Document:

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                                                                     EXHIBIT 4.3

                          REGISTRATION RIGHTS AGREEMENT

                          DATED AS OF OCTOBER 10, 2003
                                  BY AND AMONG

                             PARKER DRILLING COMPANY

                                    AS ISSUER

                          THE GUARANTORS LISTED HEREIN

                                       AND

                              LEHMAN BROTHERS INC.
                          DEUTSCHE BANK SECURITIES INC.
                         BANC OF AMERICA SECURITIES LLC

                            AS THE INITIAL PURCHASERS

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                  This Registration Rights Agreement (this "AGREEMENT") is dated
as of October 10, 2003, by and among Parker Drilling Company, a Delaware
corporation (the "COMPANY"), the subsidiaries listed on Schedule A attached
hereto (the "GUARANTORS"), and Lehman Brothers Inc., Deutsche Bank Securities
Inc. and Banc of America Securities LLC (each an "INITIAL PURCHASER" and,
collectively, the "INITIAL PURCHASERS"), each of whom has agreed to purchase the
Company's 9-5/8% Senior Notes due October 1, 2013 (the "NOTES") pursuant to the
Purchase Agreement (as defined below).

                  This Agreement is made pursuant to the Purchase Agreement,
dated as of October 3, 2003 (the "PURCHASE AGREEMENT"), by and among the
Company, the Guarantors and the Initial Purchasers. In order to induce the
Initial Purchasers to purchase the Notes, the Company and the Guarantors have
agreed to provide the registration rights set forth in this Agreement. The
execution and delivery of this Agreement is a condition to the obligations of
the Initial Purchasers set forth in Section 6 of the Purchase Agreement.
Capitalized terms used herein and not otherwise defined shall have the meanings
assigned to them in the Indenture, dated the date hereof (the "INDENTURE"),
among the Company, the Guarantors and JPMorgan Chase Bank, as Trustee (the
"TRUSTEE"), relating to the Notes and the Exchange Notes (as defined below).

                  The parties hereby agree as follows:

SECTION 1. DEFINITIONS

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

                  ACT: The U.S. Securities Act of 1933, as amended.

                  AFFILIATE: As defined in Rule 144 of the Act.

                  BROKER-DEALER: Any broker or dealer registered under the
Exchange Act.

                  CERTIFICATED SECURITIES: Definitive Notes, as defined in the
Indenture.

                  CLOSING DATE: The date of this Agreement.

                  COMMISSION: The U.S. Securities and Exchange Commission.

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

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                  CONSUMMATION DEADLINE: As defined in Section 3(b) hereof.

                  EFFECTIVENESS DEADLINE: As defined in Section 3(a) and 4(a)
hereof.

                  EXCHANGE ACT: The U.S. Securities Exchange Act of 1934, as
amended.

                  EXCHANGE NOTES: The Company's 9-5/8% Senior Notes due 2013,
registered under the Act, to be issued pursuant to the Indenture: (a) in the
Exchange Offer or (b) as contemplated by Section 4 hereof.

                  EXCHANGE OFFER: The exchange and issuance by the Company of a
principal amount of Exchange Notes (which shall be registered pursuant to the
Exchange Offer Registration Statement) equal to the outstanding principal amount
of Notes that are tendered by such Holders in connection with such exchange and
issuance.

                  EXCHANGE OFFER REGISTRATION STATEMENT: The Registration
Statement relating to the Exchange Offer, including the related Prospectus.

                  EXEMPT RESALES: The transactions in which the Initial
Purchasers propose to sell the Notes to certain "qualified institutional
buyers," as such term is defined in Rule 144A under the Act, and pursuant to
Regulation S under the Act.

                  FILING DEADLINE: As defined in Sections 3(a) and 4(a) hereof.

                  HOLDERS: As defined in Section 2 hereof.

                  INTEREST PAYMENT DATE: As defined in the Notes and the
Exchange Notes.

                  PERSON: As defined in the Indenture.

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

                  RECOMMENCEMENT DATE: As defined in Section 6(e) hereof.

                  REGISTRATION DEFAULT: As defined in Section 5 hereof.

                  REGISTRATION STATEMENT: Any registration statement of the
Company and the Guarantors relating to (a) an offering of Exchange Notes and
related Subsidiary Guarantees pursuant to an Exchange Offer or (b) the
registration for resale of Transfer Restricted Securities pursuant to the Shelf
Registration Statement, in each case (i) that is filed pursuant to the
provisions of this Agreement and (ii) including the Prospectus included therein,
all amendments and supplements thereto (including post-effective amendments) and
all exhibits and material incorporated by reference therein.

                  REGULATION S: Regulation S promulgated under the Act.

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                  RULE 144: Rule 144 promulgated under the Act.

                  SHELF REGISTRATION STATEMENT: As defined in Section 4(a)
hereof.

                  SUBSIDIARY GUARANTEES: The guarantees of the Notes and
Exchange Notes of the Guarantors under the Indenture, as amended from time to
time.

                  SUSPENSION NOTICE: As defined in Section 6(e) hereof.

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

                  TRANSFER RESTRICTED SECURITIES: (a) Each Note and the related
Subsidiary Guarantees, until the earliest to occur of (i) the date on which such
Note has been exchanged by a Person other than a Broker-Dealer for an Exchange
Note in the Exchange Offer and is entitled to be resold to the public by such
Person without complying with the prospectus delivery requirements of the Act,
(ii) the date on which such Note has been effectively registered under the Act
and disposed of in accordance with the Shelf Registration Statement, or (iii)
the date on which such Note is eligible to be distributed to the public pursuant
to Rule 144(k) under the Act, and (b) each Exchange Note and the related
Subsidiary Guarantees acquired by a Broker-Dealer in the Exchange Offer of a
Note for such Exchange Note, until the date on which such Exchange Note is sold
to a purchaser who receives from such Broker-Dealer on or prior to the date of
such sale a copy of the Prospectus contained in the Exchange Offer Registration
Statement.

SECTION 2. HOLDERS

                  A Person is deemed to be a holder of Transfer Restricted
Securities (each, a "HOLDER") whenever such Person owns Transfer Restricted
Securities.

SECTION 3. REGISTERED EXCHANGE OFFER

                  (a)      Unless the Exchange Offer shall not be permitted by
applicable federal law (after the procedures set forth in Section 6(a) below
have been complied with), the Company and the Guarantors shall (i) cause the
Exchange Offer Registration Statement to be filed with the Commission as soon as
practicable after the Closing Date, but in no event later than 90 days after the
Closing Date (such 90th day being the "FILING DEADLINE"), (ii) use their
commercially reasonable best efforts to cause such Exchange Offer Registration
Statement to become effective at the earliest possible time, but in no event
later than 180 days after the Closing Date (such 180th day being the
"EFFECTIVENESS DEADLINE"), (iii) in connection with the foregoing, (A) file all
pre-effective amendments to such Exchange Offer Registration Statement as may be
necessary in order to cause it to become effective, (B) file, if applicable, a
post-effective amendment to such Exchange Offer Registration Statement pursuant
to Rule 430A under the Act and (C) cause all necessary filings, if any, in
connection with the registration and qualification of the Exchange Notes to be
made under the Blue Sky laws of such jurisdictions as are necessary to permit
Consummation of the Exchange Offer, and (iv) upon the effectiveness of such
Exchange Offer Registration Statement, commence and Consummate the Exchange
Offer. The Exchange Offer shall be on the appropriate form permitting (I)
registration of the Exchange Notes to be offered in exchange for the Notes that
are Transfer Restricted Securities and (II) resales of Exchange Notes

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by Broker-Dealers that tendered into the Exchange Offer Notes that such
Broker-Dealer acquired for its own account as a result of market making
activities or other trading activities (other than Notes acquired directly from
the Company or any of its Affiliates) as contemplated by Section 3(c) below.

                  (b)      The Company and the Guarantors shall use their
reasonable best efforts to cause the Exchange Offer Registration Statement to be
effective continuously, and shall keep the Exchange Offer open for a period of
not less than the minimum period required under applicable federal and state
securities laws to Consummate the Exchange Offer; provided, however, that in no
event shall such period be less than 20 business days. The Company and the
Guarantors shall cause the Exchange Offer to comply with all applicable federal
and state securities laws. No securities other than the Exchange Notes and the
Subsidiary Guarantees shall be included in the Exchange Offer Registration
Statement. The Company and the Guarantors shall use their commercially
reasonable best efforts to cause the Exchange Offer to be Consummated on the
earliest practicable date after the Exchange Offer Registration Statement has
become effective, but in no event later than 30 business days thereafter (such
30th business day being the "CONSUMMATION DEADLINE").

                  (c)      The Company and the Guarantors shall include a "Plan
of Distribution" section in the Prospectus contained in the Exchange Offer
Registration Statement and indicate therein that any Broker-Dealer who holds
Transfer Restricted Securities that were acquired for the account of such
Broker-Dealer as a result of market-making activities or other trading
activities (other than Notes acquired directly from the Company or any Affiliate
of the Company), may exchange such Transfer Restricted Securities pursuant to
the Exchange Offer. Such "Plan of Distribution" section shall also contain all
other information with respect to such sales by such Broker-Dealers that the
Commission may require in order to permit such sales pursuant thereto, but such
"Plan of Distribution" shall not name any such Broker-Dealer or disclose the
amount of Transfer Restricted Securities held by any such Broker-Dealer, except
to the extent required by the Commission as a result of a change in policy,
rules or regulations after the date of this Agreement.

                  Because such Broker-Dealer may be deemed to be an
"underwriter" within the meaning of the Act and must, therefore, deliver a
prospectus meeting the requirements of the Act in connection with its initial
sale of any Exchange Notes received by such Broker-Dealer in the Exchange Offer,
the Company and the Guarantors shall permit the use of the Prospectus contained
in the Exchange Offer Registration Statement by such Broker-Dealer to satisfy
such prospectus delivery requirement. To the extent necessary to ensure that the
prospectus contained in the Exchange Offer Registration Statement is available
for sales of Exchange Notes by Broker-Dealers, the Company and the Guarantors
agree to use their commercially reasonable best efforts to keep the Exchange
Offer Registration Statement continuously effective, supplemented, amended and
current as required by and subject to the provisions of Section 6(a) and (c)
hereof and in conformity with the requirements of this Agreement, the Act and
the policies, rules and regulations of the Commission as announced from time to
time, for a period of one year from the date on which the Exchange Offer is
Consummated or such shorter period as will terminate when such Broker-Dealers no
longer own any Transfer Restricted Securities. The Company shall provide
sufficient copies of the latest version of such Prospectus to such
Broker-

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Dealers, promptly upon request, and in no event later than one business day
after such request, at any time during such period.

SECTION 4. SHELF REGISTRATION

                  (a)      Shelf Registration. If (i) the Exchange Offer is not
permitted by applicable law or Commission policy (after the Company and the
Guarantors have complied with the procedures set forth in Section 6(b) hereof)
or (ii) if any Holder of Transfer Restricted Securities shall notify the Company
prior to the 20th business day following the Consummation of the Exchange Offer
that (A) such Holder was prohibited by applicable law or Commission policy from
participating in the Exchange Offer or (B) such Holder may not resell the
Exchange Notes acquired by it in the Exchange Offer to the public without
delivering a prospectus and the Prospectus contained in the Exchange Offer
Registration Statement is not appropriate or available for such resales by such
Holder or (C) such Holder is a Broker-Dealer and holds Notes acquired directly
from the Company or any of its Affiliates, then the Company and the Guarantors
shall:

                  (I)      use their commercially reasonable best efforts to
file, or cause to be filed, on or prior to 60 days after the earlier of (i) the
date on which the Company determines that the Exchange Offer Registration
Statement cannot be filed as a result of clause (a)(i) of this Section and (ii)
the date on which the Company receives the notice specified in clause (a)(ii) of
this Section (the 60th day after such earlier date, the "FILING DEADLINE"), a
shelf registration statement pursuant to Rule 415 under the Act (which may be an
amendment to the Exchange Offer Registration Statement (the "SHELF REGISTRATION
STATEMENT")), relating to all Transfer Restricted Securities; and

                  (II)     use their commercially reasonable best efforts to
cause such Shelf Registration Statement to become effective at the earliest
possible time, but in no event later than 180 days after the Filing Deadline for
the Shelf Registration Statement (such 180th day the "EFFECTIVENESS DEADLINE").

                  If, after the Company has and the Guarantors have filed an
Exchange Offer Registration Statement that satisfies the requirements of Section
3(a) above, the Company is and the Guarantors are required to file and make
effective a Shelf Registration Statement solely because the Exchange Offer is
not permitted under applicable federal law (i.e., clause (a)(i) of this
Section), then the filing of the Exchange Offer Registration Statement shall be
deemed to satisfy the requirements of clause (I) above; provided that, in such
event, the Company and the Guarantors shall remain obligated to meet the
Effectiveness Deadline set forth in clause (II) above.

                  To the extent necessary to ensure that the Shelf Registration
Statement is available for sales of Transfer Restricted Securities by the
Holders thereof entitled to the benefit of this Section 4(a) and the other
securities required to be registered therein pursuant to Section 6(b)(ii)
hereof, the Company and the Guarantors shall use their commercially reasonable
best efforts to keep any Shelf Registration Statement required by this Section
4(a) continuously effective, supplemented, amended and current as required by
and subject to the provisions of Sections 6(b) hereof and (c) hereof and in
conformity with the requirements of this Agreement,

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the Act and the policies, rules and regulations of the Commission as announced
from time to time, for a period of at least two years (as extended pursuant to
Section 6(c)(i) hereof) following the Closing Date, or such shorter period as
will terminate when all Transfer Restricted Securities covered by such Shelf
Registration Statement have been sold pursuant thereto.

                  (b)      Provision by Holders of Certain Information in
Connection with the Shelf Registration Statement. No Holder of Transfer
Restricted Securities may include any of its Transfer Restricted Securities in
any Shelf Registration Statement pursuant to this Agreement unless and until
such Holder furnishes to the Company in writing, within 20 days after receipt of
a request therefor, the information specified in Item 507 or 508 of Regulation
S-K, as applicable, of the Act for use in connection with any Shelf Registration
Statement or Prospectus or preliminary Prospectus included therein. No Holder of
Transfer Restricted Securities shall be entitled to liquidated damages pursuant
to Section 5 hereof unless and until such Holder shall have provided all such
information. By its acceptance of Transfer Restricted Securities, each Holder
agrees to promptly furnish additional information required to be disclosed in
order to make the information previously furnished to the Company by such Holder
not materially misleading.

SECTION 5. LIQUIDATED DAMAGES

                  If (a) any Registration Statement required by this Agreement
is not filed with the Commission on or prior to the applicable Filing Deadline,
(b) any such Registration Statement has not been declared effective by the
Commission on or prior to the applicable Effectiveness Deadline, (c) the
Exchange Offer has not been Consummated on or prior to the Consummation Deadline
or (d) any Registration Statement required by this Agreement is filed and
declared effective but shall thereafter cease to be effective or fail to be
usable for its intended purpose without being succeeded within two business days
by a post-effective amendment to such Registration Statement that cures such
failure and that is itself declared effective within five business days of
filing such post-effective amendment to such Registration Statement (each such
event referred to in clauses (a) through (d), a "REGISTRATION DEFAULT"), then
the Company and the Guarantors hereby jointly and severally agree to pay to each
Holder of Transfer Restricted Securities affected thereby liquidated damages in
an amount equal to $.05 per week per $1,000 in principal amount of Transfer
Restricted Securities held by such Holder for the first 90-day period
immediately following the occurrence of such Registration Default. The amount of
the liquidated damages shall increase by an additional $.05 per week per $1,000
in principal amount of Transfer Restricted Securities with respect to each
subsequent 90-day period until all Registration Defaults have been cured, up to
a maximum amount of liquidated damages of $.50 per week per $1,000 in principal
amount of Transfer Restricted Securities; provided that the Company and the
Guarantors shall in no event be required to pay liquidated damages for more than
one Registration Default at any given time. Notwithstanding anything to the
contrary set forth herein, (i) upon filing of the Exchange Offer Registration
Statement (and/or, if applicable, the Shelf Registration Statement), in the case
of (a) above, (ii) upon the effectiveness of the Exchange Offer Registration
Statement (and/or, if applicable the Shelf Registration Statement), in the case
of (b) above, (iii) upon Consummation of the Exchange Offer, in the case of (c)
above, or (iv) upon the filing of a post-effective amendment to the Registration
Statement or an additional Registration Statement that causes the Exchange Offer
Registration Statement (and/or, if applicable, the Shelf Registration Statement)
to again be declared effective or made usable, in

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the case of (d) above, the liquidated damages payable with respect to the
Transfer Restricted Securities as a result of such clause (a), (b), (c) or (d),
as applicable, shall cease.

                  All accrued liquidated damages shall be paid to the Holders
entitled thereto, in the manner provided for the payment of interest in the
Indenture, on each Interest Payment Date, as more fully set forth in the
Indenture and the Notes and the Exchange Notes. Notwithstanding the fact that
any securities for which liquidated damages are due cease to be Transfer
Restricted Securities, all obligations of the Company and the Guarantors to pay
liquidated damages with respect to securities shall survive until such time as
such obligations with respect to such securities shall have been satisfied in
full.

SECTION 6. REGISTRATION PROCEDURES

                  (a)      Exchange Offer Registration Statement. In connection
with the Exchange Offer, the Company and the Guarantors shall (i) comply with
all applicable provisions of Section 6(c) below, (ii) use their commercially
reasonable best efforts to effect such exchange and to permit the resale of
Exchange Notes by any Broker-Dealer that tendered Notes in the Exchange Offer
that such Broker-Dealer acquired for its own account as a result of its market
making activities or other trading activities (other than Notes acquired
directly from the Company or any of its Affiliates) being sold in accordance
with the intended method or methods of distribution thereof, and (iii) comply
with all of the following provisions:

                           (A)      If, following the date hereof there has been
                  announced a change in Commission policy with respect to
                  exchange offers such as the Exchange Offer, that in the
                  reasonable opinion of counsel to the Company raises a
                  substantial question as to whether the Exchange Offer is
                  permitted by applicable federal law, the Company and the
                  Guarantors hereby agree to seek a no-action letter or other
                  favorable decision from the Commission allowing the Company
                  and the Guarantors to Consummate an Exchange Offer for such
                  Transfer Restricted Securities. The Company and the Guarantors
                  hereby agree to pursue the issuance of such a decision to the
                  Commission staff level. In connection with the foregoing, the
                  Company and the Guarantors hereby agree to take all such other
                  actions as may be requested by the Commission or otherwise
                  required in connection with the issuance of such decision,
                  including without limitation (I) participating in telephonic
                  conferences with the Commission staff, (II) delivering to the
                  Commission staff an analysis prepared by counsel to the
                  Company setting forth the legal bases, if any, upon which such
                  counsel has concluded that such an Exchange Offer should be
                  permitted and (III) diligently pursuing a resolution (which
                  need not be favorable) by the Commission staff.

                           (B)      As a condition to its participation in the
                  Exchange Offer, each Holder of Transfer Restricted Securities
                  (including, without limitation, any Holder who is a Broker
                  Dealer) shall furnish, upon the request of the Company, prior
                  to the Consummation of the Exchange Offer, a written
                  representation to the Company and the Guarantors (which may be
                  contained in the letter of transmittal contemplated by the
                  Exchange Offer Registration Statement) to the effect that (I)
                  it is not an Affiliate of the Company, (II) it is not engaged
                  in, and does not intend

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                  to engage in, and has no arrangement or understanding with any
                  person to participate in, a distribution of the Exchange Notes
                  to be issued in the Exchange Offer and (III) it is acquiring
                  the Exchange Notes in its ordinary course of business. Each
                  Holder using the Exchange Offer to participate in a
                  distribution of the Exchange Notes will be required to
                  acknowledge and agree that, if the resales are of Exchange
                  Notes obtained by such Holder in exchange for Notes acquired
                  directly from the Company or an Affiliate thereof, it (1)
                  could not, under Commission policy as in effect on the date of
                  this Agreement, rely on the position of the Commission
                  enunciated in Exxon Capital Holdings Corporation (available
                  May 13, 1988) and Morgan Stanley and Co., Inc. (available June
                  5, 1991), as interpreted in the Commission's letter to
                  Shearman & Sterling dated July 2, 1993, and similar no-action
                  letters (including, if applicable, any no-action letter
                  obtained pursuant to clause (A) above), and (2) must comply
                  with the registration and prospectus delivery requirements of
                  the Act in connection with a secondary resale transaction and
                  that such a secondary resale transaction must be covered by an
                  effective Registration Statement containing the selling
                  security holder information required by Item 507 or 508, as
                  applicable, of Regulation S-K.

                           (C)      Prior to effectiveness of the Exchange Offer
                  Registration Statement, the Company and the Guarantors shall
                  provide a supplemental letter to the Commission (I) stating
                  that the Company and the Guarantors are registering the
                  Exchange Offer in reliance on the position of the Commission
                  enunciated in Exxon Capital Holdings Corporation (available
                  May 13, 1988) and Morgan Stanley and Co., Inc. (available June
                  5, 1991), as interpreted in the Commission's letter to
                  Shearman & Sterling dated July 2, 1993, and, if applicable,
                  any no-action letter obtained pursuant to clause (A) above,
                  (II) including a representation that neither the Company nor
                  any Guarantor has entered into any arrangement or
                  understanding with any Person to distribute the Exchange Notes
                  to be received in the Exchange Offer and that, to the best of
                  the Company's and each Guarantor's information and belief,
                  each Holder participating in the Exchange Offer is acquiring
                  the Exchange Notes in its ordinary course of business and has
                  no arrangement or understanding with any Person to participate
                  in the distribution of the Exchange Notes received in the
                  Exchange Offer and (III) including any other undertaking or
                  representation required by the Commission as set forth in any
                  no-action letter obtained pursuant to clause (A) above, if
                  applicable.

                  (b)      Shelf Registration Statement. In connection with the
Shelf Registration Statement, the Company and the Guarantors shall:

                  (i)      comply with all the provisions of Section 6(c) and
         6(d) below and use their reasonable best efforts to effect such
         registration to permit the sale of the Transfer Restricted Securities
         being sold in accordance with the intended method or methods of
         distribution thereof (as indicated in the information furnished to the
         Company pursuant to Section 4(b) hereof), and pursuant thereto the
         Company and the Guarantors will prepare and file with the Commission a
         Registration Statement relating to the registration on any appropriate
         form under the Act, which form shall be available for the sale of the
         Transfer Restricted Securities in accordance with the intended method
         or methods of distribution

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         thereof within the time periods and otherwise in accordance with the
         provisions hereof; and

                  (ii)     issue, upon the request of any Holder or purchaser of
         Notes covered by any Shelf Registration Statement contemplated by this
         Agreement, Exchange Notes having an aggregate principal amount equal to
         the aggregate principal amount of Notes sold pursuant to the Shelf
         Registration Statement and surrendered to the Company for cancellation;
         the Company and the Guarantors shall register Exchange Notes and the
         related Subsidiary Guarantees on the Shelf Registration Statement for
         this purpose and issue the Exchange Notes to the purchaser(s) of
         securities subject to the Shelf Registration Statement in the names as
         such purchaser(s) shall designate.

                  (c)      General Provisions. In connection with any
Registration Statement and any related Prospectus required by this Agreement,
the Company and the Guarantors shall:

                  (i)      use their commercially reasonable efforts to keep
         such Registration Statement continuously effective and provide all
         requisite financial statements for the period specified in Section 3 or
         4 hereof, as applicable. Upon the occurrence of any event that would
         cause any such Registration Statement or the Prospectus contained
         therein (A) to contain an untrue statement of material fact or omit to
         state any material fact necessary to make the statements therein not
         misleading or (B) not to be effective and usable for resale of Transfer
         Restricted Securities during the period required by this Agreement, the
         Company and the Guarantors shall file promptly an appropriate amendment
         to such Registration Statement curing such defect, and, if Commission
         review is required, use their commercially reasonable best efforts to
         cause such amendment to be declared effective as soon as practicable.
         If at any time the Commission shall issue any stop order suspending the
         effectiveness of any Registration Statement, or any state securities
         commission or other regulatory authority shall issue an order
         suspending the qualification or exemption from qualification of the
         Transfer Restricted Securities under state securities or Blue Sky laws,
         the Company and the Guarantors shall use their commercially reasonable
         best efforts to obtain the withdrawal or lifting of such order at the
         earliest possible time;

                  (ii)     prepare and file with the Commission such amendments
         and post-effective amendments to the applicable Registration Statement
         as may be necessary to keep such Registration Statement effective for
         the applicable period set forth in Section 3 or 4 hereof, as the case
         may be; cause the Prospectus to be supplemented by any required
         Prospectus supplement, and as so supplemented to be filed pursuant to
         Rule 424 under the Act, and to comply fully with Rules 424, 430A and
         462, as applicable, under the Act in a timely manner; and comply with
         the provisions of the Act with respect to the disposition of all
         securities covered by such Registration Statement during the applicable
         period in accordance with the intended method or methods of
         distribution by the sellers thereof set forth in such Registration
         Statement or supplement to the Prospectus;

                  (iii)    in connection with any sale of Transfer Restricted
         Securities that will result in such securities no longer being Transfer
         Restricted Securities, cooperate with the Holders to facilitate the
         timely preparation and delivery of certificates representing

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         Transfer Restricted Securities to be sold and not bearing any
         restrictive legends; and to register such Transfer Restricted
         Securities in such denominations and such names as the selling Holders
         may request at least two business days prior to such sale of Transfer
         Restricted Securities;

                  (iv)     use their commercially reasonable best efforts to
         cause the disposition of the Transfer Restricted Securities covered by
         the Registration Statement to be registered with or approved by such
         other governmental agencies or authorities as may be necessary to
         enable the seller or sellers thereof to consummate the disposition of
         such Transfer Restricted Securities; provided, however, that neither
         the Company nor any Guarantor shall be required to register or qualify
         as a foreign corporation where it is not now so qualified or to take
         any action that would subject it to the service of process in suits or
         to taxation, other than as to matters and transactions relating to the
         Registration Statement, in any jurisdiction where it is not now so
         subject;

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

                  (vi)     otherwise use their commercially reasonable best
         efforts to comply with all applicable rules and regulations of the
         Commission, and make generally available to its security holders with
         regard to any applicable Registration Statement, as soon as
         practicable, a consolidated earnings statement meeting the requirements
         of Rule 158 (which need not be audited) covering a twelve-month period
         beginning after the effective date of the registration statement (as
         such term is defined in paragraph (c) of Rule 158 under the Act); and

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

                  (d)      Additional Provisions Applicable to Shelf
Registration Statements and Certain Exchange Offer Prospectuses. In connection
with each Shelf Registration Statement, and each Exchange Offer Registration
Statement if and to the extent that an Initial Purchaser has notified the
Company that it is a holder of Exchange Notes that are Transfer Restricted
Securities (for so long as such Exchange Notes are Transfer Restricted
Securities or for the period provided in Section 3 hereof, whichever is
shorter), the Company and the Guarantors shall:

                  (i)      advise each Holder promptly and, if requested by such
         Holder, confirm such advice in writing, (A) when the Prospectus or any
         Prospectus supplement or post-

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         effective amendment has been filed, and, with respect to any applicable
         Registration Statement or any post-effective amendment thereto, when
         the same has become effective, (B) of any request by the Commission for
         amendments to the Registration Statement or amendments or supplements
         to the Prospectus or for additional information relating thereto, (C)
         of the issuance by the Commission of any stop order suspending the
         effectiveness of the Registration Statement under the Act or of the
         suspension by any state securities commission of the qualification of
         the Transfer Restricted Securities for offering or sale in any
         jurisdiction, or the initiation of any proceeding for any of the
         preceding purposes, (D) of the existence of any fact or the happening
         of any event that makes any statement of a material fact made in the
         Registration Statement, the Prospectus, any amendment or supplement
         thereto or any document incorporated by reference therein untrue, or
         that requires the making of any additions to or changes in the
         Registration Statement in order to make the statements therein not
         misleading, or that requires the making of any additions to or changes
         in the Prospectus in order to make the statements therein, in the light
         of the circumstances under which they were made, not misleading;

                  (ii)     if any fact or event contemplated by Section
         6(d)(i)(D) above shall exist or have occurred, prepare a supplement or
         post-effective amendment to the Registration Statement or related
         Prospectus or any document incorporated therein by reference or file
         any other required document so that, as thereafter delivered to the
         purchasers of Transfer Restricted Securities, the Prospectus will not
         contain an untrue statement of a material fact or omit to state any
         material fact necessary to make the statements therein, in the light of
         the circumstances under which they were made, not misleading;

                  (iii)    furnish to each Holder in connection with such
         exchange or sale, if any, before filing with the Commission, copies of
         any Registration Statement or any Prospectus included therein (except
         the Prospectus included in the Exchange Offer Registration Statement at
         the time it was declared effective) or any amendments or supplements to
         any such Registration Statement or Prospectus (including all documents
         incorporated by reference after the initial filing of such Registration
         Statement), which documents will be subject to the review and comment
         of such Holders in connection with such sale, if any, for a period of
         at least five business days, and the Company will not file any such
         Registration Statement or Prospectus or any amendment or supplement to
         any such Registration Statement or Prospectus (including all such
         documents incorporated by reference) to which such Holders shall
         reasonably object within five business days after the receipt thereof a
         Holder shall be deemed to have reasonably objected to such filing if
         such Registration Statement, amendment, Prospectus or supplement, as
         applicable, as proposed to be filed, contains an untrue statement of a
         material fact or omits to state any material fact necessary to make the
         statements therein not misleading or fails to comply with the
         applicable requirements of the Act;

                  (iv)     promptly prior to the filing of any document that is
         to be incorporated by reference into a Registration Statement or
         Prospectus, provide copies of such document to each Holder in
         connection with such exchange or sale, if any, make the Company's and
         the Guarantors' representatives available for discussion of such
         document and other

                                       12
<PAGE>

         customary due diligence matters, and include such information in such
         document prior to the filing thereof as such Holders may reasonably
         request;

                  (v)      make available, at reasonable times, for inspection
         by each Holder and any attorney or accountant retained by such Holders,
         all financial and other records, pertinent corporate documents of the
         Company and the Guarantors and cause the Company's and the Guarantors'
         officers, directors and employees to supply all information reasonably
         requested by any such Holder, attorney or accountant in connection with
         such Registration Statement or any post-effective amendment thereto
         subsequent to the filing thereof and prior to its effectiveness;

                  (vi)     if requested by any Holders in connection with such
         exchange or sale, promptly include in any Registration Statement or
         Prospectus, pursuant to a supplement or post-effective amendment if
         necessary, such information as such Holders may reasonably request to
         have included therein, including, without limitation, information
         relating to the "Plan of Distribution" of the Transfer Restricted
         Securities; and make all required filings of such Prospectus supplement
         or post-effective amendment as soon as practicable after the Company is
         notified of the matters to be included in such Prospectus supplement or
         post-effective amendment;

                  (vii)    furnish to each Holder in connection with such
         exchange or sale without charge, at least one copy of the Registration
         Statement, as first filed with the Commission, and of each amendment
         thereto, including all documents incorporated by reference therein and
         all exhibits (including exhibits incorporated therein by reference);

                  (viii)   deliver to each Holder without charge, as many copies
         of the Prospectus (including each preliminary prospectus) and any
         amendment or supplement thereto as such Holders reasonably may request;
         the Company and the Guarantors hereby consent to the use (in accordance
         with law) of the Prospectus and any amendment or supplement thereto by
         each selling Holder in connection with the offering and the sale of the
         Transfer Restricted Securities covered by the Prospectus or any
         amendment or supplement thereto;

                  (ix)     upon the request of any Holder, enter into such
         agreements (including underwriting agreements) and make such
         representations and warranties and take all such other actions in
         connection therewith in order to expedite or facilitate the disposition
         of the Transfer Restricted Securities pursuant to any applicable
         Registration Statement contemplated by this Agreement as may be
         reasonably requested by any Holder in connection with any sale or
         resale pursuant to any applicable Registration Statement. In such
         connection, the Company and the Guarantors shall:

                           (A)      upon request of any Holder, furnish (or in
                  the case of paragraphs (2) and (3), use their commercially
                  reasonable best efforts to cause to be furnished) to each
                  Holder, upon Consummation of the Exchange Offer or upon the
                  effectiveness of the Shelf Registration Statement, as the case
                  may be:

                                    (1)      a certificate, dated such date,
                           signed on behalf of the Company and each Guarantor by
                           (x) the President or any Vice President

                                       13
<PAGE>

                           and (y) a principal financial or accounting officer
                           of the Company and such Guarantor, confirming, as of
                           the date thereof, the matters set forth in Section
                           6(f) and (g) of the Purchase Agreement and such other
                           similar matters as such Holders may reasonably
                           request;

                                    (2)      an opinion, dated the date of
                           Consummation of the Exchange Offer or the date of
                           effectiveness of the Shelf Registration Statement, as
                           the case may be, of counsel for the Company covering
                           matters similar to those set forth in Section 6(a) of
                           the Purchase Agreement and such other matters as such
                           Holder may reasonably request, and in any event
                           including a statement to the effect that such counsel
                           has participated in conferences with officers and
                           other representatives of the Company and the
                           Guarantors, representatives of the independent public
                           accountants for the Company and the Guarantors and
                           has considered the matters required to be stated
                           therein and the statements contained therein,
                           although such counsel has not independently verified
                           the accuracy, completeness or fairness of such
                           statements; and that such counsel advises that, on
                           the basis of the foregoing, no facts came to such
                           counsel's attention that caused such counsel to
                           believe that the applicable Registration Statement,
                           at the time such Registration Statement or any
                           post-effective amendment thereto became effective
                           and, in the case of the Exchange Offer Registration
                           Statement, as of the date of Consummation of the
                           Exchange Offer, contained an untrue statement of a
                           material fact or omitted to state a material fact
                           required to be stated therein or necessary to make
                           the statements therein not misleading, or that the
                           Prospectus contained in such Registration Statement
                           as of its date and, in the case of the opinion dated
                           the date of Consummation of the Exchange Offer, as of
                           the date of Consummation, contained an untrue
                           statement of a material fact or omitted 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. Without
                           limiting the foregoing, such counsel may state
                           further that such counsel assumes no responsibility
                           for, and has not independently verified, the
                           accuracy, completeness or fairness of the financial
                           statements, notes and schedules and other financial
                           data included in any Registration Statement
                           contemplated by this Agreement or the related
                           Prospectus; and

                                    (3)      a customary comfort letter, dated
                           the date of Consummation of the Exchange Offer, or as
                           of the date of effectiveness of the Shelf
                           Registration Statement, as the case may be, from the
                           Company's independent accountants, in the customary
                           form and covering matters of the type customarily
                           covered in comfort letters to underwriters in
                           connection with underwritten offerings, and affirming
                           the matters set forth in the comfort letters
                           delivered pursuant to Section 6(d) of the Purchase
                           Agreement; and

                                       14
<PAGE>

                           (B)      deliver such other documents and
                  certificates as may be reasonably requested by the selling
                  Holders to evidence compliance with the matters covered in
                  clause (A) above and with any customary conditions contained
                  in any agreement entered into by the Company and the
                  Guarantors pursuant to this clause (ix);

                  (x)      prior to any public offering of Transfer Restricted
         Securities, cooperate with the selling Holders and their counsel in
         connection with the registration and qualification of the Transfer
         Restricted Securities under the securities or Blue Sky laws of such
         jurisdictions as the selling Holders may request and do any and all
         other acts or things necessary or advisable to enable the disposition
         in such jurisdictions of the Transfer Restricted Securities covered by
         the applicable Registration Statement; provided, however, that neither
         the Company nor any Guarantor shall be required to register or qualify
         as a foreign corporation where it is not now so qualified or to take
         any action that would subject it to the service of process in suits or
         to taxation, other than as to matters and transactions relating to the
         Registration Statement, in any jurisdiction where it is not now so
         subject; and

                  (xi)     provide promptly to each Holder, upon request, each
         document filed with the Commission pursuant to the requirements of
         Section 13 or Section 15(d) of the Exchange Act.

                  (e)      Restrictions on Holders. Each Holder's acquisition of
a Transfer Restricted Security constitutes such Holder's agreement that, upon
receipt of the notice referred to in Section 6(d)(i)(C) or any notice from the
Company of the existence of any fact of the kind described in Section 6(d)(i)(D)
hereof (in each case, a "SUSPENSION NOTICE"), such Holder will forthwith
discontinue disposition of Transfer Restricted Securities pursuant to the
applicable Registration Statement until (i) such Holder has received copies of
the supplemented or amended Prospectus contemplated by Section 6(d)(ii) hereof,
or (ii) such Holder is advised in writing by the Company that the use of the
Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus (in
each case, the "RECOMMENCEMENT DATE"). Each Holder receiving a Suspension Notice
shall be required to either (I) destroy any Prospectuses, other than permanent
file copies, then in such Holder's possession that have been replaced by the
Company with more recently dated Prospectuses or (II) deliver to the Company (at
the Company's expense) all copies, other than permanent file copies, then in
such Holder's possession of the Prospectuses covering such Transfer Restricted
Securities that were current at the time of receipt of the Suspension Notice.
The time period regarding the effectiveness of such Registration Statement set
forth in Section 3 or 4 hereof, as applicable, shall be extended by a number of
days equal to the number of days in the period from and including the date of
delivery of the Suspension Notice to the date of delivery of the Recommencement
Date.

SECTION 7. REGISTRATION EXPENSES

                  (a)      All expenses incident to the Company's and the
Guarantors' performance of or compliance with this Agreement will be borne by
the Company, regardless of whether a Registration Statement becomes effective,
including without limitation: (i) all registration and

                                       15
<PAGE>

filing fees and expenses; (ii) all fees and expenses of compliance with federal
securities and state Blue Sky or securities laws; (iii) all expenses of printing
(including certificates for the Exchange Notes to be issued in the Exchange
Offer and printing of Prospectuses, messenger and delivery services and
telephone); (iv) all fees and disbursements of counsel for the Company, the
Guarantors and one counsel for the Holders of Transfer Restricted Securities
(which shall be Simpson Thacher & Bartlett LLP or such other counsel as may be
selected by a majority of such Holders); (v) all application and filing fees in
connection with listing the Exchange Notes on a national securities exchange or
automated quotation system pursuant to the requirements hereof; and (vi) all
fees and disbursements of independent certified public accountants of the
Company and the Guarantors (including the expenses of any special audit and
comfort letters required by or incident to such performance).

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

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

SECTION 8. INDEMNIFICATION

                  (a)      The Company and the Guarantors agree, jointly and
severally, to indemnify and hold harmless each Holder, its directors, officers
and each Person, if any, who controls (within the meaning of Section 15 of the
Act or Section 20 of the Exchange Act) such Holder, from and against any and all
losses, claims, damages, liabilities or judgments (including without limitation,
any legal or other expenses incurred in connection with investigating or
defending any matter, including any action that could give rise to any such
losses, claims, damages, liabilities or judgments) caused by any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement, preliminary prospectus or Prospectus (or any amendment
or supplement thereto) provided by the Company to any Holder or any prospective
purchaser of Exchange Notes or registered Notes, or caused by any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, except insofar as
such losses, claims, damages, liabilities or judgments are caused by an untrue
statement or omission or alleged untrue statement or omission that is based upon
information relating to any of the Holders furnished in writing to the Company
by any of the Holders.

                                       16
<PAGE>

                  (b)      By its acquisition of Transfer Restricted Securities,
each Holder of Transfer Restricted Securities agrees, severally and not jointly,
to indemnify and hold harmless the Company and the Guarantors, and their
respective directors and officers, and each Person, if any, who controls (within
the meaning of Section 15 of the Act or Section 20 of the Exchange Act) the
Company or the Guarantors to the same extent as the foregoing indemnity from the
Company and the Guarantors set forth in Section 8(a) hereof, but only with
reference to information relating to such Holder furnished in writing to the
Company by such Holder expressly for use in any Registration Statement. In no
event shall any Holder, its directors, officers or any Person who controls such
Holder be liable or responsible for any amount in excess of the amount by which
the total amount received by such Holder with respect to its sale of Transfer
Restricted Securities pursuant to a Registration Statement exceeds (i) the
amount paid by such Holder for such Transfer Restricted Securities and (ii) the
amount of any damages that such Holder, its directors, officers or any Person
who controls such Holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission.

                  (c)      In case any action shall be commenced involving any
Person in respect of which indemnity may be sought pursuant to Section 8(a) or
(b) hereof (the "INDEMNIFIED PARTY"), the indemnified party shall promptly
notify the Person against whom such indemnity may be sought (the "INDEMNIFYING
PERSON") in writing and the indemnifying party shall assume the defense of such
action, including the employment of counsel reasonably satisfactory to the
indemnified party and the payment of all fees and expenses of such counsel, as
incurred (except that in the case of any action in respect of which indemnity
may be sought pursuant to both Sections 8(a) and (b) hereof, a Holder shall not
be required to assume the defense of such action pursuant to this Section 8(c),
but may employ separate counsel and participate in the defense thereof, but the
fees and expenses of such counsel, except as provided below, shall be at the
expense of the Holder). Any indemnified party shall have the right to employ
separate counsel in any such action and participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of the indemnified
party unless (i) the employment of such counsel shall have been specifically
authorized in writing by the indemnifying party, (ii) the indemnifying party
shall have failed to assume the defense of such action or employ counsel
reasonably satisfactory to the indemnified party or (iii) the named parties to
any such action (including any impleaded parties) include both the indemnified
party and the indemnifying party, and the indemnified party shall have been
advised by such counsel that there may be one or more legal defenses available
to it which are different from or additional to those available to the
indemnifying party (in which case the indemnifying party shall not have the
right to assume the defense of such action on behalf of the indemnified party).
In any such case, the indemnifying party shall not, in connection with any one
action or separate but substantially similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances, be
liable for the fees and expenses of more than one separate firm of attorneys (in
addition to any local counsel) for all indemnified parties and all such fees and
expenses shall be reimbursed as they are incurred. Such firm shall be designated
in writing by a majority of the Holders, in the case of the parties indemnified
pursuant to Section 8(a) hereof, and by the Company and the Guarantors, in the
case of parties indemnified pursuant to Section 8(b) hereof. The indemnifying
party shall indemnify and hold harmless the indemnified party from and against
any and all losses, claims, damages, liabilities and judgments by reason of any
settlement of any action (A) effected with its written consent or (B) effected
without its written consent if the settlement is

                                       17
<PAGE>

entered into more than twenty business days after the indemnifying party shall
have received a request from the indemnified party for reimbursement for the
fees and expenses of counsel (in any case where such fees and expenses are at
the expense of the indemnifying party) and, prior to the date of such
settlement, the indemnifying party shall have failed to comply with such
reimbursement request. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement or compromise of, or
consent to the entry of judgment with respect to, any pending or threatened
action in respect of which the indemnified party is or could have been a party
and indemnity or contribution may be or could have been sought hereunder by the
indemnified party, unless such settlement, compromise or judgment (I) includes
an unconditional release of the indemnified party from all liability on claims
that are or could have been 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 the indemnified party.

                  (d)      To the extent that the indemnification provided for
in this Section 8 is unavailable to an indemnified party in respect of any
losses, claims, damages, liabilities or judgments referred to therein, then each
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities or judgments (i) in such proportion
as is appropriate to reflect the relative benefits received by the Company and
the Guarantors on the one hand, and the Holders, on the other hand, from their
initial sale of Transfer Restricted Securities (or in the case of Exchange Notes
that are Transfer Restricted Securities, the sale of the Notes for which such
Exchange Notes were exchanged) or (ii) if the allocation provided by clause
8(d)(i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in such clause
8(d)(i) but also the relative fault of the Company and the Guarantors, on the
one hand, and of the Holder, on the other hand, in connection with the
statements or omissions which resulted in such losses, claims, damages,
liabilities or judgments, as well as any other relevant equitable
considerations. The relative fault of the Company and the Guarantors, on the one
hand, and of the Holder, on the other hand, 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 Guarantor, on the one hand, or by
the Holder, on the other hand, and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission. The amount paid or payable by a party as a result of the losses,
claims, damages, liabilities and judgments referred to above shall be deemed to
include, subject to the limitations set forth in Section 8(c) hereof, any legal
or other fees or expenses reasonably incurred by such party in connection with
investigating or defending any action or claim.

                  The Company, the Guarantors and, by its acquisition of
Transfer Restricted Securities, each Holder agree that it would not be just and
equitable if contribution pursuant to this Section 8(d) were determined by pro
rata allocation (even if the Holders were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages, liabilities or judgments referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any matter, including any
action

                                       18
<PAGE>

that could have given rise to such losses, claims, damages, liabilities or
judgments. Notwithstanding the provisions of this Section 8, no Holder, its
directors, its officers or any Person, if any, who controls such Holder shall be
required to contribute, in the aggregate, any amount in excess of the amount by
which the total received by such Holder with respect to the sale of Transfer
Restricted Securities pursuant to a Registration Statement exceeds (i) the
amount paid by such Holder for such Transfer Restricted Securities and (ii) the
amount of any damages which such Holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission. No Person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation. The Holders'
obligations to contribute pursuant to this Section 8(d) are several in
proportion to the respective principal amount of Transfer Restricted Securities
held by each Holder hereunder and not joint.

SECTION 9. RULE 144A AND RULE 144

                  The Company and each Guarantor agrees with each Holder, for so
long as any Transfer Restricted Securities remain outstanding and during any
period in which the Company or such Guarantor (a) is not subject to Section 13
or 15(d) of the Exchange Act, to make available, upon request of any Holder, or
beneficial owner of Transfer Restricted Securities in connection with any sale
thereof and any prospective purchaser of such Transfer Restricted Securities
designated by such Holder or beneficial owner, the information required by Rule
144A(d)(4) under the Act in order to permit resales of such Transfer Restricted
Securities pursuant to Rule 144A, and (b) is subject to Section 13 or 15(d) of
the Exchange Act, to make all filings required thereby in a timely manner in
order to permit resales of such Transfer Restricted Securities pursuant to Rule
144.

SECTION 10. FUTURE SUBSIDIARY GUARANTEES

                  If, prior to the Consummation of the Exchange Offer or prior
to the effectiveness of the Shelf Registration Statement, as the case may be,
any subsidiary of the Company executes a Subsidiary Guarantee in accordance with
the terms and provisions of the Indenture, the Company shall cause such
subsidiary to execute and deliver to the parties hereto a counterpart signature
page to this Agreement and such subsidiary shall be bound by all the provisions
of this Agreement as a "Guarantor."

SECTION 11. MISCELLANEOUS

                  (a)      Remedies. The Company and the Guarantors acknowledge
and agree that any failure by the Company and/or the Guarantors to comply with
their respective obligations under Sections 3 and 4 hereof may result in
material irreparable injury to the Initial Purchasers or the Holders for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure,
the Initial Purchasers or any Holder may obtain such relief as may be required
to specifically enforce the Company's and the Guarantors' obligations under
Sections 3 and 4 hereof. The Company and the Guarantors further agree to waive
the defense in any action for specific performance that a remedy at law would be
adequate.

                                       19
<PAGE>

                  (b)      No Inconsistent Agreements. The Company and the
Guarantors will not, on or after the date of this Agreement, enter into any
agreement with respect to their respective securities that is inconsistent with
the rights granted to the Holders in this Agreement or otherwise conflicts with
the provisions hereof. The Company and the Guarantors have not previously
entered into any agreement granting any registration rights with respect to
their respective securities to any Person that would require such securities to
be included in any Registration Statement filed hereunder. The rights granted to
the Holders hereunder do not in any way conflict with and are not inconsistent
with the rights granted to the holders of the Company's and the Guarantors'
securities under any agreement in effect on the date hereof.

                  (c)      Amendments and Waivers. The provisions of this
Agreement may not be amended, modified or supplemented, and waivers of or
consents to or departures from the provisions hereof may not be given unless (i)
in the case of Section 5 hereof and this Section 11(c)(i), the Company has
obtained the written consent of Holders of all outstanding Transfer Restricted
Securities and (ii) in the case of all other provisions hereof, the Company has
obtained the written consent of Holders of a majority of the outstanding
principal amount of Transfer Restricted Securities (excluding Transfer
Restricted Securities held by the Company or its Affiliates). Notwithstanding
the foregoing, a waiver of or consent to departure from the provisions hereof
that relates exclusively to the rights of Holders whose Transfer Restricted
Securities are being tendered pursuant to the Exchange Offer, and that does not
affect directly or indirectly the rights of other Holders whose Transfer
Restricted Securities are not being tendered pursuant to such Exchange Offer,
may be given by the Holders of a majority of the outstanding principal amount of
Transfer Restricted Securities subject to such Exchange Offer.

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

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

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

                  (ii)     if to the Company or any of the Guarantors:

                             Parker Drilling Company
                             1401 Enclave Parkway, Suite 600
                             Houston, Texas 77077
                             Attention: General Counsel
                             Facsimile: (281) 406-2000

                                       20
<PAGE>

                  All such notices and communications shall be deemed to have
been duly given at the time delivered by hand, 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.

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

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

                  (j)      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.

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

                                       21
<PAGE>

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

                             PARKER DRILLING COMPANY

                             By: _____________________________________
                                 Name:
                                 Title:

                                   GUARANTORS:

                              ANACHORETA, INC.
                              CANADIAN RIG LEASING, INC.
                              CHOCTAW INTERNATIONAL RIG CORP.
                              CREEK INTERNATIONAL RIG CORP.
                              DGH, INC.
                              INDOCORP OF OKLAHOMA, INC.
                              PARDRIL, INC.
                              PARKER AVIATION, INC.
                              PARKER DRILLING (KAZAKSTAN), LTD.
                              PARKER DRILLING COMPANY EASTERN HEMISPHERE, LTD.
                              PARKER DRILLING COMPANY INTERNATIONAL, INC.
                              PARKER DRILLING COMPANY INTERNATIONAL LIMITED
                              PARKER DRILLING COMPANY LIMITED (NEVADA)
                              PARKER DRILLING COMPANY NORTH AMERICA, INC.
                              PARKER DRILLING COMPANY OF ARGENTINA, INC.
                              PARKER DRILLING COMPANY OF BOLIVIA, INC.
                              PARKER DRILLING COMPANY OF NEW GUINEA, INC.
                              PARKER DRILLING COMPANY OF NIGER
                              PARKER DRILLING COMPANY OF OKLAHOMA, INCORPORATED
                              PARKER DRILLING COMPANY OF SINGAPORE, LTD.
                              PARKER DRILLING COMPANY OF SOUTH AMERICA, INC.
                              PARKER DRILLING OFFSHORE CORPORATION
                              PARKER DRILLING OFFSHORE INTERNATIONAL, INC.
                              PARKER NORTH AMERICA OPERATIONS, INC.
                              PARKER TECHNOLOGY, INC.
                              PARKER TECHNOLOGY, LLC
                              PARKER USA DRILLING COMPANY
                              PARKER-VSE, INC.
                              QUAIL USA, LLC
                              SELECTIVE DRILLING CORPORATION
                              UNIVERSAL RIG SERVICE CORP.

                              By: ____________________________________
                              Name: David W. Tucker
                              Title: Vice President

<PAGE>

                             PARKER DRILLING COMPANY OF MEXICO, LLC
                             PARKER DRILLING OFFSHORE USA, LLC

                             By: _____________________________________
                                 Name: Bruce J. Korver
                                 Title: Vice President

                             PARKER DRILLING MANAGEMENT SERVICES, INC.

                             By: _____________________________________
                                 Name: David W. Tucker
                                 Title: President

                             PARKER OFFSHORE RESOURCES, L.P.

                             By: _____________________________________
                                 Name: David W. Tucker
                                 Title: President, Parker Drilling Management
                                        Services, Inc., General Partner

                             PARKER TOOLS, LLC

                             By: _____________________________________
                                 Name: Tom Junk
                                 Title: President

                             PARKER USA RESOURCES, LLC

                             By: _____________________________________
                                 Name: Tom Junk
                                 Title: President

<PAGE>

                             PD MANAGEMENT RESOURCES, L.P.

                             By: _____________________________________
                                 Name: David W. Tucker
                                 Title: President, Parker Drilling Management
                                        Services, Inc., General Partner

                             QUAIL TOOLS, LP

                             By: _____________________________________
                                 Name: David W. Tucker
                                 Title: Vice President, Quail USA, LLC,
                                        General Partner

<PAGE>

LEHMAN BROTHERS INC.
DEUTSCHE BANK SECURITIES INC.
BANC OF AMERICA SECURITIES LLC

    BY LEHMAN BROTHERS INC., AS AUTHORIZED REPRESENTATIVE

By: _____________________________
    Name:
    Title:

<PAGE>

                                   SCHEDULE A

GUARANTORS

Anachoreta, Inc.
Canadian Rig Leasing, Inc.
Choctaw International Rig Corp.
Creek International Rig Corp.
DGH, Inc.
Indocorp of Oklahoma, Inc.
Pardril, Inc.
Parker Aviation, Inc.
Parker Drilling (Kazakstan), Ltd.
Parker Drilling Company Eastern Hemisphere, Ltd.
Parker Drilling Company International, Inc.
Parker Drilling Company International Limited
Parker Drilling Company Limited
Parker Drilling Company North America, Inc.
Parker Drilling Company of Argentina, Inc.
Parker Drilling Company of Mexico, LLC
Parker Drilling Company of New Guinea, Inc.
Parker Drilling Company of Niger
Parker Drilling Company of Oklahoma, Incorporated
Parker Drilling Company of Singapore, Ltd.
Parker Drilling Company of South America, Inc.
Parker Drilling Management Services, Inc.
Parker Drilling Offshore USA, LLC
Parker Drilling Offshore Corporation
Parker Drilling Offshore International, Inc.
Parker North America Operations, Inc.
Parker Offshore Resources, L.P.
Parker Technology, Inc.
Parker Technology, LLC
Parker Tools, LLC
Parker USA Drilling Company
Parker USA Resources, LLC
Parker-VSE, Inc.
PD Management Resources, L.P.
Quail Tools, LP
Quail USA, LLC
Selective Drilling Corporation
Universal Rig Service Corp.exv10w1

 

Exhibit 10.1

DIGENE CORPORATION

AMENDED AND RESTATED 1999 INCENTIVE PLAN

Article I

Purpose

     The purpose of the 1999 Incentive Plan (the “Plan”) is to enable Digene
Corporation (the “Company”) to offer Employees of the Company and its
Subsidiaries equity interests in the Company and options to acquire equity
interests in the Company, thereby helping to attract, retain and reward such
persons and strengthen the mutuality of interests between such persons and the
Company’s stockholders.

Article II

Definitions

     For purposes of the Plan, the following terms shall have the following
meanings:

    2.1
“Award” shall mean an award under the Plan of a Stock Option,
Restricted Stock or Unrestricted Stock.

    2.2
“Board” shall mean the Board of Directors of the Company.

    2.3
“Change of Control” shall mean (a) the reorganization, consolidation
or merger of the Company or any of its Subsidiaries holding or controlling a
majority of the assets relating to the business of the Company, with or into
any third party (other than a Subsidiary); (b) the assignment, sale, transfer,
lease or other disposition of all or substantially all of the assets of the
Company and its Subsidiaries taken as a whole; or (c) the acquisition by any
third party or group of third parties acting in concert, of beneficial
ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission (“SEC”) under the Securities Exchange Act of 1934, as amended) of
shares of voting stock of the Company, the result of which in the case of any
transaction described in clauses (a), (b) and (c) above is that immediately
after the transaction the stockholders of the Company immediately before the
transaction, other than the acquiror, own less than fifty percent (50%) of the
combined voting power of the outstanding voting securities entitled to vote
generally in the election of directors of the surviving or resulting
corporation in a transaction specified in clause (a) above, the acquiror in a
transaction specified in clause (b) above, or the Company or the acquiror in a
transaction specified in clause (c) above.

    2.4
“Code” shall mean the Internal Revenue Code of 1986, as amended.

    2.5
“Committee” shall mean the Compensation Committee of the Board, or any
other committee of the Board designated by the Board to administer this Plan,
with any such Committee consisting of two or more members of the Board;
provided, that if the Compensation Committee or any other such committee does
not meet the applicable independence requirements

 

 

of Rule 16b-3(d) promulgated under the Securities Exchange Act of 1934, or
NASDAQ, for Awards to Reporting Persons the term “Committee” shall mean the
Board and for purposes of all Awards granted to the Chief Executive Officer of
the Company under this Plan the term “Committee” shall mean the Board.

    2.6
“Common Stock” shall mean the Common Stock, par value $0.01 per share,
of the Company.

    2.7
“Disability” shall mean a disability that results in a Participant’s
Termination of Employment with the Company or a Subsidiary, as determined
pursuant to standard Company procedures.

    2.8
“Effective Date” shall mean the date on which the Plan is
adopted by the Board.

    2.9
“Employee” shall mean any person engaged or proposed to be engaged as
an officer or employee of the Company or one of its Subsidiaries; provided,
however, that in the case of an Incentive Stock Option, the term “Employee”
shall mean any employee of the Company or of a “subsidiary corporation” (within
the meaning of Section 424(f) of the Code) of the Company.

    2.10
“Fair Market Value” for purposes of the Plan, unless otherwise
required by any applicable provision of the Code or any regulations issued
thereunder, shall mean with respect to the Common Stock on any day, (i) the
closing sales price (or other exchange-designated daily sales price) on the
immediately preceding business day of a share of Common Stock as reported on
the principal securities exchange on which shares of Common Stock are then
listed or admitted to trading, or (ii) if not so reported, the closing sales
price (or other Nasdaq-designated daily sales price) on the immediately
preceding business day of a share of Common Stock as published in the Nasdaq
National Market Issues report in the Eastern Edition of The Wall Street
Journal, or (iii) if not so reported, the average of the closing (or other
designated) bid and asked prices on the immediately preceding business day as
reported on the Nasdaq National Market System, or (iv) if not so reported, as
furnished by any member of the National Association of Securities Dealers, Inc.
selected by the Committee. In the event that the price of a share of Common
Stock shall not be so reported or furnished, the Fair Market Value of a share
of Common Stock shall be determined by the Committee in good faith. A
“business day” is any day, other than Saturday or Sunday, on which the relevant
market is open for trading.

    2.11
“Incentive Stock Option” shall mean any Stock Option awarded under
the Plan to an Employee that is intended to be and designated as an “Incentive
Stock Option” within the meaning of Section 422 of the Code.

    2.12
“Non-Qualified Stock Option” shall mean any Stock Option granted
under the Plan that is not an Incentive Stock Option.

    2.13
“Participant” shall mean an Employee to whom an Award has been
granted.

2

 

    2.14 “Reporting Person” shall mean a Participant who is subject to the
reporting requirements of Section 16 of the Securities Exchange Act of 1934, as
amended and the regulations promulgated thereunder.

    2.15 “Restricted Stock” shall mean an Award granted pursuant to Section
7.1 hereof, subject to such restrictions as the Committee may determine, as
evidenced in a Restricted Stock Agreement. Shares of Common Stock shall cease
to be Restricted Stock when, in accordance with the terms of the Restricted
Stock Agreement, they become transferable and free of risk of forfeiture.

    2.16 “Restricted Stock Agreement” shall mean the agreement evidencing the
grant of Restricted Stock to an Employee pursuant to this Plan.

    2.17 “Restriction Period” shall have the meaning set forth in Section
7.2(c).

    2.18 “Stock Option” or “Option” shall mean any option to purchase shares
of Common Stock granted pursuant to Article VI hereof.

    2.19 “Subsidiary” shall mean any subsidiary of the Company, 50% or more of
the voting stock of which is owned, directly or indirectly, by the Company,
that is currently existing as of the Effective Date or formed or acquired by
the Company while any Award is outstanding under the Plan.

    2.20 “Termination of Employment” shall mean a termination of employment
with the Company and all of its Subsidiaries for reasons other than a military
or personal leave of absence granted by the Company or any Subsidiary.

    2.21 “Unrestricted Stock” shall mean Common Stock granted under Section
7.3 hereof.

    2.22 “Unrestricted Stock Agreement” shall mean the agreement evidencing
the grant of Unrestricted Stock to an Employee pursuant to this Plan.

Article III

Administration

    3.1 The Committee. The Plan shall be administered and interpreted by the
Committee.

    3.2
Awards. The Committee shall have full authority to grant, pursuant to
the terms of the Plan, Stock Options, Restricted Stock and Unrestricted Stock
to persons eligible under Article V. In particular, the Committee shall have
the authority:

          (a) to select the persons to whom Stock Options, Restricted Stock and
Unrestricted Stock may from time to time be granted;

3

 

          (b) to determine whether and to what extent Incentive Stock Options,
Non-Qualified Stock Options, Restricted Stock and Unrestricted Stock, or any
combination thereof, are to be granted to one or more persons eligible to
receive Awards under Article V;

          (c) to determine the number of shares of Common Stock to be covered by
each Award granted hereunder; and

          (d) to determine the terms and conditions, not inconsistent with the terms
of the Plan, of any Award granted hereunder (including, but not limited to, the
option price, the option term, and provisions relating to any restriction or
limitation, any vesting schedule or acceleration, or any forfeiture
restrictions or waiver provisions of the Award), and any conditions (in
addition to those contained in this Plan) on the exercisability of all or any
part of an Option or on the transferability or forfeitability of Restricted
Stock. Notwithstanding any such conditions, the Committee may, in its
discretion at any time, accelerate the time at which any Option may be
exercised or the time at which Restricted Stock may become transferable or
nonforfeitable.

    3.3 Guidelines. Subject to Article VIII hereof, the Committee shall have
the authority to adopt, alter and repeal such administrative rules, guidelines
and practices governing the Plan as it shall, from time to time, deem
advisable; to interpret the terms and provisions of the Plan and any Award
granted under the Plan (and any agreements relating thereto); and to otherwise
supervise the administration of the Plan. The express grant in the Plan of any
specific power to the Committee shall not be construed as limiting any other
power or authority of the Committee. The Committee may correct any defect,
supply any omission or reconcile any inconsistency in the Plan or in any Award
in the manner and to the extent it shall deem necessary or advisable to carry
out the purposes of the Plan. Notwithstanding the foregoing, no action of the
Committee under this Section 3.3 shall impair the rights of any Participant
without the Participant’s consent, unless otherwise required by law.

     A majority of the entire Committee shall constitute a quorum, and the
action of a majority of the members present at any meeting at which a quorum is
present shall be deemed the action of the Committee. In addition, any decision
or determination reduced to writing and signed by all of the members of the
Committee shall be fully as effective as if it had been made by a majority vote
at a meeting duly called and held. Subject to the provisions of this Plan and
the Company’s Bylaws, and to any terms and conditions prescribed by the Board,
the Committee may make such additional rules and regulations for the conduct of
its business as it shall deem advisable. The Committee shall hold meetings at
such times and places as it may determine.

    3.4 Decisions Final. Any decision, interpretation or other action made or
taken in good faith by the Committee arising out of or in connection with the
Plan shall be final, binding and conclusive on the Company, all Participants
and their respective heirs, executors, administrators, successors and assigns.

4

 

Article IV

Share Limitation

    4.1 Shares. The maximum aggregate number of shares of Common Stock that
may be issued under the Plan is 4,900,000 (subject to increase or decrease
pursuant to Section 4.3), which may be either authorized and unissued shares of
Common Stock or authorized and issued shares of Common Stock reacquired by the
Company. If any Option granted under the Plan shall expire, terminate or be
canceled for any reason without having been exercised in full, the number of
shares of Common Stock not purchased under such Option shall again be available
for the purposes of the Plan. Further, if any shares of Restricted Stock are
forfeited, the shares subject to such Award, to the extent of such forfeiture,
shall again be available under the Plan.

    4.2 Individual Limit. No Employee may be granted Awards covering more
than 500,000 shares of Common Stock (subject to increase or decrease pursuant
to Section 4.3) during any calendar year.

    4.3 Changes. In the event of any merger, reorganization, consolidation,
recapitalization, dividend (other than a regular cash dividend), stock split,
or other change in corporate structure affecting the Common Stock, such
substitution or adjustment shall be made in the maximum aggregate number of
shares which may be issued under the Plan, the maximum number of shares with
respect to which Awards may be granted to any individual during any year, the
number and option price of shares subject to outstanding Options, and the
number of shares subject to other outstanding Awards, as may be determined to
be appropriate by the Committee, in its sole discretion, provided that the
number of shares subject to any Award shall always be a whole number.

Article V

Eligibility

    5.1 Awards to Employees. All officers and other Employees of the Company
and its Subsidiaries are eligible to be granted Incentive Stock Options,
Non-Qualified Stock Options, Restricted Stock and Unrestricted Stock under the
Plan. A Director who is an Employee of the Company or a Subsidiary shall be
eligible to receive Awards pursuant to this Article V.

Article VI

Stock Options

    6.1 Options. Each Stock Option granted under the Plan shall be either an
Incentive Stock Option or a Non-Qualified Stock Option.

    6.2 Grants. The Committee shall have the authority to grant to any person
eligible under Section 5.1 one or more Incentive Stock Options, Non-Qualified
Stock Options, or both types of Stock Options. To the extent that any Stock
Option does not qualify as an Incentive Stock Option (whether because of its
provisions or the time or manner of its exercise or otherwise), such Stock
Option or the portion thereof which does not qualify as an Incentive Stock
Option shall constitute a separate Non-Qualified Stock Option.

5

 

    6.3 Incentive Stock Options. Anything in the Plan to the contrary
notwithstanding, no term of the Plan relating to Incentive Stock Options shall
be interpreted, amended or altered, nor shall any discretion or authority
granted under the Plan be exercised, so as to disqualify the Plan under Section
422 of the Code, or, without the consent of the Participants affected, to
disqualify any Incentive Stock Option under such Section 422 of the Code.

    6.4 Terms of Options. Options granted under the Plan shall be subject to
the following terms and conditions and shall contain such additional terms and
conditions, not inconsistent with the terms of the Plan, as the Committee shall
deem desirable:

          (a) Stock Option Certificate. Each Stock Option shall be evidenced by,
and subject to the terms of, a Stock Option Certificate evidencing the Stock
Option grant. The Stock Option Certificate shall specify whether the Option is
an Incentive Stock Option or a Non-Qualified Stock Option, the number of shares
of Common Stock subject to the Stock Option, the option price, the option term,
and the other terms and conditions applicable to the Stock Option.

          (b) Option Price. Subject to subsection (m) below, the option price per
share of Common Stock purchasable upon exercise of a Stock Option shall be
determined by the Committee at the time of grant, but, if the Stock Option is
intended to be an Incentive Stock Option, shall be not less than 100% of the
Fair Market Value of the Common Stock on the date of grant.

          (c) Option Term. Subject to subsection (m) below, the term of each Stock
Option shall be fixed by the Committee at the time of grant, but no Stock
Option shall be exercisable more than ten years after the date it is granted.

          (d) Exercisability. Stock Options shall be exercisable at such time or
times and subject to such terms and conditions as shall be determined by the
Committee at the time of grant; provided, however, that the Committee may waive
any installment exercise or waiting period provisions, in whole or in part, at
any time after the date of grant, based on such factors as the Committee shall
deem appropriate in its sole discretion.

          (e) Method of Exercise. Subject to such installment exercise and waiting
period provisions as may be imposed by the Committee, Stock Options may be
exercised in whole or in part at any time during the option term by delivering
to the Company written notice of exercise specifying the number of shares of
Common Stock to be purchased and the option price therefor. The notice of
exercise shall be accompanied by payment in full of the option price and, if
requested, by the representation described in Section 10.2. Payment of the
option price may be made (i) in cash or by check payable to the Company, (ii)
unless otherwise determined by the Committee on or after the date of grant, in
shares of Common Stock duly owned by the Participant (and for which the
Participant has good title free and clear of any liens and encumbrances) or
(iii) in the case of an Option that is not an Incentive Stock Option, unless
otherwise determined by the Committee on or after the date of grant, by
reduction in the number of shares of Common Stock issuable upon such exercise,
based, in each case, on the Fair Market

6

 

Value of the Common Stock on the date of exercise. Upon satisfaction of
the conditions provided herein, a stock certificate representing the number of
shares of Common Stock to which the Participant is entitled shall be issued and
delivered to the Participant, subject to Section 10.3. For the purpose of
assisting a Participant to exercise an Option, the Company may, in the
discretion of the Board, make loans to the Participant or guarantee loans made
by third parties to the Participant, in either case on such terms and
conditions as the Board may authorize. Nothing contained in this Plan shall
prevent or prohibit a Participant from exercising his or her Options under a
broker-facilitated cashless exercise transaction.

          (f) Death. Unless otherwise determined by the Committee on or after the
date of grant, in the event of a Participant’s Termination of Employment by
reason of death, any Stock Option held by such Participant which was
exercisable on the date of death may thereafter be exercised by the legal
representative of the Participant’s estate until the earlier of one year after
the date of death or the expiration of the stated term of such Stock Option,
and any Stock Option not exercisable on the date of death shall be forfeited.

          (g) Disability. Unless otherwise determined by the Committee on or after
the date of grant, in the event of a Participant’s Termination of Employment by
reason of Disability, any Stock Option held by such Participant which was
exercisable on the date of such Termination of Employment may thereafter be
exercised by the Participant until the earlier of one year after such date or
the expiration of the stated term of such Stock Option, and any Stock Option
not exercisable on the date of such Termination of Employment shall be
forfeited. If the Participant dies during such one-year period, any
unexercised Stock Options held by the Participant at the time of death may
thereafter be exercised by the legal representative of the Participant’s estate
until the earlier of one year after the date of the Participant’s death or the
expiration of the stated term of such Stock Option. If an Incentive Stock
Option is exercised after the expiration of the exercise period that applies
for purposes of Section 422 of the Code, such Stock Option will thereafter be
treated as a Non-Qualified Stock Option.

          (h) Termination of Employment. Subject to Section 10.4, in the event of a
Participant’s Termination of Employment by reason of retirement or for any
reason other than death or Disability, all Stock Options held by such
Participant that were exercisable on the date of such Termination of Employment
may be exercised by the Participant at any time within three (3) months after
his or her Termination of Employment; provided, however, that if the Committee
shall determine that the Employee’s employment was terminated for conduct that
in the judgment of the Committee involves dishonesty or action by the Employee
that is detrimental to the best interest of the Company, all Stock Options held
by the Employee on the date of such Termination of Employment shall be
forfeited. Notwithstanding anything to the contrary in this subsection, a
Stock Option shall not terminate upon a Participant’s Termination of Employment
if at the time thereof the Participant serves as a Director of the Company or
its successor, in which event the Stock Option shall terminate if the
Participant ceases to be a Director of the Company or its successor and the
Participant may at any time within three months after ceasing to be a Director
exercise his or her Stock Option, but only to the extent that the Stock Option
was exercisable by him or her on the date on which he or she ceased to be a
Director.

7

 

          (i) Change of Control. Notwithstanding the provisions of Section 4.3, in
the event of a Change of Control, all outstanding Stock Options shall
immediately become fully exercisable, and upon payment by the Participant of
the option price (and, if requested, delivery of the representation described
in Section 10.2), a stock certificate representing the Common Stock covered
thereby shall be issued and delivered to the Participant; provided, however,
that the exercisability of the Stock Options shall not be accelerated if, in
the opinion of the Board, such acceleration would prevent pooling of interests
accounting treatment for the Change of Control transaction and such accounting
treatment is desired by the parties to such transaction. This Section 6.4(i)
shall apply to any outstanding Stock Options which are Incentive Stock Options
to the extent permitted by Code Section 422(d), and any outstanding Incentive
Stock Options in excess thereof shall, immediately upon the occurrence of such
a Change of Control be treated for all purposes of the Plan as Non-Qualified
Stock Options and shall be immediately exercisable as set forth in this Section
6.4(i).

          (j) Merger and Other Fundamental Transactions. In the event the Company
is succeeded by another company in a reorganization, merger, consolidation,
acquisition of property or stock, separation or liquidation, the successor
company shall assume all of the outstanding Options granted under this Plan or
shall substitute new options for them, which shall provide that each
Participant, at the same cost, shall be entitled upon the exercise of each such
option to receive such securities as the Board of Directors (or equivalent
governing body) of the succeeding, resulting or other company shall determine
to be equivalent, as nearly as practicable, to the nearest whole number and
class of shares of stock or other securities to which the Participant would
have been entitled under the terms of the agreement governing the
reorganization, merger, consolidation, acquisition of property or stock,
separation or liquidation as if, immediately prior to such event, the
Participant had been the holder of record of the number of shares of Common
Stock which were then subject to the outstanding Option granted under this
Plan.

          (k) Non-Transferability of Options. No Stock Option shall be transferable
by the Participant otherwise than by will or by the laws of descent and
distribution, to the extent consistent with the terms of the Plan and the
Option, and all Stock Options shall be exercisable, during the Participant’s
lifetime, only by the Participant.

          (l) Incentive Stock Option Limitations. To the extent that the aggregate
Fair Market Value (determined as of the date of grant) of the Common Stock with
respect to which Incentive Stock Options are exercisable for the first time by
the Participant during any calendar year under the Plan and/or any other stock
option plan of the Company or any subsidiary or parent corporation (each within
the meaning of Section 424 of the Code) exceeds $100,000, such Options shall be
treated as Options which are not Incentive Stock Options.

          (m) Ten-Percent Stockholder Rule. Notwithstanding any other provision of
the Plan to the contrary, no Incentive Stock Option shall be granted to any
person who, immediately prior to the grant, owns stock possessing more than ten
percent of the total combined voting power of all classes of stock of the
Company or any subsidiary or parent corporation (each within the meaning of
Section 424 of the Code), unless the option price is at

8

 

least 110% of the Fair Market Value of the Common Stock on the date of
grant and the Option, by its terms, expires no later than five years after the
date of grant.

     Should the foregoing provisions not be necessary in order for the Stock
Options to qualify as Incentive Stock Options, or should any additional
provisions be required, the Committee may amend the Plan accordingly, without
the necessity of obtaining the approval of the stockholders of the Company.

    6.5 Rights as Stockholder. A Participant shall not be deemed to be the
holder of Common Stock, or to have any of the rights of a holder of Common
Stock, with respect to shares subject to the Option, unless and until the
Option is exercised and a stock certificate representing such shares of Common
Stock is issued to the Participant.

Article VII

Restricted and Unrestricted Stock

    7.1 Awards of Restricted Stock. The Committee shall have the authority to
grant to any person eligible under Section 5.1 one or more Restricted Stock
Awards. The Committee shall determine the eligible Employees to whom, and the
time or times at which, grants of Restricted Stock will be made, the number of
shares to be awarded, the time or times within which such Awards may be subject
to forfeiture, the vesting schedule and rights to acceleration thereof, and the
other terms and conditions of the Awards in addition to those set forth in
Section 7.2.

    7.2 Terms and Conditions. Restricted Stock shall be subject to the
following terms and conditions and such other terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem desirable:

          (a) Restricted Stock Agreement. Each Restricted Stock Award shall be
evidenced by, and subject to the terms of, a Restricted Stock Agreement
executed by the Company and the Participant. The Restricted Stock Agreement
shall specify the number of shares of Common Stock subject to the Award, the
time or times within which such Restricted Stock is subject to forfeiture and
the other terms, conditions and restrictions applicable to such Award.

          (b) Stock Certificate. Subject to Section 10.3, when the restrictions
applicable to a Restricted Stock Award, or any portion thereof, lapse, a stock
certificate representing the number of shares of Common Stock covered by such
Restricted Stock Award, or portion thereof, shall be issued and delivered to
the Participant. A Participant shall not be deemed to be the holder of Common
Stock, or to have any of the rights of a holder of Common Stock, with respect
to shares of Restricted Stock subject to the Award, unless and until the
forfeiture restrictions lapse and a stock certificate representing such shares
of Common Stock is issued to the Participant.

          (c) Restriction Period. Subject to the provisions of the Plan and the
Restricted Stock Agreement, shares of Restricted Stock will be forfeited to the
Company in the event of a

9

 

Participant’s Termination of Employment during a period (not to exceed
five years) set by the Committee commencing with the date of such Award (the
“Restriction Period”). Subject to the provisions of the Plan, the Committee,
in its sole discretion, may provide for the lapse of such restrictions in
installments and may waive such restrictions, in whole or in part, at any time,
based on such factors as the Committee shall deem appropriate in its sole
discretion.

          (d) Termination of Employment. Subject to Section 10.4, in the event of a
Participant’s Termination of Employment prior to the expiration of the
Restriction Period, then he or she shall forfeit all of his or her Restricted
Stock with respect to which the Restriction Period has not yet expired;
provided, however, that the terms of the Restricted Stock Agreement, in the
discretion of the Committee and pursuant to such terms and conditions as it may
impose, may provide: (i) that, if such Employee’s employment is terminated for
any reason other than conduct that in the judgment of the Committee involves
dishonesty or action by the Employee that is detrimental to the best interests
of the Company, then the Restricted Stock or any related compensation deferral
or a portion thereof shall not be forfeited; (ii) that, if such Employee’s
employment is terminated on account of Disability, then the Employee shall not
forfeit his or her Restricted Stock or any related compensation deferral or a
portion thereof; and (iii) that, if such Employee dies while employed by the
Company or any of its Subsidiaries, then his or her Restricted Stock or any
related compensation deferral or a portion thereof is not forfeited.

          (e) Changes. If any change is made in the Common Stock by reason of any
merger, consolidation, reorganization, recapitalization, stock dividend, split
up, combination of shares, exchange of shares, change in corporate structure,
or otherwise, then any shares or other securities of the Company or succeeding,
resulting or other company to be received by the Employee under the Restricted
Stock Agreement shall be subject to the same restrictions applicable to the
Restricted Stock.

    7.3 Unrestricted Stock. The Committee shall have the authority to grant
to any person eligible under Section 5.1 one or more Unrestricted Stock Awards.
Each Employee who is awarded Unrestricted Stock shall receive an Unrestricted
Stock Agreement from the Company in a form specified by the Committee and
containing the terms and conditions of the award and such other matters,
consistent with this Plan, as the Committee, in its sole discretion, shall
determine at the time the Award is made. Such conditions may include, but
shall not be limited to, the deferral of a percentage of the Employee’s annual
cash compensation, not including dividends paid on the Unrestricted Stock, if
any, to be applied toward the purchase of Unrestricted Stock upon such terms
and conditions, including such discounts, as may be set forth in the
Unrestricted Stock Agreement. Upon the issuance of Unrestricted Stock to an
Employee hereunder, the Employee shall have the entire beneficial ownership and
all the rights and privileges of a stockholder with respect to the Unrestricted
Stock awarded to him or her, including the right to receive dividends and the
right to vote such Unrestricted Stock. Subject to Section 10.3, each Employee
who is awarded Unrestricted Stock may, but need not, be issued a stock
certificate in respect of such shares of Unrestricted Stock.

10

 

Article VIII

Termination or Amendment

    8.1 Termination or Amendment of Plan. The Committee may at any time
amend, discontinue or terminate the Plan or any part thereof (including any
amendment deemed necessary to ensure that the Company may comply with any
regulatory requirement referred to in Article X) or amend any Award previously
granted, prospectively or retroactively (subject to Article IV); provided,
however, that, unless otherwise required by law, the rights of a Participant
with respect to Awards granted prior to such amendment, discontinuance or
termination may not be impaired without the consent of such Participant and,
provided further that, the Company will seek the approval of the Company’s
stockholders for any amendment if such approval is necessary to comply with the
Code, Federal or state securities laws or any other applicable laws or
regulations.

Article IX

Unfunded Plan

    9.1 Unfunded Plan. The Plan is intended to constitute an “unfunded” plan
for incentive compensation. With respect to any payment not yet made to a
Participant by the Company, nothing contained herein shall give any such
Participant any rights that are greater than those of a general creditor of the
Company.

Article X

General Provisions

    10.1 Nonassignment. Except as otherwise provided in the Plan, any Award
granted hereunder and the rights and privileges conferred thereby shall not be
sold, transferred, assigned, pledged or hypothecated in any way (whether by
operation of law or otherwise), and shall not be subject to execution,
attachment or similar process. Upon any attempt to transfer, assign, pledge,
hypothecate or otherwise dispose of an Award, right or privilege contrary to
the provisions hereof, or upon the levy of any attachment or similar process
thereon, such Award and the rights and privileges conferred hereby shall
immediately terminate and the Award shall immediately be forfeited to the
Company.

    10.2 Legend. The Committee may require each person acquiring shares
pursuant to an Award to represent to the Company in writing that the
Participant is acquiring the shares without a view to distribution thereof.
The stock certificates representing such shares may include any legend which
the Committee deems appropriate to reflect any restrictions on transfer.

     All certificates representing shares of Common Stock delivered under the
Plan shall be subject to such stock transfer orders and other restrictions as
the Committee may deem advisable under the rules, regulations and other
requirements of the Securities and Exchange Commission, any stock exchange or
stock market upon which the Common Stock is then listed or traded, any
applicable Federal or state securities law, and any applicable corporate law,
and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

11

 

    10.3 Uncertificated Shares. Each Employee who exercises an Option to
acquire Common Stock or is awarded Restricted Stock or Unrestricted Stock may,
but need not, be issued a stock certificate in respect of the Common Stock so
acquired. A “book entry” (i.e., a computerized or manual entry) shall be made
in the records of the Company to evidence the issuance of shares of Common
Stock to an Employee where no certificate is issued in the name of the
Employee. Such Company records, absent manifest error, shall be binding on
Employees. In all instances where the date of issuance of shares may be deemed
significant but no certificate is issued in accordance with this Section 10.3,
the date of the book entry shall be the relevant date for such purposes.

    10.4 Forfeiture for Competition. If a Participant in this Plan provides
services to a competitor of the Company or any of its subsidiaries, whether as
an employee, officer, director, independent contractor, consultant, agent or
otherwise, such services being of a nature that can reasonably be expected to
involve the skills and experience used or developed by the Participant while an
Employee, and the Committee determines, in its sole discretion, that the
provision of such services constitutes a breach of the Participant’s
non-compete agreement with the Company, then that Participant’s rights to any
Awards hereunder shall automatically be forfeited.

    10.5 Other Plans. Nothing contained in the Plan shall prevent the Board
from adopting other or additional compensation arrangements, subject to
stockholder approval if such approval is required; and such arrangements may be
either generally applicable or applicable only in specific cases.

    10.6 No Right to Employment. Neither the Plan nor the grant of any Award
hereunder shall give any Participant or other Employee any right with respect
to continuance of employment by the Company or any Subsidiary, nor shall the
Plan impose any limitation on the right of the Company or any Subsidiary by
which a Participant is employed to terminate such Participant’s employment at
any time.

    10.7 Withholding of Taxes. The Company shall have the right to reduce the
number of shares of Common Stock otherwise deliverable pursuant to the Plan by
an amount that would have a Fair Market Value equal to the amount of all
Federal, state and local taxes required to be withheld, or to deduct the amount
of such taxes from any cash payment otherwise to be made to the Participant.
In connection with such withholding, the Committee may make such arrangements
as are consistent with the Plan as it may deem appropriate.

    10.8 Listing and Other Conditions.

          (a) If the Common Stock is listed on a national securities exchange or The
Nasdaq Stock Market, the issuance of any shares of Common Stock pursuant to an
Award shall be conditioned upon such shares being listed on such exchange or
The Nasdaq Stock Market. The Company shall have no obligation to issue any
shares of Common Stock unless and until such shares are so listed, and the
right to exercise any Option or vest in any Restricted Stock shall be suspended
until such listing has been effected.

12

 

          (b) If at any time counsel to the Company shall be of the opinion that any
sale or delivery of shares of Common Stock pursuant to an Award is or may in
the circumstances be unlawful or result in the imposition of excise taxes under
the statutes, rules or regulations of any applicable jurisdiction, the Company
shall have no obligation to make such sale or delivery, or to make any
application or to effect or to maintain any qualification or registration under
the Securities Act of 1933, as amended, or otherwise with respect to shares of
Common Stock or Awards, and the right to exercise any Option or vest in any
Restricted Stock shall be suspended until, in the opinion of such counsel, such
sale or delivery shall be lawful or shall not result in the imposition of
excise taxes.

          (c) Upon termination of any period of suspension under this Section 10.8,
any Award affected by such suspension which shall not then have expired or
terminated shall be reinstated as to all shares available before such
suspension and as to shares which would otherwise have become available during
the period of such suspension, but no such suspension shall extend the term of
any Option.

    10.9 Governing Law. The Plan and actions taken in connection herewith
shall be governed and construed in accordance with the laws of the State of
Delaware, without regard to the conflict of laws principles thereof.

    10.10 Construction. Wherever any words are used in the Plan in the
masculine gender they shall be construed as though they were also used in the
feminine gender in all cases where they would so apply, and wherever any words
are used herein in the singular form they shall be construed as though they
were also used in the plural form in all cases where they would so apply.

    10.11 Liability of the Board and the Committee. No member of the Board or
the Committee nor any Employee of the Company or any of its subsidiaries shall
be liable for any act or action hereunder, whether of omission or commission,
by any other member or Employee or by any agent to whom duties in connection
with the administration of the Plan have been delegated or, except in
circumstances involving bad faith, gross negligence or fraud, for anything done
or omitted to be done by himself.

    10.12 Other Benefits. No payment pursuant to an Award shall be deemed
compensation for purposes of computing benefits under any retirement plan of
the Company or any Subsidiary nor affect any benefits under any other benefit
plan now or hereafter in effect under which the availability or amount of
benefits is related to the level of compensation.

    10.13 Costs. The Company shall bear all expenses incurred in
administering the Plan, including expenses related to the issuance of Common
Stock pursuant to Awards.

    10.14 Severability. If any part of the Plan shall be determined to be
invalid or void in any respect, such determination shall not affect, impair,
invalidate or nullify the remaining provisions of the Plan which shall continue
in full force and effect.

13

 

    10.15 Successors. The Plan shall be binding upon and inure to the benefit
of any successor or successors of the Company.

    10.16 Headings. Article and section headings contained in the Plan are
included for convenience only and are not to be used in construing or
interpreting the Plan.

Article XI

Term of Plan

    11.1 Effective Date. The Plan shall be effective as of the Effective
Date, but the grant of any Award hereunder is subject to the express condition
that the Plan be approved by the stockholders of the Company within 12 months
after the Effective Date.

    11.2 Termination Date. Unless sooner terminated, the Plan shall terminate
ten years after the Effective Date and no Awards may be granted thereafter.
Termination of the Plan shall not affect Awards granted before such date.

As revised by the Board by unanimous written consent dated September 21, 2000
and approved by the stockholders at the Annual Meeting held on October 26, 2000
- the first sentence of Section 4.1 was amended to increase the maximum
aggregate number of shares of Common Stock that may be issued under the Plan
from 1,000,000 to 2,000,000.

As revised by the Board at its October 26, 2000 meeting to clarify the “Change
of Control” definition.

As revised by the Board by unanimous written consent dated September 5, 2001
and approved by the stockholders at the Annual Meeting held on October 25, 2001
- the first sentence of Section 4.1 was amended to increase the maximum
aggregate number of shares of Common Stock that may be issued under the Plan
from 2,000,000 to 3,000,000.

As revised by the Board at its meeting held February 19, 2002 – sentence was
added to the end of Section 6.4(h), “Termination of Employment”, regarding
termination of options if optionee continues as a Director.

As revised by the Board at its meeting held September 12, 2002 and approved by
the stockholders at the Annual Meeting held on October 24, 2002 — the first
sentence of Section 4.1 was amended to increase the maximum aggregate number of
shares of Common Stock that may be issued under the Plan from 3,000,000 to
4,000,000.

As revised by the Board at its meeting held September 5, 2003 and approved by
the stockholders at the Annual Meeting held on October 30, 2003 – the first
sentence of Section 4.1 was amended to increase the maximum aggregate number of
shares of Common Stock that may be issued under the Plan from 4,000,000 to
4,900,000.

As revised by the Board at its meeting held October 30, 2003 to remove the
provisions vesting sole authority in the Board to grant Awards to Reporting
Persons and to amend the definition of Committee.

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