Document:

EXHIBIT 10.1

                                                                  EXECUTION COPY

                              AMENDED AND RESTATED
                         RESTRUCTURING SUPPORT AGREEMENT

     This  AMENDED AND  RESTATED  RESTRUCTURING  SUPPORT  AGREEMENT  is made and
entered into as of February 1, 2006 (the  "Agreement") by and among  PRG-Schultz
International,  Inc., a Georgia  corporation  ("PRG" or the "Company"),  and (i)
each of the undersigned  beneficial  owners (or investment  managers or advisors
for the  beneficial  owners) of the Notes (as defined below) and (ii) each other
beneficial owner (or investment manager or advisor for such beneficial owner) of
the Notes that executes a counterpart signature page to this Agreement after the
date  of  this  Agreement,   as  provided  herein  (each,  a  "Noteholder"   and
collectively, the "Noteholders").

                                    RECITALS:

     A. PRG has issued and outstanding  $125,000,000  aggregate principal amount
of its 4-3/4% Convertible  Subordinated Notes due 2006 (the "Notes") pursuant to
that certain indenture, dated as of November 26, 2001 (the "Indenture"), between
PRG (as successor in interest to The Profit Recovery Group International,  Inc.)
and SunTrust Bank, as trustee.

     B. The Noteholders  are beneficial  owners of the Notes (and/or are serving
as the  investment  advisors  or  managers  or in a  similar  capacity  for  the
beneficial  owners of such Notes,  having the power to enter into this Agreement
on behalf of such  beneficial  owners)  in the  respective  aggregate  principal
amounts  separately  disclosed to PRG on a confidential basis (provided that the
aggregate  principal amount of the holdings of all the Noteholders  shall not be
deemed confidential).

     C. The Company and the  Noteholders  are currently  parties to that certain
Restructuring  Support  Agreement  dated as of December 23, 2005 (the  "Original
RSA")  setting  forth the terms of a  proposed  financial  restructuring  of the
Notes.

     D. The Company and the Noteholders  desire to modify and amend the terms of
the Original RSA as set forth herein.

     E. Exhibit A hereto (the "Term Sheet") and the provisions  hereof set forth
the basic terms of a financial restructuring of the Notes to be realized through
an exchange offer (the "Exchange Offer" and,  collectively with any transactions
substantially  as  contemplated  by  the  Term  Sheet  or  this  Agreement,  the
"Restructuring").

     F. The  parties  have  agreed  to the  terms of the  Restructuring  and the
Noteholders  each have  agreed to  support  the  Restructuring  on the terms and
conditions set forth herein.

     G.  The  Company  intends  to (i)  conduct  the  Exchange  Offer as soon as
practicable and (ii) use commercially reasonable efforts to obtain acceptance of
the Exchange Offer by the holders of 99% of the outstanding Notes.

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                                   AGREEMENT:

     NOW,  THEREFORE,  in consideration of the premises and mutual covenants and
agreements set forth herein, and for other good and valuable consideration,  the
receipt and  sufficiency  of which are hereby  acknowledged,  the parties hereto
hereby agree as follows:

     Section 1. General.

     (a) The Company  agrees and covenants  that,  subject to the conditions set
forth on the Term Sheet, it will use its commercially reasonable best efforts to
complete the Restructuring through the Exchange Offer.

     (b) The  parties  shall  negotiate  in  good  faith  (i) the  documentation
regarding the  Restructuring  contemplated by the Term Sheet,  (ii) the Exchange
Offer,   and  (iii)  the  other  documents   contemplated   hereby  and  thereby
(collectively, the "Restructuring Documents").

     (c) The parties hereto shall not (i) object to, delay,  impede, or commence
any proceeding pertaining to, or take any other action to interfere, directly or
indirectly,  in any material respect with the acceptance or  implementation  of,
the Restructuring  provided that the terms of the final Restructuring  Documents
are  materially  consistent  with  the  Term  Sheet  and  otherwise  in form and
substance  satisfactory to the Company and the  Noteholders in their  reasonable
discretion,  (ii)  encourage  or  support  any person or entity to do any of the
foregoing,  (iii) in the case of the Noteholders,  exercise any rights under any
indenture  or other  agreement  with the  Company  or  instruct  any  trustee to
exercise any such rights except as consistent with this Agreement,  or (iv) seek
or solicit,  propose, file, support,  encourage, vote for, consent to, instruct,
or engage in discussions with any person or entity,  other than PRG,  concerning
any restructuring,  workout,  plan of reorganization,  dissolution,  winding up,
acquisition or liquidation of PRG and/or its affiliates, other than the Exchange
Offer,  provided  that the Company may,  upon one  Business  Day's notice to the
other  parties  hereto,   respond  to  and  engage  in  discussions   concerning
unsolicited  offers that the Company's board of directors believes in good faith
will lead to an  alternative  transaction  that would  provide more value to the
holders of the Notes and to PRG's current shareholders than the Restructuring.

     (d) The parties  agree  nothing in this  Agreement  shall limit,  modify or
otherwise  effect any of the Lenders' rights under that certain Credit Agreement
among PRG-Schultz USA, Inc as Borrower, PRG and certain of its other affiliates,
as Guarantors  and certain of the  Noteholders,  as Lenders,  dated December 23,
2005 (the "Bridge Loan Credit  Agreement"),  or any  documents  related  thereto
(collectively, the "Bridge Loan Documents").

     Section 2. Support for the Restructuring.

     (a) PRG agrees and covenants that it will use commercially  reasonable best
efforts  to take or  cause  to be  taken  all  actions  commercially  reasonably
necessary and  appropriate in furtherance  of the Exchange  Offer,  including as
promptly as practicable to:

     (1) prepare the solicitation  materials relating to the Exchange Offer (the
"Solicitation  Materials") in form and substance consistent with the Term Sheet,
except to the extent otherwise consented to by the Noteholders;

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     (2) commence the Exchange Offer and disseminate the Solicitation  Materials
in a manner customary for comparable transactions;

     (3) seek satisfaction of all conditions precedent to the Restructuring;

     (4)  defend  in good  faith  any  suit or  other  legal  or  administrative
proceeding seeking to interfere with, impair or impede the Restructuring;

     (5) promptly amend the Solicitation  Materials,  as necessary and as may be
required  by  applicable  law and provide a draft of such  amended  Solicitation
Materials to the Ad Hoc Committee prior to the distribution of such materials to
holders of the Notes;

     (6) not solicit or encourage  others to formulate  any other tender  offer,
settlement offer, or exchange offer for the Notes other than the Exchange Offer;

     (7) so long as this  Agreement is effective and has not been  terminated in
accordance with Section 5 or 6, hereof,  and except to the extent  necessary for
the  fulfillment of the fiduciary  duties of the Company's board of directors as
referred to in Section 6(c) hereof,  not object to, nor  otherwise  commence any
proceeding to oppose, the Restructuring, it being understood and agreed that the
Company  shall  not seek,  solicit,  support,  consent  to,  participate  in the
formulation of, or encourage any other plan, sale, proposal, or offer of winding
up,  liquidation,   reorganization,   merger,  consolidation,   dissolution,  or
restructuring of the Company;

     (8) subject to the  satisfaction  or waiver of any conditions  precedent to
the Exchange  Offer,  consummate the Exchange Offer,  including  delivery of all
securities  required to be issued thereunder  (within the time that is customary
for transactions of this type) and the other  transactions  that are part of the
Restructuring; and

     (9) prior to consummation of the  Restructuring,  take all action necessary
to exempt,  in a manner reasonably  acceptable to the Noteholders,  the proposed
Restructuring  transactions and the acquisition of New Securities (as defined in
the Term Sheet) or common stock issuable on conversion  thereof by any holder of
Notes.

     (b) PRG agrees and  covenants  that it will not, and will cause each of its
direct and  indirect  subsidiaries  not to, sell,  liquidate,  or dispose of any
assets,  outside the ordinary course of business consistent with past practices,
prior to the date on which the Exchange  Offer closes other than as permitted by
the Section 8.5 of the Bridge Loan Credit  Agreement as in effect on the Closing
Date (as  defined  under the Bridge Loan  Credit  Agreement),  without the prior
written  consent  of the  holders  of a  majority  of the Notes  subject to this
Agreement.

     (c) Each of the Noteholders  agrees and covenants that it shall, as long as
this Agreement is in effect:

     (1) no later than 15 days prior to the first date scheduled for the closing
of the Exchange Offer,  (i) tender all Notes  beneficially  owned by it and (ii)
cause  the  beneficial  owner of all  Notes  for  which  the  Noteholder  is the
investment advisor or manager having the power to vote and dispose of such Notes
on behalf of such  beneficial  owner,  to tender  all such Notes  together  with
properly  completed  and duly  executed  letter or letters of  transmittal  with

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respect  to  such  Notes  as  required  by the  instructions  to the  letter  of
transmittal pursuant to and in accordance with the Exchange Offer;

     (2) not revoke any of the  foregoing  unless  and until this  Agreement  is
terminated in accordance with its terms;

     (3) not vote for,  consent to, provide any support for,  participate in the
formulation  of, or solicit or encourage  others to  formulate  any other tender
offer, settlement offer, or exchange offer for the Notes other than the Exchange
Offer; and

     (4) so long as this  Agreement is effective and has not been  terminated in
accordance  with Section 5 or 6 hereof and the final  Restructure  Documents are
materially consistent with the Term Sheet, not object to, nor otherwise commence
any proceeding to oppose, the Restructuring, it being understood and agreed that
each Noteholder shall not (i) directly or indirectly seek, solicit,  support, or
encourage any other plan, sale,  proposal,  or offer of winding up, liquidation,
reorganization,  merger,  consolidation,  dissolution,  or  restructuring of the
Company or (ii) commence an involuntary bankruptcy case against the Company.

     Section 3. Representations and Warranties.

     (a) Each of the parties  severally  represents  and warrants to each of the
other parties that the following  statements are true and correct as of the date
hereof:

     (1) Power and Authority.  It has all requisite power and authority to enter
into this  Agreement  and to carry out the  transactions  contemplated  by,  and
perform its respective obligations under, this Agreement.

     (2)  Authorization.  The execution  and delivery of this  Agreement and the
performance  of its  obligations  hereunder  have  been duly  authorized  by all
necessary action on its part.

     (3) No Conflicts.  The execution,  delivery,  and performance by it of this
Agreement  do not and shall not (i)  violate  any  provision  of law,  rule,  or
regulation  applicable to it or its certificate of  incorporation or by-laws (or
other organizational documents) or (ii) conflict with, result in a breach of, or
constitute  (with  due  notice  or lapse of time or both) a  default  under  any
material contractual  obligation to which it is a party or under its certificate
of incorporation or by-laws (or other  organizational  documents),  except, with
respect to the Company,  for any  contractual  obligation  that would not have a
material adverse effect on the business, assets, financial condition, or results
of operations of PRG and its subsidiaries, taken as a whole.

     (4) Governmental Consents.  The execution,  delivery, and performance by it
of this Agreement do not and shall not require any  registration or filing with,
consent or  approval  of, or notice to, or other  action  to,  with,  or by, any
Federal,  state, or other governmental  authority or regulatory body, except (i)
such  filings  as  may  be  necessary  and/or  required  for  disclosure  by the
Securities  and Exchange  Commission  and (ii) filings with NASDAQ in connection
with the Restructuring.

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     (5) Binding  Obligation.  This  Agreement is the legally  valid and binding
obligation of it, enforceable against it in accordance with its terms, except as
enforcement   may  be  limited  by   bankruptcy,   insolvency,   reorganization,
moratorium,  or other  similar laws  relating to or limiting  creditors'  rights
generally or by equitable principles relating to enforceability.

     (6) Proceedings.  No litigation or proceeding before any court, arbitrator,
or  administrative  or  governmental  body is  pending  against  it  that  would
adversely  affect  its  ability  to enter into this  Agreement  or  perform  its
obligations hereunder.

     (b) Each of the  Noteholders  represents  and  warrants,  severally and not
jointly,  to each of the other parties that the following  statements  are true,
correct, and complete as of the date hereof:

     (1)  Ownership.  It  has  disclosed  to  PRG on a  confidential  basis  the
aggregate  principal amount of the Notes for which (i) it is the sole beneficial
owner and (ii) it is the investment advisor or manager for the beneficial owners
of such  Notes,  having the power to vote and dispose of such Notes on behalf of
such beneficial  owners.  It is entitled (for its own account or for the account
of other persons claiming through it) to all of the rights and economic benefits
of such Notes.

     (2) Transfers. It has made no prior assignment, sale, participation, grant,
conveyance,  or other transfer of, and has not entered into any other  agreement
to assign, sell, participate, grant, or otherwise transfer, in whole or in part,
any right,  title, or interests in (or portion thereof) the Notes referred to in
Subsection 3(b)(1), except as permitted by Section 4 hereto.

     (3)  Laws.  It  (i)  is  a  sophisticated  investor  with  respect  to  the
transactions  described  herein with  knowledge and  experience in financial and
business  matters  sufficient  to  evaluate  the  merits and risks of owning and
investing in securities  similar to the Notes (including any securities that may
be issued in connection  with the  Restructuring),  making an informed  decision
with respect thereto,  and evaluating  properly the terms and conditions of this
Agreement,  and it has  made  its own  analysis  and  decision  to enter in this
Agreement,  (ii) is, and any person  for which it is the  investment  advisor or
manager and which is the beneficial owner of Notes is, an "accredited  investor"
within the meaning of Rule 501 of the  Securities  Act of 1933, as amended,  and
(iii)  it has had the  opportunity  to meet  with  management  of PRG and to ask
questions  and review  information  with  respect to PRG's  business,  financial
condition,  results of operations and financial and operational  outlook, and it
has obtained all information it deems necessary or appropriate in order to enter
into this agreement and make the investment decision contemplated hereby.

     Section  4.  Restriction  on  the  Sale  of  the  Notes.   Each  Noteholder
individually  covenants that, from the date hereof until the termination of this
Agreement,  such  party  shall  not,  directly  or  indirectly,   sell,  pledge,
hypothecate, or otherwise transfer any Notes or any option, right to acquire, or
voting, participation, or other interest therein, except to a purchaser or other
entity who executes and  delivers to PRG,  concurrently  or prior to any binding
commitment with respect to such transfer, an agreement in writing to be bound by
all the terms of this  Agreement  with  respect to the  relevant  Notes or other

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interests being transferred to such purchaser (which agreement shall include the
representations  and warranties  set forth in Section 3 hereof).  This Agreement
shall in no way be construed to preclude a party from acquiring additional Notes
or other  interests  in PRG.  All Notes held by a  Noteholder,  including  Notes
acquired  after  the date  hereof,  shall be  subject  to all the  terms of this
Agreement.

     Section 5. Termination by the Noteholders. This Agreement may be terminated
by Noteholders that beneficially own or act as the investment advisor or manager
with  respect to at least a majority  of the Notes  subject to the terms of this
Agreement on the  occurrence of any of the following  events (each a "Noteholder
Termination  Event"),  by delivering  written  notice of the  occurrence of such
event in accordance with Section 13 below to the other parties:

     (a) the  Exchange  Offer  has not been  commenced  by  February  1, 2006 or
completed by March 31, 2006;

     (b)  after  the  date  hereof  there  shall  have  occurred  any  event  or
circumstance  that  individually or in the aggregate  reflect a material adverse
change in the financial  condition,  business,  or operations of the Company and
its subsidiaries;

     (c) the failure to repay all obligations under the facility contemplated by
the Bridge Loan Documents (the "Bridge Loan"), in full, in cash, concurrent with
the closing of the Exchange Offer;

     (d) the exercise of any remedies under the Bridge Loan Documents  following
an Event of Default (as defined therein) arising from any the following: (i) the
failure to make any  scheduled  payment of  principal  or  interest  as and when
required  under the Bridge  Loan  Documents;  (ii) the failure by the Company to
make any Mandatory  Prepayments  or Payment of Taxes;  (iii) a default under any
Other  Indebtedness,  unless  otherwise  permitted by the Bridge Loan Documents;
(iv) the failure to maintain  Insurance  required by the Bridge Loan  Documents;
(v) the incurrence of any Debt or  Indebtedness  in excess of the limitations in
the Bridge Loan  Documents;  (vi) any  Consolidation,  Dissolution  or Merger in
violation of the Bridge Loan Documents;  (vii) making any Restricted Payments in
violation of the Bridge Loan Documents;  (viii) any Transactions with Affiliates
in violation of the Bridge Loan Documents;  (ix) taking any Restricted Action in
violation  of the Bridge  Loan  Documents;  (x) making  any  Negative  Pledge in
violation of the Bridge Loan  Documents;  or (xi)  occurrence of any  Bankruptcy
Event or Change of Control;(1)

     (e) the  exercise of any remedies  under that certain  Amended and Restated
Credit  Agreement among  PRG-Schulz USA, Inc., as Borrower,  PRG, and certain of
its other  affiliates,  as Guarantors,  and Bank of America,  N.A.,  dated as of
November 30, 2004, and any documents related thereto;

     (f) the Restructuring or the final  Restructuring  Documents do not conform
to the Term Sheet with respect to the treatment of the Notes, except as modified
in any  non-material  respect  or as  approved  by the Ad Hoc  Committee  of the
Noteholders (the members of which are identified on the signature pages hereto);
or

____________________
(1)  All  capitalized  terms used in this  Section  5(d) shall have the  meaning
     given such terms in the Bridge Loan Credit Agreement.

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     (g) a material  breach of this Agreement by the Company that is not, by its
terms,  curable or that is, by its terms,  curable and is not cured by the fifth
calendar day after  notice of such breach (for the  purposes of this  Agreement,
the term "material breach" includes a breach of the covenant in Section 2(b)).

     Section 6. Termination by the Company.  The Company shall have the right to
terminate this Agreement on the occurrence of any of the following  events (each
a "Company  Termination  Event") by giving  written  notice in  accordance  with
Section 13 below to the other parties:

     (a) the exercise of any remedies under the Bridge Loan Documents;

     (b) a material breach of this Agreement by any of the  Noteholders  that is
not, by its terms, curable or that is, by its terms, curable and is not cured by
the fifth calendar day after notice of such breach; or

     (c) a  good  faith  determination  by  the  Company's  board  of  directors
(following  consultation  with  its  reputable  outside  legal  counsel  and its
financial  advisor of national  recognized  reputation) that such termination is
required by its fiduciary  duty to the Company,  its then current  shareholders,
and its creditors in order to enter into an alternative  transaction (whether in
the form of a merger,  consolidation  or  combination  with a third party or the
sale of all,  substantially  all,  or a  significant  portion  of, the assets or
businesses  of the  Company)  that will be at least as favorable to each of such
parties  but  more  favorable  to the  parties  as a  whole,  from  a  financial
perspective,   than  the  Restructuring  and  is  reasonably  capable  of  being
consummated,  taking into  account,  among other things,  all legal,  financial,
regulatory and other aspects of the  alternative  transaction  and the person or
group making such proposal (a "Superior Proposal"); provided that (i) the Bridge
Loan has been paid in full, in accordance with the Bridge Loan  Documents,  (ii)
the Company  provides the Noteholders five (5) business days prior notice of the
Company's  intent to terminate  this  Agreement  under this Section 6(c) and the
terms and  conditions of such Superior  Proposal  (including the identity of the
person or group making such Superior  Proposal),  and (iii) the Company provides
the Noteholders and their  representatives a good faith opportunity  during such
five (5) business day notice period and prior to any such  termination to revise
the terms of the Restructuring.

     Section  7.  Termination  of  Agreement.  Notwithstanding  anything  to the
contrary  in this  Agreement,  the  Term  Sheet  or any  other  agreement,  this
Agreement  shall terminate on the earliest of (a) the occurrence of a Noteholder
Termination  Event, after expiration of any cure periods and satisfaction of any
conditions  set forth in Section 5 of this  Agreement,  (b) the  occurrence of a
Company Termination Event, after expiration of any cure periods and satisfaction
of any  conditions  set  forth in  Section 6 of this  Agreement,  and (c) if the
Restructuring  has not been consummated  prior to such date, 5:00 pm on June 15,
2006.

     Section 8. Effect of Termination and of Waiver of Termination Event. On the
delivery of the written notice referred to in Sections 5 or 6 in connection with
the valid termination of this Agreement,  the obligations of each of the parties

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hereunder shall thereupon terminate and be of no further force and effect. Prior
to the delivery of such notice the  Noteholders  may waive the  occurrence  of a
Noteholder  Termination  Event  and PRG may waive  the  occurrence  of a Company
Termination Event. No such waiver shall affect any subsequent  termination event
or impair any right consequent thereon.  Upon termination of this Agreement,  no
party shall have any  continuing  liability or  obligation  to the other parties
hereunder;  provided,  however, that no such termination shall relieve any party
from liability for its breach or  non-performance  of its obligations  hereunder
prior to the date of such termination.

     Section  9.  Amendments.  This  Agreement  may  be  modified,  amended,  or
supplemented by a written agreement  executed by the Company and the Noteholders
that beneficially own or act as the investment advisors or managers with respect
to at least a  majority  of the  aggregate  principal  face  amount of the Notes
subject to this Agreement,  provided,  however,  that in the event of a material
change to the Term Sheet,  or a change of any of the economic  terms of the Term
Sheet,  any Noteholder  that does not consent shall have no further  obligations
under the Agreement.

     Section  10.  Further  Assurances.  Each of the  parties to this  Agreement
hereby  further  covenants  and agrees to cooperate in good faith to execute and
deliver all further  documents and  agreements  and take all further action that
may be  commercially  reasonably  necessary or desirable in order to enforce and
effectively  implement  the  terms  and  conditions  of  this  Agreement.   Each
Noteholder  agrees to advise the  Company of any  changes in the amount of Notes
beneficially  owned by it and the amount of Notes for which such  Noteholder  is
the investment manager or advisor for beneficial owners.

     Section 11. Voting Agreement.  As soon as reasonably  practicable following
the  consummation  of the  Restructuring,  the  Company  will call a meeting  of
shareholders at which it will seek approval of the Management Incentive Plan and
the  amendment of the  Company's  articles of  incorporation  to  authorize  140
million shares of common stock in order to provide for conversion in full of the
New Senior Convertible Notes, the New Senior Series A Convertible  Participating
Preferred Stock, and the New Senior Series B Convertible Participating Preferred
Stock  and the  distribution  of  Company  common  stock  under  the  Management
Incentive Plan, as set forth in the Term Sheet.  Each of the Noteholders  hereby
agrees to (i)  attend  (in  person or by proxy)  such  shareholders  meeting  or
meetings and (ii) cause all Company common stock and other Company capital stock
entitled  to vote on any  such  proposal  that  are  beneficially  owned by such
Noteholder to be voted in favor of the approval of such proposal.

     Section 12. Governing Law;  Jurisdiction.  This Agreement shall be governed
by,  and  construed  in  accordance  with,  the laws of the  State of New  York,
regardless of the laws that might otherwise govern under  applicable  principles
of conflict of laws of the State of New York.  By its  execution and delivery of
this   Agreement,   each  of  the  parties   hereto   hereby   irrevocably   and
unconditionally  agrees for itself that any legal  action,  suit,  or proceeding
against it with respect to any matter  under or arising out of or in  connection
with this Agreement or for  recognition or enforcement of any judgment  rendered
in any such action, suit, or proceeding,  shall be brought in a federal court of
competent  jurisdiction  in the Southern  District of New York. By execution and
delivery  of this  Agreement,  each of the  parties  hereto  hereby  irrevocably
accepts  and  submits  to  the   jurisdiction  of  such  court,   generally  and
unconditionally, with respect to any such action, suit, or proceeding.

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     Section  13.  Notices.  All  demands,  notices,  requests,   consents,  and
communications  hereunder  shall be in writing  and shall be deemed to have been
duly given if delivered personally or by courier service, messenger,  facsimile,
telecopy,  or if duly deposited in the mails,  by certified or registered  mail,
postage prepaid-return receipt requested,  and shall be deemed to have been duly
given or made (i) upon delivery,  if delivered personally or by courier service,
or messenger,  in each case with record of receipt,  (ii) upon transmission with
confirmed delivery, if sent by facsimile or telecopy, or (iii) two business days
after being sent by certified  or  registered  mail,  postage  pre-paid,  return
receipt requested, to the following addresses, or such other addresses as may be
furnished hereafter by notice in writing, to the following parties:

                  If to PRG, or any of its subsidiaries, to:

                  PRG-Schultz International, Inc.
                  600 Galleria Parkway, Suite 600
                  Atlanta, GA  30339
                  Facsimile:  (770) 779-3133
                  Attn:  Clint McKellar, Esq.

                  with a copy to:

                  Weil, Gotshal & Manges LLP
                  767 Fifth Avenue
                  New York, NY  10153
                  Facsimile:  (212) 310-8007
                  Attn:  Michael F. Walsh, Esq.

                  If to the Noteholders, or any one Noteholder, to:

                  Houlihan Lokey Howard & Zukin
                  685 Third Avenue, 15th Floor
                  New York, NY  10017
                  Facsimile:  (212) 497-3070
                  Attn:  David Hilty

                  with a copy to:

                  Schulte Roth & Zabel LLP
                  919 Third Avenue
                  New York, NY  10022
                  Facsimile:  (212) 593-5955
                  Attn:  Jeffrey S. Sabin, Esq.

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     Section 14.  Entire  Agreement.  This  Agreement  constitutes  the full and
entire  understanding and agreement among the parties with regard to the subject
matter hereof,  and supersedes all prior  agreements with respect to the subject
matter hereof, including the Original RSA.

     Section 15. Headings.  The headings of the paragraphs and  subparagraphs of
this  Agreement  are  inserted  for  convenience  only and shall not  affect the
interpretation hereof.

     Section 16. Successors and Assigns.  This Agreement is intended to bind and
inure to the benefit of the parties and their  respective  permitted  successors
and assigns,  provided,  however, that nothing contained in this paragraph shall
be deemed to permit sales,  assignments,  or transfers  other than in accordance
with Section 4.

     Section  17.  Specific  Performance.   Each  party  hereto  recognizes  and
acknowledges  that a breach by it of any  covenants or  agreements  contained in
this  Agreement  will cause  other  parties to  sustain  damages  for which such
parties  would  not  have an  adequate  remedy  at law for  money  damages,  and
therefore  each party hereto  agrees that in the event of any such breach,  such
other  parties shall be entitled to the remedy of specific  performance  of such
covenants and agreements and injunctive and other  equitable  relief in addition
to any other remedy to which such parties may be entitled, at law or in equity.

     Section   18.   Several,   Not   Joint,   Obligations.    The   agreements,
representations, and obligations of the parties under this Agreement are, in all
respects, several and not joint.

     Section 19. Remedies Cumulative.  All rights, powers, and remedies provided
under this  Agreement  or  otherwise  available  in respect  hereof at law or in
equity shall be cumulative and not  alternative,  and the exercise of any right,
power,  or remedy  thereof by any party shall not preclude the  simultaneous  or
later exercise of any other such right, power, or remedy by such party.

     Section  20. No Waiver.  The failure of any party  hereto to  exercise  any
right,  power, or remedy provided under this Agreement or otherwise available in
respect  hereof at law or in equity,  or to insist upon  compliance by any other
party hereto with its obligations  hereunder,  and any custom or practice of the
parties at variance with the terms hereof, shall not constitute a waiver by such
party of its right to exercise any such or other right,  power,  or remedy or to
demand such compliance.

     Section 21.  Counterparts.  This  Agreement  may be executed in one or more
counterparts,  each of which shall be deemed an original  and all of which shall
constitute one and the same Agreement. Delivery of an executed signature page of
this  Agreement  by  telecopier  or email shall be as effective as delivery of a
manually executed signature page of this Agreement.

     Section  22.  Severability.   Any  provision  of  this  Agreement  that  is
prohibited or unenforceable in any jurisdiction  shall, as to such jurisdiction,
be ineffective to the extent of such  prohibition  or  unenforceability  without
invalidating  the  remaining  provisions  hereof or  affecting  the  validity or
enforceability of such provision in any other jurisdiction.

                                       10
<PAGE>

     Section 23. No Third-Party  Beneficiaries.  Unless expressly stated herein,
this  Agreement  shall be solely for the  benefit of the  parties,  and no other
person or entity shall be a third party beneficiary hereof.

     Section 24. Additional Parties.  Without in any way limiting the provisions
hereof, additional holders of Notes may elect to become parties by executing and
delivering to PRG a counterpart hereof. Each such additional holder shall become
a party to this  Agreement as a Noteholder in accordance  with the terms of this
Agreement.

     Section 25. No Solicitation. This Agreement is not intended to be, and each
signatory  to  this  Agreement  acknowledges  that  this  Agreement  is  not,  a
solicitation  with  respect to the  Exchange  Offer or with respect to any other
mechanism to  accomplish a  restructuring  of the  obligations  under the Notes,
whether such mechanism is to be accomplished in or outside a court.

     Section 26. Consideration.  It is hereby acknowledged by the parties hereto
that, other than the agreements, covenants,  representations, and warranties set
forth herein and in the Term Sheet, no consideration shall be due or paid to the
Noteholders  for  their  agreement  to vote to  accept  the  Exchange  Offer  in
accordance with the terms and conditions of this Agreement.

     Section 27.  Receipt of Adequate  Information;  Representation  by Counsel.
Each party acknowledges that it has received adequate  information to enter into
this Agreement and that it has been  represented  by counsel in connection  with
this Agreement and the transactions contemplated by this Agreement. Accordingly,
any rule of law or any legal  decision  that  would  provide  any  party  with a
defense to the  enforcement  of the terms of this  Agreement  against such party
shall  have no  application  and is  expressly  waived.  The  provisions  of the
Agreement  shall be interpreted  in a reasonable  manner to effect the intent of
the parties.

     Section 28.  Construction.  To the extent that any ambiguity exists between
the descriptions  contained in the Offering  Circular and the terms set forth in
Exhibit A hereto,  the  descriptions  in the Offering  Circular  shall  control,
except to the  extent  that any such term or  description  within  the  Offering
Circular is inconsistent with the express provisions of this Agreement, in which
case this Agreement shall control.

                            [Signature Page Follows]

                                       11
<PAGE>

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

                                  PRG-Schultz International, Inc.

                                  By: /s/ Clinton McKellar, Jr.
                                      ------------------------------------------
                                  Name:  Clinton McKellar, Jr.
                                  Title:  Senior Vice President, General Counsel
                                           and Secretary

    [Signature Page to Amended and Restated Restructuring Support Agreement]

<PAGE>

                                  NOTEHOLDERS:

                                  Blum Capital Partners, L.P.

                                  By: /s/ Jose S. Medeiros
                                     -------------------------------------------
                                  Name:    Jose S. Medeiros
                                  Title:   Partner

                                  Address:
                                           909 Montgomery St., Suite 400
                                           San Francisco, CA  94133
                                           Facsimile No.:  415-283-0601
                                           Attn.: Jose S. Medeiros

                                  Parkcentral Global Hub Limited

                                  By: /s/ Steven Blasnik
                                     -------------------------------------------
                                  Name:    Steven Blasnik
                                  Title:   President

                                  Address:
                                           2300 West Plano Parkway
                                           Plano, TX  75075
                                           Facsimile No.:  972-535-1997
                                           Attn.:  Steven Blasnik

                                  Petrus Securities L.P.

                                  By: /s/ Steven Blasnik
                                     -------------------------------------------
                                  Name:    Steven Blasnik
                                  Title:   President of General Partner

                                  Address:
                                           2300 West Plano Parkway
                                           Plano, TX  75075
                                           Facsimile No.:  972-535-1997
                                           Attn.:  Steven Blasnik

    [Signature Page to Amended and Restated Restructuring Support Agreement]

<PAGE>

                                  Tenor Opportunity Master Fund, Ltd.

                                  By: /s/ Robin Shah
                                     -------------------------------------------
                                  Name:    Robin Shah
                                  Title:   Partner

                                  Address:
                                           65 East 55th Street
                                           New York, NY  10022
                                           Facsimile No.:  212-593-5955
                                           Attn.:

                                  Thales Fund Management, LLC

                                  By: /s/ A. Aadel Shaaban
                                     -------------------------------------------
                                  Name:    A. Aadel Shaaban
                                  Title:   Senior Analyst

                                  Address:
                                           140 Broadway, 45th Floor
                                           New York, NY 10005
                                           Facsimile No.:
                                           Attn.:

    [Signature Page to Amended and Restated Restructuring Support Agreement]

<PAGE>

                                    EXHIBIT A

                                   TERM SHEET

<TABLE>
<CAPTION>
<S>                          <C>

---------------------------- ------------------------------------------------------------------------------------------
PROPOSED TRANSACTION:        The following describes an agreement in principle between PRG-Schultz International,
                             Inc. and its subsidiaries (collectively, the "Company") and the Ad Hoc Committee of
                             Holders of the Company's 4.75% Convertible Subordinated Notes due 2006 (the "Ad Hoc
                             Committee") and to restructure the financial obligations of the Company.

                             The Transaction will involve the recapitalization of the Company through:

                             (i)      A Bridge Loan (as defined below) of $10 million to provide the Company with
                                      sufficient funds to pay the interest payment due on the Notes and
                                      additional working capital, pending the closing of the Recapitalization
                                      (as defined below);

                             (ii)     A credit facility or facilities, consisting of a minimum revolver of $20
                                      million and total commitments of no more than $47.5 million,  amending or
                                      refinancing (a) the Amended and Restated Credit Agreement, dated as of
                                      November 30, 2004, among (x) PRG-Schultz USA, Inc., the Company, and
                                      certain of the Company's subsidiaries and (y) Bank of America, N.A. (the
                                      "Existing Credit Facility"), and (b) the Bridge Loan; and

                             (iii)    A pro-rata exchange of the 4.75% Convertible Subordinated Notes due 2006 issued
                                      by the Company (the "Notes") for three new securities including: (1) New
                                      Senior Notes; (2) New Senior Convertible Notes; and (3) New Senior Series
                                      A Convertible Participating Preferred Stock (collectively the "Transaction
                                      Securities").

                                  Points  (i) through (iii), collectively, are defined as the "Recapitalization".
---------------------------- ------------------------------------------------------------------------------------------
CREDIT FACILITIES:           Bridge Loan

                             $10 million second lien loan (the "Bridge Loan") to be provided by certain holders of
                             the Notes (or their affiliates).  The Bridge Loan will have the following terms:

                             (i)      Second lien on assets securing the Existing Credit Facility;
                             (ii)     12% interest in cash, payable monthly;
                             (iii)    50 bps closing fee;
                             (iv)     Maturity date: Earlier of closing of the Recapitalization or August 15, 2006;
                             (v)      Non-refundable commitment fee of 1.25% of $10 million, payable upon signing the
                                      Commitment Letter; an additional 1.75% Placement Fee of the amount borrowed,
                                      payable upon closing of the Bridge Loan; plus all out-of-pocket expenses;
                             (vi)     Proceeds will be used for general corporate purposes to eliminate risk of
                                      adverse customer actions, including paying the interest due on the existing
                                      Notes. Up to $2.5 million may be used to fund foreign operations, provided
                                      that, if requested by the Ad Hoc Committee, appropriate promissory note and

---------------------------- ------------------------------------------------------------------------------------------

</TABLE>

                                       A-1

<PAGE>

<TABLE>
<CAPTION>
<S>                          <C>

---------------------------- ------------------------------------------------------------------------------------------

                                      other documentation evidences such inter-company transfers and lien is
                                      received on those promissory notes. Proceeds cannot be used to make
                                      severance or similar payments to John Cook and Jack Toma.

                             Revolving Credit Facility/ New Second Lien Term Loan

                             The Existing Credit Facility will be either amended with Bank of America or refinanced
                             with a replacement lender to provide a minimum commitment of $20 million of senior
                             secured financing.

                             The Bridge Loan will be repaid upon completion of the refinancing of the Existing Credit
                             Facility with a credit facility or facilities, consisting of a minimum revolver of $20
                             million and total commitments of no more than $47.5 million.

---------------------------- ------------------------------------------------------------------------------------------
TRANSACTION SECURITIES:      In exchange for the $125 million principal amount of Notes, the Noteholders will
                             receive, upon the closing of the exchange offer (the "Closing Date"), their pro-rata
                             share of the following securities with preference options for the different securities
                             structured, if possible:

                             (i)      New Senior Notes in a principal amount of $50 million, plus an additional
                                      principal amount equal to accrued and unpaid interest on the Notes to, but
                                      not including, the Closing Date;
                             (ii)     New Senior Convertible Notes in a principal amount of $60 million; and
                             (iii)    New Senior Series A Convertible Participating Preferred Stock with an initial
                                      liquidation preference of $15 million.

                             The interest payment due November 26, 2005 on the Notes will be paid in cash from the
                             proceeds of the Bridge Loan during the 30 day grace period as soon as documentation is
                             completed and Bank of America agrees to the terms of an Intercreditor and Subordination
                             Agreement.

---------------------------- ------------------------------------------------------------------------------------------
NEW SENIOR NOTES:            Issuer:                    Company

                             Face Amount:               $50 million plus an additional principal amount equal to
                                                        accrued and unpaid interest on the Notes to, but not
                                                        including, the Closing Date

---------------------------- ------------------------------------------------------------------------------------------

</TABLE>

                                       A-2

<PAGE>

<TABLE>
<CAPTION>
<S>                          <C>

---------------------------- ------------------------------------------------------------------------------------------

                             Coupon:                    11.0% cash, payable semi-annually starting six months after
                                                        the Closing Date

                             Maturity:                  5 years from the Closing Date

                             Call Protection:           Callable at any time at 104 in year 1, 102 in year 2; par in
                                                        year 3 until maturity plus all accrued interest thereon
                                                        through the date of the prepayment

                             Convertible:               Not convertible

                             Ranking:                   Senior to existing Notes

                             Security:                  General unsecured obligations

                             Covenants:                 See description thereof contained in the Offering Circular
                                                        to be dated February 1, 2006 (the "Offering Circular")

---------------------------- ------------------------------------------------------------------------------------------
NEW SENIOR CONVERTIBLE       Issuer:                    Company
NOTES:
                             Face Amount:               $60 million

                             Coupon:                    10% cash or PIK, at the option of the Company, payable
                                                        semi-annually starting six months after the  Closing Date

                             Maturity:                  Five years from the Closing Date

                             Redemption Rights:         Callable at par plus accrued interest at any time after both
                                                        (i) payment of the New Senior Notes in full and (ii) increase
                                                        in the authorized Company common stock to provide for the
                                                        conversion in full of the New Senior Convertible Notes, the
                                                        New Senior Series A Convertible Participating Preferred Stock
                                                        and the New Senior Series B Convertible Participating
                                                        Preferred Stock (collectively, the "New Securities") and the
                                                        distribution in full of Company common stock under the
                                                        Management Incentive Plan and the effectiveness of a
                                                        registration statement registering the resale of the New
                                                        Securities by certain Company affiliates (the "new conversion
                                                        rights date")

                             Ranking:                   Pari passu with the New Senior Notes

                             Security:                  General unsecured obligations

---------------------------- ------------------------------------------------------------------------------------------

</TABLE>

                                       A-3

<PAGE>

<TABLE>
<CAPTION>
<S>                          <C>

---------------------------- ------------------------------------------------------------------------------------------

                             Convertible:               At the option of the holder, the New Senior Convertible Notes
                                                        are convertible into New Senior Series B Convertible
                                                        Participating Preferred Stock  only at any time after August
                                                        15, 2006 but prior to the new conversion rights date, at a
                                                        conversion price of $480 per share.

                                                        At the option of the holder, the New Senior Convertible Notes
                                                        are convertible into Company common stock only after the new
                                                        conversion rights ate at a conversion price of $.65 per share.

                             Covenants:                 See the description thereof contained in the Offering
                                                        Circular

---------------------------- ------------------------------------------------------------------------------------------

NEW SENIOR CONVERTIBLE       THE NEW SENIOR SERIES B CONVERTIBLE PARTICIPATING PREFERRED STOCK SHALL HAVE THE
NOTES (CONTINUED):           FOLLOWING TERMS:

                             Face Amount:               Principal amount of New Senior Convertible Notes converted
                                                        plus accrued and unpaid interest.  Initial liquidation
                                                        preference of $480 per share

                             Dividend:                  10% annual dividend rate payable semi-annually in cash or by
                                                        accretion of the liquidation preference of the shares, at the
                                                        option of the Company

                             Maturity:                  Later of (i) five years after the Closing Date and (ii) 120th
                                                        day following the new conversion rights date

                             Convertible:               At the option of the holder after the new conversion rights
                                                        date, the New Senior Series B Convertible Participating
                                                        Preferred Stock is convertible into common stock at $0.65 per
                                                        share.

                             Redemption:                Optionally redeemable at face amount plus accrued dividends
                                                        only after the new conversion rights date, subject to prior
                                                        or simultaneous refinancing in full of the New Senior Notes
                                                        and the New Senior Convertible Notes

                             Put Rights:                During the period from March 15, 2011 to the new conversion
                                                        rights date, any holder of the New Senior Series B
                                                        Convertible Participating Preferred Stock may require the
                                                        Company to redeem such shares on any semi-annual dividend
                                                        payment date by delivering 60 days prior written notice

---------------------------- ------------------------------------------------------------------------------------------

</TABLE>

                                       A-4

<PAGE>

<TABLE>
<CAPTION>
<S>                          <C>

---------------------------- ------------------------------------------------------------------------------------------

                             Voting:                    Votes with common stock on all issues on an as converted basis

                             Form:                      Certificated security

---------------------------- ------------------------------------------------------------------------------------------
NEW SENIOR SERIES A          Issuer:                    Company
CONVERTIBLE PARTICIPATING
PREFERRED STOCK:             Face Amount:               $15 million.  Initial liquidation preference of $120 per
                                                        share.

                             Dividend:                  9% annual dividend rate payable semi-annually in cash or by
                                                        accretion of the liquidation preference of the shares, at the
                                                        option of the Company

                             Maturity:                  5 years from the Closing Date

                             Convertible:               Convertible into the common stock of the Company at any time
                                                        at $0.28405 per share at the option of the holder

                                                        Initial conversion implies 45.9% of the Common Stock of the
                                                        Company prior to the conversion of the New Senior Convertible
                                                        Notes into New Senior Series B Convertible Participating
                                                        Preferred Stock or its conversion into common stock.

                             Redemption:                Redeemable at face amount plus accrued dividends only after
                                                        the operative conversion date, subject to prior or
                                                        simultaneous refinancing in full of the New Senior Notes and
                                                        the outstanding New Senior Convertible Notes

                                                        Votes with Common Stock on all issues on an as converted basis

---------------------------- ------------------------------------------------------------------------------------------
EXISTING COMMON              The Company's existing common shareholders will retain their existing shares
SHAREHOLDERS:                representing approximately 54.1% of the Common Stock following the initial dilution from
                             the New Senior Series A Convertible Participating Preferred Stock (30% assuming the full
                             and immediate conversion of the New Senior Convertible Notes into Common Stock).

---------------------------- ------------------------------------------------------------------------------------------
GOVERNANCE:                  Board of Directors:

                             The board will consist of seven members, four of whom will be designated by the
                             Noteholders Committee, two of whom will be designed by the members of the current board,
                             and one of whom shall be the Company's CEO.

---------------------------- ------------------------------------------------------------------------------------------

</TABLE>

                                       A-5

<PAGE>

<TABLE>
<CAPTION>
<S>                          <C>

---------------------------- ------------------------------------------------------------------------------------------

MANAGEMENT INCENTIVE PLAN:   Shares                     Phantom shares representing 10% of the Common Stock

                             Recordkeeping              A notional account shall be established as to each
                                                        participating executive to which the phantom shares awarded
                                                        to such executive shall be credited ("Phantom Stock Account")

                             Vesting                    1/3 on the effective date of the Recapitalization ("Effective
                                                        Date"), with the remainder vesting monthly over the two years
                                                        following the Effective Date

                                                        Vesting schedule for executives hired after the Effective
                                                        Date will be as determined by Company compensation committee.

                                                        100% vesting on a change in control.  Conversion of the New
                                                        Senior Convertible Notes, the New Senior Series A Convertible
                                                        Participating Preferred Stock, and/or the New Senior Series B
                                                        Convertible Participating Preferred Stock into Common Stock
                                                        is not a change in control.

                             Allocation                 To be determined by the Compensation Committee of the new
                                                        board of directors upon the recommendation of the CEO;
                                                        provided, however, that the Company's CEO will receive a
                                                        minimum of 40% of amount allocated to Management Incentive
                                                        Plan

                                                        Prior to the last distribution from the Phantom
                                                        Stock Accounts under the Management Incentive Plan, the
                                                        compensation committee, after consultation with the Company's
                                                        CEO, will allocate any unallocated and/or forfeited phantom
                                                        shares to one or more of the Management Incentive Plan
                                                        participants.

                             Anti-Dilution
                             Provisions                 Standard anti-dilution provisions plus dilution protection
                                                        against conversion of the New Senior Convertible Notes, the
                                                        New Senior Series A Convertible Participating Preferred
                                                        Stock, and/or the New Senior Series B Convertible
                                                        Participating Preferred Stock into Common Stock will apply to
                                                        the Phantom Stock Account, but will not apply to shares of
                                                        Common Stock actually distributed to the executive from such
                                                        account.

---------------------------- ------------------------------------------------------------------------------------------

</TABLE>

                                       A-6

<PAGE>

<TABLE>
<CAPTION>
<S>                          <C>

---------------------------- ------------------------------------------------------------------------------------------

                             Distribution Events        Distribution of the Phantom Stock Account shall be made, at
                                                        the individual election of each executive, not earlier than
                                                        the dates and in the cumulative amounts set forth below.

                                                        2d anniversary of Effective Date   25%
                                                        3d anniversary of Effective Date   50%
                                                        4th anniversary of Effective Date  75%
                                                        5th anniversary of Effective Date  100%

                                                        Distribution of the undistributed vested amount of an
                                                        executive's Phantom Stock Account shall be made upon the
                                                        executive's death, disability, or termination of employment,
                                                        or a change in control (see "Vesting" above) of the Company.

                             Form of Payment            Following the consummation of the Restructuring, the
                                                        Management Incentive Plan will be submitted to the Company
                                                        shareholders for approval.

                                                        In the event the Company shareholders decline to approve the
                                                        Management Incentive Plan, the value of an executive's
                                                        Phantom Stock Account will be distributed in cash based upon
                                                        the cash payment formula set forth below.

                                                        Following the receipt of such shareholder approval, the value
                                                        of an executive's Phantom Stock Account will be distributed
                                                        to the executive in cash to the extent required to satisfy
                                                        any applicable taxes (based on the 30-day average trading
                                                        price of the Common Stock at the time of distribution) and
                                                        the balance in shares of Common Stock.

                             Cash Payment
                             Formula                    The distributable cash value of an executive's Phantom Stock
                                                        Account shall be equal to (a) the number of shares of Common
                                                        Stock that would have been distributed to such executive on
                                                        the applicable distribution date multiplied by (b) the
                                                        average closing price of the Common Stock for the 30-day
                                                        period ending on such date.

---------------------------- ------------------------------------------------------------------------------------------

</TABLE>

                                       A-7

<PAGE>

<TABLE>
<CAPTION>
<S>                          <C>

---------------------------- ------------------------------------------------------------------------------------------

                             Other Incentive
                             Payments                   This Management Incentive Plan is in addition to an annual
                                                        cash bonus program based on EBITDA or other targets
                                                        implemented by the Compensation Committee of the new board of
                                                        directors.

                             409A                       The Management Incentive Plan shall comply with the
                                                        requirements of Section 409A of the Tax Code, as applicable.

---------------------------- ------------------------------------------------------------------------------------------
CONDITIONS:                  (i)      Acceptance of the proposed exchange offer by a minimum amount of 99% of Notes;
                             (ii)     The Restructuring Documents are materially consistent herewith and are
                                      otherwise are in form and substance satisfactory to the Company and the
                                      Noteholders in their reasonable discretion;
                             (iii)    Renewal of the Company's D&O policy or the purchase of an extended claims'
                                      notice period for such policy, in either case, on terms reasonably
                                      satisfactory to the current board of directors of the Company; and
                             (iv)     Renegotiation or settlement of the severance agreements with John Cook and Jack
                                      Toma on terms reasonably satisfactory to the Noteholders.

---------------------------- ------------------------------------------------------------------------------------------

</TABLE>

                                       A-8EXHIBIT 10.2

                          REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this  "AGREEMENT"),  is entered into as
of March 17,  2006,  by and among  PRG-Schutlz  International,  Inc.,  a Georgia
corporation (the  "COMPANY"),  and the holders listed on the Schedule of Holders
attached hereto as Exhibit A (each, an "AFFILIATE HOLDER" and, collectively, the
"AFFILIATE HOLDERS").

     THE PARTIES TO THIS AGREEMENT enter into this agreement on the basis of the
following facts, intentions and understanding:

     A.  The  Company  and  certain  of  the  holders  of  4  3/4%   Convertible
Subordinated  Notes due 2006 of the Company (the "EXISTING  NOTES") entered into
that certain Restructuring Support Agreement, dated as of December 23, 2005 (the
"RESTRUCTURING  SUPPORT  AGREEMENT"),  and,  upon the terms and  subject  to the
conditions of the  Restructuring  Support  Agreement,  the Company has agreed to
issue to the holders of the Existing  Notes in exchange  for the Existing  Notes
held by such holders (the  "EXCHANGE") an aggregate of (A) Fifty Million Dollars
($50,000,000)  of the  Company's  11% Senior Notes due 2011,  plus an additional
principal  amount  equal to the  aggregate  accrued  and unpaid  interest on the
Existing Notes (such 11% Senior Notes,  as the same may be amended,  modified or
supplemented from time to time in accordance with the terms thereof (the "SENIOR
NOTES")),  (B) Sixty Million Dollars  ($60,000,000)  of the Company's 10% Senior
Convertible Notes due 2011 (such 10% Senior  Convertible  Notes, as the same may
be amended,  modified or  supplemented  from time to time in accordance with the
terms thereof (the "CONVERTIBLE  NOTES" and, together with the Senior Notes, the
"NOTES")), which shall be convertible into shares of Senior Series B Convertible
Participating  Preferred Stock (the "SERIES B PREFERRED  STOCK") of the Company,
which shall be convertible  into shares of Common Stock,  without par value (the
"COMMON STOCK") of the Company, and (C) Fifteen Million Dollars ($15,000,000) of
Senior  Series A  Convertible  Participating  Preferred  Stock  (the  "SERIES  A
PREFERRED STOCK" and, together with the Series B Preferred Stock, the "PREFERRED
Stock") of the Company,  which shall be convertible  into shares of Common Stock
(such Common Stock, together with the Common Stock issued upon conversion of the
Series B Preferred Stock, the "CONVERSION SHARES").

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

     NOW,  THEREFORE,  in consideration of the promises and the mutual covenants
contained  herein and other good and  valuable  consideration,  the  receipt and
sufficiency  of which  are  hereby  acknowledged,  the  Company  and each of the
Affiliate Holders hereby agree as follows:

     Section 1. Definitions As used in this Agreement, the following terms shall
have the following meanings:

     "AFFILIATE" means a person that directly or indirectly  through one or more
intermediaries, controls, is controlled by, or is under common control with, the
Company.

<PAGE>

     "BUSINESS DAY" means any day other than  Saturday,  Sunday or any other day
on which  commercial banks in The City of New York are required by law to remain
closed.

     "CLOSING DATE" means the date upon which the Exchange has been completed.

     "COMMISSION" means the Securities and Exchange Commission.

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

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

     "REGISTER,"  "REGISTERED," and "REGISTRATION" means a registration effected
by preparing and filing one or more  Registration  Statements (as defined below)
in  compliance  with the 1933 Act and pursuant to Rule 415 under the 1933 Act or
any successor rule providing for offering  securities on a continuous or delayed
basis ("RULE 415"),  and the  declaration or ordering of  effectiveness  of such
Registration Statements by the Commission.

     "REGISTRABLE  SECURITIES"  means (i) the Senior Notes, (ii) the Convertible
Notes,  (iii) the Series A Preferred  Stock,  (iv) the Series B Preferred stock,
(v) the Conversion  Shares issued or issuable upon conversion of the Convertible
Notes, the Series A Preferred Stock and the Series B Preferred  Stock,  (vi) any
shares of capital stock issued or issuable with respect to the Conversion Shares
as a result of any stock split,  stock dividend,  recapitalization,  exchange or
similar event or otherwise,  without regard to any limitations on conversions of
the Series A  Preferred  Stock or the Series B  Preferred  Stock,  and (vii) any
shares of capital  stock of any entity  issued in respect of the  capital  stock
referenced in the immediately  preceding clauses (i), (ii), (iii), (iv), (v) and
(vi) as a result of a merger, consolidation, sale of assets, sale or exchange of
capital  stock or other  similar  transaction;  provided,  that any  Registrable
Securities that (A) have been sold pursuant to a Registration  Statement or Rule
144  promulgated  under  the 1933  Act or (B) are  eligible  to be sold  without
restriction under the 1933 Act, shall no longer be Registrable Securities.

     "REGISTRATION  STATEMENT"  means a registration  statement or  registration
statements  of the  Company  filed  under the 1933 Act and  covering  all of the
Registrable Securities.

     "REQUIRED  HOLDERS"  means the  holders of a  majority  of the value of the
outstanding  Registrable  Securities,  which value,  in the case of  Registrable
Securities that are shares of Common Stock, shall be determined by the last sale
price of such Common  Stock on the trading  date prior to the date for which the
Required Holders approval is relevant,  and otherwise shall be determined as the
outstanding principal or face amount of the Registrable Securities.

                                       2
<PAGE>

     Section 2. Registration

     (a)  Mandatory  Registration.  The Company shall prepare and not later than
the earlier of 60 calendar days after the Closing Date or May 15, 2006 (assuming
that the Closing  Date has  occurred)  (the  "FILING  DEADLINE"),  file with the
Commission  a  Registration  Statement on Form S-3 covering the resale of all of
the Registrable  Securities of the Affiliate Holders. In the event that Form S-3
is  unavailable  for such a  registration,  the  Company  shall  comply with the
provisions  of  Section  2(c)  of this  Agreement.  The  Registration  Statement
prepared  pursuant hereto shall register all of the  Registrable  Securities for
resale in accordance  with the methods of  distribution  elected by the Required
Holders. The Registration  Statement shall contain (except if otherwise directed
by  the  Required   Holders)  the   "Selling   Securityholders"   and  "Plan  of
Distribution"  sections  in the  form and  substance  substantially  similar  to
Exhibit B hereto.  The Company  shall use  reasonable  best  efforts to have the
Registration   Statement  declared  effective  by  the  Commission  as  soon  as
practicable,  but not later than 150  calendar  days after the Closing Date (the
"EFFECTIVENESS DEADLINE").

     (b) Legal  Counsel.  Subject to Section 5 of this  Agreement,  the Required
Holders  shall have the right to select one legal  counsel to review and comment
upon any registration  pursuant to this Agreement (the "LEGAL  COUNSEL"),  which
the  Investors  agree shall be Schulte Roth & Zabel LLP or such other counsel as
thereafter  designated in writing by the Required Holders.  Schulte Roth & Zabel
LLP, or any other counsel  designated in writing by the Required Holders,  shall
not  represent  any Investor  that sends such counsel  written  notice that such
Investor  does not wish such  counsel to  represent  it in  connection  with the
matters  discussed in this Section 2(b). The Investors,  other than any Investor
that delivers the notice discussed in the preceding  sentence,  hereby waive any
conflict  of  interest or  potential  conflict  of interest  that may arise as a
result of the  representation  of such  Investors by Schulte Roth & Zabel LLP in
connection with the subject matter of this Agreement.

     (c)  Ineligibility  for  Form  S-3.  If Form S-3 is not  available  for the
registration  of the  resale  of the  Registrable  Securities  hereunder  or the
Company is not permitted by the 1933 Act or the Commission to use Form S-3, then
the Company  shall (i)  register  the resale of the  Registrable  Securities  on
another appropriate form reasonably acceptable to the Required Holders, and (ii)
undertake to register  the  Registrable  Securities  on Form S-3 as soon as such
form is available; provided, however, that the Company shall use reasonable best
efforts to maintain the  effectiveness  of the  Registration  Statement  then in
effect until such time as a  Registration  Statement on Form S-3 covering all of
the Registrable  Securities has been declared effective by the Commission or, if
earlier, until the end of the Registration Period (as defined in Section 3(a)).

     (d)  Effect of Failure  to File,  Obtain,  and  Maintain  Effectiveness  of
Registration Statement.  Subject to any elections made pursuant to Section 4(b),
if (i) a Registration  Statement covering all the Registrable  Securities is not
filed with the  Commission  on or before the Filing  Deadline or is not declared
effective by the Commission on or before the Effectiveness Deadline, (ii) on any
day  after  such  Registration  Statement  has been  declared  effective  by the
Commission,  sales of all of the Registrable  Securities required to be included
on such  Registration  Statement  cannot be made as a matter of law (other  than
during an Allowable  Grace Period (as defined in Section 3(m) of this Agreement)
pursuant to such Registration Statement (including,  without limitation, because
of a failure to keep such  Registration  Statement  effective,  to disclose such
information  as is necessary for sales to be made pursuant to such  Registration

                                       3
<PAGE>

Statement or to register a sufficient number of shares of Common Stock), or (iv)
a Grace Period (as defined in Section 3(m) of this Agreement) exceeds the length
of an Allowable  Grace Period (each of the items  described in clauses (i), (ii)
and (iii)  above  shall be  referred to as a  "REGISTRATION  DELAY"),  then,  as
damages to any  Affiliate  Holder by reason of any such delay in or reduction of
its ability to sell the Registrable  Securities,  then  liquidated  damages (the
"REGISTRATION  DELAY  PAYMENTS")  will accrue  (with  respect to each  Affiliate
Holder,  based on the  principal  amount  of the Notes or  Convertible  Notes or
liquidation  preference  on the  Preferred  Stock or, in the event of Conversion
Shares,  the  liquidation  preference  of the  Preferred  Stock  from  which the
Conversion Shares were converted) on Registrable  Securities (in addition to the
stated  interest or  dividends  on the Notes,  Convertible  Notes and  Preferred
Stock) from and  including the date on which any such  Registration  Delay shall
occur to but  excluding  the date on which  all  Registration  Delays  have been
cured.  During the  continuation  of a Registration  Delay,  Registration  Delay
Payments  will  accrue at a rate of 0.05% per month  during  the  90-day  period
immediately  following  the  occurrence of such  Registration  Default and shall
increase by 0.05% per month at the end of each subsequent 90-day period,  but in
no event shall such rate exceed 3.00% per annum. The Registration Delay Payments
shall be due and payable (1) with  respect to the Notes,  on the next  scheduled
interest  payment  date,  (2) with  respect to  Preferred  Stock,  upon the next
scheduled  dividend payment date and (3) with respect to Conversion  Shares,  on
the 30th day following the Registration  Delay (and, if such Registration  Delay
is  continuing,  each  30th day  thereafter  so long as any  Registration  Delay
Payments remain due and payable.  Following the cure of all Registration Delays,
the accrual of Registration  Delay Payments shall cease. The Registration  Delay
Payments  under this Section 2(d) shall be the sole and exclusive  remedy of the
Affiliate  Holders  of  Registrable   Securities  under  this  Agreement  for  a
Registration  Delay.   Notwithstanding  the  foregoing,  no  Registration  Delay
Payments  will be due  hereunder  to any  Affiliate  Holder with  respect to any
Notes, Preferred Stock or Conversion Shares that are not Registrable Securities.

     Section 3. Related  Obligations At such time as the Company is obligated to
file a Registration  Statement with the Commission pursuant to Section 2 of this
Agreement,   the  Company  will  use  reasonable  best  efforts  to  effect  the
registration  of  all of the  Registrable  Securities  in  accordance  with  the
intended method of disposition thereof and, pursuant thereto,  the Company shall
have the following obligations:

     (a) The  Company  shall  promptly  prepare and file with the  Commission  a
Registration Statement with respect to all of the Registrable Securities (but in
no event later than the  applicable  Filing  Deadline) and use  reasonable  best
efforts to cause such Registration  Statement relating to all of the Registrable
Securities  required  to be  covered  thereby  to  become  effective  as soon as
practicable  after  such  filing  (but in no event  later  than  the  applicable
Effectiveness Deadline). The Company shall submit to the Commission, within five
(5)  Business  Days  after the  Company  learns  that no review of a  particular
Registration  Statement  will be made by the staff of the Commission or that the
staff has no further  comments on a particular  Registration  Statement,  as the
case may be, a request for acceleration of  effectiveness  of such  Registration
Statement  to a time and date not later than 48 hours  after the  submission  of
such request.  The Company shall,  subject to the terms of this Agreement,  keep
each Registration  Statement  effective pursuant to Rule 415 at all times during

                                       4
<PAGE>

the period from the date it is initially declared effective until the earlier of
(i) the fifth  anniversary of the date such  Registration  Statement is declared
effective,  and (ii) the date as of which all of the  Investors  no longer  hold
Registrable   Securities  (the   "REGISTRATION   PERIOD"),   which  Registration
Statement,  as of its filing and effective  dates  (including  all amendments or
supplements  thereto, as of their respective filing and effective dates),  shall
not contain any untrue  statement of a material fact or omit to state a material
fact required to be stated therein, or necessary to make the statements therein,
not misleading,  and the prospectus contained in such Registration Statement, as
of its filing date  (including  all amendments and  supplements  thereto,  as of
their  respective  filing  dates),  shall not contain any untrue  statement of a
material fact or omit to state a material fact required to be stated thereon, or
necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading.

     (b) Subject to Section 3(m) of this  Agreement,  the Company  shall prepare
and  file  with  the  Commission  such  amendments   (including   post-effective
amendments)  and  supplements to the  Registration  Statement and the prospectus
used in connection with such Registration  Statement,  which prospectus is to be
filed pursuant to Rule 424 (or any successor rule thereto) promulgated under the
1933 Act, as may be necessary to keep such Registration  Statement  effective at
all times during the Registration  Period, and, during such period,  comply with
the provisions of the 1933 Act. In the case of amendments  and  supplements to a
Registration   Statement  and  the  prospectus  used  in  connection  with  such
Registration Statement which are required to be filed pursuant to this Agreement
(including  pursuant to this  Section  3(b)) by reason of the  Company  filing a
report on Form 10-K,  Form 10-Q or Form 8-K or any  analogous  report  under the
Securities  Exchange  Act of 1934,  as  amended,  and the rules and  regulations
thereunder, or any similar successor statute (the "1934 ACT"), the Company shall
have incorporated such report by reference into such Registration  Statement, if
applicable,  or shall file such amendments or supplements with the Commission on
the same day on which the 1934 Act report is filed which created the requirement
for  the  Company  to  amend  or  supplement  such  Registration  Statement  and
prospectus.

     (c) The Company  shall permit Legal  Counsel,  or if no Legal Counsel shall
have been chosen by the Investors,  the Investors, to review and provide written
comment upon each  Registration  Statement,  prospectus  and all  amendments and
supplements  thereto at least three (3) Business Days prior to their filing with
the  Commission,  except for any  amendment or supplement or document (a copy of
which has been  previously  furnished to the Investors and Legal  Counsel) which
counsel to the Company  shall  advise the Company is required to be filed sooner
in order to comply  with  applicable  law.  The  Company  shall  furnish  to the
Investors and Legal Counsel,  without charge, (i) promptly after receipt of such
correspondence, copies of all correspondence from the Commission or the staff of
the  Commission  to  the  Company  or  its  representatives   relating  to  each
Registration  Statement,  prospectus and all amendments and supplements thereto,
(ii) promptly after the same is prepared and filed with the Commission,  one (1)
copy  of  each  Registration  Statement,   prospectus  and  all  amendments  and
supplements  thereto,  including all exhibits and financial  statements  related
thereto,  and  (iii)  promptly  upon  the  effectiveness  of  each  Registration
Statement  and  each  amendment  and  supplement  thereto,  one (1)  copy of the
prospectus  included in each such Registration  Statement and all amendments and
supplements  thereto.  The Company  agrees  that it will,  and it will cause its
counsel  to,  consider  in good  faith any  comments  or  objections  from Legal

                                       5
<PAGE>

Counsel, or if no Legal Counsel shall have been selected,  the Investors,  as to
the  form  or  content  of  each  Registration  Statement,  prospectus  and  all
amendments  or  supplements  thereto  or any  request  for  acceleration  of the
effectiveness of each Registration  Statement,  prospectus and all amendments or
supplements thereto.

     (d) The Company shall furnish to each Investor whose Registrable Securities
are included in any Registration Statement, without charge to such Investor, (i)
upon the effectiveness of each Registration Statement,  such number of copies of
the prospectus  included in such  Registration  Statement and all amendments and
supplements  thereto as such  Investor may  reasonably  request,  and (iii) such
other  documents,  including copies of any preliminary or final  prospectus,  as
such  Investor may  reasonably  request from time to time in order to facilitate
the disposition of the Registrable Securities.

     (e)  Subject  to  Section  3(m)  of  this  Agreement,   and  excluding  any
Registrable  Securities held by Investors  electing to exclude their Registrable
Securities from the Registration Statement under Section 4(b), the Company shall
use commercially reasonable efforts to (i) promptly register and qualify, unless
an exemption from  registration  and  qualification  applies,  the resale of the
Registrable  Securities  under such other  securities  or "blue sky" laws of all
applicable  jurisdictions  in the  United  States as any  holder of  Registrable
Securities  reasonably  requests in writing,  (ii) promptly  prepare and file in
those jurisdictions,  such amendments (including post-effective  amendments) and
supplements  to such  registrations  and  qualifications  as may be necessary to
maintain  the  effectiveness  thereof  during  the  Registration  Period,  (iii)
promptly take such other actions as may be reasonably necessary to maintain such
registrations and  qualifications in effect at all times during the Registration
Period,  and (iv)  promptly  take all  other  actions  reasonably  necessary  or
advisable to qualify the Registrable  Securities for sale in such jurisdictions;
provided,  however,  that  the  Company  shall  not be  required  in  connection
therewith or as a condition  thereto to (A) file a general consent to service of
process in any such jurisdiction, except in such jurisdictions where the Company
is subject to service of process or (B) qualify  generally to do business in any
such  jurisdiction,  except  in  such  jurisdictions  where  the  Company  would
otherwise  be required  to  qualify.  The  Company  shall  promptly  notify each
Investor who holds  Registrable  Securities  and Legal Counsel of the receipt by
the  Company  of  any  notification  with  respect  to  the  suspension  of  the
registration  or  qualification  of any of the  Registrable  Securities for sale
under the securities or "blue sky" laws of any jurisdiction in the United States
or its receipt of notice of the  initiation or threatening of any proceeding for
such purpose.

     (f) Notwithstanding  anything to the contrary set forth herein, as promptly
as practicable after becoming aware of such event, the Company shall notify each
Investor and Legal  Counsel in writing of the happening of any event as a result
of which (i) the Registration  Statement or any amendment or supplement thereto,
as then in effect,  includes an untrue  statement of a material fact or omission
to state a material fact required to be stated  therein or necessary to make the
statements  therein  not  misleading  or (ii)  the  prospectus  related  to such
Registration Statement or any amendment or supplement thereto includes an untrue
statement of a material fact or omission to state a material fact required to be
stated  therein or necessary  to make the  statements  therein,  in light of the
circumstances  under  which  they were made,  not  misleading,  and,  subject to
Section 3(m) of this  Agreement,  promptly  prepare a supplement or amendment to
such  Registration  Statement and prospectus to correct such untrue statement or
omission,  and deliver such number of copies of such  supplement or amendment to
each Investor and Legal Counsel as such Investor or Legal Counsel may reasonably
request.  The Company shall also promptly notify each Investor and Legal Counsel
in writing (i) when a prospectus  and each  prospectus  supplement  or amendment
thereto has been filed,  and when a  Registration  Statement and each  amendment

                                       6
<PAGE>

(including  post-effective  amendments)  has  been  declared  effective  by  the
Commission  (notification  of such  effectiveness  shall  be  delivered  to each
Investor and Legal  Counsel by  facsimile on the same day of such  effectiveness
and by overnight mail),  (ii) of any request by the Commission for amendments or
supplements  to a  Registration  Statement  or  related  prospectus  or  related
information,  and  (iii)  of the  Company's  reasonable  determination  that  an
amendment   (including  any   post-effective   amendment)  or  supplement  to  a
Registration  Statement or prospectus  would be appropriate  (subject to Section
3(n) hereof).

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

     (h) The  Company  shall  use  reasonable  best  efforts  to  cause  all the
Conversion  Shares to be listed on each  securities  exchange  or traded on each
securities  market on which securities of the same class or series issued by the
Company are then listed or traded, as the case may be, if any, if the listing or
trading  of such  Conversion  Shares is then  permitted  under the rules of such
exchange or market.  The Company  shall pay all fees and expenses in  connection
with satisfying its obligation under this Section 3(i).

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

     (j)  If  requested  by an  Investor,  the  Company  shall  (i) as  soon  as
practicable,   incorporate  in  each  prospectus  supplement  or  post-effective
amendment to the Registration Statement such information as an Investor provides
in writing and reasonably  requests to be included  therein relating to the sale
and distribution of the Registrable Securities, and (ii) as soon as practicable,
make all  required  filings  of such  prospectus  supplement  or  post-effective
amendment  after  being  notified  of the  matters  to be  incorporated  in such
prospectus supplement or post-effective amendment.

     (k) The Company shall comply with all applicable  rules and  regulations of
the Commission in connection with any registration hereunder.

     (l) Within two (2) Business Days after a Registration  Statement is ordered
effective by the  Commission,  the Company will so notify the transfer agent for

                                       7
<PAGE>

the Registrable  Securities and the Investors whose  Registrable  Securities are
included in the Registration Statement.

     (m)  Notwithstanding  anything to the contrary herein,  at any time after a
Registration  Statement  has been  declared  effective  by the  Commission,  the
Company may delay the disclosure of material non-public  information  concerning
the Company if the  disclosure  of such  information  at the time is not, in the
good  faith  judgment  of the Board of  Directors  of the  Company,  in the best
interests of the Company (a "GRACE PERIOD"); provided, however, that the Company
shall  promptly (i) notify the Investors in writing of the existence of material
non-public  information giving rise to a Grace Period (provided that the Company
shall not disclose the content of such material  non-public  information  to the
Investors)  and the date on which the Grace  Period will begin,  and (ii) notify
the  Investors in writing of the date on which the Grace  Period ends;  provided
further,  that no single  Grace  Period shall exceed an aggregate of thirty (30)
days in any three (3) month  period,  and  during any three  hundred  sixty-five
(365) day period,  the aggregate of all of the Grace Periods shall not exceed an
aggregate  of ninety (90) days and the first day of any Grace  Period must be at
least five (5) trading  days after the last day of any prior Grace  Period (each
Grace Period  complying with this provision being an "ALLOWABLE  GRACE PERIOD").
For purposes of determining the length of a Grace Period, the Grace Period shall
be deemed to begin on and  include  the date the  Investors  receive  the notice
referred  to in clause (i) above and shall end on and  include  the later of the
date the Investors  receive the notice  referred to in clause (ii) above and the
date referred to in such notice;  provided,  however, that no Grace Period shall
be longer than an Allowable Grace Period. The provisions of Section 3(g) of this
Agreement  shall not be  applicable  during  the period of any  Allowable  Grace
Period. Upon expiration of the Grace Period, the Company shall again be bound by
the first sentence of Section 3(f) of this Agreement.

     (n) The Company shall make generally  available to its security  holders as
soon as  practical,  but not later than  ninety (90) days after the close of the
period covered  thereby,  an earnings  statement (in form complying with, and in
the manner  provided by, the provisions of Rule 158 under the 1933 Act) covering
a  twelve-month  period  beginning not later than the first day of the Company's
fiscal quarter next  following the effective  date of a Registration  Statement,
and which requirement will be deemed to be satisfied if the Company timely files
complete and accurate  information on Forms 10Q, 10-K and 8-K under the 1934 Act
and otherwise complies with Rule 158 under the 1933 Act.

     Section 4. Obligations of the Investors

     (a) At least ten (10) Business Days prior to the first  anticipated  filing
date of a  Registration  Statement,  the Company  shall notify each  Investor in
writing of the information the Company  requires from each such Investor if such
Investor elects to have any of such Investor's  Registrable  Securities included
in such  Registration  Statement.  It  shall  be a  condition  precedent  to the
obligations  of the  Company  to  complete  the  registration  pursuant  to this
Agreement with respect to the  Registrable  Securities of a particular  Investor
that such  Investor  shall  furnish to the  Company  promptly  such  information
regarding itself, the Registrable  Securities held by it and the intended method
of disposition of the  Registrable  Securities held by it as shall be reasonably
required to effect the  effectiveness  of the  registration of such  Registrable
Securities and shall execute such documents in connection with such registration

                                       8
<PAGE>

as the Company may reasonably  request.  Each Investor shall promptly notify the
Company of any  material  change  with  respect to such  information  previously
provided  to the  Company by such  Investor.  No  Investor  shall be entitled to
Registration  Delay  payments  pursuant to Section 2(d) hereof  unless and until
such Investor  shall have used its  reasonable  best efforts to provide all such
reasonably requested information.

     (b) Each  Investor  agrees to  cooperate  with the  Company  as  reasonably
requested by the Company in connection  with the  preparation  and filing of any
Registration Statement hereunder,  unless such Investor has notified the Company
in  writing  of such  Investor's  election  to  exclude  all of such  Investor's
Registrable  Securities from such  Registration  Statement,  in which case, such
Investor  does not need to  cooperate  with the Company  until it  notifies  the
Company of its  desire to include  one or more  Registrable  Securities  in such
Registration Statement.

     (c) Each Investor  agrees that, upon receipt of any notice from the Company
of the  happening of any event of the kind  described in Section 3(g) or 3(m) of
this  Agreement or the first  sentence of Section 3(f) of this  Agreement,  such
Investor will  immediately  discontinue  disposition of  Registrable  Securities
pursuant to any Registration  Statements  covering such  Registrable  Securities
until  such  Investor's  receipt of the  copies of the  amended or  supplemented
prospectus  contemplated by Section 3(g) of this Agreement or the first sentence
of Section  3(f) of this  Agreement  or receipt of notice that no  amendment  or
supplement is required and, if so directed by the Company,  such Investor  shall
deliver to the Company (at the expense of the  Company) or destroy  (and deliver
to the  Company a  certificate  of  destruction)  all  copies of the  prospectus
covering  such  Registrable  Securities  current  at the time of receipt of such
notice  (other than a single file copy,  which such  Investor  may keep) in such
Investor's possession.

     Section 5. Expenses of Registration All expenses,  other than  underwriting
discounts and commissions, incurred in connection with registrations, filings or
qualifications  pursuant  to  Sections  2 and 3 of  this  Agreement,  including,
without limitation, all registration,  listing and qualifications fees, printers
and accounting fees,  transfer agent fees and fees and  disbursements of counsel
for the Company,  shall be paid by the Company. The Company shall pay all of the
Investors'   reasonable   costs  incurred  in  connection  with  the  successful
enforcement of the Investors'  rights under this Agreement;  provided,  however,
the Company shall be responsible  for the reasonable fees and  disbursements  of
not more than one counsel, who shall be Legal Counsel.

     Section 6.  Indemnification  In the event any  Registrable  Securities  are
included in a Registration Statement under this Agreement:

     (a) To the fullest  extent  permitted by law, the Company will,  and hereby
does,  indemnify,  hold  harmless  and  defend  each  Investor,  the  directors,
officers,  members, partners,  employees,  agents,  representatives of, and each
Person,  if any, who controls any Investor within the meaning of the 1933 Act or
the 1934 Act (each,  an  "INDEMNIFIED  PERSON"),  against  any  losses,  claims,
damages,  liabilities,  judgments, fines, penalties,  charges, costs, reasonable
attorneys'  fees,  amounts paid in  settlement  or  expenses,  joint or several,
(collectively,  "CLAIMS") incurred in investigating,  preparing or defending any

                                       9
<PAGE>

action, claim, suit, inquiry, proceeding, investigation or appeal taken from the
foregoing  by or  before  any  court or  governmental,  administrative  or other
regulatory  agency,  body or the  Commission,  whether  pending  or  threatened,
whether or not an indemnified  party is or may be a party thereto  ("INDEMNIFIED
DAMAGES"),  to which any of them may become  subject  insofar as such Claims (or
actions or proceedings,  whether  commenced or threatened,  in respect  thereof)
arise  out of or are based  upon (i) any  untrue  statement  or  alleged  untrue
statement  of a  material  fact in a  Registration  Statement  or any  amendment
(including post-effective  amendments) or supplement thereto, or the omission or
alleged  omission  to state a material  fact  required  to be stated  therein or
necessary to make the statements  therein,  in light of the circumstances  under
which they were made,  not  misleading,  (ii) any  untrue  statement  or alleged
untrue  statement of a material fact contained in any preliminary  prospectus if
authorized  for  use  by the  Company  prior  to  the  effective  date  of  such
Registration  Statement,  or  contained in the final  prospectus  (as amended or
supplemented,  if any) or the omission or alleged  omission to state therein any
material fact  necessary to make the  statements  made therein,  in light of the
circumstances  under which the statements therein were made, not misleading,  or
(iii) any  violation  or alleged  violation  by the Company of the 1933 Act, the
1934 Act,  any other  federal  law,  any  state or  common  law,  or any rule or
regulation  promulgated  thereunder in connection with a Registration  Statement
(the matters in the  foregoing  clauses (i) through  (iii) being,  collectively,
"Violations").  Subject to Section  6(c) of this  Agreement,  the Company  shall
reimburse the Indemnified Persons promptly as such expenses are incurred and are
due and payable,  for any legal fees or other  expenses  reasonably  incurred by
them  in   connection   with   investigating   or  defending   any  such  Claim.
Notwithstanding  anything to the contrary contained herein, the  indemnification
agreement  contained in this Section 6(a):  (i) shall not apply to a Claim by an
Indemnified  Person  arising  out of or based upon a Violation  which  occurs in
reliance upon and in  conformity  with  information  furnished in writing to the
Company by an Investor or its Legal Counsel expressly for use in connection with
the preparation of the Registration  Statement or any such amendment  thereof or
supplement  thereto;  (ii) shall not be  available  to the extent  such Claim is
based on a failure of the  Investor to deliver or to cause to be  delivered  the
prospectus made available by the Company,  including a corrected prospectus,  if
such prospectus or corrected prospectus was timely made available by the Company
pursuant to Section 3(d) of this Agreement; and (iii) shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior
written  consent  of the  Company,  which  consent  shall  not  be  unreasonably
withheld,  conditioned or delayed. Such indemnity shall remain in full force and
effect regardless of any  investigation  made by or on behalf of the Indemnified
Person and shall  survive the  transfer  of the  Registrable  Securities  by the
Investors pursuant to Section 9 of this Agreement.

     (b) In connection with any  Registration  Statement in which an Investor is
participating, each such Investor agrees to severally and not jointly indemnify,
hold  harmless  and defend,  to the same extent and in the same manner as is set
forth in Section 6(a) of this  Agreement,  the Company,  each of its  directors,
officers,  employees,  agents, affiliates and each Person, if any, who controls,
or is alleged to control,  the Company within the meaning of the 1933 Act or the
1934 Act (each,  an  "INDEMNIFIED  Party"),  against  any Claims or  Indemnified
Damages to which any of them may become  subject,  under the 1933 Act,  the 1934
Act or otherwise,  insofar as such Claims or Indemnified Damages arise out of or
are based upon any  Violation  (including  for  purposes  of this  paragraph,  a
material  violation  of this  Agreement  by the  Investor),  in each case to the
extent, and only to the extent,  that such Violation occurs in reliance upon and
in conformity with written information furnished to the Company by such Investor

                                       10
<PAGE>

or its Legal  Counsel  expressly for use in  connection  with such  Registration
Statement  and,  subject to Section 6(c) of this  Agreement,  such Investor will
reimburse  any legal or other  expenses  reasonably  incurred by an  Indemnified
Party in connection with  investigating  or defending any such Claim;  provided,
however,  that the indemnification  agreement contained in this Section 6(b) and
the  agreement  with  respect  to  contribution  contained  in Section 7 of this
Agreement  shall not apply to amounts  paid in  settlement  of any Claim if such
settlement is effected without the prior written consent of such Investor, which
consent shall not be unreasonably withheld or delayed;  provided,  further, that
the Investor shall be liable under this Section 6(b) for only that amount of the
Claims and  Indemnified  Damages as does not  exceed  the net  proceeds  to such
Investors  as a result of the sale of  Registrable  Securities  pursuant to such
Registration  Statement.  Such  indemnification  agreement  shall remain in full
force and effect  regardless of any  investigation  made by or on behalf of such
Indemnified  Party and shall survive the transfer of the Registrable  Securities
by the  Investors  pursuant  to  Section  9 of this  Agreement.  Notwithstanding
anything  to  the  contrary  contained  herein,  the  indemnification  agreement
contained in this Section 6(b) shall not inure to the benefit of any Indemnified
Party if the untrue  statement  or omission of material  fact  contained  in the
preliminary  prospectus  was corrected on a timely basis in the  prospectus,  as
then amended or supplemented.

     (c) Promptly  after an Indemnified  Person or Indemnified  Party under this
Section 6 has  knowledge  of any Claim as to which  such  Indemnified  Person or
Indemnified Party reasonably  believes indemnity may be sought or promptly after
such Indemnified Person or Indemnified Party receives notice of the commencement
of any action or proceeding  (including any  governmental  action or proceeding)
involving a Claim,  such  Indemnified  Person or Indemnified  Party shall,  if a
Claim in respect thereof is to be made against any indemnifying party under this
Section 6, deliver to the indemnifying party a written notice of such Claim, and
the  indemnifying  party  shall have the right to  participate  in,  and, to the
extent the indemnifying  party so desires,  jointly with any other  indemnifying
party similarly  noticed,  to assume control of the defense thereof with counsel
mutually  satisfactory to the indemnifying  party and the Indemnified  Person or
the  Indemnified  Party,  as  the  case  may  be;  provided,  however,  that  an
Indemnified  Person or Indemnified  Party shall have the right to retain its own
counsel if, in the reasonable  opinion of counsel  retained by the  indemnifying
party,  the  representation  by  such  counsel  of  the  Indemnified  Person  or
Indemnified  Party and the  indemnifying  party  would be  inappropriate  due to
actual or  potential  differing  interests  between such  Indemnified  Person or
Indemnified  Party and any  other  party  represented  by such  counsel  in such
proceeding;  provided,  further,  that  the  indemnifying  party  shall  not  be
responsible  for the  reasonable  fees and expense of more than one (1) separate
legal counsel for such Indemnified  Person or Indemnified  Party. In the case of
an  Indemnified  Person,  the  legal  counsel  referred  to in  the  immediately
preceding  sentence shall be selected by the Required  Holders.  The Indemnified
Party or Indemnified Person shall cooperate fully with the indemnifying party in
connection  with any  negotiation  or defense of any such action or Claim by the
indemnifying  party and shall furnish to the indemnifying  party all information
reasonably  available  to the  Indemnified  Party or  Indemnified  Person  which
relates  to such  action  or  Claim.  The  indemnifying  party  shall  keep  the
Indemnified  Party or  Indemnified  Person fully apprised at all times as to the
status of the defense or any settlement  negotiations  with respect thereto.  No
indemnifying  party shall be liable for any  settlement of any action,  claim or
proceeding effected without its prior written consent;  provided,  however, that
the indemnifying party shall not unreasonably  withhold,  delay or condition its
consent.  No indemnifying party shall,  without the prior written consent of the
Indemnified  Party or  Indemnified  Person,  consent to entry of any judgment or
enter into any  settlement  or other  compromise  which  does not  include as an
unconditional  term  thereof  the giving by the  claimant or  plaintiff  to such

                                       11
<PAGE>

Indemnified Party or Indemnified  Person of a full release from all liability in
respect  to such  Claim and  action and  proceeding.  After  indemnification  as
provided for under this Agreement, the rights of the indemnifying party shall be
subrogated to all rights of the  Indemnified  Party or  Indemnified  Person with
respect to all third parties,  firms or corporations  relating to the matter for
which  indemnification  has been made. The failure to deliver  written notice to
the  indemnifying  party as provided in this  Agreement  shall not relieve  such
indemnifying  party of any liability to the  Indemnified  Person or  Indemnified
Party under this Section 6, except to the extent that the indemnifying  party is
prejudiced in its ability to defend such action.

     (d) No Person involved in the sale of Registrable  Securities who is guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933
Act) in connection with such sale shall be entitled to indemnification  from any
Person  involved  in such sale of  Registrable  Securities  who is not guilty of
fraudulent misrepresentation.

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

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

     Section  7.   Contribution  To  the  extent  any   indemnification   by  an
indemnifying  party is  prohibited  or limited by law,  the  indemnifying  party
agrees to make the maximum contribution with respect to any amounts for which it
would  otherwise  be liable  under  Section 6 of this  Agreement  to the fullest
extent permitted by law; provided,  however,  that: (i) no contribution shall be
made  under  circumstances  where the  maker  would  not have  been  liable  for
indemnification  under  the  fault  standards  set  forth in  Section  6 of this
Agreement,  (ii) no Person involved in the sale of Registrable Securities who is
guilty of fraudulent  misrepresentation  (within the meaning of Section 11(f) of
the 1933 Act) in  connection  with such sale shall be entitled  to  contribution
from any  Person  involved  in such sale of  Registrable  Securities  who is not
guilty of fraudulent misrepresentation,  and (iii) contribution by any seller of
Registrable  Securities shall be limited in amount to the net amount of proceeds
received by such seller from the sale of such Registrable Securities pursuant to
such  Registration  Statement.  The provisions of this Section 7 shall remain in
full force and effect,  regardless of the investigation  made by or on behalf of
the  beneficiaries  of  this  Section  7  and  shall  survive  the  transfer  of
Registrable Securities by the Investors pursuant to Section 9 of this Agreement.

     Section 8. Reporting.

     (a)  Reports  Under The 1934 Act.  With a view to making  available  to the
Investors the benefits of Rule 144  promulgated  under the 1933 Act or any other
similar rule or  regulation  of the  Commission  that may at any time permit the

                                       12
<PAGE>

Investors to sell  securities of the Company to the public without  registration
("RULE 144"), the Company shall use reasonable best efforts to:

     (1)  make  and keep  public  information  available,  as  those  terms  are
understood and defined in Rule 144;

     (2) file with the  Commission  in a timely  manner  all  reports  and other
documents required of the Company under the 1933 Act and the 1934 Act; and

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

     (b) Rule 144A Information. The Company shall, upon request of any Investor,
make available to such Investor the information  required by Rule 144A(d)(4) (or
any successor rule) under the 1933 Act.

     Section  9.  Assignment  of  Registration  Rights  The  rights  under  this
Agreement shall be assignable by an Investor to which the Registrable Securities
are  transferable  (other than pursuant to a Registration  Statement or Rule 144
under the 1933  Act);  provided  that,  if and to the  extent  that such  Notes,
Preferred Stock or Conversion  Shares remain  Registrable  Securities  following
such  transfer:  (i) the  Investor  agrees in  writing  with the  transferee  or
assignee to assign such rights, and a copy of such agreement is furnished to the
Company  within a reasonable  time after such  assignment;  (ii) the Company is,
within a  reasonable  time after such  transfer or  assignment,  furnished  with
written notice of (a) the name and address of such  transferee or assignee,  and
(b) the  securities  with respect to which such rights are being  transferred or
assigned;  (iii) at or before the time the Company  receives the written  notice
contemplated by clause (ii) of this sentence,  the transferee or assignee agrees
in writing with the Company to be bound by all of the obligations of an Investor
under  this  Agreement;  and (iv) such  transfer  shall have been  conducted  in
accordance with all applicable federal and state securities laws.

                                       13
<PAGE>

     Section  10.  Amendment  of  Registration  Rights  Any  provision  of  this
Agreement may be amended and the  observance of any provision of this  Agreement
may  be  waived  (either  generally  or  in a  particular  instance  and  either
retroactively  or  prospectively),  only with the written consent of the Company
and the Required  Holders.  Any amendment or waiver  affected in accordance with
this  Section 10 shall be binding upon each  Investor  and the Company.  No such
amendment  shall be effective to the extent that it does not apply to all of the
holders of the Registrable Securities. No consideration shall be offered or paid
to any Person to amend or consent to a waiver or  modification  of any provision
of any of this Agreement unless the same consideration also is offered to all of
the parties to this Agreement.

     Section 11. Miscellaneous

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

     (b) Any  notices,  consents,  waivers or other  communications  required or
permitted to be given under the terms of this  Agreement  must be in writing and
will be  deemed  to have  been  delivered:  (i)  upon  receipt,  when  delivered
personally; (ii) upon receipt, when sent by facsimile (evidenced by mechanically
or electronically generated receipt by the sender's facsimile machine); or (iii)
one (1)  Business  Day after  deposit  with a  nationally  recognized  overnight
delivery  service,  in each case properly  addressed to the party to receive the
same. The addresses and facsimile numbers for such communications shall be:

                          If to the Company:

                          PRG-Schultz International, Inc.
                          600 Galleria Parkway, Suite 600
                          Atlanta, GA  30239
                          Facsimile: (770) 779-3133
                          Attention: Clinton McKellar, Jr., Esq.

                          with an additional copy to:

                          Weil, Gotshal & Manges LLP
                          200 Crescent Court, Suite 300
                          Dallas, TX  75201
                          Facsimile:  (214) 746-7777
                          Attention: W. Stuart Ogg, Esq.

                          with an additional copy to:

                          Arnall Golden Gregory LLP
                          171 17th Street NW, Suite 2100
                          Atlanta, GA  30363

                                       14
<PAGE>

                          Facsimile:  (404) 873-8501
                          Attention:  Joseph Alley, Jr., Esq.

                          If to Legal Counsel:

                          Schulte Roth & Zabel LLP
                          919 Third Avenue
                          New York, NY 10022
                          Facsimile: (212) 593-5955
                          Attention: Andre Weiss, Esq.

If to an Affiliate  Holder, to its address and facsimile number set forth on the
Schedule of Affiliate  Holders attached hereto as Exhibit A, with copies to such
Affiliate  Holder's  representatives  as set forth on the  Schedule of Affiliate
Holders,  or to  such  other  address  and/or  facsimile  number  and/or  to the
attention of such other Person as the  recipient  party has specified by written
notice given to each other party. Failure to transmit notice or communication to
an Affiliate  Holder or any defect in it shall not affect its  sufficiency  with
respect to other Affiliate  Holders.  If a notice or  communication  is given or
made  in the  manner  provided  above,  it is  duly  given,  whether  or not the
addressee receives it.

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

     (d) All questions  concerning the construction,  validity,  enforcement and
interpretation  of this Agreement  shall be governed by the internal laws of the
State of New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other  jurisdictions)
that would cause the application of the laws of any jurisdictions other than the
State of New York. Each party hereby  irrevocably  submits to the  non-exclusive
jurisdiction  of the  state and  federal  courts  sitting  the City of New York,
Borough of  Manhattan,  for the  adjudication  of any  dispute  hereunder  or in
connection  herewith or with any  transaction  contemplated  hereby or discussed
herein,  and hereby  irrevocably  waives,  and agrees not to assert in any suit,
action  or  proceeding,  any  claim  that it is not  personally  subject  to the
jurisdiction of any such court,  that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper.  Each party hereby  irrevocably waives personal service of process and
consents  to process  being  served in any such suit,  action or  proceeding  by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof.  Nothing contained herein shall be deemed
to limit in any way any right to serve  process in any manner  permitted by law.
If any  provision of this  Agreement  shall be invalid or  unenforceable  in any
jurisdiction,  such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity or  enforceability  of any  provision  of this  Agreement  in any other

                                       15
<PAGE>

jurisdiction.  EACH PARTY HEREBY  IRREVOCABLY  WAIVES ANY RIGHT IT MAY HAVE, AND
AGREES  NOT TO  REQUEST,  A JURY  TRIAL  FOR  THE  ADJUDICATION  OF ANY  DISPUTE
HEREUNDER  OR IN  CONNECTION  HEREWITH OR ARISING OUT OF THIS  AGREEMENT  OR ANY
TRANSACTION CONTEMPLATED HEREBY.

     (e) This Agreement,  the Restructuring Support Agreement, the Senior Notes,
the Convertible  Notes, the Preferred Stock and the documents  referenced herein
and therein (the "TRANSACTION  DOCUMENTS") constitute the entire agreement among
the parties hereto with respect to the subject matter hereof and thereof.  There
are no restrictions,  promises, warranties or undertakings, other than those set
forth or referred to herein and therein. The Transaction Documents supersede all
prior agreements and understandings among the parties hereto with respect to the
subject matter hereof and thereof.

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

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

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

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

     (j) All consents and other determinations made by the Investors pursuant to
this Agreement shall be made, unless otherwise  specified in this Agreement,  by
the Required Holders.

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

     (l) The obligations of each Affiliate Holder under any Transaction Document
are several and not joint with the  obligations of any other  Affiliate  Holder,
and no Affiliate  Holder shall be responsible in any way for the  performance of
the  obligations of any other Affiliate  Holder under any Transaction  Document.
Nothing  contained herein or in any other  Transaction  Document,  and no action
taken by any Affiliate  Holder  pursuant  hereto or thereto,  shall be deemed to
constitute  the Affiliate  Holders as a  partnership,  an  association,  a joint
venture or any other kind of entity,  or create a presumption that the Affiliate
Holders  are in any way acting in  concert  or as a group  with  respect to such
obligations or the transactions  contemplated by the Transaction Documents. Each
Affiliate  Holder  confirms  that  it  has  independently  participated  in  the
negotiation of the  transaction  contemplated  hereby with the advice of its own
counsel and advisors.  Each Affiliate  Holder shall be entitled to independently
protect  and  enforce  its rights,  including,  without  limitation,  the rights
arising out of this Agreement or out of any other Transaction Documents,  and it
shall  not be  necessary  for any  other  Affiliate  Holder  to be  joined as an
additional party in any proceeding for such purpose.

                                       16
<PAGE>

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

                                       COMPANY

                                       PRG-SCHULTZ INTERNATIONAL, INC.

                                       By: /s/ James B. McCurry
                                          --------------------------------------
                                             Name:
                                             Title:

               [Signatures of Affiliate Holders on Following Page]

<PAGE>

                [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]

                                       BLUM STRATEGIC PARTNERS II, L.P.

                                       By: /s/ Jose Medeiros
                                          --------------------------------------
                                             Name:  Jose Medeiros
                                             Title: Partner

                                       BLUM STRATEGIC PARTNERS II GMBH & CO. KG

                                       By: /s/ Jose Medeiros
                                          --------------------------------------
                                             Name:  Jose Medeiros
                                             Title: Partner

                                       BLUM CAPITAL PARTNERS, L.P.

                                       By: /s/ Jose Medeiros
                                          --------------------------------------
                                             Name:  Jose Medeiros
                                             Title: Partner

<PAGE>

                                       STINSON CAPITAL PARTNERS, L.P.

                                       By: /s/ Jose Medeiros
                                          --------------------------------------
                                             Name:  Jose Medeiros
                                             Title: Partner

                                       STINSON CAPITAL PARTNERS II, L.P.

                                       By: /s/ Jose Medeiros
                                          --------------------------------------
                                             Name:  Jose Medeiros
                                             Title: Partner

                                       STINSON CAPITAL PARTNERS QP, L.P.

                                       By: /s/ Jose Medeiros
                                          --------------------------------------
                                             Name:  Jose Medeiros
                                             Title: Partner

                                       STINSON CAPITAL PARTNERS S, L.P.

                                       By: /s/ Jose Medeiros
                                          --------------------------------------
                                             Name:  Jose Medeiros
                                             Title: Partner

<PAGE>

                                       PARKCENTRAL GLOBAL HUB LIMITED

                                       By: /s/ Steven Blasnik
                                          --------------------------------------
                                             Name:  Steven Blasnick
                                             Title: President

<PAGE>

                                       PETRUS SECURITIES, L.P.

                                       By: /s/ Steven Blasnik
                                          --------------------------------------
                                             Name:  Steven Blasnick
                                             Title: President of General Partner

<PAGE>

                                                                       EXHIBIT A

<TABLE>
<CAPTION>
                                    EXHIBIT A TO REGISTRATION RIGHTS AGREEMENT
                                                SCHEDULE OF HOLDERS

<S>                              <C>                  <C>                   <C>                 <C>
                                                       PRINCIPAL AMOUNT
                                  PRINCIPAL AMOUNT      OF CONVERTIBLE      NUMBER OF SERIES A    NUMBER OF SERIES B
        NAME OF HOLDERS          OF SENIOR NOTES(1)          NOTES           PREFERRED SHARES    PREFERRED SHARES (2)
-------------------------------- ------------------   ------------------    ------------------   --------------------
1. Blum Strategic Partners II,        $[6,094,050]         $7,054,560                  14,697            [14,694.65]
  L.P.
  909 Montgomery Street, Suite
  400
  San Francisco, CA 94133
  Facsimile: (415) 283-0601

2. Blum Strategic Partners II           $[125,638]           $145,440                     303               [302.95]
  GmbH & Co. KG
  909 Montgomery Street, Suite
  400
  San Francisco, CA 94133
  Facsimile: (415) 283-0601

3. Blum Capital Partners, L.P.             $[2488]              $2880                       6                    [6]
  909 Montgomery Street, Suite
  400
  San Francisco, CA 94133
  Facsimile: (415) 283-0601

4. Stinson Capital Partners,          $[3,046,402]         $3,526,560                   7,347             [7,345.82]
  L.P.
  909 Montgomery Street, Suite
  400
  San Francisco, CA 94133
  Facsimile: (415) 283-0601

5. Stinson Capital Partners           $[2,710,540]         $3,137,760                   6,537              [6535.95]
  (QP), L.P.
  909 Montgomery Street, Suite
  400
  San Francisco, CA 94133
  Facsimile: (415) 283-0601

6. Stinson Capital Partners           $[2,487,875]         $2,880,000                   6,000              [5999.04]
  II, L.P.
  909 Montgomery Street, Suite
  400
  San Francisco, CA 94133
  Facsimile: (415) 283-0601

7. Stinson Capital Partners S,          $[462,745]           $535,680                   1,116             [1,115.82]
  L.P.
  909 Montgomery Street, Suite
  400
  San Francisco, CA 94133
  Facsimile: (415) 283-0601

8. Parkcentral Global Hub              $[8,311576]         $9,621,600                  20,045            [20,041.79]
  Limited
  2300 West Plano Parkway
  Plano, TX  75075
  Facsimile: (972) 535-1997

9. Petrus Securities, L.P.            $[1,617,119]         $1,872,000                   3,900             [3,899.37]
  2300 West Plano Parkway
  Plano, TX  75075
  Facsimile: (972) 535-1997

</TABLE>

------------------
(1)  The  principal  amount  of the  Senior  Notes  was  calculated  by  issuing
     $414.64583333  per $1,000 of existing notes  surrendered.  Please note that
     the numbers listed in Exhibit A may not be exact due to rounding.
(2)  No shares of Series B Preferred  Shares are currently  issued.  This number
     assumes full conversion of the Senior Convertible Notes.

<PAGE>

                                                                       EXHIBIT B

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