Document:

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                                                                  EXECUTION COPY

                                                                     EXHIBIT 4.3

                             Pogo Producing Company

                          Registration Rights Agreement

     Registration Rights Agreement dated as of April 10, 2001, among Pogo
Producing Company, a Delaware corporation (the "Company"), Merrill Lynch & Co.
and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as the initial purchaser
(the "Initial Purchaser"), under the Purchase Agreement (as defined herein), of
the 8 1/4% Senior Subordinated Notes due 2011, of the Company.

     The Company proposes to issue and sell the Securities (as defined herein)
to the Initial Purchasers upon the terms set forth in the Purchase Agreement. As
an inducement to the Initial Purchasers to enter into the Purchase Agreement and
in satisfaction of a condition to the obligations of the Initial Purchasers
thereunder, the Company agrees with the Initial Purchasers for the benefit of
holders (as defined herein) from time to time of the Registrable Securities (as
defined herein) as follows:

1.   Certain Definitions.

     For purposes of this Registration Rights Agreement, the following terms
shall have the following respective meanings:

          "Base Interest" means the interest that would otherwise accrue on the
     Securities under the terms thereof and the Indenture, without giving effect
     to the provisions of this Agreement.

          The term "broker-dealer" means any broker or dealer registered with
     the Commission under the Exchange Act.

          "Closing Time" means the date on which the Securities are initially
     issued.

          "Commission" means the United States Securities and Exchange
     Commission, or any other federal agency at the time administering the
     Exchange Act or the Securities Act, whichever is the relevant statute for
     the particular purpose.

          "Effective Time," in the case of (i) an Exchange Registration, means
     the time and date as of which the Commission declares the Exchange
     Registration Statement effective or as of which the Exchange Registration
     Statement otherwise becomes effective and (ii) a Shelf Registration, means
     the time and date as of which the Commission declares the Shelf
     Registration Statement effective or as of which the Shelf Registration
     Statement otherwise becomes effective.

          "Electing Holder" means any holder of Registrable Securities that has
     returned a completed and signed Notice and Questionnaire to the Company in
     accordance with Section 3(d)(ii) or 3(d)(iii) hereof.

          "Exchange Act" means the Securities Exchange Act of 1934, or any
     successor thereto, as the same shall be amended from time to time.

          "Exchange Offer" has the meaning assigned thereto in Section 2(a)
     hereof.

          "Exchange Registration" has the meaning assigned thereto in Section
     3(c) hereof.

          "Exchange Registration Statement" has the meaning assigned thereto in
     Section 2(a) hereof.

          "Exchange Securities" has the meaning assigned thereto in Section 2(a)
     hereof.

          The term "holder" means each of the Initial Purchasers and other
     persons who acquire Registrable Securities from time to time (including any
     successors or assigns), in each case for so long as such person owns any
     Registrable Securities.
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          "Indenture" means the Indenture, dated as of April 10, 2001, among the
     Company and Wells Fargo Bank Minnesota, National Association, as Trustee,
     as the same shall be amended from time to time.

          "Purchase Agreement" means the Purchase Agreement, dated as of April
     4, 2001, between the Initial Purchasers and the Company relating to the
     Securities.

          "Notice and Questionnaire" means a Notice of Registration Statement
     and Selling Securityholder Questionnaire substantially in the form of
     Exhibit A hereto.

          The term "person" means a corporation, association, partnership,
     limited liability company, organization, business, individual, government
     or political subdivision thereof or governmental agency.

          "Registrable Securities" means the Securities; provided, however, that
     a Security ceases to be a Registrable Security when (i) in the
     circumstances contemplated by Section 2(a) hereof, the Security has been
     exchanged for an Exchange Security in an Exchange Offer as contemplated in
     Section 2(a) hereof (provided that any Exchange Security received by a
     broker-dealer in an Exchange Offer in exchange for a Registrable Security
     that was not acquired by the broker-dealer directly from the Company will
     also be a Registrable Security through and including the earlier of the
     90th day after the Exchange Offer is completed or such time as such broker-
     dealer no longer owns such Security); (ii) in the circumstances
     contemplated by Section 2(b) hereof, a Shelf Registration Statement
     registering such Security under the Securities Act has been declared or
     becomes effective and such Security has been sold or otherwise transferred
     by the holder thereof pursuant to and in a manner contemplated by such
     effective Shelf Registration Statement; (iii) such Security is sold
     pursuant to Rule 144 (or any similar provisions then in force, but not Rule
     144A) under circumstances in which any legend borne by such Security
     relating to restrictions on transferability thereof, under the Securities
     Act or otherwise, is removed by the Company or pursuant to the Indenture;
     (iv) such Security is eligible to be sold pursuant to paragraph (k) of Rule
     144; or (v) such Security shall cease to be outstanding.

          "Registration Default" has the meaning assigned thereto in Section
     2(d) hereof.

          "Registration Expenses" has the meaning assigned thereto in Section 4
     hereof.

          "Resale Period" has the meaning assigned thereto in Section 2(a)
     hereof.

          "Restricted Holder" means (i) a holder that is an affiliate of the
     Company within the meaning of Rule 405, (ii) a holder who acquires Exchange
     Securities outside the ordinary course of such holder's business, (iii) a
     holder who has arrangements or understandings with any person to
     participate in the Exchange Offer for the purpose of distributing Exchange
     Securities and (iv) a holder that is a broker-dealer, but only with respect
     to Exchange Securities received by such broker-dealer pursuant to an
     Exchange Offer in exchange for Registrable Securities acquired by the
     broker-dealer directly from the Company.

          "Rule 144," "Rule 144A," "Rule 405" and "Rule 415" mean, in each case,
     such rule promulgated under the Securities Act (or any successor
     provision), as the same shall be amended from time to time.

          "Securities" means, collectively, the 8 1/4% Senior Subordinated Notes
     due 2011 of the Company to be issued and sold to the Initial Purchasers,
     and securities issued in exchange therefor or in lieu thereof pursuant to
     the Indenture. Under certain circumstances specified in the Indenture, each
     Security is entitled to the benefit of certain guarantees by one or more
     subsidiaries of the Company (the "Guarantees") and, unless the context
     otherwise requires, any reference herein to a "Security," an "Exchange
     Security" or a "Registrable Security" shall include a reference to any such
     related Guarantees.

          "Securities Act" means the Securities Act of 1933, or any successor
     thereto, as amended from time to time.

          "Shelf Registration" has the meaning assigned thereto in Section 2(b)
     hereof.

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          "Shelf Registration Statement" has the meaning assigned thereto in
     Section 2(b) hereof.

          "Shelf Registration Suspension" has the meaning assigned thereto in
     Section 2(c) hereof.

          "Special Interest" has the meaning assigned thereto in Section 2(d)
     hereof.

          "Trust Indenture Act" means the Trust Indenture Act of 1939, or any
     successor thereto, and the rules, regulations and forms promulgated
     thereunder, all as amended from time to time.

     Unless the context otherwise requires, any reference herein to a "Section"
or "clause" refers to a Section or clause, as the case may be, of this
Registration Rights Agreement, and the words "herein," "hereof" and "hereunder"
and other words of similar import refer to this Registration Rights Agreement as
a whole and not to any particular Section or other subdivision.

2.   Registration Under the Securities Act.

     (a)  Except as set forth in Section 2(b) below, the Company agrees to use
its reasonable best efforts to file under the Securities Act, no later than 60
days after the Closing Time, a registration statement relating to an offer to
exchange (such registration statement, the "Exchange Registration Statement",
and such offer, the "Exchange Offer") any and all of the then outstanding
Registrable Securities (except Registrable Securities held by an Initial
Purchaser and acquired directly from the Company if such Initial Purchaser is
not permitted, in the reasonable opinion of counsel to the Initial Purchasers,
pursuant to applicable law or Commission interpretation, to participate in the
Exchange Offer) for a like aggregate principal amount of debt securities issued
by the Company (and, if applicable, guarantees issued by subsidiaries of the
Company as may be required pursuant to the Indenture), which are substantially
identical to the Securities (and are entitled to the benefits of a trust
indenture which is substantially identical to the Indenture or is the Indenture
and which has been qualified under the Trust Indenture Act), except that (i)
they have been registered pursuant to an effective registration statement under
the Securities Act, (ii) interest thereon shall accrue from the last date on
which interest was paid or duly provided for on the Securities in exchange for
which such new debt securities are issued in the Exchange Offer, or, if no
interest has been paid, from April 10, 2001, and (iii) they do not contain
provisions for the additional interest contemplated in Section 2(d) below (such
new debt securities, together with any guarantees thereof, as applicable, are
hereinafter called "Exchange Securities"). The Company agrees to use its
reasonable best efforts to cause the Exchange Registration Statement to become
effective under the Securities Act no later than 135 days after the Closing
Time. The Exchange Offer will be registered under the Securities Act on an
appropriate form and will comply with all applicable tender offer rules and
regulations under the Exchange Act. The Company further agrees to use its
reasonable best efforts to commence and complete the Exchange Offer no later
than 180 days after the Closing Time, hold the Exchange Offer open for at least
30 days (or longer if required by law) after notice of the Exchange Offer is
sent to holders of Registrable Securities, and issue Exchange Securities for all
Registrable Securities that have been properly tendered and not withdrawn on or
prior to the expiration of the Exchange Offer. The Exchange Offer will be deemed
to have been "completed" only if the debt securities and related guarantees
received by holders other than Restricted Holders in the Exchange Offer for
Registrable Securities are, upon receipt, transferable by each such holder
without need for further compliance with Section 5 of the Securities Act and the
Exchange Act (except for the requirement to deliver a prospectus included in the
Exchange Registration Statement applicable to resales by broker-dealers of
Exchange Securities received by such broker-dealer pursuant to an Exchange Offer
in exchange for Registrable Securities other than those acquired by the broker-
dealer directly from the Company), and without material restrictions under the
blue sky or securities laws of a substantial majority of the States of the
United States of America. The Exchange Offer shall be deemed to have been
completed upon the Company having exchanged, pursuant to the Exchange Offer,
Exchange Securities for all Registrable Securities that may legally be exchanged
in the Exchange Offer and that have been properly tendered and not withdrawn
before the expiration of the Exchange Offer, which shall be on a date that is at
least 30 days following the commencement of the Exchange Offer. The Company
agrees (x) to include in the Exchange Registration Statement a prospectus for
use in connection with any resales of Exchange Securities by a broker-dealer,
other than resales of Exchange Securities received by a broker-dealer pursuant
to an Exchange Offer in exchange for Registrable Securities acquired by the
broker-dealer directly from the Company, and (y) to keep such Exchange
Registration Statement effective for a period (the "Resale Period") beginning
when Exchange Securities are first issued in the Exchange Offer and ending upon
the earlier of the expiration of the 90th day after the Exchange Offer has been
completed or such time as such broker-dealers no

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longer own any Registrable Securities. With respect to such Exchange
Registration Statement, each broker-dealer that holds Exchange Securities
received in an Exchange Offer in exchange for Registrable Securities not
acquired by it directly from the Company shall have the benefit of the rights of
indemnification and contribution set forth in Section 6 hereof.

     (b)  Subject to Section 2(c), (i) if, prior to the time the Exchange Offer
is completed, existing Commission interpretations are changed such that the
Exchange Offer cannot be completed as contemplated by Section 2(a), (ii) if the
Exchange Registration Statement is not declared effective under the Securities
Act within 135 days after the Closing Time, or (iii) if, for any other reason
the Exchange Offer is not consummated within 180 days of the Closing Time, then
in lieu of conducting the Exchange Offer contemplated by Section 2(a) the
Company shall use its reasonable best efforts to file under the Securities Act
as soon as practicable, but no later than 30 days after the time such obligation
to file arises, a registration statement providing for the registration of, and
the sale on a continuous or delayed basis by the holders of, all of the
Registrable Securities, pursuant to Rule 415 or any similar rule that may be
adopted by the Commission (such filing, the "Shelf Registration" and such
registration statement, the "Shelf Registration Statement"). In addition, in the
event that the Initial Purchasers shall not have resold all of the Registrable
Securities initially purchased by them from the Company pursuant to the Purchase
Agreement prior to the consummation of the Exchange Offer, the Company shall use
its reasonable best efforts to file under the Securities Act as soon as
practicable after a request therefor a Shelf Registration Statement. The Company
agrees to use its reasonable best efforts (i) to cause the Shelf Registration
Statement to become or be declared effective no later than 180 days after the
Closing Time (or promptly in the event of a Shelf Registration effected at the
request of the Initial Purchasers pursuant to the preceding sentence) and,
subject to Section 2(c), to keep such Shelf Registration Statement continuously
effective in order to permit the prospectus forming a part thereof to be usable
by holders for resales of Registrable Securities for a period (the "Effective
Period") ending on the earlier of the second anniversary of the Effective Time
(or one year in the case of a Shelf Registration Statement filed at the request
of an Initial Purchaser) or such time as there are no longer any Registrable
Securities outstanding; provided, however, that no holder shall be entitled to
be named as a selling securityholder in the Shelf Registration Statement or to
use the prospectus forming a part thereof for resales of Registrable Securities
unless such holder is an Electing Holder, and (ii) after the Effective Time of
the Shelf Registration Statement, promptly upon the request of any holder of
Registrable Securities that is not then an Electing Holder, to take any action
reasonably necessary to enable such holder to use the prospectus forming a part
thereof for resales of Registrable Securities, including, without limitation,
any action necessary to identify such holder as a selling securityholder in the
Shelf Registration Statement, provided, however, that nothing in this clause
(ii) shall relieve any such holder of the obligation to return a completed and
signed Notice and Questionnaire to the Company in accordance with Section
3(d)(iii) hereof. The Company further agrees to supplement or make amendments to
the Shelf Registration Statement, as and when required by the rules, regulations
or instructions applicable to the registration form used by the Company for such
Shelf Registration Statement or by the Securities Act or rules and regulations
thereunder for shelf registration, and the Company agrees to furnish to each
Electing Holder copies of any such supplement or amendment prior to its being
used or promptly following its filing with the Commission.

     (c)  Notwithstanding anything in Section 2(b) or 3(d) to the contrary, if
the Company determines in its good faith judgment that the filing of any
supplement or amendment to the Shelf Registration Statement to keep such Shelf
Registration Statement continuously effective under the Securities Act and
usable by Electing Holders for resales of Registrable Securities on a particular
date would require the disclosure of material information that the Company has a
bona fide business purpose for preserving as confidential, or the disclosure of
which would materially adversely affect the Company's ability to consummate a
significant transaction, then upon written notice of such determination by the
Company to the Electing Holders, the obligation of the Company to supplement or
amend the Shelf Registration Statement (including any action with respect
thereto contemplated by Section 3(d) hereof) will be suspended until the Company
notifies the Electing Holders in writing that the reasons for suspension of such
obligations on the part of the Company as set forth in Section 2(b) no longer
exist and the Company amends or supplements the Shelf Registration Statement as
may be required (such suspension, a "Shelf Registration Suspension"); provided
that the aggregate number of days (whether or not consecutive) during which the
Company may delay the filing of any such supplement or amendment shall in no
event exceed 60 days during any period of 12 consecutive months and the right of
the Company to suspend its obligation to supplement or amend the Shelf
Registration Statement under the preceding sentence shall not limit any
obligation of the Company to pay Special Interest pursuant to Section 2(d).

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     (d)  In the event that (i) the Exchange Registration Statement is not filed
with the Commission on or prior to the 60th day following the Closing Time, (ii)
the Exchange Registration Statement is not declared effective on or prior to the
135th day following the Closing Time or (iii) the Exchange Offer (if then
required to be made) is not consummated or a Shelf Registration Statement (if
required pursuant to Section 2(b)) with respect to the Notes is not declared
effective on or prior to the 180th day following the Closing Time, (iv) any
Exchange Registration Statement or Shelf Registration Statement required by
Section 2(a) or 2(b) hereof is filed and declared effective but shall thereafter
either be withdrawn by the Company or shall become subject to an effective stop
order issued pursuant to Section 8(d) of the Securities Act suspending the
effectiveness of such registration statement (except as specifically permitted
herein) without being succeeded immediately by an additional registration
statement filed and declared effective, or (v) the Company effects a Shelf
Registration Suspension for more than 60 days, whether or not consecutive,
within any period of 12 consecutive months (each such event referred to in
clauses (i) through (v), a "Registration Default") then, as liquidated damages
for such Registration Default, subject to the provisions of Section 9(b),
special interest ("Special Interest"), in addition to the Base Interest, shall
accrue on the Securities at a per annum rate of 0.50% from and including the day
following such Registration Default to but excluding the date on which the
Registration default is cured or ceases as described below (such period being
the "Registration Default Period"); provided that if the Exchange Registration
Statement is not declared effective on or prior to the 135th day after the
Closing Time and the Company sends the Notice and Questionnaire to holders of
Registrable Securities in accordance with Section 3(d)(ii), then no holder who
is not an Electing Holder shall be entitled to Special Interest after the 180th
day after the Closing Time. Special Interest shall be paid in the same manner as
interest is paid on the Securities pursuant to the Indenture. Upon (A) the
filing of the Exchange Registration Statement after the 60th day described in
clause (i) above, (B) the effectiveness of the Exchange Registration Statement
after the 135th day described in clause (ii) above, (C) the consummation of the
Exchange Offer or the effectiveness of the Shelf Registration Statement, as the
case may be, after the 180th day described in clause (iii) above, (D) removal of
the suspension or stop order referred to in clause (iv) above or the filing and
effectiveness of a new registration statement in respect thereof, (E) cessation
of the Shelf Registration Suspension referred to in clause (v) above or (F)
expiration of the Effective Period, Special Interest shall cease to accrue
unless a new Registration Default shall occur.

     (e)  The Company shall take all reasonable actions necessary or advisable
to be taken by it to ensure that the transactions contemplated herein are
effected as so contemplated.

     (f)  Any reference herein to a registration statement as of any time shall
be deemed to include any document incorporated, or deemed to be incorporated,
therein by reference as of such time and any reference herein to any post-
effective amendment to a registration statement as of any time shall be deemed
to include any document incorporated, or deemed to be incorporated, therein by
reference as of such time.

3.   Registration Procedures.

     If the Company files a registration statement pursuant to Section 2(a) or
Section 2(b), the following provisions shall apply:

     (a)  At or before the Effective Time of the Exchange Offer or the Shelf
Registration, as the case may be, the Company shall qualify the Indenture under
the Trust Indenture Act of 1939.

     (b)  In the event that such qualification would require the appointment of
a new trustee under the Indenture, the Company shall appoint a new trustee
thereunder pursuant to the applicable provisions of the Indenture.

     (c)  In connection with the Company's obligations with respect to the
registration of Exchange Securities as contemplated by Section 2(a) (the
"Exchange Registration"), if applicable, the Company shall, as soon as
practicable (or as otherwise specified):

          (i)  use its reasonable best efforts to prepare and file with the
     Commission, no later than 60 days after the Closing Time, an Exchange
     Registration Statement on any form which may be utilized by the Company and
     which shall permit the Exchange Offer and resales of Exchange Securities by
     broker-dealers during the Resale Period to be effected as contemplated by
     Section 2(a), and use its reasonable best

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     efforts to cause such Exchange Registration Statement to become effective
     as soon as practicable thereafter, but no later than 135 days after the
     Closing Time;

          (ii)  as soon as practicable prepare and file with the Commission such
     amendments and supplements to such Exchange Registration Statement and the
     prospectus included therein as may be necessary to effect and maintain the
     effectiveness of such Exchange Registration Statement for the periods and
     purposes contemplated in Section 2(a) hereof and as may be required by the
     applicable rules and regulations of the Commission and the instructions
     applicable to the form of such Exchange Registration Statement, and
     promptly provide each broker-dealer holding Exchange Securities with such
     number of copies of the prospectus included therein (as then amended or
     supplemented), in conformity in all material respects with the requirements
     of the Securities Act and the Trust Indenture Act and the rules and
     regulations of the Commission thereunder, as such broker-dealer reasonably
     may request prior to the expiration of the Resale Period, for use in
     connection with resales of Exchange Securities;

          (iii) promptly notify each broker-dealer that has requested or
     received copies of the prospectus included in such registration statement,
     and confirm such advice in writing, (A) when such Exchange Registration
     Statement or the prospectus included therein or any prospectus amendment or
     supplement or post-effective amendment has been filed, and, with respect to
     such Exchange Registration Statement or any post-effective amendment, when
     the same has become effective, (B) of any comments made to the Company or
     its counsel by the Commission or by the blue sky or securities commissioner
     or regulator of any state with respect thereto or any request made to the
     Company or its counsel by the Commission for amendments or supplements to
     such Exchange Registration Statement or prospectus or for additional
     information, (C) of the issuance by the Commission of any stop order
     suspending the effectiveness of such Exchange Registration Statement or the
     initiation or threatening of any proceedings for that purpose, (D) if at
     any time the Company becomes aware that the representations and warranties
     of the Company contemplated by Section 5 cease to be true and correct in
     all material respects, (E) of the receipt by the Company of any
     notification with respect to the suspension of the qualification of the
     Exchange Securities for sale in any jurisdiction or the initiation or
     threatening of any proceeding for such purpose, or (F) at any time during
     the Resale Period when a prospectus is required to be delivered under the
     Securities Act, that such Exchange Registration Statement, prospectus,
     prospectus amendment or supplement or post-effective amendment does not
     conform in all material respects to the applicable requirements of the
     Securities Act and the Trust Indenture Act and the rules and regulations of
     the Commission thereunder or contains an untrue statement of a material
     fact or omits to state a material fact required to be stated therein or
     necessary to make the statements therein not misleading in light of the
     circumstances in which they were made;

          (iv)  in the event that the Company would be required, pursuant to
     Section 3(c)(iii)(F) above, to notify any broker-dealers holding Exchange
     Securities, without unreasonable delay prepare and furnish to each such
     holder a reasonable number of copies of a prospectus supplemented or
     amended so that, as thereafter delivered to purchasers of such Exchange
     Securities during the Resale Period, such prospectus shall conform in all
     material respects to the applicable requirements of the Securities Act and
     the Trust Indenture Act and the rules and regulations of the Commission
     thereunder and shall not 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 in light of the circumstances
     then existing;

          (v)   use its reasonable best efforts to obtain the withdrawal of any
     order suspending the effectiveness of such Exchange Registration Statement
     or any post-effective amendment thereto at the earliest practicable date;

          (vi)  use its reasonable best efforts to (A) register or qualify the
     Exchange Securities under the securities laws or blue sky laws of such
     jurisdictions as are contemplated by Section 2(a) no later than the
     commencement of the Exchange Offer, (B) keep such registrations or
     qualifications in effect and comply with such laws so as to permit the
     continuance of offers, sales and dealings therein in such jurisdictions
     until the expiration of the Resale Period and (C) take any and all other
     actions as may be reasonably necessary or advisable to enable each broker-
     dealer holding Exchange Securities to consummate the disposition thereof in
     such jurisdictions; provided, however, that the Company shall not be
     required for any

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     such purpose to (1) qualify as a foreign corporation or as a dealer in
     securities in any jurisdiction wherein it would not otherwise be required
     to qualify but for the requirements of this Section 3(c)(vi), (2) consent
     to general service of process, or take any action that would subject it to
     general service of process or taxation, in any such jurisdiction if it is
     not then so subject or (3) make any changes to its certificate of
     incorporation or by-laws or any agreement between it and its stockholders;

          (vii)  use its reasonable best efforts to obtain the consent or
     approval of each governmental agency or authority, whether federal, state
     or local, which may be required to effect the Exchange Registration, the
     Exchange Offer and the offering and sale of Exchange Securities by broker-
     dealers during the Resale Period;

          (viii) provide a CUSIP number for all Exchange Securities, not later
     than the applicable Effective Time;

          (ix)   comply with all applicable rules and regulations of the
     Commission, and make generally available to its securityholders as soon as
     practicable but no later than eighteen months after the effective date of
     such Exchange Registration Statement, an earning statement complying with
     Section 11(a) of the Securities Act (including, at the option of the
     Company, Rule 158 thereunder).

     (d)  In connection with the Company's obligations with respect to the Shelf
Registration, if applicable, the Company shall, subject to Section 2(c), as soon
as practicable (or as otherwise specified):

          (i)    use its reasonable best efforts to prepare and file with the
     Commission, as soon as practicable but in any case within the time periods
     specified in Section 2(b), a Shelf Registration Statement on any form which
     may be utilized by the Company and which shall register all of the
     Registrable Securities for resale by the holders thereof in accordance with
     such method or methods of disposition as may be specified by such of the
     holders as, from time to time, may be Electing Holders and use its
     reasonable best efforts to cause such Shelf Registration Statement to
     become effective as soon as practicable but in any case within the time
     periods specified in Section 2(b);

          (ii)   not less than 30 calendar days prior to the Effective Time of
     the Shelf Registration Statement, mail the Notice and Questionnaire to the
     holders of Registrable Securities; no holder shall be entitled to be named
     as a selling securityholder in the Shelf Registration Statement as of the
     Effective Time, and no holder shall be entitled to use the prospectus
     forming a part thereof for resales of Registrable Securities at any time,
     unless such holder has returned a completed and signed Notice and
     Questionnaire to the Company by the deadline for response set forth
     therein; provided, however, holders of Registrable Securities shall have at
     least 28 calendar days from the date on which the Notice and Questionnaire
     is first mailed to such holders to return a completed and signed Notice and
     Questionnaire to the Company;

          (iii)  after the Effective Time of the Shelf Registration Statement,
     upon the request of any holder of Registrable Securities that is not then
     an Electing Holder, promptly send a Notice and Questionnaire to such
     holder; provided that the Company shall not be required to take any action
     to name such holder as a selling securityholder in the Shelf Registration
     Statement or to enable such holder to use the prospectus forming a part
     thereof for resales of Registrable Securities until such holder has
     returned a completed and signed Notice and Questionnaire to the Company;

          (iv)   as soon as practicable prepare and file with the Commission
     such amendments and supplements to such Shelf Registration Statement and
     the prospectus included therein as may be necessary to effect and maintain
     the effectiveness of such Shelf Registration Statement for the period
     specified in Section 2(b) hereof and as may be required by the applicable
     rules and regulations of the Commission and the instructions applicable to
     the form of such Shelf Registration Statement, and furnish to the Electing
     Holders copies of any such supplement or amendment simultaneously with or
     prior to its being used or filed with the Commission;

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          (v)    comply with the provisions of the Securities Act with respect
     to the disposition of all of the Registrable Securities covered by such
     Shelf Registration Statement in accordance with the intended methods of
     disposition by the Electing Holders provided for in such Shelf Registration
     Statement;

          (vi)   provide (A) the Electing Holders, (B) the underwriters (which
     term, for purposes of this Registration Rights Agreement, shall include a
     person deemed to be an underwriter within the meaning of Section 2(11) of
     the Securities Act), if any, thereof, (C) any sales or placement agent
     therefor, (D) not more than one counsel for all such underwriters and
     agents and (E) not more than one counsel for all the Electing Holders the
     opportunity to participate in the preparation of such Shelf Registration
     Statement, each prospectus included therein or filed with the Commission
     and each amendment or supplement thereto;

          (vii)  for a reasonable period prior to the filing of such Shelf
     Registration Statement, and throughout the period specified in Section
     2(b), make available (solely for the purpose of verifying the accuracy of
     information contained in the Shelf Registration Statement) at reasonable
     times at the Company's principal place of business or such other reasonable
     place as the Company shall determine for inspection by the persons referred
     to in Section 3(d)(vi) who shall certify to the Company that they have a
     current intention to sell the Registrable Securities pursuant to the Shelf
     Registration such relevant financial and other information and books and
     records of the Company, and cause the officers, employees, counsel and
     independent certified public accountants of the Company to respond to such
     inquiries, as shall be reasonably necessary, in the judgment of the
     respective counsel referred to in such Section, to conduct a reasonable
     investigation within the meaning of Section 11 of the Securities Act;
     provided, however, that each such party shall be required to maintain in
     confidence and not to disclose to any other person any information or
     records reasonably designated by the Company as being confidential, until
     such time as (A) such information becomes a matter of public record
     (whether by virtue of its inclusion in such registration statement or
     otherwise), or (B) such person shall be required so to disclose such
     information pursuant to a subpoena or order of any court or other
     governmental agency or body having jurisdiction over the matter (subject to
     the requirements of such order, and only after such person shall have given
     the Company prompt prior written notice of such requirement);

          (viii) promptly notify each of the Electing Holders, any sales or
     placement agent therefor and any underwriter thereof (which notification
     may be made through any managing underwriter that is a representative of
     such underwriter for such purpose) and confirm such advice in writing, (A)
     when such Shelf Registration Statement or the prospectus included therein
     or any prospectus amendment or supplement or post-effective amendment has
     been filed, and, with respect to such Shelf Registration Statement or any
     post-effective amendment, when the same has become effective, (B) of any
     comments made to the Company or its counsel by the Commission and by the
     blue sky or securities commissioner or regulator of any state with respect
     thereto or any request made to the Company or its counsel by the Commission
     for amendments or supplements to such Shelf Registration Statement or
     prospectus or for additional information, (C) of the issuance by the
     Commission of any stop order suspending the effectiveness of such Shelf
     Registration Statement or the initiation or threatening of any proceedings
     for that purpose, (D) if at any time the Company becomes aware that
     representations and warranties of the Company contemplated by Section
     3(d)(xvii) or Section 5 cease to be true and correct in all material
     respects, (E) of the receipt by the Company of any notification with
     respect to the suspension of the qualification of the Registrable
     Securities for sale in any jurisdiction or the initiation or threatening of
     any proceeding for such purpose, or (F) if at any time when a prospectus is
     required to be delivered under the Securities Act, such Shelf Registration
     Statement, prospectus, prospectus amendment or supplement or post-effective
     amendment does not conform in all material respects to the applicable
     requirements of the Securities Act and the Trust Indenture Act and the
     rules and regulations of the Commission thereunder or contains an untrue
     statement of a material fact or omits to state any material fact required
     to be stated therein or necessary to make the statements therein not
     misleading in light of the circumstances then existing;

          (ix)   use its reasonable best efforts to obtain the withdrawal of any
     order suspending the effectiveness of such registration statement or any
     post-effective amendment thereto at the earliest practicable date;

                                      -8-
<PAGE>

          (x)    if requested by any managing underwriter or underwriters, any
     placement or sales agent or any Electing Holder, promptly incorporate in a
     prospectus supplement or post-effective amendment such information as is
     required by the applicable rules and regulations of the Commission and as
     such managing underwriter or underwriters, such agent or such Electing
     Holder specifies should be included therein relating to the terms of the
     sale of such Registrable Securities, including information with respect to
     the principal amount of Registrable Securities being sold by such Electing
     Holder or agent or to any underwriters, the name and description of such
     Electing Holder, agent or underwriter, the offering price of such
     Registrable Securities and any discount, commission or other compensation
     payable in respect thereof, the purchase price being paid therefor by such
     underwriters and with respect to any other terms of the offering of the
     Registrable Securities to be sold by such Electing Holder or agent or to
     such underwriters; and make all required filings of such prospectus
     supplement or post-effective amendment promptly after notification of the
     matters to be incorporated in such prospectus supplement or post-effective
     amendment;

          (xi)   furnish to each Electing Holder, each placement or sales agent,
     if any, therefor, each underwriter, if any, thereof and the respective
     counsel referred to in Section 3(d)(vi) a copy of such Shelf Registration
     Statement, each such amendment and supplement thereto (in each case
     including all exhibits thereto (in the case of an Electing Holder of
     Registrable Securities, upon request) and documents incorporated by
     reference therein) and such number of copies of such Shelf Registration
     Statement (excluding exhibits thereto and documents incorporated by
     reference therein unless specifically so requested by such Electing Holder,
     agent or underwriter, as the case may be) and of the prospectus included in
     such Shelf Registration Statement (including each preliminary prospectus
     and any summary prospectus), in conformity in all material respects with
     the applicable requirements of the Securities Act and the Trust Indenture
     Act and the rules and regulations of the Commission thereunder, and such
     other documents, as such Electing Holder, agent, if any, and underwriter,
     if any, may reasonably request in order to facilitate the offering and
     disposition of the Registrable Securities owned by such Electing Holder,
     offered or sold by such agent or underwritten by such underwriter and to
     permit such Electing Holder, agent and underwriter to satisfy the
     prospectus delivery requirements of the Securities Act; and the Company
     hereby consents to the use of such prospectus (including such preliminary
     and summary prospectus) and any amendment or supplement thereto by each
     such Electing Holder and by any such agent and underwriter, in each case in
     the form most recently provided to such person by the Company, in
     connection with the offering and sale of the Registrable Securities covered
     by the prospectus (including such preliminary and summary prospectus) or
     any supplement or amendment thereto;

          (xii)  use its reasonable best efforts to (A) register or qualify the
     Registrable Securities to be included in such Shelf Registration Statement
     under such securities laws or blue sky laws of such jurisdictions as any
     Electing Holder and each placement or sales agent, if any, therefor and
     underwriter, if any, thereof shall reasonably request, (B) keep such
     registrations or qualifications in effect and comply with such laws so as
     to permit the continuance of offers, sales and dealings therein in such
     jurisdictions during the period the Shelf Registration is required to
     remain effective under Section 2(b) above and for so long as may be
     necessary to enable any such Electing Holder, agent or underwriter to
     complete its distribution of Securities pursuant to such Shelf Registration
     Statement and (C) take any and all other actions as may be reasonably
     necessary or advisable to enable each such Electing Holder, agent, if any,
     and underwriter, if any, to consummate the disposition in such
     jurisdictions of such Registrable Securities; provided, however, that the
     Company shall not be required for any such purpose to (1) qualify as a
     foreign corporation or as a dealer in securities in any jurisdiction
     wherein it would not otherwise be required to qualify but for the
     requirements of this Section 3(d)(xii), (2) consent to general service of
     process or take any action that would subject it to general service of
     process or taxation, in any such jurisdiction if it is not then so subject
     or (3) make any changes to its certificate of incorporation or by-laws or
     any agreement between it and its stockholders;

          (xiii) use its reasonable best efforts to obtain the consent or
     approval of each governmental agency or authority, whether federal, state
     or local, which may be required to effect the Shelf Registration or the
     offering or sale in connection therewith or to enable the selling holder or
     holders to offer, or to consummate the disposition of, their Registrable
     Securities;

                                      -9-
<PAGE>

          (xiv)  cooperate with the Electing Holders and the managing
     underwriters, if any, to facilitate the timely preparation and delivery of
     certificates representing Registrable Securities to be sold, which
     certificates shall be printed, lithographed or engraved, or produced by any
     combination of such methods, and which shall not bear any restrictive
     legends; and, in the case of an underwritten offering, enable such
     Registrable Securities to be in such denominations and registered in such
     names as the managing underwriters may request at least two business days
     prior to any sale of the Registrable Securities;

          (xv)   provide a CUSIP number for all Registrable Securities, not
     later than the applicable Effective Time;

          (xvi)  enter into one or more underwriting agreements, engagement
     letters, agency agreements, "best efforts" underwriting agreements or
     similar agreements, as appropriate, in each case, that are satisfactory to
     the Company, including customary provisions relating to indemnification and
     contribution, and take such other actions in connection therewith as any
     Electing Holders shall reasonably request and as are customarily taken in
     order to expedite or facilitate the disposition of such Registrable
     Securities;

          (xvii) whether or not an agreement of the type referred to in Section
     3(d)(xvi) hereof is entered into and whether or not any portion of the
     offering contemplated by the Shelf Registration is an underwritten offering
     or is made through a placement or sales agent or any other entity, (A) make
     such representations and warranties to the Electing Holders and the
     placement or sales agent, if any, therefor and the underwriters, if any,
     thereof in form, substance and scope as are customarily made in connection
     with a similar offering of debt securities pursuant to any appropriate
     agreement or to a registration statement filed on the form applicable to
     the Shelf Registration; (B) obtain an opinion of counsel to the Company in
     customary form and covering such matters, of the type customarily covered
     by such an opinion, as the managing underwriters, if any, or as any
     Electing Holders may reasonably request, addressed to such Electing Holder
     or Electing Holders and the placement or sales agent, if any, therefor and
     the underwriters, if any, thereof, dated the effective date of such Shelf
     Registration Statement (and if such Shelf Registration Statement
     contemplates an underwritten offering of a part or all of the Registrable
     Securities, dated the date of the closing under the underwriting agreement
     relating thereto) (it being agreed that the matters to be covered by such
     opinion shall include the due incorporation and good standing of the
     Company and its significant subsidiaries; the qualification of the Company
     and its significant subsidiaries to transact business as foreign
     corporations; the due authorization, execution and delivery of the relevant
     agreement of the type referred to in Section 3(d)(xvi) hereof; the due
     authorization, execution, authentication and issuance, and the validity and
     enforceability, of the Securities; the absence of material legal or
     governmental proceedings involving the Company; the absence of governmental
     approvals required to be obtained in connection with the Shelf
     Registration, the offering and sale of the Registrable Securities, this
     Registration Rights Agreement or any agreement of the type referred to in
     Section 3(d)(xvi) hereof, except such approvals as may be required under
     state securities or blue sky laws; the material compliance as to form of
     such Shelf Registration Statement and any documents incorporated by
     reference therein and of the Indenture with the requirements of the
     Securities Act and the Trust Indenture Act and the rules and regulations of
     the Commission thereunder, respectively; and, as of the date of the opinion
     and of the Shelf Registration Statement or most recent post-effective
     amendment thereto, as the case may be, the absence from such Shelf
     Registration Statement and the prospectus included therein, as then amended
     or supplemented, and from the documents incorporated by reference therein
     (in each case other than the financial statements and other financial
     information contained therein) of an untrue statement of a material fact or
     the omission to state therein a material fact necessary to make the
     statements therein not misleading (in the case of such documents, in the
     light of the circumstances existing at the time that such documents were
     filed with the Commission under the Exchange Act)); (C) obtain a "cold
     comfort" letter or letters from the independent certified public
     accountants of the Company addressed to the placement or sales agent, if
     any, or the underwriters, if any, and use its reasonable best efforts to
     have such letter also addressed to the selling Electing Holders (provided,
     however, that such letter need not be addressed to any person to whom, in
     the reasonable opinion of the Company's public accountants, addressing such
     letter is not permissible under applicable accounting standards) dated (i)
     the effective date of such Shelf Registration Statement and (ii) the
     effective date of any prospectus supplement to the prospectus included in
     such Shelf Registration Statement or post-effective amendment to such Shelf
     Registration Statement which includes unaudited or audited financial
     statements as of a date or for a period subsequent to that of

                                      -10-
<PAGE>

     the latest such statements included in such prospectus (and, if such Shelf
     Registration Statement contemplates an underwritten offering pursuant to
     any prospectus supplement to the prospectus included in such Shelf
     Registration Statement or post-effective amendment to such Shelf
     Registration Statement which includes unaudited or audited financial
     statements as of a date or for a period subsequent to that of the latest
     such statements included in such prospectus, dated the date of the closing
     under the underwriting agreement relating thereto), such letter or letters
     to be in customary form and covering such matters of the type customarily
     covered by letters of such type; (D) deliver such documents and
     certificates, including officers' certificates, as may be reasonably
     requested by any Electing Holders or the placement or sales agent, if any,
     therefor and the managing underwriters, if any, thereof to evidence the
     accuracy of the representations and warranties made pursuant to clause (A)
     above or those contained in Section 5(a) hereof and the compliance with or
     satisfaction of any agreements or conditions contained in the underwriting
     agreement or other agreement entered into by the Company; and (E) undertake
     such obligations relating to expense reimbursement, indemnification and
     contribution as are provided in Section 6 hereof;

          (xviii) notify in writing each holder of Registrable Securities of any
     proposal by the Company to amend or waive any provision of this
     Registration Rights Agreement pursuant to Section 9(h) hereof and of any
     amendment or waiver effected pursuant thereto, each of which notices shall
     contain the text of the amendment or waiver proposed or effected, as the
     case may be;

          (xix)   in the event that any broker-dealer registered under the
     Exchange Act shall underwrite any Registrable Securities or participate as
     a member of an underwriting syndicate or selling group or "assist in the
     distribution" (within the meaning of the Rules of Fair Practice and the By-
     Laws of the National Association of Securities Dealers, Inc. ("NASD") or
     any successor thereto, as amended from time to time) thereof, whether as a
     holder of such Registrable Securities or as an underwriter, a placement or
     sales agent or a broker or dealer in respect thereof, or otherwise, assist
     such broker-dealer in complying with the requirements of such Rules and By-
     Laws, including by (A) if such Rules or By-Laws shall so require, engaging
     a "qualified independent underwriter" (as defined in such Schedule (or any
     successor thereto)) to participate in the preparation of the Shelf
     Registration Statement relating to such Registrable Securities, to exercise
     usual standards of due diligence in respect thereto and, if any portion of
     the offering contemplated by such Shelf Registration Statement is an
     underwritten offering or is made through a placement or sales agent, to
     recommend the yield of such Registrable Securities, (B) indemnifying any
     such qualified independent underwriter to the extent of the indemnification
     of underwriters provided in Section 6 hereof, and (C) providing such
     information to such broker-dealer as may be required in order for such
     broker-dealer to comply with the requirements of the Rules of Fair Practice
     of the NASD; and

          (xx)    comply with all applicable rules and regulations of the
     Commission, and make generally available to its securityholders as soon as
     practicable but in any event not later than eighteen months after the
     effective date of such Shelf Registration Statement, an earning statement
     complying with Section 11(a) of the Securities Act (including, at the
     option of the Company, Rule 158 thereunder).

     (e)  In the event that the Company would be required, pursuant to Section
3(d)(viii)(F) above, to notify the Electing Holders, the placement or sales
agent, if any, therefor and the managing underwriters, if any, thereof, the
Company shall without delay prepare and furnish to each of the Electing Holders,
to each placement or sales agent, if any, and to each such underwriter, if any,
a reasonable number of copies of a prospectus supplemented or amended so that,
as thereafter delivered to purchasers of Registrable Securities, such prospectus
shall conform in all material respects to the applicable requirements of the
Securities Act and the Trust Indenture Act and the rules and regulations of the
Commission thereunder and shall not 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 in light of the circumstances then
existing. Each Electing Holder agrees that upon receipt of any notice from the
Company pursuant to Section 3(d)(viii)(F) hereof, such Electing Holder shall
forthwith discontinue the disposition of Registrable Securities pursuant to the
Shelf Registration Statement applicable to such Registrable Securities until
such Electing Holder shall have received copies of such amended or supplemented
prospectus, and if so directed by the Company, such Electing Holder shall
deliver to the Company (at the Company's expense) all copies, other than
permanent file copies, then in such Electing Holder's possession of the
prospectus covering such Registrable Securities at the time of receipt of such
notice.

                                      -11-
<PAGE>

     (f)  In the event of a Shelf Registration, in addition to the information
required to be provided by each Electing Holder in its Notice Questionnaire, the
Company may require such Electing Holder to furnish to the Company such
additional information regarding such Electing Holder and such Electing Holder's
intended method of distribution of Registrable Securities as may be required in
order to comply with the Securities Act. Each such Electing Holder agrees to
notify the Company as promptly as practicable of any inaccuracy or change in
information previously furnished by such Electing Holder to the Company or of
the occurrence of any event in either case as a result of which any prospectus
relating to such Shelf Registration contains or would contain an untrue
statement of a material fact regarding such Electing Holder or such Electing
Holder's intended method of disposition of such Registrable Securities or omits
to state any material fact regarding such Electing Holder or such Electing
Holder's intended method of disposition of such Registrable Securities required
to be stated therein or necessary to make the statements therein, in light of
the circumstances in which they are made, not misleading, and promptly to
furnish to the Company any additional information required to correct and update
any previously furnished information or required so that such prospectus shall
not contain, with respect to such Electing Holder or the disposition of such
Registrable Securities, 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, in light of the circumstances in which they are made, not
misleading.

4.   Registration Expenses.

     The Company agrees to bear and to pay or cause to be paid promptly upon
request being made therefor all expenses incident to the Company's performance
of or compliance with this Registration Rights Agreement, including (a) all
Commission and any NASD registration, filing and review fees and expenses
including fees and disbursements of counsel for the placement or sales agent or
underwriters in connection with such registration, filing and review, (b) all
fees and expenses in connection with the qualification of the Securities for
offering and sale under the State securities and blue sky laws referred to in
Section 3(d)(xii) hereof and determination of their eligibility for investment
under the laws of such jurisdictions as any managing underwriters or the
Electing Holders may designate, including any fees and disbursements of counsel
for the Electing Holders (subject to the limitations of Clause (i) below) or
underwriters in connection with such qualification and determination, (c) all
expenses relating to the preparation, printing, production, distribution and
reproduction of each registration statement required to be filed hereunder, each
prospectus included therein or prepared for distribution pursuant hereto, each
amendment or supplement to the foregoing, the expenses of preparing the
Securities for delivery and preparation and printing of certificates
representing the Securities or delivery of Securities to be disposed of
(including certificates representing the Securities), (d) messenger, telephone
and delivery expenses relating to the offering, sale or delivery of Securities
and the preparation of documents referred in clause (c) above, (e) fees and
expenses of the Trustee under the Indenture, any agent of the Trustee and any
counsel for the Trustee and of any collateral agent or custodian, (f) internal
expenses (including all salaries and expenses of the Company's officers and
employees performing legal or accounting duties), (g) fees, disbursements and
expenses of counsel and independent certified public accountants of the Company
(including the expenses of any opinions or "cold comfort" letters required by or
incident to such performance and compliance), (h) fees, disbursements and
expenses of one counsel for the Electing Holders retained in connection with a
Shelf Registration, as selected by the Electing Holders of at least a majority
in aggregate principal amount of the Registrable Securities held by Electing
Holders (which counsel shall be reasonably satisfactory to the Company), (i) any
fees charged by securities rating services for rating the Securities, and (j)
fees, expenses and disbursements of any other persons, including special
experts, retained by the Company in connection with such registration
(collectively, the "Registration Expenses"). To the extent that any Registration
Expenses are incurred, assumed or paid by any holder of Registrable Securities
or any placement or sales agent therefor or underwriter thereof, the Company
shall reimburse such person for the full amount of the Registration Expenses so
incurred, assumed or paid promptly after receipt of a request therefor.
Notwithstanding the foregoing, the holders of the Registrable Securities being
registered shall pay all agency fees and commissions and underwriting discounts
and commissions attributable to the sale of such Registrable Securities and the
fees and disbursements of any counsel, any "qualified independent underwriter"
engaged pursuant to Section 3(d)(xix) hereof, or other advisors or experts
retained by such holders (severally or jointly), other than the counsel and
experts specifically referred to above.

                                      -12-
<PAGE>

5.   Representations and Warranties.

     The Company represents and warrants to, and agrees with, each Purchaser and
each of the holders from time to time of Registrable Securities that:

          (a)  Each registration statement covering Registrable Securities and
     each prospectus (including any preliminary or summary prospectus) contained
     therein or furnished pursuant to Section 3(d) or Section 3(c) hereof and
     any further amendments or supplements to any such registration statement or
     prospectus, when it becomes effective or is filed with the Commission, as
     the case may be, and, in the case of an underwritten offering of
     Registrable Securities, at the time of the closing under the underwriting
     agreement relating thereto, will conform in all material respects to the
     applicable requirements of the Securities Act and the Trust Indenture Act
     and the rules and regulations of the Commission thereunder and will not
     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 at all times subsequent to the Effective Time
     when a prospectus would be required to be delivered under the Securities
     Act, other than from (i) such time as a notice has been given to holders of
     Registrable Securities pursuant to Section 3(d)(viii)(F) or Section
     3(c)(iii)(F) hereof until (ii) such time as the Company furnishes an
     amended or supplemented prospectus pursuant to Section 3(e) or Section
     3(c)(iv) hereof, each such registration statement, and each prospectus
     (including any summary prospectus) contained therein or furnished pursuant
     to Section 3(d) or Section 3(c) hereof, as then amended or supplemented,
     will conform in all material respects to the applicable requirements of the
     Securities Act and the Trust Indenture Act and the rules and regulations of
     the Commission thereunder and will not 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 in light of the
     circumstances in which they were made not misleading; provided, however,
     that this representation and warranty shall not apply to any statements or
     omissions made in reliance upon and in conformity with information
     furnished in writing to the Company by a holder of Registrable Securities
     expressly for use therein.

          (b)  Any documents incorporated by reference in any prospectus
     referred to in Section 5(a) hereof, when they become or became effective or
     are or were filed with the Commission, as the case may be, will conform or
     conformed in all material respects to the requirements of the Securities
     Act or the Exchange Act, as applicable, and none of such documents will
     contain or contained an untrue statement of a material fact or will omit or
     omitted to state a material fact required to be stated therein or necessary
     to make the statements therein not misleading in light of the circumstances
     then existing; provided, however, that this representation and warranty
     shall not apply to any statements or omissions made in reliance upon and in
     conformity with information furnished in writing to the Company by a holder
     of Registrable Securities expressly for use therein.

          (c)  The compliance by the Company with all of the provisions of this
     Registration Rights Agreement and the consummation of the transactions
     herein contemplated will not conflict with or result in a breach of any of
     the terms or provisions of, or constitute a default under, any indenture,
     mortgage, deed of trust, loan agreement or other agreement or instrument to
     which the Company or any subsidiary of the Company is a party or by which
     the Company or any subsidiary of the Company is bound or to which any of
     the property or assets of the Company or any subsidiary of the Company is
     subject, nor will such action result in any violation of the provisions of
     the certificate of incorporation, as amended, or the by-laws of the Company
     or any statute or any order, rule or regulation of any court or
     governmental agency or body having jurisdiction over the Company or any
     subsidiary of the Company or any of their properties; and no consent,
     approval, authorization, order, registration or qualification of or with
     any such court or governmental agency or body is required for the
     consummation by the Company of the transactions contemplated by this
     Registration Rights Agreement, except the registration under the Securities
     Act of the Securities, qualification of the Indenture under the Trust
     Indenture Act and such consents, approvals, authorizations, registrations
     or qualifications as may be required under State securities or blue sky
     laws in connection with the offering and distribution of the Securities.

          (d)  This Registration Rights Agreement has been duly authorized,
     executed and delivered by the Company.

                                      -13-
<PAGE>

6.   Indemnification.

     (a)  Indemnification by the Company. The Company shall indemnify and hold
harmless each of the holders of Registrable Securities included in an Exchange
Registration Statement, each of the Electing Holders of Registrable Securities
included in a Shelf Registration Statement and each person who participates as a
placement or sales agent or as an underwriter in any offering or sale of such
Registrable Securities 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 Exchange Registration
     Statement or Shelf Registration Statement, as the case may be, under which
     such Registrable Securities were registered under the Securities Act, or
     any preliminary, final or summary prospectus contained therein or furnished
     by the Company to any such holder, Electing Holder, agent or underwriter,
     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 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
     6(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 the holders of Registrable
     Securities), reasonably incurred 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 statement or omission, or any such
     alleged untrue statement or omission, to the extent that any such expense
     is not paid under (i) or (ii) above;

provided, however, that the Company shall not be liable to any such person in
any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission made in such registration statement, or
preliminary, final or summary prospectus, or amendment or supplement thereto, in
reliance upon and in conformity with written information furnished to the
Company by such person expressly for use therein;

     (b)  Indemnification by the Holders and any Agents and Underwriters. The
Company may require, as a condition to including any Registrable Securities in
any registration statement filed pursuant to Section 2(b) hereof and to entering
into any underwriting agreement with respect thereto, that the Company shall
have received an undertaking reasonably satisfactory to it from the Electing
Holder of such Registrable Securities and from each underwriter named in any
such underwriting agreement, severally and not jointly, to (i) indemnify and
hold harmless the Company, and all other holders of Registrable Securities,
against any losses, claims, damages or liabilities to which the Company or such
other holders of Registrable Securities may become subject, under the Securities
Act or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon an untrue statement
or alleged untrue statement of a material fact contained in such registration
statement, or any preliminary, final or summary prospectus contained therein or
furnished by the Company to any such Electing Holder, agent or underwriter, or
any amendment or supplement thereto, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, in
each case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company by or
on behalf of such Electing Holder or underwriter expressly for use therein, and
(ii) reimburse the Company for any legal or other expenses reasonably incurred
by the Company in connection with investigating or defending any such action or
claim as such expenses are incurred; provided, however, that no such Electing
Holder shall be required to undertake liability to any person under this Section
6(b) for any amounts in excess of the dollar amount of the proceeds to be
received by such Electing Holder from the sale of such Electing Holder's
Registrable Securities pursuant to such registration.

                                      -14-
<PAGE>

     (c)  Notices of Claims, Etc. Promptly after receipt by an indemnified party
under subsection (a) or b) above of written notice of the commencement of any
action, such indemnified party shall, if a claim in respect thereof is to be
made against an indemnifying party pursuant to the indemnification provisions of
or contemplated by this Section 6, notify such indemnifying party in writing of
the commencement of such action; but the omission so to notify the indemnifying
party shall not relieve it from any liability which it may have to any
indemnified party other than under the indemnification provisions of or
contemplated by Section 6(a) or 6(b) hereof. In the case of parties indemnified
pursuant to Section 6(a) above, counsel to the indemnified parties shall be
selected by the holders of a majority of the Registrable Securities held by
Electing Holders, and, in the case of parties indemnified pursuant to Section
6(b) above, counsel to the indemnified parties shall be selected by the Company.
In case any such action shall be brought against any indemnified party and it
shall notify an indemnifying party of the commencement thereof, such
indemnifying party shall be entitled to participate therein and, to the extent
that it shall wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel reasonably satisfactory to
such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and, after notice from
the indemnifying party to such indemnified party of its election so to assume
the defense thereof, such indemnifying party shall not be liable to such
indemnified party for any legal expenses of other counsel or any other expenses,
in each case subsequently incurred by such indemnified party, in connection with
the defense thereof other than reasonable costs of investigation. No
indemnifying party shall, without the written consent of the indemnified party,
effect the settlement or compromise of, or consent to the entry of any judgment
with respect to, any pending or threatened action or claim in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified party is an actual or potential party to such action or claim)
unless such settlement, compromise or judgment (i) includes an unconditional
release of the indemnified party from all liability arising out of such action
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)  Settlement without Consent if Failure to Reimburse. 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 6(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. Notwithstanding the immediately preceding sentence, if at any time
an indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, an indemnifying party shall
not be liable for any settlement of the nature contemplated by Section 6(a)(ii)
effected without its consent if such indemnifying party (i) reimburses such
indemnified party in accordance with such request to the extent the indemnifying
party considers such request to be reasonable and (ii) provided written notice
to the indemnified party substantiating the unpaid balance as unreasonable, in
each case prior to the date of such settlement.

     (e)  Contribution. If for any reason the indemnification provisions
contemplated by Section 6(a) or Section 6(b) are unavailable to or insufficient
to hold harmless an indemnified party in respect of any losses, claims, damages
or liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative fault of the indemnifying party and the indemnified party in connection
with the statements or omissions which resulted in such losses, claims, damages
or liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative fault of such indemnifying party and
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
such indemnifying party or by such indemnified party, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The parties hereto agree that it would not be just
and equitable if contributions pursuant to this Section 6(e) were determined by
pro rata allocation (even if the holders or any agents or underwriters or all of
them were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred
to in this Section 6(e). The amount paid or payable by an indemnified party as a
result of the losses, claims, damages, or liabilities (or actions in respect
thereof) referred to above shall be deemed to include any legal or other fees or
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 6(e), no holder

                                      -15-
<PAGE>

shall be required to contribute any amount in excess of the amount by which the
dollar amount of the proceeds received by such holder from the sale of any
Registrable Securities (after deducting any fees, discounts and commissions
applicable thereto) exceeds the amount of any damages which such holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission, and no underwriter shall be required
to contribute any amount in excess of the amount by which the total price at
which the Registrable Securities underwritten by it and distributed to the
public were offered to the public exceeds the amount of any damages which such
underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The holders' and any underwriters'
obligations in this Section 6(e) to contribute shall be several in proportion to
the principal amount of Registrable Securities registered or underwritten, as
the case may be, by them and not joint.

     (f)  The obligations of the Company under this Section 6 shall be in
addition to any liability which the Company may otherwise have and shall extend,
upon the same terms and conditions, to each officer, director and partner of
each holder, agent and underwriter and each person, if any, who controls any
holder, agent or underwriter within the meaning of the Securities Act; and the
obligations of the holders and any agents or underwriters contemplated by this
Section 6 shall be in addition to any liability which the respective holder,
agent or underwriter may otherwise have and shall extend, upon the same terms
and conditions, to each officer and director of the Company (including any
person who, with his consent, is named in any registration statement as about to
become a director of the Company) and to each person, if any, who controls the
Company within the meaning of the Securities Act.

7.   Underwritten Offerings.

     (a)  Right to Effect Underwritten Offering. The holders of Registrable
Securities covered by a Shelf Registration Statement filed pursuant to this
Registration Rights Agreement may sell such Registrable Securities in an
underwritten offering, provided that the holders of at least 20% in the
aggregate principal amount of the Registrable Securities initially outstanding
elect to participate in such offering and except that any such underwritten
offering shall be suspended during any Shelf Registration Suspension.

     (b)  Selection of Underwriters. If any of the Registrable Securities
covered by the Shelf Registration are to be sold pursuant to an underwritten
offering, the managing underwriter or underwriters thereof shall be designated
by Electing Holders holding at least a majority in aggregate principal amount of
the Registrable Securities to be included in such offering, provided that such
designated managing underwriter or underwriters is or are reasonably acceptable
to the Company.

     (c)  Participation by Holders. Each holder of Registrable Securities hereby
agrees with each other such holder that no such holder may participate in any
underwritten offering hereunder unless such holder (i) 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 (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements.

8.   Rule 144.

     The Company covenants to the holders of Registrable Securities that to the
extent it shall be required to do so under the Exchange Act, the Company shall
timely file the reports required to be filed by it under the Exchange Act or the
Securities Act (including the reports under Section 13 and 15(d) of the Exchange
Act referred to in subparagraph (c)(1) of Rule 144 adopted by the Commission
under the Securities Act) and the rules and regulations adopted by the
Commission thereunder, and shall take such further action as any holder of
Registrable Securities may reasonably request, all to the extent required from
time to time to enable such holder to sell Registrable Securities without
registration under the Securities Act within the limitations of the exemption
provided by Rule 144 under the Securities Act, as such Rule may be amended from
time to time, or any similar or successor rule or regulation hereafter adopted
by the Commission. Upon the request of any holder of Registrable Securities in

                                      -16-
<PAGE>

connection with that holder's sale pursuant to Rule 144, the Company shall
deliver to such holder a written statement as to whether it has complied with
such requirements.

9.   Miscellaneous.

     (a)  No Inconsistent Agreements. The Company represents, warrants,
covenants and agrees that it has not granted, and shall not grant, registration
rights with respect to Registrable Securities or any other securities which
prevents the exercise of or otherwise conflicts with the terms contained in this
Registration Rights Agreement.

     (b)  Specific Performance. The parties hereto acknowledge that there would
be no adequate remedy at law if the Company fails to perform any of its
obligations hereunder and that the Initial Purchasers and the holders from time
to time of the Registrable Securities may be irreparably harmed by any such
failure, and accordingly agree that the Initial Purchasers and such holders, in
addition to any other remedy to which they may be entitled at law or in equity,
shall be entitled to compel specific performance of the respective obligations
of the Company under this Registration Rights Agreement in accordance with the
terms and conditions of this Registration Rights Agreement, in any court of the
United States or any State thereof having jurisdiction.

     (c)  Notices. All notices, requests, claims, demands, waivers and other
communications hereunder shall be in writing and shall be deemed to have been
duly given when delivered by hand, if delivered personally or by courier, or
three days after being deposited in the mail (registered or certified mail,
postage prepaid, return receipt requested) as follows: If to the Company, to it
at Pogo Producing Company, 5 Greenway Plaza, Suite 2700, Houston, Texas
77046-0504, attention Corporate Secretary, and if to a holder, to the address of
such holder set forth in the security register or other records of the Company,
or to such other address as the Company or any such holder may have furnished to
the other in writing in accordance herewith, except that notices of change of
address shall be effective only upon receipt. For purposes of any notice to
holders required hereunder, the Company, absent knowledge to the contrary, may
presume that all holders are listed in the security register.

     (d)  Parties in Interest. All the terms and provisions of this Registration
Rights Agreement shall be binding upon, shall inure to the benefit of and shall
be enforceable by the parties hereto and the holders from time to time of the
Registrable Securities and the respective successors and assigns of the parties
hereto and such holders. In the event that any transferee of any holder of
Registrable Securities shall acquire Registrable Securities, in any manner,
whether by gift, bequest, purchase, operation of law or otherwise, such
transferee shall, without any further writing or action of any kind, be deemed a
beneficiary hereof for all purposes and such Registrable Securities shall be
held subject to all of the terms of this Registration Rights Agreement, and by
taking and holding such Registrable Securities such transferee shall be entitled
to receive the benefits of, and be conclusively deemed to have agreed to be
bound by all of the applicable terms and provisions of this Registration Rights
Agreement. If the Company shall so request, any such successor, assign or
transferee shall agree in writing to acquire and hold the Registrable Securities
subject to all of the applicable terms hereof.

     (e)  Survival. The respective indemnities, agreements, representations,
warranties and each other provision set forth in this Registration Rights
Agreement or made pursuant hereto shall remain in full force and effect
regardless of any investigation (or statement as to the results thereof) made by
or on behalf of any holder of Registrable Securities, any director, officer or
partner of such holder, any agent or underwriter or any director, officer or
partner thereof, or any controlling person of any of the foregoing, and shall
survive delivery of and payment for the Registrable Securities pursuant to the
Purchase Agreement and the transfer and registration of Registrable Securities
by such holder and the consummation of an Exchange Offer.

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

     (g)  Headings. The descriptive headings of the several Sections and
paragraphs of this Registration Rights Agreement are inserted for convenience
only, do not constitute a part of this Registration Rights Agreement and shall
not affect in any way the meaning or interpretation of this Registration Rights
Agreement.

                                      -17-
<PAGE>

     (h)  Entire Agreement; Amendments. This Registration Rights Agreement and
the other writings referred to herein (including the Indenture and the form of
Securities) or delivered pursuant hereto which form a part hereof contain the
entire understanding of the parties with respect to its subject matter. This
Registration Rights Agreement supersedes all prior agreements and understandings
between the parties with respect to its subject matter. This Registration Rights
Agreement may be amended and the observance of any term of this Registration
Rights Agreement may be waived (either generally or in a particular instance and
either retroactively or prospectively) only by a written instrument duly
executed by the Company and the holders of at least a majority in aggregate
principal amount of the Registrable Securities at the time outstanding. Each
holder of any Registrable Securities at the time or thereafter outstanding shall
be bound by any amendment or waiver effected pursuant to this Section 9(h),
whether or not any notice, writing or marking indicating such amendment or
waiver appears on such Registrable Securities or is delivered to such holder.

     (i)  Inspection. For so long as this Registration Rights Agreement shall be
in effect, this Registration Rights Agreement and a complete list of the names
and addresses of all the holders of Registrable Securities shall be made
available upon reasonable prior written notice for inspection and copying on any
business day by any holder of Registrable Securities for proper purposes only
(which shall include any purpose related to the rights of the holders of
Registrable Securities under the Securities, the Indenture and this Agreement)
at the offices of the Company at the address thereof set forth in Section 9(c)
above and at the office of the Trustee under the Indenture.

     (j)  Counterparts. This agreement may be executed by the parties in
counterparts, each of which shall be deemed to be an original, but all such
respective counterparts shall together constitute one and the same instrument.

                                      -18-
<PAGE>

     Agreed to and accepted as of the date referred to above.

                                  POGO PRODUCING COMPANY

                                  By /s/ James P. Ulm, II
                                     -----------------------------------------
                                     James P. Ulm, II
                                     Vice President and Chief Financial Officer

                                  Merrill Lynch & Co.
                                  Merrill Lynch, Pierce, Fenner & Smith
                                           Incorporated

                                  By _________________________________________
                                           Authorized Signatory

                                      -19-
<PAGE>

                                                                       Exhibit A

                             POGO PRODUCING COMPANY

                         INSTRUCTION TO DTC PARTICIPANTS
                         -------------------------------

                                (Date of Mailing)

                     URGENT - IMMEDIATE ATTENTION REQUESTED

                       DEADLINE FOR RESPONSE:  [DATE]/1/
                       ---------------------------------

     The Depository Trust Company ("DTC") has identified you as a DTC
Participant through which beneficial interests in the Pogo Producing Company
(the "Company") 8 1/4% Senior Subordinated Notes due 2011 (the "Securities") are
held.

     The Company is in the process of registering the Securities under the
Securities Act of 1933 for resale by the beneficial owners thereof. In order to
have their Securities included in the registration statement, beneficial owners
must complete and return the enclosed Notice of Registration Statement and
Selling Securityholder Questionnaire.

     It is important that beneficial owners of the Securities receive a copy of
     --------------------------------------------------------------------------
the enclosed materials as soon as possible as their rights to have the
------------------------------------------
Securities included in the registration statement depend upon their returning
the Notice and Questionnaire by [DEADLINE FOR RESPONSE]. Please forward a copy
                                 ---------------------
of the enclosed documents to each beneficial owner that holds interests in the
Securities through you. If you require more copies of the enclosed materials or
have any questions pertaining to this matter, please contact Pogo Producing
Company, 5 Greenway Plaza, Suite 2700, Houston, Texas 77046-0504, attention
Corporate Secretary, (713) 297-5017.

_______________

/1/ Not less than 28 calendar days from date of mailing.
<PAGE>

                             POGO PRODUCING COMPANY

                        Notice of Registration Statement
                                       and
                      Selling Securityholder Questionnaire
                      ------------------------------------

                                     (Date)

     Reference is hereby made to the Registration Rights Agreement (the
"Registration Rights Agreement") among Pogo Producing Company (the "Company")
and the Initial Purchasers named therein. Pursuant to the Registration Rights
Agreement, the Company has filed with the United States Securities and Exchange
Commission (the "Commission") a registration statement on Form [___] (the "Shelf
Registration Statement") for the registration and resale under Rule 415 of the
Securities Act of 1933, as amended (the "Securities Act"), of the Company's
8 1/4% Senior Subordinated Notes due 2011 (the "Securities"). A copy of the
Registration Rights Agreement is attached hereto. All capitalized terms not
otherwise defined herein shall have the meanings ascribed thereto in the
Registration Rights Agreement.

     Each beneficial owner of Registrable Securities (as defined below) is
entitled to have the Registrable Securities beneficially owned by it included in
the Shelf Registration Statement. In order to have Registrable Securities
included in the Shelf Registration Statement, this Notice of Registration
Statement and Selling Securityholder Questionnaire ("Notice and Questionnaire")
must be completed, executed and delivered to the Company's counsel at the
address set forth herein for receipt ON OR BEFORE [DEADLINE FOR RESPONSE].
Beneficial owners of Registrable Securities who do not complete, execute and
return this Notice and Questionnaire by such date (i) will not be named as
selling securityholders in the Shelf Registration Statement and (ii) may not use
the Prospectus forming a part thereof for resales of Registrable Securities.

     Certain legal consequences arise from being named as a selling
securityholder in the Shelf Registration Statement and related Prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are advised
to consult their own securities law counsel regarding the consequences of being
named or not being named as a selling securityholder in the Shelf Registration
Statement and related Prospectus.

     The term "Registrable Securities" is defined in the Registration Rights
Agreement.

                                      A-2
<PAGE>

                                    ELECTION

     The undersigned holder (the "Selling Securityholder") of Registrable
Securities hereby elects to include in the Shelf Registration Statement the
Registrable Securities beneficially owned by it and listed below in Item (3).
The undersigned, by signing and returning this Notice and Questionnaire, agrees
to be bound with respect to such Registrable Securities by the terms and
conditions of this Notice and Questionnaire and the Registration Rights
Agreement, including, without limitation, Section 6 of the Registration Rights
Agreement, as if the undersigned Selling Securityholder were an original party
thereto.

     Upon any sale of Registrable Securities pursuant to the Shelf Registration
Statement, the Selling Securityholder will be required to deliver to the Company
and Trustee the Notice of Transfer set forth in Appendix A to the Prospectus and
as Exhibit B to the Registration Rights Agreement.

     The Selling Securityholder hereby provides the following information to the
Company and represents and warrants that such information is accurate and
complete:

                                      A-3
<PAGE>

                                  QUESTIONNAIRE

(1)  (a)  Full Legal Name of Selling Securityholder:

          _____________________________________________________________________

     (b)  Full Legal Name of Registered Holder (if not the same as in (a) above)
          of Registrable Securities Listed in Item (3) below:

          _____________________________________________________________________

     (c)  Full Legal Name of DTC Participant (if applicable and if not the same
          as (b) above) Through Which Registrable Securities Listed in Item (3)
          below are Held:

          _____________________________________________________________________

(2)  Address for Notices to Selling Securityholder:

     __________________________________________________________________________

     __________________________________________________________________________

     __________________________________________________________________________

     Telephone:          ______________________________

     Fax:                ______________________________

     Contact Person:     ______________________________

(3)  Beneficial Ownership of Securities:

     Except as set forth below in this Item (3), the undersigned does not
     beneficially own any Securities.

     (a)  Principal amount of Registrable Securities beneficially owned:_______

          CUSIP No(s). of such Registrable Securities: ________________________

     (b)  Principal amount of Securities other than Registrable Securities
          beneficially owned:__________________________________________________

          CUSIP No(s). of such other Securities:_______________________________

     (c)  Principal amount of Registrable Securities which the undersigned
          wishes to be included in the Shelf Registration Statement:___________

          CUSIP No(s). of such Registrable Securities to be included in the
          Shelf Registration Statement:________________________________________

                                      A-4
<PAGE>

(4)  Beneficial Ownership of Other Securities of the Company:

     Except as set forth below in this Item (4), the undersigned Selling
Securityholder is not the beneficial or registered owner of any other securities
of the Company, other than the Securities listed above in Item (3).

     State any exceptions here:

(5)  Relationships with the Company:

     Except as set forth below, neither the Selling Securityholder nor any of
its affiliates, officers, directors or principal equity holders (5% or more) has
held any position or office or has had any other material relationship with the
Company (or its predecessors or affiliates) during the past three years.

     State any exceptions here:

(6)  Plan of Distribution:

     Except as set forth below, the undersigned Selling Securityholder intends
to distribute the Registrable Securities listed above in Item (3) only as
follows (if at all): Such Registrable Securities may be sold from time to time
directly by the undersigned Selling Securityholder or, alternatively, through
underwriters, broker-dealers or agents. Such Registrable Securities may be sold
in one or more transactions at fixed prices, at prevailing market prices at the
time of sale, at varying prices determined at the time of sale, or at negotiated
prices. Such sales may be effected in transactions (which may involve crosses or
block transactions) (i) on any national securities exchange or quotation service
on which the Registered Securities may be listed or quoted at the time of sale,
(ii) in the over-the-counter market, (iii) in transactions otherwise than on
such exchanges or services or in the over-the-counter market, or (iv) through
the writing of options. In connection with sales of the Registrable Securities
or otherwise, the Selling Securityholder may enter into hedging transactions
with broker-dealers, which may in turn engage in short sales of the Registrable
Securities in the course of hedging the positions they assume. The Selling
Securityholder may also sell Registrable Securities short and deliver
Registrable Securities to close out such short positions, or loan or pledge
Registrable Securities to broker-dealers that in turn may sell such securities.

     State any exceptions here:

(7)  Specify the number of copies of the prospectus needed:____________________

     By signing below, the Selling Securityholder acknowledges that it
understands its obligation to comply, and agrees that it will comply, with the
provisions of the Exchange Act and the rules and regulations thereunder,
particularly Regulation M thereunder.

     In the event that the Selling Securityholder transfers all or any portion
of the Registrable Securities listed in Item (3) above after the date on which
such information is provided to the Company, the Selling Securityholder agrees
to notify the transferee(s) at the time of the transfer of its rights and
obligations under this Notice and Questionnaire and the Registration Rights
Agreement.

     By signing below, the Selling Securityholder consents to the disclosure of
the information contained herein in its answers to Items (1) through (7) above
and the inclusion of such information in the Shelf Registration

                                      A-5
<PAGE>

Statement and related Prospectus. The Selling Securityholder understands that
such information will be relied upon by the Company in connection with the
preparation of the Shelf Registration Statement and related Prospectus.

     In accordance with the Selling Securityholder's obligation under Section
3(d) of the Registration Rights Agreement to provide such information as may be
required by law for inclusion in the Shelf Registration Statement, the Selling
Securityholder agrees to promptly notify the Company of any inaccuracies or
changes in the information provided herein which may occur subsequent to the
date hereof at any time while the Shelf Registration Statement remains in
effect. All notices hereunder and pursuant to the Exchange and Registration
Rights Agreement shall be made in writing, by hand-delivery, first-class mail,
or air courier guaranteeing overnight delivery to the Company as follows:

                    Pogo Producing Company
                    5 Greenway Plaza, Suite 2700
                    Houston, Texas 77046-0504
                    Attention: Corporate Secretary
                    (713) 297-5017

     Once this Notice and Questionnaire is executed by the Selling
Securityholder and received by the Company's counsel, the terms of this Notice
and Questionnaire, and the representations and warranties contained herein,
shall be binding on, shall inure to the benefit of and shall be enforceable by
the respective successors, heirs, personal representatives, and assigns of the
Company and the Selling Securityholder (with respect to the Registrable
Securities beneficially owned by such Selling Securityholder and listed in Item
(3) above. This Agreement shall be governed in all respects by the laws of the
State of New York.

     IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused
this Notice and Questionnaire to be executed and delivered either in person or
by its duly authorized agent.

Dated: ________________

                                      __________________________________________
                                      Selling Securityholder
                                      (Print/type full legal name of beneficial
                                      owner of Registrable Securities)

                                      By _______________________________________
                                         Name:
                                         Title:

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON
OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY AT:

                    Pogo Producing Company
                    5 Greenway Plaza, Suite 2700
                    Houston, Texas 77046-0504
                    Attention: Corporate Secretary
                    (713) 297-5017

                                      A-6
<PAGE>

                                                                       Exhibit B

                  [FORM OF REPRESENTATION LETTER TO TRANSFER
                         NOTES TO UNRESTRICTED CUSIP]

                                     [DATE]

Pogo Producing Company
5 Greenway Plaza, Suite 2700
Houston, Texas  77046-0504
(713) 297-4970 (fax)
Attention:  Gerald Morton

State Street Bank and Trust Company, as Trustee
Goodwin Square
225 Asylum Street, 23rd Floor
Hartford, Connecticut 06103
(860) 244-1897 (fax)
Attention: Phillip Kane

     Re:  Pogo Producing Company 8 1/4% Senior Subordinated Notes due 2011
          ----------------------------------------------------------------

Gentlemen:

     We hereby certify that Pogo Producing Company (the "Company") and to State
Street Bank and Trust Company, as Trustee, that [NAME OF SELLER] (the "Seller")
sold $[AMOUNT SOLD] of the Company's 8 1/4% Series A Senior Subordinated Notes
due 2011 (the "Notes") held on behalf of the Seller in the name of [DTC
NOMINEE'S NAME] with The Depository Trust Company as a portion of the
unregistered Global Security and representing a portion of the Notes (CUSIP No.
730448 AN 7). The Notes sold by the undersigned were sold pursuant to a
prospectus for the Notes dated [DATE OF PROSPECTUS, AS SUPPLEMENTED] (the
"Prospectus"). In connection with the sale of the Notes, Seller hereby
represents and warrants to the Company and the Trustee that: (i) such Notes were
sold in accordance with the section of the Prospectus entitled "Plan of
Distribution", (ii) a copy of the Prospectus was delivered in connection with
the sale, (iii) to Seller's knowledge, the purchaser was not an Affiliate (as
such term is defined in the Securities Act of 1933, as amended (the "Act")) of
the Company, and (iv) that all of the provisions of the Act were complied with
in connection with such sale. The amount of Notes sold, and their trade date(s)
is a follows:

            Trade Date                        Amount of Notes Sold
            ----------                        --------------------

       [INSERT TRADE DATE]                        [AMOUNT SOLD]

     The undersigned represents and warrants that he is a duly authorized
officer or representative of Seller, with the full power and authority to make
the representations and statements contained herein, and that such
representations and statements are for the benefit of the Company and Trustee
and may be relied upon by them in effecting the transfer of the amount of Notes
sold from the Global Security representing the Notes (CUSIP No. 730448 AN 7) to
the Global Security representing the 8 1/4% Series B Senior Subordinated Notes
due 2011 of the Company (CUSIP No. 730448 __ _).

                                      [SELLER]

                                      By ______________________________________
                                         Name:
                                         Title:SERIES A CONVERTIBLE  PREFERRED STOCK PURCHASE AGREEMENT (this "Agreement")
is  made  as of  April  19,  2001,  by and  between  ECCS,  Inc.,  a New  Jersey
corporation  (the  "Company"),  and the  investors  set forth on the Schedule of
Purchasers attached hereto as Exhibit A (the "Purchasers").

     The parties hereby agree as follows:

                                    ARTICLE I
                          PURCHASE AND SALE OF SERIES A
                           CONVERTIBLE PREFERRED STOCK

     SECTION 1.01.  Sale and Issuance of Series A Convertible  Preferred  Stock.
                    ------------------------------------------------------------

          (a) The Company has file with the  Secretary  of State of the State of
New  Jersey  on  March  8,  2001,  an  amendment  to the  Restated  and  Amended
Certificate of  Incorporation  (the "March 8,2001  Amendment") and shall file an
additional  amendment  with the Secretary of State of the State of New Jersey on
or before the Closing (the March 8, 2001 Amendment,  together with the amendment
to be filed, the "Restated  Certificate").  The Restated Certificate is attached
hereto as Exhibit B.

          (b)  Subject  to the  terms  and  conditions  of this  Agreement,  the
Purchasers  agree to purchase at the Closing and the Company  agrees to sell and
issue to the Purchasers at the Closing 250,000 shares of preferred stock,  $0.01
par value,  designated as 6% Cumulative  Convertible  Preferred Stock,  Series A
("Series A Convertible  Preferred  Stock" or the "Shares") as set forth opposite
each  Purchaser's  name on  Exhibit  A hereto at a  purchase  price of $2.00 per
share.

     SECTION 1.02.  Closing.  (a) The purchase and sale of 300,000  Shares shall
                    -------
take place at the offices of Cravath,  Swaine & Moore,  825 Eighth  Avenue,  New
York, New York, at 10:00 a.m. on April 19, 2001, or at such other time and place
as the  Company and the  Purchasers  mutually  agree upon,  orally or in writing
(which time and place are  designated  as the  "Closing").  At the Closing,  the
Company  also shall  deliver to the  Purchasers  certificates  representing  the
Shares  against  delivery by the  Purchasers of the purchase  price  therefor by
certified  or official  bank check  payable to the Company in New York  Clearing
House  (next-day)  funds or by wire transfer of Federal  (same-day) funds to the
account specified by the Company.

                               PURCHASE AGREEMENT

                                   ARTICLE II
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company hereby represents and warrants to each Purchaser that:

     SECTION 2.01.  Organization, Good Standing and Qualification.   The Company
is a corporation duly organized, validly existing and in good standing under the
laws of the  State of New  Jersey  and has all  requisite  corporate  power  and
authority  to carry on its  business  as now  conducted  and as  proposed  to be
conducted.  The Company is duly  qualified  to transact  business

<PAGE>

and is in good standing in each  jurisdiction in which the failure so to qualify
would have a material adverse effect on its business or properties.

     SECTION 2.02.  Capitalization.   The  authorized  capital  of  the  Company
                    --------------
consists, or will consist, immediately prior to the Closing, of:

          (a) Preferred  Stock.  3,000,000  shares of Preferred  Stock, of which
2,125,000 shares have been designated Series A Convertible  Preferred Stock. The
rights,  privileges and preferences of the Series A Convertible  Preferred Stock
are as stated in the Restated Certificate.

          (b)  Common  Stock.  50,000,000  shares  of  Common  Stock,  of  which
11,522,971 shares are issued and outstanding.

          (c) Options and Warrants.  Except for the  conversion  privileges  and
preemptive rights of the Series A Convertible Preferred Stock issued pursuant to
this  Agreement,  and shares of Common Stock  subject to the (i) options  issued
under the 1989 Stock Option Plan, (ii) options issued or issuable under the 1996
Stock  Plan,  (iii)  options  issued or  issuable  under  the 1996  Non-Employee
Directors Stock Option Plan, (iv) 298,848 Common Stock purchase warrants granted
to Michael E. Faherty on December 6, 1994,  (v) shares of Common Stock  issuable
under the 1995 Employee  Stock  Purchase  Plan,  and (vi) options to purchase an
additional  508,490  shares of Common  Stock  issued to  certain  employees  and
consultants of the Company outside of any option plan,  there are no outstanding
options,  warrants,  rights  (including  conversion  or  preemptive  rights)  or
agreements,  orally or in  writing,  for the  purchase or  acquisition  from the
Company of any shares of its  capital  stock (the  rights and options in clauses
(i) through (vi) above being collectively  called the "Existing Equity Rights").
There  previously  exist no rights of first refusal or similar rights in respect
of shares of the Company's  capital stock issued or sold by the Company,  except
as described above. As of December 31, 2000, the Company has reserved  2,338,966
shares of Common Stock for future issuance to officers, directors, employees and
consultants  pursuant to equity  incentive  plans and agreements  adopted by the
Company.

     SECTION 2.03.  Subsidiaries.   Each subsidiary of the company (individually
                    ------------
a  "Subsidiary"  and  collectively  the  "Subsidiaries")  is  inactive,  and the
Subsidiaries  do not, either  individually  or in the aggregate,  own or lease a
material  portion  of the  Company's  property  or assets or  conduct a material
portion of the Company's  business;  and each of the  Subsidiaries has been duly
incorporated and is validly existing as a corporation in good standing under the
laws of its respective  jurisdiction of  incorporation,  is duly qualified to do
business and is in good standing as a foreign  corporation in each  jurisdiction
in which its  respective  ownership  or lease or  property or the conduct of its
respective  business requires such qualification and has all power and authority
necessary to own or hold its  respective  properties and to conduct the business
in which it is engaged.

     SECTION 2.04.  Authorization.   All  corporate  action  on the  part of the
                    -------------
Company,   its   officers,   directors  and   shareholders   necessary  for  the
authorization,  execution and delivery of this Agreement, the performance of all
obligations  of the  Company  hereunder  and  the  authorization,  issuance  and
delivery  of the  Shares  and the  Common  Stock  issuable  upon the  payment of
dividends  on the  Shares or the  redemption  or the  conversion  of the  Shares
(collectively with the

                                       2
<PAGE>

Shares,  the "Securities") has been taken or will be taken prior to the Closing,
and the Agreement,  when executed and delivered by the Company, shall constitute
a valid and legally binding obligation of the Company,  enforceable  against the
Company in accordance with its terms.

     SECTION 2.05.  Valid Issuance of Securities.   The Shares being  issued  to
                    ----------------------------
the Purchasers hereunder, when issued, sold and delivered in accordance with the
terms hereof for the consideration  expressed  herein,  will be duly and validly
issued,  fully paid and nonassessable and free of restrictions on transfer other
than  restrictions  on transfer under this  Agreement and  applicable  state and
federal  securities laws and not subject to any preemptive rights of others. The
issued and outstanding shares of the Company's Common Stock are duly and validly
issued,  fully paid and  nonassessable  and have been issued in compliance  with
applicable  state and federal  securities laws and are approved for quotation on
the Nasdaq National Market under the symbol "ECCS",  subject to events described
on Schedule 2.05.  Based in part upon the  representations  of the Purchasers in
this Agreement and subject to the  provisions of Section 2.06 below,  the Shares
will be issued in compliance  with all applicable  federal and state  securities
laws.  The Common Stock issuable upon the redemption or conversion of the Shares
has been duly and validly reserved for issuance, and upon issuance in accordance
with the terms of the  Restated  Certificate  will be duly and  validly  issued,
fully paid and  nonassessable  and free of  restrictions  on transfer other than
restrictions  on transfer under this Agreement and applicable  state and federal
securities laws and will be issued in compliance with all applicable federal and
state securities laws.

     SECTION 2.06.  Governmental Consents.    No  consent,  approval,  order  or
                    ---------------------
authorization of, or registration,  qualification,  designation,  declaration or
filing with, any federal,  state or local governmental  authority on the part of
the Company is required in connection with the  consummation of the transactions
contemplated by this Agreement.

     SECTION 2.07.  Litigation.   Except as described in the SEC  Documents  (as
                    ----------
defined in Section 2.14), there is no action, suit,  proceeding or investigation
pending or, to the Company's knowledge, currently threatened against the Company
that  questions  the  validity of this  Agreement or the right of the Company to
enter into it, or to consummate the transactions  contemplated  hereby,  or that
would reasonably be expected to result, either individually or in the aggregate,
in any material adverse change in the business,  assets,  condition,  affairs or
prospects of the Company, financially or otherwise, or any change in the current
equity  ownership  of the  Company,  nor is the Company  aware that there is any
basis for the foregoing. The foregoing includes, without limitation, any actions
pending or threatened (or any basis therefor known to the Company) involving the
prior employment of any of the Company's employees, their use in connection with
the Company's business of any information or techniques allegedly proprietary to
any of their former  employers,  or their  obligations under any agreements with
prior employers.  The Company is not a party or subject to the provisions of any
order, writ, injunction, judgment or decree of any court or government agency or
instrumentality.

     SECTION 2.08.  Employee  Agreement.   Each  current or former  employee and
                    -------------------
officer of the Company with access to the Company's  confidential or proprietary
information has executed an agreement with the Company regarding confidentiality
and  proprietary  information,  the forms of which have been included in the SEC
Documents.

                                       3
<PAGE>

     SECTION 2.09.  Patents and  Trademarks.   The SEC  Documents  disclose  all
                    -----------------------
material information pertaining to all patents,  registered trademarks and trade
names, and pending applications  therefor,  owned by the Company,  except as set
forth on Schedule  2.09(a).  The Company has title and ownership of all patents,
trademarks,  service marks, trade names, copyrights, trade secrets, information,
proprietary  rights  and  process  material  to its  business  as now  conducted
without,  to  the  best  of  the  Company's  knowledge,  any  conflict  with  or
infringement  of the rights of others.  Except as included in the SEC  Documents
and as set forth on  Schedule  2.09(b),  the Company is not party to and has not
granted  any  options,  licenses,  or  agreements  of any kind  relating  to the
foregoing,  nor is the Company  bound by or a party to any options,  licenses or
agreements of any kind with respect to the patents,  trademarks,  service marks,
trade names,  copyrights,  trade  secrets,  licenses,  information,  proprietary
rights or  processes  of any  other  person  or  entity.  Except as set forth on
schedule 2.09(c), the Company has not received any communications  alleging that
the Company has violated  or, by  conducting  its  business as  proposed,  would
violate any of the patents,  trademarks,  service marks, trade names, copyrights
or trade secrets or other  proprietary  rights of any other person or entity. To
the Company's  knowledge,  none of its employees is obligated under any contract
(including licenses, covenants or commitments of any nature) or other agreement,
or  subject  to any  judgment,  decree or order of any  court or  administrative
agency,  that would interfere in any material respect with the use of his or her
best efforts to promote the interests of the Company or that would conflict with
the Company's  business as proposed to be  conducted.  Neither the execution nor
delivery of this Agreement, nor the carrying on of the Company's business by the
employees of the Company, will conflict with or result in a breach of the terms,
conditions  or  provisions  of, or  constitute a default  under,  any  contract,
covenant or instrument under which any of such employees is now obligated.

     SECTION 2.10.  Compliance with Other Instruments.   The Company is not, nor
                    ---------------------------------
will it be on the date of Closing, in violation or default in any respect of any
provisions of its Restated  Certificate or By-laws or, in any material  respect,
of any instrument,  judgment,  order,  writ, decree or contract to which it is a
party or by which it is bound or of any  provision of federal or state  statute,
rule or  regulation  applicable  to the  Company.  The  execution,  delivery and
performance  of  this  Agreement  and  the   consummation  of  the  transactions
contemplated hereby will not result in any such violation or be in conflict with
or constitute,  with or without the passage of time and giving of notice, either
a default under any such provision, instrument, judgment, order, writ, decree or
contract or an event which results in the creation of any material lien,  charge
or encumbrance upon any assets of the Company.

     SECTION 2.11.  Agreements; Action.
                    -------------------

          (a) Since September 30, 2000, except as described in the SEC Documents
or as set forth on Schedule  2.11(a),  there have been no  material  agreements,
understandings  or  proposed  transactions  between  the  Company and any of its
officers,  directors,   affiliates,  or  any  affiliate  thereof;  and  no  such
agreement,  understanding  or  transaction  entered into prior to September  30,
2000,  will have any  material  effect  on the  Company's  business,  prospects,
financial condition or results of operations.

          (b)  Except  as  included  in the SEC  Documents  and as set  forth on
Schedule  2.11(b),  there  are  no  agreements,   understandings,   instruments,
contracts or proposed transactions

                                       4
<PAGE>

to which  the  Company  is a party or by which  it is  bound  that  involve  (i)
obligations  (contingent  or otherwise) of, or payments to the Company in excess
of,  $50,000,  other than in the ordinary course of the Company's  business,  or
(ii) the license of any patent,  copyright,  trade  secret or other  proprietary
right to or from the Company other than in the ordinary  course of the Company's
business.

          (c) Since September 30, 2000, the Company has not (i) declared or paid
any dividends,  or authorized or made any  distribution  upon or with respect to
any class or series of its capital  stock,  (ii) except as  disclosed in the SEC
Documents,  incurred any  indebtedness  for money borrowed or incurred any other
liabilities  individually  in excess of $50,000 or in excess of  $200,000 in the
aggregate,  (iii) made any loans, or advances to any person, other than ordinary
advances for travel expenses,  or (iv) except as set forth on Schedule  2.11(c),
other than in the ordinary course of business and consistent with past practice,
sold, exchanged or otherwise disposed of any of its assets or rights.

          (d) The  Company  is not a party to and is not bound by any  contract,
agreement  or  instrument,  or subject  to any  restriction  under its  Restated
Certificate or Bylaws,  that materially and adversely  affects its business,  as
now conducted, its properties or its financial condition.

     SECTION 2.12.  Registration  Rights.  Except as  contemplated  herein,  the
                    --------------------
Company has not  granted or agreed to grant any  registration rights,  including
piggyback rights, to any person or entity.

     SECTION 2.13.  Title to  Property and  Assets.     Except as  set forth  on
                    ------------------------------
Schedule  2.13,  the Company  owns its property and assets free and clear of all
mortgages,  liens,  loans and  encumbrances,  except such encumbrances and liens
which arise in the ordinary course of business and do not materially  impair the
Company's  ownership  or use of such  property  or assets.  With  respect to the
property and assets it leases, the Company is in compliance with such leases and
holds a valid leasehold interest free of any liens, claims or encumbrances.

     SECTION 2.14.  SEC Documents, Financial Statements.    Since  September 30,
                    -----------------------------------
2000, the Company has filed all reports, schedules, forms, statements,  exhibits
and other documents  required to be filed by it with the Securities and Exchange
Commission  (the  "Commission")  pursuant to the reporting  requirements  of the
Securities Exchange Act of 1934 (the "Exchange Act") (all of the foregoing being
referred to herein as the "SEC  Documents").  As of their respective  dates, the
SEC Documents complied in all material respects with the applicable requirements
of the Exchange Act and the rules and regulations of the Commission  promulgated
thereunder applicable to such SEC Documents,  and, as of their respective dates,
none of the SEC Documents taken as a whole (when read together with all exhibits
included therein and financial  statement schedules thereto and documents (other
than exhibits) incorporated by reference therein) contained any untrue statement
of a material  fact or omitted to state a material  fact  required  to be stated
therein or necessary in order to make the  statements  therein,  in light of the
circumstances under which they were made, not misleading. As of their respective
dates,  the financial  statements  of the Company  included in the SEC Documents
complied  as to  form  in  all  material  respects  with  applicable  accounting
requirements  and the published  rules and  regulations of the  Commission  with
respect thereto. Such financial statements have been

                                       5
<PAGE>

prepared in accordance with generally accepted accounting  principles applied on
a consistent  basis during the periods  involved (except (i) as may be otherwise
indicated in such financial  statements or the notes thereto or (ii) in the case
of unaudited interim statements, to the extent they may not include footnotes or
may be  condensed  or summary  statements)  and fairly  present in all  material
respects the  financial  position of the Company as of the dates thereof and the
results of its operations and cash flows for the periods then ended (subject, in
the case of unaudited statements, to normal year-end audit adjustment).

     SECTION 2.15.  Employee  Benefit Plans. The Company is in compliance in all
                    -----------------------
material  respects  with all  presently  applicable  provisions  of the Employee
Retirement  Income  Security Act of 1974, as amended,  including the regulations
and published  interpretations  thereunder ("ERISA");  no "reportable event" (as
defined in ERISA) has occurred with respect to any "pension plan" (as defined in
ERISA) for which the  Company  would have any  liability;  the  Company  has not
incurred and does not expect to incur liability under (i) Title IV of ERISA with
respect to  termination  of, or  withdrawal  from,  any  "pension  plan" or (ii)
Section 412 or 4971 of the Internal Revenue Code of 1986, as amended,  including
the regulations and published interpretations  thereunder (the "Code"); and each
"pension  plan" for which the Company would have any liability  that intended to
be qualified  under  Section  401(a) of the Code is so qualified in all material
respects and nothing has occurred, whether by action or by failure to act, which
would cause the loss of such qualification.

     SECTION 2.16.  Tax  Returns  and  Payments.  The  Company has filed all tax
                    ---------------------------
returns and reports as required by law.  These  returns and reports are true and
correct  in all  material  respects.  The  Company  has paid all taxes and other
assessments due.

     SECTION 2.17.  Insurance. The Company has in full force and effect fire and
                    ---------
casualty  insurance  policies,  with  extended  coverage,  sufficient  in amount
(subject to reasonable deductibles) to allow it to replace any of its properties
that might be damaged or destroyed.

     SECTION 2.18.  Labor Agreements and Actions. The Company is not bound by or
                    ----------------------------
subject to (and none of its assets or  properties is bound by or subject to) any
written or oral,  express or implied,  contract,  commitment or arrangement with
any labor union,  and no labor union has  requested  or, to the knowledge of the
Company, has sought to represent any of the employees, representatives or agents
of the Company.  There is no strike or other labor dispute involving the Company
pending,  or to the  knowledge  of the  Company  threatened,  which could have a
material  adverse  effect  on  the  assets,  properties,   financial  condition,
operating  results or business of the  Company  (as such  business is  presently
conducted  and as it is proposed to be  conducted),  nor is the Company aware of
any labor  organization  activity  involving its  employees.  The Company is not
aware that any officer or key  employee  intends to terminate  their  employment
with the Company, nor does the Company have a present intention to terminate the
employment  of any of the  foregoing.  The Company has  complied in all material
respects with all applicable state and federal equal employment opportunity laws
and with other laws related to employment.

     SECTION 2.19.  Offering.   Subject  to  the  truth  and  accuracy  of  each
                    --------
Purchaser's  representations  set forth in this Agreement,  the offer,  sale and
issuance of the Shares as  contemplated  by this  Agreement  are exempt from the
registration requirements of the Securities

                                       6
<PAGE>

Act of 1933 (the  "Securities  Act"), and neither the Company nor any authorized
agent acting on its behalf will take any action  hereafter  that would cause the
loss of such exemption.

     SECTION 2.20.  Permits.   The Company has all franchises, permits, licenses
                    -------
and any similar authority necessary for the conduct of its business as now being
conducted by it, the lack of which could  materially  and  adversely  affect the
business,  properties,  prospects  or  financial  condition  of the  Company and
believes  that it can  obtain,  without  undue  burden or  expense,  any similar
authority  for the  conduct of its  business  as planned  to be  conducted.  The
Company is not in default in any material  respect under any of such franchises,
permits, licenses or other similar authority.

                                  ARTICLE III
                REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

     Each Purchaser hereby severally and not jointly  represents and warrants to
the Company that:

     SECTION 3.01.  Authorization. It has full power and authority to enter into
                    -------------
this  Agreement and this  Agreement  constitutes  its valid and legally  binding
obligation, enforceable against such Purchaser in accordance with its terms.

     SECTION 3.02.  Purchase  Entirely for Own Account.   The  Securities  to be
                    ----------------------------------
acquired by it will be acquired for  investment  for its own  account,  not as a
nominee or agent,  and not with a view to the resale or distribution of any part
thereof, and it has no present intention of selling,  granting any participation
in, or otherwise distributing the same. It does not presently have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to any of the
Securities.  It  understands  that this sale of the Securities has not been, and
will not be,  registered  under  the  Securities  Act by  reason  of a  specific
exemption from the  registration  provisions of the Securities Act which depends
upon, among other things,  the bona fide nature of its investment intent and the
accuracy of its  representations  as expressed herein. It represents that it has
not been formed for the specific purpose of acquiring the Securities.

     SECTION 3.03.  Disclosure  of  Information.     It  has  received  all  the
                    ---------------------------
information  it considers  necessary  or  appropriate  for  deciding  whether to
acquire the Securities.  It further represents that it has had an opportunity to
ask  questions  and receive  answers  from the Company  regarding  the terms and
conditions of the offering of the Securities.  The foregoing,  however, does not
limit or modify the  representations and warranties of the Company in Article II
of this Agreement or the right of such Purchaser to rely thereon.

     SECTION 3.04.  Investment  Experience.   It has  substantial  experience in
                    ----------------------
evaluating and investing in private placement  transactions so that Purchaser is
capable of evaluating the merits and risks of its investment in the Company.  By
reason of its  business or  financial  experience  or the  business or financial
experience of its professional  advisors who are  unaffiliated  with and who are
not compensated by the Company or any affiliate or selling agent of the Company,
directly or  indirectly,  it has the  capacity to protect its own  interests  in
connection with the purchase of the Securities hereunder.

                                       7
<PAGE>

     SECTION 3.05.  Restricted Securities.    It understands that the Securities
                    ---------------------
are characterized as "restricted  securities" under the federal  securities laws
inasmuch  as they are being  acquired  from the  Company  in a  transaction  not
involving a public offering and that under such laws and applicable  regulations
such Securities may be resold without registration under the Securities Act only
in certain  limited  circumstances.  In this respect,  it represents  that it is
familiar with Rule 144  promulgated  under the  Securities  Act, as presently in
effect, and understands the resale limitations  imposed thereby and otherwise by
the Securities Act.

     SECTION 3.06.  Further  Limitations  on  Disposition.  Without  in any  way
                    -------------------------------------
limiting the  representations  set forth above, each Purchaser severally and not
jointly  further agrees not to make any disposition of all or any portion of the
Securities unless and until:

          (a) There is in effect a registration  statement  under the Securities
Act  covering  such  proposed  disposition  and  such  disposition  is  made  in
accordance  with such  registration  statements or (i) such Purchaser shall have
notified the Company of the proposed  disposition  and shall have  furnished the
Company with a detailed statement of the circumstances  surrounding the proposed
disposition,  and (ii) if reasonably  requested by the Company,  such  Purchaser
shall  have  furnished  the  Company  with an  opinion  of  counsel,  reasonably
satisfactory to the Company, that such disposition will not require registration
under  the  Securities  Act.  It is agreed  that the  Company  will not  require
opinions of counsel for transactions made pursuant to Rule 144 except in unusual
circumstances;  provided, however, each Purchaser acknowledges that the transfer
agent for the Common Stock may require  opinions of counsel for any transactions
made pursuant to Rule 144.

          (b)  Notwithstanding  the  provisions of paragraph (a) above,  no such
registration  statement or opinion of counsel  shall be necessary for a transfer
by such Purchaser to a constituent shareholder or constituent partner (including
any  constituent  of a  constituent)  of such  Purchaser,  if the  transferee or
transferees  agree in  writing  to be  subject  to the terms  hereof to the same
extent as if they were the Purchaser hereunder.

     SECTION 3.07.  Legends.  It is  understood  that  the  Securities,  and any
                    -------
securities issued in respect thereof or exchange  therefor,  may bear one or all
of the following legends:

          (a) "THESE  SECURITIES HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES
ACT OF 1933. THEY MAY NOT BE SOLD,  OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
UNDER SUCH ACT OR AN OPINION OF COUNSEL  REASONABLY  SATISFACTORY TO THE COMPANY
THAT SUCH  REGISTRATION  IS NOT REQUIRED OR UNLESS SOLD  PURSUANT TO RULE 144 OF
SUCH ACT."

          (b) Any  legend  required  by the Blue  Sky  laws of any  state to the
extent such laws are applicable to the shares  represented by the certificate so
legended.

     SECTION 3.08.  Accredited  Investor.   It  is  an  accredited  investor  as
                    --------------------
defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

                                       8
<PAGE>

                                   ARTICLE IV
                CONDITIONS OF PURCHASERS, OBLIGATIONS AT CLOSING

     The  obligations  of each  Purchaser to the Company under this Agreement at
the Closing are subject to the fulfillment,  on or before such Closing,  of each
of the following conditions:

     SECTION 4.01.  Representations  and  Warranties.  The  representations  and
                    --------------------------------
warranties of the Company contained in Article II shall be true on and as of the
Closing with the same effect as though such  representations  and warranties had
been made on and as of such date.

     SECTION 4.02.  Performance.  The Company shall have  performed and complied
                    -----------
with all agreements, obligations and conditions contained in this Agreement that
are required to be performed or complied with by it on or before such Closing.

     SECTION 4.03.  Certificates  of Officers.  The Company shall deliver to the
                    -------------------------
Purchasers  at  such  Closing  certificates  of  the  officers  of  the  Company
certifying  that the  conditions  specified in Sections  4.01 and 4.02 have been
fulfilled and as to such other matters as the Purchaser may reasonably request.

     SECTION 4.04.  Proceedings   and  Documents.    All  corporate  and   other
                    ----------------------------
proceedings in connection with the transactions  contemplated at the Closing and
all documents  incident  thereto shall be  reasonably  satisfactory  in form and
substance to each Purchaser,  and they shall have received all such  counterpart
original and certified or other copies of such  documents as they may reasonably
request.

     SECTION 4.05.  Opinion of Counsel.  Each Purchaser shall have received from
                    ------------------
Hale & Dorr LLP, counsel for the Company,  an opinion,  dated as of the Closing,
in the form attached hereto as Exhibit C.

     SECTION 4.06.  No Material Adverse Change.  Except as set forth on Schedule
                    --------------------------
4.06,  the Company shall not have  sustained  since  September 30, 2000, (i) any
loss or  interference  with its business  from fire,  explosion,  flood or other
calamity,  whether or not  covered by  insurance,  or from any labor  dispute or
court or governmental action, order or decree, and (ii) other than the Amendment
to the Restated  Certificate  filed on March 8, 2001,  there shall not have been
any change in the capital stock or long-term  debt of the Company or any change,
or any development involving a prospective change, in or affecting the condition
(financial  or  other),  earnings,   general  affairs,   business,   operations,
properties, management, stockholders' equity, results of operations or prospects
of the  Company,  taken  as a whole,  the  effect  of  which,  in any such  case
described in clause (i) or (ii), is in the Purchasers' sole judgment so material
and  adverse as to make it  impracticable  or  inadvisable  to proceed  with the
purchase of the Shares.

     SECTION 4.07.  NASDAQ Listing.    The Common Stock of the  Company shall be
                    --------------
duly authorized for listing on the Nasdaq  National  Market  ("NNM"),  except as
disclosed on Schedule 4.07.

                                       9
<PAGE>

                                   ARTICLE V
               CONDITIONS OF THE COMPANY'S OBLIGATIONS AT CLOSING

     The  obligations of the Company to each Purchaser  under this Agreement are
subject to the fulfillment,  on or before the Closing,  of each of the following
conditions:

     SECTION 5.01.  Representations  and  Warranties.  The  representations  and
                    --------------------------------
warranties of each Purchaser contained in Article III shall be true on and as of
the Closing with the same effect as though such  representations  and warranties
had been made on and as of such date.

                                   ARTICLE VI
                            COVENANTS OF THE COMPANY

     SECTION 6.01.  Voting  Rights.   The  holders of record of Shares  shall be
                    --------------
entitled to vote on all matters that the holders of the  Company's  Common Stock
are entitled to vote upon. In exercising the voting rights set forth above, each
share of Series A  Convertible  Preferred  Stock shall be entitled to vote on an
as-converted basis with the holders of the Company's Common Stock.

     In addition  to the voting  rights set forth  above,  so long as any Shares
shall remain outstanding, the Company agrees that without the vote of holders of
at least 66-2/3% of the then  outstanding  Shares at a meeting of the holders of
the Shares  called for such  purpose,  the Company will not (A) amend,  alter or
repeal any provision hereof or of the Restated Certificate or By-laws;  provided
that any such amendment that changes the dividend  payable on or the liquidation
preference  of the  Series A  Convertible  Preferred  Stock  shall  require  the
affirmative vote at a meeting of holders of Series A Convertible Preferred Stock
called for such purpose,  or written consent,  of the holders of at least 80% of
the then  outstanding  Shares;  (B) create any class or classes of stock ranking
equal  or prior  to the  Series  A  Convertible  Preferred  Stock  either  as to
dividends or upon liquidation,  dissolution or winding up or increase the number
of authorized  shares of any class or classes of stock ranking equal or prior to
the  Series  A  Convertible  Preferred  Stock  either  as to  dividends  or upon
liquidation,  dissolution or winding up; provided that the holders of the Series
A Convertible Preferred Stock shall not be entitled to affirmatively vote at any
meeting of the  stockholders of the Company or by written consent on any matters
relating to the  issuance by the  Company of any  additional  shares of Series A
Convertible  Preferred Stock to be issued within 90 days of the date of Closing;
(C) redeem or  otherwise  acquire any shares of its  capital  stock or issue any
capital stock or any option, warrant or right relating thereto or any securities
convertible  into or  exchangeable  for any  shares  of  capital  stock  (except
pursuant to the Existing Equity Rights); (D) cancel any material indebtedness or
waive any claims or rights of substantial value; (E) permit, allow or suffer any
of  its  assets  to  be  subject  to  any  mortgage,  lien,  security  interest,
encumbrance,  easement, covenant, right-of-way or other similar restriction of a
material nature other than in the ordinary course of business; or (F) effect any
sale,  lease,  assignment,  transfer or other conveyance of all or substantially
all  of  the  assets  of  the  Company  or  any  of  its  subsidiaries,  or  any
consolidation or merger involving the Company or any of its subsidiaries, or any
reclassification  or other change of any stock, or any  recapitalization  of the
Company. In exercising the voting rights set forth in this paragraph, each share
of Series A Convertible Preferred Stock entitled to vote shall have one

                                       10
<PAGE>

vote per share,  except that when any other series of preferred stock shall have
the  right to vote with the  Series A  Convertible  Preferred  Stock as a single
class on any matter,  then the Series A Convertible  Preferred  Stock shall have
with respect to such  matters one vote per $1,000 (or  fraction  thereof) of the
aggregate Liquidation Preference.

     Except as otherwise  required by applicable law or as set forth herein, the
shares of Series A  Convertible  Preferred  Stock  shall not have any  relative,
participating,  optional or other  special  voting  rights and  powers,  and the
consent  of the  holders  thereof  shall not be  required  for the taking of any
corporate action.

                                  ARTICLE VII
                               REGISTRATION RIGHTS

     SECTION 7.01.  (a) Definitions.  As used in this Article VII, the following
                        -----------
capitalized defined terms shall have the following meanings.

     "Affiliate"  of or a person  "affiliated"  with, a specified  person,  is a
person that directly or indirectly through one or more intermediaries,  controls
or is controlled by, or is under common control with, the person specified.

     "Damages  Payment Date" means each of the quarterly  dividend payment dates
set forth in the  Certificate of Amendment to the Restated  Certificate of ECCS,
Inc.  (attached  hereto as Exhibit  B)  setting  forth the terms of the Series A
Convertible Preferred Stock.

     "Effectiveness Target Date" shall mean 180 days after the Closing.

     "Holders"  means the  Purchasers  and any  persons or  entities to whom the
rights granted under this Article VII are transferred by any  Purchasers,  their
successors or assigns.

     "Holder  Affiliate"  means any Holder who is an Affiliate or any Holder who
reasonably believes that they are deemed to be an Affiliate of the Company.

     "Incorporated  Documents"  means  filings  made  by the  Company  with  the
Commission pursuant to Section 13, 14 or 15 of the Exchange Act and incorporated
by reference in the Shelf Registration Statement.

     "Majority  Holders"  means the  Holders of a majority  of the shares of the
Series A Convertible Preferred Stock registered (or if no shares are registered,
entitled  to be  registered)  under a Shelf  Registration  Statement;  provided,
however,  that  Holders  of Common  Stock  issued  in  respect  of the  Series A
Convertible  Preferred  Stock  shall be deemed to be  holders  of the  number of
shares of Series A Convertible Preferred Stock which, when converted, would have
resulted in such number of shares of Common Stock.

     "Preferred Stock Liquidated Damages" shall have the meaning as set forth in
Section 7.02(a).

     "Prospectus"  means  the  prospectus  included  in any  Shelf  Registration
Statement, as amended or supplemented by any prospectus supplement, with respect
to the terms of the  offering  of any  portion  of the  Shares  or Common  Stock
issuable upon conversion thereof covered by such Shelf  Registration  Statement,
and all amendments and supplements to the Prospectus,  including  post-effective
amendments.

                                       11
<PAGE>

     "Registration  Default"  shall  have the  meaning  as set forth in  Section
7.01(d).

     "Registrable Securities" shall mean (i) the shares of Common Stock issuable
or issued upon the  conversion or  redemption  of the Shares,  (ii) Common Stock
issued or issuable  upon the  conversion  or  redemption of Shares issued in the
form of a dividend on the Shares and (iii) the shares of Common  Stock  issuable
or issued upon the  conversion or redemption of additional  Series A Convertible
Preferred Stock issued as Preferred Stock Liquidated Damages pursuant to Section
7.02(a).

     A "Shelf  Registration  Period"  shall  have the  meaning  as set  forth in
Section 7.01(b).

     "Shelf Registration  Statement" means a "shelf"  registration  statement of
the Company  pursuant to the  provisions of Section  7.01(b) hereof which covers
all of the Registrable  Securities,  on an appropriate form under Rule 415 under
the  Securities  Act or any similar rule that may be adopted by the  Commission,
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.

          (b) Shelf Registration Statement.  (a) The Company shall use its  best
              ----------------------------
efforts to cause to be filed as soon as practicable  after the Closing and shall
cause to be declared  effective  under the Securities Act no later than 180 days
following the Closing (the  "Effectiveness  Target Date"), 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 such Holders and set forth in such Shelf Registration Statement.

          (b)  The  Company   shall  keep  the  Shelf   Registration   Statement
continuously effective in order to permit the Prospectus forming part thereof to
be usable by the Holders  until the later of (i) the second  anniversary  of the
Closing and (ii) such time as (A) such  Registrable  Securities  shall no longer
constitute  restricted  securities for purposes of Rule 144(k) of the Securities
Act or (B) all such Registrable  Securities have been sold pursuant to the Shelf
Registration  Statement  (in any such case,  such period being called the "Shelf
Registration  Period").  The  Company  shall  be  deemed  not to have  used  its
reasonable efforts to keep the Shelf Registration Statement effective during the
requisite period if it voluntarily takes any action that would result in Holders
of Registrable  Securities covered thereby not to be able to offer and sell such
securities during that period,  unless such action is (i) required by applicable
law or (ii) taken pursuant to Section  7.01(c)  hereof,  and, in either case, so
long as the  Company  promptly  thereafter  complies  with the  requirements  of
Section 7.04(i) hereof, if applicable.

          (c) The Company may suspend the use of the  Prospectus for a period of
not to exceed 60 days (or such longer  period as is reasonably  necessary  under
the  circumstances)  in any  calendar  year  for  valid  business  reasons  (not
including  avoidance of the  Company's  obligations  hereunder),  including  the
acquisition  or  divestiture  of assets,  public  filings  with the  Commission,
pending corporate developments and similar events.

          (d) In the event  that (i) the  Shelf  Registration  Statement  is not
declared  effective by the  Commission on or prior to the  Effectiveness  Target
Date, or (ii) the Shelf  Registration  Statement has been declared  effective by
the Commission and such Shelf  Registration  Statement ceases to be effective or
to be usable as contemplated by Section 7.01(b)

                                       12
<PAGE>

(each of (i) and (ii), a "Registration Default") the Holders will be entitled to
the remedies provided for in Section 7.02.

     SECTION 7.02.  Remedies.  (a) The Company and the Purchasers agree that the
                    --------
Holders of Registrable  Securities  shall suffer damages if the Company fails to
fulfill its obligations pursuant to Section 7.01(b) hereof and that it would not
be possible to ascertain the extent of such damages.  Accordingly,  in the event
of a Registration Default under Section 7.01(d)(i) hereof, the Company shall pay
liquidated  damages,  ("Preferred  Stock Liquidated  Damages") to each Holder of
Registrable  Securities  at a rate of 5% of the  Liquidation  Preference  of the
Shares constituting such Registrable Securities, in cash or additional shares of
Series A Convertible  Preferred  Stock, at the option of the Company.  Preferred
Stock Liquidated  Damages that are payable under 7.01(d)(i) shall be paid by the
Company  within 30 business  days  following  such  Registration  Default to the
record  holders of Shares that are  Registrable  Securities by mailing checks or
certificates  evidencing additional shares to their registered addresses as they
appear in the Preferred Stock register.  In the event of a Registration  Default
under  Section  7.01(d)(ii)  hereof,  the  Company  shall  pay  Preferred  Stock
Liquidated Damages to each Holder of Registrable  Securities at a rate of 5% per
annum of the Liquidation  Preference of the Shares constituting such Registrable
Securities,  in cash or  additional  shares  of Series A  Convertible  Preferred
Stock,  at the option of the  Company,  which shall  accrue from the date of the
Registration  Default.  Following the cure of such Registration Default relating
to Shares  that are  Registrable  Securities,  the  accrual of  Preferred  Stock
Liquidated  Damages with respect to such Shares that are Registrable  Securities
shall cease. A Registration Default under 7.01(d)(ii) shall be cured on the date
the Shelf  Registration  Statement  is  declared  effective  or becomes  usable.
Preferred  Stock  Liquidated  Damages for a  Registration  Default under Section
7.01(d)(ii)  shall be paid by the  Company to the record  holders of shares that
are  Registrable  Securities on each Damages  Payment Date by mailing  checks or
certificates  evidencing additional Shares to their registered addresses as they
appear in the  Preferred  Stock  register;  provided  that any  Preferred  Stock
Liquidated  Damages  accrued  with  respect  to any  Preferred  Stock or portion
thereof  called for  redemption  on a redemption  date or converted  into Common
Stock on a conversion date prior to the Damages Payment Date, shall, in any such
event,  be paid instead to the Holder that submitted  such  Preferred  Stock for
redemption  date or conversion  date, as the case may be, on such date (promptly
following the conversion date, in the case of conversion of Preferred Stock).

     If the Company shall choose to pay such Preferred Stock Liquidated  Damages
for any  Registration  Defaults  in the form of Series A  Convertible  Preferred
Stock, such shares of additional  Series A Convertible  Preferred Stock shall be
valued at the Liquidation  Preference of the Shares.  Any additional Shares that
are issued as part of the Preferred  Stock  Liquidated  Damages  described above
will  be  included  by the  Company  in the  Shelf  Registration  Statement.  No
fractional  Shares of Series A Convertible  Preferred Stock will be delivered to
the Holders but the Company  will instead pay a cash  adjustment  to each Holder
that would  otherwise  be  entitled  to a fraction  of a Share of such  Series A
Convertible  Stock. All Preferred Stock  Liquidated  Damages with respect to any
shares of Preferred  Stock that are Registrable  Securities,  that remain unpaid
when such Shares cease to be Registrable  Securities or cease to be outstanding,
shall  remain  unpaid  obligations  of the Company  until they have been paid in
full.

                                       13
<PAGE>

          (b)  If  during  the  Shelf   Registration   Period   there  occurs  a
Registration  Default,  and the  Company  proposes  to file on its  behalf or on
behalf  of any of its  security  holders  (other  than  Holders  of  Registrable
Securities) (the "demanding  security  holders") a registration  statement under
the Securities Act on any form (other than a Registration  Statement on Form S-4
or S-8 or any successor  form for  securities to be offered in a transaction  of
the type referred to in Rule 145 under the Securities Act or to employees of the
Company  pursuant to any employee  benefit plan,  respectively)  for the general
registration  of securities to be sold for cash with respect to its Common Stock
or any other class of equity  security  (as  defined in Section  3(a)(11) of the
Exchange Act) of the Company,  it will give written notice to all Holders of the
Registrable  Securities  at least 45 days  before the  initial  filing  with the
Commission  of such  registration  statement,  which  notice shall set forth the
intended  method of disposition  of the securities  proposed to be registered by
the  Company.  The notice  shall offer to include in such  filing the  aggregate
number of shares of Registrable Securities, as such Holders may request.

     Each Holder of any  Registrable  Securities  desiring to have Common  Stock
registered under this Section 7.02(b) shall advise the Company in writing within
30 days after the date of receipt of such offer from the Company,  setting forth
the amount of such Common Stock for which registration is requested. The Company
shall thereupon  include in such filing the number of shares of Common Stock for
which registration is so requested, subject to the following sentence, and shall
use its best efforts to effect  registration  under the  Securities  Act of such
shares.  If a public offering is proposed for the securities being registered by
the Company or such demanding  security  holder and the managing  underwriter of
such public  offering  advises the Company in writing that, in its opinion,  the
distribution  of the Common Stock  requested to be included in the  registration
concurrently  with  the  securities  being  registered  by the  Company  or such
demanding security holder would materially and adversely affect the distribution
of such securities by the Company or such demanding  security  holder,  then the
Company,  if  applicable,  and  all  selling  security  holders  (including,  if
applicable,  the  Holders  and  the  demanding  security  holder  who  initially
requested such registration) shall reduce the amount of securities each intended
to distribute through such offering on a pro rata basis; provided, however, that
the  Company  shall not be  required  to reduce the amount of  securities  to be
distributed on its behalf to less than 50% of the aggregate number of securities
to be registered in such offering.

     SECTION 7.03.  Additional  Registration  Rights.    (a)  If after the Shelf
                    --------------------------------
Registration  Period there remains a Holder of  Registrable  Securities and such
Holder is an Affiliate of the Company or such Holder  reasonably  believes  that
they are deemed to be an Affiliate of the Company (both, a "Holder  Affiliate"),
and the  company  proposes  to file on its  behalf  or on  behalf  of any of its
security holders (other than Holders of Registrable  Securities) (the "demanding
security holders") a registration statement under the Securities Act on any form
(other than a  Registration  Statement on Form S-4 or S-8 or any successor  form
for  securities to be offered in a  transaction  of the type referred to in Rule
145 under the  Securities  Act or to  employees  of the Company  pursuant to any
employee benefit plan,  respectively) for the general registration of securities
to be sold for cash with  respect  to its  Common  Stock or any  other  class of
equity  security  (as defined in Section  3(a)(11) of the  Exchange  Act) of the
Company, it will give written notice to such Holder Affiliate of the Registrable
Securities  at least 45 days before the initial  filing with the  Commission  of
such registration  statement which notice shall set forth the intended method of
disposition  of the  securities  proposed to be registered  by the Company.

                                       14
<PAGE>

The notice shall offer to include in such filing the aggregate  number of shares
of Registrable Securities, as such Holder Affiliate may request.

     Each Holder Affiliate of any Registrable Securities desiring to have Common
Stock  registered  under this  Section  7.03 shall advise the Company in writing
within 30 days after the date of receipt of such offer from the Company, setting
forth the amount of such Common Stock for which  registration is requested.  The
Company  shall  thereupon  include in such filing the number of shares of Common
Stock for which registration is so requested, subject to the following sentence,
and shall use its best efforts to effect  registration  under the Securities Act
of such  shares.  If a public  offering is  proposed  for the  securities  being
registered  by the Company or such  demanding  security  holder and the managing
underwriter of such public offering  advises the Company in writing that, in its
opinion,  the  distribution  of the Common Stock requested to be included in the
registration concurrently with the securities being registered by the Company or
such  demanding  security  holder  would  materially  and  adversely  affect the
distribution  of such  securities  by the  Company  or such  demanding  security
holder,  then the  Company,  if  applicable,  and all selling  security  holders
(including,  if applicable,  the Holder and the demanding  security  holders who
initially  requested  such  registration)  shall reduce the amount of securities
each intended to distribute through such offering on a pro rata basis; provided,
however,  that the  company  shall  not be  required  to  reduce  the  amount of
securities  to be  distributed  on its behalf to less than 50% of the  aggregate
number of securities to be registered in such offering.

          (b) The Holder  Affiliates  of at least a majority of the  Registrable
Securities held by Holder Affiliates that remain  outstanding may make a written
request to the Company after the Shelf  Registration  Period requesting that the
Company  effect  the  registration  of such  Registrable  Securities  under  the
Securities  Act  specifying  the  aggregate  number  of  Shares  of  Registrable
Securities  proposed to be sold by the Holder Affiliates and the intended method
or methods of disposition  thereof.  The Company shall promptly  notify all such
Holder Affiliates in writing of the receipt of such request and each such Holder
Affiliate may elect (by written  notice sent to the Company  within ten business
days from the date of such  Holder  Affiliate's  receipt  of the  aforementioned
notice from the  Company) to have its  Registrable  Securities  included in such
registration  thereof pursuant to this Section 7.03(b).  Thereupon,  the Company
shall,  as  expeditiously  as is  possible,  effect the  registration  under the
Securities  Act of all  shares of Common  Stock  which the  Company  has been so
requested  to  register by such Holder  Affiliates  for sale,  all to the extent
required to permit the  disposition  (in accordance  with the intended method or
methods  thereof,  as  aforesaid) of the Common Stock so  registered;  provided,
however, that (i) at least 25% of the Registrable  Securities held by Affiliates
must be registered pursuant to such demand registration,  (ii) the Company shall
not be  required  to  effect  more than one  registration  of any  Common  Stock
pursuant to this Section 7.03(b),  (iii) a demand registration will not count as
such until it has become effective, and, (a) if the demand registration does not
become  effective  because  a  material  adverse  change  has  occurred,  or  is
reasonably likely to occur, in the condition (financial or otherwise), business,
assets or results of operations of the Company and its  subsidiaries  taken as a
whole  subsequent  to the  date  of  the  written  request  made  by the  Holder
Affiliates or (b) if, after the demand  registration  has become  effective,  an
offering of Registrable Securities pursuant to a registration is interfered with
by any stop order,  injunction,  or other order or requirement of the Commission
or other governmental  agency or court then the demand registration shall not be
deemed to have been effected and will not count as a demand registration, (iv) a
demand registration will not count as such if the

                                       15
<PAGE>

Company offers any shares of stock pursuant to such  registration  in accordance
with the next  sentence  and (v) the Company may delay  filing one  registration
statement  pursuant to this Section  7.03(b) for a period of up to 90 days. If a
demand  registration  was  initiated  pursuant to this  Section  7.03(b) and the
Company  then  wishes  to  offer  shares  of  stock  in  connection   with  such
registration,  then such registration will be considered a registration pursuant
to Section  7.03(a) and the  provisions of Section  7.03(a) and not this Section
7.03(b) shall apply.

     If the  Holder  Affiliates  so  elect,  the  offering  of such  Registrable
Securities  pursuant to such demand registration shall be in the form of a "firm
commitment"  underwritten  offering.  A  majority  in  interest  of  the  Holder
Affiliates  shall have the right to select  the  managing  underwriters  and any
additional  investment  bankers and managers to be used in  connection  with any
offering under this Section 7.03(b),  subject to the Company's  approval,  which
approval shall not be unreasonably withheld.

     SECTION 7.04.  Registration  Procedures.   In  connection  with  any  Shelf
                    ------------------------
Registration Statement, the following provisions shall apply:

          (a) The Company shall furnish to you, prior to the filing thereof with
the Commission,  a copy of any Shelf Registration Statement,  and each amendment
thereof and each  amendment or supplement,  if any, to the  Prospectus  included
therein and shall use its best efforts to reflect in each such document, when so
filed  with  the  Commission,  such  comments  as you  reasonably  may  propose;
provided,  however,  that the  Company  shall be  required  only to  furnish  an
Incorporated  Document to you as promptly as  practicable  following  its filing
with the Commission.

          (b) The Company shall ensure that (i) any Shelf Registration Statement
and any  amendment  thereto  and any  Prospectus  forming  part  thereof and any
amendment  or  supplement  thereto  complies in all material  respects  with the
Securities Act, (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  amendment or supplement to
such Prospectus, does not include an untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements  therein,  in
the light of the circumstances under which they were made, not misleading.

          (c)  (1)  The  Company  shall  advise  you  and the  Holders  and,  if
requested by you or any such Holder, confirm such advice in writing:

               (i) when a Shelf Registration Statement and any amendment thereto
has been filed with the Commission and when the Shelf Registration  Statement or
any post-effective amendment thereto has become effective; and

               (ii)  of  any  request  by  the   Commission  for  amendments  or
supplements  to the Shelf  Registration  Statement  or the  Prospectus  included
therein or for additional information.

                                       16
<PAGE>

               (2)  The  Company  shall  advise  you  and the  Holders  and,  if
requested by you or any such Holder, confirm such advice in writing:

               (i)  of  the  issuance  by  the  Commission  of  any  stop  order
suspending  the  effectiveness  of  the  Shelf  Registration  Statement  or  the
initiation of any proceedings for that purpose;

               (ii) of the  receipt  by the  Company  of any  notification  with
respect to the suspension of the qualification of the securities included in any
Shelf  Registration  Statement for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose; and

               (iii) of the suspension of the use of the Prospectus  pursuant to
Section 7.01(c) hereof or of the happening of any event that requires the making
of any changes in the Shelf Registration Statement or the Prospectus so that, as
of such date, the statements therein are not misleading and do not omit to state
a  material  fact  required  to be  stated  therein  or  necessary  to make  the
statements therein (in the case of the Prospectus, in light of the circumstances
under which they were made) not misleading (which advice shall be accompanied by
an instruction to suspend the use of the Prospectus until the requisite  changes
have been made);  provided that such notice shall not be required to specify the
nature of the event giving rise to the notice requirement hereunder.

          (d) The Company shall use its best efforts to obtain the withdrawal of
any order suspending the  effectiveness of any Shelf  Registration  Statement at
the earliest possible time.

          (e) The Company shall  furnish to each Holder of  securities  included
within the coverage of any Shelf  Registration  Statement,  without  charge,  at
least  one copy of such  Shelf  Registration  Statement  and any  post-effective
amendment  thereto,  including  documents  incorporated  by  reference  therein,
financial  statements and schedules,  and, if the Holder so requests in writing,
all exhibits (including those incorporated by reference).

          (f) The Company shall, during the Shelf Registration  Period,  deliver
to  each  Holder  of  securities  included  within  the  coverage  of any  Shelf
Registration  Statement,  without  charge,  as  many  copies  of the  Prospectus
(including  each  preliminary  Prospectus)  included in such Shelf  Registration
Statement and any amendment or supplement  thereto as such Holder may reasonably
request;  and the Company consents to the use of the Prospectus or any amendment
or supplement thereto by each of the selling Holders of securities in connection
with the offering and sale of the  securities  covered by the  Prospectus or any
amendment or supplement thereto.

          (g)  Prior  to any  offering  of  securities  pursuant  to  any  Shelf
Registration Statement,  the Company shall register or qualify or cooperate with
the  Holders of  securities  included  therein and their  respective  counsel in
connection with the  registration or  qualification of such securities for offer
and sale under the securities or blue sky laws of such jurisdictions as any such
Holders  reasonably  request in writing  and do any and all other acts or things
reasonably  necessary  or  advisable  to  enable  the  offer  and  sale  in such
jurisdictions of the securities covered

                                       17
<PAGE>

by such Shelf Registration Statement;  provided,  however, that the Company will
not be required to qualify generally to do business in any jurisdiction where it
is not then so qualified or to take any action which would subject it to general
service of process or to taxation in any such jurisdiction  where it is not then
so subject.

          (h) The Company  shall  cooperate  with the Holders of  securities  to
facilitate  the timely  preparation  and delivery of  certificates  representing
securities to be sold pursuant to any Shelf  Registration  Statement free of any
restrictive  legends and in such  denominations  and registered in such names as
Holders  may  request  prior to  sales  of  securities  pursuant  to such  Shelf
Registration Statement.

          (i)  Upon  the  occurrence  of any  event  contemplated  by  paragraph
(c)(2)(iii)  above,  the  Company  shall,  if  required  pursuant  to the Act or
paragraph (c)(2)(iii) above, as promptly as practicable prepare a post-effective
amendment to any Shelf  Registration  Statement or an amendment or supplement to
the  related  Prospectus  or file  any  other  required  document  so  that,  as
thereafter  delivered to  purchasers of the  securities  included  therein,  the
Prospectus  will not include an untrue  statement of a material  fact or omit to
state any material fact necessary to make the statements  therein,  in the light
of the circumstances under which they were made, not misleading.

          (j) Not  later  than  the  effective  date of any  Shelf  Registration
Statement hereunder,  the Company shall provide a CUSIP number for each class of
securities registered under such Shelf Registration  Statement,  and provide the
Transfer Agent with printed certificates for such securities, in a form eligible
for deposit with The Depository Trust Company.

          (k) The  Company  shall  use its  best  efforts  to  comply  with  all
applicable  rules and  regulations  of the  Commission  and shall make generally
available to its security  holders as soon as  practicable  after the  effective
date of the  applicable  Shelf  Registration  Statement  an  earnings  statement
satisfying the provisions of Section 11(a) of the Act.

          (l) The  Company  may require  each  Holder of  securities  to be sold
pursuant  to any Shelf  Registration  Statement  to  furnish  to the  Company in
writing  such  information  regarding  the Holder and the  distribution  of such
securities as the Company may from time to time reasonably require for inclusion
in such Shelf  Registration  Statement.  Any  Holder  who fails to provide  such
information shall not be entitled to use the Prospectus.

          (m)  The  Company  shall,  if  requested,  promptly  incorporate  in a
Prospectus  supplement  or  post-effective  amendment  to a  Shelf  Registration
Statement,  such  information as the Managing  Underwriters and Majority Holders
reasonably  agree should be included therein and shall make all required filings
of such Prospectus supplement or post-effective amendment as soon as notified of
the matters to be incorporated in such Prospectus  supplement or  post-effective
amendment.

          (n)  The  Company   shall  enter  into  such   agreements   (including
underwriting  agreements)  and take all other  appropriate  actions  in order to
expedite or facilitate the  registration  or the  disposition of any securities,
and in connection therewith, if an underwriting agreement is entered into, cause
the same to contain indemnification  provisions and procedures

                                       18
<PAGE>

no less favorable than those set forth in Section 7.06 (or such other provisions
and procedures acceptable to the Majority Holders and the Managing Underwriters,
if any), with respect to all parties to be indemnified pursuant to Section 7.06,
it being  understood that all underwriting  discounts and  commissions,  and all
other underwriting fees,  associated with such agreement in connection with such
offering of the securities  shall,  except as otherwise  expressly agreed herein
(including  those expenses  covered by Section 7.05),  be for the account of the
Holders or the underwriters.

          (o) The Company shall (i) make reasonably  available for inspection by
Holders of securities to be registered  thereunder and any Managing  Underwriter
participating in any disposition pursuant to such Shelf Registration  Statement,
and any attorney,  accountant or other agent retained by the Majority Holders of
securities to be registered  thereunder or by any such Managing  Underwriter all
relevant  financial  and  other  records,   pertinent  corporate  documents  and
properties of the Company;  (ii) cause the officers,  directors and employees of
the Company to supply all relevant information  reasonably requested by any such
Holders or Managing  Underwriter,  attorney,  accountant  or agent in connection
with such Shelf Registration Statement as is customary for similar due diligence
examinations;  provided,  however,  that any  information  that is designated in
writing by the Company in good faith, as confidential at the time of delivery of
such  information  shall be kept  confidential  by any such Holders and Managing
Underwriter, attorney, accountant or agent, unless disclosure thereof is made in
connection with a court  proceeding or required by law, or such  information has
become available (not in violation of this Agreement) to the public generally or
through a third party without an  accompanying  obligation  of  confidentiality;
(iii) make such  representations  and  warranties  to the Holders of  securities
registered thereunder and the underwriters, if any, in form, substance and scope
as are  customarily  made by issuers  to  underwriters  in primary  underwritten
offerings  and  covering  matters  including  those  set  forth in the  Purchase
Agreement;  (iv) obtain  opinions of counsel to the Company and updates  thereof
(which counsel and opinions (in form,  scope and substance)  shall be reasonably
satisfactory to the Holders and Managing Underwriter,  if any) addressed to each
selling  Holder  and the  underwriters,  if any,  covering  such  matters as are
customarily  covered in opinions  requested in  underwritten  offerings and such
other  matters as may be  reasonably  requested by the  Majority  Holders of the
securities  covered by such Shelf  Registration  Statement  and by such Managing
Underwriter;  (v) obtain  "cold  comfort"  letters and updates  thereof from the
independent certified public accountants of the Company (and, if necessary,  use
its reasonable  best efforts to retain any other  independent  certified  public
accountants of any subsidiary of the Company or of any business  acquired by the
Company for which  financial  statements and financial data are, or are required
to be, included in the Shelf Registration Statement),  addressed to each selling
Holder of securities  registered  thereunder  and the  underwriters,  if any, in
customary  form and covering  matters of the type  customarily  covered in "cold
comfort"  letters in connection with primary  underwritten  offerings;  and (vi)
deliver such documents and  certificates  as may be reasonably  requested by the
Majority  Holders and the  Managing  Underwriters,  if any,  including  those to
evidence  compliance  with  Section  3(i)  and  with  any  customary  conditions
contained in the underwriting  agreement or other agreement  entered into by the
Company. The foregoing actions set forth in clauses (iii), (iv), (v) and (vi) of
this  Section 3(o) shall be  performed  at (A) the  effectiveness  of such Shelf
Registration  Statement and each  post-effective  amendment thereto and (B) each
closing  under  any  underwriting  or  similar  agreement  as and to the  extent
required thereunder.

                                       19
<PAGE>

     SECTION 7.05.  Expenses.   All  expenses  incurred in  complying  with this
                    --------
Article VII,  including,  without  limitation,  all registration and filing fees
(including all expenses  incident to filing with the NASD),  printing  expenses,
fees and disbursements of a single counsel and accountants for the Company,  the
fees and expenses of counsel for the Holders or Holder  Affiliates,  as the case
may be effecting a  registration,  expenses of any special audits incident to or
required by any such  registration and expenses of complying with the securities
or blue sky laws of any jurisdictions pursuant to Section 7.04(g), shall be paid
by the Company, it being understood that underwriting  discounts and commissions
and all other  underwriting  fees  shall be for the  account  of the  Holders or
Holder Affiliates, as the case may be.

     SECTION 7.06.  Indemnification and Contribution.
                    --------------------------------

          (a) In the event of any registration under the Securities Act pursuant
to this Article VII of any  Registrable  Securities,  the Company will indemnify
and hold  harmless  the Holder  thereof  against  any losses,  claims,  damages,
liabilities  or  expenses,  joint or  several,  to which such  Holder may become
subject; under the Securities Act or otherwise,  insofar as such losses, claims,
damages, liabilities or expenses (or actions in respect thereof) arise out of or
are based upon an untrue  statement or alleged untrue  statement of any material
fact contained,  on the effective date thereof,  in any  registration  statement
under which such  securities  were  registered  under the  Securities  Act,  any
preliminary  prospectus or final prospectus  contained therein, or any amendment
or supplement thereto, or arise out of or are based upon the omission or alleged
omission  to state  therein a material  fact  required  to be stated  therein or
necessary to make the statements therein not misleading, and will reimburse such
Holder for any legal or any other expenses incurred by such Holder in connection
with  investigating  or defending  any such action or claim as such expenses are
incurred;  provided,  however,  that the Company shall not be liable in any such
case to the extent that such loss,  claim,  damage,  liability or expense arises
out of or is based upon an untrue  statement  or  alleged  untrue  statement  or
omission or alleged omission made in such  registration  statement,  preliminary
prospectus,  prospectus  or  amendment  or  supplement  in reliance  upon and in
conformity with written  information  furnished to the Company by such Holder or
an underwriter on behalf of such Holder expressly for use therein;  and provided
further that the foregoing  indemnity  agreement  with respect to any prospectus
shall not inure to the benefit of the Holder if it is conclusively determined by
a court  of  competent  jurisdiction  not  subject  to  appeal  that a copy of a
prospectus  was not sent or given by or on behalf of the Holder to the purchaser
of the Common Stock who has asserted a claim, if required by law to have been so
delivered,  at or prior to the written  confirmation of the sale of Common Stock
to such person,  and if a prospectus  would have cured the defect giving rise to
such loss, claim, damage or liability;

          (b) Each  Holder  of  Registrable  Securities,  by  acceptance  of the
registration  provisions provided herein,  agrees to indemnify and hold harmless
the Company against any losses, claims, damages,  liabilities or expenses, joint
or several, to which the Company may become subject, under the Securities Act or
otherwise,  insofar as such losses, claims, damages, liabilities or expenses (or
actions in respect  thereof) arise out of or are based upon an untrue  statement
or alleged  untrue  statement of a material fact  contained in any  registration
statement under which securities were registered under the Securities Act at the
request of such Holder, any preliminary prospectus or final prospectus contained
therein,  or any amendment or supplement  thereto,  or arise out of or are based
upon the omission or alleged omission to state therein a

                                       20
<PAGE>

material fact required to be stated  therein or necessary to make the statements
therein not misleading, in each case to the extent, but only to the extent, that
such  untrue  statement  or alleged  untrue  statement  or  omission  or alleged
omission was made in any such registration  statement,  preliminary  prospectus,
prospectus or amendment or  supplement  in reliance upon and in conformity  with
written  information  furnished to the Company by such Holder  expressly for use
therein;  and will  reimburse  the  Company  for any  legal  or  other  expenses
reasonably incurred by the Company in connection with investigating or defending
any such action or claim as such expenses are incurred.

          (c) Promptly  after receipt by an indemnified  party under  subsection
(a) or (b) above of notice of the  commencement of any action,  such indemnified
party shall, if a claim in respect thereof is to be made against an indemnifying
party under such  subsection,  notify the  indemnifying  party in writing of the
commencement thereof; but the omission so to notify the indemnifying party shall
not relieve it from any  liability  which it may have to any  indemnified  party
otherwise than under such subsection except to the extent it has been materially
prejudiced by such failure. In case any such action shall be brought against any
indemnified party and it shall notify the indemnifying party of the commencement
thereof, the indemnifying party shall be entitled to participate therein and, to
the  extent  that it shall  wish,  jointly  with any  other  indemnifying  party
similarly notified,  to assume the defense thereof, with counsel satisfactory to
such  indemnified  party  (which  shall  not,  except  with the  consent  of the
indemnified party, be counsel to the indemnifying party), and, after notice from
the indemnifying  party to such  indemnified  party of its election so to assume
the  defense  thereof,  the  indemnifying  party  shall  not be  liable  to such
indemnified  party under such subsection for any legal expenses of other counsel
or any other expenses,  in each case  subsequently  incurred by such indemnified
party, in connection  with the defense  thereof other than  reasonable  costs of
investigation.

          (d) If the  indemnification  provided  for in  this  Section  7.06  is
unavailable  to or  insufficient  to hold  harmless an  indemnified  party under
subsection  (a),  (b) or (c) above in respect of any  losses,  claims,  damages,
liabilities or expenses (or actions in respect  thereof)  referred to therein or
if the indemnified party failed to give the notice required under subsection (c)
above,  then each  indemnifying  party  shall  contribute  to the amount paid or
payable by such indemnified party as a result of such losses,  claims,  damages,
liabilities or expenses (or actions in respect thereof) in such proportion as is
appropriate to reflect the relative fault of the Company on the one hand and the
relevant  Holder on the other in  connection  with the  statements  or omissions
which  resulted in such losses,  claims,  damages,  liabilities  or expenses (or
actions  in  respect  thereof),   as  well  as  any  other  relevant   equitable
considerations.  The relative  fault shall be  determined by reference to, among
other things,  whether the untrue or alleged untrue statement of a material fact
or the  omission  or  alleged  omission  to state a  material  fact  relates  to
information  supplied by the Company on the one hand or the  relevant  Holder on
the other and the parties' relative intent, knowledge, access to information and
opportunity  to correct or prevent such  statement or omission.  The Company and
each Holder  registering  securities  under this Article VII agree that it would
not be just and equitable if contributions  pursuant to this subsection (d) were
determined by pro rata  allocation  or by any other method of  allocation  which
does not take account of the equitable  considerations referred to above in this
subsection  (d). The amount paid or payable by an indemnified  party as a result
of the losses,  claims,  damages or liabilities (or actions in respect  thereof)
referred to above in this subsection (d) shall be deemed to include any legal or
other expenses  reasonably incurred by such indemnified party in

                                       21
<PAGE>

connection   with   investigating   or  defending  any  such  action  or  claim.
Notwithstanding  the provisions of this  subsection  (d), no Holder  registering
securities  under this Article VII shall be required to contribute any amount in
excess of the amount by which the total price at which the securities registered
and sold by such Holder  exceeds the amount of any damages which such Holder has
otherwise  been  required  to pay by reason of such  untrue  or  alleged  untrue
statement  or  omission  or alleged  omission.  No person  guilty of  fraudulent
misrepresentation  (within the meaning of Section 11(f) of the  Securities  Act)
shall be  entitled  to  contribution  from any person who was not guilty of such
fraudulent misrepresentation.

          (e) The obligations of the Company under this Section 7.06 shall be in
addition to any liability which the Company may otherwise have and shall extend,
upon the same terms and conditions,  to each person (including each underwriter)
who  participated  in the  offering  of the  registered  securities  and to each
person,  if any,  who  controls  any Holder  registering  securities  under this
Article  VII or any such person  (including  each such  underwriter)  within the
meaning of Section 15 of the  Securities  Act;  and the  obligations  under this
Section 7.06 of any Holder  registering  securities under this Article VII shall
be in addition to any liability  which such Holder may otherwise  have and shall
extend, upon the same terms and conditions,  to each officer and director of the
Company and to each person,  if any, who controls the Company within the meaning
of Section 15 of the Securities Act.

     SECTION 7.07.  Selection of Managing Underwriters. The managing underwriter
                    ----------------------------------
or  underwriters  for any offering of Common Stock to be registered  pursuant to
Section  7.01 shall be selected by the Holders of a majority of the  Registrable
Securities being so registered (other than any shares being registered  pursuant
to Section  7.02(b) and 7.03) and shall be reasonably  acceptable to the Company
and such  consent  by the  Company  to the  choice of  managing  underwriter  or
underwriters shall not be unreasonably withheld.

     SECTION 7.08.  Inspection  of Records  and  Documents.    Each  Holder  and
                    --------------------------------------
underwriter  participating  in any  disposition  pursuant  to the  registrations
described  in this  Article VII,  and any  attorney,  accountant  or other agent
retained by any such Holder or  underwriter  (collectively,  the  "Inspectors"),
shall have conducted, at dates, times and locations reasonably specified by such
Inspectors, such investigations,  inquiries and conferences with such directors,
officers,   employees  and  agents  (including,   without  limitation,   outside
accountants and counsel) of the Company and its subsidiaries, been furnished and
reviewed such  documentation  of the Company and its  subsidiaries and conducted
such other procedures, as the Inspectors deem necessary, in their sole judgment,
to  have  a  satisfactory  "due  diligence"  defense  under  Section  11 of  the
Securities Act in connection with such registrations.

     SECTION 7.09. Assignment of Registration Rights. Each Holder of Registrable
                   ---------------------------------
Securities  may assign all or any part of its rights  under this  Article VII to
any person to whom such Holder  sells,  transfers  or assigns  such  Registrable
Securities.  In the event that the Holder  shall  assign its rights  pursuant to
this  Article  VII in  connection  with  the  transfer  of  less  than  all  its
Registrable Securities,  the Holder shall also retain his rights with respect to
its remaining Registrable Securities.

                                       22
<PAGE>

                                  ARTICLE VIII
                                ADDITIONAL RIGHTS

     SECTION 8.01.  Right of First Offer.
                    ---------------------

          (a)  Subject to the terms and  conditions  specified  in this  Section
8.01,  the  Company  hereby  grants to each  Holder the right of first  offer to
purchase a pro rata share of New Securities (as  hereinafter  defined) which the
Company may, from time to time,  propose to sell and issue;  provided,  however,
that any Holder shall have such right of first offer only if the  percentage  of
outstanding  Common  Stock owned (or into which the Shares are  convertible)  by
such Holder  would be diluted by 10% or more in the  aggregate  by any such sale
(or any series of sales over any 48 month period) of New Securities.  A Holder's
pro rata share,  for purposes of this right of first offer,  is the ratio of the
number of shares of Common Stock owned by such Holder  immediately  prior to the
issuance of the New Securities,  assuming full conversion of the Shares,  to the
total  number of shares of Common  Stock  outstanding  immediately  prior to the
issuance of New Securities,  assuming full conversion of the Shares.  Subject to
applicable  securities  laws,  each Holder shall have a right of over  allotment
such that if any Holder fails to exercise its right under  hereunder to purchase
its pro rata  share of New  Securities,  the  other  Holders  may  purchase  the
nonpurchasing  Holder's portion or a pro rata basis within 10 days from the date
such nonpurchasing  Holder fails to exercise its right hereunder to purchase its
pro rata share of New Securities. Each Holder shall be entitled to apportion the
right of first offer hereby granted among itself and its partners,  shareholders
and  affiliates in such  proportions  as it deems  appropriate.  As used in this
Article VIII,  "Holders"  means the  Purchasers and any persons or entities that
beneficially own shares of the Series A Convertible Preferred Stock.

          (b) In the event the Company  proposes to issue New Securities (and in
the  event  over-allotment  rights  exist  with  respect  to  any  issue  of New
Securities),  it shall give each Holder  written  notice (the  "Notice")  of its
intention  stating (i) a description of the New Securities it proposes to issue,
(ii) the number of shares of New  Securities  it  proposes  to offer,  (iii) the
price per share at which,  and other  terms on which,  it proposes to offer such
New  Securities  and (iv) the number of shares  that the Holder has the right to
purchase under this Section 8.01.

          (c)  Within 10 days  after the  Notice  is given (in  accordance  with
Section 9.06),  the Holder may elect to purchase,  at the price specified in the
Notice, up to its pro rata share of New Securities, as provided for in paragraph
(a). An  election to purchase  shall be made in writing and must be given to the
Company within such 10-day period (in accordance with Section 9.06). The closing
of the sale of New  Securities by the Company to the  participating  Holder upon
exercise of its rights under this  Section 8.01 shall take place  simultaneously
with the closing of the sale of New Securities to third parties.

          (d) The  Company  shall have 120 days after the last date on which the
Holder's  right of first offer  lapsed to enter into an  agreement  (pursuant to
which the sale of New  Securities  covered  thereby shall be closed,  if at all,
within 60 days from the execution  thereof) to sell the New Securities which the
Holders did not elect to purchase under this Section 8.01, at or above the price
and upon terms not more favorable to the purchasers of such  securities than the
terms specified in the initial Notice given in connection with such sale. In the
event the Company has not entered into an  agreement to sell the New  Securities
within such 120-day period (or sold and

                                       23
<PAGE>

issued New Securities in accordance  with the foregoing  within 60 days from the
date of said agreement),  the Company shall not thereafter issue or sell any New
Securities  without first  offering such New  Securities to the Purchaser in the
manner provided in this Section 8.01.

          (e)  "New  Securities"   shall  mean  any  shares  of,  or  securities
convertible  into or  exercisable  for any shares of, any class of the Company's
capital stock, provided that "New Securities" does not include: (A) the Series A

     Convertible Preferred Stock or the Common Stock issuable upon conversion of
the Series A Convertible  Preferred  Stock;  (B) shares of Common Stock issuable
upon the  exercise of  Existing  Equity  Rights;  (C) Common  Stock  issued upon
exercise of warrants,  options or convertible securities if the issuance of such
warrants,  options or convertible securities was a result of the exercise of the
right of first offer granted under this Section 8.01 or was subject to the right
of first offer granted under this Section 8.01; and (D)  securities  sold to the
public in an  offering  pursuant  to a  registration  statement  filed  with the
Securities and Exchange Commission under the Securities Act.

                                   ARTICLE IX
                                  MISCELLANEOUS

     SECTION 9.01.  Survival.  The warranties and representations of the Company
                    --------
and the Purchasers contained in or made pursuant to this Agreement shall survive
for a period of 4 years after the execution  and delivery of this  Agreement and
the Closing and shall in no way be affected by any  investigation of the subject
matter  thereof  made by or on  behalf of the  Purchasers  or the  Company.  All
agreements and covenants  contained herein shall survive  indefinitely until, by
their respective terms, they are no longer operative.

     SECTION 9.02.  Transfer; Successors and Assigns.   The terms and conditions
                    --------------------------------
of this  Agreement  shall  inure  to the  benefit  of and be  binding  upon  the
respective  successors  and assigns of the parties.  Nothing in this  Agreement,
express or implied,  is intended to confer upon any party other than the parties
hereto  or  their  respective  successors  and  assigns  any  rights,  remedies,
obligations,  or  liabilities  under or by reason of this  Agreement,  except as
expressly provided in this Agreement.

     SECTION 9.03.  Governing  Law.  This  Agreement  shall be  governed  by and
                    --------------
construed under the laws of the State of New York.

     SECTION 9.04.  Counterparts.  This  Agreement  may  be  executed  in two or
                    ------------
more counterparts,  each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

     SECTION 9.05.  Title and  Subtitles.  The titles and subtitles used in this
                    --------------------
Agreement  are  used for  convenience  only  and are not to be  considered  in
construing or interpreting this Agreement.

                                       24
<PAGE>

     SECTION 9.06.  Notices.
                    -------

          (a) All notices, requests, demands and other communications under this
Agreement  or in  connection  herewith  shall  be  given  to or  made  upon  the
Purchasers  at the address set forth with  respect to such party on the Schedule
of Purchasers attached hereto as Exhibit A, or, if to the Company to ECCS, Inc.,
One Sheila Drive, Tinton Falls, NJ 07724.

          (b) In order to exercise the  conversion  right  pursuant to paragraph
(8)(a)(i)  of the  Restated  Certificate,  the  holder of the shares of Series A
Convertible  Preferred  Stock to be converted  shall  surrender the  certificate
representing  such shares at the office of the Company,  or at the office of the
conversion agent for the Series A Convertible Preferred Stock appointed for such
purpose by the Company,  with a written notice of election to convert  completed
and signed specifying the number of shares to be converted.

          Such notice shall be substantially in the following form:

                          NOTICE OF ELECTION TO CONVERT

                  The  undersigned,   being  a  holder  of  the  6%  Convertible
      Preferred  Stock,  Series  A  ("Preferred  Stock"),  of  ECCS,  Inc.  (the
      "Corporation"),  irrevocably  exercises  the right to convert  outstanding
      shares of Preferred Stock on ______ [ ], 2001, into shares of Common Stock
      of the  Corporation in accordance  with the terms of the Preferred  Stock,
      and directs that the shares issuable and deliverable  upon the conversion,
      be  issued  and  delivered  in the  denominations  indicated  below to the
      registered holder hereof unless a different name has been indicated below.
      If  shares  are to be  issued  in the  name of a  Person  other  than  the
      undersigned,  the  undersigned  will pay all transfer  taxes  payable with
      respect thereto.

          (c) All notices,  requests,  demands and other communications given or
made in accordance  with the provisions of this  Agreement  shall be in writing,
and shall be sent by airmail,  return receipt requested, or by telex or telecopy
(facsimile)  with  confirmation  of receipt,  and shall be deemed to be given or
made where receipt is so confirmed.

          (d) Any party may, by written  notice to the other,  alter its address
or  respondent,  and such notice shall be  considered to have been given 10 days
after the airmailing, telexing or telecopying thereof.

     SECTION 9.07.  Finder's Fee.   Each party  represents  and warrants that it
                    ------------
neither  is nor  will  be  obligated  for  any  finder's  fee or  commission  in
connection with this transaction. Each Purchaser agrees to indemnify and to hold
harmless the Company from any liability for any  commission or  compensation  in
the nature of a finder's fee (and the costs and  expenses of  defending  against
such  liability or asserted  liability)  for which such  Purchaser or any of its
officers,  employees,  or representatives is responsible in connection with this
transaction,  other than as provided  in Section  9.09.  The  Company  agrees to
indemnify and hold harmless each Purchaser from any liability for any commission
or  compensation  in the nature of a finder's fee (and the costs and expenses of
defending against such liability or asserted liability) for which the

                                       25
<PAGE>

Company or any of its officers,  employees or  representatives is responsible in
connection with this transaction.

     SECTION 9.08.  Expenses.    The  Company  covenants  and  agrees  with  the
                    --------
Purchasers  that  the  Company  will pay or cause  to be paid  upon  demand  the
following: (i) the fees, disbursements and expenses of the Company's counsel and
accountants  in  connection  with the purchase and sale of the Shares;  (ii) the
cost of  printing  or  producing  this  Agreement  and any  other  documents  in
connection with the offering,  purchase,  sale and delivery of the Shares; (iii)
all expenses in connection with the  qualification  of the Shares,  for offering
and sale under state  securities laws,  including the fees and  disbursements of
counsel for the Purchasers in connection with such qualification;  (iv) the cost
of preparing stock certificates;  (v) the cost and charges of any transfer agent
or registrar; (vi) all out-of-pocket expenses of the Purchasers,  including fees
and disbursements of counsel,  and stock transfer taxes on the Shares; (vii) all
fees and  expenses  provided  for in Article VII; and (viii) all other costs and
expenses incident to the performance of its obligations  hereunder which are not
otherwise specifically provided for in this Section 9.08.

     SECTION 9.09.  Fees.  The Company  covenants and agrees with the Purchasers
                    ----
that the  Company  shall pay at the Closing (i) the fees set forth in the letter
agreement  between the Company and C.E.  Unterberg,  Towbin  dated  February 14,
2001,  (ii) the  reasonable  expenses of investors,  including the legal fees of
Cravath, Swaine & Moore, incurred in connection with this financing arrangement,
and (iii) the  reasonable  out-of-pocket  expenses  incurred by C.E.  Unterberg,
Towbin in  carrying  out its  duties  set forth in the  letter  agreement  dated
February 14, 2001,  provided that such expenses  shall not exceed $50,000 in the
aggregate to be paid at Closing.

     The  letter   agreement   dated   February  14,  2001,   provides  that  in
consideration of C.E. Unterberg,  Towbins services as a financial advisor to the
Company and for carrying out the duties described in such letter agreement,  the
Company will issue to C.E.  Unterberg,  Towbin up to 125,000  shares of Series A
Convertible Preferred Stock adjusted according to the number of Shares of Series
A Convertible Preferred Stock purchased by the Purchasers upon the Closing. C.E.
Unterberg,  Towbin will be entitled to the same rights with regard to the shares
of Series A Convertible Preferred Stock as if it were a Purchaser hereunder.

     SECTION 9.10.  Amendments  and Waivers.  Any term of this  Agreement may be
                    -----------------------
amended and the  observance of and term of this  Agreement may be waived (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  only with the written consent of the Company and the holders of
a majority of the Securities  (calculated on an  as-converted  basis)  purchased
hereunder.  Any  amendment or waiver  effected in  accordance  with this Section
shall be binding upon each transferee of any  Securities,  each future holder of
all such  Securities,  and the  Company;  provided,  however,  that  none of the
conditions  set forth in  Article  IV hereof  may be waived  with  respect  to a
particular Purchaser unless it consents thereto.

     SECTION 9.11.  Severability.   If one or more provisions of this  Agreement
                    ------------
are held to be  unenforceable  under  applicable  law, such  provision  shall be
excluded  from  this  Agreement  and the  balance  of this  Agreement  shall  be
interpreted  as if such  provision  were so excluded and shall be enforceable in
accordance with its terms.

                                       26
<PAGE>

     SECTION 9.12. Entire Agreement. This Agreement dated April 19, 2001,
                   ----------------
constitutes the entire  Agreement  between the parties hereto  pertaining to the
subject  matter hereof and thereof,  and any and all other prior written or oral
agreements existing between the parties hereto are expressly canceled.

     This  Series  A  Convertible  Preferred  Stock  Purchase  Agreement  may be
executed in one or more counterparts,  each of which shall be deemed an original
and all of  which,  when  taken  together,  shall  constitute  one and the  same
instrument.

                                       27
<PAGE>

     IN WITNESS  WHEREOF,  the parties have  executed  this Series A Convertible
Preferred Stock Purchase Agreement as of the date first above written.

                                          PURCHASERS:

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

                                          COMPANY:

                                          ECCS, INC.,

                                          By:    /s/ Gregg M. Azcuy
                                              --------------------------------
                                          Name:  Gregg M. Azcuy
                                          Title: President and Chief Executive
                                                 Officer

<PAGE>

                                    EXHIBIT A

                             SCHEDULE OF PURCHASERS

                                                   Series A          Purchase
    Purchaser                                      Shares            Price
    ---------                                      --------          --------
    John R. Cronin                                 25,000             $50,000
    James T. Whipple                               25,000             $50,000
    Thomas Gubitosi                                25,000             $50,000
    Jeffrey C. Moskowitz                           12,500             $25,000
    Jerome Laczniak                                12,500             $25,000
    Kenneth Sheinberg                              12,500             $25,000
    Russell Sarachek                               50,000            $100,000
    Edward Macomb                                   5,000             $10,000
    Michael Glita and Joan Glita                   12,500             $25,000
    Jay Moorin                                     25,000             $50,000
    D. Roger Glenn and Susan H. Glenn               5,000             $10,000
    Robert Cannon                                  40,000             $80,000
    J. M. Hull Associates, L.P.                    25,000             $50,000
    Hull Capital Corp. PS FBO J. Mitchell Hull     25,000             $50,000
                                                   ------             --------
                                                   300,000            $600,000

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