j) If requested in writing in connection with a disposition of Registrable
Securities pursuant to a Registration  Statement,  make reasonably available for
inspection  during  normal  business  hours by a  representative  for the Notice
Holders  of such  Registrable  Securities,  any  broker-dealers,  attorneys  and
accountants  retained by such Notice Holders,  and any attorneys or other agents
retained  by a  broker-dealer  engaged  by such  Notice  Holders,  all  relevant
financial and other records and pertinent  corporate documents and properties of
the Company and its subsidiaries,  and cause the appropriate officers, directors
and employees of the Company and its  subsidiaries to make reasonably  available
for inspection  during normal  business hours on reasonable  notice all relevant
information  reasonably requested by such representative for the Notice Holders,
or any such  broker-dealers,  attorneys or accountants  in connection  with such
disposition,   in  each  case  as  is  customary  for  similar  "DUE  DILIGENCE"
examinations;  PROVIDED  that such persons shall first agree in writing with the
Company that any information  that is reasonably and in good faith designated by
the  Company  in  writing  as  confidential  at the  time  of  delivery  of such
information  shall be kept confidential by such persons and shall be used solely
for  the  purposes  of  exercising  rights  under  this  Agreement,  unless  (i)
disclosure of such information is required by court or  administrative  order or
is necessary to respond to inquiries of regulatory authorities,  (ii) disclosure
of such  information is required by law  (including any disclosure  requirements
pursuant  to  federal  securities  laws in  connection  with the  filing  of any
Registration  Statement  or the  use  of  any  prospectus  referred  to in  this
Agreement),  (iii) such information  becomes  generally  available to the public
other  than as a result of a  disclosure  or failure  to  safeguard  by any such
person or (iv) such  information  becomes  available  to any such  person from a
source other than the Company and such source is not bound by a  confidentiality
agreement,  and PROVIDED  FURTHER that the foregoing  inspection and information
gathering  shall, to the greatest extent  possible,  be coordinated on behalf of
all the  Notice  Holders  and the other  parties  entitled  thereto  by  Special
Counsel.

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

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

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

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

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

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

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

     Section 6. INDEMNIFICATION.

     (a)  INDEMNIFICATION  BY THE COMPANY.  The Company shall indemnify and hold
harmless  each Notice  Holder and each  person,  if any, who controls any Notice
Holder (within the meaning of either Section 15 of the Securities Act or Section
20 of the Exchange Act) from and against any and all losses, claims, damages and
liabilities  (including,   without  limitation,  any  legal  or  other  expenses
reasonably  incurred in  connection  with  defending or  investigating  any such
action or claim)  (collectively,  "LOSSES")  caused by any untrue  statement  or
alleged  untrue  statement  of a material  fact  contained  in any  Registration
Statement or any amendment thereof, any preliminary prospectus or the Prospectus
(as amended or  supplemented  if the Company shall have furnished any amendments
or supplements  thereto), or caused by any omission or alleged omission to state
therein a material fact  required to be stated  therein or necessary to make the
statements therein in light of the circumstances  under which they were made not
misleading,  except  insofar  as such  Losses  are  caused  by any  such  untrue
statement  or  omission  or alleged  untrue  statement  or  omission  based upon
information relating to the Holders furnished to the Company in writing by or on
behalf of a Holder or any underwriter (in the case of an underwritten  offering)
expressly for use therein; PROVIDED that if any Losses arise out of or are based
upon an untrue statement, alleged untrue statement, omission or alleged omission
contained  in any  preliminary  prospectus  that  did not  appear  in the  final
prospectus, the Company shall not have any liability with respect thereto to any
Holder if any  Holder  delivered  a copy of the  preliminary  prospectus  to the
person  alleging  such  Losses  and  failed  to  deliver  a copy  of  the  final
prospectus,  as amended or supplemented if it has been amended or  supplemented,
to such  person  at or prior  to the  written  confirmation  of the sale to that
person.

     (b)  INDEMNIFICATION  BY HOLDERS.  Each  Holder  agrees  severally  and not
jointly to  indemnify  and hold  harmless  the  Company,  the  directors  of the
Company,  the officers of the Company who sign the Registration  Statement,  and
each person,  if any,  who  controls  the Company  (within the meaning of either
Section  15 of the  Securities  Act or  Section  20 of the  Exchange  Act)  each
underwriter and each person who controls any  underwriter  within the meaning of
the  Securities  Act (in the case of an  underwritten  offering),  and any other
Holder,  from and against all Losses  caused by any untrue  statement or alleged
untrue statement of a material fact contained in any  Registration  Statement or
any amendment thereof, any preliminary  prospectus or the Prospectus (as amended
or   supplemented  if  the  Company  shall  have  furnished  any  amendments  or
supplements thereto) caused by 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,  but only with  reference  to  information
relating to such Holder  furnished  to the Company in writing by or on behalf of
such Holder expressly for use in such  Registration  Statement,  any preliminary
prospectus, the Prospectus or any amendments or supplements thereto. In no event
shall the liability of any Holder hereunder be greater in amount than the dollar
amount of the proceeds  received by such Holder upon the sale of the Registrable
Securities   pursuant  to  the  Registration   Statement  giving  rise  to  such
indemnification obligation.

     (c)  CONDUCT  OF  INDEMNIFICATION   PROCEEDINGS.  In  case  any  proceeding
(including any  governmental  investigation)  shall be instituted  involving any
person in respect of which  indemnity may be sought  pursuant to Section 6(a) or
6(b) hereof,  such person (the  "INDEMNIFIED  PARTY") shall promptly  notify the
person against whom such indemnity may be sought (the  "INDEMNIFYING  PARTY") in
writing and the indemnifying party, upon request of the indemnified party, shall
retain counsel reasonably satisfactory to the indemnified party to represent the
indemnified  party and any others the  indemnifying  party may designate in such
proceeding and shall pay the fees and  disbursements  of such counsel related to
such proceeding.  In any such proceeding,  any indemnified  party shall have the
right to retain its own counsel, but the fees and expenses of such counsel shall
be at the expense of such indemnified  party unless (i) the  indemnifying  party
and the  indemnified  party shall have mutually  agreed to the retention of such
counsel  or (ii)  the  named  parties  to any  such  proceeding  (including  any
impleaded parties) include both the indemnifying party and the indemnified party
and  representation  of both parties by the same counsel would be  inappropriate
due to actual or potential  differing  interests  between them. It is understood
that the  indemnifying  party shall not, in respect of the legal expenses of any
indemnified  party in connection  with any proceeding or related  proceedings in
the same  jurisdiction,  be liable  for the fees and  expenses  of more than one
separate  firm (in  addition  to any  local  counsel)  for all  Holders  and all
persons,  if any, who control any Holder within the meaning of either Section 15
of the  Securities  Act or Section 20 of the  Exchange Act and (ii) the fees and
expenses of more than one separate  firm (in addition to any local  counsel) for
the Company, its directors, its officers who sign the Registration Statement and
each person,  if any, who controls the Company within the meaning of either such
Section,  and that all such fees and expenses  shall be  reimbursed  as they are
incurred. In the case of any such separate firm for the Holders and such control
persons of any Holders,  such firm shall be designated in writing by the Holders
of a majority  (with  Holders of Preferred  Stock deemed to be the Holders,  for
purposes of  determining  such  majority,  of the number of shares of Underlying
Common Stock into which such  Preferred  Stock are or would be convertible as of
the date on which  such  designation  is  made)  of the  Registrable  Securities
covered  by the  Registration  Statement  held by Holders  that are  indemnified
parties  pursuant to Section 6(a). In the case of any such separate firm for the
Company, and such directors,  officers and control persons of the Company,  such
firm shall be designated in writing by the Company. The indemnifying party shall
not be liable for any settlement of any proceeding  effected without its written
consent,  but if settled with such  consent or if there be a final  judgment for
the plaintiff,  the indemnifying party agrees to indemnify the indemnified party
from and against any loss or liability by reason of such settlement or judgment.
Notwithstanding  the foregoing  sentence,  if at any time an  indemnified  party
shall have requested an indemnifying  party to reimburse the  indemnified  party
for fees and  expenses  of  counsel  as  contemplated  by the  second  and third
sentences  of this  paragraph,  the  indemnifying  party agrees that it shall be
liable for any settlement of any proceeding effected without its written consent
if (i) such  settlement  is entered into more than 30 days after receipt by such
indemnifying  party of the aforesaid  request and (ii) such  indemnifying  party
shall not have reimbursed the indemnified  party in accordance with such request
prior to the date of such settlement.  No indemnifying party shall,  without the
prior written  consent of the  indemnified  party,  effect any settlement of any
pending or threatened proceeding in respect of which any indemnified party is or
could have been a party and indemnity  could have been sought  hereunder by such
indemnified party, unless such settlement  includes an unconditional  release of
such indemnified  party from all liability on claims that are the subject matter
of such proceeding.

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

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

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

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

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

     Section 8. MISCELLANEOUS.

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

     (b) AMENDMENTS AND WAIVERS. The provisions of this Agreement, including the
provisions of this sentence, may not be amended,  modified or supplemented,  and
waivers or consents to departures  from the provisions  hereof may not be given,
unless the Company has obtained the written  consent of Holders of a majority of
the then outstanding Underlying Common Stock constituting Registrable Securities
(with Holders of Preferred Stock deemed to be the Holders,  for purposes of this
Section,  of the number of  outstanding  shares of Underlying  Common Stock into
which such  Preferred  Stock is or would be  convertible as of the date on which
such consent is requested).  Notwithstanding the foregoing,  a waiver or consent
to depart  from the  provisions  hereof with  respect to a matter  that  relates
exclusively to the rights of Holders whose securities are being sold pursuant to
a  Registration  Statement and that does not directly or  indirectly  affect the
rights of other  Holders  may be given by Holders of at least a majority  of the
Registrable  Securities being sold by such Holders pursuant to such Registration
Statement;  PROVIDED,  that the  provisions of this sentence may not be amended,
modified,  or  supplemented  except in  accordance  with the  provisions  of the
immediately   preceding   sentence.   Each  Holder  of  Registrable   Securities
outstanding at the time of any such amendment, modification,  supplement, waiver
or consent or  thereafter  shall be bound by any such  amendment,  modification,
supplement, waiver or consent effected pursuant to this Section 8(b), whether or
not any notice,  writing or marking  indicating  such  amendment,  modification,
supplement,  waiver or  consent  appears  on the  Registrable  Securities  or is
delivered to such Holder.

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

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

          (ii) if to the Company, to:

                Kansas City Southern
                P.O. Box 219335
                Kansas City, Missouri 64121-9335
                Attention: Corporate Secretary's Office
                Telephone: (816) 983-1538

                with a copy to:
                Sonnenschein Nath & Rosenthal
                4250 Main Street, Suite 1100
                Kansas City, MO  64111
                Attention: John Marvin

          (iii) if to the Initial Purchasers, to:

                Morgan Stanley & Co. Incorporated
                Deutsche Bank Securities Inc.

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

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

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

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

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

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

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

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

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

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

<PAGE>

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

                              KANSAS CITY SOUTHERN

                              By  /S/ GERALD K. DAVIES
                                 ---------------------------------------------
                                   Name:  Gerald K. Davies
                                   Title:    Executive Vice President & COO

Confirmed and accepted as of
the date first above written:

MORGAN STANLEY & CO. INCORPORATED

By  /S/ KENNETH G. POTT
   ----------------------------------------
     Name:  Kenneth G. Pott
     Title:   Managing Director

DEUTSCHE BANK SECURITIES INC.

By  /S/ JAMES L. HAMILTON
   ----------------------------------------
     Name:  James L. Hamilton
     Title:   Managing DirectorEXHIBIT 10.7

                                  OFFICE LEASE

         THIS LEASE, made this 24th day of January, 2001, by and between Golden,
Hill Partnership (herein called "Landlord") and BSI2000 (herein called
"Tenant").

         1. LEASED PREMISES. Landlord hereby leases to Tenant, and Tenant hereby
leases from Landlord for the term, at the dental, and upon. all of the
conditions set forth herein, that certain real property situated in the County
of Jefferson, State of Colorado, commonly known as Suite B-410 at the Golden
Hill Office Centre at, 12600 W. Colfax Avenue Lakewood, Colorado 80215
containing 2,821 rentable square feet. Said leased property with all
improvements and appurtenances is herein called "the Demised Premises".

         2. TERM. The term of this Lease shall be for a period of three (3)
years, commencing on the 1st of February, 2001 or the date Landlord delivers
possession of the Demised Premises, and ending at 12:00 midnight on the 31rst
day of January, 2004, three years thereafter. Landlord will use its best efforts
to complete Preparation of the Demised Premises pursuant to the date the Term
commences.

         3. BASE RENT. In consideration of said demise, the Tenant agrees to pay
the Landlord as base rent for said Demised Premises for the full term aforesaid
the total sum of $152,334.00 payable as follows: $4,231.50 per month beginning
February 1, 2001 and each first thereafter. A deposit of $4,231.50 is required
upon execution of this lease.

         4. ADDITIONAL RENT.

         a. Operating Expenses. Tenant shall pay Landlord additional annual
rental equal to the amount by which the operating expenses for the Building
exceed year 2000 base year expenses per rentable square foot, multiplied by
Tenant's Proportionate Share of 1.14% which is the ratio of the rentable area of
the premises to the total rentable area in the Building.

         Operating expenses shall be defined as:

         (1) Taxes, assessments, and governmental charge whether Federal, State,
County or Municipal, which are levied on or charged against the real estate
where the Premises are located and any other taxes and assessments attributable
to said real estate or its operation excluding, however, federal and State
income taxes;

         (2) Reasonable insurance premiums attributable to the real estate of
which the leases Premises form a part;

         (3) All charges, for electricity, telephone, fuel, light or power, and
other such charges of a utility nature supplied to the property in which
Premises are located; and

         (4) All other operating costs which shall be deemed to include, but not
be limited to, any and all additional expenses which have not been specifically
enumerated hereinabove which

                                       1
<PAGE>

are incurred by Landlord .in connection with the maintenance, management,
operation and repair (as defined in paragraph 4A hereof) of the real estate of
which the Leased Premises are a part. `

         b. Such rental above shall be paid at monthly intervals, on the first
day of each month, upon receipt of a statement of estimated charges from
Landlord, which statement shall be furnished by Landlord at least annually.

         5. SECURITY DEPOSIT.

         a. Tenant has deposited with Landlord the sum of $4,231.50 to secure
the full and faithful performance of every provision of this Lease to be
performed by Tenant. If Tenant defaults with respect to any provision of this
Lease; including but not limited to the provisions relating to the payment of
rent, Landlord may use, apply or retain all or any part of this security deposit
for the payment of any rent or any other sum. in default, or for the payment of
any other amount which Landlord may spend or become obligated to spend by reason
of Tenant's default, or-to compensate Landlord for any other loss or damage
which Landlord may suffer bar reason of Tenant's default. If any portion of said
deposit `is so used or applied, Tenant shall within five (5) days after written
demand therefor deposit cash with Landlord in an amount sufficient to restore
the security deposit to its original amount, and Tenant's failure to do so shall
be a material breach of this Lease. Said deposit shall not be considered as
liquidated damages. If claims of Landlord exceed said deposit, Tenant shall
remain liable for the balance of such, claims. Landlord shall not be required to
keep this security deposit separate from its general funds, and Tenant shall not
be entitled to interest on such deposit.

         b. If Tenant shall fully and faithfully perform every provision of this
Lease to be performed by it, the security deposit or any balance thereof shall
be returned to Tenant (or, at Landlord's option, to the last assignee of
Tenant's interest hereunder) within sixty (60) days after the later of
expiration of the Lease term and Tenants vacation of the premises. In the event
of termination of Landlord's interest in this Lease, Landlord shall transfer the
deposit to Landlord's successor in interest, whereupon Tenant agrees to release
Landlord from liability for the return of such deposit or the accounting
therefore.

         c. As of the close of each calendar year, Landlord shall compute the
actual. Operating Expenses and Taxes of the Building for the previous
twelve-month period (if the Building has been operating for less than twelve
months, the cost of operating the Building for a year shall be determined by
dividing the actual Operating Expenses and Taxes by the number of days of actual
operating and multiplying by 365). Landlord shall deliver to Tenant notice of
such cost and the amount due (taking into account the base year expenses per
square foot annual allowance, if any, from Tenant no later than April 15 of the
year immediately subsequent to the year to which such costs relate. Tenant shall
reimburse Landlord within thirty-days after notice of any deficiency between
estimated Operating Expenses and Taxes paid and actual Operating Expenses and
Taxes incurred. In the event of over-payment by Tenant, the Landlord shall apply
the excess to the next successive installments of Rent due hereunder unless
there are no further rent payments due from Tenant, in which case Landlord shall
pay such excess to Tenant within thirty days of notice. Nothing in the previous
sentence shall require Landlord to apply or reimburse any part of the Base Rent.

                                       2
<PAGE>

         6. LATE CHARGES AND INTEREST. If the Tenant shall fail to pay any sum
provided herein within five (5) days of due date as stipulated herein, the
Tenant agrees to pay an additional sum of 10% for each monthly rental payment so
in default to defray the additional bookkeeping and collection costs, in
addition to the payment of any other costs incurred by the Landlord as provided
herein. All sums due to Landlord pursuant to this Lease shall accrue interest at
the rate of 12% per annum.

         7. SERVICES. The Landlord agrees, during the period of this Lease:

         a. to heat the Demised Premises whenever necessary during ,reasonable
business hours of customary heating season. To provide janitor and elevator
service, water and plumbing as determined by Landlord. To provide electricity
for all lighting and for miscellaneous office equipment and normal office
purposes required by Tenant, together with electric bulbs for lamps for lighting
the Demised Premises, which bulbs Landlord shall replace as necessary;

         b. In case Tenant requires electric energy for signs, or any equipment
not part of a normal office operation, such electricity shall be furnished by
Landlord, and the rental payable hereunder shall be increased by an amount
equivalent to the sum paid by the Landlord for such additional electricity.
Unless a flat rate can be mutually agreed upon between the parties hereto, the
additional rental shall be determined by measuring, through metering equipment
furnished and installed by the Tenant, the additional electricity so required by
Tenant and computing the cost thereof at the average rate charged Landlord for
electricity supplied to the building. In the event Tenant requires heating and
air conditioning during off hours, weekends and holidays. Landlord shall on
notice provide such services at a rate to be agreed upon in writing with the
Tenant prior to furnishing same.

         c. To cause public halls to be lighted during the time and the manner
customary in the building. Landlord shall not be liable for failure to supply
such heating, janitor, elevator, lighting or other services, or any of them,
when such failure is not due to gross negligence on its part, it being
understood hat Landlord reserves the right to temporarily discontinue such
services, or any of them, at such times as may be necessary by reason of
accident, repairs, alterations or improvements, or whenever, by reason of
strikes, lockouts, riots, acts of God, governmental regulations, or any other
happening, Landlord is unable to furnish such services.

         d. If any payment of rent as herein provided shall remain unpaid for
more than five days after the same shall become due, Landlord may, without
notice to Tenant, discontinue furnishing lighting, heating and janitor services,
until all arrears of rent shall have first been paid and discharged, and that
Landlord shall not be liable for damages, and that such action shall in no way
operate to release Tenant froze the obligations hereunder.

         8. BUILDING ACCESS. Landlord reserves the right to close and keep
locked all entrance and exit doors of the building on weekends, legal holidays
and on other days between the hours of 6:00 p.m. 8:00 a.m. and during such
further hours as Landlord may deem advisable for the adequate protection of said
building and the property of its tenants.

         9. PARKING. Tenant shall have the non-exclusive right to use in common
with Tenants within the building, their guests, invites and customers, 8,
including two covered,

                                       3
<PAGE>

passenger automobile parking space located in the parking lot adjacent to the
building in which the Demised Premises are located. The Landlord takes no
responsibility in policing, the parking lot but reserves the right to promulgate
such rules and regulations as it may deem necessary from time to time.

         10. CHARACTER OF OCCUPANCY. Tenant shall use and occupy the Demised
Premises in a careful, safe and proper manner, and only for the purpose of
general office use. Tenant will not use or permit the Demised Premises to be
used for any purposes prohibited by the laws of the United States or the State
of Colorado, or any of the ordinances of any city or county wherein the Demised
Premises are located. Tenant will not use or keep any substance or material in
or about the Demised Premises which nay violate or affect the validity of the
,insurance on said building or increase the hazard of the risk, or which may
prove offensive or annoying to other tenants of the building. Tenant will not
permit any nuisance to be committed in the Demised Premises. Tenant will pay on
demand for any damage to the Demised Premises caused by the misuse of same by
Tenant or his agents or employees.

         11. BUILDING FINISH ITEMS.

         a. Landlord will provide the following building standard finish to
Tenant:

                  (1) Directory. One building standard directory strip will be
provided by Landlord, along with hallway Suite sign.

                  (2) Window Coverings. Building standard blinds or drapes on
exterior windows.

                  (3) Air Conditioning. Landlord will provide building standard
hewing, ventilating and air conditioning system as well as a duct distribution
system. However, Tenant will be responsible for all construction costs
associated with changes to mechanical and electrical systems due to Tenant
requirements which exceed or differ from building standards, or from office as
is now existing.

                  (4) General. All of the items and finishes listed herein will
conform to standard building specifications, as to color, quality, and quantity.
In the event Tenant desires material of its choosing, different from .the office
as it now exists, or desires light fixtures, electrical outlets or telephone
outlets or any other items, not already in the `"office, the cost of the same
shall be borne by the Tenant. The cost of modifications of building standards
for any item shall include the cost of architectural and engineering and the
increased cost of construction.

                  (5) Fixtures. All improvements made to the Demised Premises
shall become a part of the property owned by the Landlord and be surrendered
upon the termination of, or the expiration of, the term of this Lease, in. good
condition, ordinary wear and tear excepted.

                  (6) Limitations. The Landlord shall not be called upon for any
future expenditures on, the Demised Premises during the term of' said Lease
except as is specifically provided in this Lease.

                                       4
<PAGE>

         b. Landlord shall advise Tenant, upon the execution of this Lease, of
the estimated cost of any items required by Tenant beyond the limitations set
forth above and the Tenant agrees to pay the Landlord 50% of the estimated costs
upon the execution of this Lease. Landlord hereby acknowledges receipt of
Tenant's share of such estimated costs in the sum of $-0-. Landlord may, within
sixty (60) days after Tenant's occupancy of the Demised Premises, render a final
itemized statement to the Tenant and a bill for the balance of amounts due.
Tenant agrees to pay in full, the balance of any such additional costs to the
Landlord within thirty (30) days of receipt of Landlord's bill and statement.

         c. The Landlord does not provide interior decorating services, and all
o(pound) such design work shall, be performed by others for the Tenant at the
Tenant's sole cost and expense. A11 such design work will be submitted to the
Landlord bar Tenant, and, subject to Landlord's approval thereof, be paid by
Tenant in accordance with part b. of this paragraph.

         12. AVAILABILITY OF PREMISES AND ACCEPTANCE. If for any reason the
Demised Premises shall not be ready or available for occupancy on the date
specified herein, this Lease shall nevertheless continue in full force and
effect and the Tenant shall have no right to rescind, cancel or terminate the
same. The Landlord shall not be liable for damages, if any, sustained by the
Tenant on account of failure to obtain possession at the date specified for
commencement of the term herein. In such event the rent for the Demised Premises
shall not commence until the Tenant is notified that Demised Premises are
available and ready for occupancy, and the date specified in the notification
shall be used for the beginning of the term of this Lease. The Tenant
acknowledges that he has examined the Demised Premises and appurtenances, and
the taking of possession of the Demised Premises by the Tenant shall be
conclusive evidence, as against the Tenant that the Demised Premises and
appurtenance were in good and satisfactory condition when possession of the same
were taken.

         13. MAINTENANCE. Tenant shall not employ any person or persons other
than the janitor of Landlord for the purpose of cleaning the Demised Premises
unless otherwise agreed by landlord. Except with the written consent of
Landlord, no person or persons other than those approved by Landlord shall be
permitted to enter the Building for the purpose of cleaning the same. Tenants
shall not cause any unnecessary labor by reason of Tenant's carelessness or
indifference in the preservation of good order and cleanliness. Landlord shall
in no way be responsible to any Tenant for any loss of property on the premises,
however occurring, or for any damage done to the effects of any Tenant by the
janitor or any other employee or any other person. Janitor service will be
provided by Landlord five (5) nights per week except for legal holidays and
shall include ordinary dusting and cleaning and shall not include cleaning of
carpets or rugs, except normal vacuuming, nor moving of furniture and other
special services. Janitor service will not be furnished on nights when rooms are
occupied after 6:00 p.m. The janitor may at all times keep a passkey and shall
be allowed admittance to the leased premises.

         14. ALTERATIONS.

         a. The Landlord, its agents and servants, shall have the right at any
time to enter the Demised Premises to examine and inspect the same, or to make
such repairs, additions or alterations as it may deem necessary or proper for
the safety, improvement or preservation

                                       5
<PAGE>

thereof, and shall at all times have the right, at its election, to make such
alterations or changes to other portions of said building as it may from time to
time deem necessary and desirable.

         b. Tenant shall male no alterations in, or additions to the Demised
Premises without first obtaining the written consent of Landlord. All additions
or improvements made by the Tenant (except only unattached office furniture,
fixtures and equipment) shall be deemed a part of the real estate and permanent
structure thereon and shall remain upon, and be surrendered with, said Demised
Premises at the end of the term, by lapse of time, or otherwise. Prior to Tenant
undertaking any alterations or additions to the Demised Premises, Tenant shall
post the appropriate notices, as required by Landlord, so as to exclude and/or
protect Landlord and/or the Building from the filing of any mechanic's liens.

         15. SUBLETTING. Tenant shall not sublet the Demised Premises, or any
part thereof, nor assign this Lease, or any interest therein, without the prior
written consent of the Landlord. Tenant shall not sublease to existing tenants
in the same building, unless the Demised Premises of that tenant is directly
adjacent to the Demised Premises.

         16. BREACH.

         a. Re-entry. If default be made by the Tenant in the " payment of rent,
or any part thereof, or if the Tenant shall fail to observe or perform any of
the conditions or agreements of this Lease, and such default shall continue for
a period of five days, then and in that event, and as often as the same may,
happen, it shall be lawful for the Landlord, at its election, with or without
legal proceedings, using such force as may be necessary and without notice, to
re-enter and take possession of the Demised Premises, including all
improvements, fixtures and equipment located at, in, or about the Demised
Premises and take, operate, or relet same, in whole or in part, for the account
of Lessee at such rental, on such conditions, and to such tenant(s) as Landlord
in good faith may deem proper. Landlord shall receive all proceeds and/or
rentals accruing from such operation or reletting and shall apply such proceeds
and/or rentals, first, to the payment of all costs and expenses incurred by
Landlord in obtaining possession and in the operation or reletting of the
Demised Premises, fixtures, or equipment, including, but not limited to,
reasonable attorney's fees, commissions, and collection fees, and any
alterations or repairs reasonably necessary to enable Landlord to operate or
relet the Demised Premises, fixtures, or equipment; and second, to the payment
of all such amounts due or becoming due from Tenant under the provisions of this
Lease.

         b. Insolvency. If Tenant shall be declared insolvent or bankrupt, or if
any assignment of Tenant's property shall be made for the benefit of creditors
or otherwise, or if Tenant's leasehold interest herein shall be levied upon
under execution, or seized by virtue of any writ of any Court of law, or a
Trustee in Bankruptcy or a Receiver be appointed for the property of Tenant
("involuntary breach"), whether under the operation of State or Federal
statutes, then and in any such case, Landlord may, at its option, immediately,
with, or without notice (notice being expressly waived), terminate this Lease
and immediately retake possession. of said premises, using such force as may be
necessary, without being guilty of any manner of trespass or forcible entry or
detainer, and without the same working any forfeiture of the obligations of
Tenant hereunder. In such event the Lessor shall be deemed to have a provable
claim in bankruptcy or receivership in an amount equal to: (1) the then-accrued
and unpaid rent,

                                       6
<PAGE>

plus (2) an amount equal to the sum of the last nine (9) monthly installments of
the rental provided for herein, which sum is fixed, not as a penalty, but as
liquidated damages by the parties hereto because the actual damages incurred by
Landlord as a result of the involuntary breach would be difficult to ascertain.

         c. Repossession or Reletting Not a Termination. Landlord's Right To
Terminate Not Forfeited. No re-entry, repossession, operation, or reletting of
the Demised Premises or the fixtures and equipment therein shall be construed as
an election by Landlord to terminate this Lease Agreement unless a" written
notice of such intention is given by Landlord to Tenant. Notwithstanding any
operation or reletting without terminating this Lease Agreement, Landlord may at
any time thereafter elect to terminate said Lease Agreement.

         d. Tenant's Obligation to Pay Deficiencies. In The event the proceeds
or rentals received by Landlord pursuant to this paragraph are insufficient to
pay all costs and expenses incurred by Landlord and all amounts due and becoming
due under this Lease Agreement, Tenant shall pay to Landlord, on demand, any
such deficiency as may froze time to time occur or exist.

         e. Landlord's Right to Perform Tenant's Duties at Tenant's Expense.
Notwithstanding any notice provisions contained in this Lease Agreement to the
contrary, if, in the judgment of Landlord, the continuance of any default by
Tenant, other than default in the payment of money, for the full notice period
otherwise provided herein will jeopardize the Demised Premises, the Building, or
the rights of Landlord or other tenants, Landlord may, without notice, elect to
perform or cure, at the expense of Tenant, those acts in respect of which Tenant
is in default and Tenant shall, within ten (10) days following receipt- of
written notice of same; reimburse Landlord for all costs and expenses incurred
by Landlord, together with interest thereon at the rate of eighteen percent
(18%) per annum until paid in full.

         f. Landlord's Right to Terminate Lease. In the event of Tenant's
default as provided in this paragraph, Landlord may, at its option, without
further notice, terminate this Lease Agreement, and may thereupon immediately
reenter and take possession of the Demised Premises.

         g. Landlord's Right on Termination to Recover Amount Equal to Rent
Reserved. If this Lease Agreement is terminated by Landlord on account of any
default by Tenant, Landlord shall be entitled to recover as damages from Tenant,
at the time of such termination, along with any and all other damages to which
it is entitled, the excess, if any, of the amount of rent provided herein for
the balance of the term hereof over the then reasonable rental value of the
Demised Premises for the same period. It is agreed that the "reasonable rental
value" shall be the amount of rental which Landlord can obtain as rent for the
remaining balance of the term.

         h. Landlord's Remedies Cumulative. Landlord shall have the right to
seek all remedies provided in this Lease Agreement and by the governing law.
Each and all of the remedies provided Landlord in this Lease Agreement or by law
shall be cumulative, and the exercise of one right or remedy by Landlord shall
not impair its right to exercise any other right or remedy.

                                       7
<PAGE>

         i. Tenant's Waiver of Claims Against Landlord. Tenant hereby waives all
claim or demand for damages that may be caused by Landlord's re-entering and
taking possession of the Demised Premises as provided in this paragraph,
including, but not limited to, damages resulting from the destruction of, or
damage, to, the Demised Premises and damages resulting from loss or injury to
property in or on the Demised Premises at the time of such reentry, belonging to
Tenant or any other person, firm or corporation.

         17. SURRENDER OF POSSESSION. The Tenant shall deliver up and surrender
to the Landlord possession of the Demised Premises at the expiration or
termination of this Lease, by lapse of time oar otherwise, in as good repair as
when the Tenant obtained the same at the commencement of said term, excepting
only ordinary wear and tear, or damage by the elements, (occurring without the
fault of the Tenant or other persons permitted by the Tenant to occupy or enter
the Demised Premises or any part thereof), or by act of God, or by insurrection,
riot, invasion or commotion, or of military or usurped power.

         18. PAYMENTS AFTER TERMINATION. No payments of money by the Tenant to
the Landlord, after the giving of notice of termination or demand for possession
by the Landlord to the Tenant, shall reinstate, continue or extend the tern of
this Lease or affect any notice given to the Tenant prior to the payment of such
money, it being agreed that after the service of notice or the commencement of a
suit or after judgment granting the Landlord possession of said premises, the
Landlord may receive and collect any sums of rent due, or any other sums of
money due under the terms of this Lease, and the payment of such sums of money,
whether as rent or otherwise, shall not waive said notice, or in any manner
affect any pending suit or any judgment theretofore obtained.

         19. HOLDING AFTER TERMINATION. If the Tenant retains possession of the
Demised Premises, or any part thereof, after the termination of this Lease by
lapse of time or otherwise, the Tenant shall pay to the Landlord rent at 1.5
times the rate of rental specified in this Lease for the time the Tenant thus
remains in possession. If the Tenant remains in possession of the Demised
Premises, or any part thereof, after the termination of the term by lapse of
time or otherwise, the Landlord may terminate the tenancy immediately and
without notice. The provisions of this Article do not waive the Landlord's right
of re-entry or any other right under this Lease.

         20. REMOVAL OF TENANT'S PROPERTY. If the Tenant shall fail to remove
all personal property from the Demised Premises upon the abandonment' or upon
the termination of the Lease for any cause whatsoever, the Landlord, at its
option, may remove the same in any manner that it shall choose, and store the
personal property without liability to the Tenant for loss thereof. Tenant
agrees to pay the Landlord on demand any and all expenses incurred in, such
removal, including court costs and attorney's fees and storage charges on such
property for any length of time the same shall be in the Landlord's possession.
The Landlord, at its option, without notice, may sell said property, or any of
the same, at private sale and without legal process, for such prices as the
Landlord may obtain, and apply the proceeds of such sale upon any amounts due
under this Lease from the Tenant to the Landlord and upon the expense incident
to the removal and sale of said effects, rendering the surplus, if any, to the
Tenant.

                                       8
<PAGE>

         21. LOSS OR DAMAGE TO TENANT'S PROPERTY. All personal property of any
kind or description whatsoever in the Demised Premises shall be at the Tenant's
sole risk, and the Landlord shall not be held liable for any damage done to or
loss of such personal property, or for damage or loss suffered by the business
or occupation of the Tenant arising from any act or neglect of cotenants or
other occupants of the building, or of their employees or the employees of the
Landlord or of other persons, or :from bursting, overflowing or leaking of
water, sewer or steam pipes, or from heating or plumbing fixtures, or from
electric wires, or from gases, or odors, or other causes in any other manner
whatsoever, except in the case of willful neglect, on the part of the Landlord.

         22. FIRE OR OTHER CASUALTY.

         a. In the event of minor damage to the Premises by fire or other cause
which renders the premises untenantable in part but Tenant is able to conduct
its business therein, and Tenant continues to occupy them in part, the rent
shall be apportioned and reduced from the date the damage occurs in the
proportion that the unoccupied portion of the Premises bears to the entire
Premises until the damage has been repaired.

         b. In the event of substantial, damage (including destruction) to the
Premises by fire or any other cause which renders the Premises untenantable in
whole or in such part that it is impractical for Tenant to conduct its business
therein, the rent shall wholly abate and be apportioned from the date the damage
occurs until the damage has been repaired.

         c. In the event of either minor or substantial damages, unless this
Lease is terminated as hereafter provided in Paragraph 0 hereof, Landlord shall
commence within ten (10) days after the date the damage occurs (or within ten
(10) days after receipt of such notice is given) to repair the Premises to the
condition in which they were immediately prior to such damage, and Landlord
shall complete, such repair with due diligence and dispatch. If the damage is
not repaired within a reasonable time or in any event within sixty (60) days
from the date the damage occurs in the case of minor, damage and one hundred
twenty (120) days from the date the damage occurs in the case of substantial
damage, Tenant shall have the right to terminate this Lease by giving Landlord
written notice (served no later than thirty (30) days after such right to cancel
and terminate arises) of termination. Tenant may terminate this Lease
immediately in the event that the damage cannot be repaired within one hundred
twenty (120) days and Tenant provides to Landlord the written opinion of a
registered professional engineer so stating.

         d. In the event the Premises are damaged at any time by fire or any
other cause to the extent of fifty percent (50%) or more of the replacement
value thereof as of the date such damage occurs, this Lease may be terminated at
the election of Landlord by giving notice in writing of such election to Tenant
within twenty (20) days from the date the damage occurs. Upon such termination,
any unearned rent or other payments and deposits paid in advance beyond the date
of the damage shall immediately be refunded to Tenant, and the Security
instrument shall be returned to Tenant.

                                       9
<PAGE>

         23. INSURANCE.

         a. Property. Tenant shall procure and maintain at all times during the
term of this Lease at its own cost, primary insurance coverage for all of
Tenant's leasehold improvements and personal property in or about the Demised
Premises, in an amount not less than ninety percent (90%) of the replacement
cost thereof, including broad form fire and extended casualty coverage,
sprinkler leakage, vandalism and malicious mischief. The policy or policies
shall name Landlord as an additional insured. Landlord shall be entitled to
recover thereunder for any loss occasioned to Landlord by reason of Tenant's
negligence. Any proceeds shall be first used for the repair or replacement of
leasehold improvements damaged or destroyed during the term of this Lease. Each
party for its insurers hereby waives all claims of subrogation, if any, such
insurer has against the other party so long as both parties can grant such
waivers under its insurance policies without payment of additional premiums.

         b. Liability. Tenant shall procure and maintain at its cost public
liability insurance in amounts not less than $300,000.00 per person and
$500,000.00 per occurrence for personal injury, not less than $100,000.00 for
property damage coverage and worker's compensation insurance as required by law
to protect Tenant's employees.

         c. Certificates. Tenant shall deliver certificates evidencing all
insurance to Landlord before taking possession of the Demised Premises and not
less than ten (10) days before the expiration of any certificate previously
delivered.

         24. INDEMNIFICATION. Tenant shall defend, indemnify and hold Landlord,
its employees and agents harmless from and against any and all claims, demands,
causes of action, damages, liabilities, judgments, and reasonable attorney fees
arising from: (i) any injury to or death of or damage to any person or property
sustained or incurring in, on or about the Demised Premises, unless due to the
gross negligence of Landlord, its agents or employees; (ii) any act, omission or
negligence of Tenant's concessionaires, licensees, customers, invitees or
guests; and (iii) any breach or default in the performance or observance of any
obligation on Tenant's part to be performed or observed under this Lease. In the
event any action or proceeding is brought against Landlord, its employees or
agents by reason of any such claim, Tenant, upon notice from Landlord, shall
defend such action or proceeding at Tenant's expense by counsel reasonably
satisfactory to Landlord (but Landlord shall accept counsel provided by Tenant's
insurance company defending such a claim).

         25. CONDEMNATION. In the event the Demised Premises, or any part
thereof, shall be taken and condemned for public purposes by the proper
authorities, then and in that event the rental shall be adjusted in a fair and
appropriate manner depending upon the portion of the Demised Premises so taken.
Otherwise, insofar as the remainder of the Demised Premises is concerned, the
said Lease shall remain in full force and effect, at the option of the Landlord.
It is further agreed that in the event of condemnation proceedings, the Tenant
shall have no claim against the Landlord other than the adjustment of rent as
hereinbefore mentioned, and any award made shall be the sole property of the
Landlord.

         26. ENCUMBRANCES. This Lease is subject and subordinate to the lien of
any trust deeds or mortgages which now are, or at any time may be made a lien
upon the Demised

                                       10
<PAGE>

Premises, or the building in which the Demised Premises are situate. The Tenant
agrees to execute and deliver upon request such further instrument or
instruments subordinating this Lease to the lien of any such trust deeds or
mortgages as shall be desired by any mortgagee or proposed mortgagee. The Tenant
hereby appoints the Landlord his attorney-in-fact irrevocably, to execute,
acknowledge and deliver any such instrument or instruments for the Tenant, as
the Landlord may deem necessary. Further, this Lease shall not take effect until
approved by the beneficiary of any such mortgage or deed of trust.

         27. NOTICES. Any notice by the Landlord to the Tenant shall be deemed
to be duly given, if in writing and hand delivered to the Tenant in person, by
handing said notice to anyone at the Demised Premises, or posted on the Demised
Premises, or sent by registered or certified mail, in a prepaid envelope
addressed to the Tenant at the address of the Demised Premises. Any notice by
the Tenant to the Landlord shall be in writing and deemed to be duly given if
mailed by registered or certified mail, return receipt requested in a prepaid
envelope addressed to Landlord at 12600 West Colfax Avenue, Suite B-130,
Lakewood, Colorado 80215.

         28. ATTORNEYS FEES AND COSTS. The Tenant shall pay all attorney's fees
and expenses of the Landlord incurred to enforce any of the obligations of the
Tenant under this Lease, or in any litigation involving Tenant or in any
litigation or negotiation, in which the Landlord shall, without its fault,
become involved, through, or on account of, the Tenant, his guests, servants or
employees.

         29. NOTICE OF TERMINATION. In consideration of the rate of rental as
provided herein, at least one hundred twenty (120) days prior to the expiration
of the terms hereof, the Tenant shall give written notice to the Landlord of his
intention to surrender possession and vacate the Demised Premises during the
final sixty (60) day period of this Lease. Nothing herein, contained, shall be
deemed to require Landlord to extend the terms of this Lease with Tenant or to
enter into a new Lease with Tenant unless mutually agreed-upon terms are
negotiated and evidenced by a written document signed by all parties hereto.

         30. RULES AND REGULATIONS. The rules and regulations attached hereto
shall be, and are hereby, made a part of this Lease. The Tenant agrees that his
employees and agents, and any others permitted by the Tenant to occupy or enter
said premises, will at all times abide by said rules. A default in the
performance and observance thereof shall constitute a default under this Lease.
Said rules and regulations may be amended from time to time by Landlord and
shall be binding upon Tenant upon Tenant receiving notice of the same.

         31. WAIVER. No waiver of any breach of any one or more of the
conditions or covenants of this Lease by the Landlord shall be deemed to imply
or constitute a waiver of any succeeding or other breach hereunder.

         32. AMENDMENT OR MODIFICATION. The Tenant acknowledges and agrees that
he has not relied upon any statements, representations, agreements or
warranties, except such as are expressed herein, and that no amendment or
modification of this Lease shall be valid or binding unless expressed in writing
and executed by the parties hereto in the same manner as the execution of this
Lease.

                                       11
<PAGE>

         33. SALE BY LANDLORD. In the event of a sale, conveyance or other
transfer of Landlord's interest in the Building containing the Demised Premises,
the same shall operate to release Landlord from any further liability upon all
of the covenants or conditions, expressed or implied herein contained in favor
of Tenant. In such event, Tenant agrees to look solely to the responsibility of
the successor in interest of Landlord in and to this Lease. This Lease shall not
be affected by any such sale, and the Tenant agrees to attorn to the purchaser
or assignee, and execute any instrument requested to confirm such attornment.

         34. RELOCATION. If the Demised Premises are less than 3,000 rentable
square feet, Tenant agrees that Landlord may relocate Tenant to comparable
space, agreed by both parties, in the Building containing at least the same
amount of rentable space as is contained in the Demised Premises, provided that
the rent is not increased above the amount payable hereunder and the costs of
relocating Tenant, including the cost of altering the new space to make it
comparable to the Demised Premises, is borne by Landlord.

         35. PERSONAL PROPERTY TAXES. Tenant shall pay, before delinquent, all
taxes and charges levied, assessed, or imposed on Tenant's fixtures, equipment
and all other personal property in and on the Demised Premises, whether or not
affixed to the Real Property. Failure by Tenant to comply with this paragraph
shall, be, at Landlord's option, a breach of this Lease.

         36. HEADINGS. The paragraph headings set forth herein aye designed only
to facilitate examination hereof, and are not controlling as to, nor are they
limitations upon, the contents of the respective paragraphs.

         37. APPLICABLE LAW. This agreement has been, executed in the state of
Colorado and shall be governed by the laws thereof.

         38. NUMBER AND GENDER. Unless the context otherwise requires, words
denoting the singular may be construed as denoting the plural, words denoting
the plural may be construed as denoting the singular, and words of one gender
may be construed as denoting another gender, as is appropriate.

         39. SUCCESSORS. This Agreement shall be binding upon and inure to the
benefit of the heirs, personal representatives, successors and assigns of the
parties.

         40. TENANT FINISH. The above reflects the space as it is. Tenant has
been in the space as a subtenant for some time.

         41. FINANCIALS. The above is subject to Landlord receiving and
approving the full set of financial statements on BSI2000 and confirmation of
the funds being invested in the company in the amount exceeding one million
dollars.

         Notwithstanding any provision to the contrary herein set forth, unless
this Lease is executed by the Tenant herein above named and returned to Propp
Realty, Inc. on or before the 26th day of January, 2001, then this Lease shall
be null and void and have no binding effect.

                                       12
<PAGE>

         EXECUTED this 24th day of January, 2001.

                                    LANDLORD:

                                    By:      Daryll Propp
                                             ----------------------------------
                                    Name:    Daryll Propp
                                             ----------------------------------
                                    Title:   Agent
                                             ----------------------------------

                                    TENANT:

                                     By:      /s/ [Illegible Signature]
                                             ----------------------------------
                                     Personally By:   /s/ BSI2000, Inc.
                                                    ---------------------------
                                     Date:             /s/ 26 January 2001
                                                    ---------------------------

                                       13
<PAGE>

                              RULES AND REGULATIONS

         1. The sidewalks, entries, passages, stairways shall not be obstructed
by the Tenant, or its agents, or used by them for any purpose other than ingress
and egress to and from their offices.

         2. a. Furniture, equipment or supplies shall be moved or out of the
building only during such hours and in such manner as may be prescribed by the
Landlord.

            b. No safe or article, the weight of which may constitute a hazard
to the building or the equipment, shall be moved into the Demised Premises. The
Landlord shall have the right to designate the location of such articles in the
Demised Premises.

         3. The name of the Tenant shall not be placed upon any part of the
building except upon the hall suite sign of the Demised Premises and then only
by such persons and of such size, form and color, as shall be first specified by
the Landlord.

         4. Plumbing fixtures shall not be used for any purpose other than that
for which the same are intended, and any damage resulting to the same from
misuse on the part of the Tenant, its agents or employees, shall be paid for by
the Tenant. No person shall waste water by tying back or wedging the faucets, or
in any other manner.

         5. No animals shall be allowed in the offices, halls or corridors in
the building,

         6. Bicycles or other vehicles shall not be permitted in the offices,
halls or corridors in the building, nor shall any obstruction of sidewalks or
entrances of the building be permitted.

         7. No person shall disturb the occupants of this or adjoining buildings
or Demised Premises by the use of any television, radio or musical instrument or
by the making of loud or improper noises.

         8. The Tenant shall not allow anything to be placed on the outside
window ledges of the building, nor shall anything be thrown by the Tenant, its
agents or employees, out of the windows or doors, or down the courts or
skylights of the building.

         9. No additional lock or locks shall be placed by the Tenant on any
door in the building unless written consent of the Landlord shall first have
been obtained. A reasonable number of keys to the Demised Premises and to the
toilet rooms will be furnished by the Landlord, and neither the Tenant, the
agents or employees, shall have any duplicate key made. At the termination of
this tenancy, the Tenant shall promptly return to the Landlord all keys to
offices, toilet rooms or vaults.

         10. No awnings shall be placed over the windows.

                                       A-1

<PAGE>

         11. The Tenant, before closing and leaving the Demised Premises at any
time, shall close all operable windows in order to avoid possible damage from
fire, storm, freezing or the elements.

         12. The use of oil, gas or inflammable liquids for heating, lighting or
any other purpose is expressly prohibited. Explosives or other articles deemed
extra hazardous shall not be brought into the building.

         13. The Tenant shall not mark upon, paint signs upon, cut drill into,
or in any way deface the walls, ceiling, partitions or floors of the Demised
Premises or of the building, and any defacement, damage or injury caused by the
Tenant, its agents or employees, shall be paid for by the Tenant.

         14. The Landlord shall at all times have the right, by its officers or
agents, to enter the Demised Premises to inspect and examine the same and to
show the same to persons wishing to Lease, purchase or mortgage.

         15. The Landlord reserves the right to make such other and further
reasonable rules and regulations as in its judgment may from time to time be
needful and desirable for the safety, care and cleanliness of the Demised
Premises and for the preservation of good order therein.

         16. Tenant agrees to furnish at its cost and use chair pads under all
chairs and stools in the carpeted areas of the building throughout the term of
this Lease unless the prior written consent of Landlord is obtained.

Attachment

                                      A-2

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