Document:

Exhibit 10.5

                                                               Execution Version

                             INTERCREDITOR AGREEMENT
                             -----------------------

            INTERCREDITOR  AGREEMENT (this  "Agreement") dated as of January 10,
2008,  by and  between  the First  Lien  Administrative  Agent,  the First  Lien
Collateral Agent and the Second Lien Agent (each as defined below).

                                    RECITALS:

            WHEREAS,  GoAmerica, Inc., a Delaware corporation (together with its
successors and assigns, including any receiver, trustee or debtor-in-possession,
the  "Borrower"),   the  Lenders  (as  defined  therein)  (together  with  their
successors and assigns,  the "First Lien Lenders"),  Churchill Financial LLC, as
administrative  agent, and Ableco Finance LLC, as collateral  agent, are parties
to a Credit  Agreement  dated as of January 10,  2008 (as  amended or  otherwise
modified from time to time in accordance with the terms of this  Agreement,  the
"Initial First Lien Loan  Agreement"),  pursuant to which the First Lien Lenders
have  made and will from time to time make  loans and  provide  other  financial
accommodations to the Borrower;

            WHEREAS,  the Borrower,  the Lenders (as defined therein)  (together
with their  successors  and assigns,  the "Second Lien  Lenders")  and Clearlake
Capital  Group,  L.P., as agent,  are parties to a Second Lien Credit  Agreement
dated as of January 10, 2008 (as amended or otherwise modified from time to time
in accordance  with the terms of this  Agreement,  the "Initial Second Lien Loan
Agreement") pursuant to which the Second Lien Lenders have made certain loans to
the Borrower;

            WHEREAS,  the  Borrower and the other  Obligors (as defined  herein)
have granted to the First Lien  Collateral  Agent,  for the benefit of the First
Lien Creditors (as defined  below),  a Lien (as defined below) on  substantially
all of their assets and properties,  all as more  particularly  described in the
First Lien Documents (as defined below);

            WHEREAS,  the  Borrower and the other  Obligors  have granted to the
Second Lien Agent,  for the  benefit of the Second  Lien  Creditors  (as defined
below), a Lien on substantially all of their assets and properties,  all as more
particularly described in the Second Lien Documents (as defined below);

            WHEREAS,  the  Second  Lien  Agent,  on  behalf of the  Second  Lien
Creditors,  and the First Lien  Agents,  on behalf of the First Lien  Creditors,
wish to set forth their agreement as to certain of their  respective  rights and
obligations with respect to the Collateral and their  understanding  relative to
their respective positions in the Collateral; and

            NOW,  THEREFORE,  in  consideration  of the  premises and the mutual
covenants herein contained, the parties hereto agree as follows:

      Section 1. Definitions.

      1.1 General Terms.  As used in this  Agreement,  the following terms shall
have the respective  meanings  indicated  below,  such meanings to be applicable
equally to both the singular and the plural forms of the terms defined:

<PAGE>

            "Agent"  means the First Lien Agents or the Second  Lien  Agent,  as
applicable.

            "Agent's Notice" shall have the meaning set forth in Section 5.1.

            "Agreement" shall have the meaning set forth in the preamble hereof.

            "Bankruptcy  Code"  means the  provisions  of Title 11 of the United
States Code, 11 U.S.C. ss.ss.101 et seq.

            "Bankruptcy  Law" means the  Bankruptcy  Code and any other federal,
state or foreign bankruptcy, insolvency, receivership or similar law.

            "Borrower" shall have the meaning set forth in the recitals hereof.

            "Business  Day" means any day of the year that is not a Saturday,  a
Sunday or a day on which banks are required or  authorized  to close in New York
City.

            "Collateral" means all assets and properties of any kind whatsoever,
real or personal,  tangible or intangible and wherever located,  of any Obligor,
whether now owned or hereafter acquired,  upon which a Lien (including,  without
limitation,  any Liens granted in any Insolvency Proceeding) is now or hereafter
granted  or  purported  to be  granted  by such  Person  in favor  of a  Secured
Creditor, as security for all or any part of the Obligations.

            "Debt  Action"  means (a) the  filing of a  lawsuit  by any  Secured
Creditor solely to collect the Obligations owed to such Secured Creditor and not
to exercise their secured  creditor  remedies in respect of the collateral,  (b)
the demand by any Secured Creditor for accelerated payment of any and all of the
Obligations owed to such Secured Creditor, (c) the filing of any notice of claim
and the  voting of any such  claim in any  Insolvency  Proceeding  involving  an
Obligor,  (d) the filing of any motion in any Insolvency  Proceeding  consistent
with the term of this Agreement, (e) the filing of any defensive pleading in any
Insolvency  Proceeding  consistent  with the terms of this  Agreement or (f) the
filing of any pleadings,  objections,  motions or agreements which assert rights
or interests  available to unsecured creditors of the Obligors arising under any
Insolvency Proceeding or applicable non-bankruptcy law.

            "DIP Financing" shall have the meaning set forth in Section 6.2.

            "DIP Liens" shall have the meaning set forth in Section 6.2.

            "Disposition"  means any sale,  lease,  exchange,  transfer or other
disposition, and "Dispose" and "Disposed of" shall have correlative meanings.

            "Documents"  means the First  Lien  Documents  and the  Second  Lien
Documents, or any of them.

            "Enforcement Action" means (a) any action by any Secured Creditor to
foreclose  on the Lien of such Person in any  Collateral,  (b) any action by any
Secured Creditor to take possession of, or sell or otherwise realize upon, or to
exercise any other rights or remedies with respect to, any Collateral, including
any Disposition after the occurrence of an Event of

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<PAGE>

Default of any Collateral by an Obligor with the consent of, or at the direction
of, a  Secured  Creditor,  (c) the  taking  of any  other  actions  by a Secured
Creditor  against any Collateral,  including the taking of control or possession
of, or the  exercise  of any right of setoff  with  respect  to, any  Collateral
and/or (d) the commencement by any Secured Creditor of any legal  proceedings or
actions against or with respect to any Obligor or any of such Obligor's property
or assets or any  Collateral  to  facilitate  any of the  actions  described  in
clauses (a), (b) and (c) above,  including the  commencement  of any  Insolvency
Proceeding; provided that this definition shall not include any Debt Action.

            "Event of Default" means each "Event of Default" or similar term, as
such term is defined in any First Lien Document or any Second Lien Document.

            "Final  Order" means an order of the  Bankruptcy  Court or any other
court of  competent  jurisdiction  as to which the time to appeal,  petition for
certiorari,  or move for  reargument or rehearing has expired and as to which no
appeal,  petition  for  certiorari,  or  other  proceedings  for  reargument  or
rehearing  shall  then be  pending,  or, in the event  that an  appeal,  writ of
certiorari,  or reargument or rehearing  thereof has been filed or sought,  such
order of the  Bankruptcy  Court or other court of competent  jurisdiction  shall
have been  affirmed by the highest  court to which such order was  appealed,  or
from which certiorari,  reargument or rehearing was sought, and the time to take
any further appeal,  petition for certiorari or move for reargument or rehearing
shall have expired; provided that the possibility that a motion under Rule 59 or
Rule 60 of the Federal Rules of Civil  Procedure or any analogous rule under the
Federal Rules of Bankruptcy  Procedure or applicable  state court rules of civil
procedure,  may be filed with  respect to such order  shall not cause such order
not to be a Final Order.

            "First Lien  Administrative  Agent" means Churchill Financial LLC in
its  capacity as  administrative  agent for the First Lien  Creditors  under the
First Lien Documents, and its successors and assigns in such capacity (including
one or more other agents or similar contractual  representatives for one or more
lenders that at any time succeeds to or refinances,  replaces or substitutes for
any or all of the First Lien Obligations at any time and from time to time).

            "First Lien Agents"  means the First Lien  Administrative  Agent and
the First Lien Collateral Agent, collectively.

            "First Lien  Avoidance"  shall have the meaning set forth in Section
6.4.

            "First  Lien  Collateral  Agent"  means  Ableco  Finance  LLC in its
capacity as collateral  agent for the First Lien Creditors  under the First Lien
Documents,  and its  successors  and assigns in such capacity  (including one or
more other agents or similar contractual representatives for one or more lenders
that at any time succeeds to or refinances,  replaces or substitutes  for any or
all of the First Lien Obligations at any time and from time to time).

            "First Lien Creditors"  means the First Lien Agents,  the First Lien
Lenders and the other Persons from time to time holding First Lien Obligations.

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<PAGE>

            "First  Lien  Deficiency"  means  any  portion  of  the  First  Lien
Obligations consisting of an allowed unsecured claim under Section 506(a) of the
Bankruptcy  Code (or any similar  provision  under any other  Bankruptcy Law) as
determined by a Final Order.

            "First Lien Documents" means the First Lien Loan Agreement, all Loan
Documents  (as such term is defined in the First  Lien Loan  Agreement)  and all
other  agreements,  documents  and  instruments  at  any  time  executed  and/or
delivered by any Obligor or any other  Person with,  to or in favor of the First
Lien  Agents or any First  Lien  Creditor  in  connection  therewith  or related
thereto,  including such documents  evidencing  successive  Refinancings  of the
First  Lien  Obligations,  in each  case,  as  amended,  amended  and  restated,
supplemented,  modified,  replaced,  substituted or renewed from time to time in
accordance with the terms of this Agreement.

            "First  Lien  Lenders"  shall  have  the  meaning  set  forth in the
recitals hereto.

            "First  Lien  Letter of Credit  Obligations"  means all  outstanding
obligations incurred by or owing to the First Lien Creditors,  whether direct or
indirect,  contingent  or  otherwise,  due or not due,  in  connection  with the
issuance  of  letters  of credit by a First  Lien  Creditor  or  another  issuer
pursuant to the First Lien  Documents  or the purchase of a  participation  with
respect  to any such  letter  of  credit,  including  any  unpaid  reimbursement
obligations in respect  thereof.  The amount of such First Lien Letter of Credit
Obligations  shall equal the maximum  amount that may be payable at such time or
at any time  thereafter by or to the First Lien Creditors  thereupon or pursuant
thereto.

            "First Lien Loan  Agreement"  means (a) the Initial  First Lien Loan
Agreement  and (b) each loan or  credit  agreement  evidencing  any  initial  or
subsequent replacement, substitution, renewal, or Refinancing of the Obligations
under the Initial First Lien Loan  Agreement,  in each case only as the same may
from time to time be amended,  amended  and  restated,  supplemented,  modified,
replaced,  substituted,  renewed or Refinanced  in accordance  with the terms of
this Agreement.

            "First Lien Loans" means any loans or advances outstanding under the
First Lien Documents.

            "First Lien  Obligations"  means all  obligations,  liabilities  and
indebtedness of every kind,  nature and description  owing by one or more of the
Obligors  to one or more of the First  Lien  Creditors  evidenced  by or arising
under one or more of the First Lien  Documents  (including any First Lien Loans,
First Lien Letter of Credit Obligations and Hedging Obligations), whether direct
or indirect,  absolute or contingent,  joint or several, due or not due, primary
or  secondary,  liquidated  or  unliquidated,   including  principal,  interest,
charges, fees, costs, indemnities and expenses, however evidenced (including any
costs,  expenses or other amounts  incurred or advanced in  connection  with any
Enforcement  Action  or  Release  Event),  and  whether  as  principal,  surety,
endorser,  guarantor or  otherwise,  whether now existing or hereafter  arising,
whether arising  before,  during or after the initial or any renewal term of the
First  Lien Loan  Agreement  and  whether  arising  before,  during or after the
commencement  of any  Insolvency  Proceeding  with respect to one or more of the
Obligors (and  including the payment of any  principal,  interest,  fees,  cost,
expenses and other amounts  (including default rate interest)

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<PAGE>

which would accrue and become due but for the  commencement  of such  Insolvency
Proceeding  whether or not such  amounts are allowed or allowable in whole or in
part in any such Insolvency Proceeding).

            "First  Lien  Secured  Claims"  means any  portion of the First Lien
Obligations not constituting a First Lien Deficiency.

            "First Lien Termination Date" means the date on which all First Lien
Obligations have been Paid in Full.

            "Hedging Obligations" means all obligations of any Obligor under and
in respect of any Secured Hedging  Agreement (or any similar or equivalent term)
under and as defined in the First Lien Loan Agreement.

            "Initial First Lien Loan Agreement" shall have the meaning set forth
in the recitals hereto.

            "Initial  Second  Lien Loan  Agreement"  shall have the  meaning set
forth in the recitals hereto.

            "Insolvency  Proceeding"  means,  as to  any  Obligor,  any  of  the
following:  (a) any case or  proceeding  with  respect to such Person  under the
Bankruptcy  Code  or  any  other  federal  or  state   bankruptcy,   insolvency,
reorganization or other law affecting  creditors' rights or any other or similar
proceedings  seeking  any  stay,  reorganization,  arrangement,  composition  or
readjustment  of the  obligations  and  indebtedness  of such  Obligor,  (b) any
proceeding  seeking  the  appointment  of  any  trustee,  receiver,  liquidator,
custodian or other insolvency  official with similar powers with respect to such
Obligor or any of its assets, (c) any proceeding for liquidation, dissolution or
other winding up of the business of such Obligor or (d) any  assignment  for the
benefit of creditors or any marshalling of assets of such Obligor.

            "Junior Adequate  Protection Liens" shall have the meaning set forth
in Section 6.2(b).

            "Lien" means any  mortgage,  deed of trust,  pledge,  hypothecation,
assignment, charge, deposit arrangement,  encumbrance, easement, lien (statutory
or otherwise),  security  interest or other security  arrangement  and any other
preference,   priority  or  preferential  arrangement  of  any  kind  or  nature
whatsoever,  including any  conditional  sale contract or other title  retention
arrangement, the interest of a lessor under a capital lease and any synthetic or
other  financing lease having  substantially  the same economic effect as any of
the foregoing.

            "Maximum  First  Lien  Principal  Amount"  means,  as of any date of
determination,  (a) $66,000,000  minus (b) the sum of all principal  payments of
term  loans  constituting  First  Lien  Obligations   (including  voluntary  and
mandatory  prepayments)  and permanent  reductions of revolving loan commitments
under the  First  Lien  Documents  after the date  hereof  plus (c)  solely as a
component  of a DIP  Financing,  the  additional  amount  permitted  pursuant to
Section 6.2(a)(iii) plus (d) interest,  fees, costs,  expenses,  indemnities and
other amounts payable pursuant to the terms of the First Lien Documents, whether
or not the same are added to the principal  amount of the First Lien Obligations
and including  the same as would

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<PAGE>

accrue and  become due but for the  commencement  of an  Insolvency  Proceeding,
whether or not such  amounts are allowed or allowable in whole or in part in any
such Insolvency Proceeding.

            "Maximum  Second  Lien  Principal  Amount"  means  as of any date of
determination,  an  amount  equal to (a)  $30,000,000,  minus (b) the sum of all
principal payments of term loans constituting Second Lien Obligations (including
voluntary and mandatory  prepayments) after the date hereof,  plus (c) interest,
fees,  costs,  expenses,  indemnities and other amounts payable  pursuant to the
terms of the  Second  Lien  Documents,  whether or not the same are added to the
principal  amount of the Second Lien Obligations and including the same as would
accrue and  become due but for the  commencement  of an  Insolvency  Proceeding,
whether or not such  amounts are allowed or allowable in whole or in part in any
such Insolvency Proceeding.

            "New First Lien Agents"  shall have the meaning set forth in Section
4.5(a).

            "New  First Lien  Documents"  shall  have the  meaning  set forth in
Section 4.5(a).

            "New First Lien  Obligations"  shall have the  meaning  set forth in
Section 4.5(a).

            "New Second Lien Agent"  shall have the meaning set forth in Section
4.5(b).

            "New  Second  Lien  Documents"  shall have the  meaning set forth in
Section 4.5(b).

            "New  Second Lien  Obligations"  shall have the meaning set forth in
Section 4.5(b).

            "Obligations"  means the First Lien  Obligations and the Second Lien
Obligations, or any of them.

            "Obligor"  means  Borrower  and each  other  Person  liable on or in
respect of the  Obligations or that has granted a Lien on any property or assets
as Collateral,  together with such Person's successors and assigns,  including a
receiver, trustee or debtor-in-possession on behalf of such Person.

            "Paid in Full" or  "Payment  in Full"  means,  with  respect  to any
Obligations,   that:  (a)  all  of  such  Obligations   (other  than  contingent
indemnification  obligations  for which no underlying  claim has been  asserted)
have been paid,  performed  or  discharged  in full  (with all such  Obligations
consisting of monetary or payment obligations having been paid in full in cash),
(b) no Person has any  further  right to obtain  any  loans,  letters of credit,
bankers' acceptances, or other extensions of credit under the documents relating
to such Obligations and (c) any and all letters of credit,  bankers' acceptances
or similar  instruments  issued under such  documents  have been  cancelled  and
returned (or backed by stand-by guarantees or cash collateralized) in accordance
with the terms of such documents.

            "Pay-Over  Amount"  shall  have the  meaning  set  forth in  Section
6.2(b).

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<PAGE>

            "Permitted  Collateral  Sale" means any Disposition of Collateral so
long as such  Disposition  is permitted  under the First Lien Loan Agreement and
the Second Lien Loan Agreement,  each as in effect on the date hereof.  The term
Permitted  Collateral  Sale  shall not  include  any  Disposition  occurring  or
effected  under any  circumstance  or condition  described in the  definition of
"Release Event".

            "Person" means an individual, partnership,  corporation (including a
business trust and a public benefit corporation),  joint stock company,  estate,
association, firm, enterprise, trust, limited liability company,  unincorporated
association,  joint  venture,  governmental  authority  or any  other  entity or
regulatory body.

            "Proceeds"  means (a) all  "Proceeds" as defined in Article 9 of the
UCC with respect to the  Collateral and (b) whatever is recoverable or recovered
when  Collateral  is  sold,  exchanged,   collected,  or  disposed  of,  whether
voluntarily or involuntarily.

            "Purchase Notice" shall have the meaning set forth in Section 5.1.

            "Refinance",  "Refinancings"  and "Refinanced"  means, in respect of
any Obligations, to issue other indebtedness in exchange or replacement for such
Obligations, in whole or in part.

            "Release Documents" shall have the meaning set forth in Section 2.5.

            "Release  Event" means the taking of any  Enforcement  Action by the
First Lien Creditors  against all or any portion of the Collateral  (including a
Disposition  conducted by any Obligor with the consent of the First Lien Agents)
or, after the closing of a sale of all or any portion of the Collateral pursuant
to an order of the  Bankruptcy  Court under Section 363 of the  Bankruptcy  Code
authorizing the sale of all or any portion of the Collateral.

            "Requisite  Second  Lien  Creditors"  means  Second  Lien  Creditors
holding more than 50% of the  outstanding  principal  balance of the Second Lien
Loans.

            "Second Lien Adequate  Protection  Payments"  shall have the meaning
set forth in Section 6.2(b).

            "Second  Lien Agent"  means  Clearlake  Capital  Group,  L.P. in its
capacity as administrative  agent for the Second Lien Creditors under the Second
Lien  Documents,  and its  permitted  successors  and  assigns in such  capacity
(including  one or more  other  administrative  agents  or  similar  contractual
representatives  for  one or  more  lenders  that  at any  time  succeeds  to or
refinances,  replaces  or  substitutes  for  any  or  all  of  the  Second  Lien
Obligations at any time and from time to time).

            "Second Lien Creditors" means the Second Lien Agent, the Second Lien
Lenders and the other Persons from time to time holding Second Lien Obligations.

            "Second Lien Default"  means any "Event of Default" under the Second
Lien Documents.

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<PAGE>

            "Second Lien Default  Notice"  means with respect to any Second Lien
Default,  a written  notice from the Second Lien Agent to the First Lien Agents,
with a copy to the  Obligors,  indicating  that such  Second  Lien  Default  has
occurred and describing such Second Lien Default in reasonable detail.

            "Second  Lien  Deficiency"  means any  portion  of the  Second  Lien
Obligations consisting of an allowed unsecured claim under Section 506(a) of the
Bankruptcy  Code (or any similar  provision  under any other  Bankruptcy Law) as
determined by a Final Order.

            "Second Lien Documents"  means the Second Lien Loan  Agreement,  all
Loan  Documents (as such term is defined in the Second Lien Loan  Agreement) and
all other  agreements,  documents and  instruments  at any time executed  and/or
delivered by any Obligor or any other Person with,  to or in favor of the Second
Lien  Agent or any Second  Lien  Creditor  in  connection  therewith  or related
thereto,  including such documents  evidencing  successive  Refinancings  of the
Second  Lien  Obligations  in each  case,  as  amended,  amended  and  restated,
supplemented,  modified,  replaced,  substituted or renewed from time to time in
accordance with the terms of this Agreement.

            "Second  Lien  Lenders"  shall  have the  meaning  set  forth in the
recitals hereto.

            "Second Lien Loan Agreement"  means (a) the Initial Second Lien Loan
Agreement  and (b) each loan or credit  agreement  evidencing  any  replacement,
substitution,  renewal,  or Refinancing of the Obligations under the Second Lien
Loan  Agreement,  in each case as  amended,  restated,  supplemented,  replaced,
substituted or Refinanced in accordance with the terms of this Agreement.

            "Second  Lien Loans" means the loans or advances  outstanding  under
the Second Lien Documents.

            "Second Lien  Obligations"  means all  obligations,  liabilities and
indebtedness of every kind, nature and description owing by one or more Obligors
to one or more of the Second Lien Creditors evidenced by or arising under one or
more of the Second Lien  Documents  (including  the Second Lien Loans),  whether
direct or indirect,  absolute or contingent,  joint or several,  due or not due,
primary or secondary, liquidated or unliquidated, including principal, interest,
charges,  fees, costs,  indemnities and reasonable expenses,  however evidenced,
whether as principal,  surety,  endorser,  guarantor or  otherwise,  whether now
existing or  hereafter  arising,  whether  arising  before,  during or after the
initial  or any  renewal  term of the Second  Lien Loan  Agreement  and  whether
arising before,  during or after the  commencement of any Insolvency  Proceeding
with respect to any Obligor (and  including the payment of interest  which would
accrue and become due but for the  commencement of such  Insolvency  Proceeding,
whether or not such  interest is allowed or allowable in whole or in part in any
such Insolvency Proceeding).

            "Second Lien Payment  Default" means an "Event of Default" under the
Second Lien Documents as a result of the failure to pay when due, any principal,
interest, premium or fees under the Second Lien Documents.

            "Second  Lien Secured  Claims"  means any portion of the Second Lien
Obligations not constituting a Second Lien Deficiency.

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<PAGE>

            "Second Lien Termination Date" means January 10, 2015.

            "Secured  Claims"  means the First Lien  Secured  Claims  and/or the
Second Lien Secured Claims as the context may require.

            "Secured  Creditors"  means the First Lien  Creditors and the Second
Lien Creditors, or any of them.

            "Senior Adequate  Protection Liens" shall have the meaning set forth
in Section 6.2(a).

            "Short Fall" shall have the meaning set forth in Section 6.2(b).

            "Standstill  Period"  means the period  commencing  on the date of a
Second  Lien  Default  and ending  upon the date which is the earlier of (a) 180
days after the First Lien Agents have received a Second Lien Default Notice with
respect to such  Second  Lien  Default  and (b) the date on which the First Lien
Obligations  have been Paid in Full;  provided  that in the event that as of any
day  during  such 180 days,  no Second  Lien  Default  is  continuing,  then the
Standstill Period shall be deemed not to have commenced.

            "UCC"  means  the  Uniform   Commercial   Code  of  any   applicable
jurisdiction  and,  if the  applicable  jurisdiction  shall not have any Uniform
Commercial  Code, the Uniform  Commercial  Code as in effect in the State of New
York.

            "UCC Notice" shall have the meaning set forth in Section 3.1.

      1.2 Certain  Matters of  Construction.  The words  "hereof",  "herein" and
"hereunder"  and words of similar import when used in this Agreement shall refer
to  this  Agreement  as a  whole  and not to any  particular  provision  of this
Agreement  and  section  references  are  to  this  Agreement  unless  otherwise
specified.  For purposes of this Agreement,  the following  additional  rules of
construction shall apply: (a) wherever from the context it appears  appropriate,
each term stated in either the singular or plural shall include the singular and
the plural,  and pronouns  stated in the  masculine,  feminine or neuter  gender
shall  include  the  masculine,  the  feminine  and the  neuter,  (b)  the  term
"including" shall not be limiting or exclusive, unless specifically indicated to
the  contrary,  (c) all  references  to statutes and related  regulations  shall
include any amendments of same and any successor  statutes and  regulations  and
(d) unless otherwise specified, all references to any instruments or agreements,
including  references to any of this Agreement and the Documents,  shall include
any and all  modifications  or amendments  thereto and any and all extensions or
renewals thereof, in each case, made in accordance with the terms hereof.

      Section 2. Security Interests; Priorities.

      2.1  Priorities.  Each Secured  Creditor  hereby  acknowledges  that other
Secured  Creditors  have been granted Liens upon the  Collateral to secure their
respective Obligations. The Liens of the First Lien Agents on the Collateral are
and shall be senior and prior in right to the Liens of the Second  Lien Agent on
the  Collateral,  and such Liens of the Second Lien Agent on the  Collateral are
and shall be junior and  subordinate to the Liens of the First Lien Agents.

                                       9
<PAGE>

The priorities of the Liens provided in this Section 2.1 shall not be altered or
otherwise  affected  by  any  amendment,  modification,  supplement,  extension,
renewal, restatement,  replacement or Refinancing of any of the Obligations, nor
by any action or inaction which any of the Secured Creditors may take or fail to
take in respect of the  Collateral.  All Liens on the  Collateral  securing  any
First Lien  Obligations  shall be and remain senior in all respects and prior to
all  Liens on the  Collateral  securing  any  Second  Lien  Obligations  for all
purposes,  whether or not such Liens  securing  any First Lien  Obligations  are
subordinated  to any Lien securing any other  obligation  of the  Borrower,  any
other  Obligor  or any other  Person.  The  Second  Lien Agent for itself and on
behalf of the Second Lien Creditors  expressly agrees that any Lien purported to
be granted on any Collateral as security for the First Lien Obligations shall be
and  remain  senior in all  respects  and  prior to all Liens on the  Collateral
securing any Second Lien Obligations for all purposes  regardless of whether the
Lien  purported  to be granted  is found to be  improperly  granted,  improperly
perfected,  a fraudulent  conveyance  or legally or  otherwise  deficient in any
manner.  Notwithstanding  the foregoing and any other  provision to the contrary
contained in this  Agreement,  the  subordination  of Liens provided for in this
Agreement  shall not be effective  with respect to any part of the Collateral in
which  the  Liens of the First  Lien  Agents  and the  First  Lien  Lenders  are
equitably  subordinated  or not  allowed in a Final  Order  pursuant  to Section
510(c) of the Bankruptcy Code, in each case, as a result of the willful bad acts
of the First Lien  Agents or the First Lien  Lenders,  in which event the Second
Lien Agent and the Second Lien  Lenders  shall be entitled to receive and retain
all Proceeds  with respect to such  Collateral to the extent the Liens of Second
Lien Agent and the Second Lien Lenders are not also  equitably  subordinated  or
not allowed in a Final Order pursuant to Section 510(c) of the Bankruptcy  Code,
in each case,  as a result of the  willful  bad acts of the Second Lien Agent or
the Second Lien Lenders.

      2.2 No Alteration of Priority.  The priorities set forth in this Agreement
are applicable  irrespective  of the order or time of attachment,  or the order,
time or manner of  perfection,  or the order or time of filing or recordation of
any document or  instrument,  or other  method of  perfecting a Lien in favor of
each Secured  Creditor in any Collateral,  and  notwithstanding  any conflicting
terms or conditions which may be contained in any of the Documents.

      2.3 Perfection;  Contesting  Liens.  Each Secured Creditor shall be solely
responsible  for  perfecting and  maintaining  the perfection of its Lien in the
Collateral in which such Secured Creditor has been granted a Lien. The foregoing
provisions of this Agreement are intended  solely to govern the respective  Lien
priorities  as among the Secured  Creditors  and shall not impose on any Secured
Creditor  any  obligations  in respect of the  Disposition  of  proceeds  of any
Collateral that would conflict with prior  perfected  claims therein in favor of
any other Person or any order or decree of any court or  governmental  authority
or any applicable  law. Each Secured  Creditor agrees that it will not institute
or join in any contest of the validity,  perfection,  priority or enforceability
of  the  Liens  of  the  other  Secured   Creditor  in  the  Collateral  or  the
enforceability  of the First Lien  Obligations  or the Second Lien  Obligations;
provided that nothing in this Agreement  shall be construed to prevent or impair
the rights of the First Lien  Agents or the  Second  Lien Agent to enforce  this
Agreement, including the provisions hereof relating to Lien priority.

      2.4 Proceeds of  Collateral.  Any  Collateral or Proceeds  received by any
Second  Lien  Creditor  including,   without  limitation,  any  such  Collateral
constituting  Proceeds, or any payment prohibited under Section 4.3(b), that may
be received by any Second Lien Creditor in violation

                                       10
<PAGE>

of this Agreement,  shall be segregated and held in trust and promptly paid over
to the First Lien Agents,  for the benefit of the First Lien  Creditors,  in the
same form as received,  with any  necessary  endorsements,  and each Second Lien
Creditor hereby authorize the First Lien Agents to make any such endorsements as
agent for the Second Lien Agent  (which  authorization,  being  coupled  with an
interest,  is  irrevocable).  All Collateral and Proceeds  received by any First
Lien Creditor prior to the First Lien  Termination  Date shall be applied to the
First Lien Obligations, and Collateral and all Proceeds received after the First
Lien  Termination  Date shall be forthwith  paid over,  in the kind or funds and
currency  received,  to the Second Lien Creditors for  application to the Second
Lien Obligations (unless otherwise required by law or court order).

      2.5 Release of Collateral Upon Permitted  Collateral Sale. The Second Lien
Agent, on behalf of the Second Lien  Creditors,  shall at any time in connection
with any  Permitted  Collateral  Sale:  (a) upon the  request  of the First Lien
Agents with respect to the Collateral subject to such Permitted Collateral Sale,
release or otherwise terminate its Liens on such Collateral (and/or, in the case
of a Permitted  Collateral  Sale consisting of the sale or disposition of all or
substantially all of the equity interests or assets of any Obligor, release such
Obligor from its obligations under the relevant Documents), (b) promptly deliver
such  terminations  of financing  statements,  partial lien  releases,  mortgage
satisfactions and discharges, endorsements,  assignments or other instruments of
transfer,  termination or release  (collectively,  "Release Documents") and take
such further actions as the First Lien Agents shall reasonably  require in order
to release and/or terminate such Second Lien Agent's Liens on the Collateral (or
release such Obligor) subject to such Permitted  Collateral Sale (the First Lien
Agents  acknowledge and agree that the Release Documents  relating to the Second
Lien Agent's Lien on any such  Collateral  shall not be filed or recorded unless
and until the Release Documents  relating to the First Lien Agents' Lien on such
Collateral  are  filed  or  recorded);  provided  that  if  the  closing  of the
Disposition  of the  Collateral  is not  consummated  within  30 days  from  the
proposed closing date or any agreement governing such Permitted  Collateral Sale
is  terminated  by any of the  parties  thereto,  the First  Lien  Agents  shall
promptly return all Release Documents to the Second Lien Agent and (c) be deemed
to have consented  under the Second Lien Documents to such Permitted  Collateral
Sale free and clear of the  Second  Lien  Agent's  security  interest  (it being
understood that the Second Lien Agent shall still,  subject to the terms of this
Agreement,  have a  security  interest  with  respect  to the  proceeds  of such
Collateral)  and to have waived the  provisions of the Second Lien  Documents to
the extent necessary to permit such transaction.

      2.6 Release of Collateral  Upon Release Event.  The Second Lien Agent,  on
behalf of the Second Lien  Creditors,  shall,  at any time in connection  with a
Release Event with respect to any Collateral:  (a) upon the request of the First
Lien Agents with respect to the Collateral  subject to such Release Event (which
request will specify the principal  proposed  terms of the sale and the type and
amount of  consideration  expected  to be  received  in  connection  therewith),
release or otherwise terminate its Liens on such Collateral (and/or, in the case
of a Disposition  consisting of the sale or disposition of all or  substantially
all of the equity interests or assets of any Obligor,  release such Obligor from
its obligations under the relevant Documents),  to the extent the Disposition of
such  Collateral  is  either  by (i) the First  Lien  Agents or their  agents or
representatives  or  (ii)  any  Obligor  with  the  consent  of the  First  Lien
Creditors,  (b) be deemed to have  consented  under the Second Lien Documents to
such  Disposition  free and clear of the  Second  Lien  Agent's  Liens (it being
understood that the Second Lien Agent shall still,  subject to the terms of this
Agreement,  have a  security  interest  with  respect  to the  proceeds  of such

                                       11
<PAGE>

Collateral)  and to have  waived the  provisions  of the Second  Lien  Documents
(other than this Agreement) to the extent  necessary to permit such  transaction
and (c) deliver such Release  Documents  and take such further  actions as First
Lien Agents may reasonably require in connection  therewith;  provided that, (i)
such  release  by the Second  Lien  Creditors  shall not extend to or  otherwise
affect any of the rights of the Second Lien  Creditors to the proceeds  from any
such  Disposition  of Collateral,  (ii) the First Lien Creditors  shall promptly
apply such proceeds to permanently pay the First Lien Obligations until the same
have been Paid in Full, (iii) after such  application,  any excess proceeds from
such  Disposition  shall be applied in accordance with the provisions of Section
2.4 hereof and (iv) no such  release  and/or  authorization  documents  shall be
delivered  (A) to any Obligor or (B) more than 2 Business Days prior to the date
of the closing of the Disposition of such  Collateral;  provided further that if
the closing of the  Disposition of the Collateral  subject to such Release Event
is not  consummated  within  30 days of the  proposed  date  of  closing  or any
agreement governing such Disposition is terminated,  the First Lien Agents shall
promptly return all Release Documents to the Second Lien Agent.

      2.7 Power of  Attorney.  The Second Lien  Agent,  on behalf of each Second
Lien Creditor, hereby irrevocably constitutes and appoints the First Lien Agents
and any officers of the First Lien Agents,  with full power of substitution,  as
its true and lawful  attorney-in-fact  with full irrevocable power and authority
in the place and stead of the  Second  Lien  Agent and in the name of the Second
Lien  Agent or in the First  Lien  Agents'  own name,  from time to time in such
First Lien  Agents'  discretion,  for the purpose of  carrying  out the terms of
Sections  2.5 and 2.6  hereof,  to take any and all  appropriate  action  and to
execute  any and  all  documents  and  instruments  which  may be  necessary  or
reasonably desirable to accomplish the purposes of such Sections,  including any
Release Documents,  and, in addition,  to take any and all other appropriate and
commercially reasonable action for the purpose of carrying out the terms of such
Sections,  such power of attorney being coupled with an interest and irrevocable
until the First Lien Termination Date. The Second Lien Agent hereby ratifies all
that said  attorneys  shall  lawfully do or cause to be done  pursuant to and in
accordance with the power of attorney  granted in this Section 2.7. No Person to
whom this power of attorney is presented, as authority for the First Lien Agents
to take any action or actions  contemplated hereby, shall be required to inquire
into or seek  confirmation  from any Second Lien Creditor as to the authority of
the  First  Lien  Agents  to take  any  action  described  herein,  or as to the
existence of or fulfillment of any condition to this power of attorney, which is
intended to grant to the First Lien Agents the authority to take and perform the
actions  contemplated herein. The Second Lien Agent irrevocably waives any right
to commence any suit or action, in law or equity,  against any Person which acts
in reliance  upon or  acknowledges  the  authority  granted  under this power of
attorney.

      2.8 Waiver.  Each of the First Lien Agents, on behalf of each of the First
Lien Creditors,  and the Second Lien Agent, on behalf of each of the Second Lien
Creditors, (a) waives any and all notice of the creation,  renewal, extension or
accrual of any of the Obligations  under the Documents and notice of or proof of
reliance by the Secured  Creditors upon this  Agreement and protest,  demand for
payment  or notice  except to the  extent  otherwise  specified  herein  and (b)
acknowledges  and agrees that the other Secured  Creditors  have relied upon the
Lien priority and other provisions  hereof in entering into the Documents and in
making funds available to the Obligors thereunder.

                                       12
<PAGE>

      2.9 Notice of Interest In Collateral. This Agreement is intended, in part,
to constitute an authenticated  notification of a claim by each Secured Creditor
to the other  Secured  Creditors of an interest in the  Collateral in accordance
with the provisions of Sections 9-611 and 9-621 of the UCC.

      2.10 New  Liens.  Subject  to the  other  terms of this  Agreement  in all
respects,

            (a) the  parties  hereto  agree that no  additional  Liens  shall be
granted or permitted on any asset of the Borrower or any other Obligor to secure
any Second  Lien  Obligation  unless,  subject  to the terms of this  Agreement,
immediately  after  giving  effect to such grant or  concurrently  therewith,  a
senior  and prior  Lien  shall be granted on such asset to secure the First Lien
Obligations.  To the extent that the foregoing  provisions are not complied with
for any reason,  without limiting any other rights and remedies available to the
First Lien Agents  and/or the First Lien  Creditors,  the Second Lien Agent,  on
behalf of the Second Lien  Creditors,  agrees  that any  amounts  received by or
distributed  to any of them  pursuant  to or as a  result  of Liens  granted  in
contravention  of this  Section  2.10  shall  be  subject  to the  terms of this
Agreement; and

            (b) the  parties  hereto  agree that no  additional  Liens  shall be
granted or permitted on any asset of the Borrower or any other Obligor to secure
any First  Lien  Obligation  unless,  subject  to the  terms of this  Agreement,
immediately  after  giving  effect to such grant or  concurrently  therewith,  a
junior and subordinate  Lien shall be granted on such asset to secure the Second
Lien Obligations.  To the extent that the foregoing  provisions are not complied
with for any reason, without limiting any other rights and remedies available to
the Second Lien Agent and/or the Second Lien  Creditors,  the First Lien Agents,
on behalf of the First Lien  Creditors,  agree that any  amounts  received by or
distributed  to any of them  pursuant  to or as a  result  of Liens  granted  in
contravention  of this  Section  2.10  shall  be  subject  to the  terms of this
Agreement.

      2.11 Similar Liens and  Agreements.  The parties  hereto  acknowledge  and
agree that it is their  intention  that the  Collateral  securing the First Lien
Obligations and the Collateral securing the Second Lien Obligations be identical
in all material  respects.  In furtherance of the foregoing,  the parties hereto
agree:

            (a) to  cooperate  in good  faith in order  to  determine,  upon any
request by the First Lien Agents or the Second Lien Agent,  the specific  assets
included in the Collateral  securing  their  respective  Obligations,  the steps
taken to perfect the Liens  thereon and the identity of the  respective  parties
obligated under any Document;

            (b) that the  documents,  agreements  and  instruments  creating  or
evidencing  the Liens of such  parties in the  Collateral,  are in all  material
respects substantively similar, other than with respect to the relative priority
of the Liens created or evidenced thereunder; and

            (c) any Lien  obtained  by any  Secured  Creditor  in respect of any
judgment obtained in respect of any Obligations shall be subject in all respects
to the terms of this Agreement.

      Section 3. Enforcement of Security.

                                       13
<PAGE>

      3.1 Management of Collateral. Subject to the other terms and conditions of
this  Agreement,  the First Lien  Creditors  shall have the  exclusive  right to
manage,  perform and enforce the terms of the First Lien  Documents with respect
to the Collateral,  to exercise and enforce all privileges and rights thereunder
according  to their sole  discretion  and the  exercise  of their sole  business
judgment,  including the exclusive right to take or retake control or possession
of the  Collateral  and to hold,  prepare  for  sale,  process,  Dispose  of, or
liquidate  the  Collateral  and  to  incur  expenses  in  connection  with  such
Disposition  and to exercise  all the rights and  remedies  of a secured  lender
under  the UCC of any  applicable  jurisdiction.  In  conducting  any  public or
private  sale under the UCC,  the First Lien  Agents  shall give the Second Lien
Agent  such  notice  (a "UCC  Notice")  of such sale as may be  required  by the
applicable UCC; provided,  however, that 10 days' written notice shall be deemed
to be commercially  reasonable notice.  Except as specifically  provided in this
Section  3.1 or  Section  3.3  below,  notwithstanding  any  rights or  remedies
available  to a Second Lien  Creditor  under any of the Second  Lien  Documents,
applicable  law or  otherwise,  no  Second  Lien  Creditor  shall,  directly  or
indirectly,  take any Enforcement Action; provided that, subject at all times to
the provisions of Section 2, upon the expiration of the Standstill  Period,  the
Second Lien Creditors may take any Enforcement  Action  (provided that they give
the First Lien Agents at least 10 Business  Days written  notice prior to taking
such Enforcement Action); provided, however, that notwithstanding the expiration
of the Standstill  Period or anything herein to the contrary,  in no event shall
any Second Lien Creditor take or continue to take any Enforcement  Action if any
First Lien Agent or any First Lien Creditor or any representative  thereof shall
have  commenced and is diligently  pursuing an  Enforcement  Action  (including,
without  limitation,  any  of  the  following  (if  undertaken  and  pursued  to
consummate a Disposition of such Collateral in good faith):  the solicitation of
bids from third  parties  to  conduct  the  liquidation  of all or any  material
portion  of the  Collateral,  the  engagement  or  retention  of sales  brokers,
marketing agents,  investment bankers,  accountants,  auctioneers or other third
parties for the purpose of valuing,  marketing,  promoting or selling all or any
material portion of the Collateral,  the notification of account debtors to make
payments to the First Lien Agents or their agents,  the initiation of any action
to take  possession  of all or any  material  portion of the  Collateral  or the
commencement of any legal  proceedings or actions against or with respect to the
foreclosure  and sale of all or any  material  portion  of the  Collateral),  or
diligently   attempting  in  good  faith  to  vacate  any  stay  prohibiting  an
Enforcement Action with respect to all or any material portion of the Collateral
or  diligently  attempting  in good  faith to  vacate  any stay  prohibiting  an
Enforcement  Action.  For the avoidance of doubt, the parties hereto acknowledge
and agree that the Second Lien Agent may engage or retain an expert to value any
Collateral  or the  business of the Obligors  irrespective  of whether the First
Lien Agents do the same.

      3.2  Notices  of  Default.  Each  Agent  shall  give  to the  other  Agent
concurrently  with the giving  thereof to any  Obligor (a) a copy of any written
notice by any Secured Creditor of an Event of Default under any of its Documents
or a written notice of demand for payment from any Obligor and (b) a copy of any
written notice sent by such Secured Creditor to any Obligor stating such Secured
Creditor's  intention to exercise any  material  enforcement  rights or remedies
against such Obligor,  including written notice pertaining to any foreclosure on
all or any material  part of the  Collateral or other  judicial or  non-judicial
remedy in respect  thereof,  and any legal process served or filed in connection
therewith;  provided that the failure of any Agent to give such required  notice
shall not result in any liability to such Agent or affect the  enforceability of
any provision of this Agreement,  including the relative priorities of the Liens
of the Secured

                                       14
<PAGE>

Creditors as provided herein, and shall not affect the validity or effectiveness
of any such notice as against any Obligor; provided, further, that the foregoing
shall not in any way  impair  any  claims  that any  Secured  Creditor  may have
against  any other  Secured  Creditor as a result of any failure of any Agent to
provide a UCC Notice in accordance  with the  provisions  of this  Agreement and
applicable  law  (including  without  limitation  any liability that any Secured
Creditor  may  have to any  other  Secured  Creditor  as a  result  of any  such
failure).  Each Agent will provide such  information as it may have to the other
Agent as the other  may from  time to time  reasonably  request  concerning  the
status  of the  exercise  of any  Enforcement  Action  and each  Agent  shall be
available on a reasonable  basis during normal business hours to review with the
other Agent alternatives available in exercising such rights, including, but not
limited  to,  advising  each other of any offers  which may be made from time to
time by prospective purchasers of the Collateral;  provided that (i) the failure
of any party to do any of the foregoing shall not affect the relative priorities
of  the  Agent's  respective  Liens  as  provided  herein  or  the  validity  or
effectiveness  of any notices or demands as against any  Borrower or any Obligor
and (ii) in no event will the First Lien Agents or any First Lien  Creditor have
any obligation to obtain the consent of any Second Lien Creditor with respect to
any actions taken or contemplated to be taken (or not taken) with respect to any
Enforcement  Action in accordance  with this  Agreement.  Each  Obligor,  by its
acknowledgment  hereto,  hereby  consents  and agrees to each  Secured  Creditor
providing  any such  information  to the  other  Secured  Creditors  and to such
actions by the  Secured  Creditors  and waives any rights or claims  against any
Secured Creditors arising as a result of such information or actions.

      3.3  Permitted  Actions.  Section 3.1 shall not be  construed  to limit or
impair in any way the right of: (a) any Secured  Creditor to bid for or purchase
Collateral at any private or judicial foreclosure upon such Collateral initiated
by any Secured Creditor,  (b) any Secured Creditor to join (but not control) any
foreclosure or other judicial lien  enforcement  proceeding  with respect to the
Collateral  initiated  by  another  Secured  Creditor  for the sole  purpose  of
protecting such Secured  Creditor's  Lien on the Collateral,  so long as it does
not delay or interfere  with the exercise by such other Secured  Creditor of its
rights under this Agreement,  the Documents and under applicable law and (c) the
Second Lien Creditors to receive any remaining  proceeds of Collateral after the
First  Lien  Obligations  have been Paid in Full.  Any  proceeds  of  Collateral
received in  connection  with any such  Enforcement  Action  shall be applied in
accordance with Section 2.4 of this Agreement.

      3.4 Collateral In Possession.

            (a) In  the  event  that  either  of  the  First  Lien  Agents  take
possession of or have "control" (as such term is used in the UCC as in effect in
each applicable jurisdiction) over any Collateral for purposes of perfecting its
Lien  therein,  the  First  Lien  Agents  shall be  deemed  to be  holding  such
Collateral as  representative  for the Secured  Creditors,  including the Second
Lien  Creditors,  solely for purposes of  perfection  of its Lien under the UCC;
provided  that the First Lien  Agents  shall not have any duty or  liability  to
protect or  preserve  any rights  pertaining  to any of the  Collateral  for the
Second Lien Creditors.  Promptly  following the First Lien Termination Date, the
First Lien Agents shall deliver the remainder of the Collateral,  if any, in its
possession  to the designee of the Second Lien Agent (except as may otherwise be
required by applicable law or court order).

                                       15
<PAGE>

            (b) In the event that any Second Lien Creditor  takes  possession of
or has  "control"  (as  such  term  is  used  in the  UCC as in  effect  in each
applicable jurisdiction) over any Collateral for purposes of perfecting its Lien
therein, such Second Lien Creditor shall be deemed to be holding such Collateral
as representative for the Secured Creditors, including the First Lien Creditors,
solely for purposes of perfection of its Lien under the UCC;  provided that such
Second Lien Creditor shall not have any duty or liability to protect or preserve
any rights pertaining to any of the Collateral for the First Lien Creditors.

            (c) It is  understood  and agreed that this  Section 3.4 is intended
solely to assure continuous perfection of the Liens granted under the applicable
Documents,  and  nothing in this  Section  3.4 shall be deemed or  construed  as
altering the priorities or obligations  set forth  elsewhere in this  Agreement.
The  duties  of each  party  under  this  Section  3.4 shall be  mechanical  and
administrative  in nature,  and no party  shall have,  or be deemed to have,  by
reason of this Agreement or otherwise a fiduciary relationship in respect of the
other party.

      3.5 Waiver of Marshalling and Similar Rights.  Each Secured  Creditor,  to
the fullest extent  permitted by applicable law, waives as to each other Secured
Creditor any requirement regarding,  and agrees not to demand, request, plead or
otherwise  claim the benefit of, any  marshalling,  appraisement,  valuation  or
other similar right that may otherwise be available  under  applicable  law. For
the avoidance of doubt, the parties hereto acknowledge and agree that the Second
Lien  Agent may  engage or  retain  an  expert  to value any  Collateral  or the
business of the  Obligors  irrespective  of whether the First Lien Agents do the
same.

      3.6  Insurance  and  Condemnation  Awards.  So  long  as  the  First  Lien
Termination  Date  has not  occurred,  the  First  Lien  Agents  shall  have the
exclusive  right,  subject  to the rights of the  Obligors  under the First Lien
Documents,  to settle and adjust claims in respect of Collateral  under policies
of insurance  and to approve any award  granted in any  condemnation  or similar
proceeding,  or any deed in lieu of condemnation,  in respect of the Collateral.
After the occurrence of the First Lien  Termination  Date, the Second Lien Agent
shall have the exclusive right,  subject to the rights of the Obligors under the
Second  Lien  Documents,  to settle and adjust  claims in respect of  Collateral
under policies of insurance and to approve any award granted in  condemnation or
similar  proceeding,  or any deed in lieu of  condemnation,  in  respect  of the
Collateral.

      3.7 Debt  Action.  Notwithstanding  anything to the  contrary set forth in
this  Agreement,  (i) the First Lien  Creditors may take any Debt Action without
the consent of the Second Lien  Creditors and (ii) the Second Lien Creditors may
take any Debt Action without the consent of the First Lien Creditors.

      Section 4. Covenants

      4.1 Amendment of First Lien Documents. The First Lien Creditors may at any
time and from time to time and  without  consent of or notice to any Second Lien
Creditor,  without  incurring  any  liability  to any Second Lien  Creditor  and
without impairing or releasing any rights or obligations hereunder or otherwise,
amend, restate,  supplement,  modify, substitute, renew or replace any or all of
the First Lien  Documents;  provided,  however,  that without the consent of the
Requisite  Second  Lien  Creditors,  the First Lien  Creditors  shall not amend,
restate,

                                       16
<PAGE>

supplement,  modify  substitute,  renew or replace  any or all of the First Lien
Documents  to (a)  directly  increase  the  interest  rates  on the  First  Lien
Obligations  to an amount  greater  than 3.0% per  annum  above  rates as are in
effect  on the date  hereof  (excluding,  without  limitation,  fluctuations  in
underlying  rate indices and imposition of a default rate of 2% per annum),  (b)
change the final  maturity  date of the First Lien  Obligations  to a date later
than the Second  Lien  Termination  Date or shorten  the  maturity  or  weighted
average  life to  maturity  of the First Lien  Obligations  or require  that any
payment on the First Lien  Obligations be made earlier than the date  originally
scheduled  for such payment or that any  commitment  expire any earlier than the
date originally  scheduled  therefor,  (c) increase the principal  amount of the
First Lien  Obligations  in excess of the Maximum First Lien  Principal  Amount,
other than as a result of the capitalization of accrued interest and expenses or
(d)  modify  or add any  covenant  or event of  default  under  the  First  Lien
Documents  which  directly  restricts one or more Obligors from making  payments
under the Second Lien  Documents  which would  otherwise be permitted  under the
First Lien Documents as in effect on the date hereof.

      4.2 Amendments to Second Lien Documents.  Until the First Lien Termination
Date has occurred, and notwithstanding anything to the contrary contained in the
Second Lien Documents,  the Second Lien Creditors  shall not,  without the prior
written consent of the First Lien Agents,  agree to any amendment,  restatement,
modification,  supplement,  substitution, renewal or replacement of or to any or
all of the Second Lien Documents that (a) would directly or indirectly result in
an increase  in the  interest  rates in respect of the Second  Lien  Obligations
(excluding,  without  limitation,  fluctuations  in underlying  rate indices and
imposition  of a default rate of 2% per annum) by more than 3.0% per annum,  (b)
shorten the  maturity or  weighted  average  life to maturity of the Second Lien
Obligations  or require that any payment on the Second Lien  Obligations be made
earlier  than  the  date  originally  scheduled  for  such  payment  or that any
commitment expire any earlier than the date originally  scheduled therefor,  (c)
add or modify in a manner  adverse to any Obligor or any First Lien Creditor any
covenant,  agreement  or  event of  default  under  the  Second  Lien  Documents
(provided,  that, if the First Lien Documents are amended or otherwise  modified
to  provide  for  additional  covenants  or events of  default,  or to make more
restrictive or onerous any existing covenants or events of default applicable to
the  Obligors,  then the  Second  Lien  Documents  may be  similarly  amended or
modified to provide for such  additional  covenants or events of default or such
more restrictive covenants or events of default, as the case may be, so long as,
in each case, any cushion or step-back  between the First Lien Documents and the
Second Lien  Documents is maintained  in  connection  therewith (or otherwise is
consistent  with the approach  currently in effect),  and provided  that no such
amendment to the Second Lien Documents  shall have the effect of making any such
event of default or covenant more  restrictive than those set forth in the First
Lien Documents,  as so amended or otherwise modified) or (d) increase the amount
of the Second Lien Obligations.

      4.3 Enforcement Actions by Second Lien Creditors; Prepayments.

            (a) The Second  Lien  Creditors  shall give the First Lien Agents at
least 10 Business Days' written notice prior to taking any  Enforcement  Action,
which notice may be given during the pendency of any Standstill Period.

                                       17
<PAGE>

            (b) Without the prior written consent of the First Lien Agents or an
amendment or waiver to the First Lien Documents providing  otherwise,  no Second
Lien  Creditor will take,  demand or receive from any Obligor any  prepayment of
principal (whether optional, voluntary, mandatory or otherwise or by redemption,
defeasance  or other  payment or  distribution)  with respect to any Second Lien
Obligations.

      4.4 Cure Rights.  The First Lien Agents shall have the right,  but not the
obligation, to cure a Second Lien Payment Default at any time during the 180-day
period  provided for in clause (a) of the  definition  of  Standstill  Period in
Section 1 or thereafter with the prior written consent of the Second Lien Agent.
In the event that such Second Lien Payment Default shall be so cured, the rights
of the Second Lien  Creditors  in respect of such Second  Lien  Payment  Default
shall cease until the occurrence of any other Second Lien Payment Default. In no
event  shall the First  Lien  Creditors,  by virtue of the  payment  of any such
amounts,  or performance  of any obligation  required to be paid or performed by
any  Obligor,  be deemed to have  assumed any  obligation  of any Obligor to the
Second Lien Creditors or any other Person.

      4.5 Effect of Refinancing.

            (a) If the  Payment in Full of the First Lien  Obligations  is being
effected  through a  Refinancing;  provided  that (i) the Borrower  give written
notice of such  Refinancing  to the Second  Lien Agent at least 2 Business  Days
prior to such  Refinancing and (ii) the credit agreement and the other documents
evidencing such new First Lien  Obligations  (the "New First Lien Documents") do
not effect an amendment,  supplement or other  modification  of the terms of the
First Lien  Obligations  in a manner that is prohibited by Section 4.1, then (A)
such  Payment  in Full of First  Lien  Obligations  shall be deemed  not to have
occurred for all purposes of this  Agreement,  (B) the  indebtedness  under such
Refinancing and all other obligations under the credit documents evidencing such
indebtedness (the "New First Lien  Obligations")  shall be treated as First Lien
Obligations for all purposes of this Agreement, (C) the New First Lien Documents
shall be treated as the First Lien  Documents for all purposes of this Agreement
and (D) the  agents  under the New First  Lien  Documents  (the "New  First Lien
Agents")  shall be deemed to be the First Lien  Agents for all  purposes of this
Agreement. Upon receipt of a notice of Refinancing under the preceding sentence,
which notice shall include the identity of the New First Lien Agents, the Second
Lien Agent shall promptly  enter into such  documents and agreements  (including
amendments or  supplements  to this  Agreement) as the New First Lien Agents may
reasonably  request in order to provide to the New First Lien  Agents the rights
and powers set forth herein.

            (b) If the Payment in Full of the Second Lien  Obligations  is being
effected through a Refinancing;  provided that (i) the Second Lien Agent gives a
notice of such  Refinancing  to the First Lien  Agents at least 2 Business  Days
prior to such  Refinancing and (ii) the credit agreement and the other documents
evidencing such New Second Lien Obligations (the "New Second Lien Documents") do
not effect an amendment,  supplement or other  modification  of the terms of the
Second Lien  Obligations in a manner that is prohibited by Section 4.2, then (A)
such  Payment  in Full of Second  Lien  Obligations  shall be deemed not to have
occurred for all purposes of this  Agreement,  (B) the  indebtedness  under such
Refinancing and all other obligations under the credit documents evidencing such
indebtedness (the "New Second Lien Obligations") shall be treated as Second Lien
Obligations  for all  purposes  of this

                                       18
<PAGE>

Agreement, (C) the New Second Lien Documents shall be treated as the Second Lien
Documents  for all  purposes of this  Agreement  and (D) the agent under the New
Second Lien  Documents  (the "New Second Lien Agent")  shall be deemed to be the
Second Lien Agent for all purposes of this  Agreement.  Upon receipt of a notice
of  Refinancing  under the  preceding  sentence,  which notice shall include the
identity  of the New Second Lien Agent,  the First Lien  Agents  shall  promptly
enter into such documents and agreements (including amendments or supplements to
this Agreement) as the New Second Lien Agent may reasonably  request in order to
provide to the New Second Lien Agent the rights and powers set forth herein.

            (c) By their  acknowledgement  hereto,  Obligors  agree to cause the
agreement, document or instrument pursuant to which any New First Lien Agents or
any New Second Lien Agent is appointed to provide that the New First Lien Agents
or New Second Lien Agent, as applicable, agrees to be bound by the terms of this
Agreement.

      Section 5. Second Lien Creditors Purchase Option.

      5.1 Purchase Notice. Upon the Second Lien Agent's receipt of a notice from
the First Lien Agents  (the  "Agent's  Notice")  that the First Lien Agents have
accelerated the First Lien Obligations, the Second Lien Creditors shall have the
option,  but not the obligation,  to purchase all, but not less than all, of the
First Lien  Obligations  owing to the First Lien  Creditors  from the First Lien
Creditors,  and assume all, but not less than all, of the then existing  funding
commitments  under the First  Lien  Documents  by giving a written  notice  (the
"Purchase  Notice") to the First Lien Agents no later than the 10th Business Day
after receipt by the Second Lien Agent of the Agent's Notice.  A Purchase Notice
once delivered shall be irrevocable.

      5.2  Purchase  Option  Closing.  On the date  specified by the Second Lien
Agent in the Purchase  Notice  (which shall not be less than 3 Business Days nor
more than 5 Business  Days,  after the  receipt by the First Lien  Agents of the
Purchase  Notice),  the First  Lien  Creditors  shall  sell to the  Second  Lien
Creditors,  and the Second Lien  Creditors  shall  purchase  from the First Lien
Creditors,  all, but not less than all, of the First Lien  Obligations,  and the
First Lien Lenders shall assign to the purchasing  Second Lien Lenders,  and the
purchasing Second Lien Lenders shall assume from the First Lien Lenders all, but
not less than all, of the then existing funding commitments under the First Lien
Documents.

      5.3 Purchase Price.  Such purchase and sale shall be made by execution and
delivery by the applicable  Secured Creditors of an Assignment  Agreement in the
form attached to the First Lien Loan  Agreement.  Upon the date of such purchase
and sale, the Second Lien  Creditors  shall (a) pay to the First Lien Agents for
the benefit of the First Lien  Creditors as the purchase  price therefor the sum
of (i) the full amount of all the First Lien  Obligations  then  outstanding and
unpaid (including principal, interest, fees, indemnities and expenses, including
reasonable  attorneys' fees and legal expenses) plus (ii) any early  termination
fee,  prepayment fee,  breakage fee or other similar fee payable pursuant to the
First Lien Loan  Agreement as in effect on the date of hereof  (calculated as if
the First Lien  Obligations  were repaid in full by the  Obligors at such time),
(b)  furnish  cash  collateral  to the First  Lien  Agents  with  respect to the
outstanding  First Lien  Letter of Credit  Obligations  and  amounts  owing with
respect  to  Secured  Hedging  Agreements  (as  defined  in the First  Lien Loan
Agreement),  in each case, in such amounts as are required  under the First Lien
Loan Agreement and (c) agree to reimburse the First Lien Creditors

                                       19
<PAGE>

for any loss, cost, damage or expense (including  reasonable attorneys' fees and
legal  expenses) in connection  with any  commissions,  fees,  costs or expenses
related to any issued and outstanding First Lien Letter of Credit Obligations as
described above and any checks or other payments  provisionally  credited to the
First Lien Obligations, and/or as to which the First Lien Creditors have not yet
received  final  payment.  Such  purchase  price  and cash  collateral  shall be
remitted by wire transfer of immediately available funds to such bank account of
one of the First Lien Agents (as  determined at the time) in New York, New York,
as such First Lien Agent may  designate in writing to the Second Lien  Creditors
for such purpose. Interest shall be calculated to but excluding the Business Day
on which such purchase and sale shall occur if the amounts so paid by the Second
Lien  Creditors  to the bank  account  designated  by the First Lien  Agents are
received  in such  bank  account  prior to 1:00  p.m.,  New York  City  time and
interest  shall be calculated to and including  such Business Day if the amounts
so paid by the Second Lien Creditors to the bank account designated by the First
Lien Agents are  received in such bank  account  later than 1:00 p.m.,  New York
City time.

      5.4 Nature of Sale. Such purchase and sale shall be expressly made without
representation  or  warranty of any kind by the First Lien  Creditors  as to the
First Lien  Obligations  or  otherwise  and  without  recourse to the First Lien
Creditors,  except for representations  and warranties as to the following:  (a)
the amount of the First Lien  Obligations  being purchased  (including as to the
principal  of and  accrued and unpaid  interest on such First Lien  Obligations,
fees and expenses thereof), (b) that the First Lien Creditors own the First Lien
Obligations free and clear of any Liens and (c) each First Lien Creditor has the
full right and power to assign its First Lien  Obligations  and such  assignment
has been duly  authorized by all necessary  corporate  action by such First Lien
Creditor.

      5.5 Notice of Election to Purchase.  As soon as practicable  after receipt
of the  Agent's  Notice,  but in no event more than 10  Business  Days after the
Second Lien Agent's receipt of the Agent's Notice, the Second Lien Creditors (if
they elect to do so) shall send to the First Lien  Agents the  Purchase  Notice.
The First Lien Creditors shall not complete any  Enforcement  Action (other than
the exercise of control over any Obligor's deposit or securities  accounts),  as
long as the purchase and sale of the First Lien Obligations provided for in this
Section 5 shall  have  closed  within 5  Business  Days of Second  Lien  Agent's
receipt of the Agent's Notice and the First Lien  Creditors  shall have received
Payment in Full of the First Lien  Obligations  as  provided  for in Section 5.3
within such 5 Business Day period. For the avoidance of doubt, during the period
between Second Lien Agent's receipt of the Agent's Notice and First Lien Agents'
receipt of the Purchase  Notice,  First Lien Agents shall not be restricted from
pursuing or completing any Enforcement Action.

      Section 6. Bankruptcy Matters.

      6.1  Bankruptcy.  This Agreement shall be applicable both before and after
the filing of any petition by or against any Obligor under the  Bankruptcy  Code
or any other  Insolvency  Proceeding  and all converted or  succeeding  cases in
respect  thereof,  and all  references  herein to any Obligor shall be deemed to
apply   to   the   trustee   for   such   Obligor   and   such   Obligor   as  a
debtor-in-possession.  The relative  rights of the First Lien  Creditors and the
Second Lien  Creditors in respect of any  Collateral or Proceeds  shall continue
after  the  filing  of such  petition  or the  commencement  of such  Insolvency
Proceeding  on  the  same  basis  as  prior  to  the  date  of

                                       20
<PAGE>

such filing or commencement,  subject to any court order approving the financing
of, or use of cash collateral by, any Obligor. This Agreement shall constitute a
"subordination  agreement"  for the purposes of Section 510(a) of the Bankruptcy
Code and shall be enforceable in any  Insolvency  Proceeding in accordance  with
its terms.

      6.2 Post Petition Financing; Adequate Protection.

            (a) If any Obligor or Obligors  shall become  subject to  Insolvency
Proceedings  and such  Obligor  or  Obligors  as  debtor(s)-in-possession  (or a
trustee  appointed on behalf of such Obligor or Obligors)  shall move for either
approval of  financing  ("DIP  Financing")  to be provided by one or more of the
First Lien  Creditors (or to be provided by any other person or group of persons
with the consent of the First Lien Agents,  provided  that the First Lien Agents
expressly  retain their right to object to any DIP Financing)  under Section 364
of the  Bankruptcy  Code or the use of cash  collateral  with the consent of the
First Lien Creditors  under Section 363 of the Bankruptcy  Code, then subject to
Section 6.2(b), the Second Lien Creditors agree as follows:  (i) adequate notice
to Second Lien Creditors for such DIP Financing or use of cash collateral  shall
be deemed to have been given to the Second  Lien  Creditors  if the Second  Lien
Agent receives the notice filed with the bankruptcy court (provided that if such
bankruptcy  court  orders  notice,  such notice shall be received by Second Lien
Agent in  compliance  with such order) in advance of the hearing to approve such
DIP Financing or use of cash collateral on an interim basis and court ordered or
5 Business  Days,  whichever  is  greater,  notice in advance of the  hearing to
approve such DIP Financing or use of cash collateral on a final basis, (ii) such
DIP  Financing  (and  any  First  Lien  Obligations  which  arose  prior  to the
Insolvency Proceeding) may be secured by Liens on all or a part of the assets of
the  Obligors  which shall be superior in priority to the Liens on the assets of
the Obligors held by any other Person, so long as the aggregate principal amount
of loans  and  letter of credit  accommodations  outstanding  under any such DIP
Financing,  together with the outstanding  principal  amount of the pre-petition
First Lien Obligations, does not exceed the Maximum First Lien Principal Amount,
(iii) so long as the  aggregate  principal  amount of loans and letter of credit
accommodations  outstanding  under  any such DIP  Financing,  together  with the
outstanding  principal amount of the pre-petition  First Lien Obligations,  does
not exceed the Maximum First Lien Principal  Amount  (determined  without giving
effect to clause (c) of the  definition  thereof) plus  $11,000,000,  the Second
Lien  Creditors  will not  request or accept  adequate  protection  or any other
relief in connection  with the use of such cash collateral or such DIP Financing
except as set  forth in  Section  6.2(b)  below,  (iv) so long as the  aggregate
principal amount of loans and letter of credit accommodations  outstanding under
any such DIP Financing,  together with the outstanding  principal  amount of the
pre-petition  First Lien  Obligations,  does not exceed the  Maximum  First Lien
Principal Amount, the Second Lien Creditors will subordinate (and will be deemed
hereunder  to have  subordinated)  the  Second  Priority  Liens (A) to the Liens
securing such DIP Financing  (the "DIP Liens") on the same terms (but on a basis
junior to the Liens of the First Lien  Creditors) as the Liens of the First Lien
Creditors are subordinated thereto (and such subordination will not alter in any
manner the terms of this Agreement),  (B) to any "replacement  Liens" granted to
the First Lien  Creditors  as  adequate  protection  of their  interests  in the
Collateral (the "Senior Adequate  Protection  Liens") and (C) to any "carve-out"
agreed to by the First  Lien  Agents or the other  First  Lien  Creditors  in an
amount not to exceed  $1,000,000  and (v) subject to Section  6.2(b) below,  the
Second Lien  Creditors  shall not  contest or oppose in any manner any  adequate
protection  provided to the First Lien Creditors as adequate protection of their
interests in the  Collateral,  any DIP Financing or

                                       21
<PAGE>

any cash  collateral  use and shall be deemed to have waived any  objections  to
such adequate  protection,  DIP  Financing or cash  collateral  use,  including,
without  limitation,   any  objection  alleging  Obligors'  failure  to  provide
"adequate  protection"  of the  interests  of the Second Lien  Creditors  in the
Collateral, so long as (i) the aggregate principal amount of loans and letter of
credit  accommodations  outstanding under any such DIP Financing,  together with
the outstanding  principal  amount of the pre-petition  First Lien  Obligations,
does not  exceed  the  Maximum  First Lien  Principal  Amount,  (ii) (a) the DIP
Financing does not compel any Obligor to seek confirmation of a specific plan of
reorganization  for which all or substantially all of the material terms are set
forth in the DIP Financing  documentation  or a related  document or (b) the DIP
Financing  documentation or cash collateral order does not expressly require the
liquidation  of the  Collateral  prior  to a  default  under  the DIP  Financing
documentation  or cash  collateral  order  and (iii)  the DIP  Financing  is not
secured by any Lien on any asset or  property  of any Obligor on a basis that is
senior to or pari passu with the Liens  securing  the  Second  Lien  Obligations
unless such Liens are senior to the Liens securing the First-Lien Obligations.

            (b) Adequate Protection. Notwithstanding the foregoing provisions in
this Section 6.2(a), in any Insolvency  Proceeding,  if the First Lien Creditors
(or any subset  thereof) are granted  adequate  protection in the form of Senior
Adequate  Protection  Liens,  the Second Lien  Creditors may seek (and the First
Lien  Creditors may not oppose)  adequate  protection of their  interests in the
Collateral in the form of (i) a replacement  Lien on all of the collateral  that
is  subject to the  Senior  Adequate  Protection  Liens  (the  "Junior  Adequate
Protection Liens"),  which Junior Adequate Protection Liens, if granted, will be
subordinate to all Liens securing the First Lien Obligations (including, without
limitation,  the Senior Adequate  Protection Liens and any "carve-out" agreed to
by the First Lien  Agents or the other  First Lien  Creditors  as  permitted  by
Section 6.2(a)) and any Liens securing  debtor-in-possession  financing (whether
or not constituting DIP Financing) on the same basis as the other Liens securing
the Second Lien Obligations are so subordinated  under this Agreement  (provided
that any failure of the Second  Lien  Creditors  to obtain such Junior  Adequate
Protection   Liens  shall  not  impair  or  otherwise   affect  the  agreements,
undertakings  and  consents  of the Second  Lien  Creditors  pursuant to Section
6.2(a)) and (ii)  superpriority  claims under Section  507(b) of the  Bankruptcy
Code junior in all respects to the  superpriority  claims  granted under Section
507(b) of the  Bankruptcy  Code to the First Lien Creditors on account of any of
the First Lien Obligations or granted under Section  364(c)(1) of the Bankruptcy
Code  with  respect  to  any  debtor-in-possession  financing  (whether  or  not
constituting  DIP  Financing)  or use of  cash  collateral;  provided  that  the
inability  of the Second  Lien  Creditors  to  receive a Lien on  actions  under
Chapter 5 of the  Bankruptcy  Code or  proceeds  thereof  shall not  affect  the
agreements  and waivers set forth in this Section 6.2.  Except as expressly  set
forth  in  this  Section  6.2(b),   the  Second  Lien  Creditors  may  not  seek
post-petition  interest  and/or adequate  protection  payments in any Insolvency
Proceeding,  and the First Lien Creditors may oppose any payments proposed to be
made by any Obligor to the Second Lien Creditors (including, without limitation,
any payments  which the Second Lien Lenders may seek under the last paragraph of
this Section  6.2(b)).  Furthermore,  in the event that any Second Lien Creditor
actually receives any post-petition interest and/or adequate protection payments
in any Insolvency  Proceeding in violation of this Agreement,  the same shall be
segregated  and held in trust and  promptly  paid over to the First Lien Agents,
for the benefit of the First Lien Creditors,  in the same form as received, with
any necessary  endorsements,  and each Second Lien Creditor hereby authorize the
First Lien  Agents to make any such  endorsements  as agent for the Second  Lien
Agent (which  authorization,  being coupled with an interest, is irrevocable) to
be

                                       22
<PAGE>

held and/or applied by the First Lien Agents in accordance with the terms of the
First Lien Documents  until all First Lien  Obligations  are Paid in Full before
any of the same shall be made to one or more of the Second Lien  Creditors,  and
each Second  Lien  Creditor  irrevocably  authorizes,  empowers  and directs any
debtor,  debtor  in  possession,   receiver,  trustee,  liquidator,   custodian,
conservator or other Person having  authority,  to pay or otherwise  deliver all
such payments to the First Lien Agents.

            Notwithstanding the foregoing  provisions in this Section 6.2(b), in
any Insolvency Proceeding, the Second Lien Agent and Second Lien Creditors shall
only be permitted to seek  adequate  protection  with respect to their rights in
the  Collateral  in any  Insolvency  Proceeding  in the  form of (A)  additional
collateral  including  replacement Liens on post-petition  collateral;  provided
that,  as adequate  protection  for the First Lien  Obligations,  the First Lien
Agents, on behalf of the First Lien Creditors, are also granted a senior Lien on
such additional  collateral;  (B) replacement Liens on the Collateral;  provided
that,  as adequate  protection  for the First Lien  Obligations,  the First Lien
Agents,  on  behalf  of the  First  Lien  Creditors,  are  also  granted  senior
replacement  Liens  on the  Collateral;  (C) an  administrative  expense  claim;
provided that, as adequate protection for the First Lien Obligations,  the First
Lien  Agents,  on  behalf of the  First  Lien  Creditors,  are also  granted  an
administrative  expense  claim  which is senior and prior to the  administrative
expense  claim of the Second Lien Agent and the Second Lien  Creditors;  and (D)
cash payments with respect to interest on the Second Lien Obligations;  provided
either (1) as adequate protection for the First Lien Obligations, the First Lien
Agents, on behalf of the First Lien Claimholders, are also granted cash payments
with  respect  to  interest  on the  First  Lien  Obligations,  or (2) such cash
payments do not exceed an amount equal to the interest accruing on the principal
amount of Second Lien Obligations outstanding on the date such relief is granted
at the interest  rate under the Second Lien Credit  Documents  and accruing from
the date the Second  Lien  Agent is  granted  such  relief.  If any Second  Lien
Creditor receives  post-petition  interest and/or other cash adequate protection
payments  in  an  Insolvency   Proceeding   ("Second  Lien  Adequate  Protection
Payments"),  and the First Lien Creditors do not receive payment in full in cash
of  all  First  Lien  Obligations   upon  the   effectiveness  of  the  plan  of
reorganization  for, or conclusion of, that  Insolvency  Proceeding,  then, each
Second Lien Creditor  shall pay over to the First Lien  Creditors an amount (the
"Pay-Over  Amount")  equal  to  the  lesser  of (i)  the  Second  Lien  Adequate
Protection  Payments  received by such Second Lien Creditors and (ii) the amount
of the  short-fall  (the "Short Fall") in payment in full of the First Lien Loan
Obligations;  provided  that  to  the  extent  any  portion  of the  Short  Fall
represents  payments  received  by the  First  Lien  Creditors  in the  form  of
promissory notes,  equity or other property,  equal in value to the cash paid in
respect of the Pay-Over Amount,  the First Lien Creditors shall, upon receipt of
the Pay-Over Amount,  transfer those promissory notes, equity or other property,
equal in value  to the  cash  paid in  respect  of the  Pay-Over  Amount  to the
applicable   Second  Lien  Creditors  in  exchange  for  the  Pay-Over   Amount.
Notwithstanding  anything herein to the contrary, the First Lien Creditors shall
not be deemed to have consented to, and expressly  retain their rights to object
to the  grant  of  adequate  protection  in the form of  additional  collateral,
administrative  expense  claims and cash  payments to the Second Lien  Creditors
made pursuant to this paragraph.

      6.3 Sale of Collateral; Waivers. The Second Lien Creditors agree that they
will not object to or oppose a Disposition of any Collateral  securing the First
Lien  Obligations  (or any  portion  thereof)  free and  clear of Liens or other
claims under Section 363 of the  Bankruptcy  Code or any other  provision of the
Bankruptcy  Code,  if the  First  Lien  Creditors  have  consented

                                       23
<PAGE>

to such  or  Disposition  of  such  assets,  as  long  as all  proceeds  of such
Disposition  received by the First Lien  Creditors  on account of the First Lien
Obligations will be applied to the First Lien Obligations to permanently  reduce
the Maximum First Lien Principal Amount; provided that the Second Lien Agent, on
behalf of itself and the other Second Lien  Creditors,  may raise any objections
to any such  Disposition of such Collateral that could be raised by any creditor
of the Obligors  whose claims were not secured by any Liens on such  Collateral,
provided such objections are not  inconsistent  with any other term or provision
of this  Agreement  and are not based on the status of the Second  Lien Agent or
the Second Lien Creditors as secured creditors  (without limiting the foregoing,
neither  the  Second  Lien  Agent nor the Second  Lien  Creditors  may raise any
objections based on rights afforded by Sections 363(e) and (f) of the Bankruptcy
Code to secured  creditors  (or by any  comparable  provision of any  Bankruptcy
Law)) with  respect to the Liens  granted to the Second Lien  Agent.  The Second
Lien  Agent and the  Second  Lien  Creditors  waive  any  claim  they may now or
hereafter  have  arising  out of  the  First  Lien  Creditors'  election  in any
proceeding instituted under Chapter 11 of the Bankruptcy Code of the application
of Section  1111(b)(2)  of the  Bankruptcy  Code.  The Second Lien Agent and the
Second Lien Creditors  agree not to initiate or prosecute or join with any other
Person to  initiate  or  prosecute  any claim,  action or other  proceeding  (i)
challenging  the  enforceability  of the First Lien  Creditors'  claims as fully
secured claims with respect to all or part of the First Lien  Obligations or for
allowance  of  any  First  Lien  Obligations   (including  those  consisting  of
post-petition  interest,  fees or  expenses) or opposing any action by the First
Lien  Agents or the First Lien  Creditors  to enforce  their  rights or remedies
arising  under the First Lien  Documents in a manner which is not  prohibited by
the terms of this  Agreement,  (ii)  challenging the  enforceability,  validity,
priority  or  perfected  status of any Liens on assets  securing  the First Lien
Obligations under the First Lien Documents, (iii) asserting any claims which the
Obligors may hold with respect to the First Lien Creditors, (iv) seeking to lift
the  automatic  stay to the extent that such action is opposed by the First Lien
Agents or (v)  opposing a motion by the First Lien Agents to lift the  automatic
stay. The First Lien  Creditors  agree not to initiate or prosecute or join with
any person to initiate or prosecute any claim,  action or other  proceeding  (i)
challenging the  enforceability  of the Second Lien  Creditors'  claims as fully
secured claims with respect to all or part of the Second Lien Obligations or for
allowance  of  any  Second  Lien  Obligations  (including  those  consisting  of
post-petition  interest,  fees or expenses) or opposing any action by the Second
Lien Agent or the Second  Lien  Creditors  to enforce  their  rights or remedies
arising under the Second Lien  Documents in a manner which is not  prohibited by
the terms of this  Agreement,  (ii)  challenging the  enforceability,  validity,
priority or  perfected  status of any Liens on assets  securing  the Second Lien
Obligations  under the Second Lien Documents or (iii) asserting any claims which
the Obligors may hold with respect to the Second Lien Creditors.

      6.4  Invalidated  Payments.  To the extent  that the First Lien  Creditors
receive  payments on the First Lien  Obligations  or proceeds of Collateral  for
application to the First Lien Obligations  which are  subsequently  invalidated,
declared to be  fraudulent  or  preferential,  set aside  and/or  required to be
repaid to a trustee,  receiver  or any other  party  under any  Bankruptcy  Law,
common law, equitable cause or otherwise (and whether as a result of any demand,
settlement,  litigation or otherwise) (each a "First Lien  Avoidance"),  then to
the extent of such  payment or  proceeds  received,  such  Obligations,  or part
thereof,  intended to be satisfied by such payment or proceeds  shall be revived
and  continue in full force and effect as if such  payments or proceeds  had not
been received by the First Lien Creditors,  and this  Agreement,  if theretofore
terminated,  shall be reinstated in full force and effect as of the date of such
First Lien Avoidance,

                                       24
<PAGE>

and such prior termination  shall not diminish,  release,  discharge,  impair or
otherwise  affect the Lien priorities and the relative rights and obligations of
the First Lien Creditors and the Second Lien Creditors  provided for herein with
respect to any event occurring on or after the date of such First Lien Avoidance
except to the extent  the Second  Lien  Creditors  share in any such  benefit as
unsecured creditors.  The Second Lien Creditors agree that none of them shall be
entitled to benefit  from any First Lien  Avoidance,  whether by  preference  or
otherwise,  it being  understood  and agreed that the benefit of such First Lien
Avoidance otherwise allocable to them shall instead be allocated and turned over
for  application  in accordance  with the priorities set forth in this Agreement
except to the extent  the Second  Lien  Creditors  share in any such  benefit as
unsecured creditors.

      6.5 Payments.  In the event of any Insolvency  Proceeding involving one or
more Obligors, all Proceeds (including,  without limitation,  any Proceeds which
would otherwise,  but for the terms hereof, be payable or deliverable in respect
of the Second Lien Secured  Claim) shall be paid or delivered  directly to First
Lien Agents (to be held and/or  applied by First Lien Agents in accordance  with
the terms of the First Lien Documents) until all First Lien Obligations are Paid
in Full  before any of the same shall be made to one or more of the Second  Lien
Creditors  on account of any Second  Lien  Secured  Claim,  and each Second Lien
Creditor  irrevocably  authorizes,  empowers  and directs any debtor,  debtor in
possession,  receiver,  trustee,  liquidator,  custodian,  conservator  or other
Person  having  authority,  to pay or  otherwise  deliver  all such  Proceeds in
respect of any Second Lien  Secured  Claim to the First  Lien.  Each Second Lien
Creditor also irrevocably  authorizes and empowers the First Lien Agents, in the
name of each Second Lien Creditor,  to demand,  sue for, collect and receive any
and all such  Proceeds in respect of any Second Lien Secured  Claim to which the
First Lien  Creditors  are  entitled  hereunder.  In the event of any payment or
distribution received by the Second Lien Creditors in respect of any Second Lien
Deficiency,  the Second Lien Creditors  shall be entitled to retain such payment
or  distribution  to the  extent the same have been paid  pursuant  to a plan of
reorganization  which is  confirmed  pursuant  to a Final  Order  regardless  of
whether such plan of  reorganization  has received the  affirmative  vote of all
classes composed of the First Lien Creditors' claims.

      6.6 Separate Grants of Security and Separate  Classification.  Each Second
Lien Creditor  acknowledges  and agrees that (a) the grants of Liens pursuant to
the First Lien Documents and the Second Lien  Documents  constitute two separate
and distinct  grants of Liens and (b) because of their  differing  rights in the
Collateral,  the Second Lien Secured Claims are fundamentally different from the
First Lien  Secured  Claims  and must be  separately  classified  in any plan of
reorganization proposed or adopted in an Insolvency Proceeding.  The Second Lien
Creditors  shall not seek in any Insolvency  Proceeding to be treated as part of
the same class of creditors as the First Lien Creditors and shall not oppose any
pleading or motion by the First Lien  Creditors for the First Lien Creditors and
the  Second  Lien  Creditors  to be treated as  separate  classes of  creditors.
Notwithstanding  the  foregoing,  if it is held that the  Secured  Claims of the
First Lien  Creditors and the Second Lien Creditors in respect of the Collateral
constitute  only one secured claim  (rather than separate  classes of senior and
junior secured claims),  then the Second Lien Creditors  hereby  acknowledge and
agree that all distributions  shall be made as if there were separate classes of
senior  and  junior  secured  claims  against  the  Obligors  in  respect of the
Collateral,  with the effect being that, to the extent that the aggregate  value
of the Collateral  exceeds the amount of the First Lien  Obligations,  the First
Lien Creditors shall be entitled to

                                       25
<PAGE>

receive,  in addition to amounts  distributed  to them in respect of  principal,
pre-petition  interest  and  other  claims,  all  amounts  owing in  respect  of
post-petition  interest,  and fees, costs and charges incurred subsequent to the
commencement of the applicable  Insolvency Proceeding before any distribution is
made in respect of any of the claims  held by the  Second  Lien  Creditors.  The
Second Lien  Creditors  hereby  acknowledge  and agree to turn over to the First
Lien Creditors  amounts  otherwise  received or receivable by them to the extent
necessary  to  effectuate  the intent of the  preceding  sentence,  even if such
turnover  has the effect of  reducing  the claim or  recovery of the Second Lien
Creditors.

      6.7 Rights as Unsecured  Lenders.  In any  Insolvency  Proceeding,  to the
extent not expressly prohibited by this Agreement, the Second Lien Creditors may
take any action, file any pleading, appear in any proceeding and exercise rights
and  remedies  whether as  unsecured  lenders or  otherwise.  In any  Insolvency
Proceeding,  to the  extent not  prohibited  by this  Agreement,  the First Lien
Creditors may take any action,  file any pleading,  appear in any proceeding and
exercise rights and remedies whether as unsecured lenders or otherwise.

      6.8  Reorganization  Securities.  If, in any Insolvency  Proceeding,  debt
obligations of the reorganized  debtor secured by Liens upon any property of the
reorganized  debtor are  distributed  pursuant  to a plan of  reorganization  or
similar   dispositive   restructuring  plan,  both  on  account  of  First  Lien
Obligations and on account of Second Lien  Obligations,  then, to the extent the
debt  obligations  distributed on account of the First Lien  Obligations  and on
account  of the  Second  Lien  Obligations  are  secured  by Liens upon the same
property, the provisions of this Agreement will survive the distribution of such
debt  obligations  pursuant  to such plan and will apply with like effect to the
Liens securing such debt obligations.

      Section 7. Miscellaneous.

      7.1  Termination.  Subject to Section 5.5, this Agreement  shall terminate
and be of no further  force and effect upon the first to occur of the Payment in
Full of (a) the First Lien Obligations or (b) the Second Lien Obligations.

      7.2 Successors and Assigns; No Third Party Beneficiaries.

            (a) This Agreement  shall be binding upon each Secured  Creditor and
its  respective  successors  and  assigns and shall inure to the benefit of each
Secured Creditor and its respective  successors,  participants  and assigns.  No
other Person shall have or be entitled to assert rights or benefits hereunder.

            (b) Each Secured Creditor reserves the right to grant participations
in, or otherwise sell, assign,  transfer or negotiate all or any part of, or any
interest in, their  respective  Obligations;  provided that no Secured  Creditor
shall be  obligated  to give any  notices to or  otherwise  in any  manner  deal
directly with any  participant in the  Obligations  and no participant  shall be
entitled  to any rights or benefits  under this  Agreement,  except  through the
Secured Creditor with which it is a participant.

            (c) In  connection  with  any  participation  or other  transfer  or
assignment,  a Secured  Creditor (i) may,  subject to its respective  Documents,
disclose to such  assignee,  participant  or other  transferee  or assignee  all
documents and information  which such Secured

                                       26
<PAGE>

Creditor now or hereafter may have relating to any Obligor or the Collateral and
(ii) shall  disclose to such  participant  or other  transferee  or assignee the
existence and terms and conditions of this Agreement.

      7.3 Notices. All notices and other  communications  provided for hereunder
shall be in writing and shall be mailed,  sent by overnight courier,  telecopied
or delivered, as follows:

            (a)  if to First Lien Agents, to them at the following addresses:

                 c/o Churchill Financial LLC, as First Lien Administrative Agent
                 400 Park Avenue, Suite 1510
                 New York, New York 10022
                 Attention: Carey Davidson, Vice President
                 Telephone: (212) 763-4640
                 Telecopier: (212) 763-4641

            with a copy to:

                 Paul, Hastings, Janofsky & Walker LLP
                 75 East 55th Street
                 New York, New York 10022
                 Attention: Mario J. Ippolito, Esq.
                 Telephone: (212) 318-6000
                 Telecopier: (212) 319-4090
            and:

                 Ableco Finance LLC, as First Lien Collateral Agent
                 c/o Cerberus Capital Management
                 299 Park Avenue
                 New York, New York 10171
                 Attention: Keith Read
                 Telephone: (212) 891-2100
                 Telecopier: (212) 739-1212

            with a copy to:

                 Schulte Roth & Zabel LLP
                 919 Third Avenue
                 New York, New York 10022
                 Attention: Eliot Relles, Esq.
                 Telephone: (212) 756-2199
                 Telecopier: (212) 593-5955

                                       27
<PAGE>

(b) if to Second Lien Agent, to it at the following address:

                 Clearlake Capital Group, L.P.
                 650 Madison Avenue, Third Floor
                 New York, New York 10022
                 Attention: Behdad Eghbali and Jose Feliciano
                 Telephone: (212) 610-9000
                 Telecopier: (212) 610-9121

            with a copy to:

                 Milbank, Tweed, Hadley & McCloy LLP
                 601 S. Figueroa St, 30th Floor
                 Los Angeles, CA  90017
                 Attention: Melainie K. Mansfield, Esq.
                 Telephone: (213) 892-4611
                 Telecopier: (213) 629-5063

or, as to each party, at such other address as shall be designated by such party
in a written notice to the other parties complying as to delivery with the terms
of this  Section  7.3.  All  such  notices  and  other  communications  shall be
effective  (i) if  sent by  registered  mail,  return  receipt  requested,  when
received or 3 Business  Days after  mailing,  whichever  first  occurs,  (ii) if
telecopied,  when transmitted and a confirmation is received,  provided the same
is on a Business Day and, if not, on the next Business Day or (iii) if delivered
by messenger  or overnight  courier,  upon  delivery,  provided the same is on a
Business Day and, if not, on the next Business Day.

      7.4 Counterparts.  This Agreement may be executed by the parties hereto in
several  counterparts,  and  each  such  counterpart  shall be  deemed  to be an
original  and all of  which  shall  constitute  together  but  one and the  same
agreement.

      7.5 GOVERNING LAW; CONSENT TO JURISDICTION  AND VENUE.  THIS AGREEMENT AND
THE  OBLIGATIONS  ARISING  HEREUNDER  SHALL BE GOVERNED  BY, AND  CONSTRUED  AND
ENFORCED IN  ACCORDANCE  WITH,  THE LAWS OF THE STATE OF NEW YORK  APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN SUCH STATE AND ANY APPLICABLE LAWS OF THE UNITED
STATES OF AMERICA.  EACH OF THE PARTIES  HERETO HEREBY  CONSENTS AND AGREES THAT
THE  STATE  OR  FEDERAL  COURTS  LOCATED  IN  NEW  YORK,  NEW  YORK  SHALL  HAVE
JURISDICTION  TO HEAR AND  DETERMINE  ANY CLAIMS OR  DISPUTES  AMONG THE PARTIES
HERETO  PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATING
TO THIS AGREEMENT; PROVIDED THAT THE PARTIES HERETO ACKNOWLEDGE THAT ANY APPEALS
FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT  LOCATED  OUTSIDE OF NEW YORK,
NEW YORK. EACH OF THE PARTIES HERETO  EXPRESSLY  SUBMITS AND CONSENTS IN ADVANCE
TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH
OF THE PARTIES  HERETO HEREBY WAIVES ANY OBJECTION  WHICH IT MAY HAVE BASED UPON
LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS.

                                       28
<PAGE>

      7.6 MUTUAL  WAIVER OF JURY TRIAL.  THE PARTIES  HERETO  WAIVE ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION,  SUIT OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, BETWEEN THE PARTIES ARISING OUT
OF, CONNECTED WITH,  RELATED TO, OR INCIDENTAL TO THE  RELATIONSHIP  ESTABLISHED
BETWEEN THEM IN CONNECTION  WITH,  THIS  AGREEMENT OR THE  TRANSACTIONS  RELATED
THERETO.

      7.7 Amendments. No amendment or waiver of any provision of this Agreement,
and no consent to any  departure by any Person from the terms  hereof,  shall in
any event be  effective  unless it is in writing  and signed by the Second  Lien
Agent,  with the consent of the  Requisite  Second Lien  Creditors and the First
Lien Agents, with the consent of the "Required Lenders" (as defined in the First
Lien Loan  Agreement).  In no event shall the consent of any Obligor be required
in connection with any amendment or other modification of this Agreement.

      7.8 No Waiver.  No failure or delay on the part of any Secured Creditor in
exercising  any power or right under this  Agreement  shall  operate as a waiver
thereof,  nor shall any  single or partial  exercise  of any such power or right
preclude  any other or further  exercise  thereof or the  exercise  of any other
power or right.

      7.9  Severability.  Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability  without  invalidating the
remaining   provisions   of  this   Agreement  or  affecting   the  validity  or
enforceability of such provisions in any other jurisdiction.

      7.10 Further Assurances.  Each party hereto agrees to cooperate fully with
each  other  party  hereto to  effectuate  the  intent  and  provisions  of this
Agreement  and,  from time to time,  to execute  and  deliver  any and all other
agreements,  documents or instruments, and to take such other actions, as may be
reasonably  necessary or desirable to  effectuate  the intent and  provisions of
this Agreement.

      7.11 Headings.  The section  headings  contained in this Agreement are and
shall  be  without  meaning  or  content  whatsoever  and are  not  part of this
Agreement.

      7.12 Lien Priority Provisions.  This Agreement and the rights and benefits
hereunder shall inure solely to the benefit of the First Lien Agents,  the First
Lien Creditors,  the Second Lien Agent,  and the Second Lien Creditors and their
respective  successors and permitted  assigns and no other Person (including the
Obligors or any trustee,  receiver, debtor in possession or bankruptcy estate in
a bankruptcy or like  proceeding)  shall have or be entitled to assert rights or
benefits hereunder.  Nothing contained in this Agreement is intended to or shall
impair the obligation of any Obligor to pay the Obligations as and when the same
shall become due and payable in accordance  with their  respective  terms, or to
affect the relative  rights of the lenders of any Obligor,  other than the First
Lien Agents,  the First Lien  Creditors,  the Second Lien Agent,  and the Second
Lien Creditors as between themselves.

      7.13 Credit Analysis.  The Secured Creditors shall each be responsible for
keeping themselves  informed of (a) the financial  condition of the Obligors and
all other all endorsers,

                                       29
<PAGE>

obligors and/or  guarantors of the  Obligations and (b) all other  circumstances
bearing upon the risk of  nonpayment  of the  Obligations.  No Secured  Creditor
shall have any duty to advise any other Secured Creditor of information known to
it regarding such condition or any such other circumstances. No Secured Creditor
assumes any liability to any other Secured  Creditor or to any other Person with
respect  to:  (i) the  financial  or  other  condition  of  Obligors  under  any
instruments   of   guarantee   with  respect  to  the   Obligations,   (ii)  the
enforceability,  validity,  value  or  collectibility  of the  Obligations,  any
Collateral  therefor or any guarantee or security which may have been granted in
connection  with any of the Obligations or (iii) any Obligor's title or right to
transfer any Collateral or security.

      7.14 Waiver of Claims.  To the maximum extent permitted by law, each party
hereto waives any claim it might have against any Secured  Creditor with respect
to, or arising  out of, any action or failure to act or any error of judgment or
negligence,  mistake  or  oversight  whatsoever  on the part of any other  party
hereto or their respective directors, officers, employees or agents with respect
to any exercise of rights or remedies  under the  Documents  or any  transaction
relating to the Collateral in accordance  with this Agreement  other than claims
resulting  primarily from the gross negligence or willful conduct of any Secured
Creditor or its  directors,  officers,  employees or agents as  determined  by a
court of competent  jurisdiction  in a final  non-appealable  judgment or order.
None of the Secured Creditors, nor any of their respective directors,  officers,
employees  or agents  shall be liable for failure to demand,  collect or realize
upon  any of  the  Collateral  or for  any  delay  in  doing  so or,  except  as
specifically  provided  herein,  shall be under any obligation to Dispose of any
Collateral upon the request of any Obligor or any Secured  Creditor or any other
Person or to take any other action  whatsoever  with regard to the Collateral or
any part thereof.

      7.15  Conflicts.  In the event of any conflict  between the  provisions of
this  Agreement and the  provisions  of the  Documents,  the  provisions of this
Agreement shall govern.

      7.16 Specific Performance. Each of First Lien Agents and Second Lien Agent
may demand  specific  performance of this Agreement and, on behalf of itself and
the respective other Secured  Creditors,  hereby  irrevocably waives any defense
based on the  adequacy  of a remedy at law and any other  defense  that might be
asserted to bar the remedy of specific  performance  in any action  which may be
brought by the respective Secured Creditors.

      7.17 Provisions  Solely to Define Relative Rights.  The provisions of this
Agreement  are and are intended  solely for the purpose of defining the relative
rights of the Secured  Creditors.  None of the  Obligors  or any other  creditor
thereof  shall have any rights  hereunder,  and none of the Obligors may rely on
the terms hereof.  Nothing in this  Agreement is intended to or shall impair the
obligations of Obligors, which are absolute and unconditional,  to pay the First
Lien  Obligations  and the Second  Lien  Obligations  as and when the same shall
become due and payable in accordance with their terms.

      7.18  Subrogation.  The  Second  Lien  Agent  and the  other  Second  Lien
Creditors  hereby agree that until the First Lien  Termination Date has occurred
they will not  assert  any  rights of  subrogation  it or they may  acquire as a
result of any payment hereunder;  provided that as between the Obligors,  on the
one hand,  and the Second Lien  Creditors,  on the other hand,  any

                                       30
<PAGE>

such  payment  that is paid  over to the  First  Lien  Agents  pursuant  to this
Agreement shall be deemed not to reduce any of the Second Lien Obligation.

      7.19 Entire Agreement.  This Agreement and the Documents embody the entire
agreement of the Obligors, the First Lien Agents, the First Lien Creditors,  the
Second  Lien Agent and the Second  Lien  Creditors  with  respect to the subject
matter hereof and thereof and supersede all prior agreements and  understandings
relating to the  subject  matter  hereof and  thereof and any draft  agreements,
negotiations and/or discussions  involving any Obligor and any of the First Lien
Agents,  the First Lien  Creditors,  the Second  Lien Agent and the Second  Lien
Creditors relating to the subject matter hereof.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                       31
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their respective officers thereunto duly authorized as of the day
and year first above written.

                              FIRST LIEN ADMINISTRATIVE AGENT:
                              --------------------------------

                              CHURCHILL FINANCIAL LLC, as First Lien
                              Administrative Agent

                              By:/s/ Christopher Cox
                                 ---------------------
                              Name: Christopher Cox
                              Title: Managing Director

                              FIRST LIEN COLLATERAL AGENT:
                              ----------------------------

                              ABLECO FINANCE LLC, as First Lien Collateral Agent

                              By: /s/ Daniel Wolf
                                  ---------------
                              Name: Daniel Wolf
                              Title: President

                              SECOND LIEN AGENT:
                              ------------------

                              CLEARLAKE CAPITAL GROUP, L.P.

                              By: CCG Operations, LLC
                              Its: General Partner

                              By: /s/ Behdad Eghbali
                                  -----------------------
                              Name: Behdad Eghbali
                              Title: Authorized Signatory

                                       32
<PAGE>

            Each  of the  undersigned  hereby  acknowledges  and  agrees  to the
foregoing terms and provisions.

                                   BORROWER:
                                   ---------

                                          GOAMERICA, INC.

                                          By: /s/ Daniel R. Luis
                                              --------------------------
                                          Name: Daniel R. Luis
                                          Title: Chief Executive Officer

                                   OBLIGORS:
                                   ---------

                                          HOVRS ACQUISITION CORPORATION

                                          By: /s/ Daniel R. Luis
                                              --------------------------
                                          Name: Daniel R. Luis
                                          Title: Chief Executive Officer

                                          GOAMERICA RELAY SERVICES CORP.

                                          By: /s/ Daniel R. Luis
                                              --------------------------
                                          Name: Daniel R. Luis
                                          Title: Chief Executive Officer

                                          GOAMERICA COMMUNICATIONS CORP.

                                          By: /s/ Daniel R. Luis
                                              --------------------------
                                          Name: Daniel R. Luis
                                          Title: Chief Executive Officer

                                          WYND COMMUNICATIONS CORPORATION

                                          By: /s/ Daniel R. Luis
                                              --------------------------
                                          Name: Daniel R. Luis
                                          Title: Chief Executive Officer

                                       33
<PAGE>

                                          HANDS ON VIDEO RELAY SERVICES INC.

                                          By: /s/ Daniel R. Luis
                                              -----------------------------
                                          Name: Daniel R. Luis
                                          Title: Co-Chief Executive Officer

                                          HOTPAPER.COM, INC.

                                          By: /s/ Daniel R. Luis
                                              --------------------------
                                          Name: Daniel R. Luis
                                          Title: Chief Executive Officer

                                          OUTBACK RESOURCE GROUP, INC.

                                          By: /s/ Daniel R. Luis
                                              --------------------------
                                          Name: Daniel R. Luis
                                          Title: Chief Executive Officer

                                          HOSLS ACQUISITION CORPORATION

                                          By: /s/ Daniel R. Luis
                                              --------------------------
                                          Name: Daniel R. Luis
                                          Title: Chief Executive Officer

                                       34Exhibit 10.6

                                                               Execution Version

                              AMENDED AND RESTATED
                            INVESTOR RIGHTS AGREEMENT

                                 GOAMERICA, INC.

                          Dated as of January 10, 2008

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                                TABLE OF CONTENTS

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1.   DEMAND REGISTRATIONS....................................................  1
     1.1.  Requests for Registration.........................................  1
     1.2.  Demand Notice.....................................................  2
     1.3.  Demand Registration Expenses......................................  2
     1.4.  Short-Form Registrations..........................................  2
     1.5.  Priority on Demand Registrations..................................  3
     1.6.  Restrictions on Demand Registrations..............................  3
     1.7.  Selection of Underwriters.........................................  4
     1.8.  Other Registration Rights.........................................  4

2.   PIGGYBACK REGISTRATIONS.................................................  4
     2.1.  Right to Piggyback................................................  4
     2.2.  Piggyback Expenses................................................  4
     2.3.  Priority on Primary Registrations.................................  5
     2.4.  Priority on Secondary Registrations...............................  5

3.   REGISTRATION GENERALLY..................................................  6
     3.1.  Registration Procedures...........................................  6
     3.2.  Registration Expenses............................................. 10
     3.3.  Participation in Underwritten Offerings........................... 11
     3.4.  Holdback Agreements............................................... 11
           3.4.1.  Securityholder Holdback................................... 11
           3.4.2.  Company Holdback.......................................... 12
     3.5.  Current Public Information........................................ 12

4.   REGISTRATION INDEMNIFICATION............................................ 13
     4.1.  Indemnification by the Company.................................... 13
     4.2.  Indemnification by Holders of Registrable Securities.............. 13
     4.3.  Procedure......................................................... 14
     4.4.  Entry of Judgment; Settlement..................................... 14
     4.5.  Contribution...................................................... 14
     4.6.  Other Rights...................................................... 15

5.   TRANSFER RESTRICTiONS................................................... 15
     5.1.  General Transfer Restrictions..................................... 15
     5.2.  Restrictions on Transfer.......................................... 16
           5.2.1.  Private Transfers......................................... 16
           5.2.2.  Public Transfers.......................................... 16
           5.2.3.  Pledge of Shares.......................................... 16
     5.3.  Automatic Conversion Upon Certain Transfers....................... 16
           5.3.1.  Transfers by Holders of Series A Preferred Stock
                   other than Clearlake Investors ........................... 16
           5.3.2.  Transfers by Clearlake Investors.......................... 16

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           5.3.3.  No Additional Action Required............................. 17
     5.4.  Stop Transfer Instructions........................................ 17

6.   PREEMPTIVE RIGHTS....................................................... 17
     6.1.  Offering.......................................................... 17
     6.2.  Expiration of Subscription Period................................. 18
     6.3.  New Securities.................................................... 18

7.   INFORMATION RIGHTS...................................................... 19

8.   STOCKHOLDER AGREEMENTS.................................................. 19
     8.1.  Board Composition................................................. 19
     8.2.  Amendment to the Certificate of Incorporation..................... 20
     8.3.  No Company Obligations............................................ 20

9.   EXPENSES................................................................ 20

10.  DEFINITIONS............................................................. 20

11.  MISCELLANEOUS........................................................... 24
     11.1. No Inconsistent Agreements........................................ 24
     11.2. Remedies 24
     11.3. Amendment and Waiver.............................................. 24
     11.4. Successors and Assigns; Transferees............................... 25
     11.5. Severability...................................................... 26
     11.6. Counterparts...................................................... 26
     11.7. Descriptive Headings.............................................. 26
     11.8. Notices .......................................................... 26
     11.9. Delivery by Facsimile............................................. 27
     11.10.Governing Law..................................................... 27
     11.11.Jurisdiction; Submission to Jurisdiction; Waivers................. 27
     11.12.Waiver of Jury Trial.............................................. 27
     11.13.Termination....................................................... 28

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                 AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

      This Amended and Restated Investor Rights Agreement (this  "Agreement") is
made as of January 10, 2008 (the "Effective Date") by and among:

      (i)   GoAmerica,   Inc.,  a  Delaware   corporation   (together  with  its
            successors and permitted assigns, the "Company");

      (ii)  Each of the shareholders of the Company listed on Schedule A to this
            Agreement and their Permitted Transferees under this Agreement (each
            a "Clearlake Investor" and, collectively the "Clearlake Investors");

      (iii) Each of the shareholders of the Company listed on Schedule B to this
            Agreement  (each  a  "HOVRS  Party"  and,  collectively  the  "HOVRS
            Parties"); and

      (iv)  such other  Persons,  if any, that from time to time become  parties
            hereto pursuant to Section 11.4 hereof (collectively,  together with
            the Clearlake Investors, the "Investors").

                                    RECITALS

      WHEREAS,  the  Company  and the  Clearlake  Investors  are parties to that
certain Stock Purchase  Agreement dated as of August 1, 2007 (the "Initial Stock
Purchase  Agreement"),  pursuant  to which the Company  issued to the  Clearlake
Investors  290,135 shares of Series A Preferred Stock of the Company,  par value
$.01 per share.

      WHEREAS,  the  Company  and the  Clearlake  Investors  are parties to that
certain Amended and Restated Stock Purchase  Agreement dated as of September 12,
2007 (the  "Acquisition  Stock Purchase  Agreement" and,  collectively  with the
Initial Stock Purchase  Agreement,  the "Clearlake Stock Purchase  Agreements"),
pursuant  to which the Company  has agreed to sell to the  Clearlake  Investors,
subject  to the  satisfaction  or waiver of the  conditions  specified  therein,
7,446,809 additional shares of Series A Preferred Stock of the Company.

      WHEREAS, the parties hereto desire to enter into this Agreement to provide
for the investor and governance rights set forth herein.  Unless otherwise noted
in this  Agreement,  capitalized  terms used herein  shall have the meanings set
forth in Section 10.

                                    AGREEMENT

      NOW, THEREFORE, the parties to this Agreement hereby agree as follows:

1. DEMAND REGISTRATIONS.

      1.1.  Requests  for  Registration.  At any time a Clearlake  Investor  may
initiate the  registration  of Common  Stock to be sold in a Public  Offering (a
"Demand  Registration").  Subject to the other  provisions  of this Section 1, a
Clearlake  Investor may initiate (on behalf of itself, any of its Affiliates and
other holders of Registrable  Securities) three (3) registrations of all or part
of  their  Registrable  Securities  on  Form  S-1 or any  similar  or  successor
long-form

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registration  ("Long-Form  Registrations"),  and,  if the Company is eligible to
utilize  a   registration   statement   on  Form  S-3  for  resales  by  selling
stockholders,  an  unlimited  (but no more  than two such  registrations  in any
twelve month period) number of registrations of all or part of their Registrable
Securities  on Form S-3 or any  similar  or  successor  short-form  registration
("Short-Form  Registrations");  provided in each case that the  aggregate  gross
offering price of the Registrable  Securities  requested to be registered in any
Long Form  Registration  pursuant to this  Section  must be at least  $5,000,000
unless the Registrable  Securities requested to be registered  constitute all of
the  Registrable  Securities  then  held  by  such  Clearlake  Investor  and its
Affiliates;  and provided,  further, that the Company shall have no liability to
any Investor or HOVRS Party with respect to any  conditions  that the Securities
and  Exchange  Commission  may impose  with  respect  to any such  registration,
including any conditions that the Securities and Exchange  Commission may impose
upon the utilization of Rule 415 in connection with any such registration.

      1.2. Demand Notice. All requests for Demand Registrations shall be made by
giving  written  notice to the Company (a "Demand  Notice").  Each Demand Notice
shall specify the approximate number of Registrable  Securities  requested to be
registered.  Within ten (10) days after receipt of any such Demand  Notice,  the
Company will give written notice of such requested registration to (i) all other
holders of  Registrable  Securities and (ii) to all Holders under and as defined
in that certain Lock-Up and Registration  Rights Agreement,  dated as of January
10, 2008,  by and among the Company and certain of the HOVRS Parties (the "HOVRS
Registration  Rights  Agreement" and each such Holder, a "HOVRS  Holder"),  and,
subject to Section 1.5, the Company will use its commercially reasonable efforts
to  include  in  such  registration  (and  in  all  related   registrations  and
qualifications  under blue sky laws or in  compliance  with  other  registration
requirements and in any related underwriting) all Registrable Securities and all
Registrable  Securities  under and as defined in the HOVRS  Registration  Rights
Agreement ("HOVRS Registrable Securities") with respect to which the Company has
received  written  requests  for  inclusion  therein  within  15 days  after the
delivery of the Company's notice.

      1.3. Demand Registration  Expenses.  The Company will pay all Registration
Expenses in connection with any registration initiated as a Demand Registration,
whether or not it has become effective.

      1.4.  Short-Form  Registrations.  Subject to the  qualifications set forth
herein  and  subject  to  any  limitations  that  the  Securities  and  Exchange
Commission may impose, (i) Demand Registrations will be Short-Form Registrations
whenever the Company is permitted to use any applicable  short-form  (unless the
managing underwriter(s) of such offering requests the Company to use a Long-Form
Registration  in order  to sell  all of the  Registrable  Securities  and  HOVRS
Registrable  Securities  requested to be sold) and (ii) the Clearlake  Investors
may, in connection with any Demand  Registration  requested by such holders that
is a  Short-Form  Registration,  require  the  Company  to use its  commercially
reasonable efforts to file such Short-Form  Registration with the Securities and
Exchange  Commission  in  accordance  with and  pursuant  to Rule 415  under the
Securities Act (or any successor rule then in effect) including,  if the Company
is then  eligible,  as an  automatic  shelf  registration  statement  (any  such
Short-Form  Registration,  a "Shelf Registration").  Notwithstanding anything in
this  Agreement to the  contrary,  if the  Securities  and  Exchange  Commission
refuses to declare a  registration  statement  filed  pursuant to this Agreement
effective as a valid secondary offering under Rule 415 due to

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the number of Registrable  Securities and HOVRS Registrable  Securities included
in such registration  statement relative to the number of shares of Common Stock
outstanding  or the  number  of  outstanding  shares  of  Common  Stock  held by
non-affiliates or for any other reason,  then,  without any liability under this
Agreement  or  any  further  obligation  to  register  such  excess  Registrable
Securities and HOVRS Registrable  Securities,  the Company shall be permitted to
reduce the number of  Registrable  Securities and HOVRS  Registrable  Securities
included in such registration statement (pro rata, based on the number of shares
requested to be registered, among the holders of such Registrable Securities and
HOVRS  Registrable  Securities) to an amount that does not exceed an amount that
the Securities  and Exchange  Commission  allows for the offering  thereunder to
qualify as a valid  secondary  offering under Rule 415. The Company shall not be
liable for damages  under this  Agreement as to any  Registrable  Securities  or
HOVRS  Registrable  Securities  which are not  permitted by the  Securities  and
Exchange Commission to be included in a registration statement due to Securities
and Exchange Commission guidance relating to Rule 415.

      1.5.  Priority on Demand  Registrations.  The Company shall not include in
any Demand  Registration any securities which are not Registrable  Securities or
HOVRS  Registrable  Securities  without the prior receipt of Majority  Clearlake
Investor Approval.  If a Demand Registration is an underwritten offering and the
managing  underwriter(s)  advises the Company  that in its opinion the number of
Registrable  Securities  and HOVRS  Registrable  Securities  and,  if  permitted
hereunder,  other securities,  requested to be included in such offering exceeds
the number of Registrable Securities and other securities,  if any, which can be
sold therein without adversely affecting the marketability of the offering, then
the Company  shall include in such  registration,  (a) prior to the inclusion of
any  securities  that  are  not  Registrable  Securities  or  HOVRS  Registrable
Securities,   the  number  of  Registrable   Securities  and  HOVRS  Registrable
Securities  requested to be included in such  offering  that,  in the opinion of
such  managing  underwriter,   can  be  sold  without  adversely  affecting  the
marketability of the offering, pro rata (based on the number of shares requested
to be registered)  among the respective  holders  thereof,  provided that if the
number of  securities  that are  Registrable  Securities  and HOVRS  Registrable
Securities that are included in such offering are less than 75% of the number of
securities  that are  Registrable  Securities and HOVRS  Registrable  Securities
requested to be included in such  offering,  such  offering  shall not count for
purposes of  calculating  the number of Long-Form  Registrations  initiated by a
Majority  Clearlake  Investor,  and  (b)  only  then  securities  that  are  not
Registrable  Securities  or  HOVRS  Registrable  Securities,   if  the  managing
underwriter(s) has advised that such securities may be included.

      1.6.  Restrictions  on  Demand  Registrations.  The  Company  will  not be
obligated to effect any Demand  Registration within 90 days after the closing of
a  Public  Offering  (other  than on Form S-4 or Form  S-8 or any  successor  or
similar form, but including the closing of an underwritten distribution pursuant
to a Shelf Registration), except that if such Public Offering is an underwritten
offering and the managing  underwriter of such Public Offering determines that a
longer period,  not to exceed 180 days, is reasonably  necessary in its opinion,
then such  restricted  period shall  continue for the period  designated  by the
managing underwriter, provided that such period shall not extend beyond 180 days
after the closing of such Public Offering. The Company may postpone for up to 45
days  (from  the date of the  request)  the  filing  or the  effectiveness  of a
registration  statement for a Demand  Registration if and so long as the Company
determines that such Demand Registration would reasonably be expected to have an
adverse effect on any

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proposal  or plan by the  Company  or any of the  Subsidiaries  to engage in any
acquisition  or  disposition  of assets  (other than in the  ordinary  course of
business) or any merger,  consolidation,  tender offer, registration or issuance
of  securities,  financing or other  material  transaction.  The Company may not
postpone  a Demand  Registration  more  than two (2)  times in any  twelve-month
period.

      1.7.  Selection  of  Underwriters.  The  Clearlake  Investor(s)  selling a
majority of the Registrable  Securities to be sold by all Clearlake Investors in
a  Demand  Registration  will  have the  right  to  select  the  underwriter  or
underwriters  to administer  the offering,  provided that such selection will be
subject to the approval of the board of directors of the Company (the  "Board"),
which approval will not be unreasonably withheld.

      1.8. Other  Registration  Rights. The Company represents and warrants that
it is not a party to, or  otherwise  subject  to, any other  agreement  granting
registration rights to any other Person with respect to any equity securities of
the  Company,  other  than  this  Agreement  and the HOVRS  Registration  Rights
Agreement.  Except as provided in this Agreement, the Company shall not grant to
any Person the right to request the Company to register any equity securities of
the Company,  or any securities  convertible or exchangeable into or exercisable
for such securities,  without Majority Clearlake Investor Approval approving the
grant of  registration  rights for such  securities;  provided that without such
approval,  subject  to  Section  6, (a) the  Company  may grant  rights to other
Persons to participate in Demand  Registrations  and Piggyback  Registrations so
long as such rights are  subordinate to the rights of the holders of Registrable
Securities   with   respect  to  such   Demand   Registrations   and   Piggyback
Registrations;  (b) the  Company  may grant  rights to other  Persons to request
registrations  so long as the holders of Registrable  Securities are entitled to
participate in any such registrations with such Persons pro rata on the basis of
the number of Common  Stock owned by each such  holder;  and (c) the Company may
enter into the HOVRS Registration Rights Agreement.

2. PIGGYBACK REGISTRATIONS.

      2.1. Right to Piggyback.  Whenever the Company proposes to register any of
its equity  securities  under the  Securities  Act (other than (a) pursuant to a
Demand Registration, (b) in connection with registration on Form S-4 or Form S-8
or any successor or similar form or (c) in connection  with the  registration of
shares  on Form  S-3 with  respect  to a  dividend  reinvestment  plan)  and the
registration  form to be used may be used for the  registration  of  Registrable
Securities (a "Piggyback  Registration"),  the Company will give prompt  written
notice to all holders of Registrable  Securities of its intention to effect such
a registration  and, subject to Sections 2.3 and 2.4 below, will include in such
registration  all  Registrable  Securities with respect to which the Company has
received  written  requests  for  inclusion  therein  within  15 days  after the
delivery of the  Company's  notice.  Each such Company  notice shall specify the
approximate  number  of  Company  equity  securities  to be  registered  and the
anticipated per share price range for such offering.

      2.2. Piggyback Expenses. The Company will pay all Registration Expenses in
connection   with  all  Piggyback   Registrations,   whether  or  not  any  such
registration becomes effective.

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      2.3. Priority on Primary Registrations.  If a Piggyback Registration is an
underwritten  primary  registration  on behalf of the Company  and the  managing
underwriter(s)  advises the Company that in its opinion the number of securities
requested  to be included in such  registration  exceeds the number which can be
sold in such offering  without  adversely  affecting the  marketability  of such
offering,  the  Company  will  include  in such  registration:  (a)  first,  the
securities the Company proposes to sell, (b) second, the Registrable  Securities
and HOVRS Registrable  Securities requested to be included in such registration,
pro rata (based on the number of shares  requested to be  registered)  among the
holders of such Registrable Securities and HOVRS Registrable Securities, and (c)
third,  but only if all of the  Registrable  Securities  and  HOVRS  Registrable
Securities  requested to be included in such  registration  are included in such
registration,  the  other  securities  requested  to be  included  in  the  such
registration in the manner determined by the Company and such shareholders.

      2.4. Priority on Secondary Registrations.

      (a) If a Piggyback  Registration is an underwritten secondary registration
on  behalf  of  holders  of  HOVRS  Registrable  Securities,  and  the  managing
underwriter(s)  advises the Company that in its opinion the number of securities
requested  to be included in such  registration  exceeds the number which can be
sold in such  offering  without  adversely  affecting the  marketability  of the
offering,  the  Company  will  include  in such  registration:  (a)  first,  the
Registrable Securities and HOVRS Registrable Securities requested to be included
therein by the holders  requesting  registration,  pro rata among the holders of
such  Registrable  Securities  and HOVRS  Registrable  Securities  (based on the
number of shares requested to be registered), (b) second, but only if all of the
Registrable Securities and HOVRS Registrable Securities requested to be included
in such registration are included in such registration,  securities requested by
the  Company to be  included  in such  registration  to the extent the  managing
underwriter(s) advises the Company that such inclusion will not adversely affect
the  marketability  of the  offering,  and  (c)  third,  but  only if all of the
Registrable Securities and HOVRS Registrable Securities requested to be included
in such registration and all securities  requested by the Company to be included
in such  registration  are  included  in  such  registration,  other  securities
requested  to be  included in such  registration,  pro rata among the holders of
such other  securities  permitted  to have  their  securities  included  in such
registration on the basis of the number of shares owned by each such holder,  to
the extent the managing  underwriter(s)  advises the Company that such inclusion
will not adversely affect the marketability of the offering.

      (b) If a Piggyback  Registration is an underwritten secondary registration
on  behalf  of  holders  of  Company  securities  (other  than  the  holders  of
Registrable Securities or the holders of HOVRS Registrable Securities),  and the
managing  underwriter(s)  advises the Company  that in its opinion the number of
securities  requested  to be  included in such  registration  exceeds the number
which can be sold in such offering without adversely affecting the marketability
of the offering,  the Company will include in such registration:  (a) first, the
securities   requested  to  be  included  therein  by  the  holders   requesting
registration,  (b) second, but only if all of the securities described in clause
(a) are included in such registration, securities requested by the Company to be
included in such registration, to the extent the managing underwriter(s) advises
the Company that such inclusion will not adversely  affect the  marketability of
the  offering,  and (c) third,  but only if all of the  securities  described in
clauses (a) and (b) are included in such registration,  Registrable  Securities,
HOVRS Registrable Securities and other securities requested to be

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included in such  registration,  pro rata among the holders of such  Registrable
Securities,  the holders of such HOVRS Registrable Securities and the holders of
such other  securities  permitted  to have  their  securities  included  in such
registration on the basis of the number of shares owned by each such holder,  to
the extent the managing  underwriter(s)  advises the Company that such inclusion
will not adversely affect the marketability of the offering.

3. REGISTRATION GENERALLY.

      3.1.  Registration   Procedures.   Whenever  the  holders  of  Registrable
Securities have requested that any Registrable Securities be registered pursuant
to this  Agreement,  the  Company  will  use its  best  efforts  to  effect  the
registration and the sale of such Registrable  Securities in accordance with the
intended method of disposition  thereof and pursuant thereto the Company will as
expeditiously as reasonably practicable:

                        (a)  prepare  and  (within  60 days after the end of the
            period within which requests for inclusion in such  registration may
            be given to the  Company)  file  with the  Securities  and  Exchange
            Commission a registration statement with respect to such Registrable
            Securities  and thereafter use  commercially  reasonable  efforts to
            cause such registration statement to become effective (provided that
            before  filing  a  registration   statement  or  prospectus  or  any
            amendments  or  supplements  thereto,  the Company  will  furnish to
            counsel  selected by the Clearlake  Investors owning the Registrable
            Securities to be included in any Demand  Registration  copies of all
            such documents proposed to be filed, which documents will be subject
            to review by such counsel);

                        (b) prepare and file with the  Securities  and  Exchange
            Commission  such  amendments and  supplements  to such  registration
            statement and the prospectus used in connection  therewith as may be
            necessary (i) to keep such  registration  statement  effective for a
            period (A) of not less than 180 days (subject to extension  pursuant
            to Section 3.3(b)) or, if such registration  statement relates to an
            underwritten  offering,  such  longer  period as in the  opinion  of
            counsel for the  underwriters  a prospectus is required by law to be
            delivered in connection  with sales of Registrable  Securities by an
            underwriter or dealer,  or (B) in the case of a Shelf  Registration,
            ending  on the  earliest  of (I) the date on which  all  Registrable
            Securities have been sold pursuant to the Shelf Registration or have
            otherwise  ceased  to be  Registrable  Securities,  (II) the  second
            anniversary of the effective date of such Shelf Registration,  (III)
            such other date determined by the Majority  Clearlake  Investors and
            (IV) when all such Registrable  Securities are freely saleable under
            Rule 144(k)  under the  Securities  Act, and (ii) to comply with the
            provisions of the Securities Act with respect to the  disposition of
            all securities  covered by such  registration  statement  until such
            time as all of such  securities  have been disposed of in accordance
            with the intended  methods of  disposition  by the seller or sellers
            thereof set forth in such registration statement;

                        (c) cause (i) any  issuer  free  writing  prospectus  to
            comply  with  the  information  and  legending   requirements  under
            paragraph  (c) of Rule 433 and to be  accompanied  or  preceded by a
            statutory prospectus to the extent required under

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            Rule 433, and (ii) any free writing prospectus or issuer information
            contained in a free writing  prospectus  required to be filed by the
            Company with the Securities and Exchange  Commission under paragraph
            (d)  under  Rule  433  to  be  so  filed  in  accordance  with  such
            requirements;

                        (d)  furnish to each  seller of  Registrable  Securities
            such number of copies of such registration statement, each amendment
            and supplement thereto, in each case, to the extent not available on
            EDGAR,  the  prospectus  included  in  such  registration  statement
            (including   each   preliminary   prospectus),   each  free  writing
            prospectus used in connection with such registration, and such other
            documents  as  such  seller  may  reasonably  request  in  order  to
            facilitate the  disposition of the Registrable  Securities  owned by
            such  seller,  but in all  cases  only  if  such  documents  are not
            available on EDGAR;

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

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

                        (g) use  best  efforts  to cause  all  such  Registrable
            Securities to be listed on each securities exchange or market system
            on which  similar  securities  issued by the Company are then listed
            and, if not so listed, to be listed on the NASD automated  quotation
            system and, if listed on the NASD automated  quotation  system,  use
            commercially  reasonable  efforts to secure  designation of all such
            Registrable  Securities covered by such registration  statement as a
            "NMS Security"  within the meaning of Rule  600(b)(46) of Regulation
            NMS of the

                                       7
<PAGE>

            Securities  and Exchange  Commission  or,  failing  that,  to secure
            NASDAQ authorization for such Registrable Securities;

                        (h) provide a transfer  agent and registrar for all such
            Registrable  Securities  not later than the  effective  date of such
            registration statement;

                        (i) enter  into  such  customary  agreements  (including
            underwriting  agreements in customary  form) and take all such other
            actions  as  the  Clearlake  Investors  owning  a  majority  of  the
            Registrable  Securities  to be included in the  registration  or the
            underwriters,  if any,  reasonably  request in order to  expedite or
            facilitate the  disposition of such  Registrable  Securities  (which
            might include effecting a share split or a combination of shares);

                        (j) make  available  for  inspection  by any  seller  of
            Registrable  Securities,   any  underwriter   participating  in  any
            disposition   pursuant  to  such  registration   statement  and  any
            attorney,  accountant or other agent  retained by any such seller or
            underwriter,  all financial and other records,  pertinent  corporate
            documents  and  properties  of the Company,  and cause the Company's
            officers, directors, employees and independent accountants to supply
            all   information   reasonably   requested   by  any  such   seller,
            underwriter,  attorney,  accountant or agent in connection with such
            registration   statement,   and  to  cooperate  and  participate  as
            reasonably  requested by any such seller in road show presentations,
            in the preparation of the registration statement, each amendment and
            supplement  thereto,  the  prospectus  included  therein,  and other
            activities  as such  seller  may  reasonably  request  in  order  to
            facilitate the  disposition of the Registrable  Securities  owned by
            such seller;

                        (k) otherwise  use  commercially  reasonable  efforts to
            comply with all applicable  rules and  regulations of the Securities
            and Exchange Commission, and make available to its security holders,
            as soon as  reasonably  practicable,  but not  later  than 18 months
            after the effective date of the registration  statement, an earnings
            statement  covering the period of at least twelve  months  beginning
            with the first day of the  Company's  first  full  calendar  quarter
            after  the  effective  date  of the  registration  statement,  which
            earnings  statement shall satisfy the provisions of Section 11(a) of
            the Securities Act and Rule 158 thereunder;

                        (l) in the  event  of the  issuance  of any  stop  order
            suspending the effectiveness of a registration  statement, or of any
            order suspending or preventing the use of any related  prospectus or
            suspending  the  qualification  of any  Securities  included in such
            registration  statement  for sale in any  jurisdiction,  the Company
            will use  commercially  reasonable  efforts  promptly  to obtain the
            withdrawal of such order;

                        (m)  obtain  one or  more  comfort  letters,  dated  the
            effective  date  of  such  registration   statement  (and,  if  such
            registration  includes an underwritten  public  offering,  dated the
            date of the closing under the underwriting agreement), signed by the
            Company's independent registered public accounting firm in the

                                       8
<PAGE>

            then-current  customary  form and covering  such matters of the type
            customarily  covered  from time to time by  comfort  letters  as the
            holders  of a  majority  of the  Registrable  Securities  being sold
            reasonably request;

                        (n)  provide a legal  opinion of the  Company's  outside
            counsel,  dated the effective  date of such  registration  statement
            (and, if such registration includes an underwritten public offering,
            dated the date of the  closing  under the  underwriting  agreement),
            with  respect to the  registration  statement,  each  amendment  and
            supplement  thereto,  the prospectus included therein (including the
            preliminary prospectus) and such other documents relating thereto in
            the  then-current  customary  form and covering  such matters of the
            type customarily covered from time to time by legal opinions of such
            nature (in a form reasonably acceptable to the holders of a majority
            of the Registrable Securities included in the registration);

                        (o) cooperate with the sellers of Registrable Securities
            covered by the registration  statement and the managing  underwriter
            or agent, if any, to facilitate the timely  preparation and delivery
            of certificates (not bearing any restrictive  legends)  representing
            securities to be sold under the registration  statement,  and enable
            such securities to be in such  denominations  and registered in such
            names as the managing  underwriter or agent, if any, or such holders
            may request;

                        (p)  notify  counsel  for  the  sellers  of  Registrable
            Securities included in such registration  statement and the managing
            underwriter or agent, immediately, and confirm the notice in writing
            (i) when the registration statement, or any post-effective amendment
            to the registration  statement,  shall have become effective, or any
            supplement to the prospectus or any amendment  prospectus shall have
            been filed,  (ii) of the receipt of any comments from the Securities
            and Exchange Commission,  (iii) of any request of the Securities and
            Exchange Commission to amend the registration  statement or amend or
            supplement the prospectus or for additional information, and (iv) of
            the issuance by the Securities  and Exchange  Commission of any stop
            order suspending the effectiveness of the registration  statement or
            of any order  preventing  or suspending  the use of any  preliminary
            prospectus,  or of  the  suspension  of  the  qualification  of  the
            registration statement for offering or sale in any jurisdiction,  or
            of the institution or threatening of any proceedings for any of such
            purposes;

                        (q) use its reasonable effort to prevent the issuance of
            any stop order  suspending  the  effectiveness  of the  registration
            statement or of any order  preventing or  suspending  the use of any
            preliminary  prospectus and, if any such order is issued,  to obtain
            the withdrawal of any such order at the earliest possible moment;

                        (r) if requested by the managing underwriter or agent or
            any holder of  Registrable  Securities  covered by the  registration
            statement,  promptly  incorporate  in  a  prospectus  supplement  or
            post-effective amendment such

                                       9
<PAGE>

            information  as the  managing  underwriter  or agent or such  holder
            reasonably  requests  to be  included  therein,  including,  without
            limitation,  with  respect to the number of  Registrable  Securities
            being sold by such holder to such underwriter or agent, the purchase
            price  being paid  therefor  by such  underwriter  or agent and with
            respect  to any  other  terms of the  underwritten  offering  of the
            Registrable  Securities  to be sold in such  offering;  and make all
            required  filings of such  prospectus  supplement or  post-effective
            amendment as soon as practicable after being notified of the matters
            incorporated  in  such  prospectus   supplement  or   post-effective
            amendment;

                        (s) cooperate with each seller of Registrable Securities
            and each  underwriter or agent  participating  in the disposition of
            such  Registrable   Securities  and  their  respective   counsel  in
            connection  with any filings  required to be made with the  National
            Association of Securities Dealers, Inc.; and

                        (t)  cause  its  appropriate   officers  to  attend  and
            participate  in  presentations  to  and  meetings  with  prospective
            purchasers  of  the  Registrable  Securities,  or a  "roadshow",  as
            reasonably requested by the underwriters, if any.

The Company may require each seller of  Registrable  Securities  as to which any
registration is being effected to furnish the Company such information  relating
to the sale or  registration  of such  Securities  regarding such seller and the
distribution  of such securities as the Company may from time to time reasonably
request in writing,  prior to including such seller's Registrable  Securities in
such registration.

      3.2. Registration Expenses.

                        (a) All expenses  incident to the Company's  performance
            of or compliance with this Agreement, including, without limitation,
            all  registration,  qualification and filing fees, fees and expenses
            of compliance with securities or blue sky laws,  printing  expenses,
            messenger  and  delivery  expenses,  and fees and  disbursements  of
            counsel  for  the  Company  and  all  independent  certified  public
            accountants,  underwriters (excluding discounts and commissions) and
            other  Persons  retained by the  Company  (all such  expenses  being
            herein called "Registration Expenses"),  will be paid by the Company
            in  respect  of  each  Demand   Registration   and  each   Piggyback
            Registration, whether or not it has become effective, including that
            the  Company  will pay its  internal  expenses  (including,  without
            limitation,  all salaries and expenses of its officers and employees
            performing legal or accounting duties), the expense of any liability
            insurance and the expenses and fees for listing the securities to be
            registered on each securities  exchange on which similar  securities
            issued  by the  Company  are then  listed  or on the NASD  automated
            quotation system or any other quotation system.

                        (b) In connection with each Demand Registration and each
            Piggyback Registration,  whether or not it has become effective, the
            Company  will  pay,  and  reimburse   the  holders  of   Registrable
            Securities covered by such

                                       10
<PAGE>

            registration   for  the   payment  of,  the   reasonable   fees  and
            disbursements  of one counsel chosen by the holders of a majority of
            the  Registrable  Securities  included  in such  registration,  such
            amount  not to  exceed  $25,000  for  each  registration,  and  such
            expenses shall be considered Registration Expenses hereunder.

      3.3. Participation in Underwritten Offerings.

                        (a)  No  Person  may  participate  in  any  registration
            hereunder  which is  underwritten  unless  such Person (i) agrees to
            sell  such  Person's   securities  on  the  basis  provided  in  any
            underwriting arrangements approved by the Person or Persons entitled
            hereunder  to  approve   such   arrangements   (including,   without
            limitation,  pursuant to the terms of any  over-allotment  or "green
            shoe" option requested by the managing underwriter(s), provided that
            no holder of  Registrable  Securities  will be required to sell more
            than the  number of  Registrable  Securities  that such  holder  has
            requested  the  Company  to include  in any  registration)  and (ii)
            completes  and  executes  all  questionnaires,  powers of  attorney,
            indemnities,  underwriting agreements and other documents reasonably
            required under the terms of such underwriting arrangements.

                        (b)   Each   Person   that  is   participating   in  any
            registration  hereunder agrees that, upon receipt of any notice from
            the Company of the  happening of any event of the kind  described in
            Section  3.1(f) above,  such Person will forthwith  discontinue  the
            disposition   of  its   Registrable   Securities   pursuant  to  the
            registration  statement until such Person's receipt of the copies of
            a supplemented or amended prospectus as contemplated by such Section
            3.1(f).  In the event the Company  shall give any such  notice,  the
            applicable  time period  mentioned in Section  3.1(b) during which a
            Registration  Statement is to remain  effective shall be extended by
            the number of days during the period from and  including the date of
            the  giving  of  such  notice  pursuant  to  this  paragraph  to and
            including  the date  when  each  seller  of a  Registrable  Security
            covered  by such  registration  statement  shall have  received  the
            copies of the  supplemented  or amended  prospectus  contemplated by
            Section 3.1(f).

      3.4. Holdback Agreements.

            3.4.1.  Securityholder Holdback. To the extent not inconsistent with
      applicable  law, each holder of  Registrable  Securities  shall not offer,
      sell,  contract to sell,  pledge,  grant any option to purchase,  make any
      short sale or  otherwise  dispose of any Common  Stock,  or any options or
      warrants to purchase any Common Stock, or any securities convertible into,
      exchangeable  for or that  represent  the right to receive  Common  Stock,
      whether now owned or  hereinafter  acquired,  owned directly by the holder
      (including holding as a custodian) or with respect to which the holder has
      beneficial  ownership  within the rules and  regulations of the Securities
      and Exchange Commission, during (a) with respect to any other underwritten
      Demand  Registration or any underwritten  Piggyback  Registration in which
      Registrable  Securities  are  included,  the seven  days  prior to and the
      90-day  period (or such longer period not to exceed 180 days if reasonably
      necessary in the opinion of such  underwriter)  beginning on the effective
      date of such

                                       11
<PAGE>

      registration,  and (b) upon notice from the Company of the commencement of
      an underwritten  distribution  in connection with any Shelf  Registration,
      the seven days prior to and the 90-day  period (or such longer  period not
      to  exceed  180  days  if  reasonably  necessary  in the  opinion  of such
      underwriter)  beginning on the date of commencement of such  distribution,
      in each case except as part of such underwritten registration, and in each
      case unless the  underwriters  managing  the  registered  public  offering
      otherwise  agree  (in each  case,  such  period,  the  "Lock-Up  Period");
      provided,  however,  if (i) during the period that begins on the date that
      is 15 calendar  days plus three  Business  Days before the last day of the
      Lock-Up Period and ends on the last day of the Lock-Up Period, the Company
      issues an earnings  release or material news or a material  event relating
      to the  Company  occurs,  or (ii) prior to the  expiration  of the Lock-Up
      Period, the Company announces that it will release earnings results during
      the 16 day period  beginning  on the last day of the Lock-Up  Period,  the
      restrictions  imposed shall  continue to apply until the expiration of the
      date that is 15 calendar  days plus three  Business Days after the date on
      which  the  issuance  of the  earnings  release  or the  material  news or
      material  event occurs.  Any waiver by the  underwriters  of the foregoing
      restrictions  on transfers by the holders  shall be granted to all holders
      on equal terms.

            3.4.2. Company Holdback. The Company shall not offer, sell, contract
      to sell or  otherwise  dispose of any  securities  of the Company that are
      substantially  similar to the Common  Stock,  including but not limited to
      any securities  that are  convertible  into or  exchangeable  for, or that
      represent  the right to receive,  Common  Stock or any such  substantially
      similar  securities,  during (a) with  respect  to any other  underwritten
      Demand  Registration or any underwritten  Piggyback  Registration in which
      Registrable  Securities  are  included,  the seven  days  prior to and the
      90-day period  beginning on the effective date of such  registration,  and
      (b) upon notice from any holder(s) of Registrable  Securities subject to a
      Shelf  Registration  that such holder(s)  intend to effect an underwritten
      distribution of Registrable Securities pursuant to such Shelf Registration
      (upon receipt of which, the Company will promptly notify all other holders
      of  Registrable  Securities  of the  date  of  the  commencement  of  such
      distribution),  the seven days prior to and the 90-day period beginning on
      the date of the commencement of such distribution,  in each case except as
      part of such  underwritten  registration or pursuant to  registrations  on
      Form S-4 or Form S-8,  and in each case unless the  underwriters  managing
      the registered public offering otherwise agree.

      3.5. Current Public Information.  At all times after the Company has filed
a registration statement with the Securities and Exchange Commission pursuant to
the  requirements  of either the Securities Act or the Securities  Exchange Act,
the  Company  will use its  commercially  reasonable  efforts to timely file all
reports  required to be filed by it under the  Securities Act and the Securities
Exchange  Act and the  rules  and  regulations  adopted  by the  Securities  and
Exchange Commission thereunder,  and will take such further action as any holder
or holders of Registrable  Securities may reasonably request,  all to the extent
required to enable such holders to sell Registrable  Securities pursuant to Rule
144 adopted by the Securities and Exchange  Commission  under the Securities Act
(as  such  rule  may be  amended  from  time to  time)  or any  similar  rule or
regulation hereafter adopted by the Securities and Exchange Commission.

                                       12
<PAGE>

4. REGISTRATION INDEMNIFICATION.

      4.1.  Indemnification by the Company.  The Company agrees to indemnify and
hold  harmless,  to  the  fullest  extent  permitted  by  law,  each  holder  of
Registrable Securities and, as applicable,  its officers,  directors,  trustees,
employees,  shareholders,  holders of beneficial interests, members, and general
and limited partners (collectively, such holder's "Indemnitees") and each Person
who controls such holder (within the meaning of the Securities  Act) against any
and all losses, claims,  damages,  liabilities,  joint or several, to which such
holder or any such  Indemnitee  may become  subject  under the  Securities  Act,
equivalent foreign securities laws or otherwise, insofar as such losses, claims,
damages  or  liabilities  (or  actions  or  proceedings,  whether  commenced  or
threatened, in respect thereof) arise out of or are based upon (a) any untrue or
alleged  untrue  statement  of  material  fact  contained  in  any  registration
statement, prospectus,  preliminary prospectus or free writing prospectus or any
amendment   thereof  or   supplement   thereto,   together  with  any  documents
incorporated  therein by reference or, (b) any omission or alleged omission of a
material fact required to be stated  therein or necessary to make the statements
therein not  misleading,  and the Company will reimburse such holder and each of
its Indemnitees for any legal or any other expenses,  including any amounts paid
in any settlement  effected with the consent of the Company,  which consent will
not be  unreasonably  withheld or delayed,  incurred by them in connection  with
investigating  or  defending  any  such  loss,  claim,   liability,   action  or
proceeding;  provided, however, that the Company shall not be liable in any such
case to the extent that any such loss,  claim,  damage,  liability (or action or
proceeding  in respect  thereof)  or  expense  arises out of or is based upon an
untrue statement or alleged untrue  statement,  or omission or alleged omission,
made in such registration statement, any such prospectus, preliminary prospectus
or free writing  prospectus or any amendment or  supplement  thereto,  or in any
application,  in reliance  upon,  and in conformity  with,  written  information
prepared and furnished to the Company by such holder  expressly for use therein.
In connection  with an  underwritten  offering,  the Company will indemnify such
underwriters,  their  officers and  directors  and each Person who controls such
underwriters  (within the meaning of the  Securities  Act) to the same extent as
provided above with respect to the indemnification of the holders of Registrable
Securities.

      4.2.  Indemnification by Holders of Registrable Securities.  In connection
with any registration  statement in which a holder of Registrable  Securities is
participating,  each such  holder will  furnish to the  Company in writing  such
information  and  affidavits  as the  Company  reasonably  requests  for  use in
connection  with any such  registration  statement,  prospectus  or free writing
prospectus,  and,  to the  extent  permitted  by law,  will  indemnify  and hold
harmless the Company and its Indemnitees against any losses,  claims, damages or
liabilities,  joint or several,  to which the Company or any such Indemnitee may
become subject under the Securities Act,  equivalent  foreign securities laws or
otherwise, insofar as such losses, claims, damages or liabilities (or actions or
proceedings,  whether commenced or threatened,  in respect thereof) arise out of
or are based upon (a) any untrue or alleged  untrue  statement of material  fact
contained in the registration statement,  prospectus,  preliminary prospectus or
free writing prospectus or any amendment thereof or supplement thereto or in any
application,  together with any documents  incorporated  therein by reference or
(b) any omission or alleged  omission of a material  fact  required to be stated
therein or necessary to make the statements therein not misleading,  but only to
the extent that such untrue statement (or alleged untrue  statement) or omission
(or  alleged  omission)  is  made  in  such  registration  statement,  any  such
prospectus, preliminary prospectus or

                                       13
<PAGE>

free writing  prospectus  or any  amendment  or  supplement  thereto,  or in any
application,  in  reliance  upon  and in  conformity  with  written  information
prepared and furnished to the Company by such holder  expressly for use therein,
and such holder will  reimburse  the  Company and each such  Indemnitee  for any
legal  or any  other  expenses  including  any  amounts  paid in any  settlement
effected with the consent of such holder, which consent will not be unreasonably
withheld  or delayed,  incurred  by them in  connection  with  investigating  or
defending  any such loss,  claim,  liability,  action or  proceeding;  provided,
however,  that the obligation to indemnify will be individual (and not joint and
several)  to each  holder  and will be  limited  to the net  amount of  proceeds
received by such holder from the sale of Registrable Securities pursuant to such
registration statement, less any other amounts paid by such holder in respect of
such untrue statement, alleged untrue statement, omission or alleged omission.

      4.3. Procedure. Any Person entitled to indemnification  hereunder will (a)
give prompt written notice to the  indemnifying  party of any claim with respect
to which it seeks  indemnification  (provided,  however, that the failure of any
indemnified  party to give such notice shall not relieve the indemnifying  party
of its obligations  hereunder,  except to the extent that the indemnifying party
is actually  prejudiced by such failure to give such notice),  and (b) unless in
such indemnified party's reasonable judgment a conflict of interest between such
indemnified  and  indemnifying  parties  may exist with  respect to such  claim,
permit such indemnifying  party to assume the defense of such claim with counsel
reasonably  satisfactory to the  indemnified  party. If such defense is assumed,
the  indemnifying  party will not be subject to any liability for any settlement
made by the indemnified  party without its consent (but such consent will not be
unreasonably  withheld). An indemnifying party who is not entitled to, or elects
not to,  assume the defense of a claim will not be obligated to pay the fees and
expenses  of  more  than  one  counsel  for  all  parties  indemnified  by  such
indemnifying party with respect to such claim, unless in the reasonable judgment
of any  indemnified  party  a  conflict  of  interest  may  exist  between  such
indemnified party and any other of such indemnified parties with respect to such
claim.

      4.4.  Entry of Judgment;  Settlement.  The  indemnifying  party shall not,
except with the  approval  of each  indemnified  party,  consent to entry of any
judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to each  indemnified  party
of a release from all liability in respect to such claim or  litigation  without
any payment or consideration provided by such indemnified party.

      4.5. Contribution.  If the indemnification  provided for in this Section 4
is,  other  than  expressly  pursuant  to  its  terms,   unavailable  to  or  is
insufficient to hold harmless an indemnified party under the provisions above in
respect of any losses,  claims, damages or liabilities referred to therein, then
each  indemnifying  party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (a)
in such proportion as is appropriate to reflect the relative  benefits  received
by the Company on the one hand and the sellers of Registrable Securities and any
other sellers participating in the registration statement on the other hand from
the sale of  Registrable  Securities  pursuant  to the  registered  offering  of
securities as to which indemnity is sought or (b) if the allocation  provided by
clause (a) above is not  permitted by applicable  law, in such  proportion as is
appropriate to reflect the relative benefits referred to in clause (a) above but
also the  relative  fault of the  Company on the one hand and of the  sellers of
Registrable  Securities and any other sellers  participating in the registration
statement on the other hand in connection  with the statement or omissions which
resulted in such

                                       14
<PAGE>

losses, claims, damages or liabilities,  as well as any other relevant equitable
considerations.  The relative  benefits  received by the Company on the one hand
and the sellers of Registrable Securities and any other sellers participating in
the  registration  statement on the other hand shall be deemed to be in the same
proportion  as the  total  net  proceeds  from the  offering  (before  deducting
expenses)  to the  Company  bear to the total  net  proceeds  from the  offering
(before  deducting  expenses) to the sellers of  Registrable  Securities and any
other sellers participating in the registration statement. The relative fault of
the Company on the one hand and of the sellers of Registrable Securities and any
other  sellers  participating  in the  registration  statement on the other hand
shall be determined  by reference to, among other things,  whether the untrue or
alleged omission to state a material fact relates to information supplied by the
Company  or  by  the  sellers  of   Registrable   Securities  or  other  sellers
participating  in the registration  statement and the parties'  relative intent,
knowledge,  access to  information  and  opportunity  to correct or prevent such
statement or omission. The obligation to provide contribution will be individual
(and not joint and several) to each holder and will be limited to the net amount
of proceeds  received by such  holder  from the sale of  Registrable  Securities
pursuant to such  registration  statement,  less any other  amounts paid by such
holder,  including  pursuant to Section  4.2  hereof,  in respect of such untrue
statement, alleged untrue statement, omission or alleged omission.

The Company and the sellers of Registrable Securities agree that it would not be
just and equitable if contribution pursuant to this Section 4 were determined by
pro rata allocation (even if the sellers of Registrable  Securities were treated
as one entity for such purpose) or by any other method of allocation  which 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,  claims,  damages  and  liabilities  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 the provisions of this Section 4, no seller of
Registrable  Securities  shall be required to contribute any amount in excess of
the net proceeds received by such Seller from the sale of Registrable Securities
covered by the  registration  statement  filed pursuant  hereto,  less any other
amounts paid by such holder in respect of such untrue statement,  alleged untrue
statement,  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.

      4.6. Other Rights. The  indemnification and contribution by any such party
provided  for under this  Agreement  shall be in addition to any other rights to
indemnification or contribution which any indemnified party may have pursuant to
law or  contract  and will  remain in full  force and effect  regardless  of any
investigation  made or omitted by or on behalf of the  indemnified  party or any
officer,  director  or  controlling  Person of such  indemnified  party and will
survive the transfer of securities.

5. TRANSFER RESTRICTIONS

      5.1. General Transfer  Restrictions.  Each Investor understands and agrees
that  the  Shares  held by such  Investor  on the  date  hereof  have  not  been
registered  under the Securities Act or registered or qualified  under any state
law. No Investors shall Transfer Shares (or solicit any

                                       15
<PAGE>

offers in respect of any Transfer of such Shares), except in compliance with the
Securities  Act,  any  applicable  state law or in  accordance  with  agreements
applicable to such Transfer.

      5.2.  Restrictions  on Transfer.  No Investor  shall  Transfer any of such
Investor's Shares to any other Person except as follows:

            5.2.1. Private Transfers. Any Clearlake Investor may Transfer any or
      all of such  Clearlake  Investor's  Shares  to such  Clearlake  Investor's
      Permitted  Transferees  and  such  transferee  shall  be  deemed  to  be a
      Clearlake  Investor  hereunder and shall  deliver a signature  page hereto
      agreeing  to be bound  hereby,  simultaneously  with the  Transfer of such
      Shares.  Any  transferring  Clearlake  Investor  under this Section  shall
      provide  prompt  written  notice  to the  Company  of any  such  Transfer,
      indicating  its  reliance on this  provision  and the identity and contact
      information of the Permitted Transferee.

            5.2.2. Public Transfers.

                        (a)  Any  Investor  may  Transfer  any or  all  of  such
            Investor's  Shares, to the extent they constitute Common Stock, in a
            Public Offering undertaken in accordance with this Agreement without
            the consent of the Company or the other Investors.

                        (b)  Any  Investor  may  Transfer  any or  all  of  such
            Investor's Shares pursuant to Rule 144 of the Securities Act.

            5.2.3.  Pledge of Shares.  Any  Investor  may Transfer any or all of
      such  Investor's  Shares to a lender to such  Investor  pursuant to a bona
      fide pledge of all of such Investor's assets.

      5.3. Automatic Conversion Upon Certain Transfers.

            5.3.1.  Transfers by Holders of Series A Preferred  Stock other than
      Clearlake  Investors.  Unless the Company determines otherwise in writing,
      if,  at any  time,  a holder of Series A  Preferred  Stock  (other  than a
      Clearlake  Investor) desires to sell, transfer or otherwise dispose of any
      of the  shares  of Series A  Preferred  Stock  held by such  holder to any
      Person other than an Affiliate of such holder of Series A Preferred  Stock
      or to a Clearlake Investor,  then such holder agrees to convert,  prior to
      such sale, transfer or disposition, all shares of Series A Preferred Stock
      that are held by such  holder.  If such holder fails to so convert all its
      shares of Series A Preferred Stock, the sale, transfer,  or disposition of
      such  shares  shall  be  prohibited  unless  the  Company  has  determined
      otherwise in writing.

            5.3.2.  Transfers  by  Clearlake  Investors.  Unless the Company and
      HOVRS  Parties  holding  a  majority  of  Common  Stock  then held by them
      determine  otherwise,  if, at any time,  a Clearlake  Investor  desires to
      sell,  transfer  or  otherwise  dispose  of any of the  shares of Series A
      Preferred  Stock held by such Clearlake  Investor to any person other than
      an Affiliate of such  Clearlake  Investor,  then such  Clearlake  Investor
      agrees to convert and each other Investor holding Series A Preferred Stock
      agrees to convert each

                                       16
<PAGE>

      share of Series A Preferred Stock then  outstanding held by all holders of
      Series A Preferred  Stock.  If any Clearlake  Investor fails to so convert
      all its  shares  of  Series A  Preferred  Stock,  the  sale,  transfer  or
      disposition  of such  shares  shall be  prohibited  unless the Company and
      HOVRS  Parties  holding a majority of Common  Stock then held by them have
      determined otherwise in writing.

            5.3.3.  No Additional  Action  Required.  Upon the occurrence of the
      events  specified  Sections  5.3.1 or 5.3.2 hereof,  (x) the  transferring
      Investor or Clearlake Investor shall provide written notice to the Company
      not less than 10 business days in advance of such proposed transfer,  sale
      or disposition of Series A Preferred Stock, (y) the Company shall promptly
      notify (the  "Conversion  Notice") each holder of Series A Preferred Stock
      who is shown to be such a holder  on the  books of the  Company  as of the
      time  immediately  prior to such  conversion of the fact that they are now
      required  to convert  (if so  required),  and (z) all  holders of Series A
      Preferred Stock so converted shall surrender the certificates representing
      such shares at the office of the Company. Thereupon, there shall be issued
      and  delivered  to such holder  promptly at such office and in its name as
      shown on such surrendered  certificate or  certificates,  a certificate or
      certificates  representing the number of shares of Common Stock into which
      the shares of Series A Preferred Stock surrendered were convertible on the
      date on which such automatic conversion occurred.

      5.4.  Stop  Transfer  Instructions.  In order  to  enforce  the  foregoing
covenants, the Company may (a) impose stop-transfer instructions with respect to
the Shares of each  Investor  and (b) refuse to reflect such  transfer,  sale or
disposition of such Shares on the books of the Company.

6. PREEMPTIVE RIGHTS

      6.1. Offering.

                        (a) If the  Company  issues or sells or  authorizes  the
            issuance  or sale of any New  Securities  (as defined in Section 6.3
            below)  after  the date  hereof,  the  Company  shall  offer to each
            Clearlake  Investor by written  notice (a  "Subscription  Notice") a
            percentage  of such New  Securities  pro rata based on the  relative
            number of Shares held by such Clearlake  Investor as compared to the
            number of Shares and  then-exercisable  stock  options and  warrants
            outstanding  held by all  holders  of the  Company's  Shares,  stock
            options and warrants. Each such Clearlake Investor shall be entitled
            to purchase such New Securities at the most  favorable  price and on
            the most  favorable  terms as such New  Securities are to be sold or
            issued;  provided that if a Person participating in such purchase of
            New Securities is required in connection  therewith also to purchase
            other securities of the Company,  the Clearlake Investors exercising
            their rights  pursuant to this Section 6.1 shall also be required to
            purchase such other  securities on  substantially  the same economic
            terms  and  conditions  as  those on which  the  offeree  of the New
            Securities  is  required  to purchase  such other  securities.  Each
            Clearlake  Investor  participating  in such  purchase  shall also be
            obligated  to  execute  agreements  in the  form  presented  to such
            Clearlake  Investor by the Company,  so long as such  agreements are
            substantially similar to those to be

                                       17
<PAGE>

            executed by the  purchasers of New Securities  (without  taking into
            consideration  any rights which do not entitle such a purchaser to a
            higher  economic  return  on the New  Securities  than the  economic
            return to which  other  Clearlake  Investors  participating  in such
            transaction  will  be  entitled  with  respect  to New  Securities).
            Notwithstanding  anything  to the  contrary  contained  herein,  the
            Company shall not have any obligation to issue equity  securities or
            to offer to issue any equity  securities under this Section 6 to any
            Clearlake Investor who is not an "accredited  investor" as such term
            is defined in Regulation D of the Securities Act.

                        (b) Each Subscription Notice delivered by the Company to
            a Clearlake  Investor in respect of any proposed issuance or sale of
            New Securities  shall describe in reasonable  detail the type, class
            and number of New  Securities  being  offered,  the  purchase  price
            thereof,  the payment  terms  therefor  and the  percentage  thereof
            offered  to such  holder  pursuant  to this  Section  6. In order to
            exercise its purchase rights hereunder in respect of any issuance or
            sale  of  New  Securities  described  in a  Subscription  Notice,  a
            Clearlake  Investor  must deliver to the Company  during the fifteen
            (15) day  period  commencing  upon  such  holder's  receipt  of such
            Subscription   Notice  (the   "Subscription   Period"),   a  written
            commitment describing its election hereunder (an "Election Notice").
            If a Clearlake  Investor fails for any reason to deliver an Election
            Notice to the Company during the Subscription Period with respect to
            a  proposed  issuance  or sale  of New  Securities,  such  Clearlake
            Investor shall be deemed to have waived its rights  pursuant to this
            Section 6 in respect of such issuance or sale of New Securities.

      6.2.  Expiration  of  Subscription  Period.   Within  the  180-day  period
immediately  following the Subscription Period, the Company shall be entitled to
sell,  or enter  into  any  agreement  to sell,  any New  Securities  which  any
Clearlake Investor has not elected to purchase,  on terms and conditions no more
favorable  to the  offeree  of such New  Securities  than  those  offered to the
Clearlake  Investors pursuant to Section 6.1. Any New Securities offered or sold
by the Company  after such 180-day  period must be  reoffered to each  Clearlake
Investor pursuant to the terms of this Section 6.

      6.3. New  Securities.  For purposes  hereof,  "New  Securities"  means any
shares of the Company's Capital Stock, or any options, convertible securities or
other rights to acquire shares of the Company's  Capital  Stock,  other than (a)
the  issuance  and sale of  Series A  Preferred  Stock  in  connection  with the
Clearlake  Stock  Purchase  Agreements,  (b) Common Stock (or options to acquire
Common Stock) issued or issuable to any employee,  director or consultant of the
Company or any of its  subsidiaries  pursuant  to any equity  incentive  plan or
other  arrangement  approved by the Company's  Board,  (c) Common Stock or other
securities  issued  directly  or  indirectly  upon the  conversion,  exchange or
exercise of any securities previously subjected to this Section 6 or outstanding
on the date hereof,  (d) Common Stock or other  securities  issued in connection
with or in furtherance of the acquisition of or investment in another company or
business  (whether  through a purchase of securities,  a merger,  consolidation,
purchase of assets or otherwise), including, without limitation, Common Stock or
other  securities  issued  pursuant to the Merger  Agreement  (as defined in the
Acquisition  Stock  Purchase  Agreement),  (e) Common Stock or other  securities
issued in connection with or in furtherance of the incurrence of any

                                       18
<PAGE>

indebtedness for borrowed money or for equipment lease financings by the Company
or its subsidiaries,  (f) Common Stock or other securities issued or issuable in
a Public  Offering,  (g) Common Stock or other  securities  issued in connection
with  any  stock  split,  dividend,  combination,  recapitalization  or  similar
transaction,  (h) Common Stock issued or issuable  upon the exercise of warrants
or other  securities or rights to persons or entities with which the Company has
or is entering into a technology  or other  strategic  relationship  not for the
purpose of raising  money or  providing  financing,  (i) Common  Stock issued or
issuable  upon  conversion  of  Series  A  Preferred  Stock or as  dividends  or
distributions  on the Series A  Preferred  Stock and (j)  Common  Stock or other
securities  issued  directly  or  indirectly  upon the  conversion,  exchange or
exercise of any securities issued pursuant to any of the clauses of this Section
6.3.

7. INFORMATION RIGHTS.

      (a) The books and records of the Company shall be available for inspection
by the Clearlake  Investors at the principal office and place of business of the
Company.  The Clearlake Investors shall have the right to receive,  upon request
therefor,  (a) audited annual consolidated  financial  statements of the Company
promptly  following  such  statements  becoming  available to the  Company,  (b)
unaudited quarterly  consolidated  financial  statements of the Company promptly
following  such  statements  becoming  available to the  Company,  (c) an annual
budget of the Company with  respect to each fiscal year within  thirty (30) days
following  presentation  thereof  to the Board or,  if the Board  approves  such
budget,  approval thereof, (d) unaudited monthly consolidated income statements,
balance sheets,  and cashflow  statements of the Company promptly  following the
preparation  thereof  and  (e)  such  other  information  as may  be  reasonably
requested by a Clearlake  Investor  relating to the Company which the Company is
permitted to disclose; provided, however, that any such Person gaining access to
information  regarding the Company  pursuant to this Section 7(a) shall agree to
hold in strict confidence, and shall not make any disclosure of, any information
regarding  the  Company  which  the  Company  determines  in  good  faith  to be
confidential, and of which determination such Person is notified, unless (w) the
release  of  such   information   is  requested  or  required  (by   deposition,
interrogatory,  requests for information or documents by a governmental  entity,
subpoena or similar process),  (x) such information is or becomes publicly known
without a breach of this Agreement, (y) such information is or becomes available
to such Person on a non-confidential  basis from a source other than the Company
or (z) such information is independently developed by such Person.

      (b) The rights of the Clearlake  Investors under Section 7(a) hereof shall
terminate  at such  time  that  the  Clearlake  Investors  cease to own at least
145,067  shares  of Common  Stock (as  adjusted  for  stock  dividends,  splits,
combinations or similar events and including all shares of Common Stock issuable
to the Clearlake Investors upon the conversion and/or exercise of all securities
held by the Clearlake  Investors that are convertible  and/or  exerciseable  for
shares of Common Stock).

8. STOCKHOLDER AGREEMENTS

      8.1.  Board  Composition.  The  Clearlake  Investors and the HOVRS Parties
hereby agree as follows:

                                       19
<PAGE>

                        (a) The Clearlake  Investors and the HOVRS Parties shall
            take all  Necessary  Action to cause the Board to be comprised of up
            to eight (8)  directors,  two (2) of whom shall be designated by the
            Clearlake  Investors;  provided that, if the Clearlake  Investors at
            any time cease to own at least 1,600,000  shares of Common Stock (as
            adjusted  for  stock  dividends,  splits,  combinations  or  similar
            events),  then the  Clearlake  Investors  shall only be  entitled to
            designate  one (1) director,  and if the Clearlake  Investors at any
            time cease to own any Common  Stock,  then the  Clearlake  Investors
            shall cease to be entitled to designate a director.

                        (b)  If the  number  of  directors  that  the  Clearlake
            Investors  have the right to  designate  to the  Board is  decreased
            pursuant to Section  8.1(a),  then the  designees  appointed by such
            party shall resign or, if such person fails to resign, the Clearlake
            Investors  and HOVRS  Parties  shall  take all  Necessary  Action to
            immediately  remove such director or directors,  as the case may be,
            from the Board.

                        (c) Except as provided  above,  the Clearlake  Investors
            shall have the exclusive right to appoint and remove their designees
            to the  Board,  as well as the  exclusive  right  to fill  vacancies
            created  by  reason  of  death,   removal  or  resignation  of  such
            designees,  and the Clearlake  Investors and the HOVRS Parties shall
            take all Necessary Action to cause the Board to be so constituted.

                        (d) For  purposes  of this  Section  8.1,  the number of
            shares of Common Stock held by any Person  shall  include all shares
            of Common Stock issuable to such Person upon the  conversion  and/or
            exercise of all securities  held by such Person that are convertible
            and/or exerciseable for shares of Common Stock.

      8.2.  Amendment to the  Certificate  of  Incorporation.  Each of the HOVRS
Parties and the Clearlake  Investors agree to use all Necessary  Action to cause
the Company's  Amended and Restated  Certificate of Incorporation to be amended,
within  one year of the date  hereof,  to  delete  the  provisions  set forth in
Article VII of the Amended and Restated Certificate of Incorporation filed on or
about the date hereof..

            8.3.  No  Company  Obligations.   Notwithstanding  anything  to  the
contrary set forth herein,  the Company shall have no rights or obligations with
respect to any provision in this Section 8.

9.  EXPENSES.  The Company shall  reimburse  the  directors  for all  reasonable
out-of-pocket  expenses incurred in connection with their attendance at meetings
of the Board, including without limitation, travel, lodging and meal expenses.

10. DEFINITIONS.

      "Acquisition Stock Purchase Agreement" shall have the meaning set forth in
the Recitals.

                                       20
<PAGE>

      "Affiliate"  means, with respect to any Person, (i) any other Person which
directly  or  indirectly  through  one or more  intermediaries  controls,  or is
controlled by, or is under common control with, such Person (for the purposes of
this definition,  "control"  (including,  with correlative  meanings,  the terms
"controlling,"  "controlled by" and "under common control  with"),  as used with
respect to any Person,  means the  possession,  directly or  indirectly,  of the
power to direct or cause the  direction  of the  management  or policies of such
Person,  whether  through the  ownership of voting  securities,  by agreement or
otherwise);  provided,  however,  that  neither  the  Company  nor  any  of  its
Subsidiaries  shall be deemed an  Affiliate  of any of the  Investors  (and vice
versa) and none of the Investors shall be deemed Affiliates of each other solely
as a result of their relationship with respect to the Company.

      "Agreement" shall have the meaning set forth in the Preamble.

      "Amendment" shall have the meaning set forth in Section 6.3.

      "automatic shelf registration statement" has the meaning set forth in Rule
405 under the Securities Act.

      "Board" shall have the meaning set forth in Section 1.7.

      "Business  Day"  shall  mean any day that is not a  Saturday,  a Sunday or
other day on which banks are required or  authorized  by law to be closed in the
states of Delaware or New York.

      "Capital   Stock"  means  (i)  with  respect  to  any  Person  that  is  a
corporation,  any and all  shares,  interests,  participations,  rights or other
equivalents  (however  designated) of corporate  stock; and (ii) with respect to
any other Person, any and all partnership,  membership or other equity interests
of such Person.

      "Clearlake Investor" has the meaning set forth in the Preamble.

      "Clearlake  Investor  Registrable   Securities"  shall  mean  all  of  the
Registrable Securities held by any Clearlake Investor from time to time.

      "Clearlake Stock Purchase  Agreements" shall have the meaning set forth in
the Recitals.

      "Common Stock" shall mean the common stock of the Company,  par value $.01
per share.

      "Company" shall have the meaning set forth in the Preamble.

      "Demand Notice" shall have the meaning set forth in Section 1.2.

      "Demand  Registrations"  means  Long-Form   Registrations  and  Short-Form
Registrations requested pursuant to Section 1.1.

      "EDGAR"  means  the  Security   Exchange   Commission's   Electronic  Data
Gathering, Analysis and Retrieval system.

                                       21
<PAGE>

      "Election Notice" shall have the meaning set forth in Section 6.1(b).

      "Effective Date" shall have the meaning set forth in the Preamble.

      "Family Member" means,  with respect to any natural Person,  such Person's
spouse and  descendants  (whether or not adopted) and any trust,  family limited
partnership or limited liability company that is and remains at all times solely
for the benefit of such Person's spouse and/or descendants.

      "free writing prospectus" has the meaning ascribed to such term under Rule
405 under the Securities Act.

      "HOVRS Holder" shall have the meaning set forth in Section 1.2.

      "HOVRS  Registration Rights Agreement" shall have the meaning set forth in
Section 1.2.

      "HOVRS Registrable Securities" shall have the meaning set forth in Section
1.2.

      "Indemnitees" shall have the meaning set forth in Section 4.1.

      "Initial Stock Purchase Agreement" shall have the meaning set forth in the
Recitals.

      "Investors" shall have the meaning set forth in the Preamble.

      "issuer free  writing  prospectus"  has the meaning  ascribed to such term
under Rule 433(h) under the Securities Act.

      "Lock-Up Period" shall have the meaning set forth in Section 3.4.1.

      "Long-Form Registrations" shall have the meaning set forth in Section 1.1.

      "Majority  Clearlake  Investor  Approval"  means the  written  approval of
Persons holding a majority of Clearlake Investor Registrable Securities.

      "Necessary  Action" shall mean,  with respect to a specified  result,  all
actions (to the extent such  actions are  permitted  by law)  necessary to cause
such result,  including (i) voting or providing a written  consent or proxy with
respect to the  Capital  Stock of the  Company,  (ii)  causing  the  adoption of
shareholders'  resolutions  or proxy with  respect to the  Capital  Stock of the
Company,  (iii)  causing  members of the Board (to the extent such  members were
nominated or designated by the Person  obligated to take such Necessary  Action,
and subject to any  fiduciary  duties that such members may have as directors of
the  Company)  to act in a certain  manner or causing  them to be removed in the
event  that they fail to act in such a manner,  (iv)  executing  agreements  and
instruments  to effect such result and (v) making,  or causing to be made,  with
governmental,   administrative   or   regulatory   authorities,   all   filings,
registrations  or similar  actions  that are  required to achieve  such  result;
provided that an  obligation to take all Necessary  Action shall not include any
obligation  to acquire or dispose of Capital  Stock or other  securities  of the
Company or any other Person.

                                       22
<PAGE>

      "New Securities" shall have the meaning set forth in Section 6.3.

      "Person"  means  an  individual,   a  partnership,   a  joint  venture,  a
corporation,   a  limited   liability   company,   a  trust,  an  unincorporated
organization and a government or any department or agency thereof.

      "Permitted Transferee" shall mean, with respect to any Clearlake Investor,
(a) if any Transfer involves less than all of a Clearlake Investor's Registrable
Securities,  any Affiliate of a Clearlake Investor or Reservoir Capital Group or
its Affiliates,  or (b) if any Transfer  involves all of a Clearlake  Investor's
Registrable  Securities,  to any Person  other than a direct  competitor  of the
Company.

      "Piggyback Registration" shall have the meaning set forth in Section 2.1.

      "Public  Offering"  means a  public  offering  and  sale of  Common  Stock
pursuant to an effective registration statement under the Securities Act.

      "Registrable Securities" means (i) any share of Common Stock issued to any
Investor  (or any  Affiliate  thereof) as of the  Effective  Date or  thereafter
acquired,  including upon conversion of the Company's  Series A Preferred Stock,
by any Investor,  and (ii) any equity  securities issued or issuable directly or
indirectly with respect to any of the foregoing securities referred to in clause
(i) by way of share dividend or share split or in connection  with a combination
of shares, recapitalization,  merger, consolidation or other reorganization.  As
to any particular shares constituting  Registrable Securities,  such shares will
cease  to  be  Registrable  Securities  when  they  have  been  (x)  effectively
registered  under the  Securities  Act and  disposed of in  accordance  with the
registration statement covering them, or (y) sold to the public pursuant to Rule
144 under the Securities Act or sold in a block sale to a financial  institution
in the ordinary course of its trading business.  For purposes of this Agreement,
a Person will be deemed to be a holder of Registrable  Securities  whenever such
Person  has the  right  to  acquire  directly  or  indirectly  such  Registrable
Securities  (upon  conversion  or  exercise  in  connection  with a transfer  of
securities or otherwise,  but  disregarding any restrictions or limitations upon
the exercise of such right),  whether or not such  acquisition has actually been
effected.

      "Registration Expenses" shall have the meaning set forth in Section 3.2.

      "Rule  433"  means  Rule 433 under  the  Securities  Act or any  successor
federal law then in force.

      "Series A  Preferred  Stock"  means the  Series A  Preferred  Stock of the
Company, par value $.01 per share.

      "Securities  Act"  means the  United  States  Securities  Act of 1933,  as
amended, or any successor federal law then in force.

      "Securities and Exchange  Commission"  means the United States  Securities
and Exchange  Commission and any governmental  body or agency  succeeding to the
functions thereof.

                                       23
<PAGE>

      "Securities  Exchange Act" means the United States Securities Exchange Act
of 1934, as amended, or any successor federal law then in force.

      "Shares"  shall  mean  collectively  any  shares of the  Company's  equity
securities  outstanding  from time to time,  including,  but not  limited to the
Common Stock and the Series A Preferred Stock.

      "Shelf Registration" shall have the meaning set forth in Section 1.4.

      "Short-Form  Registrations"  shall have the  meaning  set forth in Section
1.1.

      "Subscription Notice" shall have the meaning set forth in Section 6.1(a).

      "Subscription Period" shall have the meaning set forth in Section 6.1(b).

      "Transfer" shall mean any sale, pledge,  assignment,  encumbrance or other
transfer or  disposition  of any shares of  Registrable  Securities to any other
Person, whether directly, indirectly,  voluntarily,  involuntarily, by operation
of law, pursuant to judicial process or otherwise.

11. MISCELLANEOUS.

      11.1. No  Inconsistent  Agreements.  The Company will not hereafter  enter
into any agreement with respect to its securities which is inconsistent  with or
violates the rights  granted to the holders of  Registrable  Securities  in this
Agreement.

      11.2.  Remedies.  The  parties  hereto  agree and  acknowledge  that money
damages may not be an adequate  remedy for any breach of the  provisions of this
Agreement  and that,  in addition to any other  rights and remedies at law or in
equity  existing in its favor,  any party  shall be  entitled  to seek  specific
performance  and/or other  injunctive  relief from any court of law or equity of
competent  jurisdiction (without posting any bond or other security) in order to
enforce or prevent violation of the provisions of this Agreement.

      11.3. Amendment and Waiver.

      (a) Except as otherwise  provided  herein,  this Agreement may be amended,
modified,  extended or terminated, and the provisions hereof may be waived, only
by an agreement in writing signed by the Company and Persons  holding a majority
of Clearlake Investor Registrable  Securities,  provided,  that the admission of
new  parties  pursuant  to the terms of  Section  11.4 shall not  constitute  an
amendment of this  Agreement for purposes of this Section 11.3.  Notwithstanding
the foregoing (A) if any  amendment,  modification,  extension,  termination  or
waiver (an  "Amendment")  would treat any  Investor or group of  Investors  in a
manner  different  from,  and  materially  adverse  relative  to, the  Clearlake
Investors  voting in favor of such  Amendment,  then such Amendment will require
the consent of the Investor or Investors  holding a majority of the  Registrable
Securities of such group  adversely  treated,  (B) any Amendment of Section 8 or
11.4(b)  hereof  shall  require  the  consent of Persons  holding a majority  of
Clearlake Investor Registrable Securities,  and HOVRS Parties holding a majority
of the Common Stock held by all HOVRS  Parties  (except that any such  Amendment
that purports to impose any

                                       24
<PAGE>

obligation on the Company  shall also require the consent of the  Company),  (C)
any  Amendment  of  Sections  1, 2 or 3 hereof that would (x) have the effect of
treating the HOVRS Parties in a manner  different  from, and materially  adverse
relative to, the Clearlake  Investors  voting in favor of such  Amendment or (y)
cause this Agreement to conflict with the HOVRS Registration Rights Agreement as
in effect on the date hereof, shall require the consent of the Company,  Persons
holding a majority  of  Clearlake  Investor  Registrable  Securities,  and HOVRS
Parties holding a majority of the Common Stock held by all HOVRS Parties and (D)
any  Amendment of clause (B), (C) or (D) of this Section  11.3(a)  shall require
the consent of the Company,  Persons  holding a majority of  Clearlake  Investor
Registrable Securities, and HOVRS Parties holding a majority of the Common Stock
held by all HOVRS Parties.

      (b) Each such  Amendment  shall be binding upon each party hereto and each
Investor  subject  hereto.  In  addition,  each party  hereto and each  Investor
subject hereto may waive any right hereunder,  as to itself, by an instrument in
writing  signed by such party or  Investor.  The failure of any party to enforce
any  provisions  of this  Agreement  shall in no way be construed as a waiver of
such  provisions  and shall not  affect the right of such  party  thereafter  to
enforce each and every provision of this Agreement in accordance with its terms.
To the extent the  Amendment of any Section of this  Agreement  would  require a
specific  consent pursuant to this Section 11.3, any Amendment to definitions to
the extent used in such Section shall also require such specified consent.

      (c) It is  acknowledged  that this  Agreement  amends and  restates in its
entirety  that  certain  Investor  Rights  Agreement  dated as of August 1, 2007
between  the  Company  and the  Clearlake  Investors,  as the same may have been
amended,  supplemented or otherwise modified from time to time prior to the date
hereof.

      11.4. Successors and Assigns; Transferees.

      (a) This  Agreement  shall be binding upon and inure to the benefit of and
be  enforceable  by the  parties  hereto  and their  respective  successors  and
assigns.  Registrable  Securities  shall continue to be  Registrable  Securities
after any Transfer (except if such securities were effectively  registered under
the Securities Act and disposed of in accordance with the registration statement
covering them,  sold to the public pursuant to Rule 144 under the Securities Act
or sold in a block sale to a financial institution in the ordinary course of its
trading business).  Any transferee receiving shares of Registrable Securities in
a Transfer  effected in compliance with the terms of this Agreement shall become
an  Investor  party to this  Agreement  and  shall be  subject  to the terms and
conditions  of, and be entitled to enforce,  this  Agreement to the same extent,
and in the  same  capacity,  as  the  Person  that  Transfers  such  Registrable
Securities to such  transferee;  provided that only a Permitted  Transferee of a
Clearlake  Investor  will be deemed to be a Clearlake  Investor  for purposes of
this Agreement. For the avoidance of doubt, any transferee receiving Registrable
Securities  in a  Transfer  that  is not a  Clearlake  Investor  or a  Permitted
Transferee of a Clearlake Investor or its Affiliates will become a party to this
Agreement  without the benefit of the right to initiate Demand  Registrations or
other rights  afforded to the  Clearlake  Investors  hereunder.  Other than with
respect to a pledge  permitted  pursuant to Section 5.2.3  hereof,  prior to the
Transfer of any  Registrable  Securities to any  transferee,  and as a condition
thereto,  each Investor  effecting such Transfer shall (a) cause such transferee
to deliver to the Company and each of the  Investors its written  agreement,  in
form and

                                       25
<PAGE>

substance  reasonably  satisfactory to the Company, to be bound by the terms and
conditions of this Agreement to the extent  described in the preceding  sentence
and (b) if such Transfer is to a Permitted  Transferee,  remain  directly liable
for the  performance  by such  Permitted  Transferee of all  obligations of such
transferee under this Agreement.

      (b)  Prior to the  Transfer  by any  HOVRS  Party of any of the  Company's
Capital Stock to any transferee,  and as a condition  thereto,  such HOVRS Party
shall cause such  transferee to deliver to the Company and each of the Investors
its written  agreement,  in form and substance  reasonably  satisfactory  to the
Company, to be subject to the terms and conditions of this Agreement to the same
extent, and in the same capacity, as the HOVRS Party that Transfers such Capital
Stock to such transferee;  provided that this Section 11.4(b) shall not apply to
Transfers  of  Capital  Stock  that (x) are  effectively  registered  under  the
Securities  Act and  disposed of in  accordance  with a  registration  statement
covering such Capital Stock,  or (y) constitute  sales to the public pursuant to
Rule 144 under the  Securities Act or block sales to financial  institutions  in
the ordinary course of their trading business.

      11.5.  Severability.  Whenever possible,  each provision of this Agreement
shall  be  interpreted  in  such  manner  as to be  effective  and  valid  under
applicable  law, but if any  provision of this  Agreement is held to be invalid,
illegal or  unenforceable in any respect under any applicable law or rule in any
jurisdiction,  such invalidity,  illegality or unenforceability shall not affect
any other  provision or the  effectiveness  or validity of any  provision in any
other jurisdiction, and this Agreement shall be reformed, construed and enforced
in such jurisdiction as if such invalid,  illegal or unenforceable provision had
never been contained herein.

      11.6.   Counterparts.   This   Agreement   may  be  executed  in  separate
counterparts, each of which shall be an original and all of which taken together
shall constitute one and the same Agreement.

      11.7. Descriptive Headings. The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a part of this Agreement.

      11.8. Notices.  Any and all notices or other  communications or deliveries
required or permitted to be provided  hereunder shall be in writing and shall be
deemed  given,  delivered  and  effective  on the  earliest  of (i) the  date of
transmission,  if such notice or communication is delivered via facsimile at the
facsimile  telephone  number  specified  in this Section 11.8 prior to 5:00 p.m.
(Eastern  time) on a  Business  Day,  (ii) the  Business  Day  after the date of
transmission,  if such notice or communication is delivered via facsimile at the
facsimile  telephone  number  specified in this  Agreement  later than 5:00 p.m.
(Eastern time) on any Business Day and earlier than 11:59 p.m. (Eastern time) on
the day  preceding  the next  Business  Day, or (iii) one (1) Business Day after
when sent, if sent by nationally  recognized  overnight courier service (charges
prepaid). The address for such notices and communications shall be as follows:

                                       26
<PAGE>

      If to the Company:

               GoAmerica, Inc.
               433 Hackensack Avenue
               Hackensack, NJ  07601
               Facsimile: (201) 527-1081
               Attention: General Counsel and Chief Financial Officer

      with a copy to:

               Lowenstein Sandler PC
               65 Livingston Avenue
               Roseland, NJ  07068
               Facsimile: (973) 587-2351
               Attention: Peter H. Ehrenberg

      If to any Clearlake  Investor:  to the  addressee  specified on Schedule A
hereto.

      If to any HOVRS Party: to the addressee specified on Schedule B hereto.

      11.9.  Delivery by Facsimile.  This Agreement and any signed  agreement or
instrument entered into in connection  herewith or contemplated  hereby, and any
amendments  hereto or thereto,  to the extent signed and delivered by means of a
facsimile  machine,  shall be treated in all manner and  respects as an original
agreement or  instrument  and shall be considered to have the same binding legal
effect as if it were the original signed version thereof delivered in person. At
the request of any party  hereto or to any such  agreement or  instrument,  each
other  party  hereto or thereto  shall  re-execute  original  forms  thereof and
deliver them to all other  parties.  No party hereto or to any such agreement or
instrument shall raise the use of a facsimile  machine to deliver a signature or
the fact that any  signature or  agreement  or  instrument  was  transmitted  or
communicated  through  the  use  of a  facsimile  machine  as a  defense  to the
formation of a contract and each such party forever waives any such defense.

      11.10. Governing Law. This Agreement shall be governed by and construed in
accordance  with the laws of the  State of New  York  applicable  to a  contract
executed and performed in such state,  without giving effect to the conflicts of
laws principles thereof.

      11.11.  Jurisdiction;  Submission  to  Jurisdiction;  Waivers.  Each party
hereto  irrevocably agrees that any proceeding with respect to this Agreement or
for  recognition  and  enforcement of any judgment in respect thereof brought by
the  other  party  hereto or its  successors  or  assigns,  may be  brought  and
determined  in the Supreme  Court of the State of New York in New York County or
in the United States  District Court for the Southern  District of New York, and
each party hereto hereby irrevocably  submits with regard to any such proceeding
for itself and in respect to its properties, generally and unconditionally,  for
all purposes of this Agreement.

      11.12.  Waiver of Jury Trial.  To the extent not  prohibited by applicable
law that cannot be waived,  each party hereto  waives,  and covenants  that such
party will not assert (whether as plaintiff,  defendant or otherwise), any right
to trail by jury in any forum in

                                       27
<PAGE>

respect of any issue,  claim or proceeding  arising out of this Agreement or the
subject  matter  hereof or in any way  connected  with the dealings of any party
hereto in connection with any of the above, in each case whether now existing or
hereafter arising and whether in contract, tort or otherwise.  Any party to this
Agreement  may  file a copy of this  Section  11.12  with any  court as  written
evidence of the consent of the parties  hereto to the waiver of their  rights to
trial by jury.

      11.13.  Termination.  The provisions of Section 11 of this Agreement shall
terminate  as to any  Investor at such time as such  Investor  ceases to own any
Series A Preferred Stock or shares issued upon conversion thereof or in exchange
therefor.

                         * * Signature pages follow * *

                                       28
<PAGE>

            IN WITNESS  WHEREOF,  the parties have executed this Investor Rights
Agreement on the day and year first above written.

                                        COMPANY:

                                        GOAMERICA, INC.

                                        By:    /s/ Daniel R. Luis
                                               ---------------------------------
                                        Name:  Daniel R. Luis
                                        Title: Chief Executive Officer

<PAGE>

                                   INVESTORS

                                   CCP A, L.P.

                                   By:  CLEARLAKE CAPITAL PARTNERS, LLC
                                   Its: General Partner

                                   By:  CCG Operations, LLC
                                   Its: Managing Member

                                   By:  /s/ Behdad Eghbali
                                        ----------------------------------------
                                        Name:  Behdad Eghbali
                                        Title: Authorized Signatory

                                   Clearlake Capital GoAmerica Coinvestment, LLC

                                   By:  Clearlake Capital Group, L.P.
                                   Its: Manager

                                   By:  CCG Operations, LLC
                                   Its: General Partner

                                   By:  /s/ Behdad Eghbali
                                        ----------------------------------------
                                        Name:  Behdad Eghbali
                                        Title: Authorized Signatory

<PAGE>

                                        HOVRS PARTIES

                                        /s/ Ronald Obray
                                        -----------------------
                                        Name: Ronald Obray

                                        /s/ Denise E. Obray
                                        -----------------------
                                        Name: Denise E. Obray

<PAGE>

                                        /s/ Edmond Routhier
                                        -----------------------
                                        Name: Edmond Routhier

<PAGE>

                                        CAYMUS INVESTMENT GROUP, LLC

                                        By: /s/ Edmond Routhier
                                            ------------------------------------
                                            Edmond Routhier, Managing Member

<PAGE>

                                        /s/ Steve Eskenazi
                                        -----------------------
                                        Name: Steve Eskenazi

<PAGE>

                                        /s/ Jack Clark
                                        -----------------------
                                        Name: Jack Clark

<PAGE>

                                        /s/ Bill McDonagh
                                        -----------------------
                                        Name: Bill McDonagh

<PAGE>

                         Schedule A: Clearlake Investors

CCP A, L.P.

Address for Notice:
Clearlake Capital Group, L.P.
650 Madison Ave.
23rd Floor
New York, NY 10022
Attention:  Behdad Eghbali
Facsimile: (212) 610-9121

With a copy to:

Milbank, Tweed, Hadley & McCloy LLP
601 S. Figueroa, 30th Floor
Los Angeles, CA  90017
Attention:  Melainie K. Mansfield, Esq.
Facsimile:  (213) 892-4711

Clearlake Capital GoAmerica Coinvestment, LLC

Address for Notice:
Clearlake Capital Group, L.P.
650 Madison Ave.
23rd Floor
New York, NY 10022
Attention:  Behdad Eghbali
Facsimile: (212) 610-9121

With a copy to:

Milbank, Tweed, Hadley & McCloy LLP
601 S. Figueroa, 30th Floor
Los Angeles, CA  90017
Attention:  Melainie K. Mansfield, Esq.
Facsimile:  (213) 892-4711

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