Document:

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                                                                   EXHIBIT 10.17

                   EXECUTIVE NONSTATORY STOCK OPTION AGREEMENT

     AGREEMENT made as of 11th day of February 2002, between OIL STATES
INTERNATIONAL, INC., a Delaware corporation (the "Company"), and Douglas E.
Swanson ("Executive").

     To carry out the purposes of the 2001 EQUITY PARTICIPATION PLAN OF OIL
STATES INTERNATIONAL, INC. (the "Plan"), by affording Executive the opportunity
to purchase shares of the common stock of the Company, par value $.01 per share
("Stock"), and in consideration of the mutual agreements and other matters set
forth herein and in the Plan, the Company and Executive hereby agree as follows:

     1.  GRANT OF OPTION. The Company hereby irrevocably grants to Executive the
right and option ("Option") to purchase all or any part of an aggregate of
100,000 shares of Stock, on the terms and conditions set forth herein and in the
Plan, which Plan is incorporated herein by reference as a part of this
Agreement. In the event of any conflict between the terms of this Agreement and
the Plan, the Plan shall control. Capitalized terms used but not defined in this
Agreement shall have the meaning attributed to such terms in the Plan, unless
the context requires otherwise. This Option shall not be treated as an incentive
stock option, within the meaning of section 422(b) of the Internal Revenue Code
of 1986, as amended (the "Code").

     2.  PURCHASE PRICE. The purchase price of Stock purchased pursuant to the
exercise of this Option shall be $8.00 per share, which has been determined to
be not less than the fair market value of the Stock at the date of grant of this
Option. For all purposes of this Agreement, fair market value of Stock shall be
determined in accordance with the provisions of the Plan.

     3.  FORFEITURE OF OPTIONS.

     (a) All or a portion of this Option shall be subject to forfeiture,
effective as of January 31, 2003, based on the Company's Overall Score Ranking
as of January 31, 2003, in accordance with the following schedule:

<Table>
<Caption>
                                                     PERCENTAGE OF SHARES AS TO WHICH
           SCORE RANKING                                    OPTION IS FORFEITED
           -------------                                    -------------------
<S>                                                                  <C>
              Highest                                                0%

          Second Highest                                            33%

           Third Highest                                            67%

              Lowest                                               100%
</Table>

<PAGE>

Notwithstanding the forfeiture schedule provided above, if a Change of Control
of the Company occurs prior to January 31, 2003, this paragraph shall be of no
force or effect and the forfeiture restriction described in this paragraph shall
lapse as of the effective date of such Change of Control and the Option shall
vest as provided in Section 4 hereof.

     (b) The Company's Overall Score Ranking shall be based on a composite
ranking of the Company against its Peer Group as of January 31, 2003, which
ranking shall be determined by applying the following four metrics, in
accordance with the rules described in paragraph (e) below, to each of the
Company and the members of the Peer Group:

     i.   Number of equity analysts that actively cover the company ("Metric
          1");

     ii.  Average Daily Trading Volume of such company as a percentage of the
          company's Stock Float ("Metric 2");

     iii. The increase, on a percentage basis, of the Average Daily Stock Price
          of the company for the period November 1, 2001 through January 31,
          2002 as compared to the Average Daily Stock Price of such company for
          the period November 1, 2002 through January 31, 2003 ("Metric 3"); and

     iv.  The actual EBITDA trading multiple ("Metric 4").

     (c) For purposes of the Overall Score Ranking, for each metric described in
paragraph (b) above, each company being evaluated with respect to such metric
will receive a number of points that shall depend upon its relative place with
respect to its score for such metric as among the Company and the members of the
Peer Group as follows:

<Table>
<Caption>
                                     INDIVIDUAL METRIC SCORE
                       -------------------------------------------------------
                       Highest      Second Highest    Third Highest     Lowest
<S>                    <C>          <C>               <C>               <C>
Points Awarded            4                3                 2             1
</Table>

     In the event of a tied individual metric score, for purposes of computing
the Overall Score Ranking, each tied company will be awarded the greatest number
of points possible for the ranking level for such individual metric. To
determine a company's Overall Score Ranking, the points earned by such company
with respect to the individual metrics described in this paragraph shall be
totaled and the result shall equal such company's Overall Score Ranking. The
maximum number of points a company may achieve as its Overall Score Ranking
shall be 16 and the minimum number of points a company may achieve as its
Overall Score Ranking shall be four.

     (d) As used in this Section 3, the following capitalized terms shall have
the respective meanings set forth in this paragraph:

     i.   "Average Daily Stock Price" shall mean, with respect to a company and
          a time period at issue, the sum of the closing daily stock price for
          such company on each of the days during such period at issue, as
          reported by Yahoo, divided by the number of trading days in such
          period and as adjusted for stock splits.

                                       2
<PAGE>

      ii.   "Average Daily Trading Volume" shall mean, with respect to a company
            and a time period at issue, the sum of the daily trading volumes of
            such company on each of the days during such period, as reported by
            Yahoo, divided by the number of trading days included in such
            period, and as adjusted for stock splits.

      iii.  "EBITDA" shall mean, with respect to a company, such company's
            earnings before interest, taxes, depreciation, and amortization,
            with no adjustments made for unusual charges or credits during the
            period for which EBITDA is being determined.

      iv.   reported during the period.

      v.    "Enterprise Value" shall mean, with respect to a company, the sum of
            such company's Equity Value and Net Debt.

      vi.   "Equity Value" shall mean, with respect to a company, the product of
            such company's Average Daily Stock Price for the period January 1,
            2003 through January 31, 2003 and such company's number of fully
            diluted shares outstanding as of December 31, 2002, as reported by
            such company.

      vii.  "Net Debt" shall mean, with respect to a company, the sum of such
            company's interest bearing debt, minority interest, and preferred
            stock, less cash and cash equivalents, all as reported on such
            company's publicly reported financial statements as of December 31,
            2002.

      viii. "Overall Score Ranking" shall mean, with respect to a company, the
            sum of the points earned by such company on all four of the
            individual metrics described above, determined pursuant to this
            Section 3.

      ix.   "Peer Group" shall mean Hydril Co. (trading symbol HYDL), Superior
            Energy Services, Inc. (trading symbol SPN), and W-H Energy Services,
            Inc. (trading symbol WHES).

      x.    "Stock Float" shall mean, with respect to a company, the number of
            fully diluted shares outstanding as of January 31, 2003 minus the
            number of shares controlled by such company's insiders. For purposes
            of this calculation, shares will be considered controlled by a
            company's insiders if they are owned directly or beneficially by any
            member of such company's management or its board of directors. Such
            shares will be calculated based on the disclosures in such company's
            2002 Proxy Statement, adjusted for stock splits and ownership
            changes reported by such company in the SEC Form 13G filings made
            after the filing of such Proxy Statement but prior to January 31,
            2003.

      (e) The following rules shall apply with respect to the determination of
the individual metrics described in paragraph (b) above:

      i.    Metric 1: A company's score on Metric 1 shall equal the number of
            equity analysts that submitted earnings estimates to FirstCall as of
            January 31, 2003

                                       3
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            and that have published research reports on such company since
            August 30, 2002. If an equity analyst is possibly in a "gray period"
            (a period during which the analyst is not publishing estimates and
            research reports due to an impending or potential transaction being
            handled by the brokerage firm affiliated with such analyst) with
            respect to a company on which it has reported within the preceding
            12 months, then, for purposes of this Agreement, such analyst will
            be deemed to have submitted an earnings estimate or published a
            research report during the requisite time frame under this metric,
            unless such assumption is inappropriate under the circumstances, as
            determined in the Committee's sole discretion.

      xi.   Metric 2: A company's score on Metric 2 shall be equal to 100%
            multiplied by the quotient obtained by dividing the Average Daily
            Trading Volume during the period November 1, 2002 through January
            31, 2003 by the total Stock Float of such company as of January 31,
            2002.

      xii.  Metric 3: A company's score on Metric 3 shall be equal to 100%
            multiplied by (A) minus (B) where (A) equals the quotient obtained
            by dividing the Average Daily Stock Price for such company during
            the period November 1 2002 through January 31, 2003 by the Average
            Daily Stock Price for such company during the period November 1,
            2001 through January 31, 2002, and (B) equals the number one.

      xiii. Metric 4: A company's score on Metric 4 shall be equal to such
            company's Enterprise Value divided by the company's EBITDA, as
            publicly reported by the company for the 12 month period ending
            December 31, 2002.

An example of the calculation of each of the above-described metrics for each of
the Company and the members of the Peer Group, using data available as of March
14, 2002, is attached to this Agreement as Exhibit A.

      (f) The Committee shall determine the Company's Overall Score Ranking
relative to the members of the Peer Group as soon as practicable after January
31, 2003, taking into account the availability of the information required for
purposes of making such determination.

      4.  EXERCISE OF OPTION. Subject to the earlier expiration of this Option
as provided in this section and forfeiture as provided in Section 3 hereof, this
Option may be exercised, by written notice to the Company at its principal
executive office addressed to the attention of its Corporate Secretary at any
time and from time to time after the date of grant hereof, but, except as
otherwise provided below, this Option shall only be exercisable for a percentage
of the number of shares as to which this Option was not forfeited pursuant to
Section 3 (the "Retained Shares") determined by the number of full years from
the date of grant hereof to the date of such exercise, in accordance with the
following schedule:

                                       4
<PAGE>
<TABLE>
<CAPTION>
                                                    PERCENTAGE OF SHARES
            NUMBER OF FULL YEARS                    THAT MAY BE PURCHASED
            --------------------                    ---------------------
<S>                      <C>                                 <C>
            Less than    1 year                              0%
                         1 year                             25%
                         2 years                            50%
                         3 years                            75%
                         4 years or more                   100%
</TABLE>

However, if a Change of Control of the Company occurs prior to January 31, 2003,
this Option shall become 100% exercisable for the full number of shares set
forth in Section 1 as of the effective date of such Change of Control. Except to
the extent otherwise set forth in the Executive Agreement between the Company
and Executive (the "Executive Agreement"), if applicable, the terms of which are
incorporated herein by reference, this Option will terminate and cease to be
exercisable upon Executive's termination of employment with the Company, except
that:

            (1) If Executive's employment with the Company terminates by reason
      of disability (within the meaning of section 22(e)(3) of the Code), this
      Option may be exercised in full, but only as to the Retained Shares, by
      Executive at any time during the period of one year following such
      termination, or by Executive's estate (or the person who acquires this
      Option by will or the laws of descent and distribution or otherwise by
      reason of the death of Executive) during a one year period following
      Executive's death if Executive dies during the one year period following
      such termination; provided, however, that if such termination occurs prior
      to January 31, 2003, this Option may be exercised pursuant to this
      paragraph for the number of shares set forth in Section 1.

            (2) If Executive's employment with the Company terminates by reason
      of retirement, this Option may be exercised in full, but only as to the
      Retained Shares, by Executive at any time during the period of one year
      following such termination, or by Executive's estate (or the person who
      acquires this Option by will or the laws of descent and distribution or
      otherwise by reason of the death of Executive) during a one year period
      following Executive's death if Executive dies during the one year period
      following such termination; provided, however, that if Executive's
      retirement occurs prior to January 31, 2003, then the Committee shall
      determine, in its sole discretion, the number of shares that shall be
      deemed to constitute the "Retained Shares" for purposes of this provision
      based upon the methodology described in Section 3 and taking into account
      the amount of time between the effective date of this Agreement and the
      date of Executive's retirement. As used in this paragraph, "retirement"
      shall mean the termination of Executive's employment with the Company for
      reasons other than cause (as defined in (4) below) on or after attainment
      of age 65, or, with the express written consent of the Committee, on or
      after the age of 55.

            (3) If Executive dies while in the employ of the Company,
      Executive's estate, or the person who acquires this Option by will or the
      laws of descent and distribution

                                       5
<PAGE>
      or otherwise by reason of the death of Executive, may exercise this Option
      in full, but only as to the Retained Shares, at any time during the period
      of one year following the date of Executive's death; provided, however,
      that if Executive's death occurs prior to January 31, 2003, the number of
      shares for which this Option may be exercised pursuant to this paragraph
      is the number of shares set forth in Section 1.

            (4) If Executive's employment with the Company terminates for any
      reason other than as described in (1), (2) or (3) above, unless such
      employment is terminated for Cause, this Option may be exercised by
      Executive at any time during the period of three months following such
      termination, or by Executive's estate (or the person who acquires this
      Option by will or the laws of descent and distribution or otherwise by
      reason of the death of Executive) during a period of one year following
      Executive's death if Executive dies during such three-month period, but in
      each case only as to that percentage of the Retained Shares that Executive
      was entitled to purchase hereunder as of the date Executive's employment
      so terminates; provided, however, that if such termination occurs prior to
      January 31, 2003, then the Committee shall determine, in its sole
      discretion, the number of shares that shall be deemed to constitute the
      "Retained Shares" for purposes of this paragraph based upon the
      methodology described in Section 3 and taking into account the amount of
      time between the effective date of this Agreement and the date of such
      termination. For purposes of this Agreement, "Cause" shall have the
      meaning attributed to such term in the Executive Agreement, regardless of
      whether such agreement shall have expired or otherwise been terminated in
      accordance with its terms.

This Option shall not be exercisable in any event after the expiration of ten
years from the date of grant hereof. The purchase price of shares as to which
this Option is exercised shall be paid in full at the time of exercise (a) in
cash (including check, bank draft or money order payable to the order of the
Company), (b) by constructively tendering to the Company shares of Stock having
a fair market value equal to the purchase price and which shares, if acquired
pursuant to a Company granted option, have been held by Executive for more than
six months, (c) if the Stock is readily tradeable on a national securities
market, through a "cashless-broker" exercise in accordance with a
Company-established policy or program for the same, or (d) any combination of
the foregoing. No fraction of a share of Stock shall be issued by the Company
upon exercise of an Option or accepted by the Company in payment of the exercise
price thereof; rather, Executive shall provide a cash payment for such amount as
is necessary to effect the issuance and acceptance of only whole shares of
Stock. Unless and until a certificate or certificates representing such shares
shall have been issued by the Company to Executive, Executive (or the person
permitted to exercise this Option in the event of Executive's death) shall not
be or have any of the rights or privileges of a shareholder of the Company with
respect to shares acquirable upon an exercise of this Option.

      5.  WITHHOLDING OF TAX. To the extent that the exercise of this Option or
the disposition of shares of Stock acquired by exercise of this Option results
in compensation income to Executive for federal or state income tax purposes,
Executive shall deliver to the Company at the time of such exercise or
disposition such amount of money or, with the consent of the Committee, shares
of Stock as the Company may require to meet its minimum withholding obligations
under applicable tax laws or regulations, provided that if, when the Option is

                                       6
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exercised, Executive is subject to Section 16(b) of the Securities Exchange Act
of 1934, as amended, by reason of being a current or former officer or director
of the Company or an Affiliate, Executive may direct the Company to withhold a
number of Option shares for the exercise sufficient to satisfy such minimum tax
withholding requirements. No exercise of this Option shall be effective until
Executive (or the person entitled to exercise the option, as applicable) has
made arrangements approved by the Company to satisfy all applicable minimum tax
withholding requirements of the Company

      6.  STATUS OF STOCK. The Company intends to register for issuance under
the Securities Act of 1933, as amended (the "Act"), the shares of Stock
acquirable upon exercise of this Option, and to keep such registration effective
throughout the period this Option is exercisable. In the absence of such
effective registration or an available exemption from registration under the
Act, issuance of shares of Stock acquirable upon exercise of this Option will be
delayed until registration of such shares is effective or an exemption from
registration under the Act is available. The Company intends to use its
reasonable best efforts to ensure that no such delay will occur. In the event
exemption from registration under the Act is available upon an exercise of this
Option, Executive (or the person permitted to exercise this Option in the event
of Executive's death or incapacity), if requested by the Company to do so, will
execute and deliver to the Company in writing an agreement containing such
provisions as the Company may require to assure compliance with applicable
securities laws.

      Executive agrees that the shares of Stock which Executive may acquire by
exercising this Option will not be sold or otherwise disposed of in any manner
which would constitute a violation of any applicable securities laws, whether
federal or state. Executive also agrees (i) that the certificates representing
the shares of Stock purchased under this Option may bear such legend or legends
as the Committee deems appropriate in order to assure compliance with applicable
securities laws, and (ii) that the Company may refuse to register the transfer
of the shares of Stock purchased under this Option on the stock transfer records
of the Company if such proposed transfer would in the opinion of counsel
satisfactory to the Company constitute a violation of any applicable securities
laws and (iii) that the Company may give related instructions to its transfer
agent, if any, to stop registration of the transfer of the shares of Stock
purchased under this Option.

      7.  EMPLOYMENT RELATIONSHIP. Executive shall be considered to be in the
employment of the Company as long as Executive remains an Employee, Director or
consultant of the Company or any of its Affiliates. Any question as to whether
and when there has been a termination of such employment, and the cause of such
termination, shall be determined by the Committee and its determination shall be
final.

      8.  BINDING EFFECT. This Agreement shall be binding upon and inure to the
benefit of any successors to the Company and all persons lawfully claiming under
Executive.

      9. GOVERNING LAW. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas, without regard to conflicts of
law principles thereof.

                                       7
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Agreement to be duly
executed by its officer thereunto duly authorized, and Executive has executed
this Agreement, all as of the day and year first above written.

                                          OIL STATES INTERNATIONAL, INC.

                                          BY: /s/ Douglas E. Swanson
                                              ----------------------------------
                                          NAME:   Douglas E. Swanson
                                          TITLE:  President and Chief Executive
                                                  Officer

                                       8<PAGE>
                                                                     EXHIBIT 4.2

                                                                     [CONFORMED]

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

                          REGISTRATION RIGHTS AGREEMENT

                           Dated as of October 9, 2002

                                      among

                                 CONOCOPHILLIPS

                                    as Issuer

                                       and

                         BANC OF AMERICA SECURITIES LLC
                           J.P. MORGAN SECURITIES INC.
                            SALOMON SMITH BARNEY INC.
                                       AND

                          THE OTHER INITIAL PURCHASERS
                               REFERRED TO HEREIN

                            as the Initial Purchasers

--------------------------------------------------------------------------------
<PAGE>
                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (the "Agreement") dated as of October 9,
2002 among CONOCOPHILLIPS, a Delaware corporation (the "Company"), as issuer and
BANC OF AMERICA SECURITIES LLC, J.P. MORGAN SECURITIES INC., SALOMON SMITH
BARNEY INC. and the other parties referred to in Annex A hereto (each, an
"Initial Purchaser" and collectively, the "Initial Purchasers").

         This Agreement is made pursuant to the Purchase Agreement dated October
2, 2002 by and among the Company, and the Initial Purchasers (the "Purchase
Agreement"), which provides for the sale by the Company to the Initial
Purchasers of $400,000,000 aggregate principal amount of the Company's 3.625%
Notes due 2007, $1,000,000,000 aggregate principal amount of the Company's 4.75%
Notes due 2012 and $600,000,000 aggregate principal amount of the Company's
5.90% Notes due 2032 (collectively, the "Notes"). The Notes will be fully and
unconditionally guaranteed (the "Guarantees," and together with the Notes, the
"Securities") by Conoco Inc. and Phillips Petroleum Company (each a "Guarantor"
and together the "Guarantors"). In order to induce the Initial Purchasers to
enter into the Purchase Agreement and in satisfaction of a condition to the
Initial Purchasers' obligations thereunder, the Company has agreed to provide to
the Initial Purchasers and their respective direct and indirect transferees and
assigns the registration rights set forth in this Agreement.

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

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

                  "1933 Act" shall mean the Securities Act of 1933, as amended
         from time to time, and the rules and regulations of the SEC promulgated
         thereunder.

                  "1934 Act" shall mean the Securities Exchange Act of 1934, as
         amended from time to time, and the rules and regulations of the SEC
         promulgated thereunder.

                  "Additional Interest" shall have the meaning set forth in
         Section 2(e) hereof.

                  "Closing Time" shall mean October 9, 2002.

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

                  "Exchange Offer" shall mean the exchange offer by the Company
         and the Guarantors of Exchange Securities for Registrable Securities
         pursuant to Section 2(a) hereof.

                  "Exchange Offer Registration" shall mean a registration of the
         Exchange Offer under the 1933 Act effected pursuant to Section 2(a)
         hereof.
<PAGE>
                  "Exchange Offer Registration Statement" shall mean a
         registration statement of the Company and the Guarantors on Form S-4 or
         another appropriate form covering the Exchange Offer and all amendments
         and supplements to such registration statement, in each case including
         the Prospectus contained therein, all exhibits thereto and all material
         incorporated or deemed to be incorporated by reference therein.

                  "Exchange Securities" shall mean the 3.625% Notes due 2007,
         the 4.75% Notes due 2012 and the 5.90% Notes due 2032 of the Company
         and the related guarantees of the Guarantors to be issued under the
         Indenture with terms identical to the Securities (except that (i)
         provisions relating to an increase in the stated rate of interest
         thereon upon the occurrence of a Registration Default shall be
         eliminated and (ii) the transfer restrictions, minimum purchase
         requirements and legends relating to restrictions on ownership and
         transfer thereof as a result of the issuance of the Securities without
         registration under the 1933 Act shall be eliminated) and offered to
         Holders of Registrable Securities in exchange for Registrable
         Securities pursuant to the Exchange Offer.

                  "Guarantees" shall have the meaning set forth in the preamble
         of this Agreement.

                  "Holders" shall mean, as the context requires, (i) the Initial
         Purchasers, for so long as they own any Registrable Securities, and
         each of their respective successors, assigns and direct and indirect
         transferees who become registered holders of Registrable Securities
         under the Indenture and (ii) each Participating Broker-Dealer that
         holds Exchange Securities for so long as such Participating
         Broker-Dealer is required to deliver a prospectus meeting the
         requirements of the 1933 Act in connection with any resale of such
         Exchange Securities.

                  "Indenture" shall mean the Indenture dated as of October 9,
         2002 between the Company, the Guarantors and The Bank of New York, as
         trustee, as the same may be further amended or supplemented from time
         to time in accordance with the terms thereof.

                  "Interest Accrual Date" means October 9, 2002.

                  "Initial Purchasers" shall have the meaning set forth in the
         preamble of this Agreement.

                  "Majority Holders" shall mean the Holders of a majority of the
         aggregate principal amount of Registrable Securities outstanding
         (voting as one class); provided, however, that whenever the consent or
         approval of Holders of a specified percentage of Registrable Securities
         is required hereunder, Registrable Securities held by the Company or
         any of its affiliates (as such term is defined in Rule 405 under the
         1933 Act) shall be disregarded in determining whether such consent or
         approval was given by the Holders of such required percentage.

                  "NASD" shall mean the National Association of Securities
         Dealers, Inc.

                  "Notes" shall have the meaning set forth in the preamble of
         this Agreement.

                  "Notifying Broker-Dealer" shall have the meaning set forth in
         Section 3(f) hereof.

                                       2
<PAGE>
                  "Participating Broker-Dealer" shall have the meaning set forth
         in Section 3(f) hereof.

                  "Person" shall mean an individual, partnership, joint venture,
         limited liability company, corporation, trust or unincorporated
         organization or other entity, or a government or agency or political
         subdivision thereof.

                  "Private Exchange Securities" shall have the meaning set forth
         in Section 2(a) hereof.

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

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

                  "Registrable Securities" shall mean the Securities; provided,
         however, that any Securities shall cease to be Registrable Securities
         when (i) a Shelf Registration Statement with respect to the resale of
         such Securities shall have been declared effective under the 1933 Act
         and such Securities shall have been disposed of pursuant to such Shelf
         Registration Statement, (ii) such Securities shall have been sold to
         the public pursuant to Rule 144 (or any similar provision then in
         force, but not Rule 144A) under the 1933 Act or is saleable pursuant to
         Rule 144(k) under the 1933 Act, (iii) such Securities shall have ceased
         to be outstanding, (iv) such Securities shall have been exchanged for
         Exchange Securities which have been registered pursuant to the Exchange
         Offer Registration Statement upon consummation of the Exchange Offer
         unless such Exchange Securities are held by Participating
         Broker-Dealers or otherwise are not freely tradable without any
         limitations or restrictions under the 1933 Act, in which case such
         Exchange Securities will be deemed to be Registrable Securities until
         such time as such Exchange Securities are sold to a purchaser in whose
         hands such Exchange Securities are freely tradeable without any
         limitations or restrictions under the 1933 Act or (v) such Securities
         shall have been exchanged for Private Exchange Securities pursuant to
         this Agreement, in which case such Private Exchange Securities will be
         deemed to be Registrable Securities until such time as such Private
         Exchange Securities are sold to a purchaser in whose hands such Private
         Exchange Securities are freely tradeable without any limitations or
         restrictions under the 1933 Act.

                  "Registration Default" shall have the meaning set forth in
         Section 2(e) hereof.

                  "Registration Expenses" shall mean any and all expenses
         incident to performance of or compliance by the Company with this
         Agreement, including without limitation: (i) all SEC, stock exchange or
         NASD registration and filing fees, (ii) all fees and expenses

                                       3
<PAGE>
         incurred in connection with compliance with state or other securities
         or blue sky laws and compliance with the rules of the NASD (including
         reasonable fees and disbursements of one firm of counsel for any
         Holders in connection with qualification of any of the Exchange
         Securities or Registrable Securities under state or other securities or
         blue sky laws and any filing with and review by the NASD), (iii) all
         expenses of any Persons in preparing, printing and distributing any
         Registration Statement, any Prospectus, any amendments or supplements
         thereto, certificates representing the Securities, Private Exchange
         Securities (if any) or Exchange Securities and other documents relating
         to the performance of and compliance with this Agreement, (iv) all
         rating agency fees, (v) all fees and expenses incurred in connection
         with the listing, if any, of the Securities, Private Exchange
         Securities (if any) or Exchange Securities on any securities exchange
         or exchanges or on any quotation system, (vi) all fees and
         disbursements relating to the qualification of the Indenture under
         applicable securities laws, (vii) the fees and disbursements of counsel
         for the Company and the Guarantors and the fees and expenses of
         independent public accountants for the Company and the Guarantors or
         for any other Person, business or assets whose financial statements are
         included in any Registration Statement or Prospectus, (viii) the fees
         and expenses of the Trustee, any registrar, any depositary, any paying
         agent, any escrow agent or any custodian, in each case including fees
         and disbursements of their respective counsel, (ix) the reasonable fees
         and expenses of counsel to the Initial Purchasers in connection with
         the Exchange Offer and (x) the fees and disbursements, if any, of one
         firm of special counsel representing the Holders of Registrable
         Securities designated pursuant to Section 2(c) below.

                  "Registration Statement" shall mean any registration statement
         of the Company and the Guarantors relating to any offering of the
         Exchange Securities or Registrable Securities pursuant to the
         provisions of this Agreement (including, without limitation, any
         Exchange Offer Registration Statement and any Shelf Registration
         Statement), and all amendments and supplements to any such Registration
         Statement, including post-effective amendments, in each case including
         the Prospectus contained therein, all exhibits thereto (other than the
         Statement of Eligibility under the TIA of the Trustee on Form T-1) and
         all material incorporated or deemed to be incorporated by reference
         therein.

                  "SEC" shall mean the Securities and Exchange Commission or any
         successor thereto.

                  "Securities" shall have the meaning set forth in the preamble
         to this Agreement.

                  "Shelf Registration" shall mean a registration covering the
         resale of Securities or Private Exchange Securities (if any) effected
         pursuant to Section 2(b) hereof.

                  "Shelf Registration Statement" shall mean a registration
         statement of the Company and the Guarantors on Form S-3 filed pursuant
         to Rule 415(a)(1)(i) under the 1933 Act covering the Shelf
         Registration, and all amendments and supplements to such registration
         statement, including post-effective amendments, in each case including
         the Prospectus contained therein, all exhibits thereto and all material
         incorporated or deemed to be incorporated by reference therein.

                                       4
<PAGE>
                  "TIA" shall mean the Trust Indenture Act of 1939, as amended
         from time to time, and the rules and regulations of the SEC promulgated
         thereunder.

                  "Trustee" shall mean the trustee with respect to the
         Securities, the Private Exchange Securities (if any) and the Exchange
         Securities under the Indenture.

         For purposes of this Agreement, (i) all references in this Agreement to
any Registration Statement, preliminary prospectus or Prospectus or any
amendment or supplement to any of the foregoing shall be deemed to include the
copy filed with the SEC pursuant to its Electronic Data Gathering, Analysis and
Retrieval system; (ii) all references in this Agreement to financial statements
and schedules and other information which is "contained", "included",
"disclosed" or "stated" in any Registration Statement, preliminary prospectus or
Prospectus (or other references of like import) shall be deemed to include all
such financial statements and schedules and other information which is
incorporated or deemed to be incorporated by reference in such Registration
Statement, preliminary prospectus or Prospectus, as the case may be, at the time
of effectiveness or delivery, as the case may be; (iii) all references in this
Agreement to amendments or supplements to any Registration Statement,
preliminary prospectus or Prospectus shall be deemed to include the filing of
any document under the 1934 Act which is incorporated or deemed to be
incorporated by reference in such Registration Statement, preliminary prospectus
or Prospectus, as the case may be, after the time of effectiveness or delivery,
as the case may be; (iv) all references in this Agreement to Rule 144, Rule 144A
or Rule 405 under the 1933 Act, and all references to any sections or
subsections thereof or terms defined therein, shall in each case include any
successor provisions thereto; and (v) all references in this Agreement to days
(but not to business days) shall mean calendar days.

         2. Registration Under the 1933 Act.

         (a) Exchange Offer Registration. To the extent not prohibited by
applicable law or by applicable interpretations of the staff of the SEC, the
Company shall, and shall cause the Guarantors to, use reasonable best efforts to
(A) file with the SEC on or prior to the 120th day after the Closing Time an
Exchange Offer Registration Statement covering the offer by the Company and the
Guarantors to the Holders to exchange all of the Registrable Securities for a
like aggregate principal amount of Exchange Securities, (B) cause such Exchange
Offer Registration Statement to be declared effective by the SEC no later than
the 180th day after the Closing Time, (C) cause such Registration Statement to
remain effective until the closing of the Exchange Offer and (D) consummate the
Exchange Offer no later than 45 days after the effective date of the Exchange
Offer Registration Statement. Upon the effectiveness of the Exchange Offer
Registration Statement, the Company shall promptly commence the Exchange Offer,
it being the objective of such Exchange Offer to enable each Holder eligible and
electing to exchange Registrable Securities for Exchange Securities (assuming
that such Holder (1) is not an affiliate of the Company or either Guarantor
within the meaning of Rule 405 under the 1933 Act or an Initial Purchaser
holding Securities acquired by it and having the status of an unsold allotment
in the initial offering and sale of Securities pursuant to the Purchase
Agreement, (2) acquires the Exchange Securities in the ordinary course of such
Holder's business and (3) has no arrangements or understandings with any Person
to participate in the Exchange Offer for the purpose of distributing such
Exchange Securities and is not engaged in, and does not intend to engage in, any
such distribution) to trade such Exchange Securities from and after their
receipt

                                       5
<PAGE>
without any limitations or restrictions under the 1933 Act or under the
securities or blue sky laws of the states of the United States.

         In connection with the Exchange Offer, the Company shall:

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

                  (ii) keep the Exchange Offer open for not less than 20
         business days (or longer if required by applicable law) after the date
         notice thereof is mailed to the Holders and, during the Exchange Offer,
         offer to all Holders who are eligible to participate in the Exchange
         Offer the opportunity to exchange their Registrable Securities for
         Exchange Securities;

                  (iii) use the services of a depositary or other exchange agent
         with an address in the Borough of Manhattan, The City of New York, for
         the Exchange Offer;

                  (iv) permit Holders to withdraw tendered Registrable
         Securities at any time prior to the close of business, New York City
         time, on the last business day on which the Exchange Offer shall remain
         open;

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

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

         If, at or prior to the consummation of the Exchange Offer, any Initial
Purchaser holds any Securities acquired by it and having the status of an unsold
allotment in the initial offering and sale of Securities pursuant to the
Purchase Agreement, or any Holder is not entitled to participate in the Exchange
Offer because of applicable law or interpretations thereof by the staff of the
SEC, the Company shall, upon the request of such Initial Purchaser or Holder,
simultaneously with the delivery of the Exchange Securities in the Exchange
Offer to other Holders, issue and deliver to such Initial Purchaser or Holder in
exchange for such Securities a like principal amount of debt securities of the
Company ("Private Exchange Securities"), and the Company shall cause the
Guarantors to provide corresponding guarantees, to be issued under the Indenture
with terms identical to the Exchange Securities, except that such debt
securities and related guarantees shall be subject to transfer restrictions and
minimum purchase requirements, shall bear a legend relating to restrictions on
ownership and transfer identical to those applicable to the Securities as a
result of the issuance thereof without registration under the 1933 Act and shall
provide for the payment of Additional Interest. The Company shall use its
reasonable best efforts to have the Private Exchange Securities bear the same
CUSIP number as the Exchange Securities and, if unable to do so, the Company
will, at such time as any Private Exchange Security ceases to be a "restricted
security" within the meaning of Rule 144 under the 1933 Act,

                                       6
<PAGE>
permit any such Private Exchange Security to be exchanged for a like principal
amount of Exchange Securities.

         The Exchange Securities and the Private Exchange Securities (if any)
shall be issued under the Indenture, which shall be qualified under the TIA.
Interest on each Exchange Security and such Private Exchange Security (if any)
will accrue from the last date on which interest was paid or duly provided for
on the Securities surrendered in exchange therefor or, if no interest has been
paid or duly provided for on such Securities, from the Interest Accrual Date.

         The Indenture shall provide that the Exchange Securities, the Private
Exchange Securities (if any) and the Securities of each series shall vote and
consent together on all matters as a single class and shall constitute a single
series of debt securities issued under the Indenture.

         As soon as practicable after the close of the Exchange Offer, the
Company shall with respect to each series of Securities:

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

                  (ii) deliver, or cause to be delivered, to the Trustee for
         cancellation all Registrable Securities so accepted for exchange by the
         Company; and

                  (iii) cause the Trustee promptly to authenticate and deliver
         Exchange Securities to each Holder of Registrable Securities so
         accepted for exchange equal in principal amount to the principal amount
         of the Registrable Securities of such Holder so accepted for exchange.

         The Exchange Offer shall not be subject to any conditions, other than
that (i) the Exchange Offer, or the making of any exchange by a Holder, does not
violate any applicable law or any applicable interpretation of the staff of the
SEC, (ii) no action or proceeding shall have been instituted or threatened in
any court or by or before any governmental agency with respect to the Exchange
Offer which, in the Company's judgment, would reasonably be expected to impair
the ability of the Company to proceed with the Exchange Offer and (iii) the
Holders tender the Registrable Securities to the Company in accordance with the
Exchange Offer. Each Holder of Registrable Securities (other than Participating
Broker-Dealers) who wishes to exchange such Registrable Securities for Exchange
Securities in the Exchange Offer will be required to represent that (1) it is
not an affiliate (as defined in Rule 405 under the 1933 Act) of the Company or
an Initial Purchaser holding Securities acquired by it and having the status of
an unsold allotment in the initial offering and sale of Securities pursuant to
the Purchase Agreement, (2) any Exchange Securities to be received by it will be
acquired in the ordinary course of business and (3) it has no arrangement or
understanding with any Person to participate in the distribution (within the
meaning of the 1933 Act) of the Exchange Securities and is not engaged in, and
does not intend to engage in, any such distribution, and shall be required to
make such other representations as may be reasonably necessary under applicable
SEC rules, regulations or interpretations to render the use of Form S-4 or
another appropriate form under the 1933 Act available.

                                       7
<PAGE>
         (b) Shelf Registration. (i) If, because of any change in law or
applicable interpretations thereof by the staff of the SEC, the Company and the
Guarantors are not permitted to effect the Exchange Offer as contemplated by
Section 2(a) hereof or (ii) if for any other reason (A) the Exchange Offer
Registration Statement is not declared effective within 180 days following the
Closing Time or (B) the Exchange Offer is not consummated within 45 days after
effectiveness of the Exchange Offer Registration Statement (provided that if the
Exchange Offer Registration Statement shall be declared effective after such
180-day period or if the Exchange Offer shall be consummated after such 45-day
period, then the Company's obligations under this clause (ii) arising from the
failure of the Exchange Offer Registration Statement to be declared effective
within such 180-day period or the failure of the Exchange Offer to be
consummated within such 45-day period, respectively, shall terminate), (iii) if
any Holder (other than an Initial Purchaser holding Securities acquired directly
from the Company and the Guarantors as part of the offering and sale of
Securities pursuant to the Purchase Agreement) is not eligible to participate in
the Exchange Offer because of any change in law or applicable interpretations
thereof by the staff of the SEC or elects to participate in the Exchange Offer
but does not receive Exchange Securities which are freely tradeable without any
limitations or restrictions under the 1933 Act or (iv) upon the request of any
Initial Purchasers (provided that, in the case of this clause (iv), such Initial
Purchaser shall hold Registrable Securities (including, without limitation,
Private Exchange Securities) that it acquired directly from the Company and the
Guarantors as part of the offering and sale of Securities pursuant to the
Purchase Agreement and such request is made before the date that is 90 days
after consummation of the Exchange Offer), the Company shall, and shall cause
the Guarantors to, at their cost:

                           (A) as promptly as practicable, but no later than (a)
                  the 180th day after the Closing Time or (b) the 60th day after
                  any such filing obligation arises, whichever is later, file
                  with the SEC a Shelf Registration Statement relating to the
                  resale of the Registrable Securities by the Holders from time
                  to time in accordance with the methods of distribution set
                  forth in such Shelf Registration Statement;

                           (B) use reasonable best efforts to cause such Shelf
                  Registration Statement to be declared effective by the SEC as
                  promptly as practicable, but in no event later than the 60th
                  day after the date on which the Company is required to file
                  the Shelf Registration Statement. In the event that the
                  Company and the Guarantors are required to file a Shelf
                  Registration Statement pursuant to clause (iii) or (iv) above,
                  the Company shall, and shall cause the Guarantors to, file and
                  use reasonable best efforts to have declared effective by the
                  SEC both an Exchange Offer Registration Statement pursuant to
                  Section 2(a) with respect to all Registrable Securities other
                  than the Private Exchange Securities (if any) and a Shelf
                  Registration Statement (which may be combined with the
                  Exchange Offer Registration Statement) with respect to resales
                  of Registrable Securities held by such Holder or such Initial
                  Purchaser, as applicable;

                           (C) use reasonable best efforts to keep the Shelf
                  Registration Statement continuously effective, supplemented
                  and amended as required, in order to permit the Prospectus
                  forming part thereof to be usable by Holders for a period (x)
                  of two years after the latest date on which any Securities are
                  originally issued by the Company and the Guarantors (subject
                  to extension pursuant to the last paragraph of Section 3) or,
                  (y) if earlier, when all of the Registrable Securities covered
                  by such Shelf Registration

                                       8
<PAGE>
                  Statement (i) have been sold pursuant to the Shelf
                  Registration Statement in accordance with the intended method
                  of distribution thereunder, (ii) become eligible for resale
                  pursuant to Rule 144(k) under the 1933 Act or (iii) cease to
                  be Registrable Securities; and

                           (D) notwithstanding any other provisions hereof, use
                  reasonable best efforts to ensure that (i) the Shelf
                  Registration Statement and each amendment thereto (if any) and
                  the Prospectus forming a part thereof and each amendment or
                  supplement thereto comply in all material respects with the
                  1933 Act and the rules and regulations thereunder, (ii)
                  neither the Shelf Registration Statement nor any amendment
                  thereto, when it becomes effective, contains an untrue
                  statement of a material fact or omits to state a material fact
                  required to be stated therein or necessary to make the
                  statements therein not misleading and (iii) except during
                  circumstances described in the last two paragraphs of Section
                  3, neither the Prospectus forming part of the Shelf
                  Registration Statement nor any amendment or supplement thereto
                  includes an untrue statement of a material fact or omits to
                  state a material fact necessary in order to make the
                  statements therein, in the light of the circumstances under
                  which they were made, not misleading; provided, however, that
                  this provision shall not apply to any statements or omissions
                  made in reliance upon and in conformity with information
                  furnished in writing to the Company by a holder of Registrable
                  Securities expressly for use therein.

         The Company shall not permit any securities other than Registrable
Securities to be included in the Shelf Registration Statement without the prior
written consent of Banc of America Securities LLC. The Company further agrees,
if necessary, to supplement or amend the Shelf Registration Statement if
reasonably requested by the Majority Holders with respect to information
relating to the Holders and otherwise as required by Section 3(b) below, to use
reasonable best efforts to cause any such amendment to become effective and such
Shelf Registration Statement to become usable as soon as practicable thereafter
and to furnish to the Holders of Registrable Securities as many copies of any
such supplement or amendment as such Holders may reasonably request promptly
after its being used or filed with the SEC.

         (c) Expenses. The Company shall pay all Registration Expenses in
connection with the registration pursuant to Section 2(a) and 2(b) hereof and,
in the case of the Shelf Registration Statement, will reimburse the Holders or
the Initial Purchasers for the reasonable fees and disbursements of one counsel
designated in writing by the Majority Holders of such Registrable Securities
included in such offering (or, if a Shelf Registration Statement is filed solely
pursuant to clause (iv) of the first paragraph of Section 2(b), designated by
the Initial Purchasers) to act as counsel for the Holders of the Registrable
Securities in connection therewith, which, until otherwise designated in
accordance with this Section 2(c), shall be Cravath, Swaine & Moore. Each Holder
shall pay all fees and disbursements of its counsel other than as set forth in
the preceding sentence or in the definition of Registration Expenses and all
discounts, commissions and other expenses (other than Registration Expenses) and
transfer taxes, if any, relating to the sale or disposition of such Holder's
Registrable Securities pursuant to a the Shelf Registration Statement.

                                       9

<PAGE>

         (d) Effective Registration Statement.

                  (i) The Company shall be deemed not to have used reasonable
         best efforts to cause the Exchange Offer Registration Statement or any
         Shelf Registration Statement, as the case may be, to become, or to
         remain, effective during the requisite periods set forth herein if the
         Company or either Guarantor takes any action or fails to take any
         action that could reasonably be expected to result in any such
         Registration Statement not being declared effective or remaining
         effective or in the Holders of Registrable Securities (including, under
         the circumstances contemplated by Section 3(f) hereof, Exchange
         Securities) covered thereby not being able to exchange or offer and
         sell such Registrable Securities during that period unless (A) such
         action is required by applicable law, (B) such action is taken or
         omitted by the Company or either Guarantor in good faith and for valid
         business reasons (which does not include avoidance of the Company's
         obligations hereunder), including the acquisition or divestiture of
         assets or a material corporate transaction or event, or (C) such action
         results from the happening of any event or the discovery of any facts
         which makes any statement made in such Registration Statement or the
         related Prospectus untrue in any material respect or which constitutes
         an omission to state a material fact in such Registration Statement or
         Prospectus, in each case so long as the Company promptly complies with
         the requirements of Section 3(k) hereof, if applicable, to notify
         Holders to suspend the use of the Prospectus. Nothing in this paragraph
         shall prevent the accrual of Additional Interest on any Securities,
         Private Exchange Securities or Exchange Securities.

                  (ii) An Exchange Offer Registration Statement pursuant to
         Section 2(a) hereof or a Shelf Registration Statement pursuant to
         Section 2(b) hereof shall not be deemed to have become effective unless
         it has been declared effective by the SEC; provided, however, that if,
         after it has been declared effective, the offering of Registrable
         Securities pursuant to a Registration Statement is interfered with by
         any stop order, injunction or other order or requirement of the SEC or
         any other governmental agency or court, such Registration Statement
         shall be deemed not to have been effective during the period of such
         interference until the offering of Registrable Securities pursuant to
         such Registration Statement may legally resume.

         (e) Increase in Interest Rate. In the event that:

                  (i) the Exchange Offer Registration Statement is not filed
         with the SEC on or prior to the 120th day following the Closing Time,
         or

                  (ii) the Exchange Offer Registration Statement is not declared
         effective by the SEC on or prior to the 180th day following the Closing
         Time, or

                  (iii) the Exchange Offer is not consummated on or prior to the
         45th day following the effective date of the Exchange Offer
         Registration Statement, or

                  (iv) if required, a Shelf Registration Statement is not filed
         with the SEC on or prior to (A) the 180th day following the Closing
         Time or (B) the 60th day after the filing obligation arises, whichever
         is later, or

                                       10
<PAGE>
                  (v) if required, a Shelf Registration Statement is not
         declared effective on or prior to the 60th day after the date on which
         the Company and the Guarantors are required to file such Shelf
         Registration Statement, or

                  (vi) a Shelf Registration Statement is declared effective by
         the SEC but such Shelf Registration Statement ceases to be effective or
         such Shelf Registration Statement or the Prospectus included therein
         ceases to be usable in connection with resales of Registrable
         Securities covered thereby for any reason and either (A) the aggregate
         number of days in any consecutive 365-day period for which the Shelf
         Registration Statement or such Prospectus shall not be effective or
         usable exceeds 90 days or (B) the Shelf Registration Statement or such
         Prospectus shall not be effective or usable for a period of more than
         30 consecutive days, or

                  (vii) the Exchange Offer Registration Statement is declared
         effective by the SEC but, if the Exchange Offer Registration Statement
         is being used in connection with the resale of Exchange Securities as
         contemplated by Section 3(f)(B) of this Agreement, the Exchange Offer
         Registration Statement ceases to be effective or the Exchange Offer
         Registration Statement or the Prospectus included therein ceases to be
         usable in connection with resales of Exchange Securities for any reason
         during the 180-day period referred to in Section 3(f)(B) of this
         Agreement (as such period may be extended pursuant to the last
         paragraph of Section 3 of this Agreement) and either (A) the aggregate
         number of days in any consecutive 365-day period for which the Exchange
         Offer Registration Statement or such Prospectus shall not be effective
         or usable exceeds 90 days or (B) the Exchange Offer Registration
         Statement or the Prospectus shall not be effective or usable for a
         period of more than 30 consecutive days,

(each of the events referred to in clauses (i) through (vii) above being
hereinafter called a "Registration Default"), the per annum interest rate borne
by the Registrable Securities of a series shall be increased ("Additional
Interest") by one-quarter of one percent (0.25%) per annum immediately following
such 120-day period in the case of clause (i) above, immediately following such
180-day period in the case of clause (ii) above, immediately following such
45-day period in the case of clause (iii) above, immediately following any such
180-day period or 60-day period, whichever ends later, in the case of clause
(iv) above, immediately following any such 60-day period in the case of clause
(v) above, immediately following the 90th day in any consecutive 365-day period
or immediately following the 30th consecutive day, whichever occurs first, that
a Shelf Registration Statement shall not be effective or a Shelf Registration
Statement or the Prospectus included therein shall not be usable as contemplated
by clause (vi) above, or immediately following the 90th day in any consecutive
365-day period or immediately following the 30th consecutive day, whichever
occurs first, that the Exchange Offer Registration Statement shall not be
effective or the Exchange Offer Registration Statement or the Prospectus
included therein shall not be usable as contemplated by clause (vii) above,
which rate will be increased by an additional one-quarter of one percent (0.25%)
per annum immediately following each 90-day period that any Additional Interest
continues to accrue under any circumstances; provided, however, that the
aggregate increase in such annual interest rate may in no event exceed one-half
of one percent (0.50%) per annum and the Company will not be required to pay
Additional Interest for more than one Registration Default at a time. Upon the
filing of the Exchange Offer Registration Statement after the 120-day period
described in clause (i) above,

                                       11
<PAGE>
the effectiveness of the Exchange Offer Registration Statement after the 180-day
period described in clause (ii) above, the consummation of the Exchange Offer
after the 45-day period described in clause (iii) above, the filing of the Shelf
Registration Statement after the 180-day period or 60-day period, as the case
may be, described in clause (iv) above, the effectiveness of a Shelf
Registration Statement after the 60-day period described in clause (v) above,
the Shelf Registration Statement once again being effective or the Shelf
Registration Statement and the Prospectus included therein becoming usable in
connection with resales of Registrable Securities of the applicable series, as
the case may be, in the case of clause (vi) above, or the Exchange Offer
Registration Statement once again being effective or the Exchange Offer
Registration Statement and the Prospectus included therein becoming usable in
connection with resales of Exchange Securities of the applicable series, as the
case may be, in the case of clause (vii) above, the interest rate borne by the
Registrable Securities of such series from the date of such filing,
effectiveness, consummation or resumption of effectiveness or useability, as the
case may be, shall be reduced to the original interest rate so long as no other
Registration Default shall have occurred with respect to such series and shall
be continuing at such time and the Company is otherwise in compliance with this
section; provided, however, that if, after any such reduction in interest rate,
one or more Registration Defaults with respect to such series shall again occur,
the interest rate of such series of Registrable Securities shall again be
increased pursuant to the foregoing provisions.

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

         Anything herein to the contrary notwithstanding, any Holder who was, at
the time the Exchange Offer was pending and consummated, eligible to exchange,
and did not validly tender or withdrew, its Securities for Exchange Securities
in the Exchange Offer will not be entitled to receive any Additional Interest.
For purposes of clarity, it is hereby acknowledged and agreed that, under
current interpretations of law by the SEC, Initial Purchasers holding unsold
allotments of Securities acquired from the Company and the Guarantors pursuant
to the Purchase Agreement are not eligible to participate in the Exchange Offer.

         (f) Specific Enforcement. Without limiting the remedies available to
the Initial Purchasers and the Holders, the Company acknowledges that any
failure by the Company to comply with its obligations under Sections 2(a)
through 2(d) hereof may result in material irreparable injury to the Initial
Purchasers, the Holders or the Participating Broker-Dealers for which there is
no adequate remedy at law, that it will not be possible to measure damages for
such injuries precisely and that, in the event of any such failure, the Initial
Purchasers, any Holder and any Participating Broker-Dealer may obtain such
relief as may be required to specifically enforce the Company's obligations
under Section 2(e) hereof.

                                       12
<PAGE>
         3. Registration Procedures. In connection with the obligations of the
Company with respect to the Registration Statements pursuant to Sections 2(a)
and 2(b) hereof, the Company shall, and shall cause the Guarantors to:

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

                  (b) prepare and file with the SEC such amendments and
         post-effective amendments to each Registration Statement as may be
         necessary under applicable law to keep such Registration Statement
         effective for the applicable period in accordance with Section 2
         hereof; cause each Prospectus to be supplemented by any required
         prospectus supplement, and as so supplemented to be filed pursuant to
         Rule 424 under the 1933 Act; and comply with the provisions of the 1933
         Act and the 1934 Act with respect to the disposition of all Securities
         covered by each Registration Statement during the applicable period in
         accordance with the intended method or methods of distribution by the
         selling Holders thereof;

                  (c) in the case of a Shelf Registration, (i) notify each
         Holder of Registrable Securities which may be included in such Shelf
         Registration, at least ten business days prior to filing or such
         shorter period as is reasonable under the circumstances, that a Shelf
         Registration Statement with respect to the Registrable Securities is
         being filed; (ii) furnish to each Holder of Registrable Securities, to
         counsel for the Initial Purchasers and to one firm of counsel for the
         Holders, without charge, as many copies of each Prospectus, including
         each preliminary Prospectus, and any amendment or supplement thereto
         and such other documents as such Holder or counsel may reasonably
         request, including financial statements and schedules and, if such
         Holder or counsel so requests, all exhibits (including those
         incorporated by reference) in order to facilitate the public sale or
         other disposition of the Registrable Securities; and (iii) subject to
         the penultimate paragraph of this Section 3, the Company hereby
         consents to the use of the Prospectus, including each preliminary
         Prospectus, or any amendment or supplement thereto by each of the
         Holders of Registrable Securities in connection with the offering and
         sale of the Registrable Securities covered by any Prospectus or any
         amendment or supplement thereto;

                  (d) use reasonable best efforts to register or qualify, to the
         extent required, the Registrable Securities under all applicable state
         securities or "blue sky" laws of such jurisdictions of the United
         States as any Holder of Registrable Securities covered by a
         Registration Statement shall reasonably request in writing by the time
         the applicable Registration Statement is declared effective, to
         cooperate with the Holders of any Registrable Securities in connection
         with any filings required to be made with the NASD,

                                       13
<PAGE>
         to keep each such registration or qualification effective during the
         period such Registration Statement is required to be effective and do
         any and all other acts and things which may be reasonably necessary or
         advisable to enable such Holder to consummate the disposition in each
         such jurisdiction of such Registrable Securities owned by such Holder;
         provided, however, that neither the Company nor either Guarantor shall
         be required to (i) file any general consent to service of process or to
         qualify as a foreign corporation or as a dealer in securities in any
         jurisdiction in which it is not so qualified or (ii) to subject
         themselves to taxation in any jurisdiction in which they are not so
         subject;

                  (e) in the case of a Shelf Registration, notify each Holder of
         Registrable Securities included in such Shelf Registration and one firm
         of counsel for such Holders promptly and, if requested by such Holder
         or counsel, confirm such advice in writing promptly (i) when a
         Registration Statement has become effective and when any post-effective
         amendments and supplements thereto become effective, (ii) of any
         request by the SEC or any state securities authority for post-effective
         amendments or supplements to a Registration Statement or Prospectus or
         for additional information after a Registration Statement has become
         effective, (iii) of the issuance by the SEC or any state securities
         authority of any stop order suspending the effectiveness of a
         Registration Statement or the initiation of any proceedings for that
         purpose, (iv) of the receipt by the Company or a Guarantor of any
         notification with respect to the suspension of the registration or
         qualification of the Registrable Securities for sale in any U.S.
         jurisdiction or the initiation or threatening of any proceeding for
         such purpose, (v) of the happening of any event or the discovery of any
         facts during the period a Shelf Registration Statement is effective
         which is contemplated in Section 2(d)(i)(A), 2(d)(i)(B) or 2(d)(i)(C)
         and (vi) of any determination by the Company or a Guarantor that a
         post-effective amendment to a Registration Statement would be
         appropriate; and without limitation to any other provisions of this
         Agreement, the Company agrees that this Section 3(e) shall also be
         applicable, mutatis mutandis, with respect to the Exchange Offer
         Registration Statement and the Prospectus included therein to the
         extent that such Prospectus is being used by Participating
         Broker-Dealers as contemplated by Section 3(f);

                  (f) (A) in the case of an Exchange Offer, (i) include in the
         Exchange Offer Registration Statement (x) a "Plan of Distribution"
         section substantially in the form set forth in Annex B hereto or other
         such form as is reasonably acceptable to Banc of America Securities LLC
         covering the use of the Prospectus included in the Exchange Offer
         Registration Statement by broker-dealers who have exchanged their
         Registrable Securities for Exchange Securities for the resale of such
         Exchange Securities and (y) a statement to the effect that any such
         broker-dealers who wish to use the related Prospectus in connection
         with the resale of Exchange Securities acquired as a result of
         market-making or other trading activities will be required to notify
         the Company to that effect, together with instructions for giving such
         notice (which instructions shall include a provision for giving such
         notice by checking a box or making another appropriate notation on the
         related letter of transmittal) (each such broker-dealer who gives
         notice to the Company as aforesaid being hereinafter called a
         "Notifying Broker-Dealer"), (ii) furnish to each Notifying
         Broker-Dealer who desires to participate in the Exchange Offer, without
         charge, as many copies of each Prospectus included in the Exchange
         Offer Registration Statement, including any preliminary prospectus, and
         any amendment or

                                       14
<PAGE>
         supplement thereto, as such broker-dealer may reasonably request, (iii)
         include in the Exchange Offer Registration Statement a statement that
         any broker-dealer who holds Registrable Securities acquired for its own
         account as a result of market-making activities or other trading
         activities (a "Participating Broker-Dealer"), and who receives Exchange
         Securities for Registrable Securities pursuant to the Exchange Offer,
         may be a statutory underwriter and must deliver a prospectus meeting
         the requirements of the 1933 Act in connection with any resale of such
         Exchange Securities, (iv) subject to the penultimate paragraph of this
         Section 3, the Company hereby consents to the use of the Prospectus
         forming part of the Exchange Offer Registration Statement or any
         amendment or supplement thereto by any Notifying Broker-Dealer in
         connection with the sale or transfer of Exchange Securities and (v)
         include in the transmittal letter or similar documentation to be
         executed by an exchange offeree in order to participate in the Exchange
         Offer substantially the following provision:

                  "If the undersigned is not a broker-dealer, the undersigned
         represents that it is not engaged in, and does not intend to engage in,
         a distribution of Exchange Securities. If the undersigned is a
         broker-dealer that will receive Exchange Securities for its own account
         in exchange for Registrable Securities, it represents that the
         Registrable Securities to be exchanged for Exchange Securities were
         acquired by it as a result of market-making activities or other trading
         activities and acknowledges that it will deliver a prospectus meeting
         the requirements of the 1933 Act in connection with any resale of such
         Exchange Securities pursuant to the Exchange Offer; however, by so
         acknowledging and by delivering a prospectus, the undersigned will not
         be deemed to admit that it is an "underwriter" within the meaning of
         the 1933 Act. If the undersigned is a broker-dealer, it represents that
         it did not purchase the Registrable Securities to be exchanged for
         Exchange Securities from the Company";

                  (B) to the extent any Notifying Broker-Dealer participates in
         the Exchange Offer, (i) the Company shall use reasonable best efforts
         to maintain the effectiveness of the Exchange Offer Registration
         Statement for a period of 180 days (subject to extension pursuant to
         the last paragraph of this Section 3) following the last date on which
         exchanges are accepted pursuant to the Exchange Offer and (ii) the
         Company will comply, insofar as relates to the Exchange Offer
         Registration Statement, the Prospectus included therein and the
         offering and sale of Exchange Securities pursuant thereto, with its
         obligations under Section 2(b)(D), the last paragraph of Section 2(b),
         Sections 3(c), 3(e), 3(i), 3(j), 3(k), 3(n), 3(o), 3(p) and 3(q) and
         the last two paragraphs of this Section 3 as if all references therein
         to a Shelf Registration Statement, the Prospectus included therein and
         the Holders of Registrable Securities referred, mutatis mutandis, to
         the Exchange Offer Registration Statement, the Prospectus included
         therein and the applicable Notifying Broker-Dealers and, for purposes
         of this Section 3(f), all references in any such paragraphs or sections
         to the "Majority Holders" shall be deemed to mean, solely insofar as
         relates to this Section 3(f), the Notifying Broker-Dealers who are the
         Holders of the majority in aggregate principal amount of the Exchange
         Securities which are Registrable Securities (voting as one class); and

                  (C) the Company shall not be required to amend or supplement
         the Prospectus contained in the Exchange Offer Registration Statement
         as would otherwise be

                                       15
<PAGE>
         contemplated by Section 3(b) or 3(k) hereof, or take any other action
         as a result of this Section 3(f), for a period exceeding 180 days
         (subject to extension pursuant to the last paragraph of this Section 3)
         after the date on which the Exchange Offer Registration Statement is
         declared effective or such shorter period of time such Notifying
         Broker-Dealers must comply with the prospectus delivery requirements of
         the 1933 Act in order to resell the Exchange Securities received in
         exchange for the Registrable Securities acquired for their own account
         as a result of market-making or other trading activity, and Notifying
         Broker-Dealers shall not be authorized by the Company to, and shall
         not, deliver such Prospectus after such period in connection with
         resales contemplated by this Section 3;

                  (g) (i) in the case of an Exchange Offer, furnish counsel for
         the Initial Purchasers and (ii) in the case of a Shelf Registration,
         furnish one firm of counsel for the Holders of Registrable Securities
         copies of any request by the SEC or any state securities authority for
         amendments or supplements to a Registration Statement or Prospectus or
         for additional information;

                  (h) use reasonable best effort to obtain the withdrawal of any
         order suspending the effectiveness of a Registration Statement as soon
         as practicable and provide prompt notice to each Holder of the
         withdrawal of any such order;

                  (i) in the case of a Shelf Registration, furnish to each
         Holder of Registrable Securities included in such Shelf Registration,
         upon request from such Holder and without charge, at least one
         conformed copy of each Registration Statement and any post-effective
         amendments thereto (without documents incorporated or deemed to be
         incorporated therein by reference or exhibits thereto, unless
         requested), if such documents are not available via the SEC EDGAR
         database;

                  (j) in the case of a Shelf Registration, cooperate with the
         selling Holders of Registrable Securities to facilitate the timely
         preparation and delivery of certificates representing Registrable
         Securities to be sold and not bearing any restrictive legends; and
         cause such Registrable Securities to be in such denominations
         (consistent with the provisions of the Indenture) and in a form
         eligible for deposit with the Depositary;

                  (k) in the case of a Shelf Registration, upon the occurrence
         of any event or the discovery of any facts as contemplated by Section
         3(e)(v) hereof, subject to the last paragraph of this Section 3 use
         reasonable best efforts to prepare a supplement or post-effective
         amendment to a Registration Statement or the related Prospectus or any
         document incorporated or deemed to be incorporated therein by reference
         or file any other required document so that, as thereafter delivered to
         the purchasers of the Registrable Securities, such Prospectus will not
         include at the time of such delivery any untrue statement of a material
         fact or omit to state a material fact necessary in order to make the
         statements therein, in light of the circumstances under which they were
         made, not misleading; the Company agrees to notify each Holder to
         suspend use of the Prospectus as promptly as practicable after the
         occurrence of such an event, and each Holder hereby agrees to suspend
         use of the Prospectus until the Company has amended or supplemented the
         Prospectus to correct such misstatement or omission; and at such time

                                       16
<PAGE>
         as such public disclosure is otherwise made or the Company determines
         that such disclosure is not necessary, in each case to correct any
         misstatement of a material fact or to include any omitted material
         fact, the Company agrees promptly to notify each Holder of such
         determination and to furnish each Holder such number of copies of the
         Prospectus, as amended or supplemented, as such Holder may reasonably
         request;

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

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

                  (n) in the case of a Shelf Registration, if requested by the
         Holders of a majority in principal amount of the Registrable Securities
         registered pursuant to such Shelf Registration Statement and consented
         to by the Company, which consent shall not be unreasonably withheld,
         effect not more than one underwritten registration and, in connection
         with such underwritten registration, enter into agreements (including
         underwriting agreements or similar agreements) and take all other
         customary and appropriate actions (including those reasonably requested
         by the Holders of a majority in principal amount of the Registrable
         Securities being sold) in order to expedite or facilitate the
         disposition of such Registrable Securities and in such connection, in a
         manner that is reasonable and customary;

                  (o) in the case of a Shelf Registration, make available for
         inspection by the Holders of the Registrable Securities included in
         such Shelf Registration Statement who shall certify to the Company in
         writing that they have a current intention to sell the Registrable
         Securities pursuant to the Shelf Registration Statement and any single
         firm of counsel or single firm of accountants retained by such Holders,
         all financial statements and other records, documents and properties of
         the Company reasonably requested by any such Persons, and cause the
         respective officers, directors, employees, and any other agents of the
         Company to supply all information reasonably requested by any such
         Persons in connection with a Shelf Registration Statement, subject to
         such confidentiality agreements as the Company may reasonably require
         and to privilege;

                  (p) (i) in the case of an Exchange Offer, a reasonable time
         prior to the filing of any Exchange Offer Registration Statement, any
         Prospectus forming a part thereof, any amendment to an Exchange Offer
         Registration Statement or amendment or supplement to such Prospectus
         (excluding documents incorporated by reference), provide copies of such

                                       17
<PAGE>
         documents to counsel for the Initial Purchasers, and will not file any
         such documents as to which the Initial Purchasers or their counsel may
         reasonably object prior to such filing; (ii) in the case of a Shelf
         Registration, a reasonable time prior to filing any Shelf Registration
         Statement, any Prospectus forming a part thereof, any amendment to such
         Shelf Registration Statement or amendment or supplement to such
         Prospectus (excluding documents incorporated by reference), provide
         copies of such document to the Holders of Registrable Securities
         included in such Shelf Registration Statement, to the Initial
         Purchasers, and to one firm of counsel for any such Holders or Initial
         Purchasers and will not file any such documents as to which the Holders
         of Registrable Securities, the Initial Purchasers or any of their
         respective counsel may reasonably object prior to such filing; and
         (iii) cause the representatives of the Company to be available for
         discussion of such documents as shall be reasonably requested by the
         Holders of Registrable Securities or the Initial Purchasers on behalf
         of such Holders, and shall not at any time make any filing of any such
         document of which such Holders, the Initial Purchasers on behalf of
         such Holders or their counsel shall not have previously been advised
         and furnished a copy as required by this Section 3(p) or to which the
         Majority Holders of Registrable Securities included in such
         Registration Statement, the Initial Purchasers on behalf of such
         Holders or their counsel shall reasonably object prior to such filing;

                  (q) in the case of a Shelf Registration, use reasonable best
         efforts to cause the Registrable Securities to be rated with the
         appropriate rating agencies, if so requested by the Majority Holders of
         Registrable Securities, unless the Registrable Securities are already
         so rated;

                  (r) otherwise use reasonable best efforts to comply with all
         applicable rules and regulations of the SEC and, with respect to each
         Registration Statement and each post-effective amendment, if any,
         thereto and each filing by the Company of an Annual Report on Form
         10-K, make available to its security holders, as soon as reasonably
         practicable, an earnings statement covering at least twelve months
         which shall satisfy the provisions of Section 11(a) of the 1933 Act and
         Rule 158 thereunder;

                  (s) in the case of a Shelf Registration, immediately after the
         filing of any document which is to be incorporated by reference into a
         Registration Statement or a Prospectus after initial filing of a
         Registration Statement, provide as many copies of such document to the
         Initial Purchasers on behalf of such Holders as shall be reasonably
         requested and, upon request of such Initial Purchasers, make
         representatives of the Company as shall be reasonably requested by the
         Holders of Registrable Securities, or the Initial Purchasers on behalf
         of such Holders, available for discussion of such document; and

                  (t) in the case of a Shelf Registration and if Exchange
         Securities are so listed, use reasonable best efforts to cause all
         Registrable Securities to be listed on any securities exchange on which
         Exchange Securities are then listed if such listing of Registrable
         Securities included in such Shelf Registration is requested by the
         Majority Holders.

         In the case of a Shelf Registration Statement, the Company may (as a
condition to such Holder's participation in the Shelf Registration) require each
Holder of Registrable Securities to

                                       18
<PAGE>
furnish to the Company such information regarding such Holder and the proposed
distribution by such Holder of such Registrable Securities as the Company may
from time to time reasonably request in writing and require such Holder to agree
in writing to be bound by all provisions of this Agreement applicable to such
Holder. Each Holder of Registrable Securities as to which any Shelf Registration
is being effected agrees to furnish promptly to the Company all information
required to be disclosed so that the information previously furnished to the
Company by such Holder is not materially misleading and does not omit to state
any material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances under which they
were made.

         In the case of a Shelf Registration Statement, each Holder agrees and,
in the event that any Participating Broker-Dealer is using the Prospectus
included in the Exchange Offer Registration Statement in connection with the
sale of Exchange Securities pursuant to Section 3(f), each such Participating
Broker-Dealer agrees that, upon receipt of any notice from the Company of the
happening of any event or the discovery of any facts of the kind described in
Section 3(e)(ii) through 3(e)(vi) hereof, such Holder or Participating
Broker-Dealer, as the case may be, will forthwith discontinue disposition of
Registrable Securities pursuant to a Registration Statement until receipt by
such Holder or Participating Broker-Dealer, as the case may be, of (i) the
copies of the supplemented or amended Prospectus contemplated by Section 3(k)
hereof or (ii) written notice from the Company that the Shelf Registration
Statement or the Exchange Offer Registration Statement, respectively, are once
again effective or that no supplement or amendment is required. If so directed
by the Company, such Holder or Participating Broker-Dealer, as the case may be,
will deliver to the Company (at the Company's expense) all copies in its
possession, other than permanent file copies then in its possession, of the
Prospectus covering such Registrable Securities that is current at the time of
receipt of such notice. Nothing in this paragraph shall prevent the accrual of
Additional Interest on any Securities, Private Exchange Securities or Exchange
Securities.

         If the Company shall give any such notice to suspend the disposition of
Registrable Securities pursuant to the immediately preceding paragraph, the
Company shall be deemed to have used reasonable best efforts to keep the Shelf
Registration Statement or, in the case of Section 3(f), the Exchange Offer
Registration Statement, as the case may be, effective during such period of
suspension; provided that (i) such period of suspension shall not exceed the
time periods provided in Section 2(e)(vii) hereof and (ii) the Company shall use
reasonable best efforts to file and have declared effective (if an amendment) as
soon as practicable thereafter an amendment or supplement to the Shelf
Registration Statement or the Exchange Offer Registration Statement or both, as
the case may be, or the Prospectus included therein and shall, subject to
Section 2(b)(C)(y), extend the period during which the Shelf Registration
Statement or the Exchange Offer Registration Statement or both, as the case may
be, shall be maintained effective pursuant to this Agreement (and, if
applicable, the period during which Participating Broker-Dealers may use the
Prospectus included in the Exchange Offer Registration Statement pursuant to
Section 3(f) hereof) by the number of days during the period from and including
the date of the giving of such notice to and including the earlier of the date
when the Holders or Participating Broker-Dealers, respectively, shall have
received copies of the supplemented or amended Prospectus necessary to resume
such dispositions and the effective date of written notice from the Company to
the Holders or Participating Broker-Dealers, respectively, that the

                                       19
<PAGE>
Shelf Registration Statement or the Exchange Offer Registration Statement,
respectively, are once again effective or that no supplement or amendment is
required.

         4. Underwritten Registrations.

         If any of the Registrable Securities covered by any Shelf Registration
are to be sold in an underwritten offering in accordance with Section 3(n), the
investment banker or investment bankers and manager or managers that will manage
the offering will be selected by the Majority Holders of such Registrable
Securities included in such offering, subject to the consent of the Company,
which consent shall not be unreasonably withheld.

         No Holder of Registrable Securities may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder's
Registrable Securities on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such
underwriting arrangements.

         5. Indemnification and Contribution.

         (a) The Company agrees to indemnify and hold harmless each Initial
Purchaser, each Holder, each Participating Broker-Dealer and each Person, if
any, who controls any Initial Purchaser, Holder or Participating Broker-Dealer
within the meaning of either Section 15 of the 1933 Act or Section 20 of the
1934 Act (each a "Company Indemnitee"), against any losses, claims, damages or
liabilities, joint or several, to which such Company Indemnitee may become
subject, under the 1933 Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of any material fact
contained in any Registration Statement pursuant to which Exchange Securities or
Registrable Securities were registered under the 1933 Act, any related
Prospectus, or any amendment or supplement thereto, or any related preliminary
prospectus or preliminary prospectus supplement, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
and will reimburse each Company Indemnitee for any legal or other expenses
reasonably incurred by such Company Indemnitee in connection with investigating
or defending any such loss, claim, damage, liability or action as such expenses
are incurred; provided, however, that the Company will not be liable in any such
case to the extent that any such loss, claim, damage or liability arises out of
or is based upon an untrue statement or alleged untrue statement in or omission
or alleged omission from any of such documents in reliance upon and in
conformity with written information furnished to the Company by any Initial
Purchaser, Holder or Participating Broker-Dealer with respect to such Initial
Purchaser, Holder or Participating Broker-Dealer, as the case may be,
specifically for use therein; and provided, further, that with respect to any
untrue statement or alleged untrue statement in or omission or alleged omission
from any preliminary prospectus or preliminary prospectus supplement the
indemnity agreement contained in this subsection (a) shall not inure to the
benefit of any Company Indemnitee from whom the person asserting any such
losses, claims, damages or liabilities purchased the Registrable Securities or
Exchange Securities concerned, to the extent that a prospectus supplement
relating to such Securities was required to be delivered by such

                                       20
<PAGE>
Company Indemnitee under the 1933 Act in connection with such purchase and any
such loss, claim, damage or liability of such Company Indemnitee results from
the fact that there was not sent or given to such person, at or prior to the
written confirmation of the sale of such Securities to such person, a copy of
the most recent Prospectus if the Company had previously furnished copies
thereof to such Company Indemnitee.

         (b) Each Initial Purchaser, each Holder and each Participating
Broker-Dealer will severally and not jointly indemnify and hold harmless the
Company, each Guarantor, their respective directors and officers, each other
Initial Purchaser, each other selling Holder, each other Participating
Broker-Dealer and each Person, if any, who controls the Company, any Guarantor,
any such Initial Purchaser, any such Holder and any such Participating
Broker-Dealer within the meaning of either Section 15 of the 1933 Act or Section
20 of the 1934 Act (each a "Holder Indemnitee"), against any losses, claims,
damages or liabilities to which such Holder Indemnitee may become subject, under
the 1933 Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
any Registration Statement pursuant to which Exchange Securities or Registrable
Securities were registered under the 1933 Act, any related Prospectus, or any
amendment or supplement thereto, or any related preliminary prospectus or
preliminary prospectus supplement, or arise out of or are based upon the
omission or the alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, in
each case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company by any
Initial Purchaser, Holder or Participating Broker-Dealer with respect to such
Initial Purchaser, Holder or Participating Broker-Dealer, as the case may be,
specifically for use therein, and will reimburse any legal or other expenses
reasonably incurred by the Company in connection with investigating or defending
any such loss, claim, damage, liability or action as such expenses are incurred.

         (c) Promptly after receipt by an indemnified party under this Section 5
of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under
subsection (a) or (b) above, notify the indemnifying party of the commencement
thereof; but the omission so to notify the indemnifying party will not relieve
it from any liability which it may have to any indemnified party otherwise than
under subsection (a) or (b) above. In case any such action is brought against
any indemnified party and it notifies the indemnifying party of the commencement
thereof, the indemnifying party will be entitled to participate therein and, to
the extent that it may wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel satisfactory to such
indemnified party (who shall not, except with the consent of the indemnified
party, be counsel to the indemnifying party), and after notice from the
indemnifying party to such indemnified party of its election so to assume the
defense thereof, the indemnifying party will not be liable to such indemnified
party under this Section 5 for any legal or other expenses subsequently incurred
by such indemnified party in connection with the defense thereof other than
reasonable costs of investigation. In no event shall the indemnifying parties be
liable for the fees and expenses of more than one counsel (in addition to any
local counsel) separate from their own counsel for all indemnified parties in
connection with any one action or separate but similar or related actions in the
same jurisdiction arising out of the same general allegations

                                       21
<PAGE>
or circumstances. No indemnifying party shall, without the prior written consent
of the indemnified party, effect any settlement of any pending or threatened
action in respect of which any indemnified party is or could have been a party
and indemnity could have been sought hereunder by such indemnified party unless
such settlement (i) includes an unconditional release of such indemnified party
from all liability on any claims that are the subject matter of such action and
(ii) does not include a statement as to, or an admission of fault, culpability
or a failure to act by or on behalf of an indemnified party.

         (d) If the indemnification provided for in this Section 5 is
unavailable or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities referred to in subsection (a) or (b) above (i) in
such proportion as is appropriate to reflect the relative benefits received by
the Company from the offering and sale of the Securities on the one hand and the
Initial Purchaser, Holder or Participating Broker-Dealer, as the case may be, on
the other from the sale of the Registrable Securities or Exchange Securities
pursuant to the applicable Registration Statement by such Initial Purchaser,
Holder or Participating Broker-Dealer or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Company on the one hand and such
Initial Purchaser, Holder or Participating Broker-Dealer on the other in
connection with the statements or omissions which resulted in such losses,
claims, damages or liabilities as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand
and such Initial Purchaser, Holder or Participating Broker-Dealer on the other
shall be deemed to be in the same proportion as the total net proceeds from the
offering (before deducting expenses) received by the Company bear to the total
proceeds received by such Initial Purchaser, Holder or Participating
Broker-Dealer on the sale of such Registrable Securities or Exchange Securities,
as the case may be. The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company or such Initial Purchaser, Holder or
Participating Broker-Dealer and the parties' relative intent, knowledge, access
to information and opportunity to correct or prevent such untrue statement or
omission. The amount paid by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the first sentence of this
subsection (d) shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending
any action or claim which is the subject of this subsection (d). Notwithstanding
the provisions of this subsection (d), no Initial Purchaser, Holder or
Participating Broker-Dealer shall be required to contribute any amount in excess
of the amount by which the total price at which the Registrable Securities or
Exchange Securities sold by it to any purchaser exceeds the amount of any
damages which such Initial Purchaser, Holder or Participating Broker-Dealer has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.

         (e) The obligations of the Company under this Section 5 shall be in
addition to any liability which the Company may otherwise have and shall extend,
upon the same terms and

                                       22
<PAGE>
conditions, to each person, if any, who controls any Initial Purchaser, Holder
or Participating Broker-Dealer within the meaning of Section 15 of the 1933 Act
or Section 20 of the 1934 Act; and the obligations of the Initial Purchasers,
Holders and Participating Broker-Dealers under this Section 5 shall be in
addition to any liability which the respective Initial Purchaser, Holder or
Participating Broker-Dealer may otherwise have and shall extend, upon the same
terms and conditions, to each Guarantor, each director of the Company or a
Guarantor, to each officer of the Company or a Guarantor who has signed the
Registration Statement and to each person, if any, who controls the Company or a
Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the
1934 Act.

         The indemnity and contribution provisions contained in this Section 5
shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of
any Initial Purchaser, Holder or Participating Broker-Dealer or any Person
controlling any Initial Purchaser, Holder or Participating Broker-Dealer, or by
or on behalf of the Company or either Guarantor, their officers or directors or
any Person controlling the Company or either Guarantor, (iii) acceptance of any
of the Exchange Securities and (iv) any sale of Registrable Securities or
Exchange Securities pursuant to a Shelf Registration Statement.

         6. Miscellaneous.

         (a) Rule 144 and Rule 144A. For so long as the Company is subject to
the reporting requirements of Section 13 or 15(d) of the 1934 Act, the Company
covenants that it will file all reports required to be filed by it under Section
13(a) or 15(d) of the 1934 Act and the rules and regulations adopted by the SEC
thereunder, that if it ceases to be so required to file such reports, it will
upon the request of any Holder or beneficial owner of Registrable Securities (i)
make publicly available such information (including, without limitation, the
information specified in Rule 144(c)(2) under the 1933 Act) as is necessary to
permit sales pursuant to Rule 144 under the 1933 Act, (ii) deliver or cause to
be delivered, promptly following a request by any Holder or beneficial owner of
Registrable Securities or any prospective purchaser or transferee of Registrable
Securities designated by such Holder or beneficial owner, such information
(including, without limitation, the information specified in Rule 144A(d)(4)
under the 1933 Act) as is necessary to permit sales pursuant to Rule 144A under
the 1933 Act, and (iii) take such further action that is reasonable in the
circumstances, in each case to the extent required from time to time to enable
such Holder to sell its Registrable Securities without registration under the
1933 Act within the limitation of the exemptions provided by Rule 144, Rule 144A
or any similar rules or regulations hereafter adopted by the SEC. Upon the
request of any Holder or beneficial owner of Registrable Securities, the Company
will deliver to such Holder or beneficial owner a written statement as to
whether it has complied with such requirements. Notwithstanding the foregoing,
nothing in this Section 6(a) shall be deemed to require the Company to register
any of its securities pursuant to the 1934 Act.

         (b) No Inconsistent Agreements. The Company has not entered into, nor
will the Company on or after the date of this Agreement enter into, any
agreement which is inconsistent with the rights granted to the Holders of
Registrable Securities in this Agreement or otherwise conflicts with the
provisions hereof. The rights granted to the Holders hereunder do not and will
not in any way conflict with and are not and will not be inconsistent with the
rights granted to the

                                       23
<PAGE>
holders of any of the Company's other issued and outstanding securities under
any other agreements entered into by the Company or any of its subsidiaries.

         (c) Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the Company has obtained the written consent of Holders of a
majority in aggregate principal amount of the outstanding Registrable Securities
affected by such amendment, modification, supplement, waiver or departure. Each
Holder of Registrable Securities outstanding at the time of any such amendment,
modification, supplement, waiver or consent thereafter shall be bound by any
such amendment, modification, supplement, waiver or consent effected pursuant to
this Section 6(c), whether or not any notice, writing or marking indicating such
amendment, modification, supplement, waiver or consent appears on the
Registrable Securities or is delivered to such Holder. Each Holder may waive
compliance with respect to any obligation of the Company under this Agreement as
it may apply or be enforced by such particular Holder.

         (d) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail,
telecopier, or any courier guaranteeing overnight delivery (i) if to a Holder or
Participating Broker-Dealer (other than an Initial Purchaser), at the most
current address set forth on the records of the registrar under the Indenture,
(ii) if to an Initial Purchaser, at the most current address given by such
Initial Purchaser to the Company by means of a notice given in accordance with
the provisions of this Section 6(d), which address initially is the address set
forth in the Purchase Agreement; and (iii) if to the Company, initially at the
address set forth in the Purchase Agreement and thereafter at such other
address, notice of which is given in accordance with the provisions of this
Section 6(d) , with a copy to Baker Botts L.L.P., One Shell Plaza, 910 Louisiana
Street, Houston, Texas 77002, Telecopier No.: (713) 229-2779, Attention: Tull R.
Florey.

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

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

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

                                       24
<PAGE>
Agreement and, if applicable, the Purchase Agreement, and such Person shall be
entitled to receive the benefits hereof.

         (f) Third Party Beneficiary. Each Holder shall be a third party
beneficiary of the agreements made hereunder between the Company , on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right to
enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights or the rights of other Holders
hereunder. Each Holder, by its acquisition of Securities, shall be deemed to
have agreed to the provisions of Section 5(b) hereof.

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

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

         (i) Restriction on Resales. Until the expiration of two years (or such
shorter period as may hereafter be referred to in Rule 144(k) under the 1933 Act
(or similar successor rule)) after the original issuance of the Securities,
without the prior written consent of the Initial Purchasers, the Issuer will
not, and will not permit any of its affiliates (as defined in Rule 501(b) under
the 1933 Act) to, resell any of the Securities that have been reacquired by
them, except for Securities purchased by the Issuer or any of its affiliates (as
defined in Rule 501(b) under the 1933 Act) and resold in a transaction
registered under the 1933 Act.

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

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

                            [SIGNATURE PAGE FOLLOWS]

                                       25
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first written above.

                                            CONOCOPHILLIPS

                                            By: /s/ Jeff W. Sheets
                                                --------------------------------
                                                Jeff W. Sheets
                                                Vice President and Treasurer
<PAGE>
Confirmed and accepted as of the date first above written:

BANC OF AMERICA SECURITIES LLC
J.P. MORGAN SECURITIES INC.
SALOMON SMITH BARNEY INC.
And the other parties referred to in Annex A hereto

By:    BANC OF AMERICA SECURITIES LLC

By:  /s/  Lily Chang
    ------------------
    Lily Chang
    Principal

For itself and on behalf of the other Initial Purchasers
<PAGE>
                                                                         ANNEX A

                               INITIAL PURCHASERS

Banc of America Securities LLC
J.P. Morgan Securities Inc.
Salomon Smith Barney Inc.
Barclays Capital Inc.
The Royal Bank of Scotland plc
ABN AMRO Incorporated
Banc One Capital Markets, Inc.
BNP Paribas Securities Corp.
Credit Suisse First Boston Corporation
Scotia Capital (USA) Inc.
SG Cowen Securities Corporation

                                      A-1
<PAGE>
                                                                         ANNEX B

                              PLAN OF DISTRIBUTION

         Each broker-dealer that receives new notes for its own account under
the exchange offer must acknowledge that it will deliver a prospectus in
connection with any resale of those notes. This prospectus, as it may be amended
or supplemented from time to time, may be used by a broker-dealer for resales of
new notes received in exchange for original notes that had been acquired as a
result of market-making or other trading activities. We have agreed that, for a
period of 180 days after the expiration date of the exchange offer, we will make
this prospectus, as it may be amended or supplemented, available to any
broker-dealer for use in connection with any such resale. Any broker-dealers
required to use this prospectus and any amendments or supplements to this
prospectus for resales of the new notes must notify us of this fact by checking
the box on the letter of transmittal requesting additional copies of these
documents.

         Notwithstanding the foregoing, we are entitled under the registration
rights agreement to suspend the use of this prospectus by broker-dealers under
specified circumstances. For example, we may suspend the use of this prospectus
if:

         -        the SEC or any state securities authority requests an
                  amendment or supplement to this prospectus or the related
                  registration statement or additional information;

         -        the SEC or any state securities authority issues any stop
                  order suspending the effectiveness of the registration
                  statement or initiates proceedings for that purpose;

         -        we receive notification of the suspension of the qualification
                  of the new notes for sale in any U.S. jurisdiction or the
                  initiation or threatening of any proceeding for that purpose;

         -        the suspension is required by law;

         -        the suspension is taken by us in good faith and for valid
                  business reason, including the possible acquisition or
                  divestiture of assets or a material corporate transaction or
                  event; or

         -        an event occurs which makes any statement in this prospectus
                  untrue in any material respect or which constitutes an
                  omission to state a material fact in this prospectus.

         If we suspend the use of this prospectus, the 180-day period referred
to above will be extended by a number of days equal to the period of the
suspension.

         We will not receive any proceeds from any sale of new notes by
broker-dealers. New notes received by broker-dealers for their own account under
the exchange offer may be sold from time to time in one or more transactions in
the over-the-counter market, in negotiated transactions, through the writing of
options on those notes or a combination of those methods of resale, at market
prices prevailing at the time of resale, at prices related to prevailing market

                                      B-1
<PAGE>
prices or at negotiated prices. Any resales may be made directly to purchasers
or to or through brokers or dealers who may receive compensation in the form of
commissions or concessions from the selling broker-dealer or the purchasers of
the new notes. Any broker-dealer that resells new notes received by it for its
own account under the exchange offer and any broker or dealer that participates
in a distribution of the new notes may be deemed to be an "underwriter" within
the meaning of the Securities Act and any profit on any resale of new notes and
any commissions or concessions received by these persons may be deemed to be
underwriting compensation under the Securities Act. The letter of transmittal
states that, by acknowledging that it will deliver and by delivering a
prospectus, a broker- dealer will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.

         We have agreed to pay all expenses incidental to the exchange offer,
including the expenses of one counsel for the holders of old notes, other than
commissions and concessions of any broker or dealer and will indemnify holders
of the new notes, including any broker-dealers, against certain liabilities,
including liabilities under the Securities Act or contribute to payments that
they may be required to make in request thereof.

                                      B-2

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