Document:

exv4w4

 

Exhibit 4.4

(Face of Note)

          THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY
BE REQUIRED PURSUANT TO SECTION 2.07 OF THE INDENTURE, (II) THIS GLOBAL NOTE
MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(c) OF THE
INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL
NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF THE COMPANY.

 

 

CUSIP NO.
69331C AC 2

ISIN ________________

	 	 	 
	No.                    

	 	$                                      

6-7/8% Senior Secured Notes Due 2008

          PG&E Corporation, a California corporation, promises to pay to Cede & Co.,
or registered assigns, the principal sum of                    Dollars
($                   ) on July 15, 2008.

	 	 	 
	Interest Payment Dates:

	 	January 15 and July 15
	Record Dates:

	 	January 1 and July 1

          Additional provisions of this Note are set forth on the other side of this
Note.

Dated:                                       

	 	 	 	 	 
	 	PG&E CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

TRUSTEE’S CERTIFICATE OF

     AUTHENTICATION

J. P. MORGAN TRUST COMPANY,

     NATIONAL ASSOCIATION

    as Trustee, certifies that this

        is one of the Notes referred

        to in the Indenture.

By:                                                                            

        Authorized Signatory

 

 

(Reverse Side of Note)

6-7/8% Senior Secured Note due 2008

          Capitalized terms used herein will have the meanings assigned to them in
the Indenture referred to below unless otherwise indicated.

     1. INTEREST. PG&E Corporation, a California corporation (the “Company”),
promises to pay interest on the principal amount of this Note at 6-7/8% per
annum from [insert the date of the last payment of interest on the 6 7/8%
Senior Secured Note due 2008 for which this Note was exchanged] until maturity.
The Company will pay interest semi-annually on January 15 and July 15 of each
year, commencing [July 15, 2004 — date assumes this Note is issued on or prior
to July 1, 2004], or if any such day is not a Business Day, on the next
succeeding Business Day (each an “Interest Payment Date”), with the same force
and effect as if made on the date for such payment. The Company will make each
interest payment to the holder of record of this Note on the immediately
preceding January 1 and July 1. Interest on this Note will accrue from the most
recent date to which interest has been paid; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest will accrue from such next succeeding Interest
Payment Date. The Company will pay interest (including post-petition interest
in any proceeding under any Bankruptcy Law) on overdue principal and premium,
if any, from time to time on demand at a rate that is the then applicable
interest rate on this Note to the extent lawful; it will pay interest
(including post-petition interest in any proceeding under Bankruptcy Law) on
overdue installments of interest (without regard to any applicable grace
periods) from time to time on demand at the same rate to the extent lawful.
Interest will be computed on the basis of a 360-day year of twelve 30-day
months.

     2. METHOD OF PAYMENT. The Company will pay interest on this Note (except
defaulted interest) to the Person who is the registered Holder of this Note at
the close of business on the January 1 and July 1 (whether or not a Business
Day) next preceding the Interest Payment Date, even if this Note is canceled
after such record date and on or before such Interest Payment Date, except as
provided in Section 2.12 of the Indenture with respect to defaulted interest.
This Note will be payable as to principal, premium, if any, and interest at the
office or agency of the Company maintained for such purpose within The City and
State of New York or, at the option of the Company, payment of interest may be
made by check mailed to the Holder at its address set forth in the register of
Holders; provided that payment by wire transfer of immediately available funds
will be required with respect to principal of and interest and premium on all
Global Notes and all other Notes the Holders of which have provided wire
transfer instructions to the Company or the Paying Agent if such Holders are
registered Holders of at least $250,000 in principal amount of the Notes. Such
payment will be in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

     3. PAYING AGENT AND REGISTRAR. Initially, J. P. Morgan Trust Company, National
Association, the Trustee under the Indenture, will act as Paying Agent and Registrar.
The Company may change any Paying Agent or Registrar without notice to any Holder.
The Company or any of its Subsidiaries may act in any such capacity.

 

 

     4. INDENTURE. The Company issued this Note under an Indenture dated as of
July 2, 2003 (“Indenture”) between the Company and the Trustee. The terms of
this Note includes those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S.
Code §§ 77aaa-77bbbb). This Note is subject to all such terms, and the Holder
is referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture will govern and be controlling.

     5. OPTIONAL REDEMPTION.

          (a) Except as set forth in clause (b) and (c) of this paragraph 5, this
Note is not redeemable at the Company’s option prior to July 15, 2006.
Thereafter, the Company may redeem all or a part of this Note upon not less
than 30 nor more than 60 days’ notice, at the redemption prices (expressed as
percentages of principal amount) set forth below plus accrued and unpaid
interest thereon, if any, to the applicable redemption date, if redeemed during
the twelve-month period beginning on July 15th of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage
	2006
	 	 	103.438	%
	2007
	 	 	101.719	%

          (b) Notwithstanding the foregoing, at any time prior to July 15, 2006, the
Company may on any one or more occasions redeem up to 35% of the aggregate
principal amount of the Notes issued under the Indenture at a redemption price
of 106.875% of the principal amount thereof, plus accrued and unpaid interest
thereon, to the redemption date, with the net cash proceeds of one or more
Equity Offerings by the Company; provided that at least 65% of the aggregate
principal amount of Notes issued under the Indenture remains outstanding
immediately after the occurrence of each such redemption (excluding Notes held
by the Company and its Subsidiaries); and provided, further, that any such
redemption occurs within 120 days of the date of the closing of such Equity
Offering.

          (c) At any time and from time to time prior to July 15, 2006, the Company
may, at its option, redeem all or a portion of the Notes at the Make-Whole
Price plus accrued and unpaid interest to the redemption date.

     6. MANDATORY REDEMPTION. Except as set forth in paragraph 7 below, the
Company will not be required to make mandatory redemption payments with respect
to this Note.

     7. REPURCHASE AT OPTION OF HOLDER.

          (a) If there is a Change of Control, Spin-Off or Reorganization Event,
the Company will be required to make an offer (a “Change of Control Offer”) to
repurchase all or any part (equal to $1,000 or an integral multiple of $1,000
thereof) of each Holder’s Notes at a purchase price in cash equal to 101% of
the aggregate principal amount thereof plus accrued and unpaid interest to the
date of the purchase (the “Change of Control Payment”). Within 30 days
following any Change of Control or no sooner than 60 days prior to and no later
than 30 days following a Spin-Off or Reorganization Event, as the case may be,
the Company will mail a notice to each

-4-

 

Holder describing the transaction or
transactions that constitute the Change of Control, Spin-Off or Reorganization
Event, as the case may be, and offering to repurchase Notes on the date
specified in the notice, which date will be no earlier than 30 days and no
later than 60 days from the date such notice is mailed (the “Change of Control
Payment Date”), pursuant to the procedures required by the Indenture and
described in such notice.

          (b) If the Net Proceeds of any Asset Sales consummated by the Company or
a Restricted Subsidiary are not applied or invested as provided in Section
4.10(b) of the Indenture, such Net Proceeds will constitute “Excess Proceeds.”
When the aggregate amount of Excess Proceeds exceeds $30.0 million, the
Company will commence an offer to all Holders of Notes and all holders of other
secured Indebtedness that is pari passu with the Notes containing provisions
similar to those set forth in the Indenture with respect to offers to purchase
or redeem with the proceeds of sales of assets (an “Asset Sale Offer”) pursuant
to Section 3.09 of the Indenture, to purchase the maximum principal amount of
Notes (in integral multiples of $1,000) and such other secured pari passu
Indebtedness that may be purchased out of the Excess Proceeds, at an offer
price in cash in an amount equal to 100% of the principal amount of Notes and
other secured pari passu Indebtedness to be purchased or the lesser amount
required under agreements governing such other secured pari passu Indebtedness,
plus accrued and unpaid interest to the date of purchase. If any Excess
Proceeds remain after consummation of an Asset Sale Offer, the Company may use
such Excess Proceeds for any purpose not otherwise prohibited by the Indenture.
If the aggregate principal amount of Notes and other secured pari passu
Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Trustee will select the Notes and such other secured pari passu
Indebtedness to be purchased on a pro rata basis. Holders of Notes that are
the subject of an offer to purchase will receive an Asset Sale Offer from the
Company prior to any related purchase date and may elect to have such Notes
purchased by completing the form entitled “Option of Holder to Elect Purchase”
on the reverse of the Notes.

     8. NOTICE OF REDEMPTION. Notice of redemption will be mailed by first
class mail at least 30 days but not more than 60 days before the redemption
date to each Holder whose Notes are to be redeemed at its registered address.
Notes in denominations larger than $1,000 may be redeemed in part but only in
whole multiples of $1,000, unless all of the Notes held by a Holder are to be
redeemed. On and after the redemption date, interest ceases to accrue on Notes
or portions thereof called for redemption.

     9. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without coupons in denominations of
$1,000 and integral multiples of $1,000. The transfer of Notes may be
registered and Notes may be exchanged as provided in the Indenture. The
Registrar and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require a
Holder to pay any taxes and fees required by law or permitted by the Indenture.
The Company need not exchange or register the transfer of any Note or portion
of a Note selected for redemption, except for the unredeemed portion of any
Note being redeemed in part. Also, it need not exchange or register the
transfer of any Notes for a period of 15 days before a selection of Notes to be
redeemed or during the period between a record date and the corresponding
Interest Payment Date.

-5-

 

     10. PERSONS DEEMED OWNERS. The registered Holder of this Note may be
treated as its owner for all purposes.

     11. AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions, the
Indenture, the Pledge Agreements or the Notes may be amended or supplemented
with the consent of the Holders of at least a majority in principal amount of
the then outstanding Notes, and any existing default or compliance with any
provision of the Indenture or the Notes may be waived with the consent of the
Holders of a majority in principal amount of the then outstanding Notes.
Without the consent of any Holder of a Note, the Indenture, the Pledge
Agreements or the Notes may be amended or supplemented to cure any ambiguity,
defect or inconsistency, to provide for uncertificated Notes in addition to or
in place of certificated Notes, to provide for the assumption of the Company’s
obligations to Holders of the Notes in case of a merger or consolidation or
sale of all or substantially all of the Company’s assets in accordance with the
Indenture, to make any change that would provide any additional rights or
benefits to the Holders of the Notes or that does not adversely affect the
legal rights under the Indenture or the Pledge Agreements of any such Holder,
to provide for the issuance of Additional Notes in accordance with the terms of
the Indenture, to comply with the requirements of the SEC in order to effect or
maintain the qualification of the Indenture under the Trust Indenture Act, or
to evidence and provide for the acceptance and appointment under the Indenture
of a successor Trustee pursuant to the procedures set forth in the Indenture.

     12. DEFAULTS AND REMEDIES. An “Event of Default” occurs if: (i) default
for 30 days in the payment when due of interest on the Notes; (ii) default in
payment when due of the principal of, or premium, if any, on the Notes; (iii)
failure by the Company or any of its Restricted Subsidiaries to comply with the
covenants contained in Sections 4.10, 4.15 or 5.01 of the Indenture; (iv)
failure by the Company or any of its Restricted Subsidiaries for 60 days after
notice to comply with any of the other covenants or agreements of the
Indenture; (v) default under any mortgage, indenture or instrument under which
there may be issued or by which there may be secured or evidenced any
Indebtedness for money borrowed by the Company or any of its Restricted
Subsidiaries (or the payment of which is guaranteed by the Company or any of
its Restricted Subsidiaries) whether such Indebtedness or guarantee now exists,
or is created after the date of the Indenture, which default is caused by a
failure to pay principal of, or interest or premium, if any, on such
Indebtedness prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a “Payment Default”) or
results in the acceleration of such Indebtedness prior to its Stated
Maturity and, in each case, the principal amount of any such Indebtedness,
together with the principal amount of any other such Indebtedness under which
there has been a Payment Default or the maturity of which has been so
accelerated, aggregates $50.0 million or more; (vi) failure by the Company or
any of its Subsidiaries to pay final judgments aggregating in excess of $50.0
million, which judgments are not paid, discharged or stayed for a period of 60
days; (vii) (a) except as permitted by the Pledge Agreements, any amendments
thereto and the provisions of the Indenture or other than as a result of a
Reorganization Event, either of the Pledge Agreements ceases to be in full
force and effect or ceases to be effective, in all material respects, to create
the Lien purported to be created in the Collateral in favor of the Holders for
60 days after notice, (b) the Company challenges the Lien on the Collateral
under the Pledge Agreements prior to the time that the Collateral is to be
released to the Company or (c) the Company asserts that either of the Pledge
Agreements is invalid and unenforceable, other than in accordance with its
terms; or (viii) certain events of bankruptcy or insolvency with respect to the
Company or any of its Significant Subsidiaries or any group of Restricted
Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary.

-6-

 

          If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes may
declare all outstanding Notes to be due and payable immediately.
Notwithstanding the foregoing, in the case of an Event of Default arising from
certain events of bankruptcy or insolvency, with respect to the Company, all
outstanding Notes will become due and payable without further action or notice.
Holders of the Notes may not enforce the Indenture or the Notes except as
provided in the Indenture. Subject to certain limitations, Holders of a
majority in principal amount of the then outstanding Notes shall have the right
to direct the time, method and place of conducting any proceeding for
exercising any remedy available to the Trustee. The Trustee may withhold from
Holders of the Notes notice of any continuing Default or Event of Default
(except a Default or Event of Default relating to the payment of principal or
interest) if it determines that withholding notice is in their interest, except
with respect to a Default or Event of Default relating to the payment of
principal of, or interest or premium, if any, on, the Notes.

          The Holders of a majority in aggregate principal amount of the Notes then
outstanding by notice to the Trustee may, on behalf of the Holders of all of
the Notes, waive any existing Default or Event of Default and its consequences
under the Indenture, except a continuing Default or Event of Default in the
payment of principal of, or interest or premium, if any, on, the Notes;
provided, however, that the Holders of a majority in aggregate principal amount
of the then outstanding Notes may rescind an acceleration and its consequences,
if the rescission would not conflict with any judgment or decree or if all
existing Events of Default have been cured or waived.

     13. TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or any
other capacity, may make loans to, accept deposits from and perform services
for the Company or its Affiliates, and may otherwise deal with the Company or
its Affiliates, as if it were not the Trustee.

     14. NO RECOURSE AGAINST OTHERS. A director, officer, employee,
incorporator or shareholder of the Company or any director, officer, employee
or incorporator of any Subsidiary of the Company, as such, will not have
any liability for any obligations of the Company under the Notes, the
Indenture, the Pledge Agreements or for any claim based on, in respect of, or
by reason of, such obligations or their creation. Each Holder by accepting a
Note waives and releases all such liability. The waiver and release are part of
the consideration for the issuance of the Notes.

     15. AUTHENTICATION. This Note will not be valid until authenticated by
the manual signature of the Trustee or an authenticating agent.

     16. ABBREVIATIONS. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (tenants in common), TEN ENT (tenants
by the entireties), JT TEN (joint tenants with right of survivorship and not as
tenants in common), CUST (custodian), and U/G/M/A (Uniform Gifts to Minors
Act).

     17. CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders. No representation is made
as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

-7-

 

     18. GOVERNING LAW. This Note will be governed by, and construed in
accordance with, the laws of the State of New York.

     The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture. Requests may be made to:

PG&E Corporation

One Market, Spear Tower, Suite 2400

San Francisco, California 94105

Attention: Chief Counsel – Corporate (Fax: (415) 817-8225)

-8-

 

ASSIGNMENT FORM

          To assign this Note, fill in the form below: (I) or (we) assign and
transfer this Note to

(Insert assignee’s social security or tax identification number)

(Print or type assignee’s name, address and zip code)

	and irrevocably appoint 	 
	 	

	to transfer this Note on the books of the Company. The agent may substitute
another to act for him.

 

	Date: 	 
	 	

	 	Your Signature: 	 
	 	 	

	 	(Sign exactly as your name appears on the face of this Note)

Signature Guarantee.

-9-

 

Option of Holder to Elect Purchase

     If you want to elect to have this Note purchased by the Company pursuant
to Section 4.10 or 4.15 of the Indenture, check the box below:

     o Section 4.10                                o Section 4.15

     If you want to elect to have only part of the Note purchased by the
Company pursuant to Section 4.10 or Section 4.15 of the Indenture, state the
amount you elect to have purchased: $                                      

	 	 	 
	Date:                                       

	 	Your Signature:                                                                                       
	

	 	                    (Sign exactly as your name appears on the Note)
	

	 	 
	

	 	Tax Identification No.:                                                                            

Signature Guarantee.

-10-

 

Schedule of Exchanges of Interests in the Global Note

     The following exchanges of a part of this Global Note for an interest in
another Global Note or for a Definitive Note, or exchanges of a part of another
Global Note or Definitive Note for an interest in this Global Note, have been
made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount of	 	 
	 	 	 	 	 	 	 	 	 	 	this Global Note	 	Signature of
	 	 	Amount of Decrease	 	Amount of Increase	 	following such	 	Authorized Officer
	 	 	in Principal Amount	 	in Principal Amount	 	Decrease	 	of Trustee or Note
	Date of Exchange
	 	of this Global Note
	 	of this Global Note
	 	(or Increase)
	 	Custodian

	  
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

-11-<PAGE>

                                                                     EXHIBIT 4.5

                                                                  EXECUTION COPY

================================================================================

                                  A/B EXCHANGE
                          REGISTRATION RIGHTS AGREEMENT

                            Dated as of July 2, 2003

                                  by and among

                                PG&E CORPORATION

                                       AND

                              LEHMAN BROTHERS INC.

                          CITIGROUP GLOBAL MARKETS INC.

                              GOLDMAN, SACHS & CO.

                        MORGAN STANLEY & CO. INCORPORATED

                                       and

                         BANC ONE CAPITAL MARKETS, INC.

================================================================================

<PAGE>

                   A/B EXCHANGE REGISTRATION RIGHTS AGREEMENT

         This A/B Exchange Registration Rights Agreement (this "Agreement") is
made and entered into as of July 2, 2003 by and among PG&E Corporation, a
California corporation (the "Company"), and Lehman Brothers Inc., Citigroup
Global Markets Inc., Goldman, Sachs & Co., Morgan Stanley & Co. Incorporated and
Banc One Capital Markets, Inc., as the initial purchasers (the "Initial
Purchasers") named in Schedule 1 to the Purchase Agreement (as defined below),
each of whom has agreed to purchase the Company's 6 7/8% Senior Secured Notes
due 2008 (the "Series A Notes") pursuant to the Purchase Agreement, dated as of
June 27, 2003 (the "Purchase Agreement"), by and among the Company and the
Initial Purchasers.

         In order to induce the Initial Purchasers to purchase the Series A
Notes, the Company has agreed to provide the registration rights set forth in
this Agreement. The execution and delivery of this Agreement is a condition to
the obligations of the Initial Purchasers set forth in Section 7 of the Purchase
Agreement.

         The parties hereby agree as follows:

SECTION 1 DEFINITIONS

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

         Act: The Securities Act of 1933, as amended.

         Broker-Dealer: Any broker or dealer registered, or required to be
registered, under the Exchange Act.

         Closing Date: The date of this Agreement.

         Commission: The Securities and Exchange Commission.

         Consummate: A Registered Exchange Offer shall be deemed "Consummated"
for purposes of this Agreement upon the occurrence of (a) the filing and
effectiveness under the Act of the Exchange Offer Registration Statement
relating to the Series B Notes to be issued in the Exchange Offer, (b) the
maintenance of such Registration Statement continuously effective and the
keeping of the Exchange Offer open for a period not less than the minimum period
required pursuant to Section 3(b) hereof and (c) the delivery by the Company to
the Registrar under the Indenture of Series B Notes in the same aggregate
principal amount as the aggregate principal amount of Transferred Restricted
Securities that were validly tendered by Holders thereof pursuant to the
Exchange Offer.

         Effectiveness Target Date: As defined in Section 5.

         Exchange Act: The Securities Exchange Act of 1934, as amended.

         Exchange Offer: The registration by the Company under the Act of the
Series B Notes pursuant to a Registration Statement pursuant to which the
Company offers the Holders of all

<PAGE>

outstanding Transfer Restricted Securities the opportunity to exchange all such
outstanding Transfer Restricted Securities held by such Holders for Series B
Notes in an aggregate principal amount equal to the aggregate principal amount
of the Transfer Restricted Securities tendered in such exchange offer by such
Holders.

         Exchange Offer Registration Statement: The Registration Statement
relating to the Exchange Offer, including the related Prospectus.

         Exempt Resales: The transactions in which the Initial Purchasers
propose to sell the Series A Notes to (a) certain "qualified institutional
buyers," as such term is defined in Rule 144A under the Act, and (b) outside the
United States to Persons other than U.S. persons, as such term is defined in
Regulation S, in offshore transactions meeting the requirements of Rule 904 of
Regulation S under the Act.

         Holders: As defined in Section 2 hereof.

         Indenture: The Indenture, dated as of the date hereof, between the
Company and Bank One, N.A., as trustee (the "Trustee"), pursuant to which the
Notes are to be issued, as such Indenture is amended or supplemented from time
to time in accordance with the terms thereof.

         Initial Purchasers: As defined in the preamble hereto.

         Interest Payment Date: As defined in the Notes.

         NASD: National Association of Securities Dealers, Inc.

         Notes: The Series A Notes and the Series B Notes.

         Offering Memorandum: As defined in the Purchase Agreement.

         Person: An individual, partnership, corporation, trust, limited
liability company or unincorporated organization, or a government or agency or
political subdivision thereof or other legal entity.

         Prospectus: The prospectus included in a Registration Statement, as
amended or supplemented by any prospectus supplement and by all other amendments
thereto, including post-effective amendments, and all material incorporated by
reference into such prospectus.

         Record Holder: With respect to any Interest Payment Date relating to
the Notes, each Person who is a Holder of Notes on the record date with respect
to the Interest Payment Date on which such Interest Payment Date shall occur.

         Registration Default: As defined in Section 5 hereof.

         Registrar: As defined in the Indenture.

         Registration Statement: Any registration statement of the Company
relating to (a) the offering of Series B Notes pursuant to the Exchange Offer or
(b) the registration for resale of

                                       2
<PAGE>

Transfer Restricted Securities pursuant to the Shelf Registration Statement,
which is filed pursuant to the provisions of this Agreement, in each case
including the Prospectus included therein, all amendments and supplements
thereto (including post-effective amendments) and, except as such term is used
in Section 6(c)(iv) hereof, all exhibits and material incorporated by reference
therein.

         Regulation S: Regulation S promulgated under the Act.

         "Rule 144(k) Period" shall mean the period of two years (or such
shorter or longer period as may hereafter be referred to in Rule 144(k) under
the Act (or similar successor rule)) commencing on the Closing Date.

         Series A Notes: As defined in the preamble hereto.

         Series B Notes: The Company's 6 7/8 % Senior Secured Notes due 2008 to
be issued pursuant to the Indenture in the Exchange Offer.

         Shelf Filing Deadline: As defined in Section 4 hereof.

         Shelf Registration Statement: As defined in Section 4 hereof.

         TIA: The Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb),
as in effect on the date of the Indenture.

         Transfer Restricted Securities: Each Series A Note, until the earliest
to occur of (a) the date on which such Series A Note is exchanged by a Person
other than a Broker-Dealer for one or more Series B Notes in the Exchange Offer,
(b) following the exchange by a Broker-Dealer in the Exchange Offer of a Series
A Note for a Series B Note, the date on which such Series B Note is sold to a
purchaser who receives from such Broker-Dealer on or prior to the date of such
sale a copy of the Prospectus contained in the Exchange Offer Registration
Statement, (c) the date on which such Series A Note is effectively registered
under the Act and disposed of in accordance with the Shelf Registration
Statement or (d) the date on which such Series A Note has been transferred in
compliance with Rule 144 under the Act or may be sold or transferred by a Person
who is not an affiliate of the Company pursuant to Rule 144(k) under the Act (or
any other similar provision then in force) without regard to any volume or
manner of sale restrictions thereunder.

         Underwritten Registration or Underwritten Offering: A registration in
which securities of the Company are sold to an underwriter for reoffering to the
public.

SECTION 2 SECURITIES SUBJECT TO THIS AGREEMENT

         (a) Transfer Restricted Securities. The securities entitled to the
benefits of this Agreement are the Transfer Restricted Securities.

         (b) Holders of Transfer Restricted Securities. A Person is deemed to be
a holder of Transfer Restricted Securities (each, a "Holder") whenever such
Person owns Transfer Restricted Securities, has a beneficial interest in
Transfer Restricted Securities issued in book-entry form or

                                       3
<PAGE>

has the right to acquire such Transfer Restricted Securities, whether or not
such acquisition has actually been effected and disregarding any legal
restrictions upon the exercise of such right.

SECTION 3 REGISTERED EXCHANGE OFFER

         (a) Unless the Exchange Offer shall not be permissible under applicable
law or Commission policy (after the procedures set forth in Section 6(a) below
have been complied with), the Company shall (i) file with the Commission on or
prior to 300 days after the Closing Date a Registration Statement under the Act
relating to the Series B Notes and the Exchange Offer, (ii) use commercially
reasonable best efforts to cause such Registration Statement to be declared
effective by the Commission on or prior to 360 days after the Closing Date,
(iii) in connection with the foregoing, file (A) all pre-effective amendments to
such Registration Statement as may be necessary in order to cause such
Registration Statement to become effective, (B) if applicable, a post-effective
amendment to such Registration Statement pursuant to Rule 430A under the Act and
(C) subject to the proviso contained in Section 6(c)(ix), cause all necessary
filings in connection with the registration and qualification of the Series B
Notes to be made under the Blue Sky laws of such jurisdictions as are necessary
to permit Consummation of the Exchange Offer and (iv) upon the effectiveness of
such Registration Statement, commence the Exchange Offer and use commercially
reasonable best efforts to issue, on or prior to 30 business days after the
Exchange Offer Registration Statement has been declared effective or such longer
period as may be required by the federal securities laws, the Series B Notes in
exchange for all Transfer Restricted Securities validly tendered prior thereto
in the Exchange Offer. The Exchange Offer shall be on an appropriate form
selected by the Company that permits registration of the Series B Notes to be
offered in exchange for the Transfer Restricted Securities and permits resales
of Notes held by Broker-Dealers as contemplated by Section 3(c) below. The 300,
360 and 30 day periods referred to in clauses (i), (ii) and (iv) of this Section
3(a) shall not include any period during which the Company is pursuing a
Commission ruling pursuant to Section 6(a)(i) below. Notwithstanding the
foregoing, the Company shall not be required to file a Registration Statement
pursuant to this Section 3(a) if the Company is not able to comply, after
exercising commercially reasonable best efforts, with the requirements of the
Act or Commission policy with respect to the Registration Statement related to
the Exchange Offer. The 300 and 360 day periods referred to in clauses (i) and
(ii) of this Section 3(a) shall include any period during which the Company is
unable to file a Registration Statement pursuant to the previous sentence.

         (b) The Company shall use commercially reasonable best efforts to cause
the Exchange Offer Registration Statement to be effective continuously and shall
keep the Exchange Offer open for a period of not less than the minimum period
required under applicable federal and state securities laws to Consummate the
Exchange Offer; provided, however, that in no event shall such period be less
than 20 business days. The Company shall cause the Exchange Offer to comply in
all material respects with all applicable federal and state securities laws. No
securities other than the Notes shall be included in the Exchange Offer
Registration Statement.

         (c) The Company shall indicate in a "Plan of Distribution" section
contained in the Prospectus contained in the Exchange Offer Registration
Statement that any Broker-Dealer who owns Series A Notes that are Transfer
Restricted Securities and that were acquired for its own account as a result of
market-making activities or other trading activities (other than Transfer

                                       4
<PAGE>

Restricted Securities acquired directly from the Company), may exchange such
Series A Notes pursuant to the Exchange Offer; provided, however, such
Broker-Dealer may be deemed to be an "underwriter" within the meaning of the Act
and must, therefore, deliver a prospectus meeting the requirements of the Act in
connection with any resales of any Series B Notes received by such Broker-Dealer
in the Exchange Offer, which prospectus delivery requirement may be satisfied by
the delivery by such Broker-Dealer of the prospectus contained in the Exchange
Offer Registration Statement. Such "Plan of Distribution" section shall also
contain all other information with respect to such resales by Broker-Dealers
that the Commission may require in order to permit such resales pursuant
thereto, but such "Plan of Distribution" shall not name any such Broker-Dealer
or disclose the amount of Notes held by any such Broker-Dealer except to the
extent required by the Commission.

         The Company shall use commercially reasonable best efforts to keep the
Exchange Offer Registration Statement continuously effective, supplemented and
amended as required by the provisions of Section 6(c) below to the extent
necessary to ensure that it is available for resales of Series B Notes (that are
Transfer Restricted Securities) acquired by Broker-Dealers for their own
accounts as a result of market-making activities or other trading activities,
and to ensure that it conforms with the requirements of this Agreement, the Act
and the policies, rules and regulations of the Commission as announced from time
to time, for a period of 180 days from the date on which the Exchange Offer
Registration Statement is declared effective or such shorter period that will
terminate when all Notes covered by the Exchange Offer Registration Statement
have been exchanged in the Exchange Offer.

         The Company shall provide sufficient copies of the latest version of
such Prospectus to Broker-Dealers promptly upon request at any time during such
180 day period in order to facilitate such resales.

SECTION 4 SHELF REGISTRATION

         (a) Shelf Registration. If (i) the Company is not required to file the
Exchange Offer Registration Statement or permitted to Consummate the Exchange
Offer because the Exchange Offer is not permitted by applicable law or
Commission policy (after the procedures set forth in Section 6(a) below have
been complied with) or (ii) any Holder of Transfer Restricted Securities that is
a "qualified institutional buyer," as such term is defined in Rule 144A under
the Act shall notify the Company prior to the 20th day following the
Consummation of the Exchange Offer that such Holder (A) is prohibited by
applicable law or Commission policy from participating in the Exchange Offer, or
(B) may not resell the Series B Notes acquired by it in the Exchange Offer to
the public without delivering a prospectus and that the Prospectus contained in
the Exchange Offer Registration Statement is not appropriate or available for
such resales by such Holder, or (C) is a Broker-Dealer and holds Series A Notes
acquired directly from the Company or an affiliate of the Company, the Company
shall, in lieu of, or in the event of the occurrence of the matters specified in
clause (ii) above, in addition to effecting the registration of the Series B
Notes pursuant to the Exchange Offer Registration Statement, use commercially
reasonable best efforts to:

                  (i) cause to be filed with the Commission a shelf registration
         statement pursuant to Rule 415 under the Act, which may be an amendment
         to the Exchange Offer

                                       5
<PAGE>

         Registration Statement (in either event, the "Shelf Registration
         Statement") on or prior to the earlier to occur of (A) the 30th day
         after the date on which the Company determines that it is not required
         to file the Exchange Offer Registration Statement or permitted to
         Consummate the Exchange Offer or, if later, 300 days after the Closing
         Date and (B) the 30th day after the date on which the Company receives
         notice from a Holder of Transfer Restricted Securities as contemplated
         by clause (ii) of paragraph (a) above or, if later, 300 days after the
         Closing Date (such earlier date being the "Shelf Filing Deadline"),
         which Shelf Registration Statement shall provide for resales of all
         Transfer Restricted Securities the Holders of which shall have provided
         the information required pursuant to Section 4(b) hereof; and

                  (ii) cause such Shelf Registration Statement to be declared
         effective by the Commission on or before the 90th day after the Shelf
         Filing Deadline.

                  (iii) Notwithstanding the foregoing, the Company shall not be
         required to file a Shelf Registration Statement pursuant to this
         Section 4(a) if the Company is not able to comply, after exercising
         commercially reasonable best efforts, with the requirements of the Act
         or Commission policy with respect to the Shelf Registration Statement.
         The 300 and 90 day periods referred to clauses (i) and (ii) of this
         Section 4(a) shall include any period during which the Company is
         unable to file a Shelf Registration Statement pursuant to the previous
         sentence.

The Company shall use commercially reasonable best efforts to keep such Shelf
Registration Statement continuously effective, supplemented and amended as
required by the provisions of Sections 6(b) and (c) hereof to the extent
necessary to ensure that it is available for resales of Notes by the Holders of
Transfer Restricted Securities entitled to the benefit of this Section 4(a), and
to ensure that it conforms with the requirements of this Agreement, the Act and
the policies, rules and regulations of the Commission as announced from time to
time, until the earlier to occur of the expiration of the Rule 144(k) Period or
such time as all Notes covered by the Shelf Registration Statement cease to be
Transfer Restricted Securities.

         (b) Provision by Holders of Certain Information in Connection with the
Shelf Registration Statement. No Holder of Transfer Restricted Securities may
include any of its Transfer Restricted Securities in any Shelf Registration
Statement pursuant to this Agreement unless and until such Holder furnishes to
the Company in writing, within 10 business days after receipt of a request
therefor, such information as the Company may reasonably request for use in
connection with any Shelf Registration Statement or Prospectus or preliminary
Prospectus included therein. No Holder of Transfer Restricted Securities shall
be entitled to additional interest pursuant to Section 5 hereof unless and until
such Holder shall have used its best efforts to provide all such reasonably
requested information. Each Holder as to which any Shelf Registration Statement
is being effected agrees to furnish promptly to the Company all information
required to be disclosed in order to make the information previously furnished
to the Company by such Holder not materially misleading.

                                       6
<PAGE>

SECTION 5 ADDITIONAL INTEREST

         If (i) any of the Registration Statements required by this Agreement is
not filed with the Commission on or prior to the date specified for such filing
in Sections 3(a) and 4(a), as applicable, (ii) any of such required Registration
Statements has not been declared effective by the Commission on or prior to the
date specified for such effectiveness in Sections 3(a) and 4(a), as applicable,
(the "Effectiveness Target Date"), (iii) the Exchange Offer has not been
consummated within 30 business days, or longer, if required by the federal
securities laws, after the Effectiveness Target Date with respect to the
Exchange Offer Registration Statement, or (iv) any Registration Statement
required by this Agreement is filed and declared effective but shall thereafter
cease to be effective or fail to be usable for its intended purpose without
being succeeded within five business days by a post-effective amendment to such
Registration Statement that cures such failure and that is itself immediately
declared effective (each such event referred to in clauses (i) through (iv), a
"Registration Default"), the Company agrees to pay additional interest to each
Holder of Transfer Restricted Securities with respect to the first 90-day period
immediately following the occurrence of such Registration Default, in an amount
equal to $.05 per week per $1,000 principal amount of Transfer Restricted
Securities held by such Holder for each week or portion thereof that the
Registration Default continues. The amount of the additional interest shall
increase by an additional $.05 per week per $1,000 in principal amount of
Transfer Restricted Securities with respect to each subsequent 90-day period
until all Registration Defaults have been cured, up to a maximum amount of
additional interest of $.20 per week per $1,000 principal amount of Transfer
Restricted Securities. The Company shall in no event be required to pay
additional interest for more than one Registration Default at any given time.
All accrued additional interest shall be paid to Record Holders by the Company
by wire transfer of immediately available funds or by federal funds check on
each Interest Payment Date, as provided in the Indenture. Notwithstanding
anything to the contrary set forth herein, (1) upon filing of the Exchange Offer
Registration Statement or, if applicable, the Shelf Registration Statement) in
the case of (i) above, (2) upon the effectiveness of the Exchange Offer
Registration Statement or, if applicable, the Shelf Registration Statement, in
the case of (ii) above, (3)) upon consummation of the Exchange Offer, in the
case of (iii) above, or (4) upon the filing of a post-effective amendment to the
Registration Statement or an additional Registration Statement that causes the
Exchange Offer Registration Statement or, if applicable, the Shelf Registration
Statement to again be declared effective or made usable in the case of (iv)
above, the accrual of additional interest with respect to the Transfer
Restricted Securities as a result of such clauses (i), (ii), (iii) or (iv), as
applicable, shall cease.

         All payment obligations of the Company set forth in the preceding
paragraph that are outstanding with respect to any Transfer Restricted Security
at the time such security ceases to be a Transfer Restricted Security shall
survive until such time as all such payment obligations with respect to such
Security shall have been satisfied in full; provided, however, that the
additional interest shall cease to accrue on the day immediately prior to the
date such Transfer Restricted Securities cease to be Transfer Restricted
Securities.

         The additional interest set forth above shall be the exclusive monetary
remedy available to the Holders of Transfer Restricted Securities for each
Registration Default.

                                       7
<PAGE>

SECTION 6 REGISTRATION PROCEDURES

         (a) Exchange Offer Registration Statement. In connection with the
Exchange Offer, the Company shall comply with all of the provisions of Section
6(c) below, shall use commercially reasonable best efforts to effect such
exchange to permit the sale of Transfer Restricted Securities being sold in
accordance with the intended method or methods of distribution thereof, and
shall comply with all of the following provisions:

                  (i) If in the reasonable opinion of counsel to the Company
         there is a question as to whether the Exchange Offer is permitted by
         applicable law, the Company hereby agrees to seek a no-action letter or
         other favorable decision from the Commission allowing the Company to
         Consummate an Exchange Offer for such Series A Notes. The Company
         hereby agrees to pursue the issuance of such a decision to the
         Commission staff level but shall not be required to take commercially
         unreasonable action to effect a change of Commission policy. The
         Company hereby agrees however, to (A) participate in telephonic
         conferences with the Commission, (B) deliver to the Commission staff an
         analysis prepared by counsel to the Company setting forth the legal
         bases, if any, upon which such counsel has concluded that such an
         Exchange Offer should be permitted and (C) diligently pursue a
         resolution (which need not be favorable) by the Commission staff of
         such submission.

                  (ii) As a condition to its participation in the Exchange Offer
         pursuant to the terms of this Agreement, each Holder of Transfer
         Restricted Securities shall furnish, upon the request of the Company,
         prior to the Consummation thereof, a written representation to the
         Company (which may be contained in the letter of transmittal
         contemplated by the Exchange Offer Registration Statement) to the
         effect that (A) it is not an affiliate of the Company, (B) it is not
         engaged in, and does not intend to engage in, and has no arrangement or
         understanding with any Person to participate in, a distribution of the
         Series B Notes to be issued in the Exchange Offer and (C) it is
         acquiring the Series B Notes in its ordinary course of business. In
         addition, all such Holders of Transfer Restricted Securities shall
         otherwise cooperate in the Company's preparations for the Exchange
         Offer. Each Holder hereby acknowledges and agrees that any
         Broker-Dealer and any such Holder using the Exchange Offer to
         participate in a distribution of the securities to be acquired in the
         Exchange Offer (A) could not under Commission policy as in effect on
         the date of this Agreement rely on the position of the Commission
         enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and
         Exxon Capital Holdings Corporation (available May 13, 1988), as
         interpreted in the Commission's letter to Shearman & Sterling dated
         July 2, 1993, and similar no-action letters (including any no-action
         letter obtained pursuant to clause (i) above), and (B) must comply with
         the registration and prospectus delivery requirements of the Act in
         connection with a secondary resale transaction and that such a
         secondary resale transaction should be covered by an effective
         Registration Statement containing the selling security holder
         information required by Item 507 or 508, as applicable, of Regulation
         S-K if the resales are of Series B Notes obtained by such Holder in
         exchange for Series A Notes acquired by such Holder directly from the
         Company.

                                       8
<PAGE>

                  (iii) Prior to the effectiveness of the Exchange Offer
         Registration Statement, the Company shall provide a supplemental letter
         to the Commission (A) stating that the Company is registering the
         Exchange Offer in reliance on the position of the Commission enunciated
         in Exxon Capital Holdings Corporation (available May 13, 1988), Morgan
         Stanley and Co., Inc. (available June 5, 1991) and, if applicable, any
         no-action letter obtained pursuant to clause (i) above and (B)
         including a representation that the Company has not entered into any
         arrangement or understanding with any Person to distribute the Series B
         Notes to be received in the Exchange Offer and that, to the best of the
         Company's information and belief, each Holder participating in the
         Exchange Offer is acquiring the Series B Notes in its ordinary course
         of business and has no arrangement or understanding with any Person to
         participate in the distribution of the Series B Notes received in the
         Exchange Offer.

         (b) Shelf Registration Statement. In connection with the Shelf
Registration Statement, the Company shall comply with all the provisions of
Section 6(c) below and shall use all commercially reasonable best efforts to
effect such registration to permit the sale of the Transfer Restricted
Securities being sold in accordance with the intended method or methods of
distribution thereof, and pursuant thereto, the Company will prepare and file
with the Commission, in accordance with the terms set forth herein, a
Registration Statement relating to the registration on any appropriate form
under the Act, which form shall be available for the sale of the Transfer
Restricted Securities in accordance with the intended method or methods of
distribution thereof.

         (c) General Provisions. In connection with any Registration Statement
and any Prospectus required by this Agreement to permit the sale or resale of
Transfer Restricted Securities (including, without limitation, any Registration
Statement and the related Prospectus required to permit resales of Notes by
Broker-Dealers), the Company shall:

                  (i) use commercially reasonable best efforts to keep such
         Registration Statement continuously effective and provide all requisite
         financial statements for the period specified in Section 3 or 4 of this
         Agreement, as applicable; upon the occurrence of any event that would
         cause any such Registration Statement or the Prospectus contained
         therein (A) to contain a material misstatement or omit to state a
         material fact necessary to make the statements therein not misleading
         or (B) not to be effective and usable for resale of Transfer Restricted
         Securities during the period required by this Agreement, the Company
         shall file promptly an appropriate amendment to such Registration
         Statement, in the case of clause (A), correcting any such misstatement
         or omission, and, in the case of either clause (A) or (B), use
         commercially reasonable best efforts to cause such amendment to be
         declared effective and such Registration Statement and the related
         Prospectus to become usable for their intended purpose(s) as soon as
         practicable thereafter. Notwithstanding the foregoing, at any time
         after Consummation of the Exchange Offer, the Company may allow the
         Shelf Registration Statement to cease to become effective and usable if
         (A) the board of directors of the Company determines in good faith that
         it is in the best interests of the Company not to disclose the
         existence of or facts surrounding any proposed or pending material
         corporate transaction involving the Company, and the Company notifies
         the Holders within two business days after the Board of Directors makes
         such determination or (B) the Prospectus contained in the Shelf

                                       9
<PAGE>

         Registration Statement contains an untrue statement of a material fact
         or omits to state a material fact necessary in order to make the
         statements therein, in light of the circumstances under which they were
         made, not misleading; provided that the Rule 144(k) Period referred to
         in Section 4(a) hereof during which the Shelf Registration Statement is
         required to be effective and usable shall be extended by the number of
         days during which such Registration Statement was not effective or
         usable pursuant to the foregoing provisions;

                  (ii) subject to Section 6(c)(i), prepare and file with the
         Commission such amendments and post-effective amendments to the
         Registration Statement as may be necessary to keep the Registration
         Statement effective for the applicable period set forth in Section 3 or
         4 hereof, as applicable, or such shorter period as will terminate when
         all Transfer Restricted Securities covered by such Registration
         Statement have been sold; cause the Prospectus to be supplemented by
         any required Prospectus supplement, and as so supplemented to be filed
         pursuant to Rule 424 under the Act, and to comply fully with the
         applicable provisions of Rules 424 and 430A under the Act in a timely
         manner; and comply with the provisions of the Act with respect to the
         disposition of all Notes covered by such Registration Statement during
         the applicable period in accordance with the intended method or methods
         of distribution by the sellers thereof set forth in such Registration
         Statement or supplement to the Prospectus;

                  (iii) in the case of a Shelf Registration Statement, advise
         the underwriter(s), if any, and selling Holders of Transfer Restricted
         Securities and, if requested by such Persons, to confirm such advice in
         writing (which notice shall not contain any material non-public
         information, unless such Holder agrees to keep such information
         confidential), (A) when the Prospectus or any Prospectus supplement or
         post-effective amendment has been filed, and, with respect to any
         Registration Statement or any post-effective amendment thereto, when
         the same has become effective, (B) of any request by the Commission for
         amendments to the Registration Statement or amendments or supplements
         to the Prospectus or for additional information relating thereto, (C)
         of the issuance by the Commission of any stop order suspending the
         effectiveness of the Registration Statement under the Act or of the
         suspension by any state securities commission of the qualification of
         the Transfer Restricted Securities for offering or sale in any
         jurisdiction, or the initiation of any proceeding for any of the
         preceding purposes and (D) of the existence of any fact or the
         happening of any event (the nature of which need not be disclosed) that
         makes any statement of a material fact made in the Registration
         Statement, the Prospectus, any amendment or supplement thereto, or any
         document incorporated by reference therein untrue, or that requires the
         making of any additions to or changes in the Registration Statement or
         the Prospectus in order to make the statements therein not misleading.
         If at any time the Commission shall issue any stop order suspending the
         effectiveness of the Registration Statement, or any state securities
         commission or other regulatory authority shall issue an order
         suspending the qualification or exemption from qualification of the
         Transfer Restricted Securities under state securities or Blue Sky laws,
         the Company shall use commercially reasonable best efforts to obtain
         the withdrawal or lifting of such order at the earliest possible time;

                                       10
<PAGE>

                  (iv) in the case of a Shelf Registration Statement, upon
         written request, furnish to each of the selling or exchanging Holders
         of Transfer Restricted Securities and each of the underwriter(s), if
         any, before filing with the Commission, copies of any Registration
         Statement or any related Prospectus included therein or any amendments
         or supplements to any such Registration Statement or Prospectus (other
         than documents incorporated by reference after the initial filing of
         such Registration Statement or Prospectus) (which Registration
         Statement or Prospectus shall not contain any material non-public
         information, unless such Holder agrees to keep such information
         confidential), which documents will be subject to the review of such
         Holders and underwriter(s), if any, for a period of at least five
         business days, and the Company will not file any such Registration
         Statement or Prospectus or any amendment or supplement to any such
         Registration Statement or Prospectus if selling Holders of 25% in
         aggregate principal amount of Transfer Restricted Securities covered by
         such Registration Statement or the underwriter(s), if any, shall
         reasonably object within five business days after receipt thereof. A
         selling Holder or underwriter, if any, shall be deemed to have
         reasonably objected to such filing if such Registration Statement,
         amendment, Prospectus or supplement, as applicable, as proposed to be
         filed, contains a material misstatement or omission;

                  (v) in the case of a Shelf Registration Statement, make
         available at reasonable times at the Company's principal place of
         business for inspection by the selling Holders of Transfer Restricted
         Securities, any underwriters participating in any disposition pursuant
         to such Registration Statement, and any attorney or accountant retained
         by such selling Holders or any of the underwriter(s) who shall certify
         to the Company that they have a current intention to sell Transfer
         Restricted Securities pursuant to a Shelf Registration Statement, such
         financial and other information of the Company as reasonably requested
         and cause the Company's officers, directors and employees to respond to
         such inquiries as shall be reasonably necessary, in the reasonable
         judgment of counsel to such Holders, to conduct a reasonable
         investigation; 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
         in writing 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
         the subpoena or order of any court or other governmental agency or body
         having jurisdiction over the matter (subject to the requirements of
         such order, only after such Person shall have given the Company prompt
         prior written notice of such requirement and such disclosure is limited
         to such portion of the confidential information that such Person is
         advised by counsel is legally required to be disclosed and such Person
         will exercise reasonable efforts to obtain assurances that confidential
         treatment will be afforded such information), or (C) such information
         is required to be set forth in such Registration Statement or the
         Prospectus included therein or in an amendment to such Registration
         Statement or an amendment or supplement to such Prospectus in order
         that such Registration Statement, Prospectus, amendment or supplement,
         as the case may be, does not contain an untrue statement of a material
         fact or omit to state therein a material fact required to be stated
         therein or necessary to make the statements therein not misleading;

                                       11
<PAGE>

                  (vi) in the case of a Shelf Registration Statement, if
         requested by any selling Holders of Transfer Restricted Securities or
         the underwriter(s), if any, promptly incorporate in any Registration
         Statement or Prospectus, pursuant to a supplement or post-effective
         amendment if necessary, such information as such selling Holders and
         underwriter(s), if any, may reasonably request to have included
         therein, including, without limitation, information relating to the
         "Plan of Distribution" of the Transfer Restricted Securities,
         information with respect to the principal amount of Transfer Restricted
         Securities being sold to such underwriter(s), the purchase price being
         paid therefor and any other terms of the offering of the Transfer
         Restricted Securities to be sold in such offering; and make all
         required filings of such Prospectus supplement or post-effective
         amendment as soon as practicable after the Company is notified of the
         matters to be incorporated in such Prospectus supplement or
         post-effective amendment;

                  (vii) in the case of a Shelf Registration Statement, upon
         request, furnish to each selling Holder of Transfer Restricted
         Securities and each of the underwriter(s), if any, without charge, at
         least one copy of the Registration Statement, as first filed with the
         Commission, and of each amendment thereto, including all documents
         incorporated by reference therein and all exhibits unless such document
         is available through the Commission's website;

                  (viii) in the case of a Shelf Registration Statement, deliver
         to each selling Holder of Transfer Restricted Securities and each of
         the underwriter(s), if any, without charge, as many copies of the
         Prospectus (including each preliminary prospectus) and any amendment or
         supplement thereto as such Persons reasonably may request; subject to
         Section 6(c)(i), the Company hereby consents to the use of the
         Prospectus and any amendment or supplement thereto by each of the
         selling Holders and each of the underwriter(s), if any, in connection
         with the offering and the sale of the Transfer Restricted Securities
         covered by the Prospectus or any amendment or supplement thereto;

                  (ix) in the case of a Shelf Registration Statement requested
         by an Initial Purchaser, enter into such customary agreements
         (including an underwriting agreement), and make such customary
         representations and warranties, and take all such other customary
         actions in connection therewith in order to expedite or facilitate the
         disposition of the Transfer Restricted Securities pursuant to any
         Registration Statement contemplated by this Agreement, all to such
         extent as may be reasonably requested by the Initial Purchaser or, in
         the case of registration for resale of Transfer Restricted Securities
         pursuant to the Shelf Registration Statement, by any Holder or Holders
         of Transfer Restricted Securities who holds at least 25% in aggregate
         principal amount of such class of Transfer Restricted Securities;
         provided, that, the Company shall not be required to enter into any
         such agreement more than once with respect to all of the Transfer
         Restricted Securities and, in the case of a Shelf Registration
         Statement, may delay entering into such agreement if (1) the Board of
         Directors of the Company determines in good faith that it is in the
         best interests of the Company not to disclose the existence of or facts
         surrounding any proposed or pending material corporate transaction
         involving the Company or (2) the General Counsel of the Company
         determines in good faith that it is in the best interest of the Company
         not to disclose the existence of or facts surrounding any proposed or
         pending material corporate transaction involving the Company, and the

                                       12
<PAGE>

         Company notifies the Holders within two business days after the General
         Counsel makes such determination; provided that such determination is
         based on a written opinion of outside counsel that it would be illegal
         to resell or exchange the Notes pursuant to the Registration Statement
         unless such facts are publicly disclosed; and whether or not an
         underwriting agreement is entered into and whether or not the
         registration is an Underwritten Registration, the Company shall:

                           (A) upon request, furnish to the Initial Purchasers,
                  the Holders of Transfer Restricted Securities who hold at
                  least 25% in aggregate principal amount of such class of
                  Transfer Restricted Securities (in the case of a Shelf
                  Registration Statement), and each underwriter, if any, in such
                  substance and scope as they may request and as are customarily
                  made in connection with an offering of debt securities
                  pursuant to a Registration Statement upon the effective date
                  of any Registration Statement (and if such Registration
                  Statement contemplates an Underwritten Offering of Transfer
                  Restricted Securities, upon the date of the closing under the
                  underwriting agreement related thereto):

                                    (1) a certificate, dated the date of the
                           effectiveness of the Shelf Registration Statement,
                           signed by (y) the Chairman of the Board, the
                           President or any Vice President and (z) the Chief
                           Financial Officer or any Treasurer or Assistant
                           Treasurer of the Company confirming, as of the date
                           thereof, the matters set forth in paragraph (h) of
                           Section 7 of the Purchase Agreement and such other
                           matters as such parties may reasonably request;

                                    (2) an opinion, dated the date of the
                           effectiveness of the Shelf Registration Statement, of
                           counsel for the Company covering the matters set
                           forth in paragraphs (a), (b) and (c) of Section 7 of
                           the Purchase Agreement and such other matter as such
                           parties may reasonably request, and in any event
                           including a statement to the effect that such counsel
                           has participated in conferences with officers and
                           other representatives of the Company, representatives
                           of the independent public accountants for the
                           Company, the Initial Purchasers' representatives and
                           the Initial Purchasers' counsel in connection with
                           the preparation of such Registration Statement and
                           the related Prospectus and have considered the
                           matters required to be stated therein and the
                           statements contained therein, although such counsel
                           has not independently verified the accuracy,
                           completeness or fairness of such statements; and that
                           such counsel advises that, on the basis of the
                           foregoing (relying as to materiality upon facts
                           provided to such counsel by officers and other
                           representatives of the Company and without
                           independent check or verification), no facts came to
                           such counsel's attention that caused such counsel to
                           believe that the applicable Registration Statement,
                           at the time such Registration Statement or any
                           post-effective amendment thereto became effective,
                           contained an untrue statement of a material fact or
                           omitted to state a material fact required to be
                           stated therein or necessary to make the statements
                           therein not misleading, or that the Prospectus
                           contained in such Registration Statement as of its
                           date, contained an untrue statement of a material
                           fact or omitted to state a material fact necessary in
                           order to make the statements therein, in light of the
                           circumstances under which they were made, not

                                       13
<PAGE>

                           misleading. Without limiting the foregoing, such
                           counsel may state further that such counsel assumes
                           no responsibility for, and has not independently
                           verified, the accuracy, completeness or fairness of
                           the exhibits, financial statements, notes and
                           schedules and other financial and statistical data
                           included in any Registration Statement contemplated
                           by this Agreement or the related Prospectus; and

                                    (3) a customary comfort letter, dated the
                           date of the effectiveness of the Shelf Registration
                           Statement, from the Company's independent
                           accountants, in the customary form and covering
                           matters of the type customarily covered in comfort
                           letters delivered to underwriters in connection with
                           primary underwritten offerings, and affirming the
                           matters set forth in the comfort letters delivered
                           pursuant to Section 7 of the Purchase Agreement,
                           without exception;

                           (B) set forth in full or incorporated by reference in
                  the underwriting agreement, if any, the indemnification
                  provisions and procedures of Section 8 hereof with respect to
                  all parties to be indemnified pursuant to said Section; and

                           (C) deliver such other documents and certificates as
                  may be reasonably requested by such parties to evidence
                  compliance with clause (A) above and with any customary
                  conditions contained in the underwriting agreement or other
                  agreement entered into by the Company pursuant to this clause
                  (ix), if any.

                  (x) in the case of a Shelf Registration Statement, prior to
         any public offering of Transfer Restricted Securities, cooperate with
         the selling Holders of Transfer Restricted Securities, their
         underwriters, if any, and their respective counsel in connection with
         the registration and qualification of the Transfer Restricted
         Securities under the securities or Blue Sky laws of such jurisdictions
         as such selling Holders or underwriter(s) may reasonably request and do
         any and all other acts or things necessary or advisable to enable the
         disposition in such jurisdictions of the Transfer Restricted Securities
         covered by the Shelf Registration Statement; provided, however, that
         the Company shall not be required to register or qualify as a foreign
         corporation where it is not now so qualified or to take any action that
         would subject it to the service of process in suits or to taxation,
         other than as to matters and transactions relating to the Notes, in any
         jurisdiction where it is not now so subject;

                  (xi) shall issue, upon the request of any Holder of Series A
         Notes covered by the Shelf Registration Statement, Series B Notes,
         having an aggregate principal amount equal to the aggregate principal
         amount of Series A Notes surrendered to the Company by such Holder in
         exchange therefor or being sold by such Holder; such Series B Notes to
         be registered in the name of such Holder or in the name of the
         purchaser(s) of such Notes, as the case may be; in return, the Series A
         Notes held by such Holder shall be surrendered to the Company for
         cancellation;

                  (xii) cooperate with the selling Holders of Transfer
         Restricted Securities and the underwriter(s), if any, to facilitate the
         timely preparation and delivery of certificates representing Transfer
         Restricted Securities to be sold and not bearing any restrictive
         legends; and enable such Transfer Restricted Securities to be in such
         denominations and

                                       14
<PAGE>

         registered in such names as the selling Holders or the underwriter(s),
         if any, may request at least two business days prior to any sale of
         Transfer Restricted Securities made by such underwriter(s);

                  (xiii) use commercially reasonable best efforts to cause the
         Transfer Restricted Securities covered by the Registration Statement to
         be registered with or approved by such other governmental agencies or
         authorities as may be necessary to enable the seller or sellers thereof
         or the underwriter(s), if any, to consummate the disposition of such
         Transfer Restricted Securities, subject to the proviso contained in
         clause (xi) above;

                  (xiv) subject to clause (c)(i) above, if any fact or event
         contemplated by clause (c)(iii)(D) above shall exist or have occurred,
         prepare a supplement or post-effective amendment to the Registration
         Statement or related Prospectus or any document incorporated therein by
         reference or file any other required document so that, as thereafter
         delivered to the purchasers of Transfer Restricted Securities, the
         Prospectus will not contain an untrue statement of a material fact or
         omit to state any material fact required to be stated therein or
         necessary to make the statements therein not misleading;

                  (xv) provide a CUSIP number for all Transfer Restricted
         Securities not later than the effective date of the Registration
         Statement and provide the Trustee under the Indenture with printed
         certificates for the Transfer Restricted Securities which are in a form
         eligible for deposit with The Depository Trust Company;

                  (xvi) cooperate and assist in any filings required to be made
         with the NASD and in the performance of any due diligence investigation
         by any underwriter (including any "qualified independent underwriter")
         that is required to be retained in accordance with the rules and
         regulations of the NASD;

                  (xvii) otherwise use commercially reasonable best efforts to
         comply with all applicable rules and regulations of the Commission, and
         make generally available to its security holders, as soon as
         practicable, a consolidated earnings statement meeting the requirements
         of Rule 158 (which need not be audited) for the twelve-month period (A)
         commencing at the end of any fiscal quarter in which Transfer
         Restricted Securities are sold to underwriters in a firm or best
         efforts Underwritten Offering or (B) if not sold to underwriters in
         such an offering, beginning with the first month of the Company's first
         fiscal quarter commencing after the effective date of the Registration
         Statement;

                  (xviii) cause the Indenture to be qualified under the TIA not
         later than the effective date of the first Registration Statement
         required by this Agreement, and, in connection therewith, cooperate
         with the Trustee and the Holders of Notes to effect such changes to the
         Indenture as may be required for such Indenture to be so qualified in
         accordance with the terms of the TIA; and execute, and use commercially
         reasonable best efforts to cause the Trustee to execute, all documents
         that may be required to effect such changes and all other forms and
         documents required to be filed with the Commission to enable such
         Indenture to be so qualified in a timely manner; and

                                       15
<PAGE>

                  (xix) provide promptly to each Holder upon request each
         document filed with the Commission pursuant to the requirements of
         Section 13 and Section 15 of the Exchange Act unless such document is
         available through the Commission's website.

         Each Holder agrees by acquisition of a Transfer Restricted Security
that, upon receipt of any notice from the Company of the existence of any fact
of the kind described in Section 6(c)(iii)(D) hereof, such Holder will forthwith
discontinue disposition and will use its commercially reasonable best efforts to
cause any underwriter to forthwith discontinue disposition of Transfer
Restricted Securities pursuant to the applicable Registration Statement until
such Holder's receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 6(c)(xiv) hereof, or until it is advised in writing (the
"Advice") by the Company that the use of the Prospectus may be resumed, and has
received copies of any additional or supplemental filings that are incorporated
by reference in the Prospectus. If so directed by the Company, each Holder will
deliver to the Company (at the Company's expense) all copies, other than
permanent file copies then in such Holder's possession, of the Prospectus
covering such Transfer Restricted Securities that was current at the time of
receipt of such notice. In the event the Company shall give any such notice, the
time period regarding the effectiveness of such Registration Statement set forth
in Section 3 or 4 hereof, as applicable, shall be extended by the number of days
during the period from and including the date of the giving of such notice
pursuant to Section 6(c)(iii)(D) hereof to and including the date when each
selling Holder covered by such Registration Statement shall have received the
copies of the supplemented or amended Prospectus contemplated by Section
6(c)(xiv) hereof or shall have received the Advice.

         The Company may require each Holder of Transfer Restricted Securities
as to which any registration is being effected to furnish to the Company such
information regarding such Holder and such Holder's intended method of
distribution of the applicable Transfer Restricted Securities as the Company may
from time to time reasonably request in writing, but only to the extent that
such information is required in order to comply with the Act. Each such Holder
agrees to notify the Company as promptly as practicable of (i) any inaccuracy or
change in information previously furnished by such Holder to the Company or (ii)
the occurrence of any event, in either case, as a result of which any Prospectus
relating to such registration contains or would contain an untrue statement of a
material fact regarding such Holder or such Holder's intended method of
distribution of the applicable Transfer Restricted Securities or omits to state
any material fact regarding such Holder or such Holder's intended method of
distribution of the applicable Transfer Restricted Securities required to be
stated therein or necessary to make the statements therein 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 Holder or the distribution of
the applicable Transfer Restricted 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 not misleading.

         Notwithstanding anything herein to the contrary, any party to this
Agreement (and any employee, representative, or other agent of any party to this
Agreement) may disclose to any and all Persons, without limitation of any kind,
the U.S. federal income tax treatment and tax structure of the transactions
contemplated by this Agreement (the "Transactions") and all

                                       16
<PAGE>

materials of any kind (including opinions or other tax analyses) that are
provided to it relating to such tax treatment and tax structure; provided,
however, that neither party (nor any employee, representative or other agent
thereof) shall disclose any information (a) that is not relevant to an
understanding of the U.S. federal income tax treatment or tax structure of the
Transactions or (b) to the extent such disclosure could result in a violation of
any federal or state securities laws.

SECTION 7 REGISTRATION EXPENSES

         (a) All expenses incident to the Company's performance of or compliance
with this Agreement will be borne by the Company, regardless of whether a
Registration Statement becomes effective, including without limitation: (i) all
registration and filing fees and expenses (including filings made by any Initial
Purchaser or Holder with the NASD (and, if applicable, the fees and expenses of
any "qualified independent underwriter" and its counsel that may be required by
the rules and regulations of the NASD)); (ii) all fees and expenses of
compliance with federal securities and state Blue Sky or securities laws; (iii)
all expenses of printing (including printing certificates for the Series B Notes
to be issued in the Exchange Offer and printing of Prospectuses), messenger and
delivery services and telephone; (iv) all fees and disbursements of counsel for
the Company and (v) all fees and disbursements of independent certified public
accountants of the Company (including the expenses of any special audit and
comfort letters required by or incident to such performance).

         The Company will, in any event, bear its internal expenses (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expenses of any annual audit and the
fees and expenses of any Person, including special experts, retained by the
Company.

         In connection with any Registration Statement required by this
Agreement (including, without limitation, the Exchange Offer Registration
Statement and the Shelf Registration Statement), the Company will reimburse the
Initial Purchasers and the Holders of Transfer Restricted Securities who are
tendering Notes into in the Exchange Offer and/or selling or reselling Notes or
Series B Notes pursuant to the "Plan of Distribution" contained in the Exchange
Offer Registration Statement or the Shelf Registration Statement, as applicable,
for the reasonable fees and disbursements not to exceed $10,000 of not more than
one counsel (who shall be Simpson Thacher & Bartlett LLP unless another firm
shall be chosen by the Holders of a majority in principal amount of the Transfer
Restricted Securities for whose benefit such Registration Statement is being
prepared).

SECTION 8 INDEMNIFICATION

         (a) The Company shall indemnify and hold harmless each Holder of
Transfer Restricted Securities, its officers and employees and each person, if
any, who controls any such Holders, within the meaning of the Securities Act,
from and against any loss, claim, damage or liability, joint or several, or any
action in respect thereof (including, but not limited to, any loss, claim,
damage, liability or action relating to purchases, sales and registration of
Notes), to which that Holder, officer, employee or controlling person may become
subject, under the Securities Act or otherwise, insofar as such loss, claim,
damage, liability or action arises out of, or is based upon, (i) any untrue
statement or alleged untrue statement of a material fact contained (A) in any

                                       17
<PAGE>

Registration Statement or Prospectus or in any amendment or supplement thereto
or (B) any roadshow or investor presentations made to investors by the Company
(whether in person or electronically ("Marketing Materials"), (ii) the omission
or alleged omission to state in any Registration Statement or Prospectus, or in
any amendment or supplement thereto, or in any Marketing Materials any material
fact required to be stated therein or necessary to make the statements therein
not misleading or (iii) any act or failure to act or any alleged act or failure
to act by any Holder in connection with, or relating in any manner to, the Notes
or the offering contemplated hereby, and which is included as part of or
referred to in any loss, claim, damage, liability or action arising out of or
based upon matters covered by clause (i) or (ii) above (provided that the
Company shall not be liable under this clause (iii) to the extent that it is
determined in a final judgment by a court of competent jurisdiction that such
loss, claim, damage, liability or action resulted directly from any such acts or
failures to act undertaken or omitted to be taken by such Holder through its
gross negligence or willful misconduct), and shall reimburse each Holder and
each such officer, employee or controlling person promptly upon demand for any
legal or other expenses reasonably incurred by that Holder, officer, employee or
controlling person in connection with investigating or defending or preparing to
defend against any such loss, claim, damage, liability or action as such
expenses are incurred; provided, however, that (I) the Company shall not be
liable in any such case to the extent that any such loss, claim, damage,
liability or action arises out of, or is based upon, any untrue statement or
alleged untrue statement or omission or alleged omission made in any
Registration Statement or Prospectus, or in any such amendment or supplement, or
in any Marketing Materials, in reliance upon and in conformity with written
information concerning such Holder furnished to the Company by or on behalf of
any Holder specifically for inclusion therein and (II) with respect to any
untrue statement or alleged untrue statement in, or omission or alleged omission
from, the preliminary prospectus, the foregoing indemnity agreement with respect
to the preliminary prospectus shall not inure to the benefit of any Holder (or
its directors, officers and employees and each person, if any, which controls
such Holder within the meaning of the Act) from whom the person asserting any
such losses, claims, damages or liabilities purchased Notes if (A) other than as
a result of noncompliance by the Company with the requirement of Section 6
hereof, a copy of a final prospectus was not sent or given by or on behalf of
such Holder to such person at or prior to the written confirmation of the sale
of the Notes to such person and (B) the final prospectus would have cured the
defect giving rise to such losses, claims, damages or liabilities. The foregoing
indemnity agreement is in addition to any liability which the Company may
otherwise have to any Holder or to any officer, employee or controlling person
of that Holder.

         (b) Each Holder, severally and not jointly, shall indemnify and hold
harmless the Company, its officers and employees, its directors, and each
person, if any, who controls the Company within the meaning of the Securities
Act, from and against any loss, claim, damage or liability, joint or several, or
any action in respect thereof, to which the Company or any such director,
officer or controlling person may become subject, under the Securities Act or
otherwise, insofar as such loss, claim, damage, liability or action arises out
of, or is based upon, (i) any untrue statement or alleged untrue statement of a
material fact contained (A) in any Registration Statement or Prospectus, or in
any amendment or supplement thereto, or (B) in any Marketing Materials or (ii)
the omission or alleged omission to state in any Registration Statement or
Prospectus, or in any amendment or supplement thereto, or in any Marketing
Materials any material fact required to be stated therein or necessary to make
the statements therein not misleading, but in each case only to the extent that
the untrue statement or alleged untrue

                                       18
<PAGE>

statement or omission or alleged omission was made in reliance upon and in
conformity with written information concerning such Holders furnished to the
Company by or on behalf of that Holder specifically for inclusion therein, and
shall reimburse the Company and any such director, officer or controlling person
for any legal or other expenses reasonably incurred by the Company or any such
director, officer or controlling person in connection with investigating or
defending or preparing to defend against any such loss, claim, damage, liability
or action as such expenses are incurred. The foregoing indemnity agreement is in
addition to any liability which any Holder may otherwise have to the Company or
any such director, officer, employee or controlling person. The Company shall be
entitled to receive indemnities from underwriters, selling brokers, dealer
managers and similar securities industry professionals participating in the
distribution of such Registrable Securities to the same extent as provided above
with respect to information or affidavit furnished in writing by such Persons as
provided specifically for in any Prospectus or Registration Statement.

         (c) Promptly after receipt by an indemnified party under this Section 8
of notice of any claim or the commencement of any action, the indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying
party under this Section 8, notify the indemnifying party in writing of the
claim or the commencement of that action; provided, however, that the failure to
notify the indemnifying party shall not relieve it from any liability which it
may have under this Section 8 except to the extent it has been materially
prejudiced by such failure and, provided further, that the failure to notify the
indemnifying party shall not relieve it from any liability which it may have to
an indemnified party otherwise than under this Section 8. If any such claim or
action shall be brought against an indemnified party, and it shall notify the
indemnifying party thereof, the indemnifying party shall be entitled to
participate therein and, to the extent that it wishes, jointly with any other
similarly notified indemnifying party, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party. After notice from the
indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 8 for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense
thereof other than reasonable costs of investigation; provided, however, that
any indemnified party shall have the right to employ counsel to represent the
indemnified party and its respective directors, officers, employees and
controlling persons who may be subject to liability arising out of any claim in
respect of which indemnity may be sought by the indemnified party against the
Company under this Section 8 if, such indemnified party has been advised by its
outside counsel that it is advisable for the indemnified party and those
directors, officers, employees and controlling persons to be jointly represented
by separate counsel, and in that event the fees and expenses of such separate
counsel will be paid by the Company. In no event shall the indemnifying parties
be liable for the fees and expenses of more than one separate firm or attorney
(in addition to one local counsel) at any one time for all such indemnified
parties in connection with any one action or separate but substantially similar
or related action in the same jurisdiction arising out of the same general
allegations or circumstances. No indemnifying party shall (i) without the prior
written consent of the indemnified parties (which consent shall not be
unreasonably withheld), settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release

                                       19
<PAGE>

of each indemnified party from all liability arising out of such claim, action,
suit or proceeding, or (ii) be liable for any settlement of any such action
effected without its written consent (which consent shall not be unreasonably
withheld), but if settled with the consent of the indemnifying party or if there
be a final judgment of the plaintiff in any such action, the indemnifying party
agrees to indemnify and hold harmless any indemnified party from and against any
loss or liability by reason of such settlement or judgment.

         (d) If the indemnification provided for in this Section 8 shall for any
reason be unavailable to or insufficient to hold harmless an indemnified party
under Section 8(a) or 8(b) in respect of any loss, claim, damage or liability,
or any action in respect thereof, referred to therein, then each indemnifying
party shall, in lieu of indemnifying such indemnified party, contribute to the
amount paid or payable by such indemnified party as a result of such loss,
claim, damage or liability, or action in respect thereof, (i) in such proportion
as shall be appropriate to reflect the relative benefits received by the
Company, on the one hand, and the Holders on the other, from the offering of the
Notes or (ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the Company, on the one hand and the Holders on the other with respect to the
statements or omissions which resulted in such loss, claim, damage or liability,
or action in respect thereof, as well as any other relevant equitable
considerations. The relative benefits received by the Company, on the one hand
and the Holders on the other with respect to such offering shall be deemed to be
in the same proportion as the total net proceeds from the offering of the Series
A Notes purchased under the Purchase Agreement (before deducting expenses)
received by the Company, on the one hand, and the total discounts and
commissions received by the Holders with respect to the Series A Notes purchased
under this Agreement, on the other hand, bear to the total gross proceeds from
the offering of the Series A Notes under the Purchase Agreement. The relative
fault shall be determined by reference to 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 the Company or the Holders, the intent
of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company and
the Holders agree that it would not be just and equitable if contributions
pursuant to this Section 8(d) were to be determined by pro rata allocation (even
if the Holders were treated as one entity for such purpose) or by any other
method of allocation which does not take into account the equitable
considerations referred to herein. The amount paid or payable by an indemnified
party as a result of the loss, claim, damage or liability, or action in respect
thereof, referred to above in this Section shall be deemed to include, for
purposes of this Section 8(d), any legal or other expenses reasonably incurred
by such indemnified party in connection with investigating or defending any such
action or claim. Notwithstanding the provisions of this Section 8(d), no Holder
shall be required to contribute any amount in excess of the amount by which the
net proceeds received by it in connection with its sale of Notes exceeds the
amount of any damages which such Holder has otherwise paid or become liable to
pay by reason of any 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'
obligations to contribute as provided in this Section 8(d) are several and not
joint.

                                       20
<PAGE>

SECTION 9 RULE 144A

         The Company hereby agrees with each Holder of Transfer Restricted
Securities, during any period prior to the date no Transfer Restricted
Securities remain outstanding and in which the Company is not subject to Section
13 or 15(d) of the Exchange Act, to make available to any Holder or beneficial
owner of Transfer Restricted Securities, in connection with any sale thereof and
any prospective purchaser of such Transfer Restricted Securities from such
Holder or beneficial owner, the information required by Rule 144A(d)(4) under
the Act in order to permit resales of such Transfer Restricted Securities
pursuant to Rule 144A.

SECTION 10 PARTICIPATION IN UNDERWRITTEN REGISTRATIONS

         No Holder may participate in any Underwritten Registration hereunder
unless such Holder (a) agrees to sell such Holder's Transfer Restricted
Securities on the basis provided in any underwriting arrangements approved by
the Persons entitled hereunder to approve such arrangements and (b) completes
and executes all reasonable questionnaires, powers of attorney, indemnities,
underwriting agreements, lock-up letters and other documents required under the
terms of such underwriting arrangements.

SECTION 11 SELECTION OF UNDERWRITERS

         The Holders of Transfer Restricted Securities covered by the Shelf
Registration Statement who desire to do so may sell such Transfer Restricted
Securities in an Underwritten Offering at such Holders' expense. In any such
Underwritten Offering, the investment banker or investment bankers and manager
or managers that will administer the offering will be selected by the Company;
provided, that such investment bankers and managers must be reasonably
satisfactory to Holders of a majority of the outstanding principal amount of
Transfer Restricted Securities included in such offering.

SECTION 12 MISCELLANEOUS

         (a) Remedies. The Company agrees that monetary damages (including the
additional interests contemplated hereby) would not be adequate compensation for
any loss incurred by reason of a breach by it of the provisions of this
Agreement and hereby agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate.

         (b) No Inconsistent Agreements. The Company will not, on or after the
date of this Agreement, enter into any agreement with respect to its securities
that is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. The Company has not previously
entered into any agreement granting any registration rights with respect to its
securities to any Person that is inconsistent with the terms of this Agreement.
The rights granted to the Holders hereunder do not in any way conflict with and
are not inconsistent with the rights granted to the holders of the Company's
securities under any agreement in effect on the date hereof.

         (c) Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to or departures from
the provisions hereof may not be given unless the Company has obtained the
written consent of Holders of a majority

                                       21
<PAGE>

of the outstanding principal amount of Transfer Restricted Securities.
Notwithstanding the foregoing, a waiver or consent to departure from the
provisions hereof that relates exclusively to the rights of Holders whose
securities are being tendered pursuant to the Exchange Offer and that does not
affect directly or indirectly the rights of other Holders whose securities are
not being tendered pursuant to such Exchange Offer may be given by the Holders
of a majority of the outstanding principal amount of Transfer Restricted
Securities being tendered or registered.

         (d) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail
(registered or certified, return receipt requested), telex, telecopier, or air
courier guaranteeing overnight delivery:

                (i) if to a Holder, at the address set forth on the records of
         the Registrar under the Indenture, with a copy to the Registrar under
         the Indenture; and

                (ii) if to the Company:

                     PG&E Corporation
                     One Market, Spear Tower, Suite 2400
                     San Francisco, California 94105
                     Attention: Chief Counsel - Corporate (Fax: (415) 817-8225),

                     With a copy (not constituting notice) to:

                     Orrick, Herrington & Sutcliffe LLP
                     Old Federal Reserve Bank Building
                     400 Sansome Street
                     San Francisco, California 94111
                     Attention: Leslie P. Jay (Fax: (415) 773-5759)

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

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

         (f) Third Party Beneficiary. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right to
enforce such agreements directly to the extent they may deem such enforcement
necessary or advisable to protect their rights hereunder.

         (g) Successors and Assigns. This Agreement shall inure to the benefit
of and be binding upon the successors and assigns of each of the parties,
including without limitation and without the need for an express assignment,
subsequent Holders of Transfer Restricted Securities; provided, however, that
this Agreement shall not inure to the benefit of or be binding upon a successor
or assign of a Holder unless and to the extent such successor or assign acquired
Transfer Restricted Securities from such Holder. Nothing herein shall be deemed
to permit any

                                       22
<PAGE>

assignment, transfer or other disposition of Transfer Restricted Securities in
violation of the terms of the Indenture. If any transferee of any Holder shall
acquire Transfer Restricted Securities in any manner, whether by operation of
law or otherwise, such Transfer Restricted Securities shall be held subject to
all of the terms of this Agreement, and by taking and holding such Transfer
Restricted Securities such Person shall be conclusively deemed to have agreed to
be bound by and to perform all of the terms and provisions of this Agreement and
such Person shall be entitled to receive the benefits hereof.

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

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

         (g) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

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

         (i) Entire Agreement. This Agreement together with the other
Transaction Documents (as defined in the Purchase Agreement) is intended by the
parties as a final expression of their agreement and intended to be a complete
and exclusive statement of the agreement and understanding of the parties hereto
in respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Company with
respect to the Transfer Restricted Securities. This Agreement supersedes all
prior agreements and understandings among the parties with respect to such
subject matter.

                            [Signature pages follow]

                                       23
<PAGE>

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

                                    PG&E CORPORATION

                                    By: /s/ Peter A. Darbee
                                        _______________________________________
                                        Name: Peter A. Darbee
                                        Title: Senior Vice President and
                                               Chief Financial Officer

LEHMAN BROTHERS INC.
CITIGROUP GLOBAL MARKETS INC.
GOLDMAN, SACHS & CO.
MORGAN STANLEY & CO. INCORPORATED
BANC ONE CAPITAL MARKETS, INC.

BY LEHMAN BROTHERS INC.

By:   /s/ P. Adam Smalley
____________________________
      Authorized Representative

               [Signature Page to Registration Rights Agreement]

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