Document:

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                                                                    Exhibit 10.9

                         REGISTRATION RIGHTS AGREEMENT

     REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of April 3,
2001, by and among MicroStrategy Incorporated, a Delaware corporation, with
headquarters located at 8000 Towers Crescent Drive, Vienna, Virginia 22182 (the
"Company"), and the undersigned investor (the "Investor").

     WHEREAS:

     A.   In connection with the Redemption and Exchange Agreement by and among
the parties hereto of even date herewith (the "Redemption and Exchange
Agreement"), the Company has agreed, upon the terms and subject to the
conditions of the Redemption and Exchange Agreement, to redeem a portion of the
shares of the Company's Series A Convertible Preferred Stock, par value $0.001
per share (the "Series A Preferred Shares"), which are convertible into shares
of the Company's Class A common stock, par value $0.001 per share (the "Common
Stock"), held by the Investor for an agreed upon amount of cash and exchange the
remaining portion of the Series A Preferred Shares held by the Investor for an
agreed upon number of (i) shares of Common Stock (the "Common Shares"), (ii)
shares of the Company's Series B Convertible Preferred Stock, par value $0.001
per share (the "Series B Preferred Shares"), which shall be convertible into
shares of Common Stock (as converted, the "Series B Conversion Shares"), in
accordance with the terms of the Company's Certificate of Designations,
Preferences and Rights of the Series B Preferred Stock (the "Series B
Certificate of Designations"), (iii) shares of the Company's Series C
Convertible Preferred Stock, par value $0.001 per share (the "Series C Preferred
Shares"), which shall be convertible into shares of Common Stock (as converted,
the "Series C Conversion Shares"), in accordance with the terms of the Company's
Certificate of Designations, Preferences and Rights of the Series C Preferred
Stock (the "Series C Certificate of Designations"), and (iv) shares of the
Company's Series D Convertible Preferred Stock, par value $0.001 per share (the
"Series D Preferred Shares" and, together with the Series B Preferred Shares and
the Series C Preferred Shares, the "Preferred Shares"), which shall be
convertible into shares of Common Stock (as converted, the "Series D Conversion
Shares" and, together with the Series B Conversion Shares and the Series C
Conversion Shares, the "Conversion Shares"), in accordance with the terms of the
Company's Certificate of Designations, Preferences and Rights of the Series D
Preferred Stock (the "Series D Certificate of Designations" and, together with
the Series B Certificate of Designations and the Series C Certificate of
Designations, the "Certificates of Designations"); and

     B.   To induce the Investor to execute and deliver the Redemption and
Exchange Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and
regulations thereunder, or any similar successor statute (collectively, the
"1933 Act"), and applicable state securities laws.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Investor
hereby agree as follows:
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     1.   DEFINITIONS.
          -----------

          As used in this Agreement, the following terms shall have the
following meanings:

          a.   "Holder" means the Investor, any transferee or assignee thereof
to whom the Investor assigns its rights under this Agreement and who agrees to
become bound by the provisions of this Agreement in accordance with Section 9
and any transferee or assignee thereof to whom a transferee or assignee assigns
its rights under this Agreement and who agrees to become bound by the provisions
of this Agreement in accordance with Section 9.

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

          c.   "Register," "registered," and "registration" refer to a
registration effected by preparing and filing one or more Registration
Statements (as defined below) in compliance with the 1933 Act and pursuant to
Rule 415 under the 1933 Act or any successor rule providing for offering
securities on a continuous or delayed basis ("Rule 415"), and the declaration or
ordering of effectiveness of such Registration Statement(s) by the United States
Securities and Exchange Commission (the "SEC").

          d.   "Registrable Securities" means (i) the Common Shares, (ii) the
Conversion Shares issued or issuable upon conversion of the Preferred Shares,
(ii) the Dividend Shares (as defined in each of the Certificates of
Designations) issued in relation to the Preferred Shares and (iii) any shares of
capital stock issued or issuable with respect to the Common Shares, the
Conversion Shares, the Preferred Shares or the Dividend Shares issued in
relation to the Preferred Shares as a result of any stock split, stock dividend,
recapitalization, exchange or similar event or otherwise, without regard to any
limitations on conversions of Preferred Shares.

          e.   "Registration Statement" means a registration statement or
registration statements of the Company filed under the 1933 Act covering the
Registrable Securities.

Capitalized terms used herein and not otherwise defined herein shall have the
respective meanings set forth in the Redemption and Exchange Agreement.

     2.   REGISTRATION.
          ------------

          a.   Mandatory Registration. The Company shall prepare, and, on or
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after the tenth (10th) Business Day (as defined in the Redemption and Exchange
Agreement) following the date of the filing of the Announcing Form 8-K (as
defined in Section 4(f) of the Redemption and Exchange Agreement) pursuant to
Section 4(f) of the Redemption and Exchange Agreement, but in no event later
than the twentieth (20th) Business Day following the date of such filing (the
"Filing Deadline"), file with the SEC the Registration Statement on Form S-3
covering the resale of all of the Registrable Securities. In the event that Form
S-3 is unavailable for such a

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registration, the Company shall use such other form as is available for such a
registration, subject to the provisions of Section 2(d). The Registration
Statement prepared pursuant hereto shall register for resale at least that
number of shares of Common Stock equal to the sum of (i) the Registrable
Securities relating to the Common Shares, (ii) the product of (w) 1.25 and (x)
the Registrable Securities relating to the Series B Preferred Shares, (iii) the
product of (y) 1.25 and (z) the Registrable Securities relating to the Series C
Preferred Shares and (iv) the Registrable Securities relating to the Series D
Preferred Shares, in each case, as of the trading day immediately preceding the
date the Registration Statement is initially filed with the SEC (as if the
closing of the transactions contemplated by the Redemption and Exchange
Agreement occurred on such date), subject to adjustment as provided in Section
2(e). The Company shall use its best efforts to have the Registration Statement
declared effective by the SEC as soon as practicable, but in no event later than
the date which is 60 days after the Closing Date (as defined in the Redemption
and Exchange Agreement) (the "Effectiveness Deadline").

     b.   Allocation of Registrable Securities.  The initial number of
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Registrable Securities included in any Registration Statement and each increase
in the number of Registrable Securities included therein shall be allocated pro
rata among the Holders based on the number of Registrable Securities held by
each Holder at the time the Registration Statement covering such initial number
of Registrable Securities or increase thereof is declared effective by the SEC.
In the event that a Holder sells or otherwise transfers any of such Holder's
Registrable Securities, each transferee shall be allocated a pro rata portion of
the then remaining number of Registrable Securities included in such
Registration Statement for such transferor.  Any shares of Common Stock included
in a Registration Statement and which remain allocated to any Person which
ceases to hold any Registrable Securities covered by such Registration Statement
shall be allocated to the remaining Holders, pro rata based on the number of
Registrable Securities then held by such Holders which are covered by such
Registration Statement.

     c.   Legal Counsel.  The Investor shall have the right to select one legal
          -------------
counsel to review and oversee any offering pursuant to this Section 2 ("Legal
Counsel"). The Company shall reasonably cooperate with Legal Counsel in
performing the Company's obligations under this Agreement.

     d.   Ineligibility for Form S-3.  In the event that Form S-3 is not
          --------------------------
available for the registration of the resale of Registrable Securities
hereunder, the Company shall (i) register the resale of the Registrable
Securities on another appropriate form reasonably acceptable to the holder of at
least two-thirds ([]) of the Registrable Securities and (ii) undertake to
register the Registrable Securities on Form S-3 as soon as such form is
available, provided that the Company shall maintain the effectiveness of the
Registration Statement then in effect until such time as a Registration
Statement on Form S-3 covering the Registrable Securities has been declared
effective by the SEC.

     e.   Sufficient Number of Shares Registered.  In the event the number of
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shares available under a Registration Statement filed pursuant to Section 2(a)
is insufficient to cover all of the Registrable Securities required to be
covered by such Registration Statement or a Holder's allocated portion of the
Registrable Securities pursuant to Section 2(b), the Company

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shall amend the Registration Statement, or file a new Registration Statement (on
the short form available therefor, if applicable), or both, so as to cover at
least the sum of (i) the Registrable Securities relating to the Common Shares,
(ii) 125% of the Registrable Securities relating to the Series B Preferred
Shares, (iii)125% of the Registrable Securities relating to the Series C
Preferred Shares and (iv) the Registrable Securities relating to the Series D
Preferred Shares, in each case, as of the trading day immediately preceding the
date of the filing of such amendment or new Registration Statement, in each
case, as soon as practicable, but in any event not later than fifteen (15) days
after the necessity therefor arises. The Company shall use it best efforts to
cause such amendment and/or new Registration Statement to become effective as
soon as practicable following the filing thereof. For purposes of the foregoing
provision, the number of shares available under a Registration Statement shall
be deemed "insufficient to cover all of the Registrable Securities" if at any
time the sum of (x) the number of Registrable Securities relating to Common
Shares covered by such Registration Statement and (y) number of Registrable
Securities issued or issuable upon conversion of the Preferred Shares covered by
such Registration Statement is greater than the number of shares of Common Stock
available for resale under such Registration Statement. The calculation set
forth in the foregoing sentence shall be made without regard to any limitations
on the conversion of the Preferred Shares and such calculation shall assume that
the Preferred Shares are then convertible into shares of Common Stock at the
then prevailing Conversion Rate (as defined in each of the Certificates of
Designations).

     f.   Effect of Failure to File and Obtain and Maintain Effectiveness of
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Registration Statement.  If, other than solely as a result of a Holder Delay (as
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defined below), (i) a Registration Statement covering all the Registrable
Securities and required to be filed by the Company pursuant to this Agreement is
not (A) filed with the SEC on or before the Filing Deadline or (B) declared
effective by the SEC on or before the Effectiveness Deadline or (ii) on any day
after the Registration Statement has been declared effective by the SEC sales of
all the Registrable Securities required to be included on such Registration
Statement cannot be made (other than during an Allowable Grace Period (as
defined in Section 3(r)) pursuant to the Registration Statement (including,
without limitation, because of a failure to keep the Registration Statement
effective, to disclose such information as is necessary for sales to be made
pursuant to the Registration Statement or to register sufficient shares of
Common Stock), then, as partial relief for the damages to any holder by reason
of any such delay in or reduction of its ability to sell the Registrable
Securities (which remedy shall not be exclusive of any other remedies available
at law or in equity), the Company shall pay to each holder of Common Shares
and/or Preferred Shares, as the case may be, an amount in cash per Common Share
(excluding each Common Share which may be sold by the holder thereof pursuant to
Rule 144(k) under the 1933 Act on the date on which the amounts provided for in
this Section 2(f) are incurred) or Preferred Share (excluding each Preferred
Share with respect to which the holder thereof may sell the shares of Common
Stock issuable upon conversion of such Preferred Share pursuant to Rule 144(k)
under the 1933 Act on the date on which the amounts provided for in this Section
2(f) are incurred), as the case may be, held equal to the product of (A)
$10,000, with respect to a Preferred Share, or $3.00, with respect to a
Conversion Share or Common Share (subject to adjustment for stock splits, stock
dividends, stock combinations and other similar transactions), as the case may
be, multiplied by (B) the product of (I) 0.00033 multiplied by (II) the sum of
(x)

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the number of days after the Filing Deadline that such Registration Statement is
not filed with the SEC, plus (y) the number of days after the Effectiveness
Deadline that the Registration Statement is not declared effective by the SEC,
plus (z) the number of days after the Registration Statement has been declared
effective by the SEC that such Registration Statement is not available (other
than during an Allowable Grace Period) for the sale of at least all the
Registrable Securities required to be included on such Registration Statement
pursuant to section 2(e). The payments to which a holder shall be entitled
pursuant to this Section 2(f) are referred to herein as "Registration Delay
Payments." Registration Delay Payments shall be paid on the earlier of (I) the
last day of the calendar month during which such Registration Delay Payments are
incurred and (II) the third business day after the event or failure giving rise
to the Registration Delayed Payments is cured. In the event the Company fails to
make Registration Delay Payments in a timely manner, such Registration Delay
Payments shall bear interest at the rate of 1.5% per month (prorated for partial
months) until paid in full. A "Holder Delay" shall mean any period for which the
Registration Statement is not effective or sales of Registrable Securities may
not be made solely attributable to changes required by the Holders in the
Registration Statement after the Registration Statement has been declared
effective by the SEC with respect to information required by this Agreement to
be provided to the Company by such Holders for purposes of inclusion in the
Registration Statement, with respect to changes in the plan of distribution or
the failure of the Holders to conduct their review of the Registration Statement
pursuant to Section 3(c) of this Agreement within five (5) days of their receipt
of the Registration Statement.

     3.   RELATED OBLIGATIONS.
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     At such time as the Company is obligated to file a Registration Statement
with the SEC pursuant to Section 2(a) or 2(e), the Company will use its best
efforts to effect the registration of the Registrable Securities in accordance
with the intended method of disposition thereof and, pursuant thereto, the
Company shall have the following obligations:

          a.   The Company shall promptly prepare and file with the SEC a
Registration Statement with respect to the Registrable Securities (but in no
event later than the Filing Deadline) and use its best efforts to cause such
Registration Statement relating to the Registrable Securities to become
effective as soon as practicable after such filing (but in no event later than
the Effectiveness Deadline). The Company shall keep each Registration Statement
effective pursuant to Rule 415 at all times until the earlier of (i) the date as
of which the Holders may sell all of the Registrable Securities covered by such
Registration Statement without restriction pursuant to Rule 144(k) (or successor
thereto) promulgated under the 1933 Act or (ii) the date on which the Holders
shall have sold all the Registrable Securities covered by such Registration
Statement (the "Registration Period"), which Registration Statement (including
any amendments or supplements thereto and prospectuses contained therein) shall
not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein, or necessary to make the statements therein,
in light of the circumstances in which they were made, not misleading. The term
"best efforts" shall mean, among other things, that the Company shall submit to
the SEC, within five (5) business days after the Company learns that no review
of a particular Registration Statement will be made by the staff of the SEC or
that the staff has no further comments on the Registration Statement, as the
case may be, a request for acceleration of

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effectiveness of such Registration Statement to a time and date not later than
48 hours after the submission of such request.

          b.   Subject to Section 3(r), the Company shall prepare and file with
the SEC such amendments (including post-effective amendments) and supplements to
a Registration Statement and the prospectus used in connection with such
Registration Statement, which prospectus is to be filed pursuant to Rule 424
promulgated under the 1933 Act, as may be necessary to keep such Registration
Statement effective at all times during the Registration Period, and, during
such period, comply with the provisions of the 1933 Act with respect to the
disposition of all Registrable Securities of the Company covered by such
Registration Statement until such time as all of such Registrable Securities
shall have been disposed of in accordance with the intended methods of
disposition by the seller or sellers thereof as set forth in such Registration
Statement. In the case of amendments and supplements to a Registration Statement
which are required to be filed pursuant to this Agreement (including pursuant to
this Section 3(b)) by reason of the Company filing a report on Form 10-K, Form
10-Q or Form 8-K or any analogous report under the Securities Exchange Act of
1934, as amended (the "1934 Act"), the Company shall have incorporated such
report by reference into the Registration Statement, if applicable, or shall
file such amendments or supplements with the SEC on the same day on which the
1934 Act report is filed which created the requirement for the Company to amend
or supplement the Registration Statement.

          c.   The Company shall (A) permit Legal Counsel to review and comment
upon (i) the Registration Statement at least five (5) days prior to its filing
with the SEC and (ii) all other Registration Statements and all amendments and
supplements to all Registration Statements (except for Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and any
similar or successor reports) within a reasonable number of days prior to their
filing with the SEC, and (B) not file any Registration Statement or amendment or
supplement thereto in a form to which Legal Counsel reasonably objects. The
Company shall not submit a request for acceleration of the effectiveness of a
Registration Statement or any amendment or supplement thereto without the prior
approval of Legal Counsel, which consent shall not be unreasonably withheld. The
Company shall furnish to Legal Counsel, without charge, (i) any correspondence
from the SEC or the staff of the SEC to the Company or its representatives
relating to any Registration Statement, (ii) promptly after the same is prepared
and filed with the SEC, one copy of any Registration Statement and any
amendment(s) thereto, including financial statements and schedules, all
documents incorporated therein by reference and all exhibits and (iii) upon the
effectiveness of any Registration Statement, one copy of the prospectus included
in such Registration Statement and all amendments and supplements thereto. The
Company shall reasonably cooperate with Legal Counsel in performing the
Company's obligations pursuant to this Section 3.

          d.   The Company shall furnish to each Holder whose Registrable
Securities are included in any Registration Statement, without charge, (i)
promptly after the same is prepared and filed with the SEC, at least one copy of
such Registration Statement and any amendment(s) thereto, including financial
statements and schedules, all documents incorporated therein by reference, all
exhibits and each preliminary prospectus, (ii) upon the effectiveness of

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any Registration Statement, ten (10) copies of the prospectus included in such
Registration Statement and all amendments and supplements thereto (or such other
number of copies as such Holder may reasonably request) and (iii) such other
documents, including copies of any preliminary or final prospectus, as such
Holder may reasonably request from time to time in order to facilitate the
disposition of the Registrable Securities owned by such Holder.

          e.   Subject to Section 3(r), the Company shall use its reasonable
best efforts to (i) register and qualify, unless an exemption from registration
and qualification applies, the resale by Holders of the Registrable Securities
covered by a Registration Statement under such other securities or "blue sky"
laws of all the jurisdictions in the United States, (ii) prepare and file in
those jurisdictions, such amendments (including post-effective amendments) and
supplements to such registrations and qualifications as may be necessary to
maintain the effectiveness thereof during the Registration Period, (iii) take
such other actions as may be necessary to maintain such registrations and
qualifications in effect at all times during the Registration Period, and (iv)
take all other actions reasonably necessary or advisable to qualify the
Registrable Securities for sale in such jurisdictions; provided, however, that
the Company shall not be required in connection therewith or as a condition
thereto to (x) qualify to do business in any jurisdiction where it would not
otherwise be required to qualify but for this Section 3(e), (y) subject itself
to general taxation in any such jurisdiction, or (z) file a general consent to
service of process in any such jurisdiction. The Company shall promptly notify
Legal Counsel and each Holder who holds Registrable Securities of the receipt by
the Company of any notification with respect to the suspension of the
registration or qualification of any of the Registrable Securities for sale
under the securities or "blue sky" laws of any jurisdiction in the United States
or its receipt of actual notice of the initiation or threatening of any
proceeding for such purpose.

          f.   The Company shall notify Legal Counsel and each Holder in writing
of the happening of any event, as promptly as practicable after becoming aware
of such event, as a result of which the prospectus included in a Registration
Statement, as then in effect, includes an untrue statement of a material fact or
omission to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading (provided that in no event shall such notice contain any
material, nonpublic information), and, subject to Section 3(r), promptly prepare
a supplement or amendment to such Registration Statement to correct such untrue
statement or omission, and deliver ten (10) copies of such supplement or
amendment to Legal Counsel and each Holder (or such other number of copies as
Legal Counsel or such Holder may reasonably request). The Company shall also
promptly notify Legal Counsel and each Holder in writing (i) when a prospectus
or any prospectus supplement or post-effective amendment has been filed, and
when a Registration Statement or any post-effective amendment has become
effective (notification of such effectiveness shall be delivered to Legal
Counsel and each Holder by facsimile on the same day of such effectiveness and
by overnight mail), (ii) of any request by the SEC for amendments or supplements
to a Registration Statement or related prospectus or related information, and
(iii) of the Company's reasonable determination that a post-effective amendment
to a Registration Statement would be appropriate.

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          g.   Subject to Section 3(r), the Company shall use its reasonable
best efforts to prevent the issuance of any stop order or other suspension of
effectiveness of a Registration Statement, or the suspension of the
qualification of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such
order or suspension at the earliest possible moment and to notify Legal Counsel
and each Holder who holds Registrable Securities being sold of the issuance of
such order and the resolution thereof or its receipt of actual notice of the
initiation or threat of any proceeding for such purpose.

          h.   At the reasonable request of any Holder, the Company shall
furnish to such Holder, on the date of the effectiveness of the Registration
Statement and thereafter from time to time on such dates as a Holder may
reasonably request (i) a letter, dated such date, from the Company's independent
certified public accountants in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten
public offering, addressed to the Holders, and (ii) an opinion, dated as of such
date, of counsel representing the Company for purposes of such Registration
Statement, in form, scope and substance as is customarily given in an
underwritten public offering, addressed to the Holders.

          i.   The Company shall make available for inspection by (i) any
Holder, (ii) Legal Counsel and (iii) one firm of accountants or other agents
retained by the Holders (collectively, the "Inspectors"), all pertinent
financial and other records, and pertinent corporate documents and properties of
the Company (collectively, the "Records"), as shall be reasonably deemed
necessary by each Inspector, and cause the Company's officers, directors and
employees to supply all information which any Inspector may reasonably request;
provided, however, that each Inspector shall agree to hold in strict confidence
and shall not make any disclosure (except to a Holder) or use of any Record or
other information which the Company determines in good faith to be confidential,
and of which determination the Inspectors are so notified, unless (a) the
disclosure of such Records is necessary to avoid or correct a misstatement or
omission in any Registration Statement or is otherwise required under the 1933
Act, (b) the release of such Records is ordered pursuant to a final, non-
appealable subpoena or order from a court or government body of competent
jurisdiction, or (c) the information in such Records has been made generally
available to the public other than by disclosure in violation of this or any
other agreement of which the Inspector has knowledge. Each Holder agrees that it
shall, upon learning that disclosure of such Records is sought in or by a court
or governmental body of competent jurisdiction or through other means, give
prompt notice to the Company and allow the Company, at its expense, to undertake
appropriate action to prevent disclosure of, or to obtain a protective order
for, the Records deemed confidential.

          j.   The Company shall hold in confidence and not make any disclosure
of information concerning a Holder provided to the Company unless (i) disclosure
of such information is necessary to comply with federal or state securities
laws, (ii) the disclosure of such information is necessary to avoid or correct a
misstatement or omission in any Registration Statement, (iii) the release of
such information is ordered pursuant to a subpoena or other final, non-
appealable order from a court or governmental body of competent jurisdiction, or
(iv) such information has been made generally available to the public other than
by disclosure in violation

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of this Agreement or any other agreement. The Company agrees that it shall, upon
learning that disclosure of such information concerning a Holder is sought in or
by a court or governmental body of competent jurisdiction or through other
means, give prompt written notice to such Holder and allow such Holder, at the
Holder's expense, to undertake appropriate action to prevent disclosure of, or
to obtain a protective order for, such information.

          k.   The Company shall use its reasonable best efforts either to (i)
cause all the Registrable Securities covered by a Registration Statement to be
listed on each securities exchange on which securities of the same class or
series issued by the Company are then listed, if any, if the listing of such
Registrable Securities is then permitted under the rules of such exchange, or
(ii) secure designation and quotation of all the Registrable Securities covered
by the Registration Statement on the Nasdaq National Market, or (iii) if,
despite the Company's reasonable best efforts to satisfy the preceding clause
(i) or (ii), the Company is unsuccessful in satisfying the preceding clause (i)
or (ii), to secure the inclusion for quotation on The Nasdaq SmallCap Market for
such Registrable Securities and, without limiting the generality of the
foregoing, to use its reasonable best efforts to arrange for at least two market
makers to register with the National Association of Securities Dealers, Inc.
("NASD") as such with respect to such Registrable Securities. The Company shall
pay all fees and expenses in connection with satisfying its obligation under
this Section 3(k).

          l.   The Company shall cooperate with the Holders who hold Registrable
Securities being offered and, to the extent applicable, facilitate the timely
preparation and delivery of certificates (not bearing any restrictive legend)
representing the Registrable Securities to be offered pursuant to a Registration
Statement and enable such certificates to be in such denominations or amounts,
as the case may be, as the Holders may reasonably request and registered in such
names as the Holders may request.

          m.   If requested by a Holder, the Company shall (i) as soon as
practicable incorporate in a prospectus supplement or post-effective amendment
such information as a Holder reasonably requests to be included therein relating
to the sale and distribution of Registrable Securities, including, without
limitation, information with respect to the number of Registrable Securities
being offered or sold, the purchase price being paid therefor and any other
terms of the offering of the Registrable Securities to be sold in such offering;
(ii) as soon as practicable make all required filings of such prospectus
supplement or post-effective amendment after being notified of the matters to be
incorporated in such prospectus supplement or post-effective amendment; and
(iii) as soon as practicable, supplement or make amendments to any Registration
Statement if reasonably requested by a Holder of such Registrable Securities.

          n.   The Company shall use its reasonable best efforts to cause the
Registrable Securities covered by the Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be
necessary to consummate the disposition of such Registrable Securities.

          o.   The Company shall make generally available to its security
holders as soon as practical, but not later than 90 days after the close of the
period covered thereby, an

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earnings statement (in form complying with the provisions of Rule 158 under the
1933 Act) covering a twelve-month period beginning not later than the first day
of the Company's fiscal quarter next following the effective date of the
Registration Statement.

          p.   The Company shall otherwise use its best efforts to comply with
all applicable rules and regulations of the SEC in connection with any
registration hereunder.

          q.   Within two (2) business days after a Registration Statement which
covers Registrable Securities is ordered effective by the SEC, the Company shall
deliver, and shall cause legal counsel for the Company to deliver, to the
transfer agent for such Registrable Securities (with copies to the Holders whose
Registrable Securities are included in such Registration Statement) confirmation
that such Registration Statement has been declared effective by the SEC in the
form attached hereto as Exhibit A.
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          r.   Notwithstanding anything to the contrary herein, at any time
after the Registration Statement has been declared effective by the SEC, the
Company may delay the disclosure of material non-public information concerning
the Company the disclosure of which at the time is not, in the good faith
opinion of the Board of Directors of the Company and its counsel, in the best
interest of the Company and, in the opinion of counsel to the Company, otherwise
required (a "Grace Period"); provided, that the Company shall promptly (i)
notify the Holders in writing of the existence of material non-public
information giving rise to a Grace Period (provided that in each notice the
Company will not disclose the content of such material non-public information to
the Holders) and the date on which the Grace Period will begin, and (ii) notify
the Holders in writing of the date on which the Grace Period ends; and, provided
further, that no Grace Period shall exceed 30 consecutive days and during any
365 day period such Grace Periods shall not exceed an aggregate of 60 days and
the first day of any Grace Period must be at least two trading days after the
last day of any prior Grace Period (an "Allowable Grace Period"); provided,
however, that such 30 day period shall be extended to 45 days, and such 60 day
period shall be extended to 90 days, in the event that such Grace Period is
pursuant to an acquisition by the Company which is required to be reported under
Item 2 of Form 8-K and for which pro forma financial information is required to
be reported pursuant to Regulation S-X promulgated under the 1933 Act. For
purposes of determining the length of a Grace Period above, the Grace Period
shall begin on and include the date the holders receive the notice referred to
in clause (i) and shall end on and include the later of the date the holders
receive the notice referred to in clause (ii) and the date referred to in such
notice. The provisions of Section 3(g) hereof shall not be applicable during the
period of any Allowable Grace Period. Upon expiration of the Grace Period, the
Company shall again be bound by the first sentence of Section 3(f) with respect
to the information giving rise thereto unless such material non-public
information is no longer applicable.

     4.   OBLIGATIONS OF THE HOLDERS.
          --------------------------

          a.   At least seven (7) business days prior to the first anticipated
filing date of a Registration Statement, the Company shall notify each Holder in
writing of the information the Company requires from each such Holder if such
Holder elects to have any of such Holder's

                                       11
<PAGE>

Registrable Securities included in such Registration Statement. It shall be a
condition precedent to the obligations of the Company to complete the
registration pursuant to this Agreement with respect to the Registrable
Securities of a particular Holder that such Holder shall furnish to the Company
such information regarding itself, the Registrable Securities held by it and the
intended method of disposition of the Registrable Securities held by it as shall
be reasonably required to effect the registration of such Registrable Securities
and shall execute such documents in connection with such registration as the
Company may reasonably request.

          b.    Each Holder, by such Holder's acceptance of the Registrable
Securities, agrees to cooperate with the Company as reasonably requested by the
Company in connection with the preparation and filing of any Registration
Statement hereunder, unless such Holder has notified the Company in writing of
such Holder's election to exclude all of such Holder's Registrable Securities
from such Registration Statement.

          c.    Each Holder agrees that, upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 3(g) or
the first sentence of 3(f), such Holder will immediately discontinue disposition
of Registrable Securities pursuant to any Registration Statement(s) covering
such Registrable Securities until such Holder's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 3(g) or the first
sentence of 3(f) or receipt of notice that no supplement or amendment is
required. Notwithstanding anything to the contrary, the Company shall cause its
transfer agent to deliver unlegended shares of Common Stock to a transferee of a
Holder in accordance with the terms of the Redemption and Exchange Agreement in
connection with any sale of Registrable Securities with respect to which a
Holder has entered into a contract for sale prior to the Holder's receipt of a
notice from the Company of the happening of any event of the kind described in
Section 3(g) or the first sentence of 3(f) and for which the Holder has not yet
settled.

     5.   EXPENSES OF REGISTRATION.
          ------------------------

          All reasonable expenses, other than underwriting discounts and
commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation, all
registration, listing and qualifications fees, printers and accounting fees, and
fees and disbursements of counsel for the Company (but not including fees and
expenses of Legal Counsel) shall be paid by the Company.

     6.   INDEMNIFICATION.
          ---------------

          In the event any Registrable Securities are included in a Registration
Statement under this Agreement:

          a.    To the fullest extent permitted by law, the Company will, and
hereby does, indemnify, hold harmless and defend each Holder, the directors,
officers, partners, employees, agents, representatives of, and each Person, if
any, who controls any Holder within the meaning of the 1933 Act or the 1934 Act
(each, an "Indemnified Person"), against any losses, claims, damages,
liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys'
fees,

                                       12
<PAGE>

amounts paid in settlement or expenses, joint or several, (collectively,
"Claims") incurred in investigating, preparing or defending any action, claim,
suit, inquiry, proceeding, investigation or appeal taken from the foregoing by
or before any court or governmental, administrative or other regulatory agency,
body or the SEC, whether pending or threatened, whether or not an indemnified
party is or may be a party thereto ("Indemnified Damages"), to which any of them
may become subject insofar as such Claims (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon: (i)
any untrue statement or alleged untrue statement of a material fact in a
Registration Statement or any post-effective amendment thereto or in any filing
made in connection with the qualification of the offering under the securities
or other "blue sky" laws of any jurisdiction in which Registrable Securities are
offered ("Blue Sky Filing"), or the omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, (ii) any untrue statement or alleged untrue statement of
a material fact contained in any preliminary prospectus if used prior to the
effective date of such Registration Statement, or contained in the final
prospectus (as amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the SEC) or the omission or alleged omission
to state therein any material fact necessary to make the statements made
therein, in light of the circumstances under which the statements therein were
made, not misleading, (iii) any violation or alleged violation by the Company of
the 1933 Act, the 1934 Act, any other law, including, without limitation, any
state securities law, or any rule or regulation thereunder relating to the offer
or sale of the Registrable Securities pursuant to a Registration Statement or
(iv) any material violation of this Agreement (the matters in the foregoing
clauses (i) through (iv) being, collectively, "Violations"). Subject to Section
6(c), the Company shall reimburse the Indemnified Persons, promptly as such
expenses are incurred and are due and payable, for any legal fees or other
reasonable expenses incurred by them in connection with investigating or
defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(a): (i) shall
not apply to a Claim by an Indemnified Person arising out of or based upon a
Violation which occurs in reliance upon and in conformity with information
furnished in writing to the Company by such Indemnified Person for such
Indemnified Person expressly for use in connection with the preparation of the
Registration Statement or any such amendment thereof or supplement thereto, if
such prospectus was timely made available by the Company pursuant to Section
3(d); (ii) with respect to any preliminary prospectus, shall not inure to the
benefit of any such person from whom the person asserting any such Claim
purchased the Registrable Securities that are the subject thereof (or to the
benefit of any person controlling such person) if the untrue statement or
omission of material fact contained in the preliminary prospectus was corrected
in the prospectus, as then amended or supplemented, if such prospectus was
timely made available by the Company pursuant to Section 3(d), and the
Indemnified Person was promptly advised in writing not to use the incorrect
prospectus prior to the use giving rise to a violation and such Indemnified
Person, notwithstanding such advice, used it or failed to deliver the correct
prospectus as required by the 1933 Act and such correct prospectus was timely
made available pursuant to Section 3(d); (iii) shall not be available to the
extent such Claim is based on a failure of the Holder to deliver or to cause to
be delivered the prospectus made available by the Company, including a corrected
prospectus, if such prospectus or corrected prospectus was timely made available
by the Company pursuant to Section 3(d); and (iv) shall not apply to amounts
paid in settlement of any Claim if such settlement is effected

                                       13
<PAGE>

without the prior written consent of the Company, which consent shall not be
unreasonably withheld. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified Person
and shall survive the transfer of the Registrable Securities by the Holders
pursuant to Section 9.

          b.    In connection with any Registration Statement in which a Holder
is participating, each such Holder agrees to severally and not jointly
indemnify, hold harmless and defend, to the same extent and in the same manner
as is set forth in Section 6(a), the Company, each of its directors, each of its
officers who signs the Registration Statement each Person, if any, who controls
the Company within the meaning of the 1933 Act or the 1934 Act (each an
"Indemnified Party"), against any Claim or Indemnified Damages to which any of
them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar
as such Claim or Indemnified Damages arise out of or are based upon any
Violation, in each case to the extent, and only to the extent, that such
Violation occurs in reliance upon and in conformity with written information
furnished to the Company by such Holder expressly for use in connection with
such Registration Statement; and, subject to Section 6(c), such Holder will
reimburse any legal or other expenses reasonably incurred by an Indemnified
Party in connection with investigating or defending any such Claim; provided,
however, that the indemnity agreement contained in this Section 6(b) and the
agreement with respect to contribution contained in Section 7 shall not apply to
amounts paid in settlement of any Claim if such settlement is effected without
the prior written consent of such Holder, which consent shall not be
unreasonably withheld; provided, further, however, that the Holder shall be
liable under this Section 6(b) for only that amount of a Claim or Indemnified
Damages as does not exceed the net proceeds to such Holder as a result of the
sale of Registrable Securities pursuant to such Registration Statement. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Indemnified Party and shall survive the transfer of
the Registrable Securities by the Holders pursuant to Section 9. Notwithstanding
anything to the contrary contained herein, the indemnification agreement
contained in this Section 6(b) with respect to any preliminary prospectus shall
not inure to the benefit of any Indemnified Party if the untrue statement or
omission of material fact contained in the preliminary prospectus was corrected
on a timely basis in the prospectus, as then amended or supplemented.

          c.    Promptly after receipt by an Indemnified Person or Indemnified
Party under this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving a Claim,
such Indemnified Person or Indemnified Party shall, if a Claim in respect
thereof is to be made against any indemnifying party under this Section 6,
deliver to the indemnifying party a written notice of the commencement thereof,
and the indemnifying party shall have the right to participate in, and, to the
extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume control of the defense thereof with counsel
mutually satisfactory to the indemnifying party and the Indemnified Person or
the Indemnified Party, as the case may be; provided, however, that an
Indemnified Person or Indemnified Party shall have the right to retain its own
counsel with the fees and expenses of not more than one counsel for such
Indemnified Person or Indemnified Party to be paid by the indemnifying party,
if, in the reasonable opinion of counsel retained by the indemnifying party, the
representation by such counsel of the Indemnified Person or

                                       14
<PAGE>

Indemnified Party and the indemnifying party would be inappropriate due to
actual or potential differing interests between such Indemnified Person or
Indemnified Party and any other party represented by such counsel in such
proceeding. In the case of an Indemnified Person, legal counsel referred to in
the immediately preceding sentence shall be selected by the Holders holding at
least two-thirds (2/3) in interest of the Registrable Securities included in the
Registration Statement to which the Claim relates. The Indemnified Party or
Indemnified Person shall cooperate fully with the indemnifying party in
connection with any negotiation or defense of any such action or Claim by the
indemnifying party and shall furnish to the indemnifying party all information
reasonably available to the Indemnified Party or Indemnified Person which
relates to such action or Claim. The indemnifying party shall keep the
Indemnified Party or Indemnified Person fully apprized at all times as to the
status of the defense or any settlement negotiations with respect thereto. No
indemnifying party shall be liable for any settlement of any action, claim or
proceeding effected without its prior written consent, provided, however, that
the indemnifying party shall not unreasonably withhold, delay or condition its
consent. No indemnifying party shall, without the prior written consent of the
Indemnified Party or Indemnified Person, consent to entry of any judgment or
enter into any settlement or other compromise which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party or Indemnified Person of a release from all liability in
respect to such Claim or litigation. Following indemnification as provided for
hereunder, the indemnifying party shall be subrogated to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made.
The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such
indemnifying party of any liability to the Indemnified Person or Indemnified
Party under this Section 6, except to the extent that the indemnifying party is
prejudiced in its ability to defend such action.

          d.    The indemnification required by this Section 6 shall be made by
periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

          e.    The indemnity agreements contained herein shall be in addition
to (i) any cause of action or similar right of the Indemnified Party or
Indemnified Person against the indemnifying party or others, and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

     7.   CONTRIBUTION.
          -----------

         To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no person involved in the sale of Registrable Securities which person is
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) in connection with such sale shall be entitled to contribution
from any person involved in such sale of Registrable Securities who was not
guilty of fraudulent

                                       15
<PAGE>

misrepresentation; and (ii) contribution by any seller of Registrable Securities
shall be limited in amount to the net amount of proceeds received by such seller
from the sale of such Registrable Securities pursuant to such Registration
Statement.

     8.  REPORTS UNDER THE 1934 ACT.
         --------------------------

         With a view to making available to the Holders the benefits of Rule 144
promulgated under the 1933 Act or any other similar rule or regulation of the
SEC that may at any time permit the Holders to sell securities of the Company to
the public without registration ("Rule 144"), the Company agrees to:

         a.  make and keep public information available, as those terms are
understood and defined in Rule 144;

         b.  file with the SEC in a timely manner all reports and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the Company remains subject to such requirements (it being understood that
nothing herein shall limit the Company's obligations under Section 4(b) of the
Redemption and Exchange Agreement) and the filing of such reports and other
documents is required for the applicable provisions of Rule 144; and

         c.  furnish to each Holder so long as such Holder owns Registrable
Securities, promptly upon request, (i) a written statement by the Company, if
true, that it has complied with the reporting requirements of Rule 144, the 1933
Act and the 1934 Act, (ii) a copy of the most recent annual or quarterly report
of the Company and such other reports and documents so filed by the Company, and
(iii) such other information as may be reasonably requested to permit the
Holders to sell such securities pursuant to Rule 144 without registration.

     9.  ASSIGNMENT OF REGISTRATION RIGHTS.
         ---------------------------------

         The rights under this Agreement shall be automatically assignable by
the Holders to any transferee of Registrable Securities having a face value of
at least $5,000,000 if: (i) the Holder agrees in writing with the transferee or
assignee to assign such rights, and a copy of such agreement is furnished to the
Company within ten (10) days after such assignment; (ii) the Company is, within
ten (10) days after such transfer or assignment, furnished with written notice
of (a) the name and address of such transferee or assignee, and (b) the
securities with respect to which such registration rights are being transferred
or assigned; (iii) immediately following such transfer or assignment the further
disposition of such securities by the transferee or assignee is restricted under
the 1933 Act and applicable state securities laws; (iv) at or before the time
the Company receives the written notice contemplated by clause (ii) of this
sentence the transferee or assignee agrees in writing with the Company to be
bound by all of the provisions contained herein; and (v) such transfer shall
have been made in accordance with the applicable requirements of the Redemption
and Exchange Agreement.

                                       16
<PAGE>

     10. AMENDMENT OF REGISTRATION RIGHTS.
         --------------------------------

         Provisions of this Agreement may be amended and the observance thereof
may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and Holders who then hold at least two-thirds ([]) of the Registrable
Securities. Any amendment or waiver effected in accordance with this Section 10
shall be binding upon each Holder and the Company. No such amendment shall be
effective to the extent that it applies to less than all of the holders of the
Registrable Securities. No consideration shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of any of this
Agreement unless the same consideration also is offered to all of the parties to
this Agreement.

     11. MISCELLANEOUS.
         -------------

         a.    A Person is deemed to be a holder of Registrable Securities
whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or
elections from two or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or
election received from the registered owner of such Registrable Securities.

         b.    Any notices, consents, waivers or other communications required
or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered: (i) upon receipt, when delivered
personally; (ii) upon receipt, when sent by facsimile (provided confirmation of
transmission is mechanically or electronically generated and kept on file by the
sending party); or (iii) one business day after deposit with a nationally
recognized overnight delivery service, in each case properly addressed to the
party to receive the same. The addresses and facsimile numbers for such
communications shall be:

     If to the Company:

         MicroStrategy Incorporated
         8000 Towers Crescent Drive
         Vienna, Virginia 22182
         Telephone: (703) 848-8600
         Facsimile: (703) 744-6050
         Attention: Eric F. Brown, Chief Financial Officer

     With a copy to:

         Hale and Dorr LLP
         60 State Street
         Boston, Massachusetts 02109
         Telephone: (617) 526-6000
         Facsimile: (617) 526-5000
         Attention: Thomas S. Ward, Esq.

                                       17
<PAGE>

If to the Investor, to its address and facsimile number set forth on the
Schedule of Investor attached hereto, with copies to such Investor's
representatives as set forth on the Schedule of Investor, or to such other
address and/or facsimile number and/or to the attention of such other person as
the recipient party has specified by written notice given to each other party
five (5) days prior to the effectiveness of such change. Written confirmation of
receipt (A) given by the recipient of such notice, consent, waiver or other
communication, (B) mechanically or electronically generated by the sender's
facsimile machine containing the time, date, recipient facsimile number and an
image of the first page of such transmission or (C) provided by a courier or
overnight courier service shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from a nationally recognized overnight delivery
service in accordance with clause (i), (ii) or (iii) above, respectively.

          c.   Failure of any party to exercise any right or remedy under this
Agreement or otherwise, or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

          d.   All questions concerning the construction, validity, enforcement
and interpretation of this Agreement shall be governed by the internal laws of
the State of New York, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of New York or any other
jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of New York. Each party hereby irrevocably submits to the
non-exclusive jurisdiction of the state and federal courts sitting the City of
New York, borough of Manhattan, for the adjudication of any dispute hereunder or
in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law.
If any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of any provision of this Agreement in any other
jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND
AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY.

          e.   Subject to Section 9(e) of the Redemption and Exchange Agreement,
this Agreement, the Redemption and Exchange Agreement and the Certificates of
Designations

                                       18
<PAGE>

constitute the entire agreement among the parties hereto with respect to the
subject matter hereof and thereof. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein and
therein. This Agreement, the Redemption and Exchange Agreement and the
Certificates of Designations supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof.

          f.   Subject to the requirements of Section 9, this Agreement shall
inure to the benefit of and be binding upon the permitted successors and assigns
of each of the parties hereto.

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

          h.   This Agreement may be executed in identical counterparts, each of
which shall be deemed an original but all of which shall constitute one and the
same agreement. This Agreement, once executed by a party, may be delivered to
the other party hereto by facsimile transmission of a copy of this Agreement
bearing the signature of the party so delivering this Agreement.

          i.   Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

          j.   All consents and other determinations required to be made by the
Holders pursuant to this Agreement shall be made, unless otherwise specified in
this Agreement, by Holders holding at least two-thirds ([]) of the Registrable
Securities, determined as if all of the Preferred Shares then outstanding have
been converted into Registrable Securities without regard to any limitations on
conversion of the Preferred Shares.

          k.   The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent and no rules of
strict construction will be applied against any party.

          l.   This Agreement is intended for the benefit of the parties hereto
and their respective permitted successors and assigns, and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person.

                                  * * * * * *

                                       19
<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be duly executed as of day and year first above written.

COMPANY:                                    INVESTOR:

MICROSTRATEGY INCORPORATED                   LEONARDO, L.P.

By: /s/ Michael J. Saylor                    By:  Angelo, Gordon & Co., L.P.
   ---------------------------------------
Name:   Michael J. Saylor
     -------------------------------------
Its:  Chairman and Chief Executive Officer   By: /s/John M. Angelo
     -------------------------------------      --------------------------------
                                             Name:  John M. Angelo
                                                  ------------------------------
                                             Its: Chief Executive Officer
                                                  ------------------------------

                                       20
<PAGE>

                             SCHEDULE OF INVESTOR

<TABLE>
<CAPTION>
Investor's Name                Investor Address                              Investor's Legal Representatives'
                               and Facsimile Number                          Address and Facsimile Number
<S>                            <C>                                           <C>
_________________________      _______________________________________       _____________________________________
Leonardo, L.P.                 %Angelo, Gordon & Co., L.P.                   %Angelo, Gordon & Co., L.P.
                               245 Park Avenue - 26th Floor                  245 Park Avenue - 26th Floor
                               New York, New York 10167                      New York, New York 10167
                               Attention: Ari Storch                         Attention: Ari Storch
                                          Adam J. Chill                                 Adam J. Chill
                               Facsimile: (212) 867-6449                     Facsimile: (212) 867-6449
                               Telephone: (212) 692-2035                     Telephone: (212) 692-2035
</TABLE>

                                       21
<PAGE>

EXHIBIT A
FORM OF NOTICE OF EFFECTIVENESS
OF REGISTRATION STATEMENT

[TRANSFER AGENT]
Attn:_________________

          Re:  MicroStrategy Incorporated

Ladies and Gentlemen:

     We are counsel to MicroStrategy Incorporated, a Delaware corporation (the
"Company"), and have represented the Company in connection with that certain
Redemption and Exchange Agreement (the "Redemption and Exchange Agreement")
entered into by and among the Company and the investor named therein (the
"Holder") pursuant to which the Company issued to the Holder in exchange for
shares of the Company's Series A Convertible Preferred Stock, par value $0.001
per share, held by the Holder, shares of the Company's Class A common stock, par
value $0.001 per share (the "Common Stock"), shares of the Company's Series B
Convertible Preferred Stock,  par value $0.001 per share, convertible into
shares of Common Stock, Series C Convertible Preferred Stock,  par value $0.001
per share, convertible into shares of Common Stock, and shares of the Company's
Series D Convertible Preferred Stock, par value $0.001 per share, convertible
into shares of Common Stock.  Pursuant to the Redemption and Exchange Agreement,
the Company also has entered into a Registration Rights Agreement with the
Holder (the "Registration Rights Agreement") pursuant to which the Company
agreed, among other things, to register the Registrable Securities (as defined
in the Registration Rights Agreement), under the Securities Act of 1933, as
amended (the "1933 Act").  In connection with the Company's obligations under
the Registration Rights Agreement, on ____________ ___, 2001, the Company filed
a Registration Statement on Form S-3 (File No. 333-_____________) (the
"Registration Statement") with the Securities and Exchange Commission (the
"SEC") relating to the Registrable Securities which names the Holder as a
selling stockholder thereunder.

     In connection with the foregoing, we advise you that a member of the SEC's
staff has advised us by telephone that the SEC has entered an order declaring
the Registration Statement effective under the 1933 Act at [ENTER TIME OF
EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge, after
telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the
Registration Statement.

                                             Very truly yours,

                                             [ISSUER'S COUNSEL]
                                             By:________________________________

cc:  [LIST NAMES OF HOLDERS]

                                       22<PAGE>

EXHIBIT 4.2

                       ________________________________

                         Registration Rights Agreement

                          Dated As of January 16, 2001

                                     among

                          Marriott International, Inc.

                                      and

                     Merrill Lynch, Pierce, Fenner & Smith
                                 Incorporated

                         Banc of America Securities LLC

                         Banc One Capital Markets, Inc.

                         Deutsche Bank Securities Inc.

                              Lehman Brothers Inc.

                           Salomon Smith Barney Inc.

                           Scotia Capital (USA) Inc.

                       ________________________________
<PAGE>

                         REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (the "Agreement") is made and entered
into this 16/th/ day of January, 2001, between Marriott International, Inc., a
Delaware corporation (the "Company"), and Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Banc of America Securities LLC, Banc One Capital Markets, Inc.,
Deutsche Bank Securities Inc., Lehman Brothers Inc., Salomon Smith Barney Inc.,
and Scotia Capital (USA) Inc. (the "Initial Purchasers").

     This Agreement is made pursuant to the Purchase Agreement, dated January
10, 2001, among the Company and the Initial Purchasers (the "Purchase
Agreement"), which provides for the sale by the Company to the Initial
Purchasers of an aggregate of $300 million principal amount of the Company's 7%
Series E Notes due January 15, 2008 (the "Securities"). In order to induce the
Initial Purchasers to enter into the Purchase Agreement, the Company has agreed
to provide to the Initial Purchasers and their direct and indirect transferees
the registration rights set forth in this Agreement. The execution of this
Agreement is a condition to the closing under the Purchase Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

     1.   Definitions.
          -----------

          As used in this Agreement, the following capitalized defined terms
shall have the following meanings:

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

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

          "Closing Date" shall mean the Closing Time as defined in the Purchase
           ------------
    Agreement.

          "Company" shall have the meaning set forth in the preamble and shall
           -------
    also include the Company's successors.

          "Depositary" shall mean The Depository Trust Company, or any other
           ----------
    depositary appointed by the Company, provided, however, that such depositary
    must have an address in the Borough of Manhattan, in the City of New York.

          "Exchange Offer" shall mean the exchange offer by the Company of
           --------------
    Exchange Securities for Registrable Securities pursuant to Section 2.1
    hereof.
<PAGE>

          "Exchange Offer Registration" shall mean a registration under the 1933
           ---------------------------
    Act effected pursuant to Section 2.1 hereof.

          "Exchange Offer Registration Statement" shall mean an exchange offer
           -------------------------------------
    registration statement on Form S-4 (or, if applicable, on another
    appropriate form), and all amendments and supplements to such registration
    statement, including the Prospectus contained therein, all exhibits thereto
    and all documents incorporated by reference therein.

          "Exchange Period" shall have the meaning set forth in Section 2.1
           ---------------
    hereof.

          "Exchange Securities" shall mean the 7% Series E Notes due January 15,
           -------------------
    2008 issued by the Company under the Indenture, containing terms identical
    to the Series E Notes in all material respects (except for references to
    certain interest rate provisions, restrictions on transfers and restrictive
    legends), to be offered to Holders of Securities in exchange for Registrable
    Securities pursuant to the Exchange Offer.

          "Holder" shall mean each Initial Purchaser, for so long as it owns any
           ------
    Registrable Securities, and each of its successors, assigns and direct and
    indirect transferees who become registered owners of Registrable Securities
    under the Indenture and each Participating Broker-Dealer that holds Exchange
    Securities for so long as such Participating Broker-Dealer is required to
    deliver a prospectus meeting the requirements of the 1933 Act in connection
    with any resale of such Exchange Securities.

          "Indenture" shall mean the Indenture relating to the Securities, dated
           ---------
    as of November 16, 1998, between the Company and The Chase Manhattan Bank,
    as trustee, as the same may be amended, supplemented, waived or otherwise
    modified from time to time in accordance with the terms thereof.

          "Initial Purchasers" shall have the meaning set forth in the preamble.
           ------------------

          "Majority Holders" shall mean the Holders of a majority of the
           ----------------
    aggregate principal amount of Outstanding (as defined in the Indenture)
    Registrable Securities; provided that whenever the consent or approval of
                            --------
    Holders of a specified percentage of Registrable Securities is required
    hereunder, Registrable Securities held by the Company and other obligors on
    the Securities or any Affiliate (as defined in the Indenture) of the Company
    shall be disregarded in determining whether such consent or approval was
    given by the Holders of such required percentage amount.

          "Participating Broker-Dealer" shall mean any of Merrill Lynch, Pierce,
           ---------------------------
    Fenner & Smith Incorporated and any other broker-dealer which makes a market
    in the Securities and exchanges Registrable Securities in the Exchange Offer
    for Exchange Securities.

                                       2

<PAGE>

          "Person" shall mean an individual, partnership (general or limited),
           ------
    corporation, limited liability company, trust or unincorporated
    organization, or a government or agency or political subdivision thereof.

          "Private Exchange" shall have the meaning set forth in Section 2.1
           ----------------
    hereof.

          "Private Exchange Securities" shall have the meaning set forth in
           ---------------------------
    Section 2.1 hereof.

          "Prospectus" shall mean the prospectus included in a Registration
           ----------
    Statement, including any preliminary prospectus, and any such prospectus as
    amended or supplemented by any prospectus supplement, including any such
    prospectus supplement with respect to the terms of the offering of any
    portion of the Registrable Securities covered by a Shelf Registration
    Statement, and by all other amendments and supplements to a prospectus,
    including post-effective amendments, and in each case including all material
    incorporated by reference therein.

          "Purchase Agreement" shall have the meaning set forth in the preamble.
           ------------------

          "Registrable Securities" shall mean the Securities and, if issued, the
           ----------------------
    Private Exchange Securities; provided, however, that Securities and, if
    issued, the Private Exchange Securities, shall cease to be Registrable
    Securities when (i) a Registration Statement with respect to such Securities
    shall have been declared effective under the 1933 Act and such Securities
    shall have been disposed of pursuant to such Registration Statement, (ii)
    such Securities have been sold to the public pursuant to Rule l44 (or any
    similar provision then in force, but not Rule 144A) under the 1933 Act,
    (iii) such Securities shall have ceased to be outstanding or (iv) the
    Exchange Offer is consummated (except in the case of Securities purchased
    from the Company and continued to be held by the Initial Purchasers).

          "Registration Expenses" shall mean any and all expenses incident to
           ---------------------
    performance of or compliance by the Company with this Agreement, including
    without limitation: (i) all SEC, or National Association of Securities
    Dealers, Inc. (the "NASD") registration and filing fees, (ii) all fees and
    expenses incurred in connection with compliance with state securities or
    blue sky laws, (iii) all expenses of any Persons in preparing or assisting
    in preparing, word processing, printing and distributing any Registration
    Statement, any Prospectus, any amendments or supplements thereto, any
    underwriting agreements, securities sales agreements and other documents
    relating to the performance of and compliance with this Agreement, (iv) all
    rating agency fees, (vi) the fees and disbursements of counsel for the
    Company and of the independent public accountants of the Company, including
    the expenses of any special audits or "cold comfort" letters required by or
    incident to such performance and compliance, (vi) the fees and expenses of
    the Trustee, and any escrow agent or custodian, (vii) the reasonable fees
    and expenses of counsel to the Initial Purchasers in connection therewith,
    (ix) the reasonable fees and

                                       3
<PAGE>

     disbursements of Piper Marbury Rudnick & Wolfe LLP, special counsel
     representing the Holders of Registrable Securities and (x) any fees and
     disbursements of the underwriters customarily required to be paid by
     issuers or sellers of securities and the fees and expenses of any special
     experts retained by the Company in connection with any Registration
     Statement, but excluding underwriting discounts and commissions and
     transfer taxes, if any, relating to the sale or disposition of Registrable
     Securities by a Holder.

          "Registration Statement" shall mean any registration statement of the
           ----------------------
     Company which covers any of the Exchange Securities or Registrable
     Securities pursuant to the provisions of this Agreement, and all amendments
     and supplements to any such Registration Statement, including post-
     effective amendments, in each case including the Prospectus contained
     therein, all exhibits thereto and all material incorporated by reference
     therein.

          "SEC" shall mean the Securities and Exchange Commission or any
           ---
     successor agency or government body performing the functions currently
     performed by the United States Securities and Exchange Commission.

          "Series E Notes" shall have the meaning set forth in the preamble.
           --------------

          "Shelf Registration" shall mean a registration effected pursuant to
           ------------------
     Section 2.2 hereof.

          "Shelf Registration Statement" shall mean a "shelf" registration
           ----------------------------
     statement of the Company pursuant to the provisions of Section 2.2 of this
     Agreement which covers all of the Registrable Securities or all of the
     Private Exchange Securities on an appropriate form under Rule 415 under the
     1933 Act, or any similar rule that may be adopted by the SEC, and all
     amendments and supplements to such registration statement, including post-
     effective amendments, in each case including the Prospectus contained
     therein, all exhibits thereto and all material incorporated by reference
     therein.

          "Special Counsel" shall mean Piper Marbury Rudnick & Wolfe LLP, in its
           ---------------
     capacity as special counsel representing the Holders of Registrable
     Securities.

          "Trustee" shall mean the trustee with respect to the Securities under
           -------
     the Indenture.

          2.   Registration Under the 1933 Act.
               -------------------------------

          2.1  Exchange Offer.  The Company shall, for the benefit of the
               --------------
Holders, at the Company's cost, (A) prepare and not later than 90 calendar days
following the Closing Date, file with the SEC an Exchange Offer Registration
Statement on an appropriate form under the 1933 Act with respect to a proposed
Exchange Offer and the issuance and delivery to the Holders, in exchange for the
Registrable Securities (other than Private Exchange Securities), of

                                       4
<PAGE>

a like principal amount of Exchange Securities, (B) use its reasonable efforts
to cause the Exchange Offer Registration Statement to be declared effective
under the 1933 Act within 180 calendar days of the Closing Date, (C) use its
reasonable efforts to keep the Exchange Offer Registration Statement effective
until the closing of the Exchange Offer and (D) use its reasonable efforts to
cause the Exchange Offer to be consummated not later than 210 calendar days
following the Closing Date. The Exchange Securities will be issued under the
Indenture. Upon the effectiveness of the Exchange Offer Registration Statement,
within the agreed-upon time limits, the Company shall commence the Exchange
Offer, it being the objective of such Exchange Offer to enable each Holder
eligible and electing to exchange Registrable Securities for Exchange Securities
(assuming that such Holder (a) is not an affiliate of the Company within the
meaning of Rule 405 under the 1933 Act, (b) is not a broker-dealer tendering
Registrable Securities acquired directly from the Company for its own account,
(c) acquired the Exchange Securities in the ordinary course of such Holder's
business and (d) has no arrangements or understandings with any Person to
participate in the Exchange Offer for the purpose of distributing the Exchange
Securities) to transfer such Exchange Securities from and after their receipt
without any limitations or restrictions under the 1933 Act and under state
securities or blue sky laws.

          In order to participate in the Exchange Offer, each Holder must
represent to the Company at the time of the Consummation of the Exchange Offer
that it (a) is not an affiliate of the Company within the meaning of Rule 405
under the 1933 Act, (b) is not a broker-dealer tendering Registrable Securities
acquired directly from the Company for its own account, (c) acquired the
Exchange Securities in the ordinary course of such Holder's business and (d) has
no arrangements or understandings with any Person to participate in the Exchange
Offer for the purpose of distributing the Exchange Securities.

          In connection with the Exchange Offer, the Company shall:

               (a)  mail as promptly as practicable to each Holder a copy of the
Prospectus forming part of the Exchange Offer Registration Statement, together
with an appropriate letter of transmittal and related documents;

               (b)  keep the Exchange Offer open for acceptance for a period of
not less than 30 calendar days after the date notice thereof is mailed to the
Holders (or longer at the option of the Company or if required by applicable
law) (such period referred to herein as the "Exchange Period");

               (c)  utilize the services of the Depositary for the Exchange
Offer;

               (d)  permit Holders to withdraw tendered Registrable Securities
at any time prior to 5:00 p.m. (Eastern Time), on the last business day of the
Exchange Period, by sending to the institution specified in the notice, a
telegram, telex, facsimile transmission or letter setting forth the name of such
Holder, the principal amount of Registrable Securities

                                       5
<PAGE>

delivered for exchange, and a statement that such Holder is withdrawing such
Holder's election to have such Securities exchanged;

               (e)  notify each Holder that any Registrable Security not
tendered will remain outstanding and continue to accrue interest, but will not
retain any rights under this Agreement (except in the case of the Initial
Purchasers and Participating Broker-Dealers as provided herein); and

               (f)  otherwise comply in all respects with all applicable laws
relating to the Exchange Offer.

          If, prior to consummation of the Exchange Offer, the Initial
Purchasers hold any Securities acquired by them and having the status of an
unsold allotment in the initial distribution, the Company upon the request of
any Initial Purchasers shall, simultaneously with the delivery of the Exchange
Securities in the Exchange Offer, issue and deliver to such Initial Purchasers
in exchange (the "Private Exchange") for the Securities held by such Initial
Purchasers, a like principal amount of debt securities of the Company on a
senior basis, that are identical (except that such securities shall bear
appropriate transfer restrictions) to the Exchange Securities (the "Private
Exchange Securities").

          The Exchange Securities and the Private Exchange Securities shall be
issued under (i) the Indenture or (ii) an indenture identical in all material
respects to the Indenture and which, in either case, has been qualified under
the Trust Indenture Act of 1939, as amended (the "TIA"), or is exempt from such
qualification and shall provide that the Exchange Securities shall not be
subject to the transfer restrictions set forth in the Indenture but that the
Private Exchange Securities shall be subject to such transfer restrictions. The
Indenture or such indenture shall provide that the Exchange Securities, the
Private Exchange Securities and the Securities shall vote and consent together
on all matters as one class and that none of the Exchange Securities, the
Private Exchange Securities or the Securities will have the right to vote or
consent as a separate class on any matter. The Private Exchange Securities shall
be of the same series as and the Company shall use all commercially reasonable
efforts to have the Private Exchange Securities bear the same CUSIP numbers as
the Exchange Securities. The Company shall not have any liability under this
Agreement solely as a result of such Private Exchange Securities not bearing the
same CUSIP numbers as the Exchange Securities.

          As soon as practicable after the close of the Exchange Offer and/or
the Private Exchange, as the case may be, the Company shall:

               (i)  accept for exchange all Registrable Securities duly tendered
          and not validly withdrawn pursuant to the Exchange Offer in accordance
          with the terms of the Exchange Offer Registration Statement and the
          letter of transmittal which shall be an exhibit thereto;

                                       6
<PAGE>

               (ii)  accept for exchange all Securities properly tendered
         pursuant to the Private Exchange;

               (iii) deliver to the Trustee for cancellation all Registrable
         Securities so accepted for exchange; and

               (iv)  cause the Trustee promptly to authenticate and deliver
         Exchange Securities or Private Exchange Securities, as the case may be,
         to each Holder of Registrable Securities so accepted for exchange in a
         principal amount equal to the principal amount of the Registrable
         Securities of such Holder so accepted for exchange.

         Interest on each Exchange Security and Private Exchange Security will
accrue from the last date on which interest was paid on the Registrable
Securities surrendered in exchange therefor or, if no interest has been paid on
the Registrable Securities, from the date of original issuance. The Exchange
Offer and the Private Exchange shall not be subject to any conditions, other
than (i) that the Exchange Offer or the Private Exchange, or the making of any
exchange by a Holder, does not violate applicable law or any applicable
interpretation of the staff of the SEC, (ii) the due tendering of Registrable
Securities in accordance with the Exchange Offer and the Private Exchange, (iii)
that each Holder of Registrable Securities exchanged in the Exchange Offer shall
have represented that all Exchange Securities to be received by it shall be
acquired in the ordinary course of its business and that at the time of the
consummation of the Exchange Offer it shall have no arrangement or understanding
with any person to participate in the distribution (within the meaning of the
1933 Act) of the Exchange Securities and shall have made such other
representations as may be reasonably necessary under applicable SEC rules,
regulations or interpretations to render the use of Form S-4 or other
appropriate form under the 1933 Act available and (iv) that no action or
proceeding shall have been instituted or threatened in any court or by or before
any governmental agency with respect to the Exchange Offer or the Private
Exchange which, in the Company's judgment, would reasonably be expected to
impair the ability of the Company to proceed with the Exchange Offer or the
Private Exchange. The Company shall inform the Initial Purchasers of the names
and addresses of the Holders to whom the Exchange Offer is made, and the Initial
Purchasers shall have the right to contact such Holders and otherwise facilitate
the tender of Registrable Securities in the Exchange Offer.

         2.2   Shelf Registration.  If
               ------------------

         (i)  because of any changes in law, SEC rules or regulations or
applicable interpretations thereof by the staff of the SEC occurring after the
Closing Date, the Company is not permitted to effect the Exchange Offer as
contemplated by Section 2.1 hereof,

         (ii) for any other reason the Exchange Offer Registration Statement is
not declared effective within 180 calendar days following the original issue of
the Registrable Securities or the Exchange Offer is not consummated within 210
calendar days following the Closing Date

                                       7
<PAGE>

(provided that if the Exchange Offer Registration Statement shall be declared
effective after such 180-day period or if the Exchange Offer shall be
consummated after such 210-day period, then the Company's obligations under this
clause (ii) arising from failure of the Exchange Offer Registration Statement to
be declared effective within such 180-day period or failure of the Exchange
Offer to be consummated within such 210-day period, respectively, shall
terminate),

          (iii)  any of the Initial Purchasers requests within 90 calendar days
after the consummation of the Exchange Offer with respect to Notes or Private
Exchange Notes which are not eligible to be exchanged for Exchange Notes in the
Exchange Offer and are held by it following the consummation of the Exchange
Offer, or

          (iv)   because of any changes in law, SEC rules or regulations or
applicable interpretations thereof by the staff of the SEC occurring after the
Closing Date, a Holder is not permitted to participate in the Exchange Offer or
does not receive fully transferable Exchange Securities pursuant to the Exchange
Offer,

then in case of each of clauses (i) through (iv) the Company shall, at its cost:

               (a)  No later than the later of (i) 90 calendar days after the
          date of the original issue of the Registrable Securities and (ii) 60
          calendar days after so required or requested pursuant to this Section
          2.2, file with the SEC, and thereafter shall use its reasonable
          efforts to cause to be declared effective no later than 60 calendar
          days after such filing is made, a Shelf Registration Statement
          relating to the offer and sale of the Registrable Securities by the
          Holders from time to time in accordance with the methods of
          distribution elected by the Majority Holders participating in the
          Shelf Registration and set forth in such Shelf Registration Statement.

               (b)  Subject to the provisions of the fourth paragraph of Section
          2.5, use its reasonable efforts to keep the Shelf Registration
          Statement continuously effective in order to permit the Prospectus
          forming part thereof to be usable by Holders for a period of two years
          from the Closing Date, or for such shorter period that will terminate
          when all Registrable Securities covered by the Shelf Registration
          Statement have been sold pursuant to the Shelf Registration Statement
          or cease to be outstanding or otherwise to be Registrable Securities
          (the "Effectiveness Period"); provided, however, that the
          Effectiveness Period in respect of the Shelf Registration Statement
          shall be extended to the extent required to permit dealers to comply
          with the applicable prospectus delivery requirements of Rule 174 under
          the 1933 Act and as otherwise provided herein.

               (c)  Notwithstanding any other provisions hereof, use its
          reasonable efforts to ensure that (i) any Shelf Registration Statement
          and any amendment thereto, at the time each such registration
          statement or amendment thereto becomes effective, and any Prospectus
          as of the date thereof forming part thereof

                                       8
<PAGE>

          and any supplement thereto complies in all material respects with the
          1933 Act and the rules and regulations thereunder, (ii) any Shelf
          Registration Statement and any amendment thereto does not, when it
          becomes effective, contain an untrue statement of a material fact or
          omit to state a material fact required to be stated therein or
          necessary to make the statements therein not misleading and (iii) any
          Prospectus forming part of any Shelf Registration Statement, and any
          supplement to such Prospectus (as amended or supplemented from time to
          time)(each, as of the date thereof), does not include an untrue
          statement of a material fact or omit to state a material fact
          necessary in order to make the statements, in light of the
          circumstances under which they were made, not misleading; provided
          that clauses (ii) and (iii) of this paragraph shall not apply to any
          information provided by the Initial Purchasers or any Holder.

          The Company further agrees, if necessary, to supplement or amend the
Shelf Registration Statement, as required by Section 3(b) below, and to furnish
to the Holders of Registrable Securities copies of any such supplement or
amendment promptly after its being used or filed with the SEC.

          No Holder may use the Shelf Registration Statement unless it (i)
provides the Company with the information required by Section 3(v) of this
Agreement on a timely basis and (ii) agrees in writing to be bound by this
Agreement, including the indemnification provisions.

          2.3  Expenses.  The Company shall pay all Registration Expenses in
               --------
connection with the registration pursuant to Section 2.1 or 2.2.  Each Holder
shall pay all underwriting discounts and commissions and transfer taxes, if any,
relating to the sale or disposition of such Holder's Registrable Securities
pursuant to the Shelf Registration Statement.

          2.4. Effectiveness.  An Exchange Offer Registration Statement
               -------------
pursuant to Section 2.1 hereof or a Shelf Registration Statement pursuant to
Section 2.2 hereof will not be deemed to have become effective unless it has
been declared effective by the SEC; provided, however, that if, after it has
been declared effective, the offering of Registrable Securities pursuant to an
Exchange Offer Registration Statement or a Shelf Registration Statement is
interfered with by any stop order, injunction or other order or requirement of
the SEC or any other governmental agency or court, such Registration Statement
will be deemed not to have become effective during the period of such
interference, until the offering of Registrable Securities pursuant to such
Registration Statement may legally resume.

          2.5  Interest.  The Company agrees that in the event that either
               --------
(a) the Exchange Offer Registration Statement is not filed with the Commission
on or prior to the 90th calendar day following the date of original issue of the
Securities, (b) the Exchange Offer Registration Statement has not been declared
effective on or prior to the 180th calendar day following the date of original
issue of the Securities, (c) the Exchange Offer is not consummated on or prior
to the 210th calendar day following the Closing Date or (d) a Shelf Registration
Statement is not filed on or prior to the deadline for such filing pursuant to
Section 2.2(a) or is

                                       9
<PAGE>

not declared effective on or prior to the 60th calendar day following the date
of filing of the Shelf Registration Statement (each such event referred to in
clauses (a) through (d) above, a "Registration Default"), the interest rate
borne by the Securities shall be increased ("Additional Interest") immediately
upon occurrence of a Registration Default by one-quarter of one percent (0.25%)
per annum with respect to the first 90-day period while one or more Registration
Defaults is continuing, which rate will increase by one-quarter of one percent
(0.25%) at the beginning of each subsequent 90-day period while one or more
Registration Default is continuing, until all Registration Defaults have been
cured, provided that the maximum aggregate increase in the interest rate will in
no event exceed one-half of one percent (0.50%) per annum, and provided further
that Additional Interest shall accrue only for those days that a Registration
Default occurs and is continuing. Such Additional Interest shall be calculated
based on a year consisting of 360 days comprised of twelve 30-day months.
Following the cure of all Registration Defaults the accrual of Additional
Interest will cease and the interest rate will revert to the original rate.
Additional Interest shall not be payable with respect to the Registration
Defaults described in clauses (a), (b) and (c) above for any period during which
a Shelf Registration Statement is effective and usable by the Holders.

          If the Shelf Registration Statement is unusable by the Holders for any
reason, then the interest rate borne by the Securities will be increased by one-
quarter of one percent (0.25%) per annum of the principal amount of the
Securities for the first 90-day period (or portion thereof) that such Shelf
Registration Statement ceases to be usable, which rate shall be increased by an
additional one-quarter of one percent (0.25%) per annum of the principal amount
of the Securities at the beginning of each subsequent 90-day period, provided
that the maximum aggregate increase in the interest rate will in no event exceed
one-half of one percent (0.50%) per annum. Any amounts payable under this
paragraph shall also be deemed "Additional Interest" for purposes of this
Agreement. Upon the Shelf Registration Statement once again becoming usable, the
interest rate borne by the Securities will be reduced to the original interest
rate if the Company is otherwise in compliance with this Agreement at such time.
Additional Interest shall be computed based on the actual number of days elapsed
in each 90-day period in which the Shelf Registration Statement is unusable.

          The Company shall notify the Trustee within three business days after
each and every date on which an event occurs in respect of which Additional
Interest is required to be paid (an "Event Date"). Additional Interest shall be
paid by depositing with the Trustee, in trust, for the benefit of the Holders of
Registrable Securities, on or before the applicable semiannual interest payment
date, immediately available funds in sums sufficient to pay the Additional
Interest then due. The Additional Interest due shall be payable on each interest
payment date to the record Holder of Securities entitled to receive the interest
payment to be paid on such date as set forth in the Indenture. Each obligation
to pay Additional Interest shall be deemed to accrue from and including the day
following the applicable Event Date.

          Notwithstanding anything else contained herein, no Additional Interest
shall be payable in relation to the applicable Shelf Registration Statement or
the related prospectus if (i) such Additional Interest is payable solely as a
result of (x) the filing of a post-effective

                                       10
<PAGE>

amendment to such Shelf Registration Statement to incorporate annual audited or,
if required by the rules and regulations under the 1933 Act, quarterly unaudited
financial information with respect to the Company where such post-effective
amendment is not yet effective and needs to be declared effective to permit
Holders to use the related prospectus or (y) for a period not to exceed an
aggregate of 45 days in any calendar year, other material events or developments
with respect to the Company that would need to be described in such Shelf
Registration Statement or the related prospectus and (ii) in the case of clause
(y), the Company is proceeding promptly and in good faith to amend or supplement
such Shelf Registration Statement and related prospectus to describe such
events; provided, however, that in no event shall the Company be required to
disclose the business purpose for such suspension if the Company determines in
good faith that such business purpose must remain confidential. Notwithstanding
the foregoing, the Company shall not be required to pay Additional Interest with
respect to the Securities to Holder if the failure arises from the Company'
failure to file, or cause to become effective, a Shelf Registration Statement
within the time periods specified in this Section 2 by reason of the failure of
such Holder to provide such information as (i) the Company may reasonably
request, with reasonable prior written notice, for use in the Shelf Registration
Statement or any prospectus included therein to the extent the Company
reasonably determine that such information is required to be included therein by
applicable law, (ii) the NASD or the Commission may request in connection with
such Shelf Registration Statement or (iii) is required to comply with the
agreements of such Holder as contained herein to the extent compliance thereof
is necessary for the Shelf Registration Statement to be declared effective.

          3.   Registration Procedures.
               -----------------------

          In connection with the obligations of the Company with respect to
Registration Statements pursuant to Sections 2.1 and 2.2 hereof, the Company
shall:

          (a)  prepare and file with the SEC a Registration Statement, within
the relevant time period specified in Section 2, on the appropriate form under
the 1933 Act, which form (i) shall be selected by the Company, (ii) shall, in
the case of a Shelf Registration, be available for the sale of the Registrable
Securities by the selling Holders thereof, (iii) shall, at the time of
effectiveness, comply as to form in all material respects with the requirements
of the applicable form and include or incorporate by reference all financial
statements required by the SEC to be filed therewith or incorporated by
reference therein, and (iv) shall comply in all material respects with the
requirements of Regulation S-T under the 1933 Act, and use its best efforts to
cause such Registration Statement to become effective and remain effective in
accordance with Section 2 hereof;

          (b)  subject to the limitations contained in the fourth paragraph of
Section 2.5, prepare and file with the SEC such amendments and post-effective
amendments to each Registration Statement as may be necessary under applicable
law to keep such Registration Statement effective for the applicable period; and
cause each Prospectus to be supplemented by any required prospectus supplement,
and as so supplemented to be filed pursuant to Rule 424 (or any similar
provision then in force) under the 1933 Act and comply with the provisions of

                                       11
<PAGE>

the 1933 Act, the 1934 Act and the rules and regulations thereunder applicable
to them with respect to the disposition of all securities covered by each
Registration Statement during the applicable period in accordance with the
intended method or methods of distribution by the selling Holders thereof
(including sales by any Participating Broker-Dealer) (provided, however, that
nothing contained herein shall imply that the Company is liable for any action
or inaction of any Holder (including any Participating Broker-Dealer));

          (c)  in the case of a Shelf Registration, (i) notify each Holder of
Registrable Securities, at least five business days prior to filing, that a
Shelf Registration Statement with respect to the Registrable Securities is being
filed and advising such Holders that the distribution of Registrable Securities
will be made in accordance with the method selected by the Majority Holders
participating in the Shelf Registration; (ii) furnish to each Holder of
Registrable Securities and to each underwriter of an underwritten offering of
Registrable Securities, if any, without charge, as many copies of each
Prospectus, including each preliminary Prospectus, and any amendment or
supplement thereto and such other documents as such Holder or underwriter may
reasonably request, including financial statements and schedules and, if the
Holder so requests, all exhibits in order to facilitate the public sale or other
disposition of the Registrable Securities; and (iii) hereby consent to the use
of the Prospectus or any amendment or supplement thereto by each of the selling
Holders of Registrable Securities in connection with the offering and sale of
the Registrable Securities covered by the Prospectus or any amendment or
supplement thereto;

          (d)  use its reasonable efforts to register or qualify the Registrable
Securities under all applicable state securities or "blue sky" laws of such
jurisdictions as any Holder of Registrable Securities covered by a Registration
Statement and each underwriter of an underwritten offering of Registrable
Securities shall reasonably request by the time the applicable Registration
Statement is declared effective by the SEC, and do any and all other acts and
things which may be reasonably necessary or advisable to enable each such Holder
and underwriter to consummate the disposition in each such jurisdiction of such
Registrable Securities owned by such Holder; provided, however, that the Company
shall not be required to (i) qualify as a foreign corporation or as a dealer in
securities in any jurisdiction where it would not otherwise be required to
qualify but for this Section 3(d), or (ii) take any action which would subject
it to general service of process or taxation in any such jurisdiction where it
is not then so subject;

          (e)  notify promptly Special Counsel and, with respect to clauses (i),
(iii), (iv) and (v) of this paragraph only, each Holder of Registrable
Securities under a Shelf Registration or any Participating Broker-Dealer who has
notified the Company that it is utilizing the Exchange Offer Registration
Statement as provided in paragraph (f) below and, if requested by such Holder or
Participating Broker-Dealer, confirm such advice in writing promptly (i) when a
Registration Statement has become effective and when any post-effective
amendments and supplements thereto become effective, (ii) of any request by the
SEC or any state securities authority for post-effective amendments and
supplements to a Registration Statement and Prospectus or for additional
information after the Registration Statement has become effective,

                                       12
<PAGE>

(iii) of the issuance by the SEC or any state securities authority of any stop
order suspending the effectiveness of a Registration Statement or the initiation
of any proceedings for that purpose, (iv) of the happening of any event or the
discovery of any facts during the period a Shelf Registration Statement is
effective which makes any statement made in such Registration Statement or the
related Prospectus untrue in any material respect or which requires the making
of any changes in such Registration Statement or Prospectus in order to make the
statements therein not misleading, (v) of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Registrable Securities or the Exchange Securities, as the case may be, for sale
in any jurisdiction or the initiation or threatening of any proceeding for such
purpose and (vi) of any determination by the Company that a post-effective
amendment to such Registration Statement would be appropriate;

          (f)  in the case of the Exchange Offer Registration Statement (i)
include in the Exchange Offer Registration Statement a section entitled "Plan of
Distribution" which section shall be reasonably acceptable to Merrill Lynch on
behalf of the Participating Broker-Dealers, and which shall contain a summary
statement of the positions taken or policies made by the staff of the SEC with
respect to the potential "underwriter" status of any broker-dealer that holds
Registrable Securities acquired for its own account as a result of market-making
activities or other trading activities and that will be the beneficial owner (as
defined in Rule 13d-3 under the Exchange Act) of Exchange Securities to be
received by such broker-dealer in the Exchange Offer, whether such positions or
policies have been publicly disseminated by the staff of the SEC or such
positions or policies, in the reasonable judgment of Merrill Lynch on behalf of
the Participating Broker-Dealers and its counsel, represent the prevailing views
of the staff of the SEC, including a statement that any such broker-dealer who
receives Exchange Securities for Registrable Securities pursuant to the Exchange
Offer may be deemed a statutory underwriter and must deliver a prospectus
meeting the requirements of the 1933 Act in connection with any resale of such
Exchange Securities, (ii) furnish to each Participating Broker-Dealer who has
delivered to the Company the notice referred to in Section 3(e), without charge,
as many copies of each Prospectus included in the Exchange Offer Registration
Statement, including any preliminary prospectus, and any amendment or supplement
thereto, as such Participating Broker-Dealer may reasonably request, (iii)
hereby consent to the use of the Prospectus forming part of the Exchange Offer
Registration Statement or any amendment or supplement thereto, by any Person
subject to the prospectus delivery requirements of the SEC, including all
Participating Broker-Dealers, in connection with the sale or transfer of the
Exchange Securities covered by the Prospectus or any amendment or supplement
thereto, and (iv) include in the transmittal letter or similar documentation to
be executed by an exchange offeree in order to participate in the Exchange Offer
(x) the following provision:

         "If the exchange offeree is a broker-dealer holding Registrable
         Securities acquired for its own account as a result of market-making
         activities or other trading activities, it will deliver a prospectus
         meeting the requirements of the 1933 Act in connection with any resale
         of Exchange Securities received in respect of such Registrable
         Securities pursuant to the Exchange Offer;" and

                                       13
<PAGE>

(y) a statement to the effect that by a broker-dealer making the acknowledgment
described in clause (x) and by delivering a Prospectus in connection with the
exchange of Registrable Securities, the broker-dealer will not be deemed to
admit that it is an underwriter within the meaning of the 1933 Act; and

         (g)   (i) in the case of an Exchange Offer, furnish counsel for the
Initial Purchasers and (ii) in the case of a Shelf Registration, furnish Special
Counsel copies of any comment letters received from the SEC or any other request
by the SEC or any state securities authority for amendments or supplements to a
Registration Statement and Prospectus or for additional information;

         (h)   make every reasonable effort to obtain the withdrawal of any
order suspending the effectiveness of a Registration Statement at the earliest
possible moment ;

         (i)   in the case of a Shelf Registration, furnish to each Holder of
Registrable Securities upon request, and each underwriter, if any, without
charge, at least one conformed copy of each Registration Statement and any post-
effective amendment thereto, including financial statements and schedules
(without documents incorporated therein by reference and all exhibits thereto,
unless requested);

         (j)   in the case of a Shelf Registration, cooperate with the selling
Holders of Registrable Securities to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be sold and not
bearing any restrictive legends; and enable such Registrable Securities to be in
such denominations (consistent with the provisions of the Indenture) and
registered in such names as the selling Holders or the underwriters, if any, may
reasonably request at least three business days prior to the closing of any sale
of Registrable Securities;

         (k)   in the case of a Shelf Registration, upon the occurrence of any
event or the discovery of any facts, each as contemplated by Sections 3(e)(iv)
and 3(e)(v) hereof, as promptly as practicable after the occurrence of such an
event, use its best efforts to prepare a supplement or post-effective amendment
to the Registration Statement or the related Prospectus or any document
incorporated therein by reference or file any other required document so that,
as thereafter delivered to the purchasers of the Registrable Securities or
Participating Broker-Dealers, such Prospectus will not contain at the time of
such delivery any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading or will remain so
qualified. At such time as such public disclosure is otherwise made or the
Company determines that such disclosure is not necessary, in each case to
correct any misstatement of a material fact or to include any omitted material
fact, the Company agrees promptly to notify each Holder of such determination
and to furnish each Holder such number of copies of the Prospectus as amended or
supplemented, as such Holder may reasonably request;

                                       14
<PAGE>

         (l)   [reserved];

         (m)   obtain a CUSIP number for all Exchange Securities, Private
Exchange Securities or Registrable Securities, as the case may be, not later
than the effective date of a Registration Statement, and provide the Trustee
with printed certificates for the Exchange Securities, Private Exchange
Securities or the Registrable Securities, as the case may be, in a form eligible
for deposit with the Depositary;

         (n)   (i) cause the Indenture to be qualified under the TIA in
connection with the registration of the Exchange Securities or Registrable
Securities, as the case may be, (ii) cooperate with the Trustee and the Holders
to effect such changes to the Indenture as may be required for the Indenture to
be so qualified in accordance with the terms of the TIA and (iii) execute, and
use its best efforts to cause the Trustee to execute, all documents as may be
required to effect such changes, and all other forms and documents required to
be filed with the SEC to enable the Indenture to be so qualified in a timely
manner;

         (o)   in the case of a Shelf Registration, enter into agreements
(including, if requested, an underwriting agreement in customary form containing
customary representations, warranties, terms and conditions, provided that the
Company shall not be required to enter into such agreement more than once with
respect to all the Registrable Securities and may delay entering into such
agreement until the consummation of any underwritten public offering which the
Company may have then undertaken) and take all other customary and appropriate
actions in order to expedite or facilitate the disposition of such Registrable
Securities and in such connection whether or not an underwriting agreement is
entered into and whether or not the registration is an underwritten
registration.

         (p)   in the case of a Shelf Registration or if a Prospectus is
required to be delivered by any Participating Broker-Dealer in the case of an
Exchange Offer, make available for inspection by a representative of the Holders
of the Registrable Securities, any underwriters participating in any disposition
pursuant to a Shelf Registration Statement, any Participating Broker-Dealer and
Special Counsel, all relevant financial and other records, pertinent corporate
documents and properties of the Company reasonably requested by any such
persons, and use reasonable efforts to have the respective officers, directors,
employees, and any other agents of the Company supply all relevant information
reasonably requested by any such representative, underwriter, Special Counsel or
accountant in connection with a Registration Statement, in each case, as is
customary for similar due diligence investigations;

         (q)   a reasonable time prior to the filing of any Exchange Offer
Registration Statement or Shelf Registration Statement, any Prospectus forming a
part thereof, any amendment to an Exchange Offer Registration Statement or Shelf
Registration Statement or amendment or supplement to such Prospectus, provide
copies of such document to the Initial Purchasers, Special Counsel and to the
underwriter or underwriters of an underwritten offering of Registrable
Securities, if any, and make such changes in any Shelf Registration Statement,
any Prospectus forming a part thereof or amendment or supplement thereto prior
to the filing

                                       15
<PAGE>

thereof as Special Counsel may reasonably request within three business days of
being sent a draft thereof and make the representatives of the Company available
for discussion of such documents as shall be reasonably requested by the Initial
Purchasers;

         (r)   [reserved];

         (s)   in the case of a Shelf Registration, use its best efforts to
cause the Registrable Securities to be rated by the appropriate rating agencies,
if so requested by the Majority Holders, or if requested by the underwriter or
underwriters of an underwritten offering of Registrable Securities, if any;

         (t)   otherwise comply with all applicable rules and regulations of the
SEC and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering at least 12 months which shall
satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158 thereunder;

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

         (v)   upon consummation of an Exchange Offer or a Private Exchange,
obtain a customary opinion of counsel to the Company addressed to the Trustee
for the benefit of all Holders of Registrable Securities participating in the
Exchange Offer or Private Exchange, and which includes an opinion that (i) the
Company has duly authorized, executed and delivered the Exchange Securities
and/or Private Exchange Securities, as applicable, and the related indenture,
and (ii) each of the Exchange Securities and related indenture constitute a
legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its respective terms (with customary exceptions).

         In the case of a Shelf Registration Statement, the Company may (as a
condition to the participation of such Holder and the beneficial owner of
Registrable Securities in the Shelf Registration) require each Holder of
Registrable Securities to furnish to the Company prior to the 30th day following
the Company's filing of such request for information with the Trustee for
delivery to the Holders such information regarding the Holder and the proposed
distribution by such Holder or beneficial owner of such Registrable Securities
as the Company may from time to time reasonably request in writing.

         In the case of a Shelf Registration Statement, each Holder agrees that,
upon receipt of any notice from the Company of the happening of any event or the
discovery of any facts, each of the kind described in Section 3(e)(v) hereof,
such Holder will forthwith discontinue disposition of Registrable Securities
pursuant to a Registration Statement until such Holder's receipt of the copies
of the supplemented or amended Prospectus contemplated by Section 3(k) hereof,
and, if so directed by the Company, such Holder will deliver to the Company (at
its expense) all copies in such Holder's possession, other than permanent file

                                       16
<PAGE>

copies then in such Holder's possession, of the Prospectus covering such
Registrable Securities current at the time of receipt of such notice.

         If any of the Registrable Securities covered by any Shelf Registration
Statement are to be sold in an underwritten offering, the underwriter or
underwriters and manager or managers that will manage such offering will be
selected by the Majority Holders of such Registrable Securities included in such
offering and shall be acceptable to the Company. No Holder of Registrable
Securities may participate in any underwritten registration hereunder unless
such Holder (a) agrees to sell such Holder's Registrable Securities on the basis
provided in any underwriting arrangements approved by the persons entitled
hereunder to approve such arrangements and (b) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents required under the terms of such underwriting arrangements.

         4.    Indemnification; Contribution.
               -----------------------------

         (a) The Company agrees to indemnify and hold harmless the Initial
Purchasers, each Holder, each Participating Broker-Dealer, each Person who
participates as an underwriter (any such Person being an "Underwriter") and each
Person, if any, who controls any Holder or Underwriter within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows:

               (i)   against any and all loss, liability, claim, damage and
    expense whatsoever, as incurred, arising out of any untrue statement or
    alleged untrue statement of a material fact contained in any Registration
    Statement (or any amendment or supplement thereto) pursuant to which
    Exchange Securities or Registrable Securities were registered under the 1933
    Act, including all documents incorporated therein by reference, or the
    omission or alleged omission therefrom of a material fact required to be
    stated therein or necessary to make the statements therein not misleading,
    or arising out of any untrue statement or alleged untrue statement of a
    material fact contained in any Prospectus (or any amendment or supplement
    thereto) or the omission or alleged omission therefrom of a material fact
    necessary in order to make the statements therein, in the light of the
    circumstances under which they were made, not misleading;

               (ii)  against any and all loss, liability, claim, damage and
    expense whatsoever, as incurred, to the extent of the aggregate amount paid
    in settlement of any litigation, or any investigation or proceeding by any
    governmental agency or body, commenced or threatened, or of any claim
    whatsoever based upon any such untrue statement or omission, or any such
    alleged untrue statement or omission; provided that (subject to Section 4(d)
    below) any such settlement is effected with the written consent of the
    Company; and

               (iii) against any and all expense whatsoever, as incurred
    (including the fees and disbursements of counsel chosen by any indemnified
    party), reasonably incurred in investigating, preparing or defending against
    any litigation, or any investigation or

                                       17
<PAGE>

     proceeding by any governmental agency or body, commenced or threatened, or
     any claim whatsoever based upon any such untrue statement or omission, or
     any such alleged untrue statement or omission, to the extent that any such
     expense is not paid under subparagraph (i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss,
--------  -------
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company by the
Holder or Underwriter expressly for use in a Registration Statement (or any
amendment thereto) or any Prospectus (or any amendment or supplement thereto).

         (b)   Each Holder severally, but not jointly, agrees to indemnify and
hold harmless the Company, the Initial Purchasers, each Underwriter and the
other selling Holders, and each of their respective directors and officers, and
each Person, if any, who controls the Company, the Initial Purchasers, any
Underwriter or any other selling Holder within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act, against any and all loss, liability,
claim, damage and expense described in the indemnity contained in Section 4(a)
hereof, as incurred, but only with respect to untrue statements or omissions, or
alleged untrue statements or omissions, made in the Shelf Registration Statement
(or any amendment thereto) or any Prospectus included therein (or any amendment
or supplement thereto) in reliance upon and in conformity with written
information with respect to such Holder furnished to the Company by such Holder
expressly for use in the Shelf Registration Statement (or any amendment thereto)
or such Prospectus (or any amendment or supplement thereto); provided, however,
that no such Holder shall be liable for any claims hereunder in excess of the
amount of net proceeds received by such Holder from the sale of Registrable
Securities pursuant to such Shelf Registration Statement.

         (c)   Each indemnified party shall give notice as promptly as
reasonably practicable to each indemnifying party of any action or proceeding
commenced against it in respect of which indemnity may be sought hereunder, but
failure so to notify an indemnifying party shall not relieve such indemnifying
party from any liability hereunder to the extent it is not materially prejudiced
as a result thereof and in any event shall not relieve it from any liability
which it may have otherwise than on account of this indemnity agreement. An
indemnifying party may participate at its own expense in the defense of such
action; provided, however, that counsel to the indemnifying party shall not
(except with the consent of the indemnified party) also be counsel to the
indemnified party. In no event shall the indemnifying party or parties be liable
for the fees and expenses of more than one counsel (in addition to any local
counsel) separate from their own counsel for all indemnified parties in
connection with any one action or separate but similar or related actions in the
same jurisdiction arising out of the same general allegations or circumstances.
No indemnifying party shall, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any litigation, or any investigation or proceeding by
any governmental agency or body, commenced or threatened, or any claim
whatsoever in respect of which

                                       18
<PAGE>

indemnification or contribution could be sought under this Section 4 (whether or
not the indemnified parties are actual or potential parties thereto), unless
such settlement, compromise or consent (i) includes an unconditional release of
each indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii) does not include a statement as to
or an admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.

         (d)   If at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 4(a)(ii) effected without its
written consent if (i) such settlement is entered into more than 45 days after
receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement at
least 30 days prior to such settlement being entered into and (iii) such
indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement.

         (e)   If the indemnification provided for in this Section 4 is for any
reason unavailable to or insufficient to hold harmless an indemnified party in
respect of any losses, liabilities, claims, damages or expenses referred to
therein, then each indemnifying party shall contribute to the aggregate amount
of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect
the relative benefit received by the indemnified party, on the one hand, and the
indemnifying party, on the other hand, in connection with the Exchange Offer and
the Shelf Registration and the relative fault of the Company on the one hand and
the Holders and the Initial Purchasers on the other hand in connection with the
statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

     The relative fault of the Company on the one hand and the Holders and the
Initial Purchasers on the other hand shall be determined by reference to, among
other things, whether any such untrue or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact relates to
information supplied by the Company, the Holders or the Initial Purchasers and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission.

     The Company, the Holders and the Initial Purchasers 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 Initial Purchasers 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 above in this Section
4. The aggregate amount of losses, liabilities, claims, damages and expenses
incurred by an indemnified party and referred to above in this Section 4 shall
be deemed to include any legal or other expenses reasonably incurred by such
indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such
untrue or alleged untrue statement or omission or alleged omission.

                                       19
<PAGE>

     Notwithstanding the provisions of this Section 4, no Initial Purchasers
shall be required to contribute any amount in excess of the amount by which the
total price at which the Securities sold by it were offered exceeds the amount
of any damages which such Initial Purchasers has otherwise been required to pay
by reason of such untrue or alleged untrue statement or omission or alleged
omission.

     No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

     For purposes of this Section 4, each Person, if any, who controls an
Initial Purchasers or Holder within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act shall have the same rights to contribution as such
Initial Purchasers or Holder, and each director of the Company, and each Person,
if any, who controls the Company within the meaning of Section 15 of the 1933
Act or Section 20 of the 1934 Act shall have the same rights to contribution as
the Company. The Initial Purchasers' respective obligations to contribute
pursuant to this Section 7 are several in proportion to the principal amount of
Securities set forth opposite their respective names in Schedule A to the
Purchase Agreement and not joint.

         5.    Miscellaneous.
               -------------

         5.1   [reserved]
               ------------

         5.2   No Inconsistent Agreements.  The Company has not entered into and
               --------------------------
the Company will not after the date of this Agreement enter into any agreement
which is inconsistent with the rights granted to the Holders of Registrable
Securities in this Agreement or otherwise conflicts with the provisions hereof.
The rights granted to the Holders hereunder do not and will not for the term of
this Agreement in any way conflict with the rights granted to the holders of the
Company's other issued and outstanding securities under any such agreements.

         5.3   Amendments and Waivers.  The provisions of this Agreement,
               ----------------------
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given unless the Company has obtained the written consent of Holders
of at least a majority in aggregate principal amount of the outstanding
Registrable Securities affected by such amendment, modification, supplement,
waiver or departure.

         5.4   Notices.  All notices and other communications provided for or
               -------
permitted hereunder shall be made in writing by hand delivery, registered first-
class mail, telex, telecopier, or any courier guaranteeing overnight delivery
(a) if to a Holder, at the most current address given by such Holder to the
Company by means of a notice given in accordance with the provisions of this
Section 5.4, which address initially is the address set forth in the Purchase
Agreement with respect to the Initial Purchasers; and (b) if to the Company,
initially at the

                                       20
<PAGE>

Company's address set forth in the Purchase Agreement, and thereafter at such
other address of which notice is given in accordance with the provisions of this
Section 5.4.

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; two business days
after being deposited in the mail, postage prepaid, if mailed; when answered
back, if telexed; when receipt is acknowledged, if telecopied; and on the next
business day if timely delivered to an air courier guaranteeing overnight
delivery.

         Copies of all such notices, demands, or other communications shall be
concurrently delivered by the person giving the same to the Trustee under the
Indenture, at the address specified in such Indenture.

         5.5   Successor and Assigns.  This Agreement shall inure to the benefit
               ---------------------
of and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be deemed to
                                --------
permit any assignment, transfer or other disposition of Registrable Securities
in violation of the terms of the Purchase Agreement or the Indenture. If any
transferee of any Holder shall acquire Registrable Securities, in any manner,
whether by operation of law or otherwise, such Registrable Securities shall be
held subject to all of the terms of this Agreement, and by taking and holding
such Registrable Securities such person shall be conclusively deemed to have
agreed to be bound by and to perform all of the terms and provisions of this
Agreement, including the restrictions on resale set forth in this Agreement and,
if applicable, the Purchase Agreement, and such person shall be entitled to
receive the benefits hereof.

         5.6   Third Party Beneficiaries.  The Initial Purchasers (even if the
               -------------------------
Initial Purchasers are not Holders of Registrable Securities) shall be third
party beneficiaries to the agreements made hereunder between the Company, on the
one hand, and the Holders, on the other hand, and shall have the right to
enforce such agreements directly to the extent they deem such enforcement
necessary or advisable to protect their rights or the rights of Holders
hereunder. Each Holder of Registrable Securities shall be a third party
beneficiary to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right to
enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights hereunder.

         5.7.  Specific Enforcement.  Without limiting the remedies available to
               --------------------
the Initial Purchasers and the Holders, the Company acknowledges that any
failure by the Company to comply with its obligations under Sections 2.1 through
2.4 hereof may result in material irreparable injury to the Initial Purchasers
or the Holders for which there is no adequate remedy at law, that it would not
be possible to measure damages for such injuries precisely and that, in the
event of any such failure, the Initial Purchasers or any Holder may obtain such
relief as may be required to specifically enforce the Company's obligations
under Sections 2.1 through 2.4 hereof.

                                       21
<PAGE>

         5.8.  [reserved]
               ----------

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

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

         5.11  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
               -------------
IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICT OF LAWS THEREOF.

         5.12  Severability. In the event that any one or more of the provisions
               ------------
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

                                       22
<PAGE>

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

                                  MARRIOTT INTERNATIONAL, INC.

                                  By: /s/ Carolyn B. Handlon
                                      ---------------------------------
                                      Name:   Carolyn B. Handlon
                                      Title:  Senior Vice President and
                                                     Treasurer

Confirmed and accepted as
 of the date first above
 written:

MERRILL LYNCH, PIERCE, FENNER & SMITH
              INCORPORATED
BANC OF AMERICA SECURITIES LLC
BANC ONE CAPITAL MARKETS, INC.
DEUTSCHE BANK SECURITIES INC.
LEHMAN BROTHERS INC.
SALOMON SMITH BARNEY INC.
SCOTIA CAPITAL (USA) INC.

BY:  MERRILL LYNCH, PIERCE, FENNER & SMITH
                 INCORPORATED

By:  /s/ Michael Santini
     ----------------------
     Name:  Michael Santini
     Title: Vice President

                                       23

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